Consumer Awareness Module
Unit 3:  Understanding Credit 

Lesson 2:  Debt

Materials Needed:

  • Flipchart paper/newsprint or large board and markers (if working alone, use notebook paper)

  • Computers with Internet access

  • Book: The Complete Control Your Money: A Quick and Easy Guide with Worksheets (2001).  Syracuse, NY:  New Readers Press

  • Handout 1: Jigsaw Reading on Debt

  • Handout 2: Answer the E-mail

Notes For numerous articles on financial management, see the Virginia Cooperative Extension Services website at http://www.ext.vt.edu/ .  Click on Educational Programs and Resources, then click on Financial Management.

Word Bank:

shrink
rotate payments
pay off
line of credit
make ends meet
mortgage
handle
wage earner
formula
wear and tear
stick to it
overdraft protection
installments

Introductory Activity:  What are some risks with loans and credit?

Whole group discussion

  • Credit can make things easier for consumers, but it can also make things more difficult.  What are some problems people have with credit and loans? (Elicit from students and write a list on the board.)

  • In this lesson we will talk about the risk of debt.  (Write the term on the board.) Can anyone explain debt?

  • When you think of the word "debt", what comes into your mind?  Do you think debt is a big or small problem in the United States?  Why?  What happens if you have too much debt and don't pay off your bills?

Activity 1:  Debt Quiz

  • Using the book Control your Money, we're going to take a quiz to see how in control we are of debt in our lives.  The quiz is on page 64.  Write your answers on your own paper, please.

  • (After the quiz)  You don't need to tell your result if you don't want to, but did anything surprise you on the quiz?  Do you agree that everything on it can show a problem with debt?

Activity 2:  Jigsaw Reading on Debt

This activity requires the book The Complete Control your Money and Handout 1.  Complete instructions are on the handout.

Activity 3:  Calculating Debt   

Notes If it looks like page 65 will be difficult for your students to use, you might want to make up a person and their expenses to do an example together as a class before students try it at home.

  • Again using The Complete Control your Money book, please open to page 65, which is called “How much do you pay per month?”  This page will help you figure out your own debt.  To use it, you will need to know how much your bills are, so write down the information you need and bring it in next time.  Let's look at it together to make sure you understand it.

Have students complete page 65 in the following class session.

Activity 4:  Writing Expansion

Handout 2 provides complete instructions for this e-mail writing activity.  Note:  In e-mail language, “b/c” means “because” and  :(  is an unhappy face.

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