Learning ObjectivesStudents will be able to:
| National Standards for Personal Financial Education Managing Credit
|
Learning ObjectivesStudents will be able to:
| National Standards for Personal Financial Education Managing Credit
|

Between 2000 and 2024, which year had the lowest average credit card interest rate and approximately what was it?
Between 2000 and 2024, what was the approximate difference between the highest average credit card interest rate and the lowest?
What does the graph suggest about the stability of credit card interest rates over a long period of time?
The gray bars represent periods of economic recession. What pattern, if any, can you see in how recessions affect credit card interest rates? Why do you think this is?
When you get a credit card bill, it might seem like you should only pay the “minimum payment due”. Find out how that could cost you and what to do instead.
Your Credit Card
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Paid in full before the due date?
Paid it off over one month (ie. one month late)?
Paid it off over 6 months?

If you make a HIGHER monthly payment, you will pay off your debt intime and payin total interest
Why do you think credit card companies offer low minimum payments?
For consumers, what do you think is one PRO and one CON of low minimum payments?
What strategies can consumers use to reduce the interest they’ll pay on credit card debt?
If you buy a $1000 bicycle, which credit card payoff strategy will result in your paying the LEAST total amount?
If your credit card limit is $800 and your outstanding balance is $725, what is the largest amount you can charge on that card in the upcoming month?
Each of the following people has $5,000 in debt. Which debt is most worthwhile?
Hypothesize what this chart will look like for the next 10 year period. Explain why.
Which best describes how a credit card works?
What is the advantage of paying your credit card balance in full each month?
What is an outstanding balance?
Why is it more difficult to get out of debt when only paying the minimum payment?
The video advises you to "be a deadbeat.” What does that mean?
How much would the minimum payment be?
Make a prediction: how long would it take you to pay off the phone if you only make the minimum payment every month?
Your Credit Card
Interest rate (APR): 19.9%
Minimum payment: 3% of your starting balance OR $25, whichever is higher
You buy a new phone using your credit card. Including accessories, it costs $900.
Use Bankrate’s Credit Card Payoff Calculator to complete the chart comparing 3 payment options for the phone.
Would you agree with him? Why or why not?
What are some other reasons an individual could have that much debt and still consider it worthwhile? Explain your thinking.
On the other hand, some people at the beginning of the video had absolutely no debt whatsoever. What are some possible ways they achieve a debt-free lifestyle while others do not or cannot?
Other than credit card usage, what are some other reasons people say they are in debt? Do their reasons for carrying debt seem valid to you? Why or why not?
Throughout the video, you can tell that individuals’ FEELINGS about their debt are quite different. What might cause one person to worry about the same level of debt that someone else feels quite comfortable having?