Review Lesson Two

What is a debit card? How does it differ from an ATM

card?

Lesson Three: Credit Cards

Objective:Students will identify what a

credit card is and some advantages of using credit.

Introduction:Consumers’ use of credit to buy goods and services is growing at a staggering rate. Once used primarily for large-ticket items, credit is now used for virtually everything. With a credit card, you buy now and pay later, at the end of the month.

Credit- the amount of financial trust extended to a person or business by a lender.

What is Credit?

• Credit is a loan• It can be of great help to a smart

money manager • can serve as a building block to

establish a great credit history. • It also can be a trap leading to

financial ruin. Credit must be used with caution and managed carefully.

It is essential that credit is used wisely!

What is Credit?

Credit is the amount of financial trust extended to a person or business by a lender.

Credit card- a card authorizing the holder to buy good and services that can be paid for later

Interest- payment for the cost of using someone else’s money, usually expressed in an annual percentage rate

Vocabulary

Partner Activity

• Take turns reading the bulleted ideas on View of Credit Cards from the common Drive.

• Make a list of the 9 advantages to using a credit card on your notes page.

Open file on common drive called “Let’s Explore Credit”

VideoCredit Card Debt Explained With a Glass of Water

http://www.youtube.com/watch?v=Vz05A6cP6Iw

Small Group ActivityScenarios

Complete the 3 Scenarios on pages 14-16 of your workbook in your group. Questions should be answered on a Word Document. This will be printed and collected for a grade.

Summary

What is an advantage to using a credit card?

What is a disadvantage to using a credit card?