| Code |
Description |
| SS.912.FL.5.1: | Analyze the ways that consumers can compare the cost of credit by using the annual percentage rate (APR), initial fees charged, and fees charged for late payment or missed payments.Clarifications:
Clarification 1: Instruction includes the use of APR, initial fees, late fees, nonpayment fees, and other relevant information to compare the cost of credit from various sources for the purchase of a product. |
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| SS.912.FL.5.2: | Explain why banks and financial institutions sometimes compete by offering credit at low introductory rates.Clarifications:
Clarification 1: Instruction includes the motivating factors for a bank offering low-rate introductory credit offers. Clarification 2: Instruction includes understanding the possible negative impacts of low-rate introductory credit offers on consumers.
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| SS.912.FL.5.3: | Explain that loans can be unsecured or secured with collateral.Clarifications:
Clarification 1: Instruction includes explaining why secured loans are viewed as having less risk and why lenders charge a lower interest rate than they charge for unsecured loans. Clarification 2: Instruction includes understanding unsecured versus secured credit cards.
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| SS.912.FL.5.4: | Describe the factors that influence the cost of borrowing from the perspective of the buyer and the seller, such as down payments and interest rates.Clarifications:
Clarification 1: Instruction includes how a down payment reduces the total amount financed and why this reduces the monthly payment and/or the length of the loan. Clarification 2: Instruction includes understanding why a borrower who has made a down payment has an incentive to repay a loan or make payments on time. Clarification 3: Instruction includes discussing why people make a down payment and why lenders may consider loans made with a down payment to have less risk. |
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| SS.912.FL.5.5: | Explain that lenders make credit decisions based in part on consumer payment history.Clarifications:
Clarification 1: Instruction includes understanding that credit bureaus record borrowers’ credit and payment histories and provide that information to lenders in credit reports. |
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| SS.912.FL.5.6: | Demonstrate an understanding of completing a loan application.Clarifications:
Clarification 1: Instruction includes the different aspects of a loan application, which include its basic requirements, limits, and credit check. Clarification 2: Instruction includes understanding the typical choices made on a car loan such as amount of down payment, interest rate, term of loan, and monthly payment.
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| SS.912.FL.5.7: | Discuss that lenders can pay to receive a borrower’s credit score from a credit bureau.Clarifications:
Clarification 1: Instruction includes understanding a credit score and what it indicates about a borrower. |
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| SS.912.FL.5.8: | Analyze the costs and benefits associated with credit cards.Clarifications:
Clarification 1: Instruction includes understanding that while credit cards are useful for making purchases, interest rates on credit card loans are generally higher than other types of loans and may also have additional fees. Clarification 2: Instruction includes understanding that credit card interest rates are higher for people considered to have a higher risk of nonpayment as determined by their credit scores.
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| SS.912.FL.5.9: | Describe that, in addition to assessing a person’s credit risk, credit reports and scores may be requested and used by employers in hiring decisions, property owners in deciding whether to rent apartments, and insurance companies in charging premiums. |
| SS.912.FL.5.10: | Examine the fact that failure to repay a loan has significant consequences for borrowers such as negative entries on their credit report, repossession of property (collateral), garnishment of wages, and the inability to obtain loans in the future. |
| SS.912.FL.5.11: | Explain that consumers who have difficulty repaying debt can seek assistance through credit counseling services and by negotiating directly with creditors.Clarifications:
Clarification 1: Instruction includes identifying the costs and benefits associated with using different credit counseling services. |
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| SS.912.FL.5.12: | Explain how bankruptcy may be an option for consumers who are unable to repay debt.Clarifications:
Clarification 1: Instruction includes understanding the impact of filing for bankruptcy on an individual’s credit report. |
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| SS.912.FL.5.13: | Explain that people often apply for a mortgage to purchase a home.Clarifications:
Clarification 1: Instruction includes understanding factors related to mortgage lending: down payment, fixed vs. variable rates, and insurance requirements. |
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| SS.912.FL.5.14: | Discuss that consumers who use credit should be aware of laws that are in place to protect them.Clarifications:
Clarification 1: Instruction includes understanding lending laws: provision of full disclosure of credit terms, discriminatory lending practices, abusive marketing practices, and debt collection. |
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| SS.912.FL.5.15: | Explain that consumers are entitled to a free copy of their credit report annually.Clarifications:
Clarification 1: Instruction includes understanding why it is important to check the accuracy of the information recorded on a credit report and knowing what steps to take to correct errors on credit reports. Clarification 2: Instruction includes understanding that credit report errors may increase the cost of credit.
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| SS.912.FL.5.16: | Analyze how postsecondary education can be financed through a combination of scholarships, grants, and other financial aid (e.g., Bright Futures, work-study, student loans, and savings).Clarifications:
Clarification 1: Instruction includes understanding the process and importance of completing the Free Application for Federal Student Aid (FAFSA). Clarification 2: Instruction includes identifying scholarships and grants for which an individual student may be eligible.
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| SS.912.FL.5.17: | Compare different types of student loans and understand how to complete a student loan application.Clarifications:
Clarification 1: Instruction includes understanding Parent Loan for Undergraduate Students (PLUS) loans, private student loans, direct subsidized loans, and direct unsubsidized loans. Clarification 2: Instruction includes understanding the long-term costs of student loans such as accrued interest during periods of deferment or forbearance.
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Vetted resources educators can use to teach the concepts and skills in this topic.
| Name |
Description |
| Drowning in Debt: Making Healthy Decisions to Manage Money: | Using the outcome of case study, Drowning in Debt: Making Healthy Decisions to Manage Money, students will work in pairs to analyze a monthly budget, research strategies for decreasing monthly expenses and compose an email to request assistance from a banking associate |
| My first credit card!: | In this Model Eliciting Activity, MEA, students use compare and analyze various features of credit cards to choose the best one for a college student. As part of their analysis, students will create step functions to model the interest charged and visually compare interest costs associated with each credit card.
Model Eliciting Activities, MEAs, are open-ended, interdisciplinary problem-solving activities that are meant to reveal students’ thinking about the concepts embedded in realistic situations. MEAs resemble engineering problems and encourage students to create solutions in the form of mathematical and scientific models. Students work in teams to apply their knowledge of science and mathematics to solve an open-ended problem while considering constraints and tradeoffs. Students integrate their ELA skills into MEAs as they are asked to clearly document their thought processes. MEAs follow a problem-based, student-centered approach to learning, where students are encouraged to grapple with the problem while the teacher acts as a facilitator. To learn more about MEAs visit: https://www.cpalms.org/cpalms/mea.aspx |
| Shopping for a Home Mortgage Loan: | In this Model Eliciting Activity, MEA, students will analyze data and client preferences to recommend the best mortgage loan. Students will compare different types of mortgage loans and justify their recommendation for the client.
Model Eliciting Activities, MEAs, are open-ended, interdisciplinary problem-solving activities that are meant to reveal students’ thinking about the concepts embedded in realistic situations. MEAs resemble engineering problems and encourage students to create solutions in the form of mathematical and scientific models. Students work in teams to apply their knowledge of science and mathematics to solve an open-ended problem while considering constraints and tradeoffs. Students integrate their ELA skills into MEAs as they are asked to clearly document their thought processes. MEAs follow a problem-based, student-centered approach to learning, where students are encouraged to grapple with the problem while the teacher acts as a facilitator. To learn more about MEAs visit: https://www.cpalms.org/cpalms/mea.aspx |
