Standard 3: Loans and FinancingArchived

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Become familiar with and describe the advantages and disadvantages of short-term purchases, long-term purchases, and mortgages.
General Information
Number: MA.912.F.3
Title: Loans and Financing
Type: Standard
Subject: X-Mathematics (former standards - 2008) - Archived
Grade: 912
Body of Knowledge: Financial Literacy

Related Benchmarks

This cluster includes the following benchmarks.

Related Access Points

This cluster includes the following access points.

Independent

MA.912.F.3.In.a
Identify wise consumer strategies for cash purchases, such as counting change, rounding up, and adding the tax.
MA.912.F.3.In.b
Identify advantages and disadvantages of using alternate forms for payment, such as checks, gift cards, debit cards, and credit cards.
MA.912.F.3.In.c
Identify finance charges as extra amounts added to cost of items that are not paid for on time.
MA.912.F.3.In.d
Recognize that deferred payments result in extra charges, such as increased interest rates.
MA.912.F.3.In.e
Identify reasons for paying bills on time and the effects of late payments or nonpayment.
MA.912.F.3.In.f
Identify resources and strategies for purchasing costly items, such as a car and a house.

Supported

MA.912.F.3.Su.a
Use wise consumer strategies for paying with cash, such as rounding to the next dollar.
MA.912.F.3.Su.b
Identify examples of alternate forms of payment, including debit cards, checks, gift cards, and credit cards.
MA.912.F.3.Su.c
Identify the effects of not paying bills on time.

Participatory

MA.912.F.3.Pa.a
Recognize that a predetermined amount of money can be used to pay for an item in common purchasing situations.

Related Resources

Vetted resources educators can use to teach the concepts and skills in this topic.

Lesson Plan

Shopping for a Home Mortgage Loan:

Students will analyze the data given to decide which type of loan they will buy. After selecting their options, students will estimate the first loan payment. FHA loans offer a better interest rate than conforming loans, but buying premium insurance is a requirement to qualify for an FHA loan, increasing the upfront cost of the loan. Fixed interest rate loans seem like the best choice because you have the same mortgage payment every month; however, adjustable rate loans offer a better interest rate and it has a cap on the interest rate.

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. Click here to learn more about MEAs and how they can transform your classroom.

Type: Lesson Plan

Video/Audio/Animation

Introduction to Dangers of Using Credit:

This episode of Warren Buffet's Secret Millionaire's Club (4 minutes) introduces the dangers of using credit and only making the minimum monthly payment.

Type: Video/Audio/Animation

Student Resources

Vetted resources students can use to learn the concepts and skills in this topic.

Video/Audio/Animation

Introduction to Dangers of Using Credit:

This episode of Warren Buffet's Secret Millionaire's Club (4 minutes) introduces the dangers of using credit and only making the minimum monthly payment.

Type: Video/Audio/Animation

Parent Resources

Vetted resources caregivers can use to help students learn the concepts and skills in this topic.