Embedded Files
Theme 3 Overview
Theme 3 Overview
Theme Assessments
Theme Assessments
A variety of formative and summative assessments are available throughout the theme in multiple formats. Visit the Assessments tab to access them.
Project
Project
Theme Projects can be done during or immediately following the completion of the corresponding theme or as a capstone to the course. Please review all project content and the Pacing Guide to plan appropriately for your unique classroom situation.
Credit is the amount of money a borrower receives and agrees to pay back with interest to the lender. The lender relies on a report of the borrower’s credit history to determine whether to extend a loan. The report includes a record of the borrower’s ability to repay debt.
Student Learning Objectives:
Student Learning Objectives:
Explain the concept of credit.
Distinguish the pros and cons of credit.
Develop techniques for building a strong credit history.
Summarize major consumer credit laws.
Implementation:
Implementation:
Teacher-led Session
Building a strong credit history requires using credit wisely. Credit cards, loans, and nontraditional credit options, such as rent-to own plans and payday loans, are expensive ways to manage money. Often the results of poor credit choices will require debt management plans and credit counseling.
Student Learning Objectives:
Student Learning Objectives:
Explain the types and sources of credit.
Compute interest amounts on a loan.
Develop an action plan for fixing bad credit.
Implementation:
Implementation:
Teacher-led Session
Lenders evaluate a person’s credit worthiness based on the Five C’s—capacity, capital, conditions, collateral, and character—as well as the person’s credit report and credit score. Maintaining good credit is pivotal in acquiring future credit. Consumers need to monitor their credit accounts and reports and keep their personal and financial information safe to maintain their good credit.
Student Learning Objectives:
Student Learning Objectives:
Explain the impact credit scores and credit reports have on obtaining credit.
Evaluate the process of the Five C’s of credit.
Explain what a credit score indicates and how it affects a person’s financial history.
Identify strategies for protecting personal financial information and resources.
Implementation:
Implementation:
Teacher-led Session
Volunteer Video: Better Business Bureau
Repaying debt is a legal and ethical matter. People who run into financial trouble can often improve their financial situation with some effort. When consumers are not able to manage debt on their own, they can work with a credit counselor to develop a debt management plan. Bankruptcy is a legal action used to remove the debts of businesses and individuals who are unable to pay their bills, but it has severe credit consequences.
Student Learning Objectives:
Student Learning Objectives:
Compare and contrast debt management plans.
Examine two types of bankruptcy: Chapter 7 and Chapter 13.
Explain why bankruptcy might not be the best choice in a given situation.
Interpret complex data and analyze the services of DMP agencies and whether to file bankruptcy in a given situation.
Implementation:
Implementation:
Student Self-Guided Modules
Teacher-led Session
Volunteer Video: Consumer Credit Counselor
Content Statement
Content Statement
In Theme 3, the following Ohio Financial Literacy Content Statements are addressed:
In Theme 3, the following Ohio Financial Literacy Content Statements are addressed:
Standard 1: Financial responsibility entails being accountable for managing money to satisfy one’s current and future economic choices.
a. Identify responsible ways for managing money for short- and long-term goals.
b. Describe actions that are both responsible and irresponsible uses of money.
Statement 12: Consumer advocates, organizations and regulations provide important information and help protect against potential consumer fraud
a. Identify ways consumers can identify fraud and protect themselves from becoming a victim of fraud.
b. Describe the process for consumers who believe they are victims of fraud to seek recompense.
Statement 13: Part of being an informed consumer is knowing how to utilize financial services and risk management tools, as well as comparing consumer lending terms and conditions and reading financial statements.
a. Compare the terms and conditions of the consumer lending statements from two or more financial institutions to determine which one is better for a given consumer
Statement 14: Consumer protection laws help safeguard individuals from fraud and potential loss.
a. Consumers must monitor their credit card and financial accounts to be aware of fraudulent purchases or withdrawals.
b. Identify a consumer protection law and explain why it was developed and how it serves to protect individuals from fraud and potential loss.
Statement 19: Credit is a contractual agreement in which a borrower receives something of value now and agrees to repay to lender at some later date.
a. Borrowers must repay loans according to the contractual terms.
b. Describe the difference between a loan from a bank and one from a payday lender.
c. Compare the final repayment amount of a loan from a bank and a loan from a payday lender on a large purchase such as a car.
Statement 20: Debt is an obligation owed by one party to a second party.
a. Develop a repayment plan to satisfy debt obligations in a given scenario
b. Explain the implications of declaring bankruptcy.
Statement 21: Effectively balancing credit and debt helps one achieve some short and long-term goals.
a. Credit scores are based on factors such as length of time the person has had financial accounts, types of credit used, payment history, amounts owed and new credit.
b. Attaining a high credit score is one of the goals consumers should set
c .Discuss steps a consumer can take to get and keep a high credit score. .
d. Discuss factors that will reduce credit scores
Statement 22: Financial documents and contractual obligations inform the consumer and define the terms and conditions of establishing credit and incurring debt.
a. Summarize the terms of a credit card or other loan agreement.
b. Evaluate several credit card offers and choose the best card based on criteria such as interest rate, fees and rewards programs
c. Describe how the Truth in Lending Act (TILA) and Credit Card Accountability, Responsibility and Disclosure (Credit CARD) Acts protect consumers
Statement 23: Many options exist for paying for post-secondary education opportunities.
a. Evaluate choices for funding postsecondary education options considering amount available, interest, repayment options and total cost.
Statement 24: A risk management plan can protect consumers from the potential loss of personal and/or business assets or income.
Statement 25: Safeguards exist that help protect one’s identity.
a. Describe problems that can occur when an individual is a victim of identity theft.
b. Give specific examples of how online transactions, online banking, email scams and telemarketing calls can make consumers vulnerable to identity theft.
c. Describe the conditions under which individuals should and should not disclose their social security number, account numbers and other sensitive personal information.
d. Recommend actions a victim of identity theft should take to limit losses and restore personal security.
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