Taking
Control
of Your
Credit
Teacher’s
Guide
By Grant C. Black
Center for Economic Education
Indiana University-South Bend
Lesson Plan
Organization
The lessons in this Teacher’s Guide provide teachers with all the information necessary to
effectively teach the concepts presented in and related to the PBS39 Video Field Trip, Taking
Control of Your Credit. Each lesson clearly outlines every category of instructional elements
to help teachers quickly assess the purpose and strategy of the lesson.
Video Field Trip Connection
This section identies the chapter marker(s) on the Taking Control of Your Credit DVD corre-
sponding to the concepts targeted for the lesson.
Key Concepts
This section lists the concepts introduced in the Taking Control of Your Credit Video Field Trip
DVD chapters identied in the Video Field Trip Connection section. Key concepts are num-
bered based on the lesson number and order of concepts. For example, Key Concept 1.2 is
the second concept in Lesson 1.
Additional Concepts
This section lists concepts not directly discussed in the Taking Control of Your Credit Video
Field Trip DVD but related to its content. The additional concepts are included to enhance the
coverage of the Taking Control of Your Credit Video Field Trip DVD. Additional concepts are
numbered based on the lesson number and order of concepts (including Key Concepts). For
example, Additional Concept 2.10 is the tenth concept in Lesson 2.
Content Standards and Performance Expectations
This section identies the Indiana content standards and performance expectations associ-

Personal Finance
PF 1.1.5 Create and analyze a personal balance sheet
PF 1.1.7 Develop nancial goals for the future and a nancial plan based on one’s lifestyle,
expectations skills, and career choices
PF 1.1.10 Identify various traditional and technology resources available for obtaining
nancial information
PF 1.2.5 Distinguish between simple and compound interest
PF 3.3.1 Develop and modify a personal budget for income, saving, and xed, variable and
discretionary expenses
PF 3.3.2 Compare and contrast disposable and discretionary income
PF 3.3.3 Discuss the importance of the concept of “paying yourself rst” in relationship to
saving for meeting one’s nancial goals
PF 3.3.5 Analyze alternative actions for dealing with nancial difculties, such as credit
overextension, loss of job, and disability
PF 3.6.3 Evaluate the advantages and disadvantages of electronic banking such as direct
deposit, debit cards, ATM, and online banking
PF 3.6.4 Analyze privacy and security issues associated with nancial transactions,
endorsements and electronic banking
PF 4.1.2 Analyze impulse purchasing and how marketers employ techniques to stimulate
impulse buying
PF 4.1.4 Investigate goods and services, buying options, and present sound nancial
recommendations
PF 4.1.5 Compare and contrast the advantages and disadvantages of purchasing and
using credit
PF 4.3.1 Analyze sources and types of credit
PF 4.3.2 Analyze credit components such as principal, interest, payment periods, grace
periods, credit limits, incentive buying, fees, and minimum payments
PF 4.3.3 Analyze credit marketing techniques, features and pitfalls
PF 4.3.4 Create a plan for repaying debt
PF 4.3.5 Select an appropriate form of credit for a particular buying decision

CE.1.4 Apply management, decision-making, and problem solving processes to
accomplish tasks and fulll responsibilities
CE.2.4 Examine interrelationships of standards, wants, needs, goals, and consumer
satisfaction
Pre-Test and Post-Test
To assess students’ overall level of learning from the Video Field Trip, Taking Control of Your
Credit, it is recommended to administer pre- and post-tests to students. Results from the pre-
test can also guide the teaching strategies and concepts to emphasize based on the lessons
included in this Teacher’s Guide.
Prior to watching the Taking Control of Your Credit Video Field Trip DVD or introducing any
related concepts, have students complete the following pre-test. The pre-test includes ten
true/false and multiple-choice questions. The pre-test and pre-test answer key are included.
For immediate feedback in the classroom, have students exchange their test with another
student after everyone has completed the pre-test. Review the answers to each question of
the pre-test and have the students grade one another’s tests. Have students return the pre-
tests so each student can review their understanding. Collect the pre-tests to assess students’
understanding of the main concepts.
After watching the Taking Control of Your Credit Video Field Trip DVD and completing the
accompanying lessons in this Teacher’s Guide, have students take the following post-test.
The post-test is identical to the pre-test, with ten true/false and multiple-choice questions. The
post-test and post-test answer key is included.
As with the pre-test, have students exchange their test with another student after everyone
has completed the post-test. Review the answers to each question of the post-test and have
the students grade one another’s tests. Have students return the post-tests so each student
can review their understanding. Collect the post-tests to assess students’ understanding of the
main concepts taught using the Taking Control of Your Credit Video Field Trip DVD.
The included pre-test, post-test, and answer keys serve only as templates and can be modi-
ed by teachers to tailor the material to their teaching strategies.
Pre-Test
Name:

Assistance Foundation, the percentage of college freshmen who are at least
four months behind on their credit card payments is:
a. 7%
b. 21%
c. 38%
d. 70%
9. To help prevent the abuse of credit usage, a smart consumer will:
a. compare needs versus wants
b. usually only use credit to buy expensive, long-lasting goods
c. save money to plan for emergencies and future spending
d. all the above
10. Someone with signicant credit problems due to overusing credit cards
should contact the:
a. Better Business Bureau (BBB)
b. Internal Revenue Service (IRS)
c. Consumer Credit Counseling Service (CCCS)
d. Securities and Exchange Commission (SEC)
d. 5%
8. According to a 2007 survey by the New Hampshire Higher Education
Assistance Foundation, the percentage of college freshmen who are at least
four months behind on their credit card payments is:
a. 7%
b. 21%
c. 38%
d. 70%
Pre-Test Answer Key
What Do You Know about Credit?
1. A credit card is the same as a debit card.
FALSE
2. From the borrower’s perspective, an interest rate is the cost of borrowing money,


a. compare needs versus wants
b. usually only use credit to buy expensive, long-lasting goods
c. save money to plan for emergencies and future spending
d. all the above
10. Someone with signicant credit problems due to overusing credit cards should
contact the:
a. Better Business Bureau (BBB)
b. Internal Revenue Service (IRS)
c. Consumer Credit Counseling Service (CCCS)
d. Securities and Exchange Commission (SEC)
Post-Test
Name:
What Do You Know about Credit?
For questions 1-5, indicate whether the given statement is true or false.
1. A credit card is the same as a debit card.
TRUE / FALSE
2. From the borrower’s perspective, an interest rate is the cost of borrowing money,
usually determined as a percentage of the amount borrowed.
TRUE / FALSE
3. Using a credit card to pay for consumable goods like food and beverages is a good
idea.
TRUE / FALSE
4. Some employers or schools may review a person’s credit report and deny employ-
ment or acceptance to people with bad credit histories.
TRUE / FALSE
5. The grace period on a credit card is the time period between when you receive your
credit card bill and when you have to pay it.
TRUE / FALSE
For questions 6-10, choose the alternative that best answers the question.

d. Securities and Exchange Commission (SEC)
Post-Test Answer Key
What Do You Know about Credit?
1. A credit card is the same as a debit card.
FALSE
2. From the borrower’s perspective, an interest rate is the cost of borrowing money,
usually determined as a percentage of the amount borrowed.
TRUE
3. Using a credit card to pay for consumable goods like food and beverages is a
good idea.
FALSE
4. Some employers or schools may review a person’s credit report and deny
employment or acceptance to people with bad credit histories.
TRUE
5. The grace period on a credit card is the time period between when you receive
your credit card bill and when you have to pay it.
FALSE
6. To keep your credit card interest payments as low as possible,
a. pay the minimum monthly payment
b. try to pay off your credit card bill in full every month
c. pay off your credit card bill only after saving enough money to pay it in
full, no matter how long it takes
d. switch to a different credit card that has a higher interest rate
7. It is generally recommended that the proportion of your net income used for
credit payments not exceed:
a. 50%
b. 30%
c. 20%
d. 5%
8. According to a 2007 survey by the New Hampshire Higher Education

1.5 Types and functions of money
1.6 Charge card versus credit card
1.7 Checking accounts and savings accounts
Content Standards and Performance Expectations
PF 3.6.3

PF 4.1.4
PF 4.1.5
PF 4.3.1
PF 4.3.5

PF 5.1.1
PF 5.1.2
PF 5.1.3
PF 5.1.4
PF 5.1.6
PF 5.1.8

E.6.1

E.6.5

CE.1.1
Vocabulary
ATM card — card that allows withdrawals and deposits from bank accounts using an
automatic teller machine (ATM) and functions as a debit card requiring a personal iden-
tication number for transactions.
Borrower — a person or institution that obtains money from a lender with the
obligation to repay the money loaned.
Car loan — credit issued by a nancial institution for the express purpose of

informs students about credit and its use by examining different methods of payment
and types of credit. Students are engaged by exploring personal spending patterns
and credit usage. The lesson strengthens student’s communication and critical thinking
skills through classroom activities and personal exercises.
Procedures
1. Watch the Taking Control of Your Credit Video Field Trip DVD (at least
chapters 1 and 2).
2. Ask students for their reactions to the DVD. Encourage any responses without
trying to initially steer the direction of the discussion.
3. Introduce information about teen spending and credit card use using the Facts about
Teen Spending sheet. Highlight the substantial spending by teens, the alarming misuse
of credit cards by college students, and the widespread use of credit cards among the
entire population.
4. Review the vocabulary as appropriate to ensure students clearly understand the
concepts being discussed.
5. As an in-class exercise to engage students at a personal level, use Activity 1 Class-
room Survey to examine students’ sources of income, spending, use of checking and
savings accounts, and use of credit. Expand on the survey questions to stimulate stu-
dents’ personal reection about these issues.
6. Distribute Exercise 1 Family Credit Survey to students. Explain that this exercise asks
students to investigate how goods found at home are purchased, the usage of credit by
the family, and the types of credit used. After completing the survey with their parents,
students must write a short assessment of their family’s credit usage.
7. Lesson 2 explores where to get credit, as well as credit card marketing.
Assessment
Teacher observation of classroom participation
Rubric for Exercise 1
Additional Resources

/> “Clothed, Fed and Over Their Heads?”

• $3,106: average credit card debt
• $7,937: average credit limit
• 5.96: average number of credit cards
• 1.98: average number of credit cards actively in use at the time of the survey
• 42%: percent with six or more credit cards
• $1,200: average credit card debt for students with two credit cards
• $4,830: average credit card debt for students with six or more credit cards
• 28%: percent of freshmen with more than $3,000 in credit card debt
• 51%: percent of freshmen delinquent on their credit card payments
• Up to 10%: percentage of college students who will drop out due to
credit card problems
2
Credit Card Use among the US population
• $3,238: average credit card debt
4
• 4: average number of credit cards
5
• 14%: percent of persons with more than 10 credit cards
5
Sources:
1 — ”Targeting Teens,” Teenage Research Unlimited, 2007
2 —”Can You Believe This?” CARE Program
( />0Believe%20This%20Handout%20new%20logo.pdf)
3 — ”Clothed, Fed and Over Their Heads,” New Hampshire Higher Education
Assistance Foundation, 2008

4 — Federal Reserve, Consumer Credit, March 7, 2008 release
5 — /> 1In7AmericansCarries10CreditCards.aspx?page: all
Activity 1
Classroom Survey

1. How many credit cards does the family have, including gas and store credit cards?
2. How often are credit cards usually used to buy things?
Never
Monthly
Weekly
Daily
Other (Explain: )
3. List all the types of loans the family has ever had (mortgage, car loan,
student loan, etc.)
4. Check the appropriate box in the table below to indicate how common items at a
home are purchased. Note that some answers can be a combination of credit and
other methods. If you do not have a listed item at your home, skip to the next item.

5. If applicable, ask your parents why they chose to use credit to buy some of the
items listed above.
Based on your own opinion, write a paragraph assessing your family’s use of credit to
make purchases, including the various types of credit used.
Rubric for Exercise 1
Name
Performance Indicator
0 1 2 3 4
Student demonstrated understanding of ways to
purchase goods and services, including differences
between debit and credit
Student demonstrated understanding of different
types of credit and their sources
Student effectively used critical thinking skills to
analyze the use of credit and their family
Student appropriately used technical terminology
Student used clear and concise writing skills

PF 1.1.10
PF 4.1.2
PF 4.3.1
PF 4.3.2
PF 4.3.3
PF 5.1.1
PF 5.1.2
PF 5.1.3
PF 5.1.4
PF 5.1.5
PF 5.1.6
PF 5.1.8
E.1.2
E.1.4
E.6.5
CE.1.1
CE.1.4