3.5 Credit Cards - A

Financial Algebra Second Edition

Slide 1

3-5 Credit Cards

Learning Goals

The students will be able to:

• Explain why a person may need or want to use credit.

• Explain how a credit card works in terms of making purchases and managing payments.

• Understand how interest is charged and how to avoid or minimize it.

Financial Algebra Second Edition

To turn in on paper:

A) Students and Credit Cards Answer the following questions.

After hearing the opinions of the students in this video,

- do you think YOU would want a credit card in college?

- Why or why not?

Financial Algebra Second Edition

B) VIDEO: Comparing Cards

Before you decide whether you should open a credit card, you need to understand how it differs from a debit or prepaid debit card.

1.Watch this video and use this 3-column chart to record important details, at least 2, about each type of card.

Debit Card

Credit Card

Prepaid Debit Card

2.After watching the video and comparing the cards, which one of the three
would be the best option for you as your day-to-day payment method?
Explain why.

Financial Algebra Second Edition

C) Credit Card Basics
Watch this video and then summarize.

1.Difference between credit & debit

2.Three types of credit cards, and

3.At least 3 benefits of using a credit card for
purchases.

Financial Algebra Second Edition

D) INFOGRAPHIC: What Young People Need to Know About Credit

There’s a ton of good information on this infographic, but let’s focus on two sections
which will explain Why Credit Is Useful and, farther down the page, How Young
People Get Credit.

1.Why might young adults, in particular, value credit in case of emergency?

2.If you’re trying to gain access to a credit card before you turn 21, which of the
suggestions rely on the support of a parent or guardian?

3. Which of the suggestions do NOT rely on the support of a parent or
guardian?

Financial Algebra Second Edition

E) Use the chart below to answer the questions on the next slide:

Financial Algebra Second Edition

1.What percent of current college students use
their credit cards in emergency situations, only?

2.What is the number one category of spending
across all three populations?

3.What category of credit card spending has the
greatest difference between Completers and Non-
completers? What is that difference?

Financial Algebra Second Edition

Slide 8

1) Frank lost his credit card in a local mall. He notified his creditor before the card was used. However, later in the day, someone found the card and charged $700 worth of hockey equipment on it. How much is Frank responsible for paying?

2) Carrie’s credit card was stolen. She didn’t realize it for days, at which point she notified her creditor. During that time, someone charged $2,000. How much is Carrie responsible for paying?

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F) Open and read the article: Lost or Stolen Credit, ATM, and Debit Cards

Financial Algebra Second Edition

EDPUZZLE: Credit Card Debt Explained

As you’ve seen, college students use credit cards for a wide variety of purchases. But, what happens if they (or anyone) spend way too much using credit? Watch this video to answer the questions within the EdPuzzle itself. The video is already assigned to your class; go to EdPuzzle.com.