3.6 Credit Card Statement - A

Financial Algebra Second Edition

Slide 1

3-6: Credit Card Statement

Learning Goals

The students will be able to:

• Read a credit card monthly statement

• Identify and use the various entries in a credit card statement.

Financial Algebra Second Edition

A) To turn in

Financial Algebra Second Edition

B) How to Read Your Credit Card Statement
If you decide to open your own credit card or tag on to someone else’s as an authorized user, it’s important to learn how to read the statement and keep on top of your monthly bills. Watch this video and then, answer the following questions. (To turn in on paper)

1. Explain the importance of reading through your credit card
   statement regularly.

2. What happens if you only make the minimum payment on your credit card statement? Based on the video example, how long will it takes to pay off the balance? and how much will pay? How much could save if add $9 more to the payment?

3. What are the possible consequences of making a late payment?

Financial Algebra Second Edition

C) Understanding Your Credit Card Statement
To turn in on paper

Learn about credit card statements by hovering over each orange dot. Once you understand the statement, answer the following questions.


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Financial Algebra Second Edition

1. How large a payment must this customer make on 4/20/12 to be considered on-time with their payment?

2. If the customer wants to avoid paying interest, how much should she send by 4/20/12?

3. What is this customer’s interest rate, going forward?

4. What types of fees are included on this customer’s credit card statement for the month?

5. How much did this customer pay last month?

6. If you could offer this customer just ONE piece of advice, what would you choose?