Using Money You Don't Have Educational Resources K12 Learning, Economics, Practical Life Skills, Life Skills Lesson Plans, Activities, Experiments, Homeschool Help

Lesson Plan - Get It!

Audio:

A friend has come to you. She is in tremendous debt, and the debt collectors won't stop harassing her. What advice would you give? What help would you suggest?

In contemporary American society, people need to borrow money for several different reasons.

Depending on your financial situation and the purpose for your loan, you can choose from several different types of credit.

Read the article, Get to Know Types of Credit, by John Ventura and Mary Reed, courtesy of John Wiley & Sons, Inc.

As you read, record the important information and ideas you uncover using the Types of Credit organizational research chart interactive below.

Next, locate at least two or three print, video, or other sources on the same topic, and add any new information and ideas you uncover to the chart:

Share your findings with your parent or teacher, and discuss the following questions:

Why do lenders lend money? What benefit do they get from lending it?
What risks do lenders face? What risks do borrowers face?
How do credit and other forms of borrowing figure into an individual's financial life?

Now that you're more familiar with the different types of money-borrowing, let's take a look in the Got It? section at the risks that go along with spending money you don't really have!