Module 3
Credit and Debt: Build good habits and avoid pitfalls
Session 3.0: Build Credit & Debt Skills
Session 3.0: Build Credit & Debt Skills
The purpose of this lesson is to introduce the participants to the concept of credit and how our relationship with credit and debt impacts personal and financial goals. Videos will show how borrowing behaviors contribute to a credit history and score, and the costs of credit as a form of debt.
Review all materials in advance of delivering this session.
Session 3.1
Session 3.1: Types of Debt
The purpose of this session is to outline the difference between good and bad debt, how to classify debt as good or bad debt, the costs of credit and the types of goods and services people often purchase with the use of a loan. This includes a broader understanding of revolving (credit card), installment (loan), mortgage, student and other types of loans.
Review all materials in advance of delivering this session.
Session 3.2
Session 3.2: Responsible Credit
The purpose of this session is to review the opportunity cost of debt, the rules for using credit wisely (purpose, repayment, when to stop using), determining the overall cost of purchases using credit vs. cash, examining the total cost of borrowing and learning positive repayment behaviors.
Review all materials in advance of delivering this session.
Session 3.3
Session 3.3: Credit History
The purpose of this session is to provide an understanding the components of credit scores and histories, and how they are used. Participants will learn the impact of low and high credit scores (with and without credit products), determine the behaviors that affect a credit score, and discover how to deal with credit problems should they arise.
Review all materials in advance of delivering this session.
Session 3.4
Session 3.4: Identity Protection
The purpose of this session is to highlight the significance of personal identity, understand how it is used and learn how to protect it. Participants will see the implications of a compromised or stolen identity, and know who to contact if faced with this circumstance.
Review all materials in advance of delivering this session.