Standard 1 – Identify the costs and benefits of various types of credit.

4th Grade
student can:

Explain the difference between buying with cash and buying with credit.

Describe the advantages and disadvantages of using credit.

Explain why financial institutions lend money.

Identify credit purchases that adults commonly make.

Explain why using a credit card is a form of borrowing.

8th Grade
student can:

Explain how debit cards differ from credit cards.

Explain how interest rate and loan length affect the cost of credit.

Using a financial or online calculator, determine the total cost of repaying a loan under various rates of interest and over different periods.

Give examples of “easy access” credit.

Given an “easy access” loan amount and a two-week borrowing fee, calculate the interest rate for the loan period and its annual equivalent.

Discuss potential consequences of using “easy access” credit.

Explain how students, homeowners, and business owners use debt as an “investment.”

Explain the potential consequences of deferred payment of student loans.

12th Grade
High school graduate can:

Compare the cost of borrowing $1,000 by means of different consumer credit options.

Define all required credit card disclosure terms and complete a typical credit card application.

Explain how credit card grace periods, methods of interest calculation, and fees affect borrowing costs.

Using a financial or online calculator, compare the total cost of reducing a $1,000 credit card balance to zero with minimum payments versus above-minimum payments.

Given a scenario, apply systematic decision making to identify the most cost-effective option for purchasing a car.

Identify various types of student loans and alternatives to loans as a means of paying for post-secondary education.

Identify various types of mortgage loans and mortgage lenders.

Standard 2 - Explain the purpose of a credit record and identify borrowers’ credit report rights.

4th Grade
student can:

Describe the qualities that would be desirable in a person who borrows a favorite personal possession.

Give examples of reasonable conditions to set for the use of borrowed personal property.

Given a scenario, describe steps that a person could take to regain a lender’s trust after losing or damaging borrowed personal property.

8th Grade
student can:

Explain why it is important to establish a positive credit history.

Explain the value of credit reports to borrowers and to lenders.

Describe the information in a credit report and how long it is retained.

Give examples of permissible uses of a credit report other than granting credit.

12th Grade
High school graduate can:

Describe the elements of a credit score.

Explain how a credit score affects creditworthiness and the cost of credit.

Explain the factors that improve a credit score.

Identify organizations that maintain consumer credit records.

Explain the rights that people have to examine their credit reports.

Analyze the information contained in a credit report, indicate the time that certain negative data can be retained, and describe how to dispute inaccurate entries.

Discuss ways that a negative credit report can affect a consumer’s financial future.

Standard 3 - Describe ways to avoid or correct credit problems.

4th Grade
student can:

List ways to avoid credit problems, including not overspending.

8th Grade
student can:

Give examples of legal and illegal debt collection practices.

Identify possible indicators of excessive debt.

12th Grade
High school graduate can:

Describe possible consequences of excessive debt.

List actions that a consumer could take to reduce or better manage excessive debt.

Evaluate various credit counseling services.

Describe the purpose of bankruptcy and its possible effects on assets, employability, and credit cost and availability.

Given a scenario, write a billing dispute letter that states the problem, asks for specific action, includes references to copies of related documents, and provides contact information.

Describe debtors’ and creditors’ rights related to wage garnishment and repossession when an overdue debt is not paid.

Standard 4 - Summarize major consumer credit laws.

4th Grade
student can:

Not Applicable

8th Grade
student can:

Give examples of protections derived from consumer credit laws.

12th Grade
High school graduate can:

Summarize consumer credit laws and the protections that they provide.

Research online and printed sources of up-to-date information about consumer credit rights.