https://docs.google.com/document/d/1HHVAxYAM9tzfJbyRMNOns6dQ

Credit Union vs banks

https://youtu.be/04pTL_yf6Lo

Students will watch the video and Complete the venn diagram. See attached document:

https://www.econedlink.org/wp-content/uploads/legacy/691_venndiagram1.pdf

After listening to the podcast, the students will answer the following as homework:

1) What is a credit score? What does it tell?
2) What does it mean to be creditworthy?
3) Why does Eric Smith recommend no one carry more than two credit cards at a time?
4) What is the minimum amount of time someone should take a loan out?

5) Why should someone only charge what they can afford to pay off?

The previous video illustrated some of the math behind credit card interest and payments and warned about going into debt. But what does it FEEL like to be swimming in overwhelming debt? Play this game to experience a lighthearted version of compounding debt, and then answer these questions. 

1. Use these sentence starters to explain how Cat Insanity is an analogy for debt repayment.

1. The multiply rate is… 

2. The # of cats is… 

3. Your food scoops are… 

4. An underfed cat is…
   
   

5. A dead cat is...

2. If you had to make a real-life decision involving debt, what would you do differently as a result of playing the game?

1. Why is it important to have an emergency savings fund, and how much should you aim to save in the fund initially?

2. If you’re saving for both an emergency fund and a long-term goal like retirement, how would you decide how much money to allocate toward each?

3. If you are paying off a credit card with a balance of $500 and an interest rate of 18%, how could making additional payments beyond the minimum help you save money in the long run?

4. You want to create a budget that includes both short-term and long-term financial goals. How would you categorize these goals, and what steps would you take to ensure both are met?

5. Explain three different services banks offer their customers.

6. Explain compare and contrast APY and APR.

7. What are some major differences between a bank and a credit union?

8. What is a consequence to carrying a balance on a credit card?

9. What are some benefits and disadvantages to using cash as opposed to card (both credit and debit)?

10. How does understanding amortization help you become a better educated consumer?

Discussion should be focused on, how did this lady mess up?

Teacher must communicate that students who currently have savings accounts that they are accruing interest even if it is small.