Slide 1Family Economics & Financial Education
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© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Divide the students into teams of 3-5
Provide each team with a white board and a dry erase marker
Have each team create a team name and write it on the board where points are being tallied
Choose a team to select a category and point value
Read the question and allow all of the teams 10 seconds to write their response on the paper
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Trivia Instructions
Have the students hold their answers up at the same time
Each time, award every team who answered the question correctly the money value indicated by the question
If they answer incorrectly, the teacher may take away the point value
Allow the next team to choose the category and point value
Continue until all of the questions have been answered
The team with the most money at the end wins
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
$100
$100
$100
$100
$200
$200
$200
$200
$300
$300
$300
$300
$400
$400
$400
$400
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
for having a credit card.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is an annual fee?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
an initial credit check.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is pre-approved?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Answer:
A person or organization who has the resources to provide an individual with a loan.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Who is the lender?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Terminology$400
Answer:
A plastic card that is electronically connected to the cardholder’s bank account.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
 
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
The cost of credit expressed
as a yearly interest rate.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is the annual percentage rate (APR)?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
credit card account to another.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
 
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Answer:
 
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is introductory rate?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Answer:
The interest rate charged on new transactions if the penalty terms in the credit card contract are triggered.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is penalty APR?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
An individual’s ability and willingness to pay money back.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
 
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
A record of a consumer’s credit history.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is credit report?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
credit record and history.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is a credit score?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
An example of positive credit card use.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Paying card bills on time
Applying for only cards that are needed
Keeping track of all charges
Checking monthly card statement for errors
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Answer:
Outlines important information about a credit card, including transactions the cardholder has made during that billing cycle and the current balance on the credit card.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is a credit card statement?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Answer:
The cardholder’s liability for unauthorized credit card charges under the Truth in Lending Act.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
 
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
allowed to the account.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is the credit limit?
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Answer:
To increase credit card safety, the back of the card should include the cardholder’s signature and this.
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
What is “Please see ID?”
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
Final
Trivia
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2
An APR that may change depending on other factors
© Family Economics & Financial Education –September 2010– The Essentials to Take Charge of Your Finances– Understanding a Credit Card Essentials Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at The University of Arizona
7.4.2.G2