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TEACHER LESSON PLAN

Lesson 5-4: Financial Service Providers

©2014 National Endowment for Financial Education www.hsfpp.org Lesson 5-4: Financial Service Providers

High School Financial Planning Program 1 June 2014

OVERVIEW

Travel a few miles from your home, and you will see

many places where you can cash a paycheck, open a

savings account, or get a money order. It can be to your

advantage to choose a bank or credit union for your

routine business so you have a trusted place to turn to

when you’re ready for a credit card or loan. But there

may be times when you choose to use services provided

by other businesses.

In this lesson you will learn about the businesses that

provide financial services. Use what you learn to be

informed about fees and customer service options when

deciding where you conduct your business.

PREPARATION

Order a Module 5 Student Guide for each

student. (The Guide is available to download.)

Preview the lesson PowerPoint presentation,

learning tasks, and the Module 5 Student

Guide, particularly pages 25-30.

Print or download the Student Learning Plan

for this lesson so each student has a copy.

If Internet access is limited, gather information

for Learning Task 2 and Task 3.

Consider creating a list of nearby financial

businesses that provide banking services,

including grocery stores and Check Cashing

businesses.

Decide whether or not to facilitate the optional

Payday Lending Learning Task.

WHAT YOU WILL NEED

Module 5 Student Guide (pages 25-30)

PowerPoint Presentation 5-4

Student Learning Plan 5-4

Activity 5.6: What do They Offer?

Challenge 5-B: Which is Best for Me?

Internet access

Sample fee schedules and disclosure

statements or websites for local financial

service businesses (Learning Task 3)

Task: Payday Lending (optional)

Task: Take Money on the Road (Taking It

Home)

NOTES:

Approximate time: 45 minutes (minimum) - 90 minutes (with extension activities)

Resources:

Consumer Financial Protection Bureau (CFPB), www.consumerfinance.gov. Tips for consumer complaints.*

Federal Deposit Insurance Corporation (FDIC), www.fdic.gov. Consumer protection tips.

Federal Reserve Education website, www.federalreserveeducation.org. Teaching resources.*

National Credit Union Administration (NCUA), www.mycreditunion.gov. Consumer tips, financial tools.

LEARNING OUTCOMES

In this lesson students will learn about

services provided by various financial service

providers. Along the way they will:

Give examples of services provided by

different types of financial institutions.

Review guidelines for using banking

services.

Discuss criteria to consider when

choosing where to use banking services.

Students will use what they learn to select a

financial service provider.

http://www.consumerfinance.gov/

https://www.fdic.gov/

https://www.federalreserveeducation.org/

http://www.mycreditunion.gov/Pages/default.aspx

TEACHER LESSON PLAN




Learning Tasks Teaching Notes Materials

1. Brainstorm a list of

personality

characteristics and

traits you look for in a

good friend. Focus on

actions or

characteristics and not

on how that person

would look.

PROCEDURE TIME ESTIMATE: 5 minutes

Have students brainstorm a list of characteristics they would

look for in an ideal friend or life partner. Tell them to focus on

personality characteristics rather than just visual traits. For

example, they would write “friendly” or “ready with a smile” rather

than “dazzling white teeth.” Set a two- or three-minute time limit.

As students brainstorm a list, explain that many people spend a

lot of time looking for that perfect person with whom to spend the

rest of their lives. We trust that person with our lives. To a lesser

degree, we place our trust in a financial institution when we select

one to help us manage and grow our finances, but we don’t always

put time and effort in choosing one that is the right long-term

financial partner. The types of characteristics they may look for in a

personal relationship could also apply to their financial relationship.

Now ask students to cross off any traits that would NOT apply to

a financial institution. With the whole class, review what is left to

create a master list.

Note: This activity should promote initial laughter but as they work

on this, students will realize that different financial institutions have

different cultures, services, target audiences, etc., and that

analyzing these characteristics can help them identify what they

think is important in a financial institution. Sample traits: friendly,

responsive, local, worldly (becomes “global” for a bank), funny,

trustworthy, accomplished, smart, trendy, tech savvy.

Alternate Activity: Have students brainstorm the personal and

financial impacts of NOT having a bank account. (accounts not

protected by insurance, rent/mortgage application, theft possibility,

check cashing fees, potential credit impacts, difficulty paying bills or

mailing funds for bill/gift, etc.)

EXTENSION: In teams of two or three, challenge the student to list

as many local banks and credit unions as possible in a few minutes.

[Slide 2] Transition into the lesson by telling the students that

they will learn about the differences and similarities of places where

they can carry out their financial business. Preview the Learning

Outcomes in the Student Learning Plan. By the end of this lesson,

the students should be able to select a financial service provider.

Module 4 Student

Guide

Student Learning

Plan

SLIDE

2 – Preview

TEACHER LESSON PLAN





2. What’s the

difference between a

bank and a credit

union? If you don’t

have a bank account,

where can you cash

your paycheck? Work

with a team to learn

about a business that

provides financial

services, and share

what you learned with

your classmates.

PROCEDURE TIME: 15-20 minutes

[Slide 3] Point out that consumers have several options when

they need to cash paychecks, pay bills, or store their money. The

options displayed in the slide offer similar services in different ways.

Arrange students into teams, and assign each topic to at least

one team. Tell the teams that they have 5-10 minutes to learn

about their assigned type of business so they can teach their

classmates about the financial services the provider offers to

consumers. Arrange for each team to assign a recorder to outline

the team’s findings and a reporter to report findings to the whole

class, with or without visual aids. Keep students on a tight schedule

to focus on their work. Suggest that the team members divide

duties to locate specific information. (Note: If Internet access isn’t

available, consider printing information from a service provider’s

websites or at least one other credible resource.)

[Slide 4, Student Guide, pages 26-29] Have students work in

small groups to use the information in the Student Guide and at

least one other trustworthy resource so they can share the following

about their assigned service providers:

One- or two-sentence description of the business and

reference to at least one specific local example.

List of typical consumer finance services provided by the

business.

Thirty- to sixty-second explanation of how consumers use the

services, including examples of how teens (or their families)

might use the services.

Arrange for each team to report findings to the whole group

either with or without visual aids. Debrief by asking students to

compare similarities and differences of the providers. Fill in any

gaps to ensure the students have accurate information about the

services that are provided, whether or not fees are charged for

services, and how services are or are not regulated.

STUDENT GUIDE

Pages 26-29

SLIDES

3 – What’s the

Difference?

4 – Teach Your Peers

ACTIVITY

Internet access

(opt) access to

PowerPoint for

presentation or

poster materials

TEACHER LESSON PLAN





3. It would have helped

Jason to better

understand the fees a

bank charges for

services and penalties.

It should never be a

mystery!

Review the sample fee

schedule or disclosure

statement. Document

at least five examples

of fees and under what

circumstances those

fees are charged.

Learn about the

services a business

provides as you

complete Activity 5.6:

What Do They Offer?


[Slide 5] Have students work in small groups. Either arrange for

Internet access or provide the students with sample disclosure

statements and fee schedules from different banks. Review the

directions with the students. (This is an opportunity to guide

students to use scanning skills to look for specific fee information in

business literature.)

Directions: It is your right to get a copy of your financial institution’s

deposit account agreement and disclosure statement which

outlines information about terms, fees, and interest rates for the

accounts offered by the financial institution. Review the sample fee

schedule, deposit account agreement, and disclosure statement.

Document at least five instances of fees and under what

circumstances those fees are charged. Ask the students the

following question; tell them to be prepared to share their findings

with the whole class.

Do you think the fees and fee conditions are reasonable?

Point out the value of knowing the fees charged for certain types

of accounts and the circumstances under which those fees can be

applied. It’s also important to know the different bank policies that

can apply when depositing funds or withdrawing funds.

Give students three to five minutes to work independently or in

pairs to complete Activity 5.6: What Do They Offer? as they locate

and document different fees and the circumstances under which

fees are incurred. If time allows, have the students report out on

one or two findings. Ask the class to identify fees they can avoid and

some strategies they can use to avoid them.

NOTES: Some fees imposed by financial institutions (bounced check

fees, ATM fees, etc.) can be avoided whereas other (monthly

account fees, check printing fees, etc.) cannot. You may need to

discuss the various fees and when it makes sense to pay a fee for

the services provided by a financial institution and when it does not.

STUDENT GUIDE

Page 27

SLIDE

5 – Read the Fine

Print

ACTIVITIES

Sample account

disclosure

statements and/or

sample fee schedules

from local financial

businesses (or)

access to websites of

financial businesses

Activity 5.6: What Do

They Offer?

[The instructor will

need to decide

whether or not to

facilitate this learning

task based on local

and state situations.]

PROCEDURE TIME: 10 minutes

Optional: If payday lending is allowed in your state, consider

facilitating this learning task to inform students of fees and how

payday lending works. As of January 2015, 18 states and the

District of Columbia prohibit extremely high-cost payday lending.

Source: Consumer Federation of America, PayDay Loan Consumer

Information, www.paydayloaninfo.org.

STUDENT GUIDE

Page 27

SLIDES

6 – Payday Loan

7 – Payday Loan …

Good Choice?

ACTIVITY

Task: Payday Lending

http://www.paydayloaninfo.org/

TEACHER LESSON PLAN





[Slide 6] In some states, consumers use payday lending

businesses to receive cash advances when cash is needed before

the next payday. Consumers give the payday lender a post-dated

check in return for cash. The amount borrowed is usually expected

to be repaid, along with fees and interest, when the next paycheck

is received.

[Slide 7] Use this slide to illustrate the high costs of payday loans.

Note that the interest shown is for a two- or four-week loan period

and should be converted to an annual percentage rate before

calculating the interest. For the examples, use the simple interest

formula. (Note: Calculation notes are provided in the Payday

Lending Task document.)

4. With so many

options, what

suggestions do you

have for someone who

needs to use financial

services? Recommend

criteria that a teen or a

young adult should

consider when

deciding on a provider.


[Slide 8] Guide the students to think about convenience factors

and user fees when deciding where they will use financial services.

Challenge the students to create a mnemonic device that teens or

young adults can use as a memory aid when they are deciding

where to cash checks, borrow cash, make payments, etc. The

mnemonic should include at least five criteria to consider.

(Mnemonic suggestions: acronym, limerick, graphic icons, or

memorable phrases.)

As time allows, arrange for students to verbally or visually share

their mnemonic tools. Point out that these will be useful as they

complete the challenge activity.

STUDENT GUIDE

Page 29

SLIDE

8 – Services That

Matter

5. To make sure a

credit union is the best

fit for her, Brianna

should really use the

DECIDE steps to

evaluate her needs

and to compare

financial service

provider options.

Complete Challenge

5-B: Which is Best

for Me? to select a

service provider.

PROCEDURE In- class or out-of-class assignment

[Slide 9] Assign the students to independently complete


Review the directions with the students. Tell students to perform

this exercise even if they already have an account with a financial

bank or credit union as an exercise to make sure it is the best

personal fit. Provide guidance to students as they complete the

activity. Encourage the students to include their own criteria for

comparison.

You may have students collect information from different

financial service providers or businesses prior to this activity.

STUDENT GUIDE

Page 30

SLIDE

9 – Challenge

ACTIVITY

Challenge 5-B: Which

is Best for Me?

TEACHER LESSON PLAN





REFLECTION:

Where do I keep my

money now and why?

Is it safe? Is it growing?

Can I track it?


[Slide 10] Ask the students to reflect on where they currently

keep their money and to analyze the situation based on what they

have learned about financial service options.

SLIDE

10 - Reflection

TAKING IT HOME

Planning on travelling?

To visit new places?

Gather information

about the variety of

ways to access the

cash or to purchase

things on the road.


Distribute the Take Money on the Road Task to provide students

with more instructions for this task. NOTE: You can use this as a

classroom extension having students work in five different groups,

each one researching a specific payment method. You may need to

select a specific credit card or financial institution to make it easier

for students to research the information.

ACTIVITY

Task: Take Money on

the Road

FURTHER STUDY:

Consider your future

needs for financial

services! What

financial services

would you need for

different life events?


Guide students to create criteria to use as they select an

appropriate financial service or business to help address the

financial needs for each of the following life events: college

education, starting a business, getting married, having children,

buying a home, retiring.

TAKING IT HOME Planning on travelling? To visit new places? Or perhaps moving away for college? Gather information about

the variety of ways you and your family can access cash or make purchases while on the road.

FURTHER STUDY Consider your future needs for financial services! Which financial services would you need for different life

events? Create criteria you would use to select an appropriate financial service or business to help address

the financial needs for any of the following life events: college education, starting a business, getting married,

having children, buying a home, or retiring.

*RESOURCE NOTES

The Consumer Financial Protection Bureau (aka CFPB or Bureau) began Consumer Response operations in

2011 and became the first federal agency solely focused on consumer financial protection. Collecting,

investigating, and responding to consumer complaints are integral parts of the CFPB’s work. The

www.consumerfinance.gov website provides tips to help students and their families make informed decisions

about paying for college and guidance for consumer complaints related to financial markets.

Each of the 12 branches of the Federal Reserve System (aka FRS or The FED) offers education resources and

helpful consumer publications. At www.federalreserveeducation.org search for lessons, publications, activities,

and videos related to financial services and other specific personal finance topics.

www.consumerfinance.gov

https://www.federalreserveeducation.org/

0


©2014 National Endowment for Financial Education | www.hsfpp.org

High School Financial Planning Program

Display this slide as you introduce the lesson and opening task.

Have students brainstorm a list of characteristics they would look for in an ideal friend or life

partner. Tell them to focus on personality characteristics rather than just visual traits. For

example, they would write “friendly” or “ready with a smile” rather than “dazzling white teeth.”

Set a two- or three-minute time limit.

As students brainstorm a list, explain that many people spend a lot of time looking for that

perfect person with whom to spend the rest of their lives. We trust that person with our lives.

To a lesser degree, we place our trust in a financial institution when we select one to help us

manage and grow our finances, but we don’t always put time and effort in choosing one that is

the right long-term financial partner. The types of characteristics they may look for in a

personal relationship could also apply to their financial relationship.

Now ask students to cross off any traits that would NOT apply to a financial institution. With

the whole class, review what is left to create a master list.

Note: This activity should promote initial laughter but as they work on this, students will realize that

different financial institutions have different cultures, services, target audiences, etc., and that

analyzing these characteristics can help them identify what they think is important in a financial

institution. Sample traits: friendly, responsive, local, worldly (becomes “global” for a bank), funny,

trustworthy, accomplished, smart, trendy, tech savvy.

Alternate Activity: Have students brainstorm the personal and financial impacts of NOT having a

bank account. (accounts not protected by insurance, rent/mortgage application, theft possibility,

check cashing fees, potential credit impacts, difficulty paying bills or mailing funds for bill/gift, etc.)

EXTENSION: In teams of two or three, challenge the student to list as many local banks and credit

unions as possible in a few minutes.

High School Financial Planning Program Lesson 5-4: Financial Service Providers

©2014 National Endowment for Financial Education | www.hsfpp.org 1

Transition into the lesson by telling the students that they will learn about the

differences and similarities of places where they can carry out their financial

business. Preview the Learning Outcomes in the Student Learning Plan. By the

end of this lesson, the students should be able to select a financial service

provider.



Student Guide, pages 26-29

Point out that consumers have several options when they need to cash

paychecks, pay bills, or store their money. The options displayed in the slide

offer similar services in different ways.

Arrange students into teams, and assign each topic to at least one team. Tell

the teams that they have 5-10 minutes to learn about their assigned type of

business so they can teach their classmates about the financial services the

provider offers to consumers. Arrange for each team to assign a recorder to

outline the team’s findings and a reporter to report findings to the whole

class, with or without visual aids. Keep students on a tight schedule to focus

on their work. Suggest that the team members divide duties to locate

specific information. (Note: If Internet access isn’t available, consider

printing information from a service provider’s websites or at least one other

credible resource.)



Student Guide, pages 26-29

Have students work in small groups to use the information in the Student

Guide and at least one other trustworthy resource so they can share the

following about their assigned service providers:

– One- or two-sentence description of the business and reference to at least

one specific local example.

– List of typical consumer finance services provided by the business.

– Thirty- to sixty-second explanation of how consumers use the services,

including examples of how teens (or their families) might use the services.

Arrange for each team to report findings to the whole group either with or

without visual aids. Debrief by asking students to compare similarities and

differences of the providers. Fill in any gaps to ensure the students have

accurate information about the services that are provided, whether or not fees

are charged for services, and how services are or are not regulated.



Student Guide, page 27

Have students work in small groups. Either arrange for Internet access or provide the students

with sample disclosure statements and fee schedules from different banks. Review the

directions with the students. (This is an opportunity to guide students to use scanning skills to

look for specific information in business literature.)

Directions: It is your right to get a copy of your financial institution’s deposit account

agreement and disclosure statement which outlines information about terms, fees, and

interest rates for accounts offered by the financial institution. Review the sample fee schedule,

deposit account agreement, and disclosure statements. Document at least five instances of

fees and under what circumstances those fees are charged. Ask the students,

– Do you think the fees and fee conditions are reasonable? Be prepared to share your

findings with the class.

Point out the value of knowing the fees charged for certain types of accounts and the

circumstances under which those fees can be applied. It’s also important to know the different

bank policies that can apply when depositing funds or withdrawing funds.

Give students three to five minutes to work independently or in pairs to complete Activity 5.6:

What Do They Offer? as they locate and document different fees and the circumstances under

which fees are incurred. If time allows, have the students report out on one or two findings.

Ask the class to identify fees they can avoid and some strategies they can use to avoid them.

NOTES: Some fees imposed by financial institutions (bounced check fees, ATM fees, etc.) can be

avoided whereas other (monthly account fees, check printing fees, etc.) cannot. You may need to

discuss the various fees and when it makes sense to pay a fee for the services provided by a

financial institution and when it does not.




Optional: If payday lending is allowed in your state, consider facilitating this

learning task to inform students of fees and how payday lending works. As of

January 2015, 18 states and the District of Columbia prohibit extremely high-cost

payday lending. Source: Consumer Federation of America, PayDay Loan Consumer

Information, www.paydayloaninfo.org.

In some states, consumers use payday lending businesses to receive cash

advances when cash is needed before the next payday. Consumers give the

payday lender a post-dated check in return for cash. The amount borrowed is

usually expected to be repaid, along with fees and interest, when the next

paycheck is received.




Use this slide to illustrate the high costs of payday loans. Note that the interest

shown is for a two- or four-week loan period and should be converted to an

annual percentage rate before calculating the interest. For the examples, use

the simple interest formula. (Note: Calculation notes are provided in the

Payday Lending Task document.)

7


©2014 National Endowment for Financial Education | www.hsfpp.org

High School Financial Planning Program


Guide the students to think about convenience factors and user fees when

deciding where they will use financial services. Challenge the students to

create a mnemonic device that teens or young adults can use as a memory aid

when they are deciding where to cash checks, borrow cash, make payments,

etc. The mnemonic should include at least five criteria to consider. (Mnemonic

suggestions: acronym, limerick, graphic icons, or memorable phrases.)

As time allows, arrange for students to verbally or visually share their

mnemonic tools. Point out that these will be useful as they complete the

challenge activity.




Assign the students to independently complete Challenge 5-B: Which is Best

for Me?

Review the directions with the students. Tell students to perform this exercise

even if they already have an account with a bank or credit union as an exercise

to make sure it is the best personal fit. Provide guidance to students as they

complete the activity. Encourage the students to include their own criteria for

comparison.

You may have students collect information from different financial service

providers prior to this activity.



Ask the students to reflect on where they currently keep their money and to

analyze the situation based on what they have learned about financial service

options.





STUDENT LEARNING PLAN



High School Financial Planning Program June 2014

OVERVIEW

Travel a few miles from your home, and you will see

many places where you can cash a paycheck, open a

savings account, or get a money order. It can be to

your advantage to choose a bank or credit union for

your routine business so you have a trusted place to

turn to when you’re ready for a credit card or loan. But

there may be times when you choose to use services

provided by other businesses.

In this lesson you will learn about the businesses that

provide financial services. Use what you learn to be

informed about fees and customer service options

when deciding where you conduct your business.

LEARNING TASKS These tasks match pages 25-30 in Student Guide 5.

__ 1. Brainstorm a list of personality characteristics and traits you look for in a good friend. Focus on actions

or characteristics and not on how that person would look.

__ 2. What’s the difference between a bank and a credit union? If you don’t have a bank account, where

can you cash your paycheck? Work with a team to learn about a business that provides financial

services, and share what you learned with your classmates.

__ 3. It would have helped Jason to better understand the fees a bank charges for services and penalties. It

should never be a mystery! Review the sample fee schedule or disclosure statement. Document at

least five examples of fees and under what circumstances those fees are charged.

Learn about the services a business provides as you complete Activity 5.6: What Do They Offer?

__ 4. With so many options, what suggestions do you have for someone who needs to use financial services?

Recommend criteria that a teen or a young adult should consider when deciding on a provider.

__ 5. To make sure a credit union is the best fit for her, Brianna should really use the DECIDE steps to

evaluate her needs and to compare financial service options. Complete Challenge 5-B: Which is

Best for Me? to select a service provider that is right for you.

TAKING IT HOME

Planning on travelling? To visit new

places? Or perhaps moving away for

college? Gather information about the

variety of ways you and your family can

access cash or make purchases while

on the road.

FURTHER STUDY

Consider your future needs for financial services! Which financial

services would you need for different life events? Create criteria you

would use to select an appropriate financial service or business to

help address the financial needs for any of the following life events:

college education, starting a business, getting married, having

children, buying a home, or retiring.

LEARNING OUTCOMES

In this lesson you will learn about services

provided by various financial service

providers. Along the way you will:

Give examples of services provided by

different types of financial institutions.

Review guidelines for using banking

services.

Discuss criteria to consider when

choosing where to use banking services.

Use what you learn today to select a

financial service provider.

.

Activity 5.6: What Do They Offer?

©2014 National Endowment for Financial Education www.hsfpp.org Activity 5.6: What Do They Offer?


NAME: DATE:

Directions:

Visit the website of a financial service provider in your community to learn about services they

provide for customers.

Name of financial service provider:

What are the minimum balance requirements for checking and savings accounts?

Checking:

Savings:

What is the current interest rate earned on a basic savings account?

Banks offer other types of services such as safe deposit boxes for customers to store valuable

documents. List at least two other types of non-account services that the provider makes available to

customers, either for a fee or at no cost.

1.

2.


©2014 National Endowment for Financial Education www.hsfpp.org Task: Payday Lending


Teacher Notes

If payday lending is an option in your state, consider facilitating this activity to inform students of fees and

how payday lending works. As of January 2015, 18 states and the District of Columbia prohibit extremely

high-cost payday lending.

Source: Consumer Federation of America, PayDay Loan Consumer Information, www.paydayloaninfo.org.

[Slide 6] Display the Payday Loan slide as you explain how payday lending works. In some states,

consumers use payday lending businesses to receive cash advances when cash is needed before the next

payday. Consumers give the payday lender a post-dated check in return for cash. The amount borrowed is

usually expected to be repaid, along with fees and interest, when the next paycheck is received.

[Slide 7] Use the Payday Loan … Good Choice? slide to have the students calculate the cost of payday

loans. Note that the interest shown is for a two- or four-week loan period and should be converted to an

annual percentage rate before calculating the interest. For these examples, use the simple interest formula.

Calculation Notes - Payday Loan Calculations

Convert short-term interest to annual percentage rate (APR):

15% @ 2 weeks x 26 = 390% APR

12% @ 4 weeks x 13 = 156% APR

10% @ 2 weeks x 26 = 260% APR

[or use ratios for conversion, for example: 2 weeks/52 weeks = .15/X]

Convert short-term to percentage of year for interest formula:

2 weeks/52 weeks = .038462 year

4 weeks/52 weeks = .076923 year

Use the simple interest rate formula to calculate interest owed plus principal (round up to nearest dollar):

Principal x Rate (annual) x Time (year) = Interest Principal + Interest = Total Amount Due

$ 500 x 3.9 x .038462 = $ 75 $ 500 + $ 75 = $ 575 due in two weeks

$ 300 x 1.56 x .076923 = $ 36 $ 300 + $ 36 = $ 336 due in four weeks

$ 1,000 x 2.6 x .038462 = $100 $1,000 + $100 = $1,100 due in two weeks

Extension

Brainstorm alternate options rather than using an expensive cash-advance option. Potential responses:

– Build up an emergency/contingency fund to cover unexpected short-falls rather than borrow money.

– Increase income or reduce expenditures to prevent need to pay expenses from future paychecks.

– Seek less expensive forms of loans such as local bank.

Ask students how much a person will pay in interest and fees if s/he was in the habit of borrowing

$500 from the payday lender every two weeks for the entire year.

Answer: 26 instances of borrowing at $75 interest owed each time = $1,950 total interest paid.

As time allows, ask students for ideas on how that amount can be put to better use.

http://www.paydayloaninfo.org/


©2014 National Endowment for Financial Education www.hsfpp.org Task: Payday Lending


NAME: ________________________________________ DATE: _____________

Directions:

1. For each amount of money borrowed (principal) at a payday lending business, calculate the annual

percentage rate (APR) and total amount owed at on the date the loan is due to be repaid.

Principal Time Interest APR Total Owed

$500 (rent payment) 2 weeks 15%

$300 (car loan

payment) 4 weeks 12%

$1,000

(pay household and

credit card bills)

2 weeks 10%

2. Brainstorm at least two other options rather than using an expensive cash-advance option.

3. How much will a person pay in interest and fees if s/he was in the habit of borrowing $500 from the

payday lender every two weeks for the entire year? How can that amount be put to better use?

Task: Take Money on the Road

©2014 National Endowment for Financial Education www.hsfpp.org Task: Take Money on the Road


NAME: DATE:

Directions:

1. Think of a place you or your family may travel to within the next five years.

Travel Location:

2. Now research the fees, convenience, interest rate, exchange rate surcharge, and availability of

each of the following options.

Consideration Credit Card Credit Card

Cash Advance Prepaid

Credit Card Debit Card Cash

Fees

Interest Rate

Exchange

Rate

Surcharge

Spending

Limit

Availability

Convenience

Advantage

Disadvantage

3. Based on your research, which option would you use to access cash or make purchases on your

future trip and why?


©2014 National Endowment for Financial Education www.hsfpp.org Challenge 5-B: Which is Best for Me?


NAME: DATE:

For this challenge task, use what you have learned in Lesson 1-3: Decisions and Lesson 5-4: Financial

Service Providers to make a thoughtful decision about working with at least one financial provider for

your banking needs. Specifically, use the DECIDE model to select a financial institution with services

that are right for you. Make sure to review the required criteria as you are comparing options.

Directions:

1. Apply what you have learned about financial providers and criterion-based decision making as you

complete this challenge. Preview the criteria listed in the Scoring Guide to plan your work.

2. Of the types of financial providers discussed in Module 5, what are the specific features and

criteria that would help you decide where to do your banking? Why? Use the DECIDE steps to

choose financial services and tools that are most useful to you.

3. Use the chart below or create a separate document to summarize your decision-making process.

Review the six DECIDE action steps to guide your work. Your actions should take into consideration

your current circumstances and values.

3. Self-assess your work using the Scoring Guide.

DECIDE Steps My Situation

1 Define your goal.

2 Establish your criteria.

3 Choose three good

options.

4 Identify the pros and

cons of the options.

5 Decide what’s best.

6 Evaluate the results.


©2014 National Endowment for Financial Education www.hsfpp.org Challenge 5-B: Which is Best for Me?


NAME: DATE:

Required Criteria Status

Content

1. In one sentence you state what you want to achieve as a result of the

decision-making process. acceptable not acceptable

2. Outcome involves a decision about using at least one type of financial

service provider or a combination of several providers. acceptable not acceptable

3. You justify how the decision and outcome relates to your current

circumstances and values. acceptable not acceptable

4.

Summary lists at least three criteria for an acceptable outcome,

including the features and services you absolutely must have as well as

what you would like to have or will not accept.

acceptable not acceptable

Option Status Rating Key: “A” = Acceptable / “NA” = Not Acceptable Option

A

Option

B

Option

C

5. Summary includes details about three possible options, including

specific features and services.

6. You devise a way to illustrate how well each option matches your criteria.

7. You point out the solution that you have chosen. acceptable not acceptable

8. You justify why the chosen option was selected. acceptable not acceptable

9. You choice is logical based on the known circumstances, stated criteria,

and potential to achieve the desired outcome. acceptable not acceptable

10. You summarize what you do and don’t like about your choice and justify

any modifications that were made in the purpose, criteria, or solutions. acceptable not acceptable

General

11. Content is clearly stated with distinct detail. acceptable not acceptable

12. Documentation is neat and easy to read. acceptable not acceptable

13. Information about each option is accurate or can be verified. acceptable not acceptable

Feedback: Score: _______ /_______

Documents

Lesson 5-4: Financial Service Providersmaplp.weebly.com/uploads/1/3/9/4/13949900/hsfpp... · 2019-09-02 · Lesson 5-4: Financial Service Providers ©2014 National Endowment for Financial