Lesson
Foundations of Credit
Summary
Every time you swipe, tap, or sign is a promise to pay someone back later. This lesson introduces how borrowing works, why lenders charge interest, and what makes someone creditworthy.
Bellringer: The $200 Lending Decision
- A friend asks to borrow $200 and promises to pay you back in a month. Would you lend it?
- Cold call 2–3 students for their gut reaction, listening for themes of trust, track record, and income.
Instruction
- Define credit, interest, and creditworthiness.
- Explain the difference between loans and credit cards, and between credit and debt.
- Discuss how interest rates vary by borrowing type and borrower risk.
Activity: Borrowing Basics Article
- Read the Borrowing Basics: How Loans Work article
- Find 3 examples of how interest or repayment works.
Discussion: Borrowing as a Contract
- Contrast variable spending with contractual obligations.
- Push students beyond surface answers — require them to explain why a $400 car payment carries more risk than $400 in discretionary spending.
Wrap-Up & Assessment
- Explain the difference between credit and debt.
- Name two factors that influence creditworthiness.
| Est. Time | Activity | Description |
|---|---|---|
| 5 min | Bellringer: The $200 Lending Decision |
|
| 10 min | Instruction |
|
| 12 min | Activity: Borrowing Basics Article |
|
| 8 min | Discussion: Borrowing as a Contract |
|
| 10 min | Wrap-Up & Assessment |
|
Lesson Prep
Borrowing Basics: How Loans Work
Debt often carries a negative reputation, but borrowing can be a practical and even strategic part of managing your finances.
Class Presentation
Includes a 19-slide deck with teacher notes. Present from Banzai, download a PDF, or copy it to Google Slides.
Presentations, Ready to Go
- Built-in PresentationPresent full screen, straight from Banzai
- Copy to Google SlidesMake an editable copy for your class
- Download or PrintSave as a PDF or print
- Teacher NotesSlide-by-slide guidance, printable as one handout
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Foundations of Credit
Every time you swipe, tap, or sign is a promise to pay someone back later. This lesson introduces how borrowing works, why lenders charge interest, and what makes someone creditworthy.
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