Categories
Topic: Good Debt/Bad Debt
Reno is a young man not so different from other young people in that he loves to buy things. However, he needs to come up with a plan to be able to buy all the things he wants. An animated dialogue between Reno, Toki, Jesse, and Ima will introduce students to the activities.
Students will work through activities that will help them to understand the relationship between good debt and bad debt.
Learning Objectives
- Calculate interest
- Understand principles and interest
- Demonstrate an understanding of good and bad debt
Overview
Ever hear someone say, “Money burns a hole in his pocket”? Well that is how we can describe our young friend Reno. Reno loves to buy stuff. When Reno gets some money, he can’t wait to go shopping. The problem is that it takes him forever, because he just can’t make up his mind.
So many things to choose from, but not enough money to get them all.
But wait. Maybe there is a way to buy more. Sure you can. We have several names for it. We borrow, take a loan, charge it, sign a note, or even get a mortgage, but they all mean the same thing, we go into DEBT. Reno found out about this thing we call debt.
And once he knew that he could buy stuff now and pay for it later, he started thinking. He had had his eye on something for a long time. Something so cool he just had to have it. But, without enough money, he needed a plan. And then one
day…
Choices, Choices
Choose the better purchase using debt by circling the hand pointing to your preferred option: Good Debt or Bad Debt?