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Integrating Career Awareness into the ABE/ESOL Classroom - SABES

Integrating Career Awareness into the ABE/ESOL Classroom - SABES

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L e s s o n 2 3<br />

Dealing with Credit Issues<br />

Learning Objective<br />

To help students learn what credit is and how to manage it<br />

Materials Needed<br />

credit card mailings, guest speaker on credit counseling, handout:<br />

“Manage Your Credit Reports”<br />

Vocabulary<br />

credit, debt, interest rates, introductory period, incentives, credit record, credit counseling<br />

SCANS Competencies<br />

Basic Skills: Reading; Speaking<br />

Thinking Skills: Creative Thinking<br />

Instructions for Conducting <strong>the</strong> Activity<br />

Bring in examples of credit card direct mailings for <strong>the</strong> class to review. Distribute a copy of one direct mailing and with<br />

<strong>the</strong> class, review <strong>the</strong> information to answer <strong>the</strong> following questions:<br />

• What is <strong>the</strong> interest rate for this card?<br />

• Does it have an introductory period?<br />

• Does <strong>the</strong> interest rate change over time? When and under what circumstances?<br />

• Does <strong>the</strong> offer promise any incentives or gifts?<br />

• What are you charged if you don’t pay off <strong>the</strong> balance each month? How is it calculated?<br />

Wrap-up <strong>the</strong> discussion by noting that credit cards often have hidden costs and that it can be difficult to pay off cards.<br />

The amount of money that we “carry” on a credit card balance is called “debt.”<br />

Explain that <strong>the</strong> amount of debt you carry can make it difficult to save for o<strong>the</strong>r needs and it affects your credit<br />

record. A credit record rates your payment history on credit cards, loans, and bills. To find out your credit history, you can<br />

order a free credit report once a year from each of <strong>the</strong> three major credit reporting companies. Distribute “Manage<br />

Your Credit Records” handout. Review it and encourage students to order <strong>the</strong>ir reports.<br />

Tell students that for <strong>the</strong> next class, <strong>the</strong>re will be a guest speaker on credit counseling. Brainstorm a list of questions<br />

<strong>the</strong>y would like to ask. Send this list to <strong>the</strong> guest speaker ahead of time.<br />

<strong>Integrating</strong> <strong>Career</strong> <strong>Awareness</strong> <strong>into</strong> <strong>the</strong> <strong>ABE</strong> & <strong>ESOL</strong> <strong>Classroom</strong> | Section IV, Lesson 23: Dealing with Credit Issues | 175

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