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Radical Math

Radical Math
Credit Cards 101:
Teaching Young People the
Truth about the Plastic Peril
Jonathan Osler
jonathan.osler@gmail.com
917.288.7364
DISCLAIMER:
This lesson/unit should be considered a working draft. While it may not necessarily indicate the mathematical
standards that were used in its development, such standards were consulted. It is the intention of the author that
anyone considering using this lesson/unit should consult their local math content standards, and should make any
changes to the materials as they see appropriate for their classroom and students. If you have any suggestions,
comments, critiques, ideas, etc, for how to make this lesson/unit stronger, I welcome your feedback. In addition, if
you use any or all of this lesson/unit in your classroom, please let me know about your experience.
Jonathan Osler, 2006 (Working Draft)
Day 1: Determining students knowledge about financial literacy
Give students JumpStart Coalitions Personal Finance Quiz (from www.jumpstart.org. !ou can
download t"is from t"e www.#adical$at".org we%site %& searc"ing for Financial 'iterac&
Surve&.
Day 2: Introductory Activity
Prep (or)
* !ou will need to compute t"e class scores on t"e Jumpstart Personal Finance Quiz. +"e answers can
%e downloaded from www.#adical$at".org
$aterials
* Poster paper
* $ar)ers
* +ape
1. Results of Personal Finance ui! "# $ 1% min&
a. ,iscuss wit" t"e students "ow t"e& did as a group compared to t"e national averages.
Questions &ou could as) t"em-
. Why do you think our class did better/worse than other students?
. What do you think these results indicate about your understanding of personal
finance?
2. 'redit 'ard Introductory Activity "1% min&
a. +"e goal of t"is activit& is to see w"at students )now and dont )now a%out Credit
Cards/
%. Put up poster paper wit" t"e following 0uestions. Give t"em 12 minutes to wal) around
t"e room and write eit"er a response to t"e 0uestion3 or a response to someone elses
answer.
. What is a credit card?
. Who can get credit cards?
. What are the advantages to having a credit card?
. What are the disadvantages to using a credit card?
. What should you look for when trying to choose the right credit card?
. What do I want to know about credit cards?
(. Discussion "1% min&
a. (al) around t"e room3 and %riefl& read t"e comments from eac" poster. 4s) follow.up
0uestions to clarif& responses.
)ome*ork:
* #ead 5$o $one&3 $o Pro%lems6 (availa%le at www.#adical$at".org and 5Credit Cards 4im
$ar)eting 4t !oung Customers6 (see %elow and answer 0uestions for 7(
+'R,DI- 'ARD './PA0I,1 AI/ /AR2,-I03 A- 4.503 '51-./,R16
8& Carol Fre&3 The News & Observer
'ong %efore 4lan 8roug"ton got "is "ig" sc"ool diploma3 "e got a Capital 9ne :isa card. 'i)e man& of
"is classmates3 8roug"ton "ad received two or t"ree credit.card offers %efore "is 1;t" %irt"da& last
9cto%er.
<Since = turned 1;3 = get t"em all t"e time3< "e said.
Parents3 consumer advocates and now some mem%ers of Congress are e>pressing alarm at w"at t"e& see
as a ta)e.no.prisoners mar)eting of credit cards to &ounger and &ounger teens.
9ne prime e>ample is Capital 9ne of Falls C"urc"3 :a.3 among t"e largest credit.card companies in t"e
world. Capital 9ne %egan a full.scale sales effort aimed at students 1? to 1; last summer.
4nd in 4pril3 a surve& of @32AA students nationall& found t"at 1@ percent of t"ose 1@ to 1B "ave .. and
use .. credit cards in t"eir own names.
For teenagers w"o see gold in t"at plastic3 credit.card de%t can %ecome a lead weig"t t"at scares awa&
future emplo&ers and lenders.
<= interviewed a )id w"o started college wit" a CD3222 de%t3< said #o%ert $anning3 a Georgetown
Eniversit& sociologist w"o "as studied t"e credit.card mar)et for five &ears. <(eFre tal)ing a%out ruining
studentsF lives forever "ere.<
Credit.card companies sa& t"e& are after %rand lo&alt& w"en t"e& mar)et to teenagers3 and all %ut a
fraction of teens "andle de%t as well as an& adult. +o reduce t"at fraction3 t"e companies "ave developed
educational programs for parents and sc"ools.
FI0DI03 *A41 -. 3,- 'ARD1
'i)e 8roug"ton3 more students are arriving on college campuses wit" credit cards ever& &ear- 1D percent
in 1BB;3 compared wit" 11 percent in 1BBA3 according to $anning.
<+"e credit.card mar)eters sign "ig" sc"ool )ids at college fairs3< $anning said. <+"e& get paid %& t"e
num%er of applications t"e& turn in.<
,etermined students will just )eep sending in applications until one gets t"roug"3 "e said.
7ig" sc"ool students sa& t"e& find applications on t"e =nternet3 at mall stores offering tedd& %ears or
discounts in return for appl&ing3 and in t"eir own mail %o>es.
For Jenn& 'am3 a rising junior3 credit.card applications "ave %een eas& to come %& since s"e joined a
music clu% at age 1A. <= was in a C, clu%. ... +"e& donFt as) &ou "ow old &ou are as long as &ou pa&
&our %ills3< s"e said.
4lt"oug" s"e never mailed an& of t"ose credit.card applications3 'am said s"e can readil& understand
teens w"o do. <!ouFre 1D3 and &ou get somet"ing t"at sa&s &ouFve got a t"ousand dollars3< s"e said.
<!ouFre not telling me &ouFre not going to t"e store.<
)ARD,R PI-'),1 I0 '.77,3,
("en teens get into %ig trou%le wit" credit.card de%t3 itFs usuall& at college w"en t"e&Fre on t"eir own.
4nd on college campuses of t"e FB2s3 t"e& find %an)s giving awa& ever&t"ing from +.s"irts to sets of
stea) )nives to students w"o fill out credit.card applications. Colleges are in ca"oots wit" t"em3
$anning complained.
=n a June ; report for t"e Consumer Federation of 4merica3 $anning rela&ed t"e stor& of a Eniversit& of
9)la"oma fres"man named +ris"a Jo"nson w"o applied for t"ree credit cards during "er first semester ..
and c"arged up to "er credit limit on all t"ree. 4fter losing "er part.time jo% in ,ecem%er 1BBG3 s"e
committed suicide in "er dorm room wit" "er c"ec)%oo) and C@3D22 wort" of %ills spread out on "er
%ed.
4lt"oug" suicide is rare3 $anning said %an)ruptc& and dropping out of sc"ool to wor) off credit.card
de%t are not.
From: www.iccu.com
Mo Money, Mo Problems
According to the article, what percent of people of color in the United State are living with some sort of
financial crisis?
Kat Aaron, the woman who works for RYSE, suggests that people of color dont have as much access to
banks as white people do and instead get their checks cashed at check-cashers and pawnshops. Why
does she refer to this as a separate and unequal system?
Aaron also feels that while having good credit is very important, there are other larger issues for poor
people and people of color. What does she argue are these other issues?
Credit Cards Aim Marketing At Young Customers
According to a recent national survey, what percent of teenagers in the US have a credit card with their
own name on it?
What are some sneaky methods that companies will use to reach young people in order to get them to
sign up for credit cards?
Day (: Introduction to 'redit 'ards8 P- II
1. Introduction
a. Start %& readingHparap"rasing t"e following to t"e class-
7ave &ou ever stood %e"ind someone in line at t"e store and watc"ed t"em s"uffle t"roug" a stac) of
w"at must %e at least 12 credit cardsI Consumers wit" t"is man& cards are still in t"e minorit&3 %ut
e>perts sa& t"at t"e majorit& of E.S. citizens "ave at least one credit card .. and usuall& two or t"ree.
$an& find it "ard to resist using t"e old <plastic< for impulse purc"ases or %u&ing t"ings t"e& reall& canFt
afford. +"e num%ers are stri)ing- In 19998 American consumers c:arged about ;1.2 trillion on t:eir
general<=ur=ose credit cards.
4 8it of 7istor&
4ccording to Jnc&clopedia 8ritannica3 t:e use of credit cards originated in t:e 5nited 1tates during
t:e 192%s3 w"en individual companies3 suc" as "otel c"ains and oil companies3 %egan issuing t"em to
customers for purc"ases made at t"ose %usinesses. +"is use increased significantl& after (orld (ar ==.
+"ere are %asicall& four t&pes of credit cards-
1 . 8an) cards3 issued %& %an)s (for e>ample3 :isa3 $asterCard and ,iscover Card
@ . +ravel and entertainment (+KJ cards3 suc" as 4merican J>press and ,iners Clu%
L . 7ouse cards t"at are good onl& in one c"ain of stores (Sears is t"e %iggest one of t"ese3 followed %&
t"e oil companies3 p"one companies and local department stores.
A . !ou ma& also %e familiar wit" w"at is )nown as an affinit& card. +"is card .. t&picall& a $asterCard
or :isa .. carries t"e logo of an organization in addition to t"e lenderFs em%lem. Esuall&3 t"ese
card"olders derive some %enefit from using t"e card .. ma&%e fre0uent.fl&er miles or points toward
merc"andise. +"e organization solicits its mem%ers to get cards3 wit" t"e idea of )eeping t"e groupFs
name in front of t"e card"older. =n addition to esta%lis"ing %rand lo&alt&3 t"e organization receives some
financial incentive (a fraction of t"e annual fee or t"e finance c"arge3 or some small amount per
transaction3 or a com%ination of t"ese from t"e credit.card compan&.
@. Debt $ #esearc" current information a%out t"e amount of de%t different groups "ave %&
searc"ing t"e data%ase on www.#adical$at".org.
4 useful we%site a%out de%t is- "ttp-HHwww.demos.orgHpageLG.cfm
4lso3 see- "ttp-HHwww.demos.orgHpu%?DA.cfm
(. )ow a 'redit 'ard *orks
("en &ou use a credit card3 &ou are reall& %orrowing mone& from a %an)/ +"e %an) pa&s t"e store/
at t"e end of t"e mont" t"e %an) sends &ou a %ill and &ou pa& t"em %ac)/
("at is t"e advantage for t"e %an)I +"e& c"arge &ou mone& to %orrow mone& from t"em. +"is is called
5=nterest.6 =nterest is %ased on somet"ing called an APR $ Annual Percentage Rate. +"e 4P# is used
to calculate w"at percent of &our de%t &ou pa& %ac) to t"e %an) eac" mont". 4nnual means it is a rate
t"at is given for a 1@.mont" period. 8& dividing t"e 4P# %& 1@3 &ou can determine w"at t"e mont"l&
percent &ou will %e c"arged as interest.
>. Activity: +)ow /uc: *ill -:ey Pay?6
a. 7ave students wor) on t"is wor)s"eet for t"e remainder of class.
Marlon charges $100 to his Visa card with a 12% APR. How much total will he have to pay at the end
of the month?
Frank charges $250 to his Mastercard with an 18% APR. How much will he have to pay at the end of
the month?
Rosie charges $80 onto her American Express card with an APR of 9%. How much will she owe at the
end of the month?
Marjorie has put $500 into a Savings Account that pays her a 2% annual interest. How much will her
$500 be worth after one month? How much will her $500 be worth after 2 months?
Day >: 'redit 'ard -erminology
1. Review )*
2. /ore Details About )ow a 'redit 'ard *orks
!esterda& we tal)ed a%out 4P# M "ow at t"e end of eac" mont" t"e compan& or %an) will c"arge
&ou interest on t"e mone& &ou spent. 8ut3 do %an)s alwa&s ma)e &ou pa& t"em %ac) t"e full
amount eac" mont"I N9
+"e& "ave w"at is called a /inimum /ont:ly Payment $ t:e smallest amount of money you
need to =ay on your credit card bill eac: mont:. ((rite t"is on t"e %oard.
* 4s)- Why might banks only ask you to pay back a small amount each monthI
* 4nswer- 8ecause if &ou roll over some of &our de%t3 t"e& can add on interest eac" mont" and
)eep on c"arging &ou interest for a longer period of time.
(. 'lass Activity
a. Put on t"e %oard3 or into a "andout-
b. 5!ou c"arge CD22 on a credit card wit" a 1@O 4P#3 and plan on onl& pa&ing t"e
$inimum c"arge eac" mont". +"e minimum mont"l& pa&ment is CD2. 1 7ow muc"
would t"e first %ill %e forI @ 4fter &ou paid off t"e first mont"3 "ow muc" mone&
would &ou still oweI L 7ow muc" would t"e second %ill %e forI A 4fter &ou pa&
t"e second mont"s %ill3 "ow muc" would &ou still oweI/ D =f &ou were to onl& pa&
t"e minimum c"arge- a 7ow man& mont"s would it ta)e &ou to pa& off t"e de%tI
11/ % 7ow muc" total mone& would &ou spendI ;#29.>9/ c 7ow muc" interest
would &ou spendI 29.>9/ d 7ow muc" more mone& in total would &ou spend
pa&ing t"e minimum t"an if &oud paid t"e CD22 in cas"I ;29.>9
7ere is a c"art students could ma)e to answer t"ese 0uestions
After
/ont:@ 4ou .we@ 1A interest
1o you now
owe@ And you =ay@
1o you now
owe@
1 D22.22 D.22 D2D.22 D2.22 ADD.22
2 ADD.22 A.DD ADB.DD D2.22 A2B.DD
( A2B.DD A.12 A1L.?D D2.22 L?L.?D
> L?L.?D L.?A L?G.@; D2.22 L1G.@;
# L1G.@; L.1G L@2.AD D2.22 @G2.AD
B @G2.AD @.G2 @GL.1? D2.22 @@L.1?
C @@L.1? @.@L @@D.LB D2.22 1GD.LB
D 1GD.LB 1.GD 1GG.1A D2.22 1@G.1A
9 1@G.1A 1.@G 1@;.A@ D2.22 G;.A@
1% G;.A@ 2.G; GB.@2 D2.22 @B.@2
11 @B.@2 2.@B @B.AB @B.AB 2.22
29.>9 #29.>9
Day # $ 'redit 'ard -erms
Prep (or)
* !ou will need to find a credit card offer in t"e form of a pamp"let or advertisement. 4n& credit card
will wor)3 %ut ma)e sure to include t"e 5fine print6 w"en p"otocop&ing t"e pamp"let for students.
1. 'redit 'ard -erms "2# minutes&
a. Give students t"e Credit Card Glossar&
%. 7ave t"em define3 using t"eir own words3 12 different terms
c. Go around t"e room3 and "ave students s"are t"eir definitions. Clarif& an&
misconceptions or places w"ere students are confused.
2. 'redit 'ard A==lications
a. Give out t"e sample credit card offer3 and "ave t"e assignment called 5Enderstanding a
Credit Card 4pplication6
%. 7ave students wor) on t"is assignment3 tr&ing to find information a%out t"e credit card
from t"e application &ou gave t"em.
)omework
Finis" assignment from class
Affinity Card - A card offered in conjunction with an organization and a credit
card issuer. A certain percentage of the finance charges generated from
cardholders are donated to the charity or organization featured on the card.
Air Miles - Miles that can be used for free travel or other discounts, and are earn
each time you use your card. Most major U.S. Airlines offer these cards. Airline
Miles are often referred to as re!uent lyer Miles.
Annual Fee - A fee charged by the card issuer for being a card holder. "his type
of fee is most commonly associated with fre!uent flyer credit cards or cards
designed to help ou rebuild your credit.
Annual Percentage Rate (APR) - "he yearly percentage rate of the finance
charge. "he annual percentage rate will be a fi#ed or variable rate. See $i#ed
%ate$ or $&ariable %ate$ for descriptions.
Average Daily Balance - "he average account balance for a billing cycle. 'our
finance charge will be based on this balance. 'ou can figure out your average daily
balance by adding the balances of each day of the cycle together and then divide
them by the number of days in the cycle.
Balance Transfer - "he act of transferring the whole or partial balance of one
credit card to another credit card. "his is usually done if the balance is being
transferred to a card with a lower annual percentage rate.
Balance Transfer Fee - A fee that may be charged to cardholders for transferring
a balance from one card to another.
Billing Cycle - "he days between the last statement and the current statement.
(illing cycles generally range from )* to +) days.
Cash Advance - ,btaining cash from the card instead of using it to ma-e a
purchase. "he .race /eriod does not apply to cash advances. See $.race /eriod$
for more information.
Cash Advance Fee - A fee charged for using your card to obtain cash. "he fee
will be a percentage of the transaction or a flat fee. 0igher interest rates generally
apply to cash advances.
Charge Card - 1ifferent from a credit card as they generally have an annual fee
and re!uire the balance to be paid monthly.
Debit Card - A card issued by the cardholder2s ban- that may be used to ma-e
purchases or get cash from A"Ms. 3ach purchase will deduct money from the
cardholder2s chec-ing account and wor-s much li-e a chec-.
Fair Credit Billing Act - An Act passed by 4ongress in 5678 to help cardholders
resolve billing problems with issuers. "he Act gave cardholder certain rights when
dealing with credit card issuers.
Finance Charge - "he amount of interest charged to an account for the billing
cycle.
Fixed Rate - A fi#ed annual percentage rate of the finance charge.
Frequent Flyer Miles - Miles that can be used for free travel or other discounts,
and are earn each time you use your card. Most major U.S. Airlines offer these
cards. re!uent lyer Miles are sometimes referred to as Airline Miles.
!ld Card - A credit card issued by issuers that may include added benefits not
offered with a 4lassic or Standard credit card. "he credit line is generally between
9),*** and 98,***.
race Peri!d - "he time allowed to pay your balance without being charged a
finance charge. Usually )8 to +* days.
"nterest Rate - "he yearly percentage rate of the finance charge. "he interest
rate will be a fi#ed or variable rate. See $i#ed %ate$ or $&ariable %ate$ for
descriptions. "he :nterest %ate is also -nown as the Annual /ercentage %ate
;A/%<.
"ntr!duct!ry Rate - A low interest rate offered for a limited time, usually for the
first + to = months on being a cardholder. 4ommonly -nown as a $"easer %ate$ for
persuading cardholders to apply.
#ate Pay$ent Fee - A fee charged to a cardholder2s account once a payment is
overdue.
Mastercard - An institution that licenses it2s brand to member ban-s for use on
credit cards and other products.
Mini$u$ M!nthly Pay$ent - "he minimum amount of the balance a cardholder
is re!uired to pay to -eep the account in good standing.
%ver Credit #i$it Fee - A fee charged if your balance e#ceeds your credit limit.
Peri!dic Rate - "he interest rate of a specified period of time, usually referred to
as a monthly periodic rate or daily periodic rate.
Pre&A''r!ved - A person who has passed the preliminary screening for the credit
card. "he person will still need to have their credit chec-ed.
Platinu$ Card - Usually offered to people with higher incomes and a good credit
history. "his card has a minimum credit limit of 98,*** and may include member
benefits.
Pri$e Rate - "he lending rate set by the ederal %eserve to ban-s. 4urrently
6.8>
Rebate Card - Allows a cardholder to earn points or money to get cash,
merchandise, or services for using the card.
(ecured Card - A card that is secured by a savings account opened with the
issuer. "he card is designed for people who are loo-ing to rebuild their credit, but
are having trouble getting an unsecured card. See $Unsecured 4ard$ for details.
(tandard Card - "he Mastercard version of a basic credit card. .enerally has a
lower credit limit. "he &isa version is a 4lassic 4ard.
Titaniu$ Card - Usually offered to people with higher incomes and a good credit
history. "his card has a credit limit above the /latinum level and may include
member benefits.
Truth in #ending Act - A law re!uiring lenders to provide information giving
borrowers the ability to compare one loan to another.
)nsecured Card - A credit card that is not secured by collateral. Unsecured cards
are the majority of cards issued.
*ariable Rate - A rate that can increase or decrease with the changes of the
/rime %ate or ?ondon :nterban- ,ffer %ate ;?:(,%<.
*isa - An institution that lincenses it2s brand to member ban-s for use on credit
cards and other products.

Name PPPPPPPPPPPPPPPPPPPPP
Ese t"e glossar& t"at was passed out to define eac" of t"ese terms in &our own words.
Annual Fee:
Finance ':arge:
'as:<Advance and 'as:<Advance Fees:
3race Period:
Annual Percentage Rate "APR&:
Interest Rates:
FiEed Rate:
Fariable Rate:
Introductory Rate:
5nderstanding a 'redit 'ard A==lication
Name of Credit Card- PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP
4nnual Fee- PPPPPPPPPPPPPPPPP Finance C"arge- PPPPPPPPPPPPPPPPP
Cas".4dvance Fees- PPPPPPPPPPPPPPPPP Cas".4dvance 4P#- PPPPPPPPPPPPPPPPP
Grace Period- PPPPPPPPPPPPPPPPP
9ver.Credit 'imit Fee- PPPPPPPPPPPPPPPPP
4nnual Percentage #ate (e>plain %elow-
8onus giftsI
8ased on t"e information a%ove3 w"at do &ou t"in) of t"is particular Credit CardI =s it a good offerI
Day B: 'om=aring 'redit 'ards
Prep (or)
* !ou will need to find D different credit card offers3 ideall& t"at "ave some )e& variations %etween t"em
M for e>ample3 some t"at are from a %an)3 ot"er t"at are issued %& a compan& li)e +"e Gap. = used
offers t"at were sent to m& "ouse (and crossed off an& )e& information on t"em. Sometimes credit card
offers "ave plastic cards attac"ed t"at loo) li)e real credit cards. Students will find t"ese interesting to
loo) at and discuss.
1. 'om=aring # .ffers
a. Give students copies of D different credit card offers.
%. 8rainstorm a list (as a class of t"e different categories t"e& would want to loo) at to
compare cards3 and write t"em on t"e %oard.
c. 7ave students compare t"e D cards t"e& are given.
)omework
1 Finis" t"e assignment from class
@ 'oo) t"roug" a newspaper3 magazine3 etc3 and %ring in an advertisement for some item &ou mig"t
li)e to %u&. +"is item s"ould cost %etween C122 and CD22.
Day C: *:at *ould it 'ost?
Prep (or)
8ring in a newspaper in case students forgot to do t"eir "omewor)/ 9r %ring in several advertisements
for different products
1. Review Assignment from yesterday
a. $a)e a c"art on t"e %oard of t"e different credit cards and t"e information a%out t"em for
eac" of t"e categories &oud pic)ed
2. Activity
a. First3 as) students to pic) w"ic"ever credit card t"e& t"in) is t"e %est. 9n a piece of
paper in t"eir note%oo)3 t"e& s"ould write one paragrap" a%out w"& t"e& t"in) t"at card
is t"e %est
%. Ne>t3 as) students to guess-
7ow man& mont"s it will ta)e to pa& off t"eir itemI
7ow muc" total mone& t"e& will pa& for t"eir itemI
c. Students s"ould wor) to answer %ot" of t"ese 0uestions. 7ave t"em imagine t"at t"e&
"ave a mont"l& minimum of C@2.
)omework
Finis" assignment from class
.=tional Day: 3ra=:ing A uadratic ,Guation
=f &ou would li)e3 &ou can ta)e a da& to "ave students ma)e a grap" of t"e different totals an item would
cost depending on "ow muc" mone& t"e& paid as t"e minimum eac" mont". 8ecause t"e overall cost
%ecomes e>ponentiall& smaller as t"e minimum pa&ment increases3 t"e resulting grap" is of a nicel&
s"aped curve. Students could ma)e t"e grap" to eit"er visualize t"e drastic difference t"at increasing t"e
mont"l& minimum would ma)e3 or to wor) on finding an e0uation for t"e line.
Day 9 < 'redit 'ard ProHect8 Introduction
1. .verview of ProHect
a. J>plain to students t"at t"e goal of t"is project is to design a pamp"let for ot"er students
in t"e sc"ool to inform t"em a%out Credit Cards.
%. +"e pamp"let will "ave two parts
i. Part 1- General information a%out Credit Cards
ii. Part @- #esults of a sc"ool.wide surve& a%out Credit Cards
2. Designing -:e 1urvey
a. ,iscuss w"at t&pes of 0uestions would allow us to do some t&pe of mat"ematical anal&sis
of t"e results/ 7elp t"em understand t"at 0uestions wit" a write.in response wont wor)
%ecause t"ere is no wa& to an& arit"metical calculations.
%. J>plain t"at t"e 0uestions need to %e a%le to %e answered from a series of c"oices/
+"ere are four wa&s of doing t"is-
i. $ultiple c"oice
ii. !esHNo
iii. +rueHFalse
iv. Questions t"at can %e answered wit" a num%er.
c. J>plain t"at t"ese 0uestions s"ould illicit-
i. ("at students doHdont )now a%out credit cards
ii. =nformation a%out t"eir current credit card status.
d. Possi%le 0uestions include-
,o &ou own a credit cardI !es or no.
7ow muc" mone& do &ou spend eac" mont" on &our credit cardI
$ultiple c"oice 0uestions a%out t"e definitions of various C.C. terms
e. 4s) eac" student to write one 0uestion t"e& would want to %e included on t"e surve&.
+"en discuss eac" answer to see if it meets t"e criteria from a%ove.
f. ,iscuss "ow &ou are going to give t"is surve& out to mem%ers of t"e sc"ool. !ou could
discuss surve& met"ods3 sample populations3 etc3 %ut it isnt crucial t"at students
understand t"ese concepts.
g. 4n e>ample of a student.written surve& is %elow
1tudent 1urvey: 'redit 'ards
Please take # minutes to fill out t:is s:ort survey we are using for a mat: class. -:ank you
for taking t:is seriously.
4ge PPPPPPPPPPPPPPPPPP GenderPPPPPPPPPPPPPPPPP
7ave &ou previousl& or presentl& "adH"ave a credit cardI Circle one-
!es No
=f &ou answered 5!es6/
/w"o pa&s t"e %illI Circle one- / "ow muc" do &ou spend eac" mont"I
!ou Someone Jlse
-:e following Guestions assess your knowledge about 'redit 'ards. Please select an
answer for eac: Guestion.
1. 7ow does 54P#6 affect &our credit card pa&mentI
4 =ts a %onus prize or gift
8 =t ma)es &our pa&ments faster and t"erefore &ou pa& less mone&
C =t is mone& t"at %uilds up over time so &ou pa& less on &our %ill
, =t is interest t"at %uilds up over time t"at adds more mone& onto &our %ill
@. 7ow old do &ou "ave to %e to own a Credit CardI PPPPPPPPPPPPPPPPPPPPP
L. !ou can get mone& out of an 4+$ mac"ine wit" a Credit Card. +rue or FalseI
A. 9ne difference %etween a ,e%it Card and a Credit Card is-
a 4 ,e%it Card is pre.paid w"ereas a Credit Card is paid at t"e end of eac" mont"
% 4 ,e%it Card is onl& for food and a Credit Card is for ever&t"ing else
c 4 ,e%it Card can %e used an&w"ere and a Credit Card cant %e
d 7aving a ,e%it Card is more e>pensive t"an "aving a Credit Card
D. ,o &ou consider a Credit Card to %e 5free mone&6I Circle one-
!es No
?. +"e ma>imum amount &ou can spend on a credit card is-
4 +"e amount c"anges %ased on w"at t"e compan& gives &ou
8 !ou can set an& amount
C CD22
, C13222
Day 1% $ Designing Part II of t:e Pam=:let
1. Designing t:e Pam=:let
a. Jac" mem%er of class (pro%a%l& in groups will need to write a different section.
%. Start %& %rainstorming w"at sections t"e pamp"let will need. +"is can %e p"rased to
students as a 0uestion- 5("at are t"e most important t"ings for ot"er people to
understand a%out credit cardsI6 ($a)e sure to %e t"oroug"3 %ut also %rief3 %ecause if
t"ere is too muc" information students mig"t %e confused on not interested in reading
it.
c. Possi%le sections include-
1. =ntroduction/ including facts a%out de%t3 teen C.C. use3 etc.
@. 9verview of "ow a CC wor)s.
ii. ,anger of using a CC/ J>ample of "ow e>pensive t"e& can %e wit" compound
interest
iii. ("at to loo) for in a credit card M w"at ma)es a card 5good6 or 5%ad6I
iv. 4dvantagesH,isadvantages of owners"ip
v. =mportant Credit Card terminolog&
2. *riting t:e 1ections
a. Students s"ould %rea) into groups and %egin writing t"eir section. ("en t"e& are
done3 t"e& can discuss t"eir wor) wit" ot"er people to determine w"at information is
missing3 w"at information is not needed3 etc.
Day 11: Analy!ing t:e 1urveys
Pre= *ork
=f &ou "avent figured out a wa& to "ave t"e surve&s completed3 &ou s"ould include an e>tra da& or two
%efore t"is activit& to wor) as a class getting surve&s completed. 9r3 if &ou can get t"e surve&s done
outside of regular class time3 proceed from "ere.
1. 9rganizing t"e ,ata
a. Create a c"art to record t"e data. +"is could %e done %& "and3 or using $icrosoft J>cel if
it is availa%le
%. 4fter t"e data "as %een recorded on a c"art3 create fre0uenc& ta%les for various groupings
%& age3 grade3 gender3 or su%groups li)e 1? &ear.old males or Fres"man females
@. (riting Questions to 4nswer wit" t"e ,ata
a. 'oo)ing t"roug" &our surve& or 0uestionnaire3 come up wit" 0uestions t"at &ou could
answer loo)ing at t"e Fre0uenc& +a%les.
%. J>amples could include- ("ic" age group is most li)el& to "ave a credit cardI ("at is
t"e average credit card de%t for students in t"e sc"ool w"o "ave a credit cardI
L. 4nswering t"e 0uestions
a. Ese t"e Fre0uenc& ta%les to answer t"e 0uestions &ouve written from a%ove.
%. 7ave students record t"e )e& findings M t"e answers to t"e 0uestions from a%ove t"at t"e&
t"in) are t"e most important3 interesting3 etc.
A. Grap"s
a. $a)e %ar grap"s and pie grap"s %ased on t"e results from t"e Fre0uenc& +a%les
D. 9ptional
a. !ou can loo) for correlations %etween different categories %& posing and t"en answering
0uestions suc" as- 5=s t"ere a relations"ip %etween w"at grade someone is in3 and "ow
muc" credit card de%t t"e& "aveI6
%. !ou can also do more comple> statistical wor) on t"e surve& to test t"e relia%ilit& of t"e
data3 alt"oug" t"is was not w"at t"is unit was intended to %e a%out.
Day 12: Portfolio
Part I $ 'redit 'ards
a) Explain everything you know about credit cards what they are, how they work,
advantages/disadvantages to having them, how to look for a good card, etc.
b) Discuss the huge problem of Credit Card debt in this country. What gets people
into debt? Why is being in debt so harmful for people? Please provide statistics
about credit card debt.
Part II $ 1urveys
Just like we did in class with the Credit Card survey, you now need to do your own
survey. Follow the steps we did in class to complete your own survey:
a) Pick a topic
b) Design a survey with at least 4 questions
c) Give the survey to at least 10 people
d) Come up with a system to record the results of your survey
e) Analyze the results of your survey
f) State the key findings of your survey
* For each of the steps listed above, you need to describe the thinking and reasoning
behind each step (explain what you did, and why you did it.)
** You must pick a topic that has a social justice theme. So, you cant survey people
about their favorite colors or TV shows. But you can survey them about their experience
with police, fast food eating habits, etc.