This task will help students appreciate the cost of credit and the implications of choosing to use credit.
Calculating with percentages, using a spreadsheet to model simple financial contexts.
The tasks are suitable for small group discussion and modelling using a spreadsheet. There is the opportunity for whole class debate around the costs of using credit cards and how to manage them.
There are ‘volunteer’ notes, a PowerPoint and a worksheet suitable for group exploration.
Students will need calculators and/or spreadsheets to calculate the cost of using credit.
Activity 15 includes a worksheet of more scenarios in which students can explore the cost of credit. Students could also investigate and compare credit cards from different providers. They could also compare saving with purchasing on credit.
From Your Financial Future level 3: Unit 5: Activity 14, developed by Tower Hamlets Business Education Partnership, sponsored by Bank of America Merrill Lynch, available at https://thebp.org/your-financial-future-level-3/