BORROWING MONEY

Explore the big idea of borrowing money and the associated concepts, competencies, and academic standards at various grade levels.

 

Big Idea & Essential Questions

Borrowing money has costs and benefits.

  • How do people decide when and how to use credit?

  • What rights and responsibilities do people have when borrowing money?

  • What impacts a person’s creditworthiness?

 

Core Concepts & Competencies

Within the Pennsylvania Personal Finance Instructional Framework, the big idea of borrowing money includes three core concepts. The competencies for each can be found below or download the PDF version which includes a correlation to the Pennsylvania Academic Standards.

  • Creditworthiness

  • Credit

  • Credit Rights and Responsibilities

 

High School (Grades 9-12)

Creditworthiness: Analyze the impact of a positive or negative credit history.

Credit: Analyze the total cost of a major purchase loan agreement using fixed and variable interest rates, calculated over time.

Credit: Develop a logical argument for using a specific credit product to make a purchase.

Credit Rights and Responsibilities: Investigate major consumer credit laws and their impact on individuals in debt.

 

Middle School (Grades 6-8)

Creditworthiness: Explain the components of a credit report.

Credit: Explain the difference between simple and compound interest.

Credit Rights and Responsibilities: Compare the rights and responsibilities of borrowers and lenders.

 

Elementary (Grades 3-5)

Creditworthiness: Identify factors that impact a person’s ability to borrow money.

Credit: Discuss problems associated with not having enough cash and the costs and benefits of borrowing.

 

Primary (Pre-Kindergarten to Grade 2)

Creditworthiness: Explain what makes someone a good borrower.

Credit Rights and Responsibilities: Explain the responsibilities of borrowing.