Credit Crunch Lesson Plan

Instructor: Tammy Galloway

Tammy teaches business courses at the post-secondary and secondary level and has a master's of business administration in finance.

If you are discussing the economy and interest rates, use this lesson plan to explore the credit crunch. Students will read a text lesson, participate in discussion questions, complete an activity, and take a quiz for understanding.

Learning Objectives

After this lesson, students will be able to:

  • define credit crunch.
  • identify factors that influenced the 2008 credit crunch.
  • discuss the consequences and impact on individuals, businesses, and the economy.


60 minutes; 30 minutes for the optional extension

Curriculum Standards

  • CCSS.ELA-Literacy.W.11-12.1.a

Introduce precise, knowledgeable claim(s), establish the significance of the claim(s), distinguish the claim(s) from alternate or opposing claims, and create an organization that logically sequences claim(s), counterclaims, reasons, and evidence.

  • CCSS.ELA-Literacy.W.11-12.1.b

Develop claim(s) and counterclaims fairly and thoroughly, supplying the most relevant evidence for each while pointing out the strengths and limitations of both in a manner that anticipates the audience's knowledge level, concerns, values, and possible biases.

  • CCSS.ELA-Literacy.L.11-12.6

Acquire and use accurately general academic and domain-specific words and phrases, sufficient for reading, writing, speaking, and listening at the college and career readiness level; demonstrate independence in gathering vocabulary knowledge when considering a word or phrase important to comprehension or expression.



  • Begin this lesson by asking students to discuss the disadvantages of using credit irresponsibly, allowing students to share their responses.
  • Explain that they are going to discuss a reckless use of credit by many individuals and financial entities that impacted the economy of the United States.
  • Distribute the Credit Crunch: Definition & Causes lesson and select a volunteer to read the 'What Is a Credit Crunch?' and 'Causes' sections. Then pose the following discussion points:
    • Define credit crunch.
    • Identify causes of the 2008 credit crunch.
  • Choose another student to read the 'Speculation' and 'Risky Loans' sections, and then ask these questions:
    • What is the correlation between home prices and speculation?
    • Define adjustable rate mortgage.
    • How did mortgage brokers perpetuate the credit crunch?
  • Choose another student to read the 'Lack of Oversight', 'Low Interest Rates,' and 'Consequences' sections. Ask the following questions:
    • Explain what the author meant by self-policing.
    • How did low interest rates influence the credit crunch?
    • What were the consequences of the credit crunch?
  • Distribute the lesson quiz, divide students into pairs, and ask them to complete the quiz together. Check for understanding and go over any points students may need more time to explore and discuss.

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