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.

Length

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.

Materials

Instructions

  • 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.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support