Credit & Debt Lesson Plan

Instructor: Kandi Young

Kandi has degrees in Communications, Human Services, Education and Computer Science. She is a Business, Marketing, and Technology instructor with a Master's degree in Education.

Understanding credit and debt is essential to making good financial decisions. This lesson plan will use a video lesson and three activities to help students understand how credit and debt are related and how to build good credit.

Learning Objectives

Students will be able to:

  • Recognize and understand credit and debt vocabulary
  • Explain the connection between credit and debt
  • Analyze and interpret credit and debt connections
  • Determine appropriate credit limits

Length of Lesson

1 to 2 hours



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Analyze decisions and strategies using probability concepts.


Determine two or more central ideas of a text and analyze their development over the course of the text, including how they interact and build on one another to provide a complex analysis; provide an objective summary of the text.


  • Debt
  • Credit
  • Loan
  • Revolving credit
  • Maxed out
  • Interest
  • Credit limit
  • Balance


Do I Qualify? Activity Materials

  • Sample credit card offers
  • Financial scenarios, such as:
    • Joan just graduated from high school and is getting ready to go to college. She has saved $3,500 from her part-time jobs, but she recently quit her jobs in preparation to leave for college. She plans on working once she gets to college but isn't certain where yet. She will be paying $250 a month for a housing and meal plan at college. She currently has a credit card with a $500 limit at her favorite clothing store with $250 balance. Joan would like to have a credit card for emergencies. She has received several applications in the mail and must decide which card to apply for.

Credit Bingo Activity Materials

  • Vocabulary lists
  • Bingo sheets
  • Bingo chips or markers

Credit Research Activity Materials

  • Internet access
  • Presentation software
  • Spreadsheet software


  • Begin the lesson with a class discussion to determine what students know, think they know, or have misconceptions about concerning credit and debt. Possible discussion starters could include:
    • Does anyone have a credit card? If so, what is your limit and how much is on it right now?
    • Is credit good or bad? Explain.
    • How is a loan different from a credit card?
    • Do you need credit? Why?
  • Show the video Credit and Debt in Personal Finance.
  • Ask students to take the Credit and Debt in Personal Finance quiz.
  • Discuss their results, focusing on missed questions to clarify concepts introduced.

Do I Qualify? Activity

  • Divide students into partners.
  • Assign one student to be the lender, and the other student will be applying for credit or a loan.
  • Pass out the financial scenarios and several credit card offers to the team. Using the scenario, the student assigned the role of applicant must decide which offer to pursue. The student acting as the lender must use the financial scenarios to determine if the 'applicant' will be approved or denied for their credit request.
  • Each student should write one paragraph justifying their position.
  • Ask the teams to present their scenarios and decisions to the class.

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