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Credit Card Mania

 

The Mission

Congratulations!  You have just received your first credit card application!  You can have your very own credit card with a $5000 limit. Working in groups, you'll gather brochures and applications from different companies offering major credit cards (i.e., American Express, Discover, VISA or MasterCard companies and explore the consequences of using credit cards.

You will gather and analyze data and draw conclusions based on analysis of your data.  You will create a chart that compares the features of three different credit cards and select one that offers the best deal.

You will simulate purchasing a variety of items, compare the total cost for the items using cash vs. credit card and select the best method of payment by analyzing various payment structures to compare total cost of items over various periods of time. 

You will work in cooperative groups to:

  • Visit credit card websites

  • Read credit applications

  • Read fine print of credit cards

  • Watch for credit cards that’ll rip you off

  • Understand annual fees, processing fees, etc. for credit cards

The Process

1.  Choose a group of four students to work with.

2.  Select one person from group to read aloud the “Task” and  “The Process”  

3.  Decide upon the roles for the members of your group.  You will need a recorder, a timer, etc.

4.  Conduct a preliminary Internet search to get information about credit card deals and select the best three credit card deals.  Remember to consider and compare the various types of credit cards… i.e., Cash Rebates Cards, Frequent Flyer Cards, Rewards Credit Cards, Secured Credit Cards, Student Credit Cards. 

5.  Prepare a written summary comparing the features of the various types of credit cards.  Your written summary should contain one paragraph describing each type of card.  Print the application and all information about the credit card terms and rules and read within your group.  Document the similarities and differences of the different credit card deals and list them in a comparison chart.  Make a table and a graph to illustrate your results.  Your final results will be presented to the class.

6.  Select one credit card from your list of three that offers the best deal and compare the cost of purchasing the following 5 items using a credit card vs. cash.  Examine what happens when you may the minimum amount due on your credit card bill vs. paying the minimum amount plus $20.00 per month on your credit card balance.  You must determine how long it will take you to completely pay off your credit card bill for both of these scenarios and what is the total amount paid for the items once your balance is zero.

Items to purchase using a credit card:

  •  42” inch Flat-Panel TV with DVD player and X-Box

     www.bestbuy.com

     www.circuitcity.com

  • Game Boy

     www.toysrus.com

  • Washer and dryer

     www.sears.com

  • Clothes Item – 1 pair of blue jeans

     www.gap.com

     www.jcpenney.com

  • Food - $25 in groceries from the neighborhood grocery store

7.  Your group will present your final results to the class in an oral presentation.  Your chart/graph/table will be included in your final written report.

 
Resources
General Financial Information

Credit card brochures/applications/ranking services:

Financial Magazines and websites

Other Helpful Sites for Your Project:
 Scaffolding Lessons
 

Vocabulary development (develop list of finance terms, use word wall, word map, crossword puzzles to help with terms and definitions) 

Access prior knowledge (discuss what students know about credit cards, being consumers, buying and paying for things, questions:  Who do you know that has a credit card?   What good things have you heard about credit cards?  What bad things have you heard about credit cards?)

        Tapes to introduce a concept (show various commercials from TV about problems with credit/ bad/no credit)

 

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