Young Adults and Credit Cards

Ms. Kimi Wright

Bay Ridge Preparatory High School

kwright@bayridgeprep.org

INTRODUCTION

When used responsibly, credit cards can be a powerful tool for building your credit score and increasing your purchasing power.

But when used irresponsibly, credit cards can create debt with high repayment fees, create low credit scores, and cause disqualifications for future loans.

Here are some interesting facts about young adults and credit cards compiled by Credit.com:

· In 2007, a survey on teens and money reported that only 45% of teens know how to use a credit card, while just 26% understood credit-card interest and fees. (Source: Charles Schwab)

· 91% of undergraduates have at least one credit card. (Source: Sallie Mae)

· The average undergrad carries $3,173 in credit card debt. The average college senior will graduate with $4,100 in credit card debt. (Source: Sallie Mae)

TASK

Once in college, students quickly face the option of singing up for a credit card. Without proper financial education, undergrads could find themselves in massive debt once they graduate.

For this reason, your headmaster wants you to create a PowerPoint to present to students in the junior class about responsible credit card usage.

PROCESS

· Use the Six Steps of the Public Policy Analyst (PPA) to:

1. Define the Problem using Worksheet 1

2. Gather the Evidence using Worksheet 2

3. Determine the Causes using Worksheet 3

4. Examine an Existing Policy using Worksheet 4

5. Develop Solutions using Worksheet 5

6. Select the Best Solution using Worksheet 6

· Create a PowerPoint that you will present to an 11^th grade math class.

Your presentation must include:

1. A statement of the problem

2. Evidence of the problem

3. Causes of the problem

4. Current solutions to the problem

5. Suggested improvements to an existing policy and/or new solution

6. The best way to solve this problem

RESOURCES

The following websites and articles will help you in your research:

· Credit Card Glossary Terms to Know for First-Time Card Users

· Credit Card Glossary Terms to Know for Students

· Credit Lessons the Won’t Teach You in College

· When to Apply for a Student Credit Card

· PowerPoint Refresher

EVALUTATION

CATEGORY	4 Excellent	3 Very Good	2 Satisfactory	1 Unacceptable
Originality	Presentation shows originality. The content and ideas are presented in a unique and interesting way.	Presentation shows some originality and inventiveness. The content and ideas are presented in an interesting way.	Presentation shows an attempt at originality.	Presentation shows very little attempt at original thought.
Information presented in a clear manner	All content throughout the presentation is accurate and easily understood.	Most of the content is accurate and understandable.	The content is generally accurate, some of the content is understandable.	Content is typically confusing or contains more than one factual error.
Sequencing of Information	Information is organized in a clear, logical way.	Most information is organized in a clear, logical way.	Some information is logically sequenced. An occasional card or item of information seems out of place.	There is no clear plan for the organization of information.
Visual Material	Project is visually interesting and consistent with an appropriate amount of images, graphs, or charts.	Project contains a good amount of visual material; visual material might have an inconsistency.	Visual material is too little/too much.	Visual material is missing or excessive/ inconsistent. Visual material interferes with the effectiveness of the presentation.
Effectiveness	Project includes all material needed to gain a comfortable understanding of the topic.	Project includes most material needed to gain a comfortable understanding of the material but is lacking one or two key elements.	Project is missing a few elements. Not as effect as it could be.	Project is lacking several key elements and has inaccuracies which make it an ineffective presentation.

CONCLUSION

Now that you’ve become familiar with the advantages and disadvantages with credit card usage, share the knowledge! Ask your teachers and administrators if you can present your PowerPoints in classes, especially SAT and College Prep courses.

STANDARDS

Scientific Thinking- Standard 5

· Identifies problems; proposes and implements solutions; and evaluates the accuracy, design, and outcomes of investigations.

· Works individually and in teams to collect and share information and ideas.

Scientific Communication- Standard 7

· Represents data and results in multiple ways.

· Argues from evidence.

· Critiques published materials

· Explains a scientific concept or procedure to other students

· Communicates in a form suited to the purpose and the audience.

Technology Standards – Standard 5

· Students will apply technological knowledge and skills to design, construct, use, and evaluate products and systems to satisfy human and environmental needs.