I’ve written previously on how important I think financial education is in schools, and so in the spirit of collegiality I’d like to share an example lesson I recently delivered in my class that illustrates well the kinds of activities a teacher who is looking to introduce business or personal finance might try.
This was taken from my business class’s unit on credit, and a lesson we were doing on credit cards. We’ll all likely need to access credit at some point during our lives, be it for a car loan, mortgage, student loan or even for consumer spending. My first message to the students when it comes to credit cards is that abstinence is best – but if we’re going to use them, we should be well-informed and responsible users.
By way of background, I use a course iBook with my students – a sort of custom digital course text I have developed for my class that contains all the content I plan to use throughout the year. Without going too deep into the details, it basically allows me the opportunity to employ a flipped-classroom instructional strategy, and keeps all of my traditional curricular content housed in one easy-to-access digital collection. My intent for this lesson was to create an activity based on student understandings of the different characteristics of credit cards. To that end, I have listed in the course iBook a series of definitions students need to have a handle on in order to make the activity a success. These definitions include things like ‘credit limit’, ‘cash advance fees’, ‘minimum payments’, and so on.
To begin the lesson I gave students a chance to refresh on those concepts so we could make sure everyone would be able to participate fully in the activity. I then assessed their prior understanding by distributing a handout with a set of Likert scale questions asking students how important they thought each of those features were when it came to selecting a personal credit card. Obviously having an understanding of what each of those terms meant would be a pre-requisite to evaluating their relative merit. My goal was also to see at the end of the lesson if the students still felt those were the most important characteristics after having completed the activity.
Once prior understanding had been assessed the fun could begin. Prior to class, I had created 60 laminated fake credit cards, enough for each student to have 2, and also created 20 different profiles of card based on 5 types of 4 different brands: MasterCard, Visa, American Express and Discover. I allowed each student to draw 2 cards and gave them an accompanying handout with 2 tables on which to record the specific features of their selected cards. On blue posters hung around the classroom were listed all the characteristics of the 20 different cards. All the students had to get up out of their chairs and circulate the room to the 10 different posters to find out what was ‘in their wallet’!
Once they had recorded the 10 different characteristics of their two cards, students returned to their seats to evaluate which of their two they felt was a ‘better’ card by drawing a star above that table.
Next, I asked everyone to get back up out of their seats for some real mayhem. Students were challenged to try and get the ‘best’ card possible by trading their cards with their classmates. There was a lot of wheeling and dealing during this period with students trying to convince each other to trade.
Students had to think critically about the different features of each card, what was important to them and how they could convince others of the qualities of their cards. This required a deep understanding of the characteristics of the cards and happened to be a lot of fun too. The students seemed to get a real kick out of trying to negotiate with each other for their laminated credit cards.
Once the trading started to slow I asked everyone to go back to their seats. I posed the question, “Who thinks they have the best card, and why?” Different tudents offered their opinions, and it was during this period that we really understood that what constitutes a ‘good’ card really depends on personal preference. Do you prioritize having a low or no fee card? Do you prefer having a particular rewards program associated with your card? Or maybe cash back? Is being able to perform a no fee balance transfer with an interest grace period important? The answer completely depends on the profile of the user.
I finished the lesson by going through, one last time, each of the 10 different features we highlighted reflected upon the merits of each as they pertained to particular user profiles. For example, foreign transaction fees would be more important to a user who travels often… making only minimum payments is a recipe for disaster for all credit card users… and we also had a rich discussion about what merchant fees are. We even tied in a current event where Walmart and Visa had a dispute over merchant fees.
In the end, the students came away with a much richer understanding of the complexity of credit and credit cards, and can now make a more informed decision when it comes to, first, whether to have a credit card or not and, secondly, which card features will be important to them if they do decide in the future to make use of one. And they were engaged and having fun along the way.
I’ve made free use of some of the resources I’ve developed for this lesson here on my blog. Feel free to use them or alter them as you see fit. If you have any suggestions as to how I might improve this activity, please leave me a message in the comments section below.