Introduction
If your parents are like most Americans, they receive direct mail with credit card offers weekly.
Many tout a low 0.0% interest rate for 12 months and no annual fee as an incentive to sign up. However, we learned a long time ago in Part A of this course about tradeoffs. If a financial institution is willing to give us all that free, then how are they making money? We will explore now how these offers are possible.
Following successful completion of this lesson, students will be able to...
- Identify costs and terms of credit.
- Evaluate credit card offers.
Enduring Understandings
- Proper management of money is essential to personal financial stability and success.
- There are good and bad uses of credit
- Credit is an essential tool used to establish financial independence, however there are costs associated with the use of credit.
The above objectives correspond with the Alabama Course of Study: Career Preparedness standards: 20a.