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Grade: 10 Lesson # 6
How do choices consumers make affect their financial
stability?
SS.912.FL.3.1: Discuss the reasons why some people have a
tendency to be impatient and choose immediate spending over
saving for the future.
Correlated Literacy Standards:
LAFS.910.RH.2.4: Determine the meaning of
words and phrases as they are used in a text,
including vocabulary describing political,
social, or economic aspects of history/social
science.
Rebecca Bloomwood learns about consumer
choice, compulsive spending and debt
LAFS.910.SL.1.1: Initiate and participate
effectively in a range of collaborative
discussions (one-on-one, in groups, and
teacher-led) with diverse partners on grades
9–10 topics, texts, and issues, building on
others’ ideas and expressing their own clearly
and persuasively.
1
SS.912.FL.3.1: Discuss the reasons why some people have a tendency to be impatient and choose
immediate spending over saving for the future.
It’s A Bargain! Confessions of a Compulsive Spender Using Credit Cards
Lesson Number:
6
Correlated Florida Standards (See Full Text on Cover Page)
 LAFS.910.RH.2.4
 LAFS.910.SL.1.1
Essential Question
 What are the responsibilities associated with managing personal finances (savings, checking, credit, etc.)?
 How do consumers effectively choose quality goods and services at an affordable cost?
 Why should consumers use practical reasoning when approaching spending habits?
Learning Goals/Objectives
 Identify the opportunity cost in examples of personal decision making.
 Understand that spending is exchanging money for goods and services
 Compare the price of a good at more than one store.
 Understand that all consumers have limited budgets and must make choices.
 Analyze and discuss a person’s use of credit, consumer strategies, and the decision making process.
 Define personal finance and credit vocabulary terms associated with suggested text
Overview
 In this lesson, students will learn the concept of scarcity, having unlimited wants with limited resources.
Students should understand that when purchasing goods and services, avoid impulse spending, bargain
hunting (especially “Black Friday” or “Cyber Monday”), and excessive purchases.
Materials
 Credit Card Facts (Promethean or SMART Board) (Included in Lesson Plan)
 Credit Score Tips Handout #1 (Included in Lesson Plan)
 Shopaholic Vocabulary Handout #2 (Included in Lesson Plan)
 Dictionaries
 Shopaholic Credit Case Handout #3 (Included in Lesson Plan)
 Calculators
Time
 50 minutes
Vocabulary
Scarcity, Opportunity Cost, Trade-Offs (weighing cost and benefits), Consequences, Budget, Decision-Making,
Savings, Goods, Price, Credit, bargaining hunt, Black Friday, Cyber Monday
Activity Sequence
INTRODUCTION/HOOK

On the Promethean or SMART Board, brainstorm the differences of wise consumerism versus wasteful
spending when using credit cards [5 minutes]
ACTIVITY
1) Discuss Credit Card Facts using a Promethean or SMART board[5 minutes]
2) Discuss Credit Score Tips handout. Compare and contrast Rebecca’s use of credit to the suggested use of
credit [10 minutes]
3) Complete and discuss Shopaholic Vocabulary worksheet. Relate the vocabulary terms to the text and to
credit and personal finance[15 minutes]
4) Complete the Shopaholic Credit Case Study activity. Use the appropriate mathematical procedures and
operations to figure out the total cost of a loan. Calculate the equivalent of British pounds and U.S.
dollars by using an estimated exchange rate. [20 minutes]
CLOSURE
 Conclude the lesson by having students review the opportunity cost and consequences illustrated by
Rebecca Bloomwood. Ask students if they would compulsively spend money because it’s advertised as a
bargain, such as end of the year sale (usually car dealerships), Black Friday or Cyber Monday? Remind
students of the benefits and consequences of indulging in buying items that you cannot afford [5
minutes]
OPTIONAL EXTENSION SUGGESTION/HOME LEARNING
 Discuss financial literacy with parents or guardians. See how this lesson applies to your home life.
Bibliographic Information that contributed to this lesson:
Kornegay, Julie Confessions of a Shopaholic Lesson Plan
http://www.mceeonline.org/teacher-night-at-the-fed/
Making Finance Personal: Project-Based Learning for the Personal Finance Classroom
https://www.frbatlanta.org/education/publications/extra-credit/2015/spring/lessons-and-activities/highschool/personal-finance/project-based-learning-for-personal-finance-classroom.aspx
Take Control of Debt: Use Credit Wisely
http://www.dallasfed.org/assets/documents/educate/pubs/wealth_classroom/09_lesson.pdf
Unit C: All about Credit
https://www.stlouisfed.org/education/its-your-paycheck-curriculum-unit
Lesson 6: Credit Reports—and You Thought Your Report Card Was Important
https://www.stlouisfed.org/~/media/Education/Curriculum/pdf/Its-Your-Paycheck-Lesson-6.pdf
Lesson 7: Creditors’ Criteria and Borrowers’ Rights and Responsibilities
https://www.stlouisfed.org/~/media/Education/Curriculum/pdf/Its-Your-Paycheck-Lesson-7.pdf
UNDERSTANDING CREDIT CARDS (Advanced Lesson Plan)
http://wp.lps.org/bjames/files/2015/02/Understanding_Credit_Cards_Lesson_Plan_2.6.3.pdf
5 Reasons a Maxed-Out Credit Card is Bad
http://credit.about.com/od/creditcardbasics/tp/you-shouldnt-max-out-your-credit-card.htm
Credit Card Facts

10% of North American teenagers use their
parents’ credit cards.

92% of college students have a credit card by
their sophomore year.

1 out of every 5 college students owes between
$3,000 and $7,000 in credit card debt

Almost half (47%) of all college students carry 4
or more credit cards.
Handout #1
Credit Score Tips
A. To establish a credit history, you should:
B. The function of a credit bureau is:
C. What are some of the consumer protection laws illustrated in the “To
Your Credit video?
D. What is the function of a credit counseling service?
Handout #1 (Answers)
Credit Score Tips
A. To establish a credit history, you should:
1) Not overdraft checks
2) Pay bills promptly
3) Obtain a bank credit card (Visa/MasterCard) and pay it off
4) Obtain a retail credit card (Department store card) and pay it off
5) At college, pay utility bills and rent on time
B. The function of a credit bureau is:
1) To provide creditors with your bill paying/credit record
C. What are some of the consumer protection laws illustrated in the “To
Your Credit video?
1) You are entitled to information from the credit bureau (Your credit
history)
2) Creditors may not ask your marital status, age, gender, race, etc.
3) Lenders must provide the APR, total cost of the loan, # of payments &
monthly payment amounts (Schumer Box)
D. What is the function of a credit counseling service?
1) Help people get out of debt.
2) Teach people about money management.
Name: _____________________________________________________
Period: _______
Shopaholic Vocabulary
Directions: Define the following vocabulary terms as they relate to the text and to personal finance and credit:
minimum payment:
frugality:
profit:
advantage points:
expenditure:
itemize:
unsecured loan:
debt:
debit card:
VISA card:
(aka bank credit card)
Octagon charge card:
(aka retail credit card)
frozen account:
Name: _____________________________________________________
Period: _______
Shopaholic Credit Case Study
Rebecca Bloomwood is at it again! She went on a shopping spree at her favorite shop: Octagon. The
purchases totaled £370.56. She used her Octagon credit card to pay for her purchase. The Annual
Percentage Rate (APR) on the credit card is 17%. Each month she will pay £45 towards her credit card bill.
Calculate the number of months, the total cost of the loan and the total finance charge for the loan.
Original cost of Becky’s shopping spree: ______________________
Monthly interest rate (show work & round to 2 decimal places): _________________
Number of months to pay back the loan: ___________________
Total cost of the loan (original purchases + interest): _________________________
Total interest paid for the loan: ________________________
Show all work!
Now use the estimated exchange rate to calculate: (Exchange rate may change)
1) How much she originally spent at Octagon in U.S. dollars.
2) Total cost of the loan in U.S. dollars.
3) Total interest paid for the loan in U.S. dollars.
£1 = US $ 1.66