Students learn about the reasons and responsibilities of borrowing money.
- Explain why people borrow money.
- Identify the rights and responsibilities of borrowing money.
- Demonstrate appropriate situations to borrow money.
- Evaluate the impact of borrowing money.
Standard 7: The student will identify the procedures and analyze the responsibilities of borrowing money.
Suggested Grade Level
6th – 12th Grade
People borrow money for many reasons: to buy a car or a house; to remodel their home; to pay for college expenses; to open a business; and, in some cases, to pay their bills. Borrowing money allows us to get what we want today or to pay for things when we do not have enough cash. While that sounds great, we must remember that borrowed money must be paid back. Making poor decisions about loans can affect our finances for a long time.
Borrowing money does not mean that we have more money. In fact, it is the opposite. Borrowing money means we are using tomorrow’s income to buy things today. If we are not careful, we will borrow too much — leaving us with a big stack of bills and no money to pay them!