Credit – Understanding Rights & Responsibilities

In this lesson students gain an awareness and understanding of what credit is and the rights and responsibilities of using credit.

Teaching Objectives:

  • Understand some of the reasons for getting credit
  • Understand some of the advantages and disadvantages of using credit
  • Understand why banks issue credit
  • List and understand some of your rights and responsibilities as a consumer
  • Understand creditworthiness
  • List some of the reasons for establishing a credit history and understand how a credit history is built
  • List and understand the three principal types of consumer credit
  • Determine a safe debt load


Suggested Grade Level

7th Grade – 12th Grade

Lesson Excerpt:

In today’s world, credit is integrated into everyday life. From renting a car to reserving an airline ticket or hotel room, credit cards have become a necessary convenience. However, using credit wisely is critical to building a solid credit history and maintaining fiscal fitness. While most students have a general idea about the advantages and disadvantages of credit, this lesson provides an opportunity to discuss these issues in more detail.

Young people and others commonly wonder how to establish credit. In this chapter, students will learn about the creditworthiness factors of character, capital, and capacity in order to help them gain an understanding of how to start and maintain a credit record.

This chapter will also introduce students to different types of credit: single-payment credit, installment credit, and revolving credit. Finally, this section will educate students about how much credit might be appropriate for their situation.


Teacher’s Guide

Teacher’s Guide


Presentation Slides

Presentation PDF

Presentation PowerPoint


Student Activities:

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