Identification should include

• using budgeting and savings to avoid debt
• identifying debt-to-income ratios
• evaluating choices involving debt
• identifying the consequences of making poor credit decisions
• maintaining a recordkeeping system for credit purchases
• ensuring safekeeping of credit cards
• exploring the consequences of late-payment and other penalties
• examining debt payment plans
• recognizing warning signs for potential debt or credit concerns.

Teacher Resources:

• Empowering Futures, One Dollar at a Time, VCEE
• Teen Teach-In, Virginia Events Jump$tart! Financial Smarts for Students
• Financial Fitness, FCCLA

Process/Skill Questions:

Thinking

• What skills and strategies can one develop that will help one avoid debt?
• What is a budget? How does adhering to a budget help avoid fees and penalties?
• What are factors to consider when deciding whether to make a purchase or wait?

Communication

• Why is debt often a source of family stress and conflict?
• Where does one acquire one’s beliefs and attitudes toward debt?
• What difficulties might family members have if they do not share the same beliefs and values concerning debt?

Leadership

• What are the advantages and disadvantages of cash, check, debit card, and credit card as a way to purchase goods and services?
• What ethical roles do businesses play, if any, in encouraging consumers to accrue large debts through extensive use of credit cards? Why or why not?
• What are some effective ways to teach children about debt?

Management

• What guidelines should be put in the budget to help control debt?
• What information is needed to set short- and long-term financial goals?
• What are the possible consequences of going deeply into debt?