Students must be able to explain that credit is usually used when one wants or needs something more than they can afford to pay. They must also understand that the person who borrows money must pay it back, and usually has to pay interest on the money borrowed.
Adrian needs a car so he can drive to his job, but he doesn’t have enough money to buy the car. He knows that he might be able to buy one on credit, but wants to learn what that really means. Explain to Adrian what credit is and some important things for him to think about regarding credit.
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3.9 Personal financial literacy. The student applies mathematical process standards to manage one's financial resources effectively for lifetime financial security. The student is expected to:
(D) explain that credit is used when wants or needs exceed the ability to pay and that it is the borrower's responsibility to pay it back to the lender, usually with interest