Shopping in credit city
Students complete a shopping game to see how much money they would spend on four major purchases that require borrowing money.
Borrowing money instead of paying cash for items can increase the total amount paid.
How can you plan ahead when you need or want to make a large purchase?
How can borrowing money to pay for items increase the total amount you spend?
Calculate the total cost of items using an oversimplified interest formula
Reflect on how borrowing affects the way you feel about purchases
What students will do
Roll a die to determine purchase price, interest rate, and length of loan needed to pay for four big-ticket items.
Analyze how purchases made with a credit card may result in increased total cost of ownership when compared with paying with cash.
Reflect on the experience of purchasing with cash versus credit.