Module 2: Borrowing Basics Instructor Guide

Module 2: Borrowing Basics

Instructor Guide

Table of Contents

Getting Started ...................................................................................................................................................................... 3 Module 2: Borrowing Basics Layering Table ..................................................................................................................... 4 Icons Guide ............................................................................................................................................................................ 5 Module Overview .................................................................................................................................................................. 6 Checking In............................................................................................................................................................................ 7 Pre-Test ................................................................................................................................................................................ 10 Overview of Credit.............................................................................................................................................................. 12 Types of Loans..................................................................................................................................................................... 15 The Cost of Credit............................................................................................................................................................... 18 The True Cost of Alternative Financial Services ............................................................................................................. 21 When You Need Money Fast.............................................................................................................................................. 24 How Credit Decisions are Made ........................................................................................................................................ 26 Wrap-Up .............................................................................................................................................................................. 31 Post-Test............................................................................................................................................................................... 32 What Do You Know? ? Borrowing Basics ........................................................................................................................ 34 Evaluation Form ................................................................................................................................................................. 35 Glossary ............................................................................................................................................................................... 37 For Further Information .................................................................................................................................................... 38

Money Smart for Adults Curriculum

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Module 2: Borrowing Basics

Getting Started

Instructor Guide

Use this guide to help you teach this module in an informative, engaging, and effective manner.

You can customize the information in Money Smart to meet the needs of your audience. The layering table on page 4 can help you choose the most relevant module sections. However, it is usually a good idea to include:

Introductions. Allows you to "break the ice," create active instructorparticipant dialogue, and set the tone for the session. Agenda and Ground Rules. Helps participants understand the subject matter and how the class will be conducted. Expectations. Gives participants the opportunity to tell you what they expect and want to learn from the module. Objectives. Helps participants place the information to be learned in the proper context and ensures that the content is consistent with their expectations. Explanation of Participant's Guide Format and Contents. Serves to keep participants on track with the instructor. What Do You Know? Form and/or Pre-Test. Helps you and participants determine what they already know or do not know so you can customize the presentation accordingly. Module Content and Activities. Helps participants to reinforce learning. What Do You Know? Form and/or Post-Test. Helps you and participants gauge how well they learned the content, what content to review, if any, and what additional materials participants may want to review on their own.

Money Smart for Adults Curriculum

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Module 2: Borrowing Basics

Instructor Guide

Module 2: Borrowing Basics Layering Table

Please read the Layering Table Instructions in the Guide to Presenting Money Smart for Adults.

Pages 7-9 10-11, 34 12-14

15-17

18-20

21-23

24-25

26-30 31

32-34 35-36

Time (Min.)

Topic

5 Checking In

Pre-Test and/or 5 What Do You

Know?

10 Overview of Credit

15 Types of Loans

15 The Cost of Credit

The True Cost of 10 Alternative

Financial Services

When You Need 10

Money Fast

How Credit 20

Decisions are Made

5 Wrap-Up Post-Test and/or

5 What Do You Know?

5 Evaluation Form

Subtopic & Activities Introduction of instructor and the materials

Credit defined, the importance of credit, collateral Consumer installment loans, credit cards, home loans Activity 1: Which Loan Is Best?

Fees, interest, Truth in Lending disclosures Activity 2: Borrowing Money Responsibly Rent-to-own, payday loan, and refund anticipation services

Short-term loans, borrowing from yourself, comparison shopping, emergency cash options from banks

The Four C's, questions to ask before applying for a loan, tips for managing your credit, guarding against predatory lending practices

Target Audiences Everyone

Everyone

Anyone who has yet to apply for credit Those considering the use of credit Those with credit who want to see if they would benefit by using or switching to another form of credit Anyone who has or plans to use credit

Anyone who has or plans to use credit

Anyone who finds themselves temporarily short on cash once or twice Anyone trying to reduce expenses or get cash in a hurry Anyone who has or plans to use credit

Everyone Everyone

Everyone

Money Smart for Adults Curriculum

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Module 2: Borrowing Basics

Icons Guide

The following icons may be used throughout the Instructor Guide to indicate activity type.

Instructor Guide

Presentation

Present information or demonstrate an idea.

Review

Refer participants to and summarize material provided in the Participant Guide.

Activity

Guide participants through an activity to support their learning.

Assessment

Direct participants to take a short test.

Discussion

Facilitate a discussion about a topic as directed.

Ask a Question

Present a problem or question for discussion.

Money Smart for Adults Curriculum

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