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Differentiating between secured and unsecured loans


Students explore characteristics of secured or unsecured types of credit by playing a sorting game.

Big idea

Borrowers may receive different types of loans based on their credit history.

Essential questions

  • How might a person’s credit habits and decisions influence their ability to borrow money?
  • What types of loans help people pay for large purchases or expenses?


  • Understand the characteristics of secured and unsecured loans in order to make informed borrowing decisions
  • Identify items that could be purchased using a secured loan versus an unsecured loan

What students will do

  • Work collaboratively to sort game cards with loan characteristics into two piles: secured and unsecured loans.
  • Work collaboratively to sort game cards with items to show which ones can likely be purchased with secured loans and which can likely be purchased with unsecured loans.

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Teacher guide


Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.