Telling the difference between loan myths and realities

Updated Jul 14, 2022

Students analyze statements about loans and decide whether they’re a myth or reality.

Big idea

Knowing the difference between loan myths and realities can help you become a responsible borrower.

Essential questions

What are the most important things to know about taking out a loan?
Why are some people able to get a loan while other people aren’t?

Objectives

Recognize whether a statement about loans is a myth or reality
Understand the difference between secured and unsecured loans

What students will do

Review key terms related to taking out a loan.
Determine whether statements about loans are a myth or reality.
Learn about the difference between secured and unsecured loans.

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Teacher guide

cfpb_building_block_activities_tell-difference-between-loan-myths-realities_guide.pdf

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

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Key information for this activity

Building block

(What are the building blocks?)

Financial habits and norms
Financial knowledge and decision-making skills

Topic

Borrow (Getting loans, Managing credit)

School subject

CTE (Career and technical education), English or language arts, Social studies or history

Audience

Grade level: Middle school (6-8)

Age range: 11-14

Student characteristics: English language learners, Special education, Low income

Activity characteristics

Activity type: Whole class

Teaching strategy: Cooperative learning, Gamification

Bloom’s Taxonomy level: Understand, Apply, Analyze

Activity duration: 45-60 minutes

National standards

(What are the national standards? )

Standards: II. Spending, V. Managing credit

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