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Differentiating between secured and unsecured loans

Updated

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

Big idea

Borrowers may qualify for different types of loans based on their creditworthiness.

Essential questions

  • How might a person’s credit habits and decisions influence their ability to borrow money?

  • What types of loans exist to help people pay for large purchases or expenses?

Objectives

  • 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 “Characteristics of secured and unsecured loans” game cards into two piles: secured and unsecured loans.

  • Work collaboratively to sort the “item” game cards to show which can likely be purchased with secured loans and which would likely need to be paid for with unsecured loans.