six activities to teach effective, engaging credit … activities to teach effective, engaging...

Six Activities to Teach Effective, Engaging

Credit Classes

Syble Solomon and Lee Gimpel creators of The Good Credit Game

Syble Solomon President and Founder of LifeWise Strategies Creator of Money Habitudes® Co-creator of The Good Credit Game and Money Habitudes Online Mary Ellen Edmondson Educator of the Year, AFCPE Presenter on the psychology of money for the NFL, USAF, CFED & more

Lee Gimpel Director of Development, LifeWise Strategies Co-creator of The Good Credit Game and Money Habitudes Online Conference presenter for Jump$tart, United Way, Asset Building, USMC Quoted in USA Today, Yahoo! News, Daily Worth, Market Watch and Motley Fool

Get to know the creators…

• Background

• Philosophy

• Introduction to the 6 activities in the toolkit

• How to adapt activities

• Wrap-up

Agenda

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Background

Our Philosophy

• Credit is an asset.

• Having good credit is an important part of a healthy financial future.

• Sometimes the best financial choice is not the best credit score choice.

• Smiling and laughter are good for learning.

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Alignment with National Standards Jump$tart

National Content for Standards of Entrepreneurship Education

Council for Economic Education: national standards for financial literacy

FDIC (Money Smart)

Activity

1

ç

an

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Full-time student Odd jobs Baptist

Caucasian Unmarried Cancer survivor

$21,000 Brother with disabilities is dependent

Savings $500 Checking $50

Has had 2 credit cards for 10 years

Got a personal loan last month for a

vacation

Gas credit card & loan for a new

Toyota

Was in a serious car accident

recently

$5000 credit limit; Pays cash. Never

charges.

Mary

Always pays bills on time

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Would you make a personal loan to Mary?

This is your personal money and your choice.

No right or wrong answers.

Consider what role trust plays in your decision.

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As a banker, would you lend to Mary?

• What’s different when lending as a friend vs. as a banker?

• What’s the same?

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Why start with this activity? • No right or wrong answers. • Gets people talking; establishes a pattern of conversation. • Energizing; no lectures or PowerPoint. • Applicable to everyone in any class. • Everyone has asked to borrow money or been asked. • Teach that credit is about trust. • Don’t start with numbers.

Activity

2

Where would a lender or creditor learn that Mary’s income is $21,000? a. Credit or loan application b. Credit report c. This information can’t be asked for.

Where would a lender or creditor learn that Mary has had 2 credit cards for 10 years?

a. Credit or loan application b. Credit report c. This information can’t be asked for.

From where would a lender or creditor learn that Mary is Baptist? a. Credit or loan application b. Credit report c. This information can’t be asked for.

Activity

3

Chose the age:

21+

Customizing the Build-a-Person Cards

18-21

Build-a-person cards

1. Age

2. Employment

3. Marital Status

4. Income

5. Savings, Assets, Checking, Investments,

6. Dependents

7. Religion

8. Health

9. Race

10. Payment History

11. Debt-to-Credit

12. Credit History

13. New Accounts

14. Mix of Loans

15. Personal Stories

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Why do Activities 2-3?

•Help people understand where financial institutions get their information •Show people what is – and is not – part of a credit report (and a credit score) •Clearly make the link between real-life actions (like paying a credit card bill on time) and how it affects a credit score. •Further let participants interact with each other in a fun, engaged group setting

Activity

4

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Cost of Credit Calculator

Front – lower-value loans

Activity

5

Cost of Credit Calculator

Back: high-value mortgage loans

Activity

6

Use the following questions to facilitate a discussion. Use the facts above to provide answers. Ask: What is the definition of an inquiry? Ask: Who can describe the difference between a soft inquiry and a hard inquiry? Read: I’m going to read a list of inquiries. If you think it is a hard inquiry, stand up. If you think it is a soft inquiry stay seated.

Discussion Cards (20 Yellow Cards) If you owe money to a bank, is it

different than owing money to a friend?

Who is it easier for you to be with? A friend who expects you to pay when you go out? Or one who always treats you?

What would you give up if you really needed an extra $100?

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Green = Basic 80 cards

Red = Beyond Basic 120 cards

Adaptation #2 Only use basic cards

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Adaptation Choose your topics

(39 topics)

1. Addiction 2. Age 3. Alerts & Opt-outs 4. Bankruptcy 5. Best Practices 6. Build & Maintain Credit 7. Cash Advance 8. Charge Offs 9. Corrections to Credit Reports

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• Choose a topic. (There are 39 topics)

• Read the background information. #16 is credit utilization. • Do your own mini-lesson on this topic • Use the engaging activity provided for that topic

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Adaptation Critical topic mini-lesson

Review

1. Would YOU make a loan? Would a lender? What determines whether someone will lend to you? How important is trust and reputation?

2. What information affects a credit score? Where does it come from? What’s not in a credit report or credit score?

3. What are the parts of the credit report?

4. What is the real cost of credit (calculators)?

5. Reinforcement and higher-level learning via the Road to Good Credit board game.

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Further reading

Challenges – and solutions – to teaching credit classes

http://bit.ly/1QTMdnu

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Free shipping within the US. Use this discount code at checkout through November: AFCPE2015 The Good Credit Game • Small Set for 10 $249 • Medium Set for 20 $299 • Large Set for 30 $349

Calculators can be ordered in bulk to give away in classes and at your next event.

Only $500/400 or $1000 for 1000

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GoodCreditGame.com

910-399-2200

Syble Solomon

syble@lifewise.us

Lee Gimpel lee@lifewise.us

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