Title: Identify strategies for making decisions about debt.
Course: Independent Living (22904-36) > Section: Managing Personal and Family Finances

Identification should include

- using planning and savings to avoid debt
- identifying debt-to-income ratios
- evaluating choices involving debt
- identifying the consequences of making poor credit decisions
- maintaining a record-keeping system for credit purchases
- ensuring safekeeping of credit cards
- avoiding late-payment and other penalties
- examining debt payment plans
- recognizing warning signs for potential debt or credit issues.

Process/Skill Questions:

Thinking

- What skills and strategies can you develop now that will help you avoid debt?
- What is a budget? How does adhering to that budget help avoid fees and penalties?
- What are the factors to consider when deciding whether to make a purchase or wait?

Communication

- Why is debt often a source of family stress and conflict?
- Where do you acquire your beliefs and attitudes toward debt?
- What difficulties might family members have if they do not share the same beliefs and values concerning debt?

Leadership

- What are the advantages and disadvantages of cash, check, debit card, and credit card as a way to purchase goods and services?
- What ethical roles do businesses play, if any, in encouraging consumers to accrue large debts through extensive use of credit cards? Why or why not?
- What are some effective ways to teach children about debt?

Management

- What guidelines should be put in a budget to help control debt?
- What information is needed to set short- and long-term financial goals?
- What are the possible consequences of going deeply into debt?

Teacher Resources:

- Educator Toolkit for 2011 National Financial Capability Challenge, U.S. Department of Education (https://www.ed.gov/category/keyword/educator-toolkit-2011-national-financial-capability-challenge)
- Virginia Council on Economic Education (https://vcee.org/)
- Virginia Jump$tart Coalition for Personal Financial Literacy (https://www.jumpstart.org/who-we-are/states/virginia/)