FL10.8 Analyze credit options and the importance of responsible borrowing.
Credit Crunch
The eighth episode of the “Cash Class” series looks at the pros and cons of different forms of borrowing and how to decide what is right for you, what makes up a credit score, and good debt vs. bad debt.
This video was specifically designed to address all of the Learning Indicators of Outcome FL10.8, and serve as a real-life scenario companion piece to the Building Futures in Saskatchewan curriculum correlations.
When Alex’s laptop screen cracks right before finals, they explore different borrowing options—payday loans, buy‑now‑pay‑later plans, a starter credit card and a line of credit. This episode teaches viewers how credit works and why a good credit score matters. We compare the pros and cons of common borrowing products, highlight the dangers of high‑interest payday loans and deferred‑payment plans, and help students recognize “good debt” (planned, affordable, builds credit) versus “bad debt” (expensive, unnecessary or predatory).
Reflection question: Have you thought about what your credit score could unlock—or block—in the future? How can you use credit wisely to build a strong financial foundation?
This Outcome Looks At:
Various options for purchasing items with and without payment plans.
Interest rates, minimum payments, and potential benefits for a variety of loans and credit cards.
Ways for a young adult to access credit for the first time and build a credit score.
Credit scores and how they can impact future financial activities.
How to critique the statement “Credit is a great way to make purchases when you are short on cash or have low income.”
The difference between good debt and bad debt and why individuals need to respect debt.
The concept of net worth and the impact of borrowing on net worth.