Introduce loan options with this video: Loan Basics. The video gives a thorough overview of loan options. Use the video to answer the following questions:
Note: The video is short and sweet and covers a lot of information quickly; you may want to stop the video to help students catch up and point out specific information.
- List the types of loans available.
- Define the following: Principle, Interest, and Term.
- Compare secured versus unsecured.
- What does collateral mean when referring to loan options?
- What are interest rates affected by?
- What is a credit score and how can it affect your loan options?
- How does your “life situation” affect taking out a loan?
- Co-signer — who’s that? Explain.
- Define fixed and variable interest rates.
Closure: Getting a loan is a big step financially and shouldn’t be taken lightly.
Why do you think taking out a loan is a significant financial decision? Explain.