I have written a number of articles on financial standards that are being taught to students in the public school system. Learning about money as everyone knows is extremely important. Many adults don’t know how to handle money and it causes a lot of hardship. Further it is one of the leading causes of divorce and dissension in marriages.
This article will deal with what eighth-graders are expected to know with respect to “Credit and Debt.”
The overall competency as our reference material tells us is to “Maintain creditworthiness, borrow at favorable terms and manage debt.” This sounds a little steep but it should be put in terms and in situations understandable for this age group.
As with fourth grade and 12th grade there are four standards all with a number of sub-points and skills.
Standard one involves “Identifying the costs and benefits of various types of credit.” For example something that is a relatively new phenomenon is the debit card. An eighth-grader should know the difference between a debit and a credit card.
Eighth-graders are expected to understand the cost of interest on a loan. Further students of that age should be able to identify “easy-access” credit, the problems with “easy access” credit and the use of home ownership as an investment.
Standard Number Two incorporates the ability to understand the purpose of a credit record.”
This is an all-encompassing issue. The student should be able to explain why a good credit record is important to a borrower and a lender. Further when might someone ask for their credit record?
Standard Number Three asks the student ways to correct credit problems.
In this situation the student is expected to understand how it is possible to encounter problems with credit. What are ways that people get themselves in trouble? However when they do get in trouble what are the legal ways debts can be collected? I have linked to an article I did on that issue.
Standard Number Four asks the student for a summary of data.
In addition to all of the other information being placed in a way that is understandable the eight-grade student should be able to share with parents and teachers protection provided to consumers from debt and credit protection laws.
As I said previously money in this society is hard to understand. It is almost like learning a foreign language.
The sooner that a student is exposed to information about money, the better they will do.
Associated Content Website, Gary Davis, “The Rules that Debt Collectors Must Follow”
“Credit and Debt,” Article, “Eighth Grade Additional Expectations,” Jump$tart Coalition for Personal Financial Literacy, Charles Schwab