Business Studies · Grade 9

Active learning ideas

Credit and Borrowing

Credit is a powerful financial tool that can lead to growth or significant debt. This topic explores how credit works, the cost of borrowing (interest), and the importance of a credit score in Canada. Students examine different types of credit, such as credit cards, student loans, and car loans, and the long-term consequences of financial decisions.

• Ontario Curriculum Expectations
• C3.1 explain the concept of credit and the cost of borrowing
• C3.2 describe how to establish and maintain a good credit rating

• 20–40 min
• Pairs → Whole Class
• 3 activities

Activity 01

• Simulation Game
• 30 min · Individual

Simulation Game: The Interest Trap

Students use an online credit card calculator to see how long it takes to pay off a $1,000 purchase making only the minimum payment. They compare this to paying $50 more per month.

What is a credit score and why does it matter?

• Apply
• Analyze
• Evaluate
• Create
• Social Awareness
• Decision-Making

Activity 02

• Think-Pair-Share
• 20 min · Pairs

Think-Pair-Share: Credit Score Scenarios

Provide scenarios (e.g., missing a payment, maxing out a card). Pairs discuss whether these actions help or hurt a credit score and why that score will matter when they want to rent an apartment later.

How do credit cards work?

• Understand
• Apply
• Analyze
• Self-Awareness
• Relationship Skills

Activity 03

• Formal Debate
• 40 min · Whole Class

Formal Debate: Credit Cards vs. Debit Cards

Divide the class to argue the pros and cons of each. Focus on points like fraud protection and rewards versus the risk of overspending and high interest rates.

What are the dangers of accumulating high-interest debt?

• Analyze
• Evaluate
• Create
• Self-Management
• Decision-Making

A few notes on teaching this unit

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Watch Out for These Misconceptions

• A credit card is extra money I have.

  Students often view a credit limit as income. A hands-on modeling of a 'loan' where they have to pay back more than they 'borrowed' helps them realize credit is just spending future income today.

• If I don't use credit, I'll have a perfect credit score.

  Many believe no debt equals a good score. Use a gallery walk of credit reports to show that having no history can be just as difficult for lenders as having a poor history.

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Methods used in this brief

• Simulation Game
• Think-Pair-Share
• Formal Debate