Business Studies · 3rd Year

Active learning ideas

Borrowing and Credit

This topic demystifies the world of borrowing, transforming abstract financial concepts into practical life skills your students will use for the rest of their lives.

• NCCA Curriculum Specifications
• Junior Cycle Business Studies Specification: Personal Finance Strand, LO 1.6

• 25–40 min
• Pairs → Whole Class
• 3 activities

Activity 01

• Stations Rotation
• 40 min · Small Groups

The Car Loan Challenge

In small groups, students analyse two simplified loan offers for a used car: one from a major Irish bank and one from a local credit union. They must calculate the total cost of credit for each and prepare a short presentation recommending the best option, justifying their choice based on cost and other factors.

Identify the main sources of credit available to consumers in Ireland.

Facilitation Tip

Provide realistic but simplified loan documents to help students focus on the key variables like APR and term.

What to look for

An exit ticket task where students must list two pros and two cons of using a credit card for a large purchase.

• Remember
• Understand
• Apply
• Analyze
• Self-Management
• Relationship Skills

Activity 02

• Stations Rotation
• 25 min · Pairs

Deconstructing the Deal

Working in pairs, students examine real advertisements for Irish credit cards from newspapers or websites. They identify the persuasive marketing language used and then pinpoint the crucial financial details like the APR, annual fees, and introductory offers.

Explain the concept of interest and calculate the total cost of a simple loan.

Facilitation Tip

Prompt students to consider what information is emphasised in the ad versus what is in the small print.

What to look for

A structured question in an exam requiring students to calculate the total cost of a €1,500 loan over 2 years at 8% simple interest and advise whether the borrower should accept the offer.

• Remember
• Understand
• Apply
• Analyze
• Self-Management
• Relationship Skills

Activity 03

• Stations Rotation
• 30 min · Whole Class

The Great Payment Debate

Divide the class into two teams to debate the motion: 'A debit card is always a better choice than a credit card for everyday spending'. Each team researches and presents arguments, considering consumer protection, budgeting, rewards, and the risk of debt.

Compare the advantages and disadvantages of using a credit card versus a debit card for purchases.

Facilitation Tip

Act as a moderator to ensure the debate remains focused on the financial pros and cons of each payment method.

What to look for

Students use a 'traffic light' system to rate their confidence in explaining key terms like APR, Principal, and Credit History to a peer.

• Remember
• Understand
• Apply
• Analyze
• Self-Management
• Relationship Skills

A few notes on teaching this unit

Begin with the core concept of 'why people borrow', using relatable examples like buying a phone or funding education. Introduce the main sources of credit in Ireland, contrasting a local credit union with a national bank. Use the CCPC's online loan calculators with the class to model how to determine the total cost of credit before asking students to perform calculations themselves.

By the end of this topic, your students will be able to critically evaluate different borrowing options available in Ireland and calculate the true cost of a loan, making them more informed and confident consumers.

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Watch Out for These Misconceptions

• A credit card is just free money you can spend.

  A credit card is a form of loan. The bank pays the shop for you, and you owe the bank that money. If you don't repay the full amount by the due date, you will be charged interest, making your original purchase more expensive.

• The interest rate (APR) is the only cost of a loan.

  While the Annual Percentage Rate (APR) is the main cost, some loans can have other charges. These might include set-up fees, administration charges, or penalties for missed payments. It is vital to read the terms and conditions to understand the total cost of credit.

• My credit history doesn't matter until I'm older and want to buy a house.

  Your credit history starts with your first loan or credit product, which could be a mobile phone contract. Lenders in Ireland use your credit report from the Central Credit Register to decide whether to lend to you for anything, so building a positive history of repaying on time is important from the start.

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Methods used in this brief

• Stations Rotation