The High School Financial Planning Program® (HSFPP) will be retiring on July 31, 2021. Learn more about this decision.

Borrowing: Use—Don't Abuse

Lesson 2-2 Credit Costs

Even if you don’t need to borrow money today, you’ll soon be flooded with tempting offers for car loans, credit cards, cash-advance loans, cellphone service and more. Boosting your borrowing IQ now will prepare you for mindful decision-making whenever you are faced with a credit offer.

What You’ll LearnCompare the costs and terms of borrowing options. 

Taking it Home

  • Use the D-E-C-I-D-E decision-making process learned in Module 1 to establish criteria for selecting a phone plan and phone purchase based on your current needs and financial situation. Compare the terms of each plan, taking into consideration the advantages and disadvantages. (Find the D-E-C-I-D-E Steps on page 40 of the Student Guide.)

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  • Bring in car ads that include leasing options and financing information. Calculate out the cost of vehicles, comparing leasing versus purchasing. Discuss the financial issues (good and bad) related to leasing a vehicle. Who would be the best candidate to lease a car? When might it make sense to lease a car versus purchasing a car?

Related Resources

Talking Points for Parents

While your teen is learning about borrowing and credit, consider ways to reinforce learning from home.

  • Invite our teen to share what he or she is learning in class about compound interest and the actual costs of using credit.
  • If your teen is planning for a post-secondary education option (or another major expense), have a discussion about the role that borrowing will or will not play in covering the education costs.