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 2-4 Rights and Responsibilities

You probably don’t think of a loan or credit-card application as a contract, but it is. By signing on the dotted line, you’re entering into an agreement between you and the lender about what each of you must or must not do. You have responsibilities you have to meet to uphold your end of the contract, but so does the lender.

What You’ll LearnExplore the rights and responsibilities of borrowers and lenders.

Taking it Home

  • Think about a right or responsibility that you take on at home or think you are ready to take on. Write a contract with your parents/guardians to clarify the rights and responsibilities for both you and your parents. Clarify the terms of the arrangement for work you do or privileges you have such as using the family car, following a curfew, or having a cellphone.

Learn More

  • Research and create a consumer protection marketing campaign for your school or community. Select either “identity fraud” or “rights and responsibilities of borrowers” for your campaign.
  • If borrowing is an option you are considering to pay for college, spend time comparing features of loans available for students. Especially take a look at the borrowing costs and repayment terms for types of federal loans – Perkins loan, subsidized Stafford loan, unsubsidized Stafford loan, and Parent Loans for Undergraduate Students (PLUS) – and for at least two types of private student loan options.

Related Resources

Talking Points for Parents

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

  • If your teen has permission to use a family phone, vehicle, debit card or credit card, discuss the responsibilities and expectations that go along with the authorized use.
  • Share a story about a time that you communicated with a business about a billing issue. Describe any procedures that were followed or any particular actions that were helpful.