Debt and Bankruptcy: Personal Financial Literacy Lesson

Here's a ready to go lesson about debt and bankruptcy for your high school students. It can be used in math class when learning about percentages and interest rates, in career and personal planning class when talking about budgeting and paying for university, or in a high school life skills class.

How to Use:

• Print either the second page handout OR the third page handout (with fill in the blanks) along with pages 4, 5, and 6.

• Use the handout to teach your students a definition of debt, a way to classify it, and seven types of debt from mortgages to payday loans.

• Students classify debt as good or bad debt and then research 5 different lenders and their current interest rates.

• Next, use the sample question to teach students how to calculate interest payments on a debt using the interest rate. Students complete four real-world sample questions.

• Lastly, use the handout about bankruptcy to teach students the basic information and have them research answers for two questions about the bankruptcy process.

• Complete answer key included!

Math Skills Required:

•Calculating percentages using decimals and numbers in the hundred thousands

•Dividing by 12

Grades to Use With:

This lesson is designed for high school students in grades 8-12, adult education classes, or high school special education classes.

What's Included:

7 Page PDF:

Teacher instructions

2 Versions of the Student handout (complete or fill in the blanks)

2 Page student worksheet about debt

1 Page student worksheet about bankruptcy

Complete Answer Key

If you want to continue this learning check out these products:

Interest Rates: has more information about why interest rates vary and more practice calculating interest payments.

Credit Score Board Game: teaches students about credit scores and they practice calculating them while playing a game.

Debit vs Credit Cards: a one-page handout to explain the differences between these two financial tools.