Keys to Your Financial Future Module 2-Good Credit: Your score in the game of life Session Outcomes

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Keys to Your Financial Future

Module 2-Good Credit:

Your score in the game of life
Session Outcomes

By the end of the training, participants will be able to:

  1. Understand good credit as a productive asset and explain the ways to build and maintain good credit histories and scores.

  2. Explain the difference between credit and debt.

  3. Explain the way credit decisions are made using the “Four Cs” framework.

  4. Describe the difference between secured and unsecured debt.

  5. List how and where to get credit reports and credit scores.

  6. Read and interpret information on a credit report.

  7. Explain how credit scores are created and used.

Materials Needed

  • Flip charts

  • Markers

  • Tape

  • Card stock with question (Section 1)

  • Scripts for mini-skits (Section 2)

  • Fake money in $10 and $100 increments (Section 2)

  • Large self-adhesive notes (10 for each small group) or brightly colored paper (Section 5)

  • Example Credit Reports (Section 7)

  • Other supplies for teach back (Section 8)

  • Credit scoring card sets printed on 2” X 3 ½” business cards (Avery 8371) (Section 9)

  • Brightly colored paper for participants to make airplanes (Section 10)

  • Flip charts or white boards

  • Markers for facilitator and participants

  • Tape

  • Session Evaluations

Prepared visual aids including:

  • Credit Matters (Visual Aid 2.1)

  • Credit is . . . (Visual Aid 2.2)

  • Types of Credit (Visual Aid 2.3)

  • How Credit Works (Visual Aid 2.4)

  • Key Terms 1 (Visual Aid 2.5)

  • Key Terms 2 (Visual Aid 2.6)

  • Answers to KEY ACTIVITY—Amortized versus Revolving Credit (Visual Aid 2.7)

  • Credit vs. Debt (Visual Aid 2.8)

  • How Credit May Help You (Visual Aid 2.9)

  • When You Owe Money . . . (Visual Aid 2.10)

  • Debt to Income Ratio (Visual Aid 2.11)

  • Gross Income (Visual Aid 2.12)

  • Debt to Income Limits (Visual Aid 2.13)

  • How to Use the Debt to Income Ratio (Visual Aid 2.14)

  • Why Credit Reports ARE Important (VA 2.15)

  • The Credit Reporting Agencies (VA 2.16)

  • Can You Have a Credit Report if You are Under 18? (VA 2.17)

  • Instruction for Teach Back (Visual Aid 2.18)

  • Credit and the Opportunity Passport™ (Visual Aid 2.19)

  • FICO Score Distribution (Visual Aid 2.20)

Examples are provided in the PowerPoint Slides that accompany this module. They can be transferred to flip chart paper or used as a slide show.

Overview of Key Activities

Key Activities

Covered in the Training

NOT Covered in the Training

KEY ACTIVITY—Amortized Loan versus Revolving Credit

KEY ACTIVITY—The Trouble with Credit Case Studies

KEY ACTIVITY—Understanding the Debt-to-Income Ratio

KEY ACTIVITY—Using the Debt-to-Income Ratio

KEY ACTIVITY—Reading a Credit Report

KEY ACTIVITY—Know the 30% Limit

KEY ACTIVITY—What Makes Your Score Go Up or Down?

KEY ACTIVITY—Understanding the Credit Utilization Rate

X (optional)

X (optional)


X (optional)





Keys to Your Financial Future Steps

This is a list of the steps to building the Asset Building Plan within Module 2: Good Credit: Your score in the game of life.

  • Keys to Your Financial Future Step 2.1: Calculate Your Debt-to-Income Ratio

  • Keys to Your Financial Future Step 2.2: Order Your Credit Report

  • Keys to Your Financial Future Step 2.3: Credit Report Review Checklist

  • Keys to Your Financial Future Step 2.4: Disputing Errors on Your Credit Report

  • Keys to Your Financial Future Step 2.5: Credit Repair and Credit Building Plan

Keys to Timing the Facilitation of the Module

This module contains 3 hours-worth of material. This provides the facilitator with options for:

  1. Keeping the training as is leaving out the optional sections.

  2. Replacing sections of the training determined less relevant for the young people they serve with other material.

  3. Adding another session to ensure young people have ample time to explore this topic.

Section within Module

Section Titles

Time Without Optional Sections

Optional Sections

Section 1


10 minutes

Section 2

Credit: Borrowing Money

  • Facilitated Discussion

  • Presentation

  • Mini Skit

20 minutes

10 minutes

Section 3

The Trouble with Some Credit (OPTIONAL)

  • Case Study

15 minutes

Section 4

Credit versus Debt

  • Facilitated Discussion

5 minutes

Section 5

How Credit Decisions are Made

  • Brainstorm

  • Role Play (Optional)

5 minutes

15 minutes

Section 6


  • Large Group Exercise

  • Exercise in Pairs (Optional)

10 minutes

10 minutes

Section 7

Character Part 1: Credit Reports

  • Review an Example

  • Reading a Credit Report

  • Presentation

30 minutes

Section 8

Repairing, Building and Maintaining Good Credit

  • Teach Back by Creating Commercials, Billboards, Raps or Jingles

  • Presentation

20 minutes

Section 9

Character Part 2: Credit Scores (OPTIONAL)

  • Facilitated Discussion

  • Exercise in Triads

  • Stand Up, Sit Down (Voting by standing)

20 minutes

Section 10

Closing (OPTIONAL)

  • Most Surprising Thing Airplane

5 to 10 minutes depending on group size

Time estimate

100 minutes

Not including 2, 10 minute breaks

80 minutes

Not including breaks

Facilitation Materials—Module 2: Good Credit:

Your score in the game of life

Please note that the numbers indicating different sections in the facilitator’s guide do not correspond to section numbers in the participant workbook. These are included to help you keep track of the overall order of activities in the facilitator’s guide and during the training. Please consult the “pages in the participant workbook” section at the beginning of each activity as well as the page number references throughout the instructions to ensure you are properly referencing the participant workbook.

Section #1: Credit

Estimate of Time:

10 minutes

Pages in Participant Workbook:

2 - 4

Materials Required:

  • Blank flip charts for recording participant responses

  • Markers and tape

  • Card stock with question sets. Use like color paper for each set.

  • Card sets (see template following the section). One set for each group of participants (participants are in pairs)

  • Prepared visual aid: Credit Matters (Visual Aid 2.1)

  • Prepared visual aid: Credit is . . .(Visual Aid 2.2)

Facilitator Instructions

Materials, Visual Aids & Notes

Vote with Your Body

Use the following instructions to facilitate the opening activity.

Note to Facilitator: Before the session, complete each set of choices on card stock. Hang them so only one set can be viewed at a time.

Set 1: Credit is generally good. VS Credit is generally bad.

Set 2: Credit is an asset. VS Credit is NOT an asset.
Set 3: Credit is too complicated to understand. VS Credit is a financial tool.
Set 4: “I am too young to worry about credit.”

I never want to use any credit.”

This information does not apply to me.”

I can’t wait to learn more about this topic.”

  • After each set, ask at least one participant to explain her/his choice.

  • Try not to set this up as a debate; facilitate a dialogue.

Summarize using the following:

  • You may have many associations with credit.

  • Most of these come from your experiences or the experiences of the people you know.

  • Many people have gotten into trouble with credit.

  • But credit can be useful. In fact, good credit is a productive asset.

  • Whether you want to use credit or not, credit will matter to you.

  • Credit matters if you want or think you may one day want:

    • A job

    • An apartment

    • A car

    • Insurance

    • Education or training after high school

    • Utilities

    • A cell phone

    • A house

  • The trouble with credit is that it can be confusing.

  • And one of the most confusing aspects of credit is how the term “credit” is used. The term credit can mean a lot of different things.

  • Review uses of the term “credit.”

Card stock with question sets. Use like color paper for each set. Hang the cards far enough apart to make the separation between or among the groups clear, but close enough to facilitate a quick dialogue among the groups.

Pages 2 and 3

Credit Matters (Visual Aid 2.1)

Credit is . . . (Visual Aid 2.2)

Pages 3 and 4
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