Making Decisions About Credit Cards

7th Grade Mathematics WebQuest

Designed by

Mrs. Wynne

Introduction

Task

Process

Evaluation

Conclusion

Teacher Page

Credits

 


The Introduction

We all know that paying cash is the best way to purchase an item instead of paying interest on a credit card. However, we do not always have the money when we need or want a particular item. In this WebQuest you will learn how credit cards work when they are used to make purchases. Credit cards are convenient because they are easier to carry instead of a lot of cash. They can also be used to borrow money when you do not have enough to pay for the item up front. However, credit cards can be deceiving if you do not understand how they work. Some people see credit cards as "free money" until they receive the monthly bill. The credit card company adds a finance charge to the unpaid balance. This fincance charge is the interest you pay the company for borrowing their money. Your job is to figure out which credit card would offer you the best terms. You should already be familiar with the following terms: annual fee, interest rate, and minimum monthly payment. You will be creating a HyperStudio or PowerPoint slide show presentation for your final project in this unit.

 


The Task

 

Suppose you are planning to purchase a computer for $1849.97 (total cost). You will be making this purchase on a credit card, but you need to research first to find out what credit card will offer you the best terms. This card will not be used for any other purchases, and you will not be paying the purchase off right away. You will be financing it over four months. You need to choose three credit cards, research each one, and complete the following tables to determine which card will save you the most money. This project involves using the Internet to research three different credit cards.


The Process

  1. First you'll be assigned to a partner where each of you will take on a different role (facilitator, recorder, etc...).

  2. Once you've picked a role to play, make sure that you have scratch paper, pencils, and calculators available.

  3. Next, you need to search the following link below and find 3 credit cards that you would use to make your purchase.

  4. After you have found the credit cards, you need to research each card for the following information: annual fee, interest rate for monthly finance charge, and minimum monthly payment (percentage of balance).

  5. Then, you need to enter the information you found into the first table on the Credit Card Data Entry Form.

  6. Next, complete the second table in the Credit Card Data Entry Form, by using the information from the first table, to determine how much you will pay per month in finance charges on each of the three cards.

  7. Then, answer the questions that follow on the Credit Card Data Entry Form. Then print your responses and turn them in.

  8. Finally, you need to create a HyperStudio slide show presentation explaining how you decided which of the three cards would be best for a $1849.97 computer purchase. You need at least ten cards, five pictures, and three wordarts.

Research here!


The Evaluation

Your grade will be based mainly on three criteria:

  1. Responses to the Credit Card Data Entry Form

  2. HyperStudio slide show presentation

  3. Participation throughout unit

 

Each person will be graded individually on the participation. You will be graded as a pair on theCredit Card Data Entry Form and HyperStudio presentation.

 

 

  Beginning

1

 Developing

2

 Accomplished

3

 Exemplary

4

 Score
Participation Little or no progress made Below expectations but some progress made Meets expectations Above expectations in all aspects
Calculate % of balance Little or no progress made Below expectations but some progress made Meets expectations Meets expectations and can apply it to a real life experience
Create a HyperStudio slide show presentation:

Explanation of credit card choice

10 cards

5 pictures

3 wordarts

 No explanation of card choice

Has 0-4 cards

1-2 pictures

1 wordart

 Incomplete explanation of card choice

Has 5-9 cards

3-4 pictures

2 wordarts

 Complete explanation of card choice

Has 10 cards

5 pictures

3 wordarts

 Applied explanation to a real life experience

Has more than 10 cards, 5 pictures, and 3 wordarts
Can apply finance charge to unpaid balance and calculate total Little or no progress made Some progress made Meets expectations Meets expectations and can apply finance charges to a real life experience
Understands how credit cards work Little or no understanding Has some understanding Meets expectations Meets expectations and can apply to a real life experience


The Conclusion

Now that you know how credit cards work, you can use this skill in real life to help make decisions about which credit card will save your family the most money on finance charges or whether to just pay the entire bill up front. However, remember to be careful because credit cards can be deceiving if you do not look into the fine printed details! If you borrow their money, you always pay back more than you borrowed. Hope you had fun making decisions about credit cards!

 


The Teacher Page

Objective: Students will learn how credit cards work by applying a credit card interest rate to a set dollar amount and figure monthly payments.

Needed Materials:

  1. Internet

  2. HyperStudio or PowerPoint

  3. Calculator

  4. Pencils

  5. Scratch paper

  6. Printer

 

This lesson is designed to cover six class periods of fifty minutes each.

  • Day 2: Complete chart 2 on the Credit Card Data Entry Form

  • Day 3: Finish chart 2 if needed and complete review questions on the Credit Card Data Entry Form

  • Day 4: Create HyperStudio slide show presentation

  • Day 5: Finish HyperStudio slide show presentation and begin class demonstrations of slide shows (Note: This can also be created in Microsoft PowerPoint)

  • Day 6: Complete class demonstrations of slide shows

 

Extension Idea: You may want your students to research sales tax rates using the Internet for several states and counties throughout the U.S. Apply the sales tax rates to the price of the computer ($1849.97) and use comparison shopping to determine which state(s) or even counties would be the cheapest to purchase the computer. Students should realize that some states and counties have different sales tax rates.

The Credits and References

www.creditcards.com

http://webquest.sdsu.edu/templates.htm

http://intgrunits.olivet.edu/.htm

ftp://www.manteno.k12.il.us/Graphics

www.gifanimations.com

www.animfactory.com

http://www.animatedgif.net/money/money.shtml

 

MATHISFUN!!!

Last updated on March 4, 2002. Based on a template from The WebQuest Page.