Summary
Not all loans are created equal—a mortgage and a payday loan share a name but live in different financial universes. This lesson explores secured vs. unsecured loans, common loan types, and loan structures.
Bellringer: Loan or Trap?
- Display 3 loan scenarios — mortgage, auto loan, payday loan.
- Students rank them best to worst with one-sentence reasoning.
Instruction
- Walk through secured vs. unsecured loans.
- Introduce 5 major loan types and the three payment structures: installment, revolving, and service credit.
Discussion: Credit Matchups
- Walk through three borrower matchups
- Surface why payment structure and credit score change total cost.
Activity: Debt Payoff Calculator
- Students run the Debt Payoff Calculator.
- Compare $10,000 over 4 years at 5% vs. 22% — record monthly payment and total interest.
Wrap-Up & Assessment
- What makes a loan secured vs. unsecured?
- When does a longer-term loan cost you more?
| Est. Time | Activity | Description |
|---|---|---|
| 5 min | Bellringer: Loan or Trap? |
|
| 10 min | Instruction |
|
| 12 min | Discussion: Credit Matchups |
|
| 10 min | Activity: Debt Payoff Calculator |
|
| 8 min | Wrap-Up & Assessment |
|
Lesson Prep
Debt Payoff Calculator
See how long it takes to pay off a loan.
Class Presentation
Includes a 20-slide deck with teacher notes. Present from Banzai, download a PDF, or copy it to Google Slides.
Presentations, Ready to Go
- Built-in PresentationPresent full screen, straight from Banzai
- Copy to Google SlidesMake an editable copy for your class
- Download or PrintSave as a PDF or print
- Teacher NotesSlide-by-slide guidance, printable as one handout
Unit 6: Credit & Debt
Loan Mechanics
Every loan is just four variables fighting each other. This lesson breaks down how principal, interest rate, term, and down payment interact — and why amortization means you pay mostly interest first.
Loan Types
Not all loans are created equal—a mortgage and a payday loan share a name but live in different financial universes. This lesson explores secured vs. unsecured loans, common loan types, and loan structures.
Mortgages & Amortization
A 30-year mortgage costs more in interest than the house itself—and most buyers never realize it. This lesson unpacks how amortization quietly front-loads interest, why down payments and PMI matter, and how a few extra dollars can save tens of thousands.
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