Pay Check Advance Loans Lesson Plan Information | Lesson Plan Activities | Printable version (including handouts) (PDF)

Standard: Use Math to Solve Problems and Communicate Outcomes Learners will use their knowledge of interest to compare data from various pay check advance companies and evaluate the positives and negatives of pay check advance loans.

Classroom Information

GED Descriptors:      Social Studies , Math Roles:      Family, Worker Program Type(s)      ABE, GED, Urban, Rural NRS Learner levels (ABE/GED)       3, 4, 5, 6 Time frame:      1.5 hours

Keywords

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Standard: Use Math to Solve Problems and Communicate

Component of Performance How activity addresses component Understand, interpret, and work with pictures, numbers, and symbolic information. Students often have limited financial resources. When they get into financial difficulties, they sometimes borrow from a pay check advance institution. To better understand the implications of this type of loan, students need to be able to interpret and work with the numerical information that is presented to them. Apply knowledge of mathematical concepts and procedures to figure out how to answer a question, solve a problem, make a prediction, or carry out a task that has a mathematical dimension The students have to be able to use the information given to figure out interest rates, amount to be paid back, and the implications if they do not pay back the loan on time. Define and select data to be used in solving the problem The students need to understand the terms and select the proper data to help them calculate the interest and the amount to be paid back. Determine the degree of precision required by the situation The student should be able to figure the interest rate to the nearest percent and the amount owed to the nearest cent. Solve problem using appropriate quantitative procedures and verify the results are reasonable The student should be able to find rate of interest, the amount of interest, and the total amount owed. Communicate results using a variety of mathematical representations, including graphs, charts, tables, and algebraic models The information can first be communicated in a chart for comparison, and then in answers to selected questions.

Purposeful, Transparent, Building Expertise

Purposeful and Transparent Students often have limited financial resources. With low paying jobs, when an emergency happens like a car breaking down or needing medical care, they often do not have financial resources to pay for these emergencies. pay check advance companies can be an emergency stop gap, but often end entangling the individual into a web of debt. Contextual These pay check advance companies are available in most towns and online. They are very accessible for anyone in the community. Many of our learners are living on a financial tightrope, and these companies look like an easy solution to their problems. Building Expertise Learners should look at their own banks and previous loan experiences. Using their knowledge of interest, they should be more informed consumers in the future.

Lesson Designer Gail Morgan Tolles Technical Center (614) 8779638 gailgmorgan@hotmail.com

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