Computer-based Lesson - Predatory Lenders, Money Matters, and You by Julie Kastner

Integrating Computer Technology into the Classroom

Title:                    Predatory Lenders, Money Matters, and You

Learner Level:     Pre GED / GED

Pre-Instruction:   

Instructor will gather relevant materials such as names and locations (phone book) of local payday lenders, lending policy information – if available from local lenders, state law/policy regarding legality of payday lending or other forms of predatory lending (mortgage/refinancing especially) and generate thought provoking questions regarding the usefulness and/or consequences of such practices.  Internet, Word and Excel programs will be required and set up for instruction time, and prior training on such programs is beneficial but not mandatory.

Duration :            

1-3 hours depending upon class size, socioeconomic factors, discussion time, and detail desired for budgeting work.

Materials:            Phone Book

                              Handout Predatory Payday Lenders Trap Borrowers-

                              http://www.responsiblelending.org/pdfs/2b002-payday2005.pdf

                             Websites:

                              http://thebeehive.linktier.com/moneymadeeasy/default-flash.asp

                              http://www.responsiblelending.org/payday/index.cfm 

www.yahoo.com – directory search – “predatory lending,” “payday lending,” or other term student learns through exploration of other websites.

Objectives:         

To substantially improve student awareness of money issues, particularly those relating to predatory payday lending institutions, which are illegal in many states, but are flourishing in Ohio and growing at an alarming rate.  Expansion activities will include developing an Excel spreadsheet budget page for each student’s household, and creating a Word document developing a household “In Case of Emergency Financial Plan.”

Procedure:          

Teacher-led classroom discussion concerning basic budgeting issues, brainstorming about what types of situations result in financial crises, how students often handle financial emergencies (i.e. borrowing, credit cards, paycheck advance businesses, etc.)  Handout given and group reading time encouraged.  Students are then given the opportunity to research predatory lending issues as they pertain to their own financial situation using the above websites as starting points, and by also using Yahoo.com to research related topics.  Students are then asked to create an “In Case of Emergency Financial Plan” using Word of no more than a paragraph or two.  All students will then return to the classroom to share their plans and draw from each other’s ideas and suggestions.  Students will then work on a budget plan and create a basic spreadsheet design to be printed off and taken home to use for one month.  Follow up will take place periodically and adjustments made until such a time as students feel comfortable with budgeting.

Evaluation:          

Group evaluation, teacher and peer review.  Informal assessment with documentation in student portfolio of emergency plan and budget worksheet.