Credit Scores
- Jul 10
- 2 min read
Help students with special needs understand the value of a good credit score with this short lesson from Financial Literacy by Transition 2 Life and Daily Living Skills. We all know that a good credit score can save us thousands of dollars, but that might not mean anything to young people who are just started to use credit. This two-page lesson will demonstrate in clear numbers what a good credit score can provide.
Beginning the Lesson
Pass out the worksheet. As you do, explain that a credit score is like a report card on your credit history and how well you manage your money. Explain that scores range from 300-850 and fall into categories that resemble A’s, B’s, C’s, D’s, and F’s just like grades. People with low credit scores have to pay higher interest rates so the lender can protect themselves against people “defaulting” or not paying the money back. People with high credit scores get to pay a lower interest rate because their credit history shows that they are good at paying money back.
Have students examine and note the cost differences listed on each page. Then use the worksheet to help them calculate the additional costs for each reduction in credit rating. Note that each time their credit falls, they’ll have to pay substantially more in interest on their loan.
Speculate ways that they might be able to raise their credit score. Note that next week, they’ll have a lesson on how to raise their credit score.
For More Information
And, while the lessons in this blog can stand alone, they work best when paired with the Financial Literacy course from Susan Traugh’s Transition 2 Life curriculum. This one-semester course is offered in both a special education edition and a companion text for general education students. Find it here!
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