Debt, Credit, and Investment Essentials

This unit explores consumer debt, repayment strategies, basic investment vehicles, risk tolerance, diversification, and the role of credit reports and scores in personal finance. Students will learn to manage and reduce debt, evaluate investment options, and interpret and improve credit standing. It builds on foundational budgeting and saving skills and prepares learners to incorporate credit and investment decisions into broader financial plans.

Learning Objectives

• Analyze types of debt to distinguish good versus bad debt by calculating total borrowing costs, interest expense, and their impacts on a household budget
• Apply debt-management and repayment strategies (e.g., snowball, avalanche, consolidation) to simulated consumer scenarios to create payoff plans that minimize cost and time to repayment
• Evaluate a range of investment vehicles (stocks, bonds, mutual funds, ETFs, retirement accounts) and recommend asset allocations based on assessed risk tolerance, time horizon, and financial goals
• Demonstrate how credit reports and credit scores are produced by interpreting sample credit reports, identifying score-driving factors, and developing an actionable plan to boost credit rating