Beacon Lesson Plan Library

Who Gets the Money?

Thomas Lucey


Working in groups, students determine the characteristics of a good loan. They also make practical application of what they learn.


The student understands advantages and disadvantages of various kinds of credit (for example, credit cards, bank loans, financing with no payment for 6 months).


-Copies of Loan Considerations sheets for each student (see associated file)
-Copies of Application problems (see associated file)
-Easel and pad to take notes


1. Place easel pad in a central viewing location
2. Ensure enough copies of the Loan Considerations sheets for all students. (see Associated File)
3. Print the Application Problems sheet, but REMOVE the answers prior to duplicating.


1: Read or discuss with students: Borrowings (or loans) occur when you use someone else’s money for your own purposes with the intent of repayment. The lender has a claim on the funds which are being used. There are many types of borrowings including credit cards, home loans (often
mortgages) and car loans. These types of loans are the most common to individuals and families. The largest loans are made to Governments and Businesses. THE PRICE OF THE LOAN
BORROWER AND THE NATURE AND TERMS OF THE LOAN. Today, the class will decide what the characteristics of good loans are and how to apply what they learn.

2. Count the class off into groups of five.

3. Give each student a copy of the Loan Considerations sheet (see Assoc. File). Assign each group with one of the five “P’s” associated with evaluating credit.

4. Instruct the groups to consider their credit area and brainstorm what characteristics, as a lender, a repayable loan should have in that area.

5. Reassemble the whole class and call upon each group for their characteristics, writing responses on the Easel Pad. Have student take notes since they will use these notes for the assessment.

6. Review and discuss with the students their answers and guide them toward an understanding of the correct considerations in each of the areas. Have students complete the Application Problems and then discuss the answers.

NOTE: This lesson also applies to the following Tennessee standards:
Social Studies
Curriculum Standards
Approved by the Tennessee State Board of Education
August 31, 2001
Seventh Grade
Content Standard: 2.0

Globalization of the economy, the explosion of population growth, technological changes and international competition compel students to understand, both personally and globally, production, distribution, and consumption of goods and services. Students will examine and analyze economic concepts such as basic needs versus wants, using versus saving money, and policy-making versus decision-making.


Assessment at this time will be formative. Students respond as to how they would present themselves when applying for a loan. This can be oral or written. Students may use their notes from the class discussion.

_____ Response addresses characteristics of all five areas.

_____ Response demonstrates using experiences from activity to support responses.

_____ Response indicates understanding of the advantages and disadvantages of different types of credit (i.e. Collateral, Return, Repayment.)

Students who are having difficulty will need feedback and additional practice with this concept.


- Have the students obtain brochures for credit card applications. Have them read the features advertised. What are they? What is requested for on any attached applications or small print? Discuss what the class thinks reading each part of the advertisement.

- Have the class look at the website for the Federal Deposit Insurance Corporation. ( Click to the Rules and Regulations. Review Part 345 of the FDIC Rules and Regulations and The Statement of Policy on Community Reinvestment. Discuss these documents. What do they say about the government’s expectations on lending

- Have the class research the following consumer protection lending laws. Have them explain why the laws were created.

Truth In Lending
Equal Credit Opportunity
Fair Housing
Real Estate Settlement Procedures Act

Web Links

Web supplement for Who Gets the Money?
Federal Deposit Insurance Corporation

Return to the Beacon Lesson Plan Library.