Evaluating the various methods of financing a purchase (e.g., loan, installment plan, layaway, credit card) should include use of a decision-making model, as well as the following actions:

Defining terms used to describe credit
Examining the opportunity cost of credit
Weighing risks involved in no-payment/no-interest financing
Explaining the types of credit (open- and closed-end, service credit, flex pay, secured and unsecured loans)
Describing sources of credit and the associated interest rates and fees (retail stores, banks and credit unions, finance companies, pawn shops, payday loans, title loans, private lenders)
Determining the best type and source of credit for sample purchases
Verifying the credibility of online lenders

Teacher Resource:

Bureau of Financial Institutions, Virginia State Corporation Commission (SCC) (https://www.scc.virginia.gov/pages/Bureau-of-Financial-Institutions)