Borrowing Money

Division IV: Gr. 10-12

Using Credit and Debt Responsibly

As youth get older, they start to face the prospects of borrowing money to help with major expenses – e.g., post-secondary education, training, starting a business, cars. It is important to help youth understand the different kinds of loans there are, where one can take out a loan, how loans are negotiated, the types of costs they will face, the importance of paying back loans on time to avoid penalties – and to pay off loans as quickly as possible. Youth should be aware of the importance of one’s credit rating and how to establish and maintain a good credit rating – and how to access and check their credit rating. Youth should be aware of the information that will be important to lenders and the factors that can influence whether they will be able to get a loan or not. Youth should be aware of factors that can influence the rate of interest they may be asked to pay. Managing debt responsibly is one of the most important financial skills to be able to avoid financial stress and anxiety.

Please Note: Teaching Units provided are for support and consideration by teachers and are not prescriptive.

Learning Map and Supports for Instruction

The “Learning Map” identifies teaching opportunities in Alberta’s curriculum for each topic and you will find them as part of the Support Teaching Materials provided here. Teachers can, of course, integrate the target areas of financial knowledge, skills, attitudes, and behaviours anywhere they can find a fit. The Supports for Instruction provide videos, animations, and links to other resources to support teachers in their efforts to improve the financial literacy of their students.