Presented by: Neal Smith Extension Area Specialist – 4-H.

Presented by:Neal Smith

Extension Area Specialist – 4-H

CREDIT COLLEGE:A Credit Card Game

Background• Growing number of teens with cards• Credit cards are NOT the problem– Pay balance each month

• Misuse of credit cards– Erratic spending habits– Not a license to overspend

“Credit College prepares youth to make wise decisions when there is a need to use credit for

purchases.”

What is Credit?• Credit allows consumer to:– Pay over time– At a later date

• Credit cards are one form of credit– Represent a revolving line of credit– Continue purchasing up to a limit– Must pay a portion of the bill each month

• Form of a LOAN

Types of “Credit” Cards• Introduces youth to different types of “credit”

cards:– Automatic Teller Machine (ATM)– Debit Card– Charge Card (American Express, Gas Card)– Credit Card (Visa, MasterCard, etc.)

How Credit Cards Work

Your signed credit card slip Charge Amount $40

Sally Spendthrift

You

Credit Card Issuer

Merchant

You pay credit card company

Credit Card Company pays merchant and

sends you a bill

Pay merchant using credit

card

Merchant sends charge

to Credit Card

Company

How Credit Cards Work• Other items discussed:– Carrying a Balance– Interest Charges– Glossary or “Terms You Should Know”– Avoiding Credit Pitfalls

Playing the Game• Four Players and One Cashier• Player selects three “Situation” cards– Career– Housing– Transportation

• Career Situation card indicates:– Net salary for 30-day pay period– Player records amount on Player Worksheet

Playing the Game• Housing & Transportation cards:– Indicate monthly payment amounts– Player records amounts on Worksheet

• Student completes Player Worksheet by:– Subtracting expenses from Net Salary

• Cashier pays Players their “net balance”• Each player receives a Credit Card:– With a $500 limit– Begins game with a $100 balance

Player Worksheet Example

Playing the Game• Begin at “Start” block and roll die to advance• Draw a card matching the colored block • Read card aloud and follow instructions• Cards include:– Surprises– Expenses– Oh No!– Credit Savvy– Credit Pitfalls

Surprises• Each Surprise card has:– A positive, unexpected, monetary situation– Player collects from Cashier

• Surprise cards include such things as:– “You found a watch and received $20 reward”– “Your Uncle sent you $50 for your birthday”– “You fixed your neighbor’s faucet and

he paid you $30”

Expenses• Aside from monthly car and house payments,

Players also experience other Expenses• Expense cards include such things as:– “Your car is getting low on gas. Pay Cashier $25.”– “Your school loan is due. Pay Cashier $80.”– “Pay $25 to get your clothes out of the cleaners.”– “Need groceries! Pay Cashier $50.”

Oh No!• Players will also experience those little

“unexpected” things with the Oh No! cards• Oh No! cards include such things as:– “Go to the dentist for a new filling, and pay $50.”– “It’s your best friend’s birthday and you spend $50

on a gift.”– “Your truck needs new tires. Pay $250 to Cashier.”

Credit Savvy• Credit Savvy cards reward Players for using

credit wisely• Examples of Credit Savvy cards include:– “You deducted the amount of your credit card

purchase from your checking account. Collect $50.”

– “You paid your credit card balance in full and saved $25 in service charges.” Collect amount from Cashier.”

Credit Pitfalls• Credit Pitfalls allow youth the opportunity to

experience the negatives of using credit unwisely

• Examples of Credit Pitfalls are:– “You borrowed from one credit card to pay off

another. Pay the Cashier $200.”– “You did not pay your credit card bill on time. Pay a

$35 late charge.”– “You selected a credit card with an annual fee. Pay

$75 to the Cashier.”

Special Blocks• Cost of Living Scale – Each time a Player lands

on or passes this block, they must pay the amount listed based on the money they have on hand

• Make Credit Card Payment – If the Player has a balance, they can chose to pay it in full or make at least the minimum payment

Credit College• When a Player is unable to pay their bills, they

must go directly to Credit College• While in Credit College:– At the Player’s turn, the Cashier draws a Credit College

card and reads it aloud– If the Player answers the question correctly, he

receives a monetary reward– Player can use rewards to pay his bills

• Player must remain in Credit College until he has enough money to get out of debt

Winning the Game• Each passing of “Start” symbolizes a month• The Player receives a “paycheck” (net amount

from Worksheet) each time they pass “Start”• Once each Player has passed “Start” four

times, or until the allotted time is up, the game is completed

• Note on the Worksheet the Interest Charges added at the beginning of each round

Winning the Game• Each Player must then pay all debts possible to

the Cashier• The Winner is the Player with the most cash,

or least amount of debt

Credit College

For more information about Credit College: A Credit Card Game, please contact:

F. Neal SmithExtension Area Specialist – 4-H

605 Airways Blvd.Jackson, TN 38301

731-425-4715Email: fsmith3@utk.edu