Debt, Credit, and Investment Basics

This unit develops practical skills for managing consumer debt, understanding how credit reports and scores work, and evaluating basic investment options and risk management. Students build on introductory budgeting and saving concepts to create repayment plans, assess risk tolerance, and begin strategies to improve credit and diversify assets in preparation for longer-term financial planning.

Learning Objectives

• Analyze distinctions between good, bad, and unexpected debt by comparing costs (interest, fees, time to repay) across at least three real-world scenarios and determining when borrowing is financially justifiable
• Apply debt-reduction strategies (e.g., snowball, avalanche, consolidation) to construct a written 12-month repayment plan for a provided case study that includes projected payoff timeline and total interest paid
• Evaluate common investment vehicles (savings accounts, CDs, stocks, bonds, mutual funds, retirement accounts) and assess how risk tolerance and diversification principles affect an appropriate beginner allocation
• Demonstrate how to obtain and interpret a credit report and credit score by identifying key report elements, locating errors, outlining the dispute process, and producing an action plan with at least three concrete steps to boost credit rating