Students watch a video and answer questions to learn how long it takes to pay off a credit balance when making only the minimum payment.
Topic
Borrow (Managing credit)
Subject
CTE (Career and technical education), Math
Grade Level
Middle school (6-8)
Duration
15-20 minutes
Big idea
The more you pay on your credit card bill each month, the less you will pay over time.
Essential questions
- What is a minimum monthly credit card payment?
- How is a minimum monthly payment calculated?
Objectives
- Learn how credit card companies calculate minimum monthly payments
- Calculate how many months it takes to pay off a credit card balance when making only the minimum monthly payment
What students will do
- Find out what interest is and how credit card companies calculate it.
- Consider how paying more than the minimum monthly payment affects the amount of time it takes to pay off a credit card balance.
Download activity
Teacher guide
cfpb_building_block_activities_understanding-minimum-payments_guide.pdf
Student materials
cfpb_building_block_activities_understanding-minimum-payments_worksheet.pdf
Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.
