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

1. CREDIT COLLEGE: A Credit Card Game Presented by: Neal Smith Extension Area Specialist – 4-H

2. 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.”

3. 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

4. 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.)

5. How Credit Cards Work Pay merchant using credit card Your signed credit card slip Charge Amount $40 Sally Spendthrift Merchant You pay credit card company Merchant sends charge to Credit Card Company You Credit Card Company pays merchant and sends you a bill Credit Card Issuer

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

7. 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

8. 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

9. Player Worksheet Example

10. 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

11. 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”

12. 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.”

13. 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.”

14. 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.”

15. 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.”

16. 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

17. 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

18. 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

19. 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

20. Credit College For more information about Credit College: A Credit Card Game, please contact: F. Neal Smith Extension Area Specialist – 4-H 605 Airways Blvd. Jackson, TN 38301 731-425-4715 Email: fsmith3@utk.edu