Lesson
Good Debt vs Bad Debt
Summary
Debt isn't automatically good or bad. The same $400 loan can build wealth or destroy it. This lesson explores how borrowing gets classified as good or bad, and why predatory lenders turn urgent needs into inescapable traps.
Bellringer: The 391% Payday Loan
- Read the payday loan scenario aloud; give students one minute to decide.
- Reveal the hidden 391% APR and let students react to the trade-off.
Instruction
- Define debt vs. credit, then good vs. bad debt.
- Walk through predatory loan types and why they exist.
Discussion: Grey-Area Debt
- Run three thumbs-up/thumbs-down votes: used vs. new car, credit card charges, kid entrepreneur.
- Push students to defend which debt is 'better' and where good turns bad.
Activity: Debt Payoff Calculator
- Students run three loan comparisons in the Debt Payoff Calculator and fill in the table.
- Circle the run that wasted the most on interest and note one fix.
Wrap-Up & Assessment
- Are student loans or mortgages always automatically "good debt"? Why or why not?
- Explain the exact difference between having a $1,000 credit card limit and having $1,000 in debt.
| Est. Time | Activity | Description |
|---|---|---|
| 7 min | Bellringer: The 391% Payday Loan |
|
| 10 min | Instruction |
|
| 13 min | Discussion: Grey-Area Debt |
|
| 10 min | Activity: Debt Payoff Calculator |
|
| 5 min | Wrap-Up & Assessment |
|
Lesson Prep
Debt Payoff Calculator
See how long it takes to pay off a loan.
Class Presentation
Includes a 19-slide deck with teacher notes. Present from Banzai, download a PDF, or copy it to Google Slides.
Presentations, Ready to Go
- Built-in PresentationPresent full screen, straight from Banzai
- Copy to Google SlidesMake an editable copy for your class
- Download or PrintSave as a PDF or print
- Teacher NotesSlide-by-slide guidance, printable as one handout
Unit 6: Credit & Borrowing
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Good Debt vs Bad Debt
Debt isn't automatically good or bad. The same $400 loan can build wealth or destroy it. This lesson explores how borrowing gets classified as good or bad, and why predatory lenders turn urgent needs into inescapable traps.
Debt Recovery
Getting out of debt isn't just about the math—it's about matching a strategy to how your brain actually works. This lesson explores the snowball and avalanche methods and how each balances numbers against human behavior.
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