Credit College: A Credit Card Game

1. Credit College: A Credit Card Game Presented by: F. Neal Smith Western Region 4-H Specialist

2. Credit College • Credit card misuse is a common problem in today’s society. • One in seven teens between ages of 12-17 has his or her own credit card. • People prone to erratic spending tend to not use credit cards wisely. • Credit College prepares youth to make wise decisions when there is a need to use credit for purchases. • Sources include “Money Smart”,“An Asset Builders Guide toYouth and Money” and “On My Own” curriculums.

3. Credit College • Introduces youth to different types of credit cards • Automatic Teller Machine (ATM) • Debit Card • Charge Card • Credit Card

4. How Credit Cards Work Your signed credit card slip Charge Amount $40 Sally Spendthrift Merchant You pay credit card company You Credit Card Issuer

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

6. Recommended that game be played with four Players and one Cashier Each Player selects three “Situation” cards Career Housing Transportation Students complete a “Player Worksheet” by deducting Housing and Transportation Expenses from their Net Salary Cashier pays Players their “net balance” from the worksheet Each Player receives a “Credit Card” with a $500 limit and begins the game with a $100 balance Playing the Game

7. Player Worksheet Example:

8. Playing the Game • Players begin at “Start” block and roll die to advance. • Each color block represents a card that Player must draw. • Player reads card aloud and follows instructions. • Cards include: • Surprises • Expenses • Oh No! • Credit Savvy • Credit Pitfalls

9. Surprises • Each Surprise card has a positive, unexpected, monetary situation that Player collects from Cashier. • Surprise cards include such things as: • “You found a watch and received $20 reward for returning it.” • “Your Uncle sent you $50 for your birthday.” • “You fixed your neighbor’s faucet and he paid you $30.”

10. Expenses • Aside from monthly car and house payments, Players also experience other monthly 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.”

11. 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.” • “Its your best friend’s birthday and you spend $50 on a gift.” • “Your truck needs new tires. Pay $250 to Cashier.”

12. 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.” • “You shopped around for a lower interest rate, going from 21.5% to 9.9%. Collect $100.”

13. Credit Pitfalls • Credit Pitfalls allow youth the opportunity to experience the negatives of using credit unwisely. • Examples of Credit Pitfalls include: • “Your borrowed from one credit card to pay off another. Pay the Cashier $200.” • “You did not pay your credit card bill on time. Pay $35 late charge.” • “You selected a credit card with an annual fee. Pay $75 to Cashier.”

14. 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 the minimum payment. Special Blocks

15. Credit College • When a Player is unable to pay their bills, they must go directly to Credit College • Each Credit College card has a question about the use of credit that the Player must answer • If the Player answers the question correctly, a monetary award is given to Player to help pay his bills • The Player must remain in Credit College until he has enough money to get out of debt

16. Winning the Game • Each passing of “Start” symbolizes a month • The Player receives a “paycheck” (net pay) each time they pass “Start” • Once each player has passed “Start” four times or three complete cycles of the board, the game is completed • Each player must then pay all debts possible to the Cashier • The winner is the Player with the most cash, and least amount of debt

17. Credit College For more information on this or other 4-H Educational Materials, please contact: F. Neal Smith Western Region 4-H Specialist 605 Airways Blvd Jackson, TN 38301 (731) 425-4715 Email: fsmith3@utk.edu