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Be careful with credit! If you let debts pile up you can get into big trouble. Do your best to pay for things on time.

Think About It

Here are a few things to think about in class or on your own.

What excites you the most about money?



What scares you the most about money?


What interesting things have you seen people do with money on social media?


What is one important goal you would like to achieve with money?


What lessons have you learned already in your life about money?     


What is Money, Debt, and Credit?

Lesson One
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Learn what money is and the two words you gotta know from the start to survive: debt and credit. 

Most Important Ideas

What is Money?

A way to trade stuff between us with trust. 


Before money, we traded items directly. This method worked well in very small communities.

Soon basic types of money were created to make trade easier. Valuable items like shells, salt, or gold were used.


Finally, we created paper money. It only has value because our government says so, but it makes trade easier. Imagine buying a drink in a store with 10 chickens or 30 sea shells!


What is Debt

Debt is the money you owe.

When you get your hair cut, you can't just leave without paying. You owe the barber a debt. 


When you hand over the $20 dollars, your debt to the barber is eliminated. 

Anytime you owe money, whether it is rent, a car payment, or a phone bill, you have a debt. Most debts we pay off pretty quickly. 


What is Credit

If you can't pay a debt right now, you have to ask for credit.

What happens if you get your hair cut but you realize you don't have the 20 dollars to pay the barber?


You'll have to ask for credit so you can pay it later. 

She agrees to let you pay it back in a week, but there's a catch: she is going to charge you a dollar for the favor. She's letting you use credit, but now you owe 21 dollars instead of just 20.

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