How do the loan principal, interest rate, and term all factor into a monthly car payment? Introduce your class to some of the key steps and considerations of obtaining a loan and purchasing a car.

Concepts

buying a car, interest rates, loans, purchasing, financial goals, budgeting

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Additional Tags

social studies

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Instructional Ideas

• Task students with asking friends and family members about their experiences buying a car, particularly with regard to the loan process and other purchase options (i.e. buying a used car, leasing, etc.)
• For a more hands-on and relevant learning experience, have pupils research current car advertisements and loan policies

Classroom Considerations

• This is the third lesson in a series of 22 on developing financial literacy and money management skills for young adults
• Will require some basic math work for calculating the effect of interest rates, down payments, and term

Pros

• All worksheets included
• Organized sequence of activity steps

Cons

• None

Common Core

RI.9-10.4 RI.11-12.4 W.9-10.8 W.11-12.8