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Interactive Internet Game Activity
Debt really is very much a part of life. What adults fail to teach young people is that there is good debt and bad debt. Bad debt works against you only getting you farther in debt (the great thief). Good debt allows you to make more money than you are paying for the debt you have incurred. Now it's time to find out what kind of debt it is - good or bad?

Learning Objectives
· Examine debt to determine if it is good or bad
· Calculate percentages
· Interpret information to determine positive or negative returns on an investment

Assessments
Students will: (1) Analyze information to determine good and bad debt, (2) Calculate percentages when given interest and return on investment information, (3) Analyze positive and negative debt/return information to determine the preferred debt to incur.

Classroom Activities
1. Good Debt, Bad Debt - The Tale of Two Loans - Read the introductory information about the national debt and the comparison of good and bad debt. Discuss interest as it relates to debt. Then guide students through the graphic that illustrates the accumulation of good and bad debt.
2. Be the Bank - Use this information to explain "How a bank works." Emphasize the information provided in the two boxes: Two Points to Consider and Summary & Conclusion. This information will be the basis for the two activities.
3. Be the Bank - Math: Test Your Understanding - Students will look at the two choices for determining the preferred debt/return combination. They will need to consider the difference between the percentage being borrowed and the rate of return. Which will provide them with the largest gain?
4. Be the Bank - Math: Test Your Skill - This lesson will fit into your curriculum well as a review of percentages. Students will need to calculate the amount of return or the interest paid based on the given percentage. Then, students need to compare this amount with the corresponding interest paid or the amount of return. It is good debt if the amount of return exceeds the interest paid. It is bad debt if the interest paid exceeds the amount of return. If it is bad debt, students will circle the sad face. If it is good debt, students will circle the happy face.

Class Discussion Questions
1. What do you think about having debt after completing the activities?
2. If everyone could understand the idea behind "Be the Bank," why would anyone deposit money in the bank?
3. Is there any occasion when it would be good if the interest paid would exceed the rate of return?

(Charts and activity sheets continue in the downloadable PDF file above.)