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Standards for How Expensive are Payday Loans?

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National Standards in Economics

Name: Interest Rates

Standard: 12

  • Students will understand that: Interest rates, adjusted for inflation, rise and fall to balance the amount saved with the amount borrowed, which affects the allocation of scarce resources between present and future uses.
  • Students will be able to use this knowledge to: Explain situations in which they pay or receive interest, and explain how they would react to changes in interest rates if they were making or receiving interest payments.

National Standards in Financial Literacy

Name: Using Credit

Standard:

  • Students will understand that: Credit allows people to purchase goods and services that they can use today and pay for those goods and services in the future with interest. People choose among different credit options that have different costs. Lenders approve or deny applications for loans based on an evaluation of the borrower?s past credit history and expected ability to pay in the future. Higher-risk borrowers are charged higher interest rates; lower-risk borrowers are charged lower interest rates.

State Standards

Common Core State Standards

Name: HSA-CED.A

Standard: High School: Algebra

Area: High School: Algebra

  • Create equations that describe numbers or relationships.

Name: MP1

Standard: Standards for Mathematical Practice

Area: Standards for Mathematical Practice

  • Make sense of problems and persevere in solving them.

Name: MP4

Standard: Standards for Mathematical Practice

Area: Standards for Mathematical Practice

  • Model with mathematics.