Lesson 1: What is a Loan?
What a loan is and why people borrow.
A short introduction to what a loan is, how borrowing works and why people use loans for big purchases or goals.
Loans
Start with four short foundational lessons: what a loan is, why people borrow, types of loans and borrowing responsibly. Then work through interest rates, repayments and terms, good debt vs bad debt, and loans and your future.
Module overview
- 8 lessons total
- Foundation Lessons 1 to 4: Short and essential (3 to 5 min each)
- Lessons 5 to 8: Interest rates, repayments and terms, good debt vs bad debt, loans and your future
Phase 1: Foundation
Lesson 2: Why People Borrow
When and why borrowing can make sense.
When borrowing can be useful: buying a home, studying, starting a business or managing cash flow. When it can get you into trouble.
Lesson 3: Types of Loans
Personal, home, business and other loans.
The main types of loans: personal loans, home loans (mortgages), car loans, business loans and credit. How they differ and what they are for.
Lesson 4: Borrowing Responsibly
How to avoid debt traps and borrow wisely.
How to borrow confidently: understanding interest and fees, avoiding common debt traps and knowing when not to borrow.
Phase 2: Going further
Lesson 5: Interest Rates Explained
How interest rates work on loans.
How interest rates work, what affects them and how they impact what you repay.
Lesson 6: Loan Repayments and Terms
How repayments and loan terms work.
How loan repayments are calculated, what loan terms mean and how they affect your repayments.
Lesson 7: Good Debt vs Bad Debt
When debt helps and when it hurts.
The difference between debt that can help you build wealth and debt that can hold you back.
Lesson 8: Loans and Your Future
Using loans wisely for your goals.
How to think about loans in the context of your future goals and financial plans.
Applied Case Study
After completing the lessons, do the Applied Case Study to bring together everything you have learned. You will read a scenario about someone planning to take out a loan and answer 8 questions that use concepts from Lessons 1–8. Your answers are saved in your browser and will be graded by your teacher using a rubric.
Go to Applied Case Study →