How Expensive are Payday Loans?

Time: 60 mins,

Updated: October 8 2024,

Author: Hilary Hunt

Teacher Version

Objective Standards Summary Resources Procedure

Objective

Students will be able to:

Determine the total cost of a payday loan when given the amount financed, finance charge, and terms of the loan in weeks.
Graph the relationship between the number of times a payday loan is renewed and the total cost of the loan.
Rearrange the equation for the total cost of a payday loan to determine the finance charge.

Standards

National Standards in Economics

National Standards in Financial Literacy

State Standards

Common Core State Standards

Concepts

Credit, Interest

In this personal finance lesson, students will learn how a payday loan works.

Resources

Procedure

Click NEARPOD VERSION: HOW EXPENSIVE ARE PAYDAY LOANS? to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!