The best way to teach something to a teen is to make them think they came up with the idea themselves. The Cs of Credit (capacity, collateral & character) activity used in the Wealthy Habits camp does just that.
Credit is something that few of us understand completely, but we are very aware that it can impact us greatly. The 3 Cs of Credit activity provides students with an opportunity to see credit from the perspective of an underwriter.
The activity has students work in small groups because everything is more fun when you get to debate things with friends. A quick explanation of what information is included in each of the 3 C categories provides a general idea of the actions that can affect a person’s credit. Each group is provided with random characteristics of an individual requesting a loan as well as the amount and item they are intending on purchasing. Groups review all the information given while categorizing the different details into each of the Cs. Finally, the group must determine if the person is a good credit risk and if they will make the loan or not.
As students make judgments about who they aren’t willing to loan money to, the desire not to be like the individual they just denied is planted into their brain.