Module 5: Credit - making it work for you

Students should be able to:

  • define credit as the power to obtain goods and services with an obligation on the borrower of future payment to the source of credit
  • understand that the finance rate, not interest rates, measures the cost of credit
  • understand the importance of establishing a good credit history
  • make informed decisions about the use of credit
  • become  aware of risks and costs of alternate forms of credit
  • recognise the responsibilities and obligations associated with debts
  • understand that credit imposes an opportunity cost on borrowers and lenders
  • recognise that laws protect credit arrangements
  • Borrowing (use of someone else’s savings) in one form or another is universal.
  • Credit needs to be affordable as credit costs are future costs.
  • Credit can be convenient and gives individuals the opportunity for immediate access to goods and services.
  • Credit use demands willingness and the ability to meet payments on a regular basis as debts do not disappear.
  • Credit is a contractual relationship and a person’s credit reputation and credit history are important.

Additional card holder
Annual fee
Authorised user
Balance transfer
Cash advance
Credit history
Credit inquiry
Credit rating
Credit limit
Cycle billing
Debt consolidation
Discharge fee
Establishment fee
Financial institution
Impulse buying
Interest free
Interest free period
Interest, compound
Interest, simple
Linked transfer account
Loyalty program
Reward  programs
Payday lender
Personal loan
Promotion  rate
Retail credit
Revert rate
Revolving line of credit
Store card

Download Module 5

Select the topics you want and click 'Download' at the bottom of the list. Everything is separated into individual PDF files so you can print, email or distribute as much or as little as you need.

All topics
Module Overview & Curriculum Mapping
All about Credit
Using Credit
Applying for Credit
Borrowing - a life cycle perspective
Consumer rights
Why the interest in interest?

If you would like all of the topics in this module, including teacher notes and student worksheets in one combined PDF, click "Download Complete Module".

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