Taking credit

What you can do at this level

• Kage:6-10

  Grasps the concept of loan

• Kage:11-15

  Aware of different types of credit (e.g., overdrafts, credit cards, consumer loans, student loans, mortgages, etc.)

• Kage:11-15

  Aware that payment schemes like “buy now, pay later” are a form of credit and may have a high cost

• Kage:11-15

  Understands the consequences of defaulting on a credit (such as foreclosure and goods repossession) and the risk of over-indebtedness

• Kage:16-18

  Understands that access to credit and credit conditions depend on the applicant’s creditworthiness (including credit scores, where available)

• Kage:16-18

  Aware that sometimes a guarantor or a collateral is requested in order to grant a credit and limit the risks in the event of default

What you can do at this level

• Sage:11-15

  Distinguishes between loans with fixed and variable interest rates, and between interest cost and the total cost of a loan

• Sage:16-18

  Can calculate the impact of interest rates variations on loan repayment

What you can do at this level

• Aage:16-18

  Motivated to keep a positive bank balance (to avoid overdraft)

• Aage:16-18digital

  Motivated to look for and compare credit offers, when necessary (e.g. student loans), based on relevant criteria, including via reliable digital tools

• Aage:16-18

  Confident to seek help at appropriate institutions when one faces financial difficulties or becomes over-indebted

• Aage:16-18entrepreneurship

  Confident to borrow after assessing costs and risks for personal projects or starting a business