Code: 2.6.2 · Children and youth
Grasps the concept of loan
Aware of different types of credit (e.g., overdrafts, credit cards, consumer loans, student loans, mortgages, etc.)
Aware that payment schemes like “buy now, pay later” are a form of credit and may have a high cost
Understands the consequences of defaulting on a credit (such as foreclosure and goods repossession) and the risk of over-indebtedness
Understands that access to credit and credit conditions depend on the applicant’s creditworthiness (including credit scores, where available)
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
Distinguishes between loans with fixed and variable interest rates, and between interest cost and the total cost of a loan
Can calculate the impact of interest rates variations on loan repayment
Motivated to keep a positive bank balance (to avoid overdraft)
Motivated to look for and compare credit offers, when necessary (e.g. student loans), based on relevant criteria, including via reliable digital tools
Confident to seek help at appropriate institutions when one faces financial difficulties or becomes over-indebted
Confident to borrow after assessing costs and risks for personal projects or starting a business