Using Your Money Wisely-A Credit Card Project
Web-Enhanced Math Project
Credit Cards- Using
Your Money Wisely
Print this page first. Here is the problem. You and your team members are
to pretend you are in one of two situatons below. In either situation
you will be asked to select the best credit card possible for your situation.
This should be based on your budget and financial situation.
#1- You have just lost your student loan because
of an error you made in your loan application. It will take 6
months to straighten it out. You have no savings. In order
to continue your education you decide to get a credit card and use it
to go to school for one semester until your loan situation is straightened
out. You plan to take 18 hours of classes at a tuition rate of $167.20
per credit hour for out-of-state tuition. Books will cost $320.
You plan to pay back the credit card loan within 4 years with monthly
payments of at least $60. You work a 30 hour week and earn $8
per hour after taxes. Your car payment is $150 per month. Your
rent is $300 per month and utility bills run about $90 per month. You
also have a 4 year old daughter. You must take into consideration
day care expenses as well as living expenses.
#2 - You need to have a surgical procedure
done and do not have the $3000 cash necessary for the operation.
Talking to an administrator at the hospital, you find that the hospital
will accept credit cards such as Master Card, VISA and Discover
credit cards. Assume that you plan to take one year to pay
off the loan with payments of at least $300 a month. Find
the best credit card for your situation. Additional
information: You make about $425 per week clear after taxes.
You have a car payment of $235 per month, rent payment of $400,
utility bills of $110 per month. There is $1200 in your savings
Credit Card Rates
Uses the web site below to calculate how much interest
you will pay on the credit card you select for one year. Make a table that
shows a comparison of interest you will pay on 3 other cards.
of a loan calculator at bankrate.com
Click here to use the spreadsheet to check out your credit card.
Write one page describing the reasons you selected your credit
card. Describe how your selection will effect your
budget, your buying habits, and life.
List an additional web sites you find to help you
answer these questions. Write a paragraph about how you used them.
Complete budget = 20 points
Detailed paragraph explanation of budget.=20 points.
Explanations must be logical.
Table showing interest calculations = 20 points
Page describing reasons for selection of credit card. =10 points
of effects on budget =10 points
of effects on buying habits = 5 points
Description of effections on life in general = 5 points
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Marcia L. Tharp
Last Revision: Oct. 18, 2002
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