What is a credit crunch?

In the first activity in this financial capability module, we introduce students to key terms.

Students explore what the term credit crunch means and how it came about.

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TRU_FT_CreditCrunch_1_RJ.pdf

TRU_FT_CreditCrunch_1_RJ.ppt

Topic Aims

Learning objectives taken from key stage 3 and 4 programmes of study for Economic Well-being:

Risk

To understand risk in both positive and negative term
To understand the need to manage risk in financial and career term
To take risks and learn from mistakes

Economic Understanding

To develop a better understanding of the economic and business environment
To gain a better understanding of the functions and uses of money

Check out the morning or weekly news headlines for any relevant stories/articles that could be to support the key theme.

Learning Outcomes

To understand the implications of the credit crunch for individuals, communities and nations

Differentiate by learning style

Those people who do not respond well to class discussions could be in charge of taking notes from the discussion. These notes could then be made into a list of key points which could be displayed in the room.

Introduction

Begin by showing the students one or two cuttings from local and national newspapers that highlight the impact of the credit crunch.

Ask them if they have heard about the credit crunch.

Ask them how they think it might affect them as individuals and write key words on the board.

Give them the definitions worksheet so they have a better understanding of key terms for the main activity.