Credit, Debt, and Financial Traps

Use this worksheet to turn the course material into an actual conversation and one real next step.

Best use: read the matching lesson first, then use this worksheet right away and end with one practical commitment for the week.

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Part 1 - Foundations check

Mark each statement as Solid, Needs work, or Not yet.

Understands what credit is.

Understands what a credit score means.

Understands what interest is.

Understands how late payments hurt.

Understands why minimum payments can be misleading.

Understands the difference between access and affordability.

Part 2 - Quick understanding check

What is credit?

Why does a credit score matter?

What is interest?

What makes a credit card risky?

Part 3 - Scenario sorting

Click or mark the label that fits best.

Using a credit card for gas, then paying it off in full.

Buying clothes you cannot afford and planning to figure it out later.

Ignoring a statement because the balance feels stressful.

Making a purchase just because there is still room on the card.

Using a card for one normal expense you already planned for.

Part 4 - Parent-friendly credit example

Use this example to explain why paying in full matters.

Example: $120 charged for gas and clothes

Smart version: charge $120, pay $120 by the due date, interest = $0.
Messy version: only pay a small amount, carry the rest, and now the same purchase costs more than $120.
Teaching line: 'Being able to swipe is not the same as being able to afford it.'
Parent option to discuss: adding a mature teen as an authorized user may help build credit, but only on a well-managed card and only after verifying the issuer's rules and reporting policy.

✏️Your Turn— set your family credit rules:

Our rule for the card

Spending limit we agreed on

Payment plan

We will review it together on

Your answers are saved automatically in this browser.

What makes this a tool instead of a trap?

What rules would need to exist before a teen touches credit?

Part 5 - Mock W-2 and bill example

These examples help paperwork feel less mysterious.

Mock examples

W-2 example: employer name, wages, and taxes withheld are the main things a beginner should notice first.
Bill example: account name, amount due, due date, and what happens next if ignored.
Teaching point: paperwork is usually trying to tell you what happened, what is due, or what needs action.

If a teen saw a bill for the first time, what should they look for first?

What would you want your teen to understand from a simple W-2?

Part 6 — Credit score factors

Use this to explain how a credit score is actually built.

The 5 factors that build a credit score

Payment history (~35%): do you pay on time? This matters more than anything else.
Credit utilization (~30%): how much of your available credit are you using? Stay under 30% if possible.
Length of history (~15%): how long have your accounts been open? Older is generally better.
Credit mix (~10%): do you have different types of credit (cards, loans)? A mix can help a little.
New inquiries (~10%): how often do you apply for new credit? Too many applications at once can temporarily lower the score.

Which factor is easiest for your teen to control right now?

What one habit would most improve a credit score over time?

Next action

This week, tie this worksheet to the exact lesson you just finished, then practice one work-and-responsibility move for real: show up on time, follow through, make one better decision, or own one task without reminders.

This worksheet should help the lesson turn into one specific decision, conversation, or rep this week.

Write your commitment

Suggested use

Read the matching lesson first, not just the module overview.
Use this worksheet right away while that specific lesson is still fresh.
Leave with one action you can actually do this week, not a vague intention.