Unit 6 of TEKS Financial Mathematics teaches students how credit works, how to borrow responsibly, and how debt affects long-term financial health. Students explore different types of credit—from credit cards to installment loans—and learn the true cost of borrowing by calculating interest, monthly payments, and payoff timelines.
They also examine credit reports and credit scores, learning how financial behavior impacts borrowing opportunities, housing, and even employment. By the end of this unit, students understand how to build, protect, and repair their credit profile.
What Students Do in Unit 6:
- Compare credit cards, installment loans, and other credit products
- Analyze credit card statements, APR, minimum payments, and interest costs
- Calculate total borrowing costs and payoff strategies
- Learn Snowball vs. Avalanche debt repayment methods
- Review credit reports and understand credit score factors
- Explore consumer rights, debt negotiation, and protections under FCRA and FDCPA
Unit 6 equips students with the practical skills to use credit wisely and avoid the financial pitfalls that can come with unmanaged debt.