Welcome to this latest FLIP which is the first of a new series of practical classroom activities addressing over-indebtedness. It was produced as part of the Collection House/Financial Basics Foundation partnership program, bringing practical knowledge and real-world insight of the consequences of over-indebtedness to secondary school students.
SLAYING THE DEBT DRAGON, the first activity in this series, looks at actions which can be taken to solve debt problems before it’s too late. Students are prompted to examine spending habits, to think about strategies to address financial difficulties, and to create an action plan in response to a case study. Students are also challenged to communicate with creditors and write letters to cancel direct debits. Some extension activities on “what if” scenarios are also provided.
Human beings are hard-wired to want things. Driven by a culture of instant gratification, young people are taking advantage of accessing easily available credit. Increasing numbers are finding themselves in situations where they are unable to meet their financial obligations, and often with terrible consequences. In fact, one in five bankruptcies in Australia is under the age of 30. Over 70% of Australians have defaulted on a payment before age 35, with 58% of them being younger than 30 years old. Most people don’t realise that even being late with a single payment on the electricity bill can adversely affect their credit rating. Find out more here:
“Slaying the debt dragon” is a challenging activity, and students are required to read and comprehend extensively to complete the tasks. In addition to having relevance to the NCFLF and the Economics and Business Curriculum, the activities in this FLIP also address literacy and numeracy.
The activities have been designed to support and complement The Australian Curriculum. This FLIP has specific relevance to Economics and Business Knowledge and Understanding for Year 9 and some application in Year 10.
Engage your students in the classroom using these open access resources, including your free FLIP activities and worksheets.
SLAYING THE DEBT DRAGON - how to get out of debt
Unmanageable Debt – Compare your options - information on Debt Agreements, Bankruptcy and Personal Insolvency Agreements from Australian Financial Security Authority
How to Get Out of Debt - Financial Advice from Warren Buffett
Get rid of credit card debt - some practical strategies for solving debt problems (Whilst FBF does not endorse the services of the organisation that produced this video, the content is relevant, and the approach will appeal to students.)
Gen Y drowning in debt - ABC 7.30 Report on credit card debt (This is from 2010, but still has relevance.)
my creditfile – What is a Credit Report? This VEDA webpage contains FAQs and useful information.
Australian Financial Security Authority – Personal Insolvency statistics
Australian Bureau of Statistics – data on Personal Family and Household Finances
Australian Curriculum – Economics and Business
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