WHAT IS CREDIT? - A series of activities for TC

Aims of the tool

The main aims of the developed activities are to:

Improve young people's financial literacy and understanding of key financial concepts.

Develop practical skills in managing credit, budgets, savings, debt, and everyday financial decisions.

Encourage responsible borrowing and informed use of financial products.

Help participants distinguish between needs and wants and make more conscious spending decisions.

Strengthen skills in budgeting, financial planning, saving, and managing unexpected expenses.

Promote critical thinking, problem-solving, teamwork, and decision-making through interactive activities and simulations.

Increase participants' confidence in managing their personal finances and planning for future financial goals.

Provide practical knowledge that can support greater financial independence and long-term financial well-being.

Description of the tool

This research (conducted in partner countries - Greece, Italy, Estonia, and Latvia) is an interactive financial literacy resource designed to help young people develop the knowledge, skills, and confidence needed to make informed financial decisions. It focuses on key topics including credit, responsible borrowing, credit scores, different types of credit, budget management, budget planning, saving, and financial decision-making.

The activities combine clear explanations of financial concepts with practical, participatory learning activities. Participants can explore real-life financial situations through simulations, role-playing games, group discussions, quizzes, research tasks, budgeting challenges, loan repayment exercises, and business simulations. These activities encourage learners to apply theoretical knowledge to realistic situations, analyze financial choices, consider the consequences of their decisions, and develop practical strategies for managing money.

The research also considers the different financial contexts and practices found in Greece, Italy, Estonia, and Latvia. Country-specific examples allow participants to compare approaches to credit use, saving, budgeting, debt management, digital financial services, and financial planning. This comparative perspective helps learners understand both shared financial challenges and differences in financial habits between European countries.

By completing the activities, learners will be able to:

• Explain key financial concepts, including credit, creditworthiness, credit scores, interest, debt, budgeting, saving, and financial planning.
• Identify and compare different types of credit and understand their advantages, risks, costs, and appropriate uses.
• Assess whether borrowing is necessary and evaluate their ability to repay credit responsibly.
• Understand how interest rates, repayment periods, fees, and borrowing decisions affect the total cost of credit.
• Develop and manage a personal budget by identifying income, prioritising expenses, distinguishing needs from wants, and planning for savings.
• Set realistic financial goals and create strategies for achieving them.
• Make informed decisions when comparing financial products and services.
• Recognise common misconceptions about credit and identify responsible credit-management practices.
• Understand the importance of timely payments, responsible borrowing, emergency savings, and monitoring personal financial information.
• Compare financial habits and practices in Greece, Italy, Estonia, and Latvia, recognising how economic, cultural, and technological contexts can influence financial behaviour.
• Apply financial knowledge to realistic everyday situations through problem-solving, simulations, and role-playing.
• Strengthen critical thinking, teamwork, communication, decision-making, and entrepreneurial skills.
• Develop greater confidence and independence in managing personal finances and planning for their financial future.

This chapter developed by EKO in the frame of the KA2 Erasmus+ project "PROFLITERACY 2.0" and it provides an introduction to the key topics and activities, while the complete Handbook contains additional explanations, resources, and detailed guidance for implementing the learning activities. If you would like access to the full Handbook, please contact the project partners for further information.