'The Debt Snowball' Student Activity Sheet printable pdf download

'The Debt Snowball' Student Activity Sheet

The Debt Snowball

CHAPTER 4

ACTIVITY

ObjECTivE

Teacher Directions

The purpose of this

activity is for students

Divide students into groups. Each group will need a copy of the student activity

to work together in

sheet, planning form, and debt snowball form.

order to evaluate and

design a plan to help

Encourage students to think creatively while laying out their plan. For example,

this person get out of

their plan could include adjusting expenses (cutting cable, decreasing food etc.),

debt and start the

generating additional income, and proposing realistic advice that Dave teaches to

debt snowball.

help this person develop some “gazelle intensity.” (e.g. a garage sale)

Review additional calculations, highlighted below, that students will need to do

before they can start.

Current net income per month (80% of $40,000 [to adjust for taxes]

divided by 12 to get the monthly net)

Total monthly expenses (add minimum payments and basic expenses)

Interest rate (not necessary for the debt snowball, but it is listed in order

for students to evaluate what information they need to use or ignore)

House (listed as a debt but students should know that the house does not

go into the debt snowball; see if students realize this on their own before

calling attention to it)

Remind them about gazelle intensity! Did they include something extra in their

plan, such as a garage sale or an extra job, to get the snowball rolling?

Current monthly expenses = $2,555

Monthly net = $2,666

FOUNDATIONS in PERSONAL FINANCE

'The Debt Snowball' Student Activity Sheet