Financial Literacy Project (or, screwing over the freshmen for fun and profit!)

I have the beginnings of an idea for a project to do later in Spring, for the exponential functions unit, in conjunction with our freshman College Readiness classes.

I was thinking about when I was a freshman in college, and how there were always tables set up by credit card companies who would attract crowds of freshmen with such irresistable items as Citibank t-shirts and Bank of America frisbees. They would give a credit card to just about anyone. There have been lots of reports about how so many college students get into incredible credit card debts because they don't know how to manage a credit card, and they are preyed on by these vultures.

I would like to run a simulation, where my Algebra 2 students run their own credit card companies. We will examine what interest means, and the types of predatory practices credit card companies engage in (i.e. a low introductory rate that suddenly changes for various reasons, allowing very low monthly payments, etc.). Then, the students will design their own cards and draw up a credit card offer. They will then set up booths in the school one day, and the freshman College Readiness students will be asked to sign up for at least one card (my students will need to come up with ways to attract their business with their own exciting promotional items... I'm predicting free bags of hot cheetos and the like).

Then, for the next few weeks, in the College Readiness classes (who will be in their Financial Literacy unit), the freshmen will have a given job and salary, mandatory expenses, and optional expenses. They can use their credit card at will, and pay as much of their balance as they choose. To make this more exciting for the students, I'd like to think about how to tie their decisions to real-life consequences (i.e. if you buy an iPod with your credit card, you earn the privilege to listen to one during tutorial time, or if you go on a shopping spree, you earn a free-dress day). Students will be responsible for tracking their budgets and payments.

Then, after a few weeks of the simulation, my students will collect the data and calculate how much the freshmen owe. Whichever credit card company made the most money will get some sort of prize (maybe I'll take them out to lunch or something). Though this may seem counter to the spirit of the project, I'd like to do this for two reasons. One, by thinking of ways to be as deceptive as possible, students will be more attuned to potential deception later when it really counts. Two, they'll enjoy "being bad" (which will increase engagement) and it's a safe environment in which to play the bad guy.

My students will use this simulation as a springboard for the exponential functions unit, compounded interest, and so on. To wrap it up, they will put together a presentation to make at our weekly school assembly where they report on the results of the simulation, explain why we did it, and include a note of caution to all students about the dangers of using credit cards.

The logistics are not thought out yet, but I think this has the potential to be both fun and very educational. Any thoughts?