The "Car Loan Simulation" is an engaging and educational activity designed to help students explore the world of auto financing. This simulation allows students to make financial decisions when purchasing a car, providing them with practical experience in understanding the financial aspects of car ownership.
This activity is suitable for high school students and can be adapted for different grade levels based on the complexity of the questions and discussions.
The "Car Loan Simulation" is a valuable tool for teaching students about responsible financial decision-making in the context of car purchases. It equips students with practical skills and knowledge that will be beneficial as they prepare for their financial futures.
Car Selection: How to choose a car that fits their needs and budget.
Interest Rates: How different interest rates impact the cost of financing a car.
Loan Duration: How the duration of a loan affects monthly payments and the total interest paid.
Amortization: What an amortization schedule is and how to interpret it, including how each payment contributes to both interest and principal repayment.
Overall, the learning objective is to improve students' financial literacy and decision-making skills when it comes to buying a car and managing car loans.