This activity is one piece of a larger financial literacy unit. We all know our students are generally lacking in basic financial literacy skills and this activity (as part of a bigger unit) was created to give students a hands on activity to see for themselves the realities of buying a house and making big financial decisions. This activity opens with some basic financial literacy terms and definitions and allows for teachers to go into as much detail as necessary to answer student questions about the terms. Students then work independently or with partners to "buy" a house based on given scenarios about down payments and mortgage payments. In the end, students should be able to recognize the impact of financial decisions on long term purchasing power (i.e.: having good or bad credit and/or having a down payment or not). Students finish with a reflection sheet about the activity and their takeaways. I have used this activity and accompanying mini unit for 4 years and it is always a huge hit with my students (and their parents who often call or email after we complete the tasks to tell me how happy they are that I taught their children some basics).
If you like this activity be sure to check out the Buy A Car Activity in my store!