1. Comps 55- 60 Demonstrating Knowledge of Planning for Living and Leisure Expenses Do Now: 1)List 3 cars you would want to buy Right now 10 years from now 20 years from now 2)What 3 questions would you ask when buying a new or used car? 3)Describe how renting a car works

2. Renting A Home Start by signing a lease (legal contract) Tenant makes a monthly payment to their landlord  May have upfront fees (ex. security deposit) Your lease will specify whether or not you have to pay for utilities Landlord Tenant

3. Craigslist Ad – Don’t Get Murdered On your Do Now paper, write a complete craigslist ad in search of an apartment to rent. Be sure to include the following: Who would be the tenant and landlord Monthly rent you can afford Would you like utilities included?  If so, which ones? Description of the apartment  Number of bedrooms  Number of bathrooms Roommates? Are pets allowed?

4. Buying A Home Buying, rather than renting builds homeowner’s equity  Money left over after subtracting unpaid debt from current market value Tax deduction on interest paid and local property taxes paid Home loan is called a mortgage Principal is the amount of the loan (borrowed money)

5. Buying A Home (Cont.) Types of mortgages Fixed mortgage – interest payment never changes Variable mortgage – interest payments will go up and down with interest rates Either way, more interest is paid than principal because it’s compounded Interest on Interest on Interest!

6. Conseguir Sus Libros 1)Skim pages 86-88 2)Define the following words  Utilities  Down payment – and give percentage  Compounded 3)Describe the 5 components of a mortgage payment 4)Why do people buy rather than rent?

7. Reading Is Good!!! Read the article FIRST Then, pick one of the cars from your do now and explain how you would go about buying the car by incorporating the 10 steps Response should be in sentence form on the Do Now paper

8. Wrap-It-Up Questions 1)What document establishes legal ownership of property?  Title 2)Is it better to rent or own a home if you have the means to afford either option? Why?  Own because you build homeowner’s equity and get certain tax deductions 3)What percentage of your disposable income is acceptable to spend on a mortgage?  25-35% 4)What’s the most important factor in determining the value of a car (new or used)?  The year it was manufactured