Sponsored by Welcome COUNTRY Financial® proudly provides financial literacy education to your classroom. Financial literacy is important, no matter how.

Slides:

Advertisements

Similar presentations

Teens lesson seven credit presentation slides 04/09.

Advertisements

National Credit Education Week Take the Credit Challenge!

Credit Matters If you ever want: – A job – An apartment – A car – Insurance – Education or training after high school – Affordable utilities – Affordable.

What you need to Know! What does this mean? What about interest?

Introduction to Business and Marketing Chapter 26.2.

The Importance of Credit Brought to you by Work.

Charge It Right 1. 2 Introduction Instructor and student introductions. Module overview.

CREDIT. ADVANTAGES OF CREDIT advantages: o Able to buy needed items now o Don’t have to carry cash o Creates a record of purchases o More convenient than.

Teens 2 lesson seven understanding credit presentation slides 04/09.

Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.

Going Into Debt Americans and Credit.

Basics of Credit. Credit Purchasing today, with the promise to pay later. What does credit offer you? – More time to pay – More money – Instant gratification.

1. What is Credit and What is Debt? 2. Using Credit: The Rewards & Risks 3. Four Types of Debt 4. The Cost of Using Credit 5. Running the Numbers.

GOOD CREDIT IS THE TICKET DO YOU KNOW HOW TO ACHIEVE IT?

Sponsored by Welcome COUNTRY Financial® proudly provides financial literacy education to your classroom. Financial literacy is important, no matter how.

Credit Card Review. Some credit card companies charge ________ fees for the use of their card.

Name ___________ Date____________ Credit and Debt-Personal Finance pg

Payday Loans & Credit Cards CENTS. What is a Payday loan?  A Payday loan is a small loan, also known as a “cash advance.” These loans typically become.

Mr. Stasa – Willoughby-Eastlake City Schools ©

Dealing the Cards of Credit Credit cards No set time to be paid back May pay in full, part, or minimum payment No finance charge if bill paid in full.

A Good CREDIT Welcome to MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP Build it and keep it © 2011.

Credit Wisdom. Managing Money & Credit: A Lifelong Skill.

The Importance of a Good Credit Score and How to Read a Credit Report

Lesson 16: Using Credit.

Using Credit. Terms to know Credit Creditor Revolving Charge Account Installment Account Vehicle leasing Cash loan Collateral Cosigner Home equity loan.

Credit Cards Adult Living. Advantages of using credit It’s convenient. You don’t have to carry large amounts of cash and you don’t have to go through.

Card A. Risk 12/ Lance L. Lancer12/12 Credit: History, Types, Dangers Chapter 10.

Section 4C Loan Payments, and Credit Cards Pages C.

Credit: History, Types, Dangers

 Buying on credit = buy goods and services now and pay for them later (usually with interest)  Having credit depends on the suppliers’ confidence in.

CREDIT: Day 2. Types of Credit Credit Cards Loans.

USING CREDIT. Managing Money & Credit: A Lifelong Skill.

CREDIT – Part 2 Business Issues. Credit Cards Paid over a variable amount of time Finance charge (interest) is called annual percentage rate (APR) expressed.

Going Into Debt $$$. Americans & Credit Credit allows people to own homes, improve their communities and purchase other items instead of waiting. Credit.

Credit ~ The Basics. Homework (Passport Page 32)

The Basics of Credit Objective: To explain the concept of consumer credit, including major types and their benefits/drawbacks.

Credit Credit is a sum of money a person can use for a period of time before having to reimburse the lender.

Advantages of using credit cards Ability to use item while paying for it No need to carry cash Use of card builds credit history Quick source of funds.

Standard SSEPF4 – The student will evaluate the costs and benefits of using a credit card. SSEPF4a- List factors that affect credit worthiness.

Section 6.2 Notes. Can you afford a loan?  First way to tell  Second way to tell.

Charge It Right 1. 2 Purpose Charge It Right will teach you about credit cards and how to use them responsibly.

Using credit is a way of life. People use credit online and for everyday purposes. Some do it so they don’t have to carry cash. Some use it to buy things.

CREDIT CARDS. Advantage/Disadvantages Your Credit Worthiness The 5 ‘Cs’ Capacity Character Credit History Capital Collateral The 5 ‘Cs’ Capacity Character.

 What are advantages of credit  What are disadvantages of credit.

Chapter 4.  What is Credit? ◦ Principal + Interest  Installment Debt ◦ Equal Payments ◦ Durable Goods ◦ Longer Term = Lower Payment BUT ◦ More Interest.

Sponsored by Welcome COUNTRY Financial® proudly provides financial literacy education to your classroom. Financial literacy is important, no matter how.

Going Into Debt Chapter 4. Americans and Credit Chapter 4, Section 1.

Using Credit SSEPF4.a, SSEPF4.b, SSEPF4.c. Loans and Credit Cards: Buy Now, Pay Later The U.S. economy runs on credit. Credit – The ability to obtain.

Objective 5.01 Understand credit management 1. Main types of credit 2.

College lesson four about credit.

CHAPTER 4 Going Into Debt. Debt = Principal + Interest Credit  Receiving money either directly or indirectly to buy goods and services TODAY with the.

Using Credit Wisely Types of Credit Credit Card Allows user to charge amounts in different places Given a credit limit, or maximum amount you can.

CHAPTER 26 – HOW TO GET AND KEEP CREDIT What I need to know…

The Three C’s of Credit Objectives: – Students will be able to describe the “Three C’s of Credit (Capacity, character, and collateral) and factors used.

Jeopardy Begins with c Loans Poor credit Consumer Credit consumer Finance Q $100 Q $200 Q $300 Q $400 Q $500 Q $100 Q $200 Q $300 Q $400 Q $500 Final.

Teens Credit- Day 3 Independent Living December 2, /09.

What’s a Credit Report? From age 18 on, agencies collect data about your spending habits. Monitor your ability to handle risks (i.e. loans I installment.

10 Points Question- What is the definition of Character?

Chapter 4.  What is Credit?  Installment Debt ◦ Durable Goods ◦ Longer Term = BUT  Longest Terms  Up to 30 years.

Credit. credit is money loaned in exchange for your promise to pay it back later with interest. interest is a amount of money paid to use someone else’s.

Teens lesson seven credit presentation slides 04/09.

Credit: “confidence in a purchaser's ability and intention to pay, displayed by entrusting the buyer with goods or services without immediate payment.”

You and Your Credit UNIT VII – Personal Financial Literacy.

Unit Four Good Debt, Bad Debt: Using Credit Wisely.

Credit Test Review. What card takes money directly from your checking or savings account?  Debit Card.

Advanced Level CREDIT BASICS G1 © Take Charge Today – August 2013– Credit Basics – Slide 2 Funded by a grant from Take Charge America, Inc. to.

Understanding Debt Federally insured by NCUA Great Rates. Personal Service. chevronfcu.org 

MR. Kiser – Financial Literacy  Default – This happens when a borrower fails to pay the debt owed  Credit – Allows you to buy goods or services.

Presentation transcript:

Sponsored by Welcome COUNTRY Financial® proudly provides financial literacy education to your classroom. Financial literacy is important, no matter how old you are and no matter your goals. Understanding money allows you to make more informed choices and to be better able to pursue your dreams. Congratulations on taking this first step in becoming more financially savvy.

Credit A Financial Beginnings Financial Education Program

What do they have in common?

What are we doing today?  We will:  Understand what credit is, how it works and why you need it.  Understand the different ways of establishing credit.  Learn your responsibilities as a borrower.  Understand how to monitor credit using a credit report and credit score  Understand loans and credit cards and how to borrow responsibly

Why would someone lend money? What is credit?

Leveraging credit

Why do you need credit? Where does credit come into play? Borrowing  Buying a house  Getting phone service  Renting an apartment  Financing a car  Getting a credit card  Student loans Other  Getting a job  Getting insurance

How did you get it? Do any of you have a credit card?

Can I have 3 volunteers? Lender Borrower 1Borrower 2

Your responsibilities as a borrower: Borrow only what you can repay Read and understand the credit contract Pay debts promptly Notify creditors if you cannot meet payments Report lost or stolen credit cards promptly

What if I can’t pay?  Keep in contact with creditors  Credit counseling  Negative marks will show on credit for 7-10 years  Bankruptcy last resort

What debts never go away? Student loan debt Taxes Child support Alimony

Have you or someone you have known been a victim of fraud?

Credit reporting agencies

Review Sample Credit Report  Page of the Resource Guide  What’s on there?  Identity  Accounts  Public records  Inquires  Dispute instructions

What is a credit score? Worst 300 Poor 620 Not Good 660 Good 700 Very Good 750 Excellent 850

What makes up your score?

What if you have a good score of 780 and make some mistakes?

What is the impact of your score on the interest rate? $20,000 Auto Loan- 3 Year Term

Types of Loans Revolving Credit card Line of credit Department store card Installment Car Home Secured Car Home Unsecured Credit card Personal line of credit/loan

How does interest work?  Costs money to borrow  Annual Percentage Rate – APR  How often it’s compounded?  Monthly? 12%/ 12 months =1% Daily? 12%/ 365 days=.03%  Calculating interest  Balance * Interest % for the period  More interest paid at the beginning of a loan than the end

$20,000 Car Loan at 10%

Payday Loans  Short-term high interest  Post date check or provide debt card number  Laws vary by state  A vicious cycle to get into

Credit Profile: Sasha Sasha has a monthly payment on $1200 on her mortgage. She owes $200,000 on the mortgage and the APR is 6%. Page 28 of the Resource Guide

Credit Profile: Sasha Answers  Monthly interest rate: 6%/12=.5%  How much interest in first payment: $1,000  How much of her first payment goes to pay off the loan: $200  How would you calculate the 2 nd month: (200, )*.005= $999 in interest 2 nd month

How interest works: Sasha Case TimeTotal PaidTotal InterestLoan Balance 5 Years$71,946$58,055$186, Years$302,173$202,051$99, Years$431,676$231,676$0

Credit Card Cycle Finding the right card Using itPaying it Maintaining it

Credit Profile: Steve Steve’s credit card has an annual interest rate of 18%. The minimum payment is 4% of the current balance. Right now, Steve’s balance has grown to $2,500. Let’s see how the minim payment helps Steve pay off is balance. Page 30 of the Resource Guide

How can Steve help himself? Balance $2,500 Annual Interest Rate 18% Minimum Payment 4% of balance

Lending terms: Fixed rate loan Variable rate loan Finance charge Collateral Secured loan Unsecured loan

Credit Profile: Ava  Credit card balances: $3,000  Income: $50,000  Inheritance $30,000  Wants to purchase a $125,000 condo

Do you think Ava will get her mortgage? In what ways could Ava have handled her credit more responsibly?

Takeaways Establish good credit early on Pay as agreed Have a plan to pay off Do not overuse

Got it?  Do you:  Understand what credit is, how it works and why you need it?  Understand the different ways of establishing credit?  Know your responsibilities as a borrower?  Understand how to monitor credit using a credit report and credit score?  Understand loans and credit cards and how to borrow responsibly?

Sponsored by Want to learn more? Visit countryfinancial.com/FinEd Congratulations, you are well on your way to being more financially savvy.