CREDIT….HMMMM! By Julie Chapman for. CREDIT IS THE ABILITY TO BUY NOW AND PAY MORE LATER! TRUE?FALSE? PAYMENT OF INTEREST IS USUALLY A PART OF USING CREDIT,

Slides:

Advertisements

Similar presentations

1 Credit Card Basics What you need to know before signing up…

Advertisements

CREDIT Chapter 16.

Do now – grab a calculator

CHAPTER 9 SEC 3 Consumer Loans. What is a consumer loan? Def.  a loan that establishes consumer credit that is granted for personal use; usually unsecured.

Simple Interest Section 5.1. Introduction When you deposit money into a savings at a bank you expect the bank to pay you for the privilege of saving your.

CALM.  Able to buy needed items now and pay later.  Don’t have to carry cash  Creates a record of purchases  More convenient than writing cheques.

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

Personal Finance Chapter 16

HOW CREDIT CARDS WORK What you need to know about credit cards- including what credit cards companies can and can’t do, and what information they have.

Credit Costs TODAY YOU WILL... EXAMINE THE COSTS OF CREDIT. 1 ©2014 National Endowment for Financial Education | Lesson 2-2: Credit Costs.

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.

Grade 12 Family Studies. B6I.

Section 1: Use of Credit.  Credit: Receiving money with the promise to pay in the future ◦ Principal: The Original amount of the loan ◦ Interest: Amount.

Financing Unit 6.

All I can do is remind them of the truth of Albert Einstein’s alleged response when he was asked, “What do you, Mr. Einstein, consider to be man’s greatest.

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.

Slide 1 Copyright © 2015, 2011, 2008 Pearson Education, Inc. Percent and Problem Solving: Interest Section7.6.

CREDIT CARDS What are they and how do they work?.

Credit: Helpful or Hurtful. Fact or Fiction Q. Using credit can lead to serious problems. A. True.

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.

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

What is Your Interest? Discover the impact and power of interest.

Section 4D Loan Payments, and Credit Cards Pages

Advantages & Disadvantages of Credit Cards

Interest on Loans Section 6.8. Objectives Calculate simple interest Calculate compound interest Solve applications related to credit card payments.

Credit & Debit Cards Personal Finance Mrs. Brewer.

The Study of Money Simple Interest For most of your financial plans, throughout your life, there will be two groups involved. The Bank The Individual.

Interest and Discounts

Aim: Money Matters – Effective Rate & APR Course: Math Literacy Aim: How does money matter? The lowdown on interest rates. Do Now: Annie deposits $1000.

Credit Cards. What are the benefits? No need to carry large sums of cash Helps credit rating Have access to a written record of all purchases Rewards.

Interest (ing) Notes How to Calculate Simple Interest 2/11/10 Pre-Algebra.

Chapter 5 Section 5.1 Simple Interest. The Mathematics of Finance In these sections we will learn about of the more practical uses of mathematics that.

2.4.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready to Take Charge of Your Finances – Take Charge of Credit Cards Funded by a.

Credit. What is it? – the ability of a customer to buy goods or services before paying for them, based on an agreement to pay later. Always investigate.

Unit 5: Personal Finance Services of the Bank  Place to store your money safely – an Account.

Chapter © 2010 South-Western, Cengage Learning Credit in America Credit: What and Why Types and Sources of Credit 16.

Credit 3 C’s of Credit. Character – Will you repay the Debt?  Have you used credit before?  Do you pay your bills on time?  Do you have a good credit.

Credit Cards. 88 million American households have credit cards Average credit card debt is $9,600 per household.

Bell Work, Wed. 5/13 O Where is Shell going to start drilling for oil? O Who created the first Presidential Library? O What technology are firefighters.

Credit Management 1. Two – Day Seminar Day One Establishing & Maintaining Credit Credit Scoring Day Two Loan Agreement Terms & Conditions Managing Credit.

Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.

© SOUTH-WESTERN EDUCATIONAL PUBLISHING LESSON 16.1 UNIT 6 WHAT IS CREDIT? DESCRIBE HOW CREDIT DEVELOPED IN AMERICA. DEFINE BASIC CREDIT VOCABULARY. DISCUSS.

Managing Your Money Chapter 23.

(The Nightmare Continues…).  Open-Ended Installment Loans differ from Fixed Installment Loans in a number of ways: ◦ They are often referred to as “revolving.

Compound Interest. A = New balance after interest P = Principle amount invested or borrowed. R = Interest Rate usually given as a percent (must changed.

Simple and Compound Interest For most of your financial plans, throughout your life, there will be two groups involved. The Bank The Individual.

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.

Grade 12 Family Studies.  Do you have a credit card?  What is it used for?  How is it like a loan?

Chapter 7 Buying Decisions. Slide 2 Where Can Consumers Get Credit? Credit is the ability to borrow money and pay it back later. 7-2 Getting Started with.

CREDIT CARDS CALM 20. What is a Credit Card? A credit card can be a convenient way to pay for almost anything, from a new pair of shoes to a holiday in.

CREDIT Personal Finance. Advantages of Credit  Improved Standard of Living:  Credit lets you purchase items now, instead of having to wait until you.

Practical Math: Credit Cards Chapter 7 Notes. Vocabulary credit card: a card that allows you to buy items now and pay later monthly statement: form like.

2.4.1.G1 © Family Economics & Financial Education – December 2005 – Get Ready to Take Charge of Your Finances – Take Charge of Credit Cards Funded by a.

1. Financial mathematics  Compare differences between credit cards and debit cards  Calculate the simple interest for one billing cycle  Express a percentage.

1. Credit and borrowing  Calculate the principal, interest and repayments for flat-rate loans  Calculate the values using a table of home loan repayments.

Responsibilities and Costs of Credit

Ted wants a credit card! Lesson 3: Borrowing Money, Part 1.

Using Credit Wisely. Credit  Credit is a sum of money a person can use before having to reimburse the credit lender.  It allows a person to receive.

Credit Card Basics. What is a Credit Card? credit card A credit card, such as Visa or MasterCard, allow you to pay for products or services by borrowing.

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

 In your notebook: › Draw › List › Write › Everything you know about credit and credit cards. › When the time sounds, share your list with your partner.

Borrowing Wisely Senior Advisory Week of May 23, 2016.

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

Consumer Economics Credit Credit Investing Investing.

MAKING GOOD FINANCIAL DECISIONS Credit Cards vs. Saving and Investing.

Compound Interest. A = New balance after interest P = Principle amount invested or borrowed. R = Interest Rate usually given as a percent (must changed.

Exponential Functions – Personal Finance Basic Formula for Compound Interest: A = P(1 + r/n) nt » A = Final Amount » P = Beginning Amount » r = rate –

Borrowing Econ 10/13.

Exponential Functions – Personal Finance

Presentation transcript:

CREDIT….HMMMM! By Julie Chapman for

CREDIT IS THE ABILITY TO BUY NOW AND PAY MORE LATER! TRUE?FALSE? PAYMENT OF INTEREST IS USUALLY A PART OF USING CREDIT, SO YES, IF YOU PAY INTEREST, YOU PAY MORE! IF YOU PAY YOUR BILL BEFORE INTEREST IS CHARGED, YOU DO NOT PAY MORE! ONLY ABOUT 30% OF AMERCANS PAYOFF CREDIT BALANCES EVERY MONTH, SO 70% OF THE TIME, THE STATEMENT IS TRUE!!

DOES IT MAKE SENSE TO PAY MORE? YOU HAVE TO BE SMART! Advantages of Credit  Able to buy needed items now.  Don’t have to carry cash.  Have a record of purchases.  Expensive emergencies  Convenient  Purchase Protection

DOES IT MAKE SENSE TO PAY MORE? YOU HAVE TO BE SMART! DISADVANTAGES  PURCHASE WILL LIKELY COST MORE!!!  MISTAKES WITH CREDIT TEND TO HAVE LONG TERM CONSEQUENCES  IMPULSE BUYING IS EASIER IN OUR IMMEDIATE GRATIFICATION CULTURE

OKAY, IT COSTS MORE. WHY? You must pay companies to loan you money. This payment is INTEREST. Two Types of Interest: o Simple Formula-the simple formula  I = P x R x T  Interest= Principle X Rate X Time

OKAY, IT COSTS MORE. WHY? o Compound Interest-- The not-so-simple formula I = P X 1 + (r/n) nt  I = final amount  P = principal amount (initial investment)  r = annual nominal interest rate (as a decimal, not in percentage)  n = number of times the interest is compounded per year  t = number of years

OKAY, IT COSTS MORE. WHY? Let’s look at an online credit card payment calculator that is based on the compound interest calculation formula: tor/Default.aspx

OKAY, IT COSTS MORE. WHY? Assume that you owe $5000 on your credit card and are paying 12% interest. You are making only the minimum monthly payment. How long will it take to payoff your balance?

OKAY, IT COSTS MORE. WHY? What if you decide to pay $400 every month and have a 12% interest rate?  NOTICE THE DIFFERENCE IN THE TOTAL INTEREST PAID!

WHEN YOU USE CREDIT, YOU ALMOST CERTAINLY: BUY NOW! PAY MORE, LATER! Sometimes MUCH, MUCH MORE!!