This is an official warning, calculators will be needed from this point on. Also this serves as notice that the information that follows this message WILL.

Slides:

Advertisements

Similar presentations

Keys to Credit What is Credit? Buy now – pay later Financial tool Binding contract Buy now – pay later Financial tool Binding contract.

Advertisements

Credit Buy Now, Pay Later. Credit Someone is willing to loan you money (principal) in exchange for your promise to pay it back, usually with interest.

Using Credit Chapter 25, pgs

Mrs. Wilson Business Essentials. This lesson provides information about money management basics and the reports used to measure financial progress.

Introduction to Business & marketing

 Take a few minutes to look over your notes if you need to take/retake yesterday’s Quiz › Use the resources on Moodle to help you study › We will do a.

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

Credit and Its Use.

Credit You're in Charge What is Credit ??? Credit is an arrangement to Receive cash, goods, or services now and pay for them in the future!

CREDIT NOTES Credit is buy now pay later. The opportunity Cost is future income! Credit can be a great tool and can be necessary but can lead to financial.

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.

Borrowing Basics 1. 2 Purpose Borrowing Basics: Describes how credit works and the types of credit available. Helps you determine if you are ready to.

Chapter 6: Credit Use and Credit Cards. Objectives Compare and contrast installment and non-installment credit and discuss the costs of credit. Discuss.

Credit Cards An Introduction “Hi! Nice to meet you!”

Credit Intro to Credit & Establishing Good Credit.

Managing Your Money Personal Finance. Disposable Income.

Credit Chapter 25.

Credit Management Review. History of Credit in America 1800s Bartering General store gave first credit Monthly, seasonal and yearly credit Bank loans.

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

Smart Spending: Credit and Budgeting Glow Foundation 2010.

Five C’s of Credit Character Capacity Collateral Capital Conditions.

Loan To Own 1. 2 Purpose Loan to Own provides general information on installment loans, including: Car loans Home equity loans.

Credit Cards Independent Living. Why learn about credit/credit cards?!  9 out of 10 American families use credit  Mortgage, Medical, credit cards, etc.

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

The student will explain personal money management choices in terms of income, spending, credit, saving, and investing.

Chapter 25 The Basics of Credit.

Key Terms Section 10.1 & 10.2  Why should you be careful not to take on more debt than you can easily repay? *Credit *Equity *Creditworthiness *Character.

H233 Consumer Management Budget Expenses. Recommended Monthly Spending.

Unit 4 Creating a Budget. Objective(s) What is a budget? Activity – Pair up with someone in the room and sit with them and prepare to begin the budgeting.

Personal Finance QUIZ REVIEW – CREDIT CARDS, BANK ACCOUNTS, BUDGETING, ETC.

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.

Loan To Own. 2 You Will Know  The different types of consumer installment loans and  The right consumer installment loan for your needs.

Credit BELL RINGER  What is credit?  Does credit cost?  What are the advantages of using credit?  What happens if I misuse credit?

Section 1Organizing Financial Records Budgeting How do your spending options fit: Day-to-day financial activities necessary to get the most from one’s.

CREDIT IN AMERICA.  Credit –  Over ______ of all purchases in the U.S. are made on credit.  What do you buy with credit?

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

UK 101 Money Management. Overview What is a Budget  SMART Goals  Income Received  Expenses spent  Sticking to Your Budget Saving $$$$  Tips Common.

INTRODUCTION TO BUSINESS & MARKETING CREDIT. Objectives Compare the types of consumer credit Describe the advantages and disadvantages of using credit.

The Use of Credit. Credit Credit is when money, goods, services are received with the promise to pay back in the future 3,000 yrs ago in Iraq.

Annual Percentage Rate (APR) The amount it costs you a year to use credit, expressed as percentage rate Interest, transaction fees, and service charges.

YOUR FINANCIAL FUTURE DEPENDS ON YOU! Personal Finance.

Going into debt.  Credit- The receiving of money either directly or indirectly to buy goods and services today with the promise to pay for them in the.

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.

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 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.

11111 Youth Money Management Learning Good Spending Habits.

Building: Knowledge, Security, Confidence Borrowing Basics.

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

Calculating Cost Of Credit. Types of Credit Closed-End Credit ◦ One-time loan that you pay back over a specified period of time in payments of equal amounts.

Unit 1 – Personal Finance Credit & Worker Earning How can the use of credit benefit & hurt consumers?

UNIT FIVE. CREDIT: BUY NOW, PAY LATER. Coming soon to a mailbox near you: Credit Card offers.

Credit In your opinion, do consumers spend more per month on average when they use a credit card or cash?

Chapter  A plan for saving and spending.  Allows you to meet your personal goals with a system of wise spending.

Credit Cards. shopping for a credit card  costs:  ■ Annual Percentage Rate (APR) or Finance (Interest) Charges  ■ Grace period  ■ Annual fees  ■

Your Financial Future Credit. Payroll deductions  Federal taxes – pays for roads, bridges, government, military, space program, disaster relief, schools.

BBI 2O - Budgeting Track-o-matic

Understanding Credit & Using Credit Cards Personal Finance – Raymond High School.

Credit Questions to Consider  What is credit?  Does credit cost?  What are the advantages of using credit?  What happens if I misuse credit?

Credit Questions to Consider  What is credit?  Does credit cost?  What are the advantages of using credit?  What happens if I misuse credit?

Complete the True-False Quiz!. To obtain goods or services before payment, based on the trust that payment will be made in the future.

Chapter 4 Going into debt.

Credit Terms and Conditions What happens when you overspend and cannot pay…

 Income from work- wages (paid by hour or unit of production) or salary (paid weekly, monthly, yearly)  Income from wealth- things you own- bank accounts,

+ Credit Cards Independent Living. + The granting of credit: The 3 C’s In order to be approved for a credit card the creditor will look at the following.

Chapter 16 Credit in America  What Is Credit?  Types and Sources of Credit.

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.

Consumer Economics Credit Credit Investing Investing.

Do Now: If you were going to give someone a loan, what would be some factors you would consider?

Borrowing Basics Showing you the Way.

Presentation transcript:

This is an official warning, calculators will be needed from this point on. Also this serves as notice that the information that follows this message WILL be needed for successful completion of Barsic’s world. Consider this fair and legal warning that Barsic’ s world can be difficult if you do not master the following skills

Managing Debt- Credit and Loans  Why do we shop using credit?  It allows us to increase our Standard of Living

Positives 1. You can buy more things 2. You can buy more expensive things 3. Delay of payments 4. Emergencies/ hard times 5. Buy without cash 6. Get the product now 7. Can save you money 8. Makes the economy bigger

Negatives 1. Must pay back more than the product is worth 2. Still paying after the product is no longer in use 3. Less money for other things 4. Easy to spend more than you can pay back 5. Deficit spending

Types of credit 1. Charge accounts(credit cards) a. Upper limits b. Interest terms- (avg 8-30%) 1. charged monthly- ex. 12% APR is 1% MPR 2. possible grace period 3. no penalty for early payoff 2. Installment plan a. Layaway plans 1. %down, %a month to payoff b. Rent to own 1. % down 2. Monthly payment- interest is taken out

Types of credit 3. Personal Loans a. % down, monthly payment b. Lower interest rates than Credit cards c. Collateral- used to back up a loan d. Capacity – to pay the loan back, 80% of income e. Character (counts) 1. personal history- including tickets, arrests 2. credit history 3. work history The last 3 are the 3 C’s if credit

Budgets 1. Money manager 2. Estimates of income and expenses 3. Use groupings to organize a. car- payment, maintenance, insurance b. School- tuition, books c. Home, rent, insurance, utilities, maint.