1. Grade 7 Social Studies Chapter 3
Personal Capital
Pages 54-57

2. 1. What is “personal capital”?
“personal capital” is anything that you have that can help you improve your economic situation.

3. 2. What might “personal capital” include?
Examples
Savings in the bank

4. Personal capital….
Tools

5. Personal capital….
A particular skill
talent
Education and training

6. Personal capital…..
Property

7. Personal capital…..
A truck
A bike

8. An idea for a product or business
Personal capital….
An idea for a product or business
“entrepreneur”

9. Personal capital…..
Willingness to work hard

10. Personal capital…..
Many others things can be personal capital

11. USING MONEY WISELY
3. Describe how having a little more income can help increase personal capital and create more opportunities to make money.

12. You can take advantage of buying things you need on sale
You can save for a down payment for a house
You can create “economic security” – having extra money for emergencies
Etc.

13. 4. What is usually a family’s biggest capital investment?
Usually buying a house is the largest capital investment for most families.

14. 5. Describe how a mortgage works to build personal capital for families.
You need a “down payment”, which is a portion of the total cost of the house
Example: If a house costs $200,000, you might need a down payment of 10%, which is $20,000.

15. You apply to a bank to get a “mortgage” which is a special kind of bank loan specifically for buying a house.
Ex: Down payment $20,000
Mortgage loan $180,000

16. The family owns a portion of the house, the bank owns the rest
Each month the family pays their “mortgage” payment to the bank, and over time, the family “pays off” the mortgage, and owns the house.

17. When the mortgage is paid off, (this usually takes about 20 years), the family owns the house
This is personal capital for the family because the money they pay comes back to them when they want to sell the house.

18. 6. Why is it hard to break the poverty cycle?
Its very hard to save for a down payment when you are in poverty or just getting by
Always pay rent instead of having the chance to own a house and build personal capital

19. Other reasons: Poor health Not enough education to get a better job
Can’t afford child care – can’t work
Many other reasons

20. 7. What are some ways that can make it possible for people to break out of a poverty cycle?
Get good grades in school – qualify for scholarships
Government programs for financial help
Help from community organizations
Ex: Habitat for Humanity
Help from friends and family

21. 8. What is “Habitat for Humanity”?
Habitat for Humanity is a volunteer (not government) organization that helps deserving families be able to buy a house

22. A “deserving family” would be a family that is hard working but low income.

23. Many families that are “just getting by” will never be able to save enough money for a down payment on a house
They have to pay rent, missing the opportunity to build personal capital by buying a house

24. 9. How does it get capital to build houses
Cash donations
Volunteer workers
Donated materials from businesses

25. 10. Who builds the houses? Volunteers Churches Service clubs
Community groups
Individual volunteers

26. 11. What does a person have to invest in order to be eligible for a “Habitat for Humanity” home?
A $500 down payment
500 “sweat equity” hours working on the house

27. 12. What are some of the challenges that Ana Nan overcame in order to get her house for herself and her son?
Came to Canada from Romania
Had only a suitcase and $100 with her
Had to learn English
Took nurses courses so she could work

28. http://video. todaysfarmer