1. L EARNING, E ARNING, AND I NVESTING FOR A N EW G ENERATION © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY C REDIT : Y OUR B EST F RIEND OR Y OUR W ORST E NEMY ? L ESSON 12

2. L EARNING, E ARNING, AND I NVESTING FOR A N EW G ENERATION © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY Credit Definitions Credit The ability to obtain goods and services before paying for them, based on a promise to pay later. Individuals who use credit are borrowing money. Revolving credit Credit that is available up to a limit and automatically renewed as debts are paid off or paid down. People who use revolving credit often make partial payments on their unpaid balances at regular intervals. Credit-card accounts offer revolving credit to credit-card users. L ESSON 12 – C REDIT : Y OUR B EST F RIEND OR Y OUR W ORST E NEMY ? S LIDE 12.1

3. L EARNING, E ARNING, AND I NVESTING FOR A N EW G ENERATION © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY Answers to Worksheet for Justin Jabowski JanuaryPurchases$235.00 Minus minimum payment11.75 Unpaid balance223.25 FebruaryPurchases157.00 Previous balance223.25 Plus finance charge3.35 Total owed383.60 Minus minimum payment19.18 Unpaid balance364.42 L ESSON 12 – C REDIT : Y OUR B EST F RIEND OR Y OUR W ORST E NEMY ? S LIDE 12.2

4. L EARNING, E ARNING, AND I NVESTING FOR A N EW G ENERATION © C OUNCIL FOR E CONOMIC E DUCATION, N EW Y ORK, NY Answers to Worksheet for Justin Jabowski L ESSON 12 – C REDIT : Y OUR B EST F RIEND OR Y OUR W ORST E NEMY ? MarchPurchases270.00 Previous balance364.42 Plus finance charge5.47 Total owed639.89 Minus minimum payment31.99 Unpaid balance607.90 AprilPurchases490.00 Previous balance607.90 Plus finance charge9.12 Total owed1,107.02 Minus minimum payment55.35 Unpaid balance1,051.97 S LIDE 12.3