2. Dear God – I know that You are the source of all that I need to get through each day. I need to look for your wisdom and strength to make my day easier and better. In Jesus’ name I pray – Amen.

3. B Day: II Timothy 2:15 Do your best to present yourself to God as one approved by him, a worker who has no need to be ashamed...

5.  Answer true or false:  Adam started saving $50 per month when he turned 18, while Beth started saving $100 per month when she turned 24. They both earn 6% on their money. Beth will have more money by the time they both turn 30.  A dollar today is worth less than a dollar in the future.  The higher the interest rate, the less time it takes to reach a savings goal.  The smaller the down payment one makes on a car, the less interest the owner pays for a car loan.

6.  False. Adam will have more money when they turn 30 even though they both invested the same amount of money. Why? He started earlier – it’s the way compound interest works!  False. A $ today is worth more than in the future because of inflation.  True. The higher the rate, the faster money will grow.  False. More interest paid because more had to be financed in the loan.

7.  It’s called “compounding interest” – use it to your advantage!!!!  The Rule of 72 – you can use this simple rule to see how long it will take you to double your money.  How? Divide 72 by the interest rate: › Example: Your grandparents give you $200 for your birthday. If you put it into an account that earns 6% interest, how long until you will have $400? › 72/6% interest = 12 years

8. 1. How many years would it take to double $100 if it earned interest at a rate of 8% per year? Answer: 9 years (72/8 = 9) 2. How many years would it take to double $100 if it earned 7.75% interest per year? Answer: 9.29 years (72/7.75 = 9.29) 3. What interest rate would be necessary to double a $100 investment in 24 years? Answer: 3% (72/24 = 3) 4. What interest rate would be necessary to double a $100 investment in 11 years? Answer: 6.55% (72/11 = 6.545)

9. › Is there a difference between “creating a financial plan” and “building wealth”?

10.  Budgeting  Saving  Investing

11.  Get a Financial Plan Video (12 minutes)  List the items mentioned to build wealth. Quiz???

12.  Pay Yourself First – SAVE!!  Spend less than you earn  Save Early  Save Regularly  Control Spending  Control Use of Credit

14.  What are some dangers of debt?

15. 1. Nearly _____% of teens owe money to either a person or company, with an average debt of ______. 2. About _______% of teens ages 16-18 already have more than $1,000 in debt. 3. _____% of teens say they understand how credit card interest and fees work. 4. _____% of teens say they know how to establish good credit. Answers : 1. 33%, $230 2. 26% 3. 30% 4. 36%

16.  Borrowing from a friend/parent/sibling  Co-signing a loan  Cash advance/rent-to-own/payday loans  Gambling  Car loans/leasing  Impulse buying  Mortgage  Credit cards

18.  Unit 2, Chapter 4, Part 2 “Dangers of Debt” (12 minutes)

19.  Payday loans - has the highest rate of interest  Credit cards – next-highest rate of interest  Installment loans – a few months to a few years; set monthly payment amounts  Student loans – used for tuition and other college expenses; don’t have to pay back until you graduate; low interest rate  Mortgage – to purchase a home; generally 30 years (can be 15 yrs or other); income tax break

21. The rewards:  Convenience  Protection  Emergencies  Builds a credit history  Special offers  Bonuses

22.  Interest  Overspending  Debt  Identity Theft

23. The 4 C’s of Credit › Collateral – an asset of value that lenders can take from you if you don’t repay the loan as promised – ex. house, car › Capital – personal items of value that can be sold if you can’t repay a loan › Capacity – Are you able to repay the loan? How are your income and employment histories? › Character – are you trustworthy? What is your credit record? Do you pay bills on time?

24.  Always read the fine print before you sign on the dotted line.  Consider a loan for large purchases rather than using a credit card with a high interest rate.  Make it a point to pay credit cards in full every month. Pay as much extra as you can each month on other loans.  Pay a bill at least a week before the due date.  Arrange for automatic paym ents when possible – it helps to avoid late payments.  Save!!!! Then you rarely need credit or loans

25.  What is it?  Watch the video and answer these questions:  How does identity theft happen?  What can you do to prevent it?

26. ID Theft Face-Off