1. DO NOW ACTIVITY:
the check below, & find the FIVE parts of the check that are WRONG!
Jan 28th
My sweetest little cherubs
150.00
One Hundred and Fifty Dollars 00/
For being so smart!!

2. Credit

3. Credit Vocabulary Review
Credit: a contractual agreement where a borrow receives something of value now, and agrees to repay the lender at a later date
Credit Card: any card that can be used repeatedly to borrow money or buy products & services on credit
Issued by banks, retail stores, businesses, etc

4. Credit Vocabulary Review
APR (Annual Percentage Rate): interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance form another card
APR states interest as a yearly rate
Grace Period: period between the end of your billing cycle, and the day your payment is due
You won’t incur interest charges during this time
If you have a previous balance, there is no grace period

5. “Before Choosing a Credit Card”
Before opening a credit card, think about the following questions …
What types of purchases would I be making with a credit card?
Do I need this item now?
Can the purchase of this item wait until I have the money?
Will I be able to pay off the total bill at the end of the billing cycle?

6. “How to Establish, Use, & Protect Your Credit”
Read this article individually.
After reading, discuss this article in your group.
What are the 2/3 most important points in this article?

7. Steps to Establishing Credit
Maintain savings & checking accounts
Show you know how to manage your $$
Get a department-store charge card
Can only that store, easier to get
USE RESPONSIBLY!!
Have someone with good credit cosign your credit application, if possible
Can use someone else’s good credit to establish your own!

8. Credit/loans are NOT FREE MONEY!
“rented money” – have to pay it back
Also have to pay finance charges (interest & fees charged for some credit)
Only spend what you know you can pay back or only on what you absolutely need (not just want!)

9. READ THE FINE PRINT ON EVERYTHING!!
Never sign unless you know what you’re agreeing to!
If you don’t understand what it’s saying, ASK SOMEONE!
There are numbers to call, or go visit a bank rep or financial consultant
Credit is NOT free money! Use it wisely!

10. To open credit or not to open credit? That is the question …
In your groups, choose someone to read the scenario out loud.
Make a list of the pros and cons of the person in this scenario opening a credit card.
Your group must reach a consensus - yes or no?
Explain your reasoning!
What are the benefits & consequences of opening a card?