1. Health DMA Please take out a piece of paper and complete the following: 1.Write down the vocabulary word and definition. 2. Choose ONE of these options and complete it. –Draw a picture that illustrates/explains the vocabulary word. –Rewrite the definition in your own words. –Write a sentence that includes the term and the information from the definition. Anxiety Apprehension or dread in anticipation of a future menace or an imminent but unspecified danger, usually imagined or exaggerated.

2. Today’s Agenda DMA Personal finances ◦Prioritize income ◦Credit ◦Savings

3. Info in RED needs to go into your notes

4. Name That Service Everyone needs a handout Put the name of the service next to its description ◦The signs around the room have the names of the services ◦Move around quietly to find the answers

5. What is a credit card? Why do some people have higher limits than others?

6. Why Is Credit Important? It’s convenient Emergencies Pay for purchases over time ◦Interest % can be high – pay entire balance every month. Can affect your ability to obtain employment, housing, & insurance

7. What is Collateral? Security/asset If you do not repay the loan ◦the lender is allowed to take/keep the collateral.

8. Getting into our time machine…. It’s in the future You want to purchase your 1 st home…. what do you need?

9. Home Loans ◦Primary loan for purchasing a home Home Refinance Loans ◦Loan that replaces primary home loan Home Equity Loans ◦Second mortgage/loan secured by the borrower’s home

10. Home Equity A lender may allow you to borrow up to a certain percentage of your home’s value (usually 80%) Value of Home$250,000 Minus debt-200,000 Equity$50,000

11. The Four Cs Capacity: Your ability to meet payments Capital: Value of your assets and net worth Character: How you paid your bills or debts in the past Collateral: Property/assets used to secure the loan

12. How can you increase your income? Samar was doing well financially until he was laid off from work. He has not been able to find work yet, and is concerned about how he is going to pay his bills because he has almost depleted his savings. What steps could he take to increase his income? The Jacksons’ home was recently destroyed by a large man-eating robot. They did not have adequate insurance coverage to cover the damages. How might they increase their income?

13. What is the difference between a need & a want? Discuss with a neighbor…

14. Prioritize Your Expenses Basic Necessities Mortgage/rent Food Utilities Transportation Medication Insurance Should always come before paying other expenses

15. What can you do to decrease your monthly expenses? Discuss with a neighbor…

16. Decrease your Expenses… If Wheeler hands you a marker – please write a suggestion on the white board…

17. Decrease Your Expenses Start small by reducing/eliminating one new expense every month Think twice before spending Plan & save for certain items rather than using your credit card

18. Decrease Your Expenses Tips to decreasing your expenses: Develop & follow a spending plan Don’t eat out at a restaurant Become a more conscientious shopper ◦Make a list and stick to it, ◦Purchase only necessary items ◦Shop sales Avoid stores & shopping for fun Cut back on or eliminate extra expenses ◦vacations, movies, sporting events, car washes, cable/satellite TV or extended packages including movie channels

19. Decrease Your Expenses Reduce your utility bills ◦downsize or get rid of your cell phone, cable/satelite TV, conserve energy & water; cancel land-line phone Contact creditors to negotiate a lower interest rate or monthly payment. Shop around to get the best deal on big- ticket items ◦cars, appliances, insurance, loans, child or elder care; and cell phone, Internet, & cable/satellite plans

20. Scenario Form a group of 2-3 people Grab 1 handout ◦Put everyone’s name on it Read the scenario ◦Fill-out the “Monthly Income & Expense Worksheet” together ◦Answer the questions together  The handout is double-sided!! Turn in the handout when you are done