A generation weighed down by debt Presented by Hana Prashker and Sonia Noriega
Summary “A generation weighed down by debt” Marilyn Gardner Christian Science Monitor November 28, 2004
How do students get credit cards? Credit card companies on college campuses 0% interest for the first month only High interest rates
Why are young people in debt? Student loans High credit card balances Housing prices Low salaries Unemployment
What are the steps for getting out of debt? Obtain a credit report Listing all credit card accounts Make a budget Bankruptcy Legal state of being unable to pay bills Recorded for 10 years
How can young people prevent themselves from getting into debt? Financial strategy classes Limit spending Limit credit card use Obtain free credit reports
Reaction What should students be taught in a high school financial strategy class?
Credit Cards Aggressive marketing Promotional periods High interest rates Finance charges Time and place to use them Time and place not to use them
Loans Advantages Disadvantages Continue education Pay after college Emergencies Disadvantages High interest rates Must pay them back
Interest Rates Definition How interest is calculated
Manage Money Develop a budget Record transactions Limit unnecessary spending
Identity Theft Prevention - One credit card for online purchases - Shred documents - Change passwords often - “Trashing”
Vocabulary Enticing (adj.) – alluring, tempting, inviting “Enticing offers – 0% interest! – Turned out to be for the first month only.”
Protect yourself!