A Class on Loans?!?!?!

Class Debate! OBJECTIVE Students will be able to Decide whether taking out a loan is a responsible decision Describe the difference between renting, leasing and buying AGENDA Class Debate How to Get a Loan Leasing v. Renting Mr. Bird hates loans. We all know this. For the class debate, it will be the class vs. Mr. Bird. Your mission? Convince Mr. Bird that loans aren’t always bad As your bell ringer, brainstorm arguments that you could use to convince me!

A Couple of Announcements Grades in Skyward should be up to date Test on Thursday

Class Debate The 4 people in the “hot seats” are the ones who can participate in the debate. At any point, you may tag your representative out and replace them in the hot seat. Everyone needs to be in the hot seat at least once! If you’re in the hot seat but don’t have a good response, look and see if one of your classmates can tag you out! Take notes of the arguments (esp. if you’re not in the hot seat) so that you can help the class!

Class Debate- Format I go first, because I’m greedy XD After each of my points, every hot seat has the option (but doesn’t have to) to make a comment. That comment can be a response to me or a new point for your side

So loans can be okay?... Ideally, you would never buy something that you didn’t have the money for right then, but there are somethings that would be very difficult for. At some point in your life, you will probably take out a loan, so we gotta get you ready!

The Process You’ll go to a loan agency (typically tied with your bank) and sit down with an expert who will determine if you qualify for a loan Based on your income, expenses, credit score, etc. You may need a co-signer, especially while you’re building credit, who will vouch for you and say that you’ll pay off the loan Alternatively, you may need to provide some sort of collateral

Types of Loans Amortized Loan- A loan where most of your monthly payment goes toward paying off interest and a specified amount works toward paying off the principle Most loans Mortgage- a loan (typically used for buying a house) where you put your house up as collateral What does it mean to “take out a second mortgage?”

Other Options Renting v. Leasing Activity What’s the difference? Yes, you can lease a house. The landlord can’t change the terms of your arrangement while the lease is going on. He can (with written notice) if you’re renting

Credit Score Dave Ramsey hates debt even more than I do… http://www.foundationsu.com/high-school/on-demand/4 I think he takes it to an extreme that isn’t fair. A credit score can be a useful tool, if you use it responsibly How does this align with what I’ve been teaching you?