Marriage and Family Life Unit 6: Making Everyday Living Decisions

Objective 1: Differentiate in the benefits of owning vs. renting a home. Benefits of owning a home Potential income tax deductions Equity builds in home Value of home may increase Ability to make decisions about home without outside approval Fixed payment

Objective 1: Differentiate in the benefits of owning vs. renting a home. Benefits of renting a home Not responsible for major home repairs, improvements or property taxes Less financial risk No long-term mortgage commitment Allows flexibility for future moves Easier to end a rental lease agreement Monthly payment may include some utilities Smaller initial cost to move in

Objective 2: Determine criteria to use when selecting a place to live. Cost Availability to public transportation and/or major expressways Suitability to your lifestyle Proximity to work/shopping/leisure activities Crime rate School district where home is located

Objective 3: Differentiate in the advantages and disadvantages of using credit. Advantages Allows you to buy products and services when cash is not available You may be able to take advantage of special sales and bargains Allows use of good or service while making payments on the item Provides a way of obtaining emergency funds or making emergency purchases

Objective 3: Differentiate in the advantages and disadvantages of using credit. Advantages Helps make purchases that are a part of a short-term financial plan Establishes and helps maintain a good credit rating Provides a method for returning merchandise Eliminates the need to carry cash

Objective 3: Differentiate in the advantages and disadvantages of using credit. Disadvantages Encourages you to spend more than you can afford May encourage impulse spending Requires future income to be used for past expenses Credit contracts may be confusing and you may not realize what financial commitments you have made Interest on debt increases the cost of purchase

Objective 3: Differentiate in the advantages and disadvantages of using credit. Disadvantages Encourages a need for instant gratification Items bought on credit can be repossessed if you are unable to make payments Encourages you to only buy where credit cards can be used Can increase personal stress Failure to pay on time will hurt your credit rating

Objective 4: Classify cards that are used to make purchases. Credit card Secured credit card Debit card Pre-paid card

Objective 5: Match investment options to the correct description. Savings Certificate of deposit (CD) Savings account Money market account

Objective 5: Match investment options to the correct description. Investing Annuity Bond Stocks Individual Retirement Account (IRA) Roth IRA Mutual fund 401(k) 403 (b) 529 college savings plan

Objective 6: Create a financial plan for retirement.

Objective 7: Match health insurance options to the correct description. Health Maintenance Organization (HMO) Healthcare Savings Account (HSA) Indemnity health insurance Preferred Provider Organization (PPO)

Objective 8: Determine criteria to use when selecting a car. Condition of vehicle Consumer rating Cost of repairs Cost of vehicle Cost of vehicle insurance Depreciation Desired features Financing available Fuel efficiency Reliability Safety Planned length of ownership Planned use Warranty

Objective 9: Plan a family vacation.

Objective 10: Determine factors to consider when planning meals. Time available for meal preparation Nutritional value of food Money available for food Special dietary requirements Likes and dislikes of family members Equipment and facilities available Seasonal food available Daily food requirements

Objective 11: Plan a family’s meals for one week.