A Dealing with Dollar $ workshop Understanding Credit and Debt.

Slides:

Advertisements

Similar presentations

Credit Buy Now, Pay Later. Credit Someone is willing to loan you money (principal) in exchange for your promise to pay it back, usually with interest.

Advertisements

Debt is when you owe someone money. The someone can be a bank (like a house loanalso known as a mortgage, or a car loan), OR the someone can be a credit.

The Importance of Credit Brought to you by Work.

Unit 6: Credit Section 3: Make Credit Work for You.

Credit Card Basics. Getting the idea Debit cards can be used almost anywhere that credit cards can be used. But there is a big difference between them.

Bankruptcy. Importance of Numbers What do you know about bankruptcy?

In Unit 4 we will see the importance of using and managing credit effectively in the financial planning process.

CREDIT. ADVANTAGES OF CREDIT advantages: o Able to buy needed items now o Don’t have to carry cash o Creates a record of purchases o More convenient than.

Unit 2 Personal Finance. Unit 2 At the end of this unit, students should be able to: On completion of this unit, students will be able to: Understand.

CALM.  Able to buy needed items now and pay later.  Don’t have to carry cash  Creates a record of purchases  More convenient than writing cheques.

Unit 4 - Good Debt, Bad Debt: Using Credit Wisely PG 73.

Going into Debt. Americans and Credit What is credit? What is credit? Receiving funds directly or indirectly, to buy goods and services w/ promise to.

CAN YOU ADD TO YOUR PERSONAL TREASURE? MAKE MONEY LIKE A BANKER.

Consumer Math p Definitions  Down payment – part of the price paid at the time of purchase  Financed – borrowed  Mortgage – a property loan.

How a home loan becomes a security?. Firstly, I choose a house that I would like to buy. Than go to the saving Banks.

Credit Cards An Introduction “Hi! Nice to meet you!”

Mr. Stasa – Willoughby-Eastlake City Schools ©

  center-com/781-understanding-your-credit-score- video.htm#mkcpgn=snag1

Chapter 4 “going into debt”

$ tartNow A 10 hour Financial Literacy Programme for young people on the Youth Payment and Young Parent Payment Scheme Delivered by New Zealand Federation.

The Importance of a Good Credit Score and How to Read a Credit Report

Section 4C Loan Payments, and Credit Cards Pages C.

Section 5-1 Monthly Payments. What do you know about Credit? Credit is whenever goods, cash, or services are provided in the promise to pay at a future.

Credit Consumer Economics. What is credit? The ability to borrow money now with the promise that you will repay it in the future. Credit can be a useful.

Section 4D Loan Payments, and Credit Cards Pages

1.1 Debt, Interest & APR Check out the ‘simple interest explained’ video at © moneyskool.org 2015.

Fifth Third Bank, Member FDIC. Eisenhower High School September 15, 2013.

Bankruptcy. A legal process to get out of debt when you can no longer make all your required payment.

Credit What YOU need to know!. What is Credit? Credit is borrowing money now to make an immediate purchase and promising to repay it later.

Unit 7: Credit- You’re in Charge?

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

A Dealing with Dollar $ workshop Financial Choices and Options.

Buy Now Pay Later….  How to analyze the advantages & disadvantages of consumer credit  How to distinguish among various types of consumer credit  How.

 the ability to borrow money in return for the promise of REPAYMENT  Before using credit you should ask your self:  Is it a want or a need?  Do you.

SESSION 3: FINANCIAL GOAL SETTING, SPENDING, AND CREDIT TALKING POINTS on SETTING & ACHIEVING FINANCIAL GOALS FINANCIAL GOAL SETTING, SPENDING, AND CREDIT.

Going into debt.  Credit- The receiving of money either directly or indirectly to buy goods and services today with the promise to pay for them in the.

1 Chapter 2 Plugging the Holes. 2 What are three wealth building principles?

Credit Basics. Some old stats 83% of college students have at least one credit card 45% of college students are in credit card debt –Average debt over.

 What are advantages of credit  What are disadvantages of credit.

Chapter 4.  What is Credit? ◦ Principal + Interest  Installment Debt ◦ Equal Payments ◦ Durable Goods ◦ Longer Term = Lower Payment BUT ◦ More Interest.

Unit 9: Financial, Economic, and Business Technology Competency 3: Select strategies to use in handling credit and managing debt.

Personal Financial Planning Steps in Creating the Plan.

Credit Cards. Questions we will answer… What is credit? What does it cost to use credit? What are the advantages of using credit? Where can you get credit?

Buy Now, Pay Later – Where’s the Catch?. What do you think...  If you ever wanted to get a loan or a credit card what would you have to do?  Could you.

Credit and Debt. The basic idea You want money (say to buy a house) You go to the bank to borrow some They agree to give you money, but only if you pay.

College lesson four about credit.

Calculating Cost Of Credit. Types of Credit Closed-End Credit ◦ One-time loan that you pay back over a specified period of time in payments of equal amounts.

DEBT MANAGEMENT CHAPTER 4, SECTION 5. I CAN… Analyze a credit card account when minimum payments are made. Calculate debt-to-income ratio.

Financial Statement Basics BDI3C. Major Financial Statements  Balance Sheet Individual: Net Worth Statement  Income Statement  Cashflow Statement.

Simple Interest. Simple Interest – * the amount of money you must pay back for borrowing money from a bank or on a credit card or * the amount of money.

 Credit  Equity  Credit: the ability to borrow money in return for a promise of future repayment. Future repayment usually includes interest.

Checking Savings BANKING. Checking Account 90% of transactions involving money are made through some form of debit.

1. Debt, Interest & Payments © moneyskool.org. People borrow money for all kinds of different reasons – to buy a house, go to university, start a business.

Credit Credit: borrowing money to pay for something now while promising to repay it later. Lender: the person loaning the money Borrower: receives the.

Grade 12 Family Studies.  Do you have a credit card?  What is it used for?  How is it like a loan?

Independent Living November 30, Credit: the use of someone else’s money, borrowed now with the agreement to repay later Originally used in the United.

SESSION 20: BORROWING Talking Points Borrowing 1. People receive credit when they obtain the use of someone else’s money to purchase goods or services.

Let’s Talk About Money & how make it makes cents!.

Chapter 7 Buying Decisions. Slide 2 Where Can Consumers Get Credit? Credit is the ability to borrow money and pay it back later. 7-2 Getting Started with.

Credit. credit is money loaned in exchange for your promise to pay it back later with interest. interest is a amount of money paid to use someone else’s.

CREDIT CARDS CALM 20. What is a Credit Card? A credit card can be a convenient way to pay for almost anything, from a new pair of shoes to a holiday in.

Bankruptcy. A legal process to get out of debt when you can no longer make all your required payment.

 Income from work- wages (paid by hour or unit of production) or salary (paid weekly, monthly, yearly)  Income from wealth- things you own- bank accounts,

Chapter 4 section 1: Going into debt Credit: receipt of money either directly or indirectly used to buy goods and services in the present with the promise.

Borrowing and saving Savings. about the risks and consequences of borrowing money that it’s important to think carefully and look at all of the information.

Why Credit Matters?. Do Now  What was your last purchase and how did you pay for it? Did you use cash, debit credit or check?  What are the differences.

How to Improve Your Credit Score Who Determines your Score? Three Credit Bureaus:

Who Determines your Score? Three Credit Bureaus:

Presentation transcript:

a Dealing with Dollar $ workshop Understanding Credit and Debt

Money that is available to us for borrowing What promise is involved with use of credit? a. To share what you have bought b. To send them a thank you card c. To repay using future income Credit

“Good Credit” should improve someone’s financial position. What they have bought will increase in value over time. “Bad Credit” won’t improve someone’s financial position. What they are buying has no value or will decline in value.

Credit Card Mortgages Lines of Credit

The total amount of money we owe Debt

Tim Horton’s sells… Toyota sells… Dominion sells… A Bank sells… Borrowing

This is the cost of borrowing money. You get a loan of $1000 at a rate of 5% What is the cost of borrowing the $1000? What if the interest rate is higher at 12% What is the cost of borrowing the $1000?

Don’t take on more debt than you can handle Manage you debt by making payments on time To pay off debt  Sell possessions  Consolidate your debts  Go to a credit counsellor  Bankruptcy

A ______ ______ is based on your record of repaying money that you have borrowed. A ______ ______ is an estimate of whether or not you can repay credit.