1. { You need your notes out. Answer the following questions as best you can in your notes based on what you already know. 1. What is the difference between credit and debit cards? 2. What is interest and how does it negatively affect you? 3. How can over-using credit cards lead you to debt?

2. Credit Cards The best way to maximize the benefits of credit cards is to understand your financial lifestyle - your money needs and wants. Once you determine how you'll use a credit card, it's important to understand all of the card's features including:

3. { You need your notes out. Answer the following questions as best you can in your notes based on what you already know. 1. What is the difference between a checking account and a savings account? 2. Explain in your own words what you think a “credit score” is?

4. Different types of accounts  Checking accounts  Simplest type of account  Allows numerous withdrawals and deposits  Typically no to little cost  Typically no interest gained for the customer  Savings account  Limited withdrawals and deposits  Interest gained for the user based on how much is deposited

5. Different types of accounts  Debit cards  Pulls money you already have from your checking account  Credit Card  Allows your to borrow up to a certain amount per month to pay for items.

6.  Annual Fee-  The once-a-year cost of owning a credit card. The annual fee is part of the total cost of credit.  Annual Percentage Rate-  The yearly interest rate charged on outstanding credit card balances.  Interest Rate-  How often a fee is paid by a borrower for the use of the money that they borrow. Usually a percentage of the amount borrowed Credit Cards

7.  Advantages  Immediate Access: Need a new set of tires? Credit can help with an expensive, unexpected emergency and give you the flexibility to pay it over time.  Security: Lose cash, and it's gone. Lose a credit card, and it can be cancelled. Also, if you report a lost or stolen card promptly, you're protected against its unauthorized use.  Record Keeping: Your credit card statement is an itemized list of your monthly expenditures, which can be helpful when it comes to budgeting.  Convenience: Credit cards are accepted at more places than checks, and they're generally faster to use.  Bill Consolidation: Bills can be paid automatically via credit card, consolidating several payments into a single lump sum.  Rewards: Using a credit card with a rewards program may earn you benefits like free travel. Credit Cards

8. { You need your notes on credit cards from the last two days, and a blank sheet of paper. Be in your seat when the bell rings

9.  Minimum Payment  The lowest amount of money that you are required to pay on your credit card statement each month in order to keep the account in good standing.  Main Disadvantage-  The added costs in Interest rates and fees. True Cost of credit cards True Cost of credit cards Credit Cards

10.  When you apply for credit, lenders determine your credit risk by examining your credit scores  Guides for lenders on what a person’s credit risk is.  Scores range from 300-850. The higher the score, the lower the risk for a lender. Credit Score

11.  Money a borrower owes a lender  Debt problems are created when the money owed is more than a borrower can repay. Debt