1. How are things in the Stock Market Game?
Are you diversifying your risk? You should have stocks in a variety of different business sectors. Technology stocks, consumer good stocks, financial stocks, Industrial stocks. Etc…

2. Warm Up What is the difference between credit cards & debit cards?
Are both forms of money? How?
Warm Up

3. PFL Unit 5.4 https://www.youtube.com/watch?v=EoyJ6lo6C1Q
Forms of Credit
PFL Unit 5.4

4. Your Credit score is a snapshot of your credit history (profile) at the specific moment your score is given. Your score is based on your credit report, which contains your entire credit history.
This document includes the good and bad of your credit –related decisions, the latter of which stay on your credit report for seven years.
Having a good credit score is important because the power of a good score is growing in significance; credit checks are now customary when trying to get an apartment or new job.

5. Credit- loans, credit cards, any deferred payment: spending money you don’t have (borrowing)
5 Cs Creditors look for: 6 is extra
Capacity- ability to repay debt (do you have a job?)
Character- willingness to repay debts (do you have a good credit score?)
Collateral- property to secure a loan (House, land, car, investments)
Conditions: outside forces that may be a loan risky. The state of the economy, high unemployment in the area of expertise of the individual, etc.
Credit History: Your credit score indicates how well you handle your bills and money.
Capital: assets the customer has that show stability and investments show money management skills
Interest-amount of money you pay yearly to be able to use the bank’s money.
I. What is Credit?

6. Is Establishing Credit Necessary?
YES!!! In the 21st century you need to establish credit if you want to do the following things…
Buy a Home
Buy a Car
Receive a good interest rate on a loan
Having a good credit score shows lenders that you are reliable and will pay them back

7. Est. Good Credit
1. Credit Score: a number assigned to a person that lets lenders know your ability to pay back a loan

8. 2. To est. good credit you must start buying things using credit and pay that money back in a timely manner.
Helpful tips…
Have bills in your name
Always pay bills on time or earlier and try to pay more than the minimum payment
Keep a steady job
Don’t move often
Keep your debt low
Use your cards responsibly
Stick to a budget

9. How do protect and manage your credit history
Spend only what you make.
Don’t sign up for credit cards and wrack up credit card bills.
Pay off your credit cards at the end of the month.
Use them for true emergencies.
Get a good education so you can find a good paying job.
Practice safe and healthy habits so you don’t spend money on unnecessary health related expenses or spend money on drugs.
Don’t throw away hard earned money on drugs, alcohol, and cigarettes. You would be surprised how quickly the money drains away.
Don’t gamble.
Buy things on sale, look for bargains.
When starting off- look for a used car.
Save and put money away to use as a down payment on a first home. Rule of thumb is to have at least 3 months of your house payment in savings in case of a lay off.
Be careful buying on line products- make sure it is a protected site so you don’t fall into identity theft.
Avoid eating out a lot-cook at home.

10. 3. Credit Line: how much money is available for borrowing
4. Financing: borrowing money to pay for an item you will pay off over time
5. Debt: money that you owe someone (person/business/organization) else

11. II. Common Forms of Credit
Credit Card -Form of revolving credit borrow money on an ongoing basis
Monthly payments based on interest rates*
APR: the interest rate you pay on using the credit card.
cards/education/what-is-apr.go
2. At minimum payments, takes a long time to get out of debt
3. Responsible consumers use credit cards only to establish good credit!
4. Check out the different fees you may incur with credit cards.
fees-lis/
II. Common Forms of Credit

12. Annual Percentage Rate (APR): shows you how much your borrowing will cost you over a year.
(1). This can help you decide which credit card is best for you

13. B. Mortgage –money borrowed to buy a house
Usually requires a down payment of 10% or 20%
A monthly payment + interest on the principle (amount borrowed) is paid
Foreclosure -If you stop making payments, the bank takes away your house!
Default means payment has stopped and the person is in arrears.( behind in their payments)
Read more: Name the Five C's of Credit Management | eHow.com credit-management.html#ixzz2N4C8i9na

14. C. Other Loans
Car loans – to purchase a car based on a set number of monthly payments
College loans –to pay for college today, which will be paid back after you graduate and get a job
Personal loans –Set amount of money for something other than a car, home or college

15. What is equity?
hat-is-equity/#axzz2N4DeU1Nv

16. Close
What is the cartoonist’s opinion about borrowing money for college?

17. http://www.calculatorweb.com/calculators/creditca rdpaycalc.shtml
Credit Cards

18. Protecting Entrepreneurs
Patent- exclusive right to sell a unique good or service
qud0
Franchise- contract that gives a single firm the right to sell its goods to others for a fee ex: McDonalds
Trademark -a brand name, symbol, image or words used to distinguish a product or service made by a company.
Copyright- intellectual rights to an artistic creation
Books, music, film

19. Warm Up http://www.youtube.com/watch?v=InzDjH1-9Ns
Why does YouTube want to educate users about copyright infringement?
What are the penalties for infringing on someone else’s copyright? Are the penalties too severe or too lenient? Defend your answer

20. What is ‘capital’ in terms of qualifying for credit?
machinery
Income
Training or education
Willingness to pay back debt

21. What is the most likely reason collateral is important to lenders?
It makes a borrower appear less credit worthy
It will be given to the lender upon failure to repay the loan
It guarantees the borrower has enough cash to repay the loan
The lender can meet federal regulations

22. Franchises Trademark Patent copyright
If you uploaded the new Eminem album onto Facebook to share with your friends you will have violated the laws protecting:
Franchises
Trademark
Patent
copyright

23. I. Checking v. Savings
A. Checking Account: A bank account where you can easily transfer and use your money

24. 1. Debit Card: $ that can be easily transferred in any transaction from your checking account (online, store, ATM machine)
2. Check: written statement asking for $ to be taken out of checking account

25. Checks 101

26. 3. Credits and Debits to Your Account
a. (+) Credits: $ you are adding to your account (deposits, paycheck, interest)
b. (-) Debits: $ you are removing from your account (writing a check, using your debit card, withdrawing $ from an ATM)

27. Let’s Write a Check Together!
You owe Mr. Switzer $50.36
You bought an AK Sweatshirt from him
We are paying him today 04/15/2017

28. B. Savings Account: A bank account where you store money and can earn money
1. Interest: earning extra money for lending it out

29. Let’s Make a Deposit!
You just had a birthday and received a paycheck. Now you need to make multiple deposits into your checking account:
$150.00
$25.00
$ Check

30. Let’s Make a Deposit!
You just had a birthday and received a paycheck. Now you need to make multiple deposits into your checking account:
$150.00
$25.00
$ Check

31. Let’s Balance our Checkbooks!

32. Closure: Write your Friend a Check!
Use the blank check to pay back your friend for the good/service they provided for you.
Once you receive a check from another person, double-check it to make sure it is correct then turn it in to Mrs. Patterson

33. Write a check in the amount of $ 999.76
Payee: Piedmont Heating & Cooling
Date: April 7, 2017
Check Writing

34. II. Credit v. Debit
A. Credit: spending $ that you don’t have (borrowing)
1. Interest: Paying extra $ for borrowing

35. B. Types of Credit
1. Credit Card: can borrow a certain amount of $ to spend
2. Student Loan
3. Car Loan
4. Mortgage (Home Loan)
a. Foreclosure: loosing your home because you do not pay your mortgage

36. Is Establishing Credit Necessary?
YES!!! In the 21st century you need to establish credit if you want to do the following things…
Buy a Home
Buy a Car
Receive a good interest rate on a loan
Having a good credit score shows lenders that you are reliable and will pay them back

37. C. Est. Good Credit
1. Credit Score: a number assigned to a person that lets lenders know your ability to pay back a loan

38. 2. To est. good credit you must start buying things using credit and pay that money back in a timely manner.
Helpful tips…
Have bills in your name
Always pay bills on time or earlier and try to pay more than the minimum payment
Keep a steady job
Don’t move often
Keep your debt low
Use your cards responsibly
Stick to a budget

39. 3. Credit Line: how much money is available for borrowing
4. Financing: borrowing money to pay for an item you will pay off over time
5. Debt: money that you owe someone (person/business/organization) else

40. Debit Card Pros You don’t to carry cash/checkbook
It’s safe b/c only you know your PIN
You are using the $ you actually have which can help with budgeting

41. Debit Card Cons
You must have enough $ in your account to make purchases
You have to remember your PIN to access cash
If you don’t keep track of your purchases, you could overdraw and have to pay a fine

42. Credit Card Pros
You can buy things before you have saved the entire purchase price
It is a way to pay for emergency expenses
Using it wisely and paying off on time can help you improve your credit score

43. Credit Card Cons You may have to pay a yearly fee for the card
You pay interest on the unpaid monthly balance. B/c of interest, you may pay more for items than if you paid cash