1. Building Your College & Adult Financial Foundation
Financial Capability Curriculum Series

2. Credit Profile

3. What is Credit?
Do you think people are more likely to buy something they do not need when they use a credit card? ? C1

4. What is Credit? C1 Good Credit: Purchases $1000 Interest Rate 7%
Minimum Payment $10
Years to Pay off 12 years
Interest Paid $440
Actual Cost $1,440
Bad Credit:
Purchases $1000
Interest Rate 27%
Minimum Payment $23
Years to Pay off 12 years
Interest Paid $2,312
Actual Cost $3,312
Purchase with Savings: Purchases $ Amount Saved/month $125 8 months to save $1,000 Interest earned on money in savings $30 Actual Cost $970 C1

5. What is Credit?
Credit cards can be a tool to build your credit rating.
To avoid interest and extra expenses pay your credit card balance off in full every month.
Paying off your credit cards in full allows you to build your credit history without paying interest charges.
WARNING: Before getting a credit card:
Have 6 months worth of bills saved
Have a working budget
Control your spending
Have a clear written plan in place C1

6. Risk Management & Insurance

7. Parts of Insurance AR-2 Premium Deductible Co-payment Exclusions
Out-of-pocket maximums
AR-2