1. A Class on Loans?!?!?!

2. Class Debate!
OBJECTIVE
Students will be able to
Decide whether taking out a loan is a responsible decision
Describe the difference between renting, leasing and buying
AGENDA
Class Debate
How to Get a Loan
Leasing v. Renting
Mr. Bird hates loans. We all know this. For the class debate, it will be the class vs. Mr. Bird. Your mission? Convince Mr. Bird that loans aren’t always bad
As your bell ringer, brainstorm arguments that you could use to convince me!

3. A Couple of Announcements
Grades in Skyward should be up to date
Test on Thursday

4. Class Debate
The 4 people in the “hot seats” are the ones who can participate in the debate. At any point, you may tag your representative out and replace them in the hot seat.
Everyone needs to be in the hot seat at least once! If you’re in the hot seat but don’t have a good response, look and see if one of your classmates can tag you out!
Take notes of the arguments (esp. if you’re not in the hot seat) so that you can help the class!

5. Class Debate- Format I go first, because I’m greedy XD
After each of my points, every hot seat has the option (but doesn’t have to) to make a comment.
That comment can be a response to me or a new point for your side

6. So loans can be okay?...
Ideally, you would never buy something that you didn’t have the money for right then, but there are somethings that would be very difficult for.
At some point in your life, you will probably take out a loan, so we gotta get you ready!

7. The Process
You’ll go to a loan agency (typically tied with your bank) and sit down with an expert who will determine if you qualify for a loan
Based on your income, expenses, credit score, etc.
You may need a co-signer, especially while you’re building credit, who will vouch for you and say that you’ll pay off the loan
Alternatively, you may need to provide some sort of collateral

8. Types of Loans
Amortized Loan- A loan where most of your monthly payment goes toward paying off interest and a specified amount works toward paying off the principle
Most loans
Mortgage- a loan (typically used for buying a house) where you put your house up as collateral
What does it mean to “take out a second mortgage?”

9. Other Options Renting v. Leasing Activity What’s the difference?
Yes, you can lease a house. The landlord can’t change the terms of your arrangement while the lease is going on. He can (with written notice) if you’re renting

10. Credit Score Dave Ramsey hates debt even more than I do…
I think he takes it to an extreme that isn’t fair. A credit score can be a useful tool, if you use it responsibly
How does this align with what I’ve been teaching you?