1. Financial Literacy Buying a Car...

2. Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest on your money. Bank Loan – Borrow money from a bank. Expect to pay back over 12 – 60 months at an interest rate of around 7.7% APR. Credit Card – No need to arrange the loan. Pay back a minimum amount each month. Expect to pay 17% - 22% interest on outstanding balance. Family – Likely to be generous! May or may not expect you to pay back the loan/gift. Don't count on them for another handout next year – they have to pay bills too!

3. Important Terms: APR: Annual Percentage Rate. This is the 'true' interest rate you will pay on money borrowed. Savings Account: If you save money the bank will pay you interest. Bank Loan: Borrowing money from a bank. Often 'secured' against the item you purchase.

4. Timeline Activity:

5. Summing it up..... Can you come up with a rule to decide which expenses are best met by saving and which by borrowing?