1. Millennials are biggest part of Labor Force

2. Interest Rates Loans for Houses, Cars & College

3. Short Term Interest Rates 2016 0.25% Short term interest rates are set by Federal Reserve

4. Interest Rates & Loans Interest Rates are the “price of money” –i.e. Cost of borrowing (buying) money Some loans have fixed interest rates –Monthly payment “fixed” for life of loan Some loans have adjustable interest rates –Monthly payment changes—could ↑ or ↓

5. Buying a house ( Before 2000 ) Consumers were required to put a 20% down payment For a $500,000 home: –$100,000 down payment & borrow $400,000 (mortgage) –loan is paid back over 30-years at a Fixed interest rate –(This meant the monthly payment stayed the same for 30-years) Example: $200,000 home $50,000 Down payment Borrow $150,000 @ 3.75% 30 year Fixed

6. Interest Rate Worksheet

8. Boomerang Kids https://www.youtube.com/watch?v=uwMxOsD2Dhg