- Evaluate and refute the myths associated with debt.
- Apply systematic decision making to identify the most cost-effective option for purchasing a car.
- Identify various types of mortgage loans and the most cost-effective option for purchasing a home.
- Evaluate ways that debt can negatively affect your financial future and how to overcome personal debt.
- Watch Video 2.5
- As you watch the video, record the missing words from page 87 of the textbook as they pop up on the left side of the video screen by filling in this form. (pages 87) .
- Discussion Questions:
- Why are teens such a huge target for credit card companies?
- Studies show that people spend 12-18% more when using credit cards. Why is that?
- Make a copy of this Google Document, rename it Car Comparison Pricing-(Your Initials), and place it in your Chapter 4 folder.
- Shop around at local car lots and/or online ads to find a great car that you’d like to buy. Look for something two to three years old, and be reasonable with your expectations—you don’t need a Porsche! Write the cost of the car you find in the blank marked “goal” at the top of the used car log.
- Then, figure out how much you need to save per month for the next 20 months to reach that goal.
- Since you need something to drive between now and then, find two other cars that you could buy in the meantime. Start with a car for around $1,500. Then, find something in the mid-range between that car and the one you’re ultimately working toward. Assume that you would buy this second car after about 10 months of saving. Fill in the required information for all three of these cars on the used car log. Remember that the money used to buy the first two cars is not “lost.” You will sell the current car before buying a newer one, so you will apply the proceeds from that sale toward the purchase of the next car. For the purposes of this activity—and because you will have owned the first two cars for less than a year before selling them—you can assume that you will sell them for the amount that you paid for them.
- To find the current Retail Value of your car, use the Kelley Blue Book website to determine the value.
- In your Personal Finance Journal-C4 file in your Chapter 4 folder, complete the next row in the table by answering the question listed.