Day 30 - Sibley-Ocheyedan Business Education

Identify the costs of using various types of credit.
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.
Describe the elements of a credit score.
Understand how to obtain a credit report.
Explain how a credit score affects creditworthiness and the cost of credit.
Explain the factors that affect a credit score.
Analyze a credit report, indicate the time that certain negative data can be retained, and describe how to dispute inaccurate entries.
Identify organizations that maintain consumer credit records.
Summarize major consumer credit laws.
Develop a plan for protecting personal information.

Zach, a college freshman, recently received his first credit card, which he signed up for during orientation. He promised himself that he would use it only for emergencies. It is now the middle of December and Zach has to stop working for a couple weeks in order to finish some semester projects, study for and take his finals, and then go home for the holiday break. Since he will not get a paycheck again until the next term in January, he had to use his credit card for the following “emergencies”:
- Gas for the drive back home $55
- Food (snacks for studying) $45
- Christmas gifts for family $225
- Books for next semester’s classes $585
Now, what will happen if Zach only makes the minimum payments on this one credit card? Assuming he charges nothing else and makes every minimum payment on time (two BIG assumptions), it will take him 154 months to pay for these “emergencies.”
Make a copy of this Making the Minimum document, rename it to Making the Minimum-(Your Initials), and move it into your Chapter 4 folder.
Complete the assigned task as directed in the assignment. Use the chart (Minimum Payment Schedule) in the document to answer the questions.

Select either the “Playing Catch Up“ or “Stop Being Normal Americans“ call and listen to an Ask Dave radio call.
Make a copy of this Google Document, rename it LFPP-(Your Initials), and move it into your Chapter 4 folder.
Write a brief reflection about the call in paragraph form. Summarize the caller’s situation, including financial information needed to make a decision, followed by the advice that Dave gave the caller. Also be able to provide answers to the following in your response:
- What is their opinion about the caller’s situation?
- What was their initial reaction to the situation?
- What did they think of Dave’s advice?
- Does it relate to anything they have learned in class? Answers will vary.