Personal Finance KCEE个人理财kcee.pptVIP

End of slides Personal Finance Benchmark 4.01 Benchmark 4.01 Demonstrate an understand that personal spending, saving, and credit decisions have significant implications for the future Competencies4.01.03 Explain the role and utilization of credit in a market economy Sample indicators: Give examples of different types of credit Explain how credit systems operate or function Indentify potential costs and benefits of using credit Lesson 14 Credit: Your Best Friend or Your Worst Enemy? Indicators for benchmark 4.01.03: Explain how credit systems operate and function Identify potential costs and benefits of using credit Terms Choice Cost and benefits Credit Debt Interest Revolving credit Lesson 14 Credit: Your Best Friend or Your Worst Enemy? Objectives: Calculate interest payments, minimum balances and the cost of credit. Develop and apply criteria for determining when the use of credit is appropriate. Before starting lesson 14 Ask students to define: Credit: Revolving credit: Contrast use of credit cards with debit cards Before starting lesson 14 Ask students to define: Credit: is the ability to obtain goods or services before paying for them, based on a promise to pay later. Thus, each time a person uses credit, he or she is borrowing money. Credit cards are merely short term loans Revolving credit: is credit that is available up to a limit and automatically renewed as debts are paid off or paid down. People who use revolving credit often make partial payments on their unpaid balances at regular intervals. (credit cards offer revolving credit) Begin Activities for lesson 14 Activity 1 and 2 5 to 10 minutes Read activity one Complete activity two Look at answers to activity two If Justin pays $55 per month how long will it take him to pay off is balance? Problems with the use of creditCost versus benefit of using credit Problems with the use of credit Key is to look at the cost of using credit versus the benefits gained Advantages In an emergency T