Reflect on a time where you borrowed from or lent money to someone.
Who did the loan involve?_______
What was the agreement for repayment?_______
Did the agreement work out the way you anticipated?_______
Were both people happy at the end?_______
EDPUZZLE: Loan Basics📷8 min
Perhaps you’ve casually lent or borrowed money from a friend before. But more formal loan arrangements from a financial institution come with far more terms you must understand in order to get a fair deal. Watch this video and follow your teacher's directions to answer the questions either in your student activity packet or within the EdPuzzle itself.
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INFOGRAPHIC: What’s My Net Worth? 📷4 min
Many people think that being wealthy means you have a lot of stuff; however, it turns out that what you own is only part of the equation for determining your net worth. Review this infographic to see how wealth or net worth (often used as synonyms) is calculated. Then answer the questions below.
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Question 6
6.
Your friends and you notice a neighbor who always has brand new clothes, shoes, and electronics. What would you need to know in order to tell if this neighbor is actually wealthy?
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Question 7
7.
There’s not one target net worth value that is universally considered to be “rich” or “wealthy.” But right now, Sanya’s net worth is $12,000. Her goal is to have a net worth of at least $100,000 before she turns 35.
Explain one way that using credit could help Sanya achieve her goal._______
Explain one way that using credit could hurt Sanya’s progress._______
Question 8
8.
Which word represents the total cost of the item you’re purchasing on credit minus any down payment you make upfront?
Question 9
9.
Each of the following represents an installment loan EXCEPT…
Question 10
10.
Which of these actions would most likely decrease a person’s net worth for at least the next 6 months?
Question 2
2.
The details of any loan will include the following 3 components:
The principal, the interest rate, and the loan term
The money you pay, the money the lender pays, and the principal
The mortgage, the auto loan, and the small business loan
The loan amount, the credit card payment, and the statement
Question 3
3.
Why are secured loans considered less risky to the lender?
Lenders are allowed to conduct background checks for secured loans
Lenders can take valuable collateral if you fail to repay your loan
Lenders give secured loans all the time, so they're more comfortable doing them
Lenders can check your credit score before giving a secured loan, which they can't do for an unsecured loan
Question 4
4.
Having a good credit score, making a larger down payment, and finding a cosigner with good credit are all ways to…
Question 5
5.
Each of these statements describes a variable rate loan EXCEPT...