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Biblioteka

4.01 Intro to Credit

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Posljednje aĹľuriranje 9 months ago
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Learning Objectives

Students will be able to:

  • Identify the major types of credit and their characteristics

  • Understand the three basic components of lines of credit: principal, interest rate, and term

  • Define net worth and how it is calculated

National Standards for Personal Financial Education

 Managing Credit

  • 1b: Compare the cost of borrowing $1,000 by means of different consumer credit options

  • 2a: Give examples of unsecured and secured loans

Warm-Up/Intro
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Pitanje 1
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Learn It
Untitled Section 4
Learn It
Exit Ticket
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Learning Objectives

Students will be able to:

  • Identify the major types of credit and their characteristics

  • Understand the three basic components of lines of credit: principal, interest rate, and term

  • Define net worth and how it is calculated

National Standards for Personal Financial Education

 Managing Credit

  • 1b: Compare the cost of borrowing $1,000 by means of different consumer credit options

  • 2a: Give examples of unsecured and secured loans

EDPUZZLE: Loan Basics đź“·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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Pitanje 2
2.

The details of any loan will include the following 3 components:

  1. The principal, the interest rate, and the loan term

  2. The money you pay, the money the lender pays, and the principal

  3. The mortgage, the auto loan, and the small business loan

  4. The loan amount, the credit card payment, and the statement

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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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Pitanje 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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Pitanje 7
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Pitanje 8
8.

Which word represents the total cost of the item you’re purchasing on credit minus any down payment you make upfront?

Pitanje 9
9.

Each of the following represents an installment loan EXCEPT…

Pitanje 10
10.

Which of these actions would most likely decrease a person’s net worth for at least the next 6 months?

Pitanje 3
3.

Why are secured loans considered less risky to the lender?

  1. Lenders are allowed to conduct background checks for secured loans

  2. Lenders can take valuable collateral if you fail to repay your loan

  3. Lenders give secured loans all the time, so they're more comfortable doing them

  4. Lenders can check your credit score before giving a secured loan, which they can't do for an unsecured loan

Pitanje 4
4.

Having a good credit score, making a larger down payment, and finding a cosigner with good credit are all ways to…

Pitanje 5
5.

Each of these statements describes a variable rate loan EXCEPT...