EverFi

Mr. Haworth is absent today. Be on your best behavior. Whatever your sub says is what you should do. They are in charge today. You should work on the following.

EverFi:

You should have completed:

• Consumer Protection
• Investing
• Savings

• Banking
• Payment Types
• Credit Scores

Continue working on:

• Higher Education
• Renting v. Owning

Retake any EverFi Quizzes that you did not get 100% on.

Identity Theft Presentation

Day 63: Catch-up / Get-ahead / Study Day

Test prep:

• Debt:: It is something that no one should want to have, it is normal and normal is broke.

• We should never have debt .
• Debt = Slavery
• Credit cards: Use it only if you can afford what you are buying, pay off in-full each month, and get cash back
• We lie to ourselves about the difference between a want and a need.

• Borrowing money

• Businesses- Borrow money to make more and return it into the business
• People- Borrow money then spend it and have little to show for it (except debt payments)
• Loaning money to someone does not help
• Destroy friendships
• Make you the master and the borrower is the servant.
• “Do not loan money to family, give it to them as a gift and don’t expect it back”

• “If you do poor stuff you will be poor. If you do rich stuff you will be rich”
• 
  

  be prepared for the financial emergencies that 8/10 families face in any given 10-year period

• Playing the lottery is dumb. You should do something better with that money.

• Debt:

• Debt is Normal (most people are in debt, 70% of families live paycheck to paycheck)
• Debt is Dumb (extra costs associated with debt)
• Normal is Dumb
• Types of Debt:

• Home Mortgage: average of $147,000
• Student Loan: average is 29,000
• Car Loan: average is 27,000
• Credit Card Debt: average off those who use debt is $16,000
• Ease of getting into debt:

• 6 billion credit card offers each year
• low introductory rate offer
• active marketing on college campuses (free t-shirts, pizza, and pop if you sign up)
• hook you while you’re young
• Cost of Debt:

• interest
• stress and conflict
• 52% marriage end in divorce
• 90 % of divorces in first 7 years of marriage are money problems
• prevents you from spending $ on what you want later

• Car Payments
• 
  
  • New cars are dumb
  • lose 20% in first day
  • lose 70% in first 4 years
  • Leases are most profitable for dealers $1,300 (worst deal for consumer)
  • Financing makes $700 for dealer
  • Buy with cash dealer only makes $82 on average
• Always going to have a car payment UNLESS:
• You save 450 every month for 10 months then buy a used car and keep saving
• Learn Delayed Gratification (resisting award now for one later)
• short-term sacrifice for long-term benefits
• 
  

  • Drive for free
  • save monthly car payment for 1 year (+$5,000)
  • buy used car with cash (-$5,000)
  • keep saving for another year (+$5,000)
  • upgrade to better used car (trade-in old car (-$4,000-$5,000=-$9,000)
  • keep saving and invest for 5 more years (+$30,000)
  • upgrade to used car that is half of your car fund(-$15,000)
  • wait 7 to 8 more years for fund to double to $30,000
  • buy another $15,000 used car
  • Drive "free" for life
  • put additional $5,000 per year in retirement account
• Myths:
• You need to buy a new house (might cost more than renting)
• You need to buy a new car (loses 20% of value when you buy it)
• You can do whatever you want in college and pay for it later (hard to get out of debt, even with more money)
• You have to build credit (can pay cash for house / car)
• Loaning money is helping people (makes them your customer, not friend)
• You can get rich playing the lottery (bad odds, many winners go broke)
• You can't rent an apartment or buy a home without a credit score
• You need a credit card to shop online or to rent a car
• You need to take out student loans to go to college

• 15 vs. 30-year mortgage
• 15 has higher monthly payments
• 15 has lower interest rate
• 30 ends up paying more total interest
• I = P x R x T
• appears like you can get more for less with a 30, but in the long-run you end up paying a lot more and being saddled with debt for a longer period of time.
• example:
• $225,000 principle at 6% rate for 30 years
• $1,400 per month, $460,000 total
• $225,000 principle at 5% rate for 15 years
• $1,800 per month, $300,000 total
• What is the major differences and similarities between a debit card and a credit card?
• you can go into debt with a credit card
• if you run your debit card as credit you can get the same fraud protection
• research shows we spend 12-18% more with credit cards than with cash, debit cards are in the middle
• it hurts to spend cash
• rewards
• credit cards may offer cash-back bonuses or air miles or points
• most airline miles earned are never redeemed
• points can only be spent a certain way
• some banks offer bonuses if you use your debit card a certain number of times each month
• Who is the #1 target for credit card companies and why?
• 18 to 22-year olds
• if they get you early they’re counting on you maintaining brand loyalty
• they even target younger kids with kiddie branding
• Barbie has a Mastercard
• The game of Life accepts Visa
• Of those who dropout, why do most college students drop out of school?
• money problems caused by credit card debt
• What is the #1 key to building wealth?
• stay out of debt
• 80% behavior, 20% knowledge
• What do you get if you have no debt and no debt payments?
• more money, more choices, more financial freedom

• 
  
• You don't need to build a credit score
• FICO: Fair Isaac Corporation (Measures how well you handle debt)
• Basically a credit score
• 35% debt history
• 30% debt level
• 15% length
• 10% type of debt
• 10% new debt
• How to buy a house without a credit score
• Work steady job
• save money
• get a down payment
• budget income to determine what you can really afford
• request manual underwriting
• How to buy a car
• Pay with cash
• Credit Report
• Review once a year
• it measures every time you borrowed money and paid for it
• Creates a credit score: interaction with debt
• How to increase credit score
• go into debt
• make debt payments
• have higher credit limit
• have different types of debt
• have it for a long time
• 3 C’s of credit
• Character (history)
• Capacity (how much more you can handle)
• Capital (How much you have)
• Credit Bureau: Creates credit report, issues credit score
• 3 types of keepers of the credit score
• Transunion
• Experian
• Equifax

Day 62: Review

Day 61: Quiz

After Quiz work on EverFi:

You should have completed:

• Consumer Protection
• Investing
• Savings

• Banking

Continue working on:

• Payment Types
• Credit Scores
• Higher Education
• Renting v. Owning

Day 60: Review

Day 56: Review Test

Go over the test from Friday

Day 55: EverFi Catch-up / Get-ahead Day

Mr. Haworth is absent today. Be on your best behavior. Whatever your sub says is what you should do. They are in charge today. You should work on the following.

Budget Challenge:

• Check for bills, surveys, quizzes

EverFi:

You should have completed:

• Consumer Protection
• Investing
• Savings

Continue working on:

• Banking
• Payment Types
• Credit Scores
• Higher Education
• Renting v. Owning

Day 53: Quiz Review

Debt:

• Debt is Normal
• Debt is Dumb
• Normal is Dumb

Types of Debt:

• Home average of $147,000
• Student average is 29,000
• Car average is 27,000
• Credit Card average off those who use debt is $16,000

Ease of getting into debt:

• 6 billion credit card offers each year
• low introductory rate offer

Cost of Debt:

• interest
• stress and conflict
• 52% marriage end in divorce
• 90 % of divorces are money problems
• prevents you from spending $ on what you want later

Cars:

• New cars are dumb
• lose 20% in first day
• lose 70% in first 4 years
• Leases are most profitable for dealers $1,300 (worst deal for consumer)
• Financing makes $700
• Buy with cash $82
• Drive for free
• save monthly car payment for 1 year (+$5,000)
• buy used car with cash (-$5,000)
• keep saving for another year (+$5,000)
• upgrade to better used car (trade-in old car (-$4,000-$5,000=-$9,000)
• keep saving and invest for 5 more years (+$30,000)
• upgrade to used car that is half of your car fund(-$15,000)
• wait 7 to 8 more years for fund to double to $30,000
• buy another $15,000 used car
• Drive "free" for life
• put additional $5,000 per year in retirement account

Myths:

• you need credit history
• just show landlord / employer your bank statement to show you're responsible
• you need a house
• homeownership comes with lots of extra costs
• mortgage interest
• homeowner insurance
• private mortgage insurance
• property taxes
• maintenance (time and money)
• I'll pay for it later when I have more money
• what if you don't have more money
• need a new car
• see dumb car info above
• loaning money to family and friends is helping them
• give it to them, instead of loaning it
• get rich playing lottery
• ha ha.

Day 50: EverFi Friday

You should have completed:

• Consumer Protection
• Investing

Continue working on :

• Saving
• Banking
  

Start:

• Payment Tyes

Day 46 - EverFi Friday

You should have completed:

• Consumer Protection
• Investing

Continue working on :

• Saving
• Banking/Budgeting

Day 41 - UPS Day

Go to Library

Day 18 - EverFi - Investing

Day 17 Investing

• What is compounding?

Day 54 - Intro to Budgeting

1. Budgeting Game
• Can you make it through the month?  Play the game to find out.  Who can end the month with the most amount of money (and still be a decent human being)?
• Complete this reflection
2. Why You Need a Budget
3. Income vs. Expenses
• Worksheet