Wednesday, April 6, 2016

Day 48: Intro to Credit Myths

Bellwork:
  • Budget Challenge
  • EverFi

Intro to Debt:
  • Watch Video 2.1 "Dubunking the Credit Myths"
    • take notes as you watch (pretend you're the teacher)
      • Myth #1: loaning money helps out family and friends
        • Do not lend money to family or friends
          • it ruins/changes the relationship
          • creates a master / servant relationship
      • Myth #2: cosigning loan helps out family and friends
        • Do not cosign loans
          • you become responsible for the debt
          • if friend was worthy of credit, they wouldn't need a cosigner
          • you can give them money,  but don't expect it back
            • it's a gift
      • Myth #3: Cash advance, title loans, payday loans, rent to own, title pawning are services to help poor people get ahead
        • Do not use these "services"
          • they charge outrageous interest rates to desperate people
            • hard to pay back on time, in full
      • Do what rich people do if you want to be rich
        • they don't use these services
      • Behave like rich people
        • Broke is a temporary financial position
          • you might make some mistakes, but they can be fixed
            • try to minimize the damage caused by your mistakes
        • Poor is a state of mind that keeps you poor
      • Myth #4: Lottery will make me rich
        • Do not play the lottery
          • its a tax on the poor and the financially illiterate
            • the odds are not in your favor
            • big lottery winners end up broke anyway

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