History of Credit
What is the period of time called when mass production became available?
Industrialization/ Industrial Revolution
This class can _________ your _________
change;life
The goal is to avoid ___________.
debt
Before you can reach a destination, you need to figure out ________________________.
Where you are now
Whose decisions shape your future? Starting when?
Yours; NOW!
When did credit become a thing in America?
What year did the stock market crash?
1920s/1930s
1929
How you manage your money
A good way to avoid debt is to live on _________________________________.
less than you make.
Net worth is your "current location". How do you calculate net worth?
Assets- Liabilities
What are the 5 foundations?
Goals that can help you achieve financial freedom.
Credit leads to a person living _______________________________?
Personal Finance is _________% ______________
and ________% ________________
20% head knowledge; 80% behavior
Is money a tool or does it create stress?
Both! Your viewpoint is shaped by your experiences.
A short term goal is _____________
A medium term goal is _________________
A long term goal is _____________
2-5 years
5+ years
Why is the goal to give?
We will not be on Earth forever and we cannot take our money with us. WE SHOULD WANT TO help those around us so that our work is not for nothing.
What does SLMA stand for? What is it?
Student Loan Marketing Association
Government gave loans to college students
What is a consumer? Who is a consumer?
someone who buys products/services; anyone who does not produce themselves (farmers)
If you are married, who should handle finances? Why?
Both people should work together. They are both contributing and should both have a say. Also, they both need to understand how things work in case (God forbid) something happens to one of them.
What is a positive net worth? What is a negative net worth?
Positive: when assets > liabilities
Negative: when liabilities > assets
Is it possible to pay for college in cash? Can you think of 2 ways to lower the cost of college?
Scholarships, grants, work-study, going to a college in state
Explain the history of credit and how it has become what it is today.
Credit was illegal and the only option was loan sharks, who took advantage of struggling people. The Industrial Revolution began the change as people could now purchase more things (factories).
Then, when the stock market crashed, more people started using it as banks started giving loans as well. Finally, the government started giving loans to college students (SLMA) so people stopped being afraid of loans.
Is there any good debt? What is the "best" debt? Why?
NO!
The best out of the bad is a home mortgage because houses are appreciating assets (gain value over time).
Is it better to be a saver or a spender? Give 2 pros and cons for each.
What does knowing do?
Neither is better than the other.
Savers:
Pros- plan ahead, save, pay bills easily
Cons- too strict, miss out on experiences, guilt when spending
Savers:
Pros- experiences, relationships, fun
Cons- don't plan ahead, struggle to save
Knowing helps you make a plan that will work for YOU
What are 7 things that a goal needs to be?
Specific
Measurable
Attainable
Relevant
Time- sensitive
Yours/ Written
What are the 5 foundations in order?
1. Save a $500 emergency fund
2. Get out and stay out of debt
3. Pay cash for car
4. Pay cash for college
5. Build wealth and give