Living on Your Own
The average amount needed for housing, food, clothes, and other goods and services
Cost of living
Appreciation means the value of a home you buy will continue to ________ over time.
Go up
_______ means you pay someone else each month for a place to live.
Renting
True or False: It is impossible to get a mortgage without a credit score.
False
What's the only food that can never go bad?
Honey
A fixed interest rate means your payment and interest rate won't ____________.
Change over time
The difference between what a house is worth and what is still owed on it
Equity
Rent should be no more than this percentage of your monthly take-home pay.
25%
True or False: Equity is the difference between what you still owe on your home and what it is worth.
True
What color are Mickey Mouse's shoes?
Yellow
When someone spends so much of their income on the costs of homeownership that they struggle to reach other financial goals
House Poor
The total amount still owed on a house; the amount borrowed that has to be paid back
Mortgage Principle
Things such as pools, fitness centers, and other perks that are nice, but usually mean higher rent prices
Amenities
What percent of the cost of the house you want to buy do you need to have in preparation of the down payment?
10-20%
How many dots appear on a pair of dice?
42
What are some good questions you could ask an adult to help you prepare to be financially independent someday?
When they pay bills, how they budget, which bills vary month to month vs. being the same, which ones take up the most of their monthly income, etc.
What does the A stand for in the home loan option referred to as in ARM?
Adjustable
(Adjustable Rate Mortgage)
What are some ways that someone can save money on their rent?
Look at different locations, research amenities, find a roommate, conserve utilities
Why is a 15-year fixed-rate mortgage better than a 30-year?
With a 30-year mortgage, you end up paying almost twice as much for your house over time because of interest. The fixed rate means your interest rates won't fluctuate over time.
The 2002 movie "8 Mile" is a semi-biographical story of what rapper?
Eminem
What are some of the costs of living on your own?
Security deposit, bedding, groceries, furniture, renter's insurance, etc.
Give two examples of advantages and disadvantages of renting and owning a home.
Renting: advantage- moving is easier, landlord fixes things; disadvantages- less renovations, rent may go up after a year.
Owning: advantage- paid-off increases net worth, renovate; disadvantages- moving is hard, maintenance
Explain how renting or buying a home is connected with someone's ability to be generous.
When someone chooses to buy a home before they're financially ready, they can't give as generously. That's why it's important to stick to a good budget and make sure your other financial goals aren't suffering because you jumped into renting/buying before you are ready.
Why is it important to do the Five Foundations in order?
Each step has a purpose. Emergency fund can allow you to make larger purchases when needed. Not having debt (like car or student loans) can help you build wealth quicker. and then you can be more generous.
List the titles of all 5 of the Pirates of the Caribbean movies.
The Curse of the Black Pearl, Dead Man's Chest, At World's End, On Stranger Tides, Dead Men Tell No Tales