Show:
Cars
Homes
Retirement
Credit Scores
100

What is the main advantage of leasing a car?

Lower monthly payments and the ability to drive a new car every few years.

100

What is the primary benefit of renting a home?


Flexibility in terms and less responsibility for maintenance.

100

What is a 401(k)?


  •  An employer-sponsored retirement savings plan with pre-tax contributions.
100

What is a credit score and its range?


A three-digit number (300-850) that measures creditworthiness.

200

What is a major disadvantage of financing a car?

Higher monthly payments and responsibility for repairs.

200

How do mortgage payments differ from rent payments?


Mortgage payments build equity, while rent payments do not.

200

How does compound interest benefit retirement savings?


    •  It allows money to grow exponentially over time as interest earns interest.

200

What factors contribute to a credit score, and what is the most significant?


    • 35% payment history, 30% amounts owed, etc., with payment history being the most significant.

300

What is the total cost of leasing a car that costs $25,000 over five years at $300 per month?


$18,000.

300

What is the cost comparison for renting versus buying a $200,000 home?

Renting costs $180,000 over 10 years with $0 equity, while buying costs $168,000 with approximately $60,000 in equity.

300

What is the difference between a Traditional IRA and a Roth IRA?


Traditional IRA contributions are tax-deferred, while Roth IRA contributions are made with after-tax dollars.

300

Why might two people with the same income receive different loan offers?

Differences in their credit scores and credit histories

400

What factors should you consider when deciding between leasing and financing a car?

Monthly budget, driving needs, maintenance ability, long-term plans, and credit situation

400

What are some additional costs associated with buying a home?

Property taxes, insurance, maintenance, and HOA fees.

400

What is the impact of starting retirement savings at age 20 versus age 35?

Starting at 20 can yield significantly more due to compound growth over time.

400

What are some common mistakes people make regarding their credit scores?

Missing payments, maxing out cards, and not monitoring their credit reports

500

In the case study, what would you advise Alex regarding leasing versus financing based on his financial situation?


  • Discuss factors like his income, savings, and budget before making a choice.
500

If you were the Rivera family, what would you consider before deciding to rent or buy?


  • Factors like income stability, potential need to move, and housing market conditions.
500

What are some common obstacles keeping people from saving for retirement?


    • Student loans, low starting salary, living expenses, and immediate financial needs.
500

What is one habit you can start now to build good credit?


Pay bills on time or keep balances low on credit cards.