LifeDecisions🥶
Expenses that are essential for you to live and work
Needs
If you can't afford it, then...?
DON'T BUY IT
The ability to borrow money or access goods or services with the understanding that you'll pay later
CREDIT
Credit Card Utilization should stay under this percentile.
30%
Money that you owe to someone.
DEBT
Expenses that help you live more comfortably
Wants
Worst thing to do in a financial emergency
Get a Payday Loan
A mathematical formula – called a scoring model – based on information in your credit report
CREDIT SCORE / FICO SCORE
The maximum amount you can utilize from your credit account, such as a credit card.
CREDIT LIMIT
Borrowed money that isn’t backed by collateral
UNSECURED DEBT
Making a choice to have our desires fulfilled immediately without delay...
INSTANT GRATIFICATION
How much money do companies spend on marketing?
$354 Billion
The highest impacting factor that makes up around 35% of your credit score...
PAYMENT HISTORY
A written record created by a financial institution, typically once a month, that lists all credit card transactions for an account, including purchases, payments, fees, and finance charges.
MONTHLY STATEMENT
A loan that is backed by a valuable item, called collateral.
SECURED DEBT
Making a choice that limits us from getting something now for the pleasure of having something bigger or better later...
DELAYED GRATIFICATION
Available for people who need to make a purchase but can’t afford to pay the entire cost - found in many stores
BUY NOW PAY LATER
Name the three types of credit with examples.
Revolving - Credit Cards
Installment - Loans (Home, Auto, Business)
Service - Service Bill (Electricity, Gas, Water, Phone)
Some credit cards will charge you an extra interest rate for when you are late on your payments, especially if you’re 60+ days late...
Penalty APR
What is the average amount of debt for an American?
About $105,056
What are the 3 steps to making a vision board?
1. Imagine yourself in the future and what that looks like
2. Be creative!
3. Create your vision board!
Name 3 types of options to turn to for extra money
1. Payday Loans
2. Point of Sale Installment Loans
3. Peer-to-Peer loans
4.PAL Loans
5.Cash Advance
Name the three credit agencies
Experian, Equifax, Transunion
Someone who pays off their credit card completely at the end of the month without any interest charged or late fees, CREDIT CARD companies HATE THIS PERSON!!!
DEADBEAT BORROWER
Name 4 factors impacting debt for households
1. Student Loans
2. Unbanked/Underbanked
3. Lack of Credit
4. Lack of knowledge and Information