Why Ownership Matters
Owning something instead of renting it can build this over time.
Wealth
Name one upfront cost of buying a car.
down payment / taxes / registration
The first major contribution toward your home equity when you buy a house.
down payment
Renting a house or apartment usually requires a security deposit and this
first month’s rent
An asset is something you own that has this.
value
One key benefit of owning a car is it gives you __________ & reliability
Freedom
Besides the car payment, this monthly cost is required by law for most drivers.
insurance
Homes are an example of an asset that can do this over time
appreciate (increase in value)
One advantage of renting is flexibility and the ability to do this easily
move (without long-term commitment)
A liability is something you owe. Assets – Liabilities = __________
net worth
Name one hidden cost of owning a home.
property taxes / repairs / utilities / insurance
A car is an example of an asset that usually does this over time.
depreciate (lose value)
List one step you should take before buying a house
save for a down payment / build good credit / get pre-approved for a mortgage / plan for extra costs
One disadvantage of renting is that your payments don’t build this.
equity
Name one example of an appreciating asset
a home / stock / investment?
Unlike renting, owning a home can help you pass down this to your family
generational wealth
Name two hidden costs of car ownership.
gas, maintenance, unexpected repairs, or insurance increases
If you subtract what you owe from what you own, you get this measure of financial health
A disadvantage of owning a home is that you’re responsible for all __________ and __________
repairs and maintenance
True or False: Cars usually appreciate in value over time.
false
Monthly rent payments go to the landlord. Monthly mortgage payments build this.
equity
One of the first things you should check before financing a car
your credit score
Name two hidden costs of homeownership
utilities, repairs, property taxes, HOA fees, or insurance
Monthly mortgage payments can be similar to rent, but the difference is they contribute to this
your assets / ownership / wealth-building
Building home equity is important because it increases your control, borrowing power, and potential __________
profit