Please do now Take personal finance self-survey

Please do now: • Take personal finance self-survey (#12). Answer as best you can! • Hand in your HW—”Budgeting basics, ” completed on both sides (#11). • Take out loose leaf for lots of notetaking today! Label it #13 and title it “The Truth & Lowdown about Credit. ”

The Truth & Lowdown about Credit Brought to you by Abbe Joseph, who wants you to be knowledgeable and careful with your money!

Top things to know about credit • • • Americans are loaded with credit-card debt. Why is some debt actually good? When is debt bad? How can I get a handle on my spending? What kinds of debts should I pay off first? What is the “minimum trap” on credit card dues?

Top things to know about credit, continued • I need to keep my investing goals (and my home!), so I need to watch where I borrow! • Why should I ideally have a “cash cushion” of three to six months? (Remember occasional expenses!) • How could I find legitimate help managing my debt if I get to that point?

What is a credit report? • What is the difference between a credit report and credit scores? • How do my credit scores affect interest rates on credit cards, loans, and a home mortgage?

Credit in the Teen Years • Is it a good idea to have a credit card when I go to college? • How can annual interest, compounded over the years, seriously hurt my savings potential? • What are the dangers of lay-away plans (borrowing “interest-free” and then paying off the balance within a set, small time period)?

Investing in the Teen Years • What are some rewards of self-control? • Investing is the flip side of credit: I can be the one who collects interest and extends (not ruins) my credit! • What is a savings bond? • What is a certificate of deposit (CD)? • Why should I wait to play around in the stock market? When can I start legally trade stocks on my own? • In the meantime, I can play stock-investing games on the Internet now.

How can I beat bank fees? • Buy cheap checks; you don’t have to even buy them from your bank. • What is overdraft protection? • I should get cash back (responsibly) if I use a debit card in a store. • I need to find out what “free” means for the type of account I have. • What does it mean to “link my accounts”?

How can I take an interest in interest? • Why should I calculate monthly fees over a year versus interest rates? • Why should I consider a CD? How is a CD safe if interest rates do down? • Why should I keep my money in the CD until it matures?