Week 25 by fanzhongqing


									                                  STUDENT ADVISORY ACTIVITY
                                          11TH GRADE
                                           WEEK 25

Topic: Financial Management

Goal Statement: Students will manage their money responsibly and avoid using credit cards to
obtain items they cannot afford.

Activity Statement: Students will discuss the downfalls of credit card use, advantages of saving
money, and the benefits of the debit card.

      1.       Handout, Financial Management

      1        Distribute the handout to students.
      2        Review each point, allowing students to interject their own experiences.
      3        Invite students to ask questions.
      4        If time permits, illustrate a sample math problem on the board to show how
               the interest can pile up on credit card debt.

Discussion Questions:
       1     What do you know about credit cards?
       2     Do any of you have checking or savings accounts?
       3     Can anyone explain how checking and savings accounts work?

Integrative Closing Statement: Our individual credit report, somewhat like the high school
transcript, is an important document that reflects how responsible we are with our money. Students
should spend their money wisely.
                Financial Management
Use cash!
  • Credit cards are useful for some things, but if you don’t pay the balance at the
    end of the month, you’ll be charged interest!
  • The interest adds on to your balance, so you end up paying more for the items
    you have purchased!
  • The credit card companies want you to put off paying the balance so they can
    make more money off you!
  • Keeping large balances on credit cards can hurt your chances in other areas,
    such as trying to buy a car or a house! Mortgage and loan companies do not
    want to lend money to people who are already in debt!
 What do I do if I don’t have cash?
  • If you don’t have cash now, buying on credit will put you in the negative range!
    (that is, if you buy something for $100 on credit, now you have negative $100,
    because you have to pay that money back)
  • Try putting items you want on lay-a-way and paying for them over time. The items
    will be held for you, and when you do get them, you won’t be in debt.

 Why don’t you start a savings account?
  • If you put your money in the bank, you will earn interest on it!
  • If you get a large amount of money, such as a graduation gift, you can get a CD!
    No, not a compact disc! Get a certificate of deposit! It’s like a savings account,
    except you promise to keep it in the bank for a longer period in exchange for a
    higher interest return on your money.
  • Consider getting a checking account..
   • A checking account is a convenient way to pay bills from home without minimal
     added expense.
   • Many banks offer college students a free or very low-cost checking account.
   • If you have a checking account, you can get a debit card. Debit cards work just
     like a credit card at stores, but instead the money comes out of your checking
     account. That way you can’t spend what you don’t have!

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