other investment options?
• investing = putting your money
somewhere you have a chance to make
more money.
• varying degre...
index funds
• Type of mutual fund that tracks the
entire stock exchange.
• Less risky because risk is spread
out across ma...
bonds
• What is it?
– An IOU from a company or government that
promises to pay you back what you paid +
interest after a c...
401(k) and Roth IRA
• Retirement accounts
• “Buckets” for other investments
• Tax benefits
• 401(k) = possible “free money”...
today’s take away message
• the stock market is one place you can
invest your money.
• index funds are probably the best w...
exit ticket: review quiz
1. To own stock means that…
a.) You have an ownership claim.
b.) You are entitled to some of the ...
2. A company sells stock to…
a.) Unload unprofitable assets.
b.) Raise capital.
c.) Only the executives of the company.
d.)...
3. The New York Stock Exchange…
a.) is an example of a large auction floor.
b.) is a new phenomenon.
c.) is where people go...
4. The higher the risk involved with the
investment, the _________ the likely
return.
a.) higher
b.) lower
c.) likely retu...
5. Which type of investment has the
lowest risk?
a.) Junk bonds.
b.) Stock.
c.) Bonds.
d.) Day trading.
6. Index funds are….
a.) A mutual fund made up of stock from
across the stock market.
b.) A single group of stock from the...
7. Bonds are…
a.) A loan to a government, company, or
municipality.
b.) Relatively secure investments.
c.) Repaid with int...
8. 401(k)’s and Roth IRA’s differ from
stocks and bonds in that…
a.) They are extremely risky.
b.) They provide very high ...
Consumer Credit &
Bankruptcy
Being Responsible with Credit
Cards and What Might Happen If
You Aren’t
question of the day
objective
• To understand how a credit card works
and how it can be both a useful and
dangerous tool.
what is credit?
• the loaning of money.
• when you borrow money from somebody
with the promise of paying them back
later, ...
credit scores
• your credit score is a number that
creditors look at when determining
interest rates for loans.
• it says ...
using a credit card like an
intelligent individual
• rule of thumb: the less of a balance you
carry, the better.
• why? pa...
bankruptcy: starting over?
• a legal procedure to eliminate your debt.
• destroys your credit score for many years.
• disc...
chapter 7
• commonly known as “liquidation.”
• allows filers to give up assets in exchange for
discharge of their debts.
• ...
chapter 13
• Also known as “debt adjustment.”
• Allows individuals to temporarily halt
foreclosures and collection actions...
recap
• Credit card companies want you to carry a
balance and therefore have to pay interest.
• Careful use of credit card...
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Credit And Bankruptcy

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Credit And Bankruptcy

  1. 1. other investment options? • investing = putting your money somewhere you have a chance to make more money. • varying degrees of risk. • why not just keep your cash in a shoebox under your bed?
  2. 2. index funds • Type of mutual fund that tracks the entire stock exchange. • Less risky because risk is spread out across many stocks. • Maintenance fees = low which means more money for you.
  3. 3. bonds • What is it? – An IOU from a company or government that promises to pay you back what you paid + interest after a certain amount of time. • Companies do it to raise money. • Stocks = equity, bond owners = creditors.
  4. 4. 401(k) and Roth IRA • Retirement accounts • “Buckets” for other investments • Tax benefits • 401(k) = possible “free money” if your employer matches.
  5. 5. today’s take away message • the stock market is one place you can invest your money. • index funds are probably the best way to invest in stocks. • bonds are relatively secure places to put your money. • larger the risk, larger the return.
  6. 6. exit ticket: review quiz 1. To own stock means that… a.) You have an ownership claim. b.) You are entitled to some of the company’s profits. c.) You are investing your money. d.) All of the above.
  7. 7. 2. A company sells stock to… a.) Unload unprofitable assets. b.) Raise capital. c.) Only the executives of the company. d.) Consolidate ownership among a few people.
  8. 8. 3. The New York Stock Exchange… a.) is an example of a large auction floor. b.) is a new phenomenon. c.) is where people go to open bank accounts. d.) is actually located in New Jersey.
  9. 9. 4. The higher the risk involved with the investment, the _________ the likely return. a.) higher b.) lower c.) likely return is unaffected by risk.
  10. 10. 5. Which type of investment has the lowest risk? a.) Junk bonds. b.) Stock. c.) Bonds. d.) Day trading.
  11. 11. 6. Index funds are…. a.) A mutual fund made up of stock from across the stock market. b.) A single group of stock from the same company. c.) Very risky investments. d.) Only bought by very experienced investors.
  12. 12. 7. Bonds are… a.) A loan to a government, company, or municipality. b.) Relatively secure investments. c.) Repaid with interest. d.) All of the above.
  13. 13. 8. 401(k)’s and Roth IRA’s differ from stocks and bonds in that… a.) They are extremely risky. b.) They provide very high returns. c.) Are actually just “buckets” that hold other types of investments. d.) None of the above.
  14. 14. Consumer Credit & Bankruptcy Being Responsible with Credit Cards and What Might Happen If You Aren’t
  15. 15. question of the day
  16. 16. objective • To understand how a credit card works and how it can be both a useful and dangerous tool.
  17. 17. what is credit? • the loaning of money. • when you borrow money from somebody with the promise of paying them back later, they are giving you credit.
  18. 18. credit scores • your credit score is a number that creditors look at when determining interest rates for loans. • it says how likely you are to pay back the loan. • the higher your score, the better interest rates you can get. • what criteria do you think they look at when determining your score?
  19. 19. using a credit card like an intelligent individual • rule of thumb: the less of a balance you carry, the better. • why? paying interest. • a credit card is not “free money.” • using it to buy something you can’t afford is a terrible idea.
  20. 20. bankruptcy: starting over? • a legal procedure to eliminate your debt. • destroys your credit score for many years. • discharges most debt. • chapter 7 & chapter 13.
  21. 21. chapter 7 • commonly known as “liquidation.” • allows filers to give up assets in exchange for discharge of their debts. • used by people with very little assets or income and lots of debt. • HOWEVER, won’t eliminate: student loans, alimony, child support, debts incurred through fraud, liabilities resulting from drunk driving & criminal fees.
  22. 22. chapter 13 • Also known as “debt adjustment.” • Allows individuals to temporarily halt foreclosures and collection actions while they draft and execute a plan to repay some or all of their debts over a 3 to 5 year period.
  23. 23. recap • Credit card companies want you to carry a balance and therefore have to pay interest. • Careful use of credit cards is important. • Bankruptcy is a last resort for regaining control over your debt.

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