Welcome Homeroom! Find a seat and settle in Where are you going for Knight Time???? ITS DEAR DAY !!!! GRAB A NOVEL! Welcome C&E Students! Grab your handouts and settle in to your new seat (posted by calendar) Roll Call Question: Would you rather always be able to tell when someone is lying or always get away with lying? Bell Work: Prepare for your quiz!!!! 5.1 Intro to Econ 5.2 Budgeting SHHH! Quiz in Progress! All you need is a pen/pencil Have a Question? Ask a question! When finished turn in to your class tray Keep working on your College & Career Readiness handout from yesterday. Booklets, articles and questions are in the box next to the class tray. Warm Up What is the purpose of a bank? (There are several!) Keep money safe Provide interest on deposits Lending money to firms, customers and homebuyers Offering financial advice and services 5.3 Credit & Debit Compare and contrast debit and credit I. Checking v. Savings A. Checking Account : A bank account where you can easily transfer and use your money 1. Debit Card : $ that can be easily transferred in any transaction from your checking account (online, store, ATM machine) 2. Check : written statement asking for $ to be taken out of checking account Checks 101 3. Credits and Debits to Your Account a. (+) Credits : $ you are adding to your account (deposits, paycheck, interest) b. (-) Debits : $ you are removing from your account (writing a check, using your debit card, withdrawing $ from an ATM) Lets Write a Check Together! You owe Mr. Switzer $50.36 You bought an AK Sweatshirt from him We are paying him today 04/15/2015 B. Savings Account : A bank account where you store money and can earn money 1. Interest : earning extra money for lending it out Lets Make a Deposit! You just had a birthday and received a paycheck. Now you need to make multiple deposits into your checking account: $ $25.00 $ Check Lets Balance our Checkbooks! YOUR TURN! Independently or with your neighbor complete the Keeping a Checking Account handout. Closure: Write your Friend a Check! Use the blank check to pay back your friend for the good/service they provided for you. Once you receive a check from another person, double-check it to make sure it is correct then turn it in to Ms. Peach Welcome C&E Students! Grab your handout and settle in Roll Call Question: Hard or Soft taco shells? Bell Work: Give an example of credit & a debit to your checking account. What is interest in regard to a savings account? Reminders Test Next Wednesday College & Career Readiness Handout/Letter/Questions due Tomorrow Unit Opportunity: Comparing Debit and Credit https://www.youtube.com/watch?v=c0m So6PN5yw https://www.youtube.com/watch?v=c0m So6PN5yw Watch this video and provide Ms. Peach with a 1 page reflection (TYPED) of when and why we would use credit cards sometimes and debit cards other times Due Next Thursday (04/23/2015) Times New Roman, 12 pt Font, double spaced, 1 margins Story Time! Lets read some more about credit After we finish reading complete the questions on the back II. Credit v. Debit A. Credit : spending $ that you dont have (borrowing) 1. Interest : Paying extra $ for borrowing a. Annual Percentage Rate (APR) : shows you how much your borrowing will cost you over a year. (1). This can help you decide which credit card is best for you B. Types of Credit 1. Credit Card : can borrow a certain amount of $ to spend 2. Student Loan 3. Car Loan 4. Mortgage (Home Loan) a. Foreclosure : loosing your home because you do not pay your mortgage Is Establishing Credit Necessary? YES!!! In the 21 st century you need to establish credit if you want to do the following things Buy a Home Buy a Car Receive a good interest rate on a loan Having a good credit score shows lenders that you are reliable and will pay them back C. Est. Good Credit 1. Credit Score : a number assigned to a person that lets lenders know your ability to pay back a loan 2. To est. good credit you must start buying things using credit and pay that money back in a timely manner. Helpful tips Have bills in your name Always pay bills on time or earlier and try to pay more than the minimum payment Keep a steady job Dont move often Keep your debt low Use your cards responsibly Stick to a budget 3. Credit Line : how much money is available for borrowing 4. Financing : borrowing money to pay for an item you will pay off over time 5. Debt : money that you owe someone (person/business/organization) else Debit Card Pros You dont to carry cash/checkbook Its safe b/c only you know your PIN You are using the $ you actually have which can help with budgeting Debit Card Cons You must have enough $ in your account to make purchases You have to remember your PIN to access cash If you dont keep track of your purchases, you could overdraw and have to pay a fine Credit Card Pros You can buy things before you have saved the entire purchase price It is a way to pay for emergency expenses Using it wisely and paying off on time can help you improve your credit score Credit Card Cons You may have to pay a yearly fee for the card You pay interest on the unpaid monthly balance. B/c of interest, you may pay more for items than if you paid cash Comparing Credit & Debit Card TypeProsCons Debit Card You dont have to carry cash/checkbook Its safe b/c only you know your PIN You are using the $ you actually have which can help with budgeting You must have enough $ in your account to make purchases You have to remember your PIN to access cash If you dont keep track of your purchases, you could overdraw and have to pay a fine Card TypeProsCons Credit Card You can buy things before you have saved the entire purchase price It is a way to pay for emergency expenses Using it wisely and paying off on time can help you improve your credit score You may have to pay a yearly fee for the card You pay interest on the unpaid monthly balance. This means paying more for items than they really cost!