Transcript Lesson 12 Visuals - Learning, Earning, and Investing
L ESSON 12 C
REDIT
: Y
OUR OR
Y
OUR
W B
EST ORST
E F
RIEND NEMY
?
L EARNING , E ARNING , AND I NVESTING FOR A N EW G ENERATION © C OUNCIL FOR E CONOMIC E DUCATION , N EW Y ORK , NY
S LIDE 12.1
L ESSON 12 – C REDIT : Y OUR B EST F RIEND OR Y OUR W ORST E NEMY ?
Credit Definitions
• • Credit The ability to obtain goods and services before paying for them, based on a promise to pay later.
Individuals who use credit are borrowing money.
• • • Revolving credit Credit that is available up to a limit and automatically renewed as debts are paid off or paid down.
People who use revolving credit often make partial payments on their unpaid balances at regular intervals.
Credit-card accounts offer revolving credit to credit-card users.
L EARNING , E ARNING , AND I NVESTING FOR A N EW G ENERATION © C OUNCIL FOR E CONOMIC E DUCATION , N EW Y ORK , NY
S LIDE 12.2
L ESSON 12 – C REDIT : Y OUR B EST F RIEND OR Y OUR W ORST E NEMY ?
Answers to Worksheet for Justin Jabowski
January Purchases Minus minimum payment Unpaid balance $235.00
11.75
223.25
February Purchases Previous balance Plus finance charge Total owed Minus minimum payment Unpaid balance 157.00
223.25
3.35
383.60
19.18
364.42
L EARNING , E ARNING , AND I NVESTING FOR A N EW G ENERATION © C OUNCIL FOR E CONOMIC E DUCATION , N EW Y ORK , NY
S LIDE 12.3
L ESSON 12 – C REDIT : Y OUR B EST F RIEND OR Y OUR W ORST E NEMY ?
Answers to Worksheet for Justin Jabowski
March Purchases Previous balance Plus finance charge Total owed Minus minimum payment Unpaid balance 270.00
364.42
5.47
639.89
31.99
607.90
April Purchases Previous balance Plus finance charge Total owed Minus minimum payment Unpaid balance 490.00
607.90
9.12
1,107.02
55.35
1,051.97
L EARNING , E ARNING , AND I NVESTING FOR A N EW G ENERATION © C OUNCIL FOR E CONOMIC E DUCATION , N EW Y ORK , NY