Transcript Marriage and Family Life Unit 6: Making Everyday Living Decisions Objective 1: Differentiate in the benefits of owning vs.

Marriage and Family Life
Unit 6: Making Everyday Living
Decisions
Objective 1: Differentiate in the
benefits of owning vs. renting a home.
Benefits of owning a home
• Potential income tax deductions
• Equity builds in home
• Value of home may increase
• Ability to make decisions about home without
outside approval
• Fixed payment
Objective 1: Differentiate in the
benefits of owning vs. renting a home.
Benefits of renting a home
• Not responsible for major home repairs,
improvements or property taxes
• Less financial risk
• No long-term mortgage commitment
• Allows flexibility for future moves
• Easier to end a rental lease agreement
• Monthly payment may include some utilities
• Smaller initial cost to move in
Objective 2: Determine criteria to use
when selecting a place to live.
• Cost
• Availability to public transportation and/or
major expressways
• Suitability to your lifestyle
• Proximity to work/shopping/leisure activities
• Crime rate
• School district where home is located
Objective 3: Differentiate in the
advantages and disadvantages of using
credit.
Advantages
• Allows you to buy products and services when
cash is not available
• You may be able to take advantage of special
sales and bargains
• Allows use of good or service while making
payments on the item
• Provides a way of obtaining emergency funds or
making emergency purchases
Objective 3: Differentiate in the
advantages and disadvantages of using
credit.
Advantages
• Helps make purchases that are a part of a
short-term financial plan
• Establishes and helps maintain a good credit
rating
• Provides a method for returning merchandise
• Eliminates the need to carry cash
Objective 3: Differentiate in the
advantages and disadvantages of using
credit.
Disadvantages
• Encourages you to spend more than you can
afford
• May encourage impulse spending
• Requires future income to be used for past
expenses
• Credit contracts may be confusing and you may
not realize what financial commitments you have
made
• Interest on debt increases the cost of purchase
Objective 3: Differentiate in the
advantages and disadvantages of using
credit.
Disadvantages
• Encourages a need for instant gratification
• Items bought on credit can be repossessed if you
are unable to make payments
• Encourages you to only buy where credit cards
can be used
• Can increase personal stress
• Failure to pay on time will hurt your credit rating
Objective 4: Classify cards that are
used to make purchases.
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Credit card
Secured credit card
Debit card
Pre-paid card
Objective 5: Match investment options
to the correct description.
Savings
• Certificate of deposit (CD)
• Savings account
• Money market account
Objective 5: Match investment options
to the correct description.
Investing
• Annuity
• Bond
• Stocks
• Individual Retirement Account (IRA)
• Roth IRA
• Mutual fund
• 401(k)
• 403 (b)
• 529 college savings plan
Objective 6: Create a financial plan for
retirement.
Objective 7: Match health insurance
options to the correct description.
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Health Maintenance Organization (HMO)
Healthcare Savings Account (HSA)
Indemnity health insurance
Preferred Provider Organization (PPO)
Objective 8: Determine criteria to use
when selecting a car.
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Condition of vehicle
Consumer rating
Cost of repairs
Cost of vehicle
Cost of vehicle
insurance
• Depreciation
• Desired features
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Financing available
Fuel efficiency
Reliability
Safety
Planned length of
ownership
• Planned use
• Warranty
Objective 9: Plan a family vacation.
Objective 10: Determine factors to
consider when planning meals.
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Time available for meal preparation
Nutritional value of food
Money available for food
Special dietary requirements
Likes and dislikes of family members
Equipment and facilities available
Seasonal food available
Daily food requirements
Objective 11: Plan a family’s meals for
one week.