Economics unit 5

Personal Financial Literacy Lesson 3 Personal Money Decisions Review Questions Directions: Read each main idea and answer the questions below. Refer to your textbook as you write the answers. . Funding Your Education Main Idea: Obtaining a bachelor's degree increases your earning potential and makes you less likely to be unemployed, but a college education is expensive. Financial aid. s ancial aid, student loans, scholarships and grants, work- study programs, and other methods can be used to pay for higher education. 1. What is financial aid and how do you obtain it? 2. How are student loans different from scholarships and grants? 3. What is the difference between Federal Work-Study and Non-Federal Work-Study? 4. What are some nontraditional methods to pay for college? Housing Main Idea: Paying for housing is a major life expense. You will need to consider the costs and benefits of both buying and renting. What sing inting. Whatever you choose, you will need to do research to find the best option for your needs. 1. What questions should you consider when searching for a rental property? 2. How are fixed rate mortgages, adjustable rate mortgages, and hybrid mortgages different? 3. What are the costs and benefits of home ownership? Insurance Main Idea: There are many different kinds of insurance, including health insurance, auto insurance, and property insurance. Each one offers various options, and you need to consider all the choices in order to make the decision that is best for you. 1. What is an insurance premium? What is a deductible? 2. What is the purpose of health insurance? How do you obtain health insurance? 3. What is basic liability insurance? 4. What is the difference between renters insur eowners insurance ? 5. What other kinds of insurance are available? What is the purpose of each one? D. Charitable Giving Main Idea: Charities are organizations that are created for the purpose of helping others. People give to charity for many reasons. Many people donate mone ple donate money, but there are other ways to give to charity as well. 1. Why do people give to charity? 2. How can you donate to charity if you do not have extra money? Summary and Reflection Directions: Summarize the main ideas of this lesson by answering the question below. Write a detailed plan for yourself that explains how you plan to pay for college, buy or rent a home, and purchase Insurance. Provide logical reasoning for your choices