In todays world, most anyone can make purchases even without the money in hand to do so. There are many types of hard and fast rules for when it is acceptable to use credit. Today you will be analyzing a number of credit decisions. The key question is: Is this a wise use of credit? Altair is looking at buying a car. This car will primarily be driven by his wife who takes the kids to various events. Their family has a total savings of $750. Should they buy a more expensive car than the total of their savings? Why or why not? _____________________________________________________________________________________ Sallys favorite department store is offering an incredible deal this week on their store credit card. The deal states that if she spends $100, she gets $50 off her first bill. She does have some money saved up to spend in her checking account. This store is also having one of their biggest sales of the year. Should she open up a department store credit card? What additional information would be important to know to make a more informed decision? ____________________________________________________________________________________ Jakes brother just told him about a credit card offer that his family has been using for some time. They get 10% cash back on all their purchases and pay the entire card off each month. Jake is hesitant to sign up for this card. What do you think he should do? What else would you want to know about Jake? _____________________________________________________________________________________ Noa is looking at buying a foreclosed house near her apartment complex. It would be a stretch to make the mortgage payments each month, but the house is now selling for 40% of what it was listed for last year. What would you do? What else would you want to know? _____________________________________________________________________________________ Fatima has never had any type of credit. Her family always taught her that she should never have any type of debt. If she just graduated college and has $20,000 in her savings account, how likely is it that she will be able to go her whole life without taking on any debt? At what point would the amount in her savings account change your answer? _____________________________________________________________________________________ 6 What is one or two areas that you learned from this course thus far that you had no knowledge about? What did you learn? Research the topic and note two facts that you now know for the future. _____________________________________________________________________________________ What are some of the most common mistakes you see people around you make when it comes to the use of loans and credit? _____________________________________________________________________________________

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