Financial Readiness

FINANCIAL READINESS

Highlights

DIALOGUE

Reflect on what we shared

OBJECTIVE

Why is this important?

Financial Focus

College Pays

TIME

Why is time the enemy?

DEBT

What is it?

Definition

Worksheet: Part II

Good vs Bad

More About Debt

SUMMARY

Wrap up discussion

DEBT

Let's take a closer look!

Worksheet: Part II

Worksheet: Part I

Worksheet: Part II SUMMARY

Finish your notes as we wrap up our discussion.

Worksheet: Part I

Work individually or with a partner to complete Part I only. Determine if each item listed is an example of a good debt or a bad debt. Explain your reasoning for each choice! Be prepared to share your answers with the rest of the class.

Debt is good when the debtor (the person who owes money) can make more money than the cost of the purchase or the loan payments.

GOOD DEBT

Debt is bad when the debtor (the person who owes money) buys something that depreciates (loses value).

BAD DEBT

VS

whole class dialogue

By Definition: Good Debt

• Business loan and house loan

Other Items

• Decent ways to spend money
• Do not qualify as good debt under the definitions of good debt & bad debt

College Degree

Going to College

• Having a college degree or certificate makes one much more likely to:
• Earn an income
• Stay employed

• Also an example of a good debt
• Earning a degree should help students make more money over time than the degree cost

focus on financial readiness

• Learn about important ideas for spending money wisely.
• Identify examples of good debt and bad debt.
• Apply these ideas to post-secondary attendance.

Worksheet: Part II

Take notes while we watch the following video.

debt

Debt is money that you owe someone. All debt has risks. Sometimes the end result of having the debt is worth it.