Financial Literacy for beginners
Financial Literacy Pretest
Class Goal - Make smarter financial decisions that benefit you and your family
Topics to be addressed during the class.
Living on a Budget Managing debts Using Credit cards and building credit Saving money and investing
Paying for college understanding taxes bank accounts buying cars and other big ticket items
analyzing your pay stub mortgages and buying property Financial Vocabulary
DAY 2
Warm up - millionaire homepage
Financial Literacy Pre Test.
Get to know you Bingo
Day 3
Stocks- How do they work?
Stock simulation -Mutual Funds
Financial Literacy January 2016
Day 4-8
Analyze how the stock market works!
Compare different stocks and how they have grown since the recession.
In the stock market a company is valued on its potential for future earnings. The higher the P/E ratio, the more potential for growth.
Invest 100,000 dollars in the stock market and track how much money you can earn over 6 weeks.
Reference web site
How the stock market works Web site
practical money skills
Mortgage Calculators
Credit Cards
Class Goal - Make smarter financial decisions that benefit you and your family
Topics to be addressed during the class.
Living on a Budget Managing debts Using Credit cards and building credit Saving money and investing
Paying for college understanding taxes bank accounts buying cars and other big ticket items
analyzing your pay stub mortgages and buying property Financial Vocabulary
DAY 2
Warm up - millionaire homepage
Financial Literacy Pre Test.
Get to know you Bingo
Day 3
Stocks- How do they work?
Stock simulation -Mutual Funds
Financial Literacy January 2016
Day 4-8
Analyze how the stock market works!
Compare different stocks and how they have grown since the recession.
In the stock market a company is valued on its potential for future earnings. The higher the P/E ratio, the more potential for growth.
Invest 100,000 dollars in the stock market and track how much money you can earn over 6 weeks.
Reference web site
How the stock market works Web site
practical money skills
Mortgage Calculators
Credit Cards
BUYING YOUR FIRST HOME
Mortgage Calculator
Assignment:
Go to the home website zillow.com
1. Decide on a location for a house you would like to buy for no more than $500,000
You will find a lot of homes for sale that are way over that price but those will have to be for another day!!
2. Once you have chosen a home that you like, you will have to obtain a mortgage. My gift to you will be having a high enough credit score and income to support the purchase of your new home.
As a rule of thumb your mortgage payment with insurance and taxes should not total more than a third of your income.
3. Once you have identified your home you will need to obtain a mortgage.
Mortgage Calculator
You will apply for a 30 year mortgage with an interest rate of 4% per year.
Property Taxes - These are listed on zillow and divide these by 12 to get your monthly payment.
Property Insurance you have to have if you have a mortgage.
For this assignment assume your insurance will cost $1500 per year with a $5000 deductible.
Again divide this number by 12 to get your monthly payment.
Once you have all the information necessary complete the hard copy of the worksheet for this process in class and
create a Google Presentation detailing your new home with a link to it on Zillow. The class will vote on who has
found the best house. If anyone is competing for the same house whoever calculates their mortgage payment first
with interest and insurance will close the deal!!
House Buying Vocabulary
Mortgage - Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front.
They are loans which are paid back over a period of years.
Principle - The amount borrowed or the amount owed on a loan.
Interest - money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
Credit Score - The score that you earn by using and saving your money wisely. The better your credit score, the better terms you can
obtain on loans.
Preferred Properties
This is a link to a local realtor site that can help you choose your home
Buying a car resources
plate cost calculator
Loan Repayment Calculator