Managing Debt

Managing Debt

Introduction

Managing Debt

Learning Objectives

Lesson 1 Home Ownership: Cribs – How Do I Get Mine?

• Identify the advantages and disadvantages of buying a home and renting a home. • Explain the terms and conditions of a home mortgage and how they affect monthly mortgage payments and the total cost of a mortgage. • Identify the characteristics of fixed interest rate mortgages and variable interest rate mortgages and the advantages and disadvantages of each. • Calculate the equity a homeowner can acquire.

Lesson 2 Auto Loans: Getting Wheels

• Identify the characteristics of a car lease. • Explain how the cost of a leased car is determined. • Identify the characteristics of a lease that will increase or decrease the cost of a leased car. • Identify the operating costs for which a lessee is responsible.

Lesson 3 How to Finance a College Education: Big Expense, Bigger Payoff!

• Explain the difference in the cost of attending a public or state university, a private university, an in-state college, an out-of-state college, and a two-year college. • Identify the various forms of financial aid available to students – grants, scholarships, loans, and work study – and the means to reduce the cost of college. • Determine the amount a student must fund toward his or her college education under various scenarios. • Determine the tuition, room, and board for Connecticut’s “state” universities, “out-of-state” public universities, and private universities.

Lesson 4 Managing Your Debt: How Much is Too Much?

• Identify and calculate the ratios used to determine acceptable levels of debt.

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Introduction

Learning Standards (grades 9-12)

Business

Connecticut Department of Education

Business and Finance Technology – Business Management • Identify factors that affect the choice of credit, the cost of credit, and the legal aspects of using credit. Cooperative Work Education • Compare and contrast strategies for personal finance and risk...