Financial Literacy

By:
Lisandro Ramirez
Bryan Lira-Jacobo
Luis Reyes
Erick Ramos
Diego Navarro
Michael Diaz
Gustavo Valencia
Budgeting
-Layout (plan) for money that you have or earn.

- Creates secure future, with little to no financial problems.

- Differentiate the needs in your live from the wants

CREDIT
The ability of a customer to obtain goods or services before payment, based on the trust
that payment will be made in the future.

When do you use credit?

You can use credit to purchase an item that you might

not afford at that time.

What is Interest rate?

Interest rate is the fee that the bank charges you for

borrowing money.
How to maintain good credit?
Pay off your balance every month
Never skip a payment

APR: Annual Percentage Rate

Jeep $28,000

Good Credit Bad Credit

60 months 60 months

4% 10% difference 14%

$516 $136 difference 652

$30,960 $39,120

Total difference $8,158

Debt
● What is Debt?
● Why is it important to know about Debt?
Bad Debt
Bad debt is a debt that cannot be recovered, that generally refers to high
interest consumer debt.

Some examples are automobile loans, payday loans, and credit cards.
 Good Debt
Good debt is an investment that will grow in value or generate long
term income.

Equity
Investing Things to know
Why is it important? Good/Bad(risky) investments
Return on investments
Patience
Investing money is important Dividends
because it helps create more Stocks
money

Investing is a long term approach

with a specific goal
Keyterms of investing
Stock- you own a percentage of a company

Dividend- a sum of money paid regularly by a company to its shareholders out of

its profits.

Shareholders- one who owns a stock in a company

Investments
How do I start investing?

● Cookie jar approach

 Good Investments
To find a good investment it has to find your goal and objective

A good investment will help you make profit or benefit you in your
future

Examples of good investments:

Retirement

College

A house
Investment over time
Investing in
companies or
stocks over years
grows into a good
profit
Example
Amount invested Investment Rate Investment term Total after 30 years

$600 7% 30 years $582,231

$900 7% 30 years $873,347

$1000 7% 30 years $970,385