Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank...
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Transcript of Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank...
![Page 1: Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.](https://reader036.fdocuments.us/reader036/viewer/2022062519/5697bfb71a28abf838c9eb84/html5/thumbnails/1.jpg)
Financial Literacy
Buying a Car. . .
![Page 2: Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.](https://reader036.fdocuments.us/reader036/viewer/2022062519/5697bfb71a28abf838c9eb84/html5/thumbnails/2.jpg)
Finance Options:Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest on your money.
Bank Loan – Borrow money from a bank. Expect to pay back over 12 – 60 months at an interest rate of around 7.7% APR.
Credit Card – No need to arrange the loan. Pay back a minimum amount each month. Expect to pay 17% - 22% interest on outstanding balance.
Family – Likely to be generous! May or may not expect you to pay back the loan/gift. Don't count on them for another handout next year – they have to pay bills too!
![Page 3: Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.](https://reader036.fdocuments.us/reader036/viewer/2022062519/5697bfb71a28abf838c9eb84/html5/thumbnails/3.jpg)
Important Terms:
APR: Annual Percentage Rate. This is the 'true' interest rate you will pay on money borrowed.
Savings Account: If you save money the bank will pay you interest.
Bank Loan: Borrowing money from a bank. Often 'secured' against the item you purchase.
![Page 4: Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.](https://reader036.fdocuments.us/reader036/viewer/2022062519/5697bfb71a28abf838c9eb84/html5/thumbnails/4.jpg)
Timeline Activity:
![Page 5: Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.](https://reader036.fdocuments.us/reader036/viewer/2022062519/5697bfb71a28abf838c9eb84/html5/thumbnails/5.jpg)
Summing it up. . . . .
Can you come up with a rule to decide which expenses are best met by saving and which by borrowing?