What Young Adults Need to Know About Money


Home Wheeling and Dealing Does Money Really Grow Credit Tips and Tricks Crime Scene Investigation Reality Check Supplemental Topics Lending Library		Credit Tips and Tricks Additional Activities Additional Resources Answers to Activities in the Newspaper Insert Download a lesson plan that includes the standards of learning for Virginia and New Jersey - PDF Now that Jane and Tommy have their name on a loan, they are building credit. Their parents decide to help them build more credit by making them each an authorized user on a gas credit card. This is revolving credit and can only be used at the particular gas station. Jane and Tommy are required to pay off their gas card each month when it comes due. What does revolving credit mean? What happens if they do not pay the full balance of their gas credit card each month? One year later...Jane and Tommy want to know what their credit report looks like. With the help of their parents, they apply online (through the Internet) at the credit bureau, Equifax.com. The next day they are each able to access their credit reports online. Jane and Tommy both have good credit, they have not been late for any of the payments, but Tommy notices that his name is misspelled on his credit report. He contacts the credit agency and they request that he send a copy of his driver's license to the credit agencies and they will look into the mistake and notify Tommy when the problem is fixed. Tommy mails the copy of his driver's license along with a letter stating the mistake and the change that needs to be made. Two weeks later Tommy receives a new copy of his credit report with his name spelled correctly. What steps should Tommy take since he found errors on the credit report from one credit bureau? What are some additional reasons for checking a credit report? Return to Top Additional Activities 1. Visit the Federal Reserve Board's Web site, http://www.federalreserve.gov/pubs/shop and review the information on their publication, "Shop: The Credit Card You Pick Can Save You Money." Using terms from this Web site, look at different credit card advertisements in the newspaper. a. How many different annual percentage rates did you find? 2. Using these same advertisements, visit the American Banking Association's Web site, http://www.bankrate.com/brm/calc/creditcardpay.asp and use their online calculator to determine how much interest will cost you for the advertised credit cards, based on their annual percentage rates. Return to Top Additional Resources Bank Rate, http://www.bankrate.com/brm/default.asp. Use this site to create a list of credit cards that best meets your needs based on goals, type of card, and class of card. Also, this site has great calculators so you can compare two credit cards based on factors such as average balance, annual fees, introductory rate and other factors; and to compute compound interest and the percent return on an investment. Consumer Action Web site and annual credit card survey: http://www.consumer-action.org has information on credit cards, insurance, privacy rights and other consumer rights. Department of Financial Institutions, http://www.dfi.ca.gov/kidspage/kidspage.htm has information, activities, and lots of helpful, additional links on topics related to teens and money management, and debt issues. Federal Reserve credit card survey: http://www.federalreserve.gov/pubs/shop has tips on credit card interest rates, how to pick the right card, and understanding credit card applications. Freddie Mac Credit Smart curriculum: http://www.freddiemac.com/creditsmart has modules on defining credit and its importance, how to manage your money, and getting and keeping good credit. National Foundation For Consumer Credit: http://www.nfcc.org provides suggestions on consumer debt and additional links to get information managing money and debt and where to get assistance if needed. Nolo, http://www.nolo.com/lawcenter/ency/index.cfm/catID/734BECB6-ADDE-4041-AEC595AF30EA15CE provides information on debt and credit. It also includes tips on how to avoid overspending and financial difficulty. The State Public Interest Research Groups (PIRGs) Web site: http://www.truthaboutcredit.org provides tips on avoiding credit card traps and understanding credit card offers. To Be a Have or Have Not, http://www.ahrm.vt.edu/Extension/www/index.shtml has information for young adults on saving, spending, credit, insurance, and other money management-related topics. A video and CD are available at no cost (you pay shipping, however) for presentations and programming. University of Kentucky's High School Financial Planning Program Web site, http://www.ca.uky.edu/agcollege/fcs/hsfp/ has information on topics related to credit and other money management issues. You can also sign up for their weekly email newsletter with updates relevant to these topics and educators and families have access to financial lesson plans. Credit Publications Cutting Costs, a Virginia Cooperative Extension Publication, available free from the Internet, http://www.ext.vt.edu/pubs/family/354-155/354-155.html Dollars and Sense for College Students or How Not to Run Out of Money by Midterms by E. Braitman. (1998). Princeton Review Publishing. Getting Out of Debt, a Virginia Cooperative Extension Publication, available free from the Internet The Ultimate Credit Handbook- Third Edition (2003) by Gerri Detweiler Credit Videos Buy Now, Pay Later: Credit Basics, The Learning Seed. (1996). The kit includes a video and teacher's guide on credit basics, credit histories, legal rights in using credit, credit repair, and how to establish credit. Credit Ready? Five Essential Lessons Before Starting to Use Credit, American Express Company. (1995). The kit includes a video, posters, sample activity sheets, and teacher's guide on topics regarding a description of credit, making credit choices, qualifying for credit, credit reports, and taking control of credit. Master Your Future: A Program on Financial Responsibility, by MasterCard International Incorporated. (1993). The kit includes a video and teacher's guide for secondary teachers that has topics on budgeting, checking and savings, credit, and credit history. Money Management Videos Budgeting User Friendly Budgeting, The Learning Seed. (1998). The kit includes a video and teacher's guide for topics on basic steps in financial planning: setting goals, preparing a basic budget, organizing household money matters, and how to plan for unexpected expenses. Return to Top Answers to Activities in the Newspaper Insert Unscramble the following credit terms discussed in this section. Each line is a separate term and each term has at least two words. a) d i t r e a u b u c r e _________________ ________________ b) e d i r e v o l v i n g c r t _________________ ________________ c) e e t r e s f n c l a e r b a a n f _________________ ________________ ______________ d) l m e n t i n s t l a l o a s n _________________ ________________ e) n t m p o u e r n d i e s t c o _________________ ________________ Answers: credit bureau revolving credit balance transfer fee installment loans compound interest Return to Top