Un-Broke
What you need to know about money! Answer the following questions as you watch the video: Un-Broke. 1. What is the most common form of debt?
2. Why are student loans considered “good” debt?
3. How many credit cards to you actually NEED?
4. The average family has $_____________________ in credit card debt on __________ different cards.
5. Describe subprime mortgages in your OWN words.
6. Seth Green suggests only spending ______________ (fraction) of your income on housing. 7. Why do you need an emergency fund and how many months should it cover?
8. A stock is:
__________________________________________________________________________
_________________________________________________________________________________ ____
9. A corporate bond is:
_________________________________________________________________
_________________________________________________________________________________ ___
12. Define the following: - The DOW: -S&P 500: -NASDAQ:
13. In the long term, the stock market has:
14. Why should you participate in a 401(k)?
(turn over… there’s more…)
15. The average social security check is $___________________ a month.
REFLECTION
Think back over the entire video. What were the two most powerful messages and why? How can you use this information in the future
UNBROKE
This video can help with SMART goals
We want to avoid the financial situations some people are in.
Debt
Credit cards –
video mentions interest rates of 22-24%; they higher today 22 years old and $17,324 in debt
student loans – low interest rate i.e. 6-7% # of credit cards needed – 1
ave. American owes $10,000 in credit card debt high interest rate on all cards
minimum payment only – years to pay off
Sub prime mortgages
buying a house where you couldn't make payments housing payment – 1/3 gross monthly income
Car – he has low maintenance, not fancy vehicle House – hand me down furniture
energy saving appliances
2 bedroom house fits current needs has insurance and financial goals keep your spending tight
Emergency fund – safety net
3-6 months of living expenses set aside $1 per day for 4 months
$2 per day for 4 months $3 per day for 4 months
you could have $1000 in one year
Stocks – own part of a company
Bonds – you are loaning a company money both are long term
Bond – loaning co. $ for set period of time paid interest on loan
Stock market indexes – how American companies are doing
NASDAQ - Coolest and newest companies
Dow Jones Industrial – 30 of biggest business' S&P index – 500 of biggest business'
one financial pros listen to
Retirement account
Stocks go down – good time to buy stocks needed in portfolio
individual stocks can decline
over long term stock market has out performed everything PATIENCE
1926 - $10 invested; $20,000 today $10 in bank - $200 today Biggest risk is not taking one
401(K)
why? $ goes in before taxes – grows faster lower tax bill
retirement long term – no 20 yr, period with a big loss max $16,500 per year – Co. match?
variety in funds – co. chooses funds or you choose automatic deduction
ave. SS payment @$1100 – close to poverty
It's your money, it's your life
No one is special, no one is immune
Name: ___________________________________ Date: ___________ Block: _______
UNBROKE
__________________ __________________ are the leading cause of debt.
What type of debt has LOW interest and isn’t necessarily bad debt? _________________________________________
Cedric the Entertainer
__________________ - you get it, you spend it, you get what you want and you’re done.
How many credit cards does any one person need? __________________
The average American family has $ ______________ in credit card debt on an average of ______ credit cards.
Seth Green
How much should one pay for “housing” per month? ____________________________________________________ What is the suggested amount that one should have in an
Emergency Fund?
_____________________________________________________________ If you save $1 a day for 4 months, $2 a day for 4 months and then $5 a day for 4 months, about how much will you have
after ONE year? __________________
E*Trade Babies
__________________ - a share in a company; a.k.a. “part owner” __________________ - loaning a company money for a certain amount of time; a.k.a. “a fancy IOU” (lender) (In a nutshell, the
The __________________ you give your investments to grow, the better you’ll do.
The Jonas Brothers
The Dow Jones, S & P and NASDAQ indexes tell us how the __________________ companies are doing.
The __________________ looks at 30 of the biggest company names. Ex: GE, Home Depot
__________________ looks at 500 of the most important companies like Wal-mart, Johnson & Johnson and Disney. __________________ looks at the newest companies, such as
Apple and Google.
When these numbers are going __________, that means stronger companies, which means more _________________.
Oscar the Grouch
__________________ was the beginning of the modern stock market.
Rosario Dawson & Christian Slater
Why is 401(k) important? It’s a great investment because your money goes in __________________ taxes are taken out
(contributing pre-tax dollars; which means a __________________ tax bill).
How much should one put into a 401(k) annually? ______________________________________________________
(A lot of companies will match a percentage of your contribution)
The average Social Security check in the United States is about $ __________________ a month.
Which should happen first? Save for retirement OR Save for your children’s college education
Cara Casini
Viewing Guide Unbroke:
Everything You Need to
Know About Money
Name___________________________
1. Why isn’t student debt usually considered bad?
2. People really only need ____________ credit card.
4. What is the advantage of paying with cash?
5. Pay credit cards off ______________ to avoid interest fees.
6. The average family in America has $_____________ in debt with
__________ credit cards.
7. It would take ____________ years to pay off your debt of $10,000.
8. How do credit cards do a lot of damage?
9. What are sub prime mortgages?
__________ of your income.
11.How many months should you have saved for living expenses for an
emergency situation?
12.What are stocks?
13.What are bonds?
14.A ___________ time in investments means the better you will do in
gaining money with that investment.
15.What is the Dow Jones Industrial Average?
17.What is Nasdaq?
18.These last 3 indexes are used to show the state of our ______________.
19.When stocks are down consumers should normally __________ stocks.
20.Patience wins as you buy ____________________.
21.Pre-tax dollars means a _______________ tax bill.
22.What is a 401(k)?
24.A variety of funds is good for _________________________.
Should you save for a child’s college or retirement?
Linda Miller
Name: ____________________________________________________ Period ___________
Unbroke Pretest and Movie Notes
Answer the questions below. Use the left side of each answer section to write the answer to the question before watching the video. If you don’t know the answer, make your best educated guess. I want to know what you know about these topics. While watching the video, answer the questions in the right side of the answer section.
1. What is debt?
2. 3.
4.
3. 4.
5.
3. What is “interest”?
4. 5.
6.
4. How many credit cards should you have?
5. How long would it take the average American to pay off $10,000 of
high-rate credit card debt?
7. How much money should you have saved?
8. What is a stock?
9. List at least one example of a DOW Jones stock.
10.List at least one example of a S&P 500 stock.
12.List 3 smart pieces of financial advice.
1.
2.
3.
1.
2.
3.
Elisa Freeman
Un-Broke Video Questions
1. What type of debt is considered “good debt”?
2. How many credit cards are considered enough?
3. The average American family has how much in credit card debt?
4. The key to using a credit card responsibly is to do what?
6. What is a 6 month emergency fund?
7. Put a circle around the term that represents ownership in a company and draw a rectangle around the term that represents loaning money to a company.
STOCK BOND
8. The average social security check(you get this when you are 65) is $1100 – which is poverty level. This means that you need to do what?
9. Is it more important to save for retirement or your child’s education?
