Health DMA

Please take out a piece of paper and complete the following:1.Write down the vocabulary word and definition.2. Choose ONE of these options and complete it.–Draw a picture that illustrates/explains the vocabulary word.–Rewrite the definition in your own words.–Write a sentence that includes the term and the information from the

definition.

AnxietyApprehension or dread in anticipation

of a future menace or an imminent but unspecified danger, usually imagined or exaggerated.  

Today’s Agenda

DMAPersonal finances

◦Prioritize income◦Credit◦Savings

Info in RED needs to go into your notes

Name That ServiceEveryone needs a handout

Put the name of the service next to its description◦The signs around the room have the

names of the services

◦Move around quietly to find the answers

What is a credit card?

Why do some people have higher limits than others?

Why Is Credit Important?

It’s convenient EmergenciesPay for purchases over time

◦Interest % can be high – pay entire balance every month.

Can affect your ability to obtain employment, housing, & insurance

What is Collateral?

Security/asset

If you do not repay the loan

◦the lender is allowed to take/keep the collateral.

Getting into our time machine….

It’s in the future

You want to purchase your 1st home…. what do you need?

Home LoansHome Loans

◦Primary loan for purchasing a home

Home Refinance Loans◦Loan that replaces primary home loan

Home Equity Loans◦Second mortgage/loan secured by the borrower’s home

Home Equity

A lender may allow you to borrow up to a certain percentage of your home’s value (usually 80%)

Value of Home $250,000

Minus debt -200,000 Equity $50,00

0

The Four Cs

Capacity: Your ability to meet payments

Capital: Value of your assets and net worth

Character: How you paid your bills or debts in the past

Collateral: Property/assets used to secure the loan

How can you increase your income?

Samar was doing well financially until he was laid off from work. He has not been able to find work yet, and is concerned about how he is going to pay his bills because he has almost depleted his savings. What steps could he take to increase his income?

The Jacksons’ home was recently destroyed by a large man-eating robot. They did not have adequate insurance coverage to cover the damages. How might they increase their income?

What is the difference between a need & a want?

Discuss with a neighbor…

Prioritize Your Expenses

Basic NecessitiesMortgage/rentFoodUtilitiesTransportationMedicationInsurance

Should always come before paying other expenses

What can you do to decrease your monthly

expenses?Discuss with a neighbor…

Decrease your Expenses…

If Wheeler hands you a marker – please write a suggestion on the white board…

Decrease Your Expenses

Start small by reducing/eliminating one new expense every month

Think twice before spending Plan & save for certain items rather than

using your credit card

Decrease Your Expenses

Tips to decreasing your expenses: Develop & follow a spending plan

Don’t eat out at a restaurant Become a more conscientious shopper

◦Make a list and stick to it, ◦Purchase only necessary items◦Shop sales

Avoid stores & shopping for fun

Cut back on or eliminate extra expenses ◦vacations, movies, sporting events, car washes,

cable/satellite TV or extended packages including movie channels

Decrease Your Expenses

Reduce your utility bills ◦downsize or get rid of your cell phone,

cable/satelite TV, conserve energy & water; cancel land-line phone

Contact creditors to negotiate a lower interest rate or monthly payment.

Shop around to get the best deal on big-

ticket items ◦cars, appliances, insurance, loans, child or

elder care; and cell phone, Internet, & cable/satellite plans

Scenario

Form a group of 2-3 people

Grab 1 handout◦Put everyone’s name on it

Read the scenario◦Fill-out the “Monthly Income & Expense

Worksheet” together◦Answer the questions together

The handout is double-sided!!

Turn in the handout when you are done