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Warm Up (8/27
List two facts you already know about credit cards.

Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Take Charge of Credit Cards

Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 2 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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What is a Credit Card?

Pre-approved credit
Credit- When a financial institution lends an individual money and trusts he or she will pay it back

Used to purchase items now and pay for them later The word credit comes from the Latin word Credo meaning I believe.

Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 3 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Credit Card Terms

Interest- Fee for borrowed money Credit Line Maximum amount of money that can be charged to a credit card Annual Percentage Rate- Interest rate charged to the cardholder on the amount borrowed Finance Charge Possible charges assessed to an account for credit card use
Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 4 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Credit Card Terms Continued

Annual Fees - Fee charged once per year for credit card ownership Minimum Payment Minimum payment of a credit card bill that must be paid Due Date Date payment is due Late Payment Fee - Fee charged when a cardholder does not make the minimum monthly payment by the due date
Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 5 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Advantages
Brainstorm 3 advantages of using a credit card
Convenient Useful for emergencies Often required to hold a reservation Purchase expensive items earlier Eliminate the need to carry around large amounts of cash
Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 6 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Disadvantages
Brainstorm 3 disadvantages of using a credit card
Paying interest Additional fees are common Tempting to overspend Responsible for lost/stolen cards Identity theft is easier Can cause large amounts of debt
Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 7 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Safety Tips
Shred any unwanted credit card offers or credit cards received in the mail Always check your credit card statement to make sure there are no false purchases Sign card with signature and Please See ID Do not leave cards lying around Close unused accounts in writing and by phone, then cut up the card
Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 8 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Safety Tips continued

Do not give out account number unless making secure purchases Keep a list of all cards, their account numbers, and phone numbers separate from cards Report lost or stolen cards promptly

Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 9 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

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Remember.

Only use a credit card when there is no doubt about ability to pay off the charges at the end of the month

Family Economics & Financial Education December 2005 Get Ready to Take Charge of Your Finances Take Charge of Credit Cards Slide 10 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona