Introduction to Financial Literacy 101

meet Annie earned she's a typical teenager with typical interests petty hears about a financial literacy course being taught at school she's very curious and wants to find out what it means to be financially literate prepend enrolling in the financial literacy course is the beginning of a life filled with awareness information and the knowledge of money matters that will put her on the path to success me bill OH bill is also a typical teenager but he and Penny are very different he sees the flyer too but financial literacy just doesn't interest him he's got more important things to do let's see what happens to Bill and Penny in the financial literacy course penny learns the importance of saving investing and working to earn money for what she wants she gets a part-time job so she can start saving money to buy a car bill however doesn't feel like getting a job he'd rather play video games and hang out in the financial literacy course penny discovers that if she wants to keep her money safe easy to track and growing she'll need to open a bank account [Music] bill runs into many while she's working she tells him she got the job to earn money to get a car Bill's impressed by Penny's work ethic but more than that he's still hungry he'd like to buy another slice of pizza but realizes he's broke that's when he decides to take Penny's lead and get a job of his own [Music] bill however doesn't open a bank account to save any money instead he frivolously spends all the money he makes on short-term purchases penny meets her savings goal so she heads down to the local dealership and with the help of the salesperson purchases her first car meanwhile bill finds out about a bank promotion that will give him $100 of the opens a checking account so he decides to take advantage of the opportunity [Music] but bill doesn't manage his account or bother to balance his checkbook he thinks it's too much of a hassle he figures if he runs out of money the bank will just let him know and they do but not before they slap him with a slew of overdraft fees the fees begin to add up and bill starts bouncing more checks because the fees of each marques coach he's now in debt because he didn't pay attention to his finances and they're spiraling out of control because he didn't pay attention he's paying through the nose meanwhile penny is loving her new car and the financial literacy course is also teaching her that she should now start to save money for college tuition bills he's been a driving by in her new car while he waits for the bus he decides right then and there to get himself a car but the car loan bills offered has an excessively high interest rate because his down payment was too long [Music] plus he buys a flash your car to impress his friends and that makes it even more expensive [Music] he works overtime now keep up with car payments and before he knows it bill just can't make his payments anymore so he loses the car [Music] you [Music] penny knows from her guidance counselor that a college education is an investment in her future she's paid off her car loan and has now saved up a good amount of money for a college tuition she researches and applies for a number of scholarships and financial aid opportunities to further cover the expense [Music] bill enrolls in college too but hasn't saved any money to pay for it he's too lazy to fill out the financial aid brant and scholarship applications patty has been accepted into a four-year university her first year she lives in the campus dorms but the second year she decides to rent an apartment near campus so she needs to find two roommates to split the cost she does her homework and consults an online roommate screening service to make sure she surrounds herself with quality people instead of consulting a roommate referral service bill decides to live with his friends for fun to hang out with even though they're financially irresponsible penny is inundated with credit card offers in her first semester of college because of her good car loan repayment history she is able to secure the most attractive offer available to college students she pays off the carton full each month further strengthening her credit school [Music] bill signs up from many credit cards and doesn't pay attention to the interest rates or promotional offer terms here acts of high balances he forgets to pay his bills on time and his credit score climbs [Music] because much of her education is funded through grants and scholarships not to mention what she earns working part-time henna is able to put some money aside each month to save for her dream of buying abroad bill is overwhelmed with his tuition bills and has no extra money to put towards savings he decides the college is not worth the cost and drops out in his first year to work full time so that he can make money faster [Music] after she graduates from college penny lands a great professional job with excellent benefits including a 401k because of her smart financial moves penny graduates college with excellent credit little debt and a nest egg to buy a small condo while searching she needs some real estate professional name cashflow that he looks up his license status on the Department of real estate website and learns that he's added suspensions and disciplinary actions cash also doesn't have an important worker doesn't offer any referral letters and makes excuses why he doesn't have anything you [Music] so penny tells cash to get lost and instead enlists the help of an educated real estate professional he tells her exactly what penny needs to do to qualify for a home loan how much home she can afford without stretching exactly what cost she will incur and what type of llama his rights return he'll times out the penny has bought a condo her Facebook page and decides that he wants to get one too but after being turned down for a home loan by a traditional bank because of his poor credit score bill goes to see cash flow who gives him a high interest loan that is more than he can comfortably afford [Music] because penny has ample room in her household budget and has made wise financial decisions she's been able to save for a trip to go to Brazil for Carnival a dream she's had since she was a young girl bill is so financially overextended that he falls behind of his payments and ultimately loses his house which ruins is already Marshall credit the only truck he's planning as to his parents basement on the bus where he's forced to start over [Music] that is living happily in our conduct [Music] she continues to make her mortgage payments on time and reevaluate her finances for more long-term financial planning retirement and the goal of trading up to a bigger home in later years when she has a family [Music]

Channel: cadeptdre

Views: 154,863

Rating: 4.5061059 out of 5

Keywords: financial literacy, high school

Id: 0laiuaq74Z0

Length: 11min 43sec (703 seconds)

Published: Fri Feb 03 2012