Unit 6 Project

Robert Li, Jonathan Moreno, Lesly Alarcon (EPF 5R Group 1)

How can people manage credit and debt responsibly to achieve financial goals?

Our project is to discuss how people manage their credit and debt in different stages of life. The four stages are: high school students, college students and/or young full time workers, 22-50 year-old-students, and 50-70 older adults.
Big image

High school students

High school students might not know much about credit and debt and they may have limited financial experience or resources. Most of them don't even have credit score.

1) What should they know if they get a job, a bank account and a credit and/or debit cart?
You should start a bank account for retirement savings when you first get a job, you put in fixed amount of money into that account monthly. The number of credit card you should own is 2, it's recommended by many educators of personal finance.

2) If they have to get loans for college, what should they know about managing debt?
If you have to get loans for college, of course you have to learn about different types of loans, and find the best type of loan that fits your situation. You should learn how to manage your debt by taking an online class on this topic, there are tons of resources online that are available for everyone.

3) How could they start building a credit score?
Building a credit score is very important. In order to start building your own credit score, you have to get a credit card and pay off the debt monthly. You can also start building it buy applying to a small loan that you are sure you can pay off on time.
Big image

College Students/ young people working full time

This group of people have a job, bank accounts, credit/ debit cards and bills(rent,electricity etc). While they have many education loans, these usually don't have to be paid until after college, they might have a car with a loan, they should start saving/ investing to build wealth. They may or may not have a credit score yet but if they do, it is probably in the good/poor range.

1) What should they do when paying bills and using a bank account regarding credit and debt?
In order to build a good credit score, you have to pay your bills on time monthly.

2) What should they know about car and education loans and debt?
Paying off car and education loans is not easy, it takes time and dedication. If you can't pay the monthly charge, it will stack up.

3) How can they start saving and investing to increase wealth while managing credit/ debt?
Start a bank account when you get a job and put fixed amount of money into that account monthly, it will eventually stack up to a huge amount of money and you can invest your money.

4) How can they build and protect their credit score?
You can pay your monthly charge from your credit card on time to build a good credit score. In order to protect your credit score, you have to protect your personal information from identity thefts.
Big image

22-50 year-old adults

22-50 year-old adults have regular incomes, hopefully through a career. The have living expenses, and they have cars. They may be paying off education loans. They have bank accounts with credit/debit cards. They may also have started a family and have all those expenses as well. Their credit score may range from good to poor because they have a lot of money and expenses to manage.

1) With living expenses, what should they understand about credit/debt?
They more you try to pay off your education loans, they more money you will save when you retire, because the charge of the education loan accumulates. If you don't have a good credit score by that age, you should start fixing your score by paying off loans and credit card regularly.

2) They may have a lot of loans- what about loans would be important advice?
It depends on the loan they have and how they are paying off the loans they have.

3) When managing a lot of money and expenses including starting a family - how about the positive/negative aspects of credit?
When you are managing a lot of money and expenses, remember to pay off the monthly loan payments and bills first, because these are the most critical aspect of your credit score.

4) How can they protect their credit score?
Do not trust anything from an unreliable source such as telephone ads, random ads in your mailbox.
Big image

Older adults/seniors

Older adults are usually at the high point of earning income. They have the usual living expenses but they are also saving for retirement and investing as much money as possible. They may have accumulated a fair amount of debt in loans and credit cards with they need to pay off before retiring. They probably own their home and may have paid the mortgage off. They may have an excellent/good/poor credit score.

1) How can older adults invest for retirement?
They can always ask investing professionals for advices on investing, it is a good idea to start your investment when you want a good amount of money in your account after you retire.

2) How can they pay off a lot of debt and still manage credit?
Invest some of your money in different ways and you will always get some profit from your investment if done properly.

3) How can they protect their credit score?
Do not trust anything from telephone ads or random spam mail in your mailbox.