Understanding Loan Fundamentals and Car Loan Interest Explained
Learn about the basics of loans, including the differences between installment loans and revolving credit lines, how loan repayments differ from credit card repayments, and considerations before taking out a loan. Explore topics such as amortization, understanding loan payments, and how car loan interest (APR) works. Engage in discussions, complete worksheets, and watch informative videos to expand your knowledge on managing loans efficiently.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Loan Fundamentals
You Will Learn to Do: Differentiate between amortized installment loans and revolving credit lines Read an amortization table and understand how the payments are structured Consider whether taking out a loan is a good or bad idea in a given circumstance
Essential Questions and Discussion 1. How is loan repayment different from credit card repayment? 2. How does amortization work? And what is an amortization table? 3. What should you consider before taking out a loan?
How Easy Is It To Get a Loan? Complete the worksheet DATA CRUNCH: How Easy is it to Get a Loan? As a class.
Understanding How Loan Payments Work! Car Loan Interest Explained (The Easy Way) How car loan interest (APR) works! Watch "How to get a car loan": https://www.youtube.com/watch?v=C3ma_enSYm8list=PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17rindex=5 Please subscribe: https://www.youtube.com/c/HonestFinance?sub_confirmation=1 After watching the video, we will discuss as a class using the following guiding questions: Check out LightStream Loans if you're looking to buy or refinance a car loan. They've got great rates and they don't charge any fees or prepayment penalties. http://bit.ly/LS_AutoRefinance (I may be compensated by LightStream through this link.) I ll go over everything you need to know on car loans and interest. I ll cover how they work and how much interest you ll be paying for the car loan. Watch and learn. Thanks. Don t end up upside down in your car. Follow my advice and you ll be better off than most of us when it comes to your interest rate and length of the loan. ----------------- - CHANNEL RELATED RESOURCES AND RECOMMENDATIONS - This channel covers a broad range of financial topics that'll give your life and finances more value. Consider subscribing to Honest Finance for more related videos: https://www.youtube.com/c/HonestFinance?sub_confirmation=1 - POPULAR PLAYLISTS - Car Buying: https://www.youtube.com/watch?v=rwOcAHTH4Oslist=PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r Loans and Interest: https://www.youtube.com/watch?v=1CpSMo7To2Ulist=PLOmIpJDqCR-Kkqklbt4pRpcL7LnLZgNfl Amazon Reviews (like Audible, Prime, Visa): https://www.youtube.com/watch?v=GetFVRzw3_Ulist=PLOmIpJDqCR-Jb53gogjHvGsAn0XGXxFiE Stock Market and Investing: https://www.youtube.com/watch?v=uRBqoRfnH9wlist=PLOmIpJDqCR-J5YB7foTH-5ayM4tpRgVn8 Credit Cards: https://www.youtube.com/watch?v=KyA_RygVbYglist=PLOmIpJDqCR-LRMsepGvSHI6nP1vi9h9wH Buying and Selling on ebay: https://www.youtube.com/watch?v=XWHcCfl_m2Ulist=PLOmIpJDqCR-Ln1EkbLuksV8KINQf9uQOl - RECOMMENDED PRODUCTS/SERVICES - DISCLAIMER: This description contains affiliate links, which means if you click through the links, I can receive a small commission (at no cost to you). The average millionaire reads more than 2 book per month, so I'd suggest reading more right now. Audible is a great source for reading and they've got every book you can think of. Here's a link to get 2 free audiobooks from Audible. https://amzn.to/2O9mMUI If you're want to invest, but you don't want to do all the work, look into Betterment for automated, low-fee investing. They'll help with everything and are one of the best online advisers I'd recommend. http://bit.ly/Betterment_Investing If you want to invest in the stock market yourself, check out M1 Finance, because you can buy partial shares (which is awesome) and trades are free to make as well. http://bit.ly/HF_M1Finance If you're in need of a personal or auto loan, check out LightStream Loans. They have the best rates and don t charge any fees or pre-payment penalties. http://bit.ly/lightsteam_loans And if you want to start a YouTube channel, here's a great course called "YouTube Ranking Academy" by Sean Cannell. http://bit.ly/YTRankingAcdmy - SOCIAL MEDIA - 1. When loan payments are amortized, the total amount you owe every month _________________. 2. Why does the amount of INTEREST you owe decrease every month? 3. What happens to the principal paid over time? Facebook: https://www.facebook.com/honestfinancechannel Instagram: https://www.instagram.com/honestfinance/ Pinterest: https://www.pinterest.com/honestfinance/ Twitter: https://twitter.com/FinanceHonest ----------------- Welcome to the Honest Finance Channel! I'll give you the honest truth about a variety of financial and life improvement topics in a way that actually makes sense. I'm not a financial adviser and this is all my opinion, so take my advice for informational and entertainment purposes only. I simply want to share my financial advice with anyone who will listen. #honestfinance
Analyze: Understanding Amortization Now that you ve learned a little about amortized loans, we will dive into the math to understand the topic a little deeper. Follow the directions on the attached sheet to complete the activity. ANALYZE: Understanding Amortization
Preparing Kids to Make Borrowing Decisions Credit cards and loans each come with their own advantages and disadvantages. And taking on some credit and using it responsibly helps you build a solid credit history for the future. Watch this video and answer the questions on the next slide. Discuss as a class when completed.
Preparing Kids to Make Borrowing Decisions What should you consider before taking on debt? The video suggests you consider these 4 things before deciding to take out a loan: Is it necessary? Do the monthly payments fit in your budget? Could you save instead of borrow? Is it worth the added interest? If you were trying to decide whether to take out an auto loan for $6500 to buy your first car, thereby allowing you to commute for an impressive summer internship program next year, would that loan meet the requirements?
