In financial literacy this year I have learned a hell of a lot in this class that is very interesting and very useful for my future. Some examples are Scams, Taxes, Insurance, Investments, and the 3 C's of credit.
One thing we learned about was scams. There are man y different types of scams ranging from hard things like 3 card monte to easy things like mattress scamming. 3 card monte is a game where the scammers tricks the better into betting large sums of money and letting them win but then once they get comfortable they start to get serious and make them lose so they can win all of the money back and them some. Mattress scams is where the stores sell used mattress as if they were brand new or where they sell old dirty street mattresses and tell people they are clean or "refurbished." Another common scam is the Rocks in a box. With this scam people stand outside of stores trying to sell fake goods to people by just having the old boxes. The boxes are filled with sand or rocks so that they have some weight and they have people pay full price for them
Another thing we learned about in financial literacy is different kinds of checks and what they are used for. One kind of check is a restrictive check. A restrictive check is used when you want a check to be deposited and not withdrawn from anything. A blank check is a check that just has an endoresment on it so anybody could grab it and put anything on it and legally cash it. Another kind of check is a special endoresment. With this one it must be deposited by the persons who's name is on it. the only downside is anybody with that name could get it
In financial literacy this year we learned about different kinds of car insurance and what the different kinds do. One kind of insurance is collison insuance. Another kind is comprehensive. Lasty there is bodily
This year in financial literally we also learned about different kinds of investments and there level of safety. One kind of investment is stock. Stock is just a little share in a big company. There are two ways to make money off of stock. You can make money with either dividends or capital gains. Capital gain is when you buy a stock at a low price and then sell it at a higher one so you can make a quick profit. Dividends are your share in the companies profits. Another kind of investment is a savings account. This is one of the safest kinds of investments because they are insured by the government so if the bank goes bankrupt you don't lose anything.
Lastly we learned about your credit score and the 3 C's of credit. The first C stands for Character. When calculating your credit score places will look at your character aka if you pay bills on time and if you pay rent when it is due. They will also look at how long you have lived and worked where you are currently. The second C stands for Capacity. Capacity means your ability to pay things on time. To find this they will look at your income and at your debts. Lastly the third C stands for capital. Your capital are things of value that you own. Things such as your house, car, etc. All of these things are taken into account when caluculating your credit score and when you go to take out loans and such