My Top 10 Financial Literacy Takeaways Alexia Adorno

1) I didn't know the differences between Closed-end and Open-end credit.

-Close-end includes regular payments required, borrowing for a set period of time, borrowing for specific item/amount and item bought belongs to the lender until paid off. Open-end includes more flexibility on payments required, not restricted to a specific purchase/amount, no set period of time to pay back, revolves, once paid off it can be used again.

Example of an Close-end credit: Personal, automobile and student loans. Example of an Open-end credit: Bank or store credit or personal line credit.

These help you with your funds and the different types of payments your trying to do, if you're trying to restrict yourself you can use close-end if you're not limiting yourself you can use open end

2) I learned the difference between Credit Score and Credit Ranking.....

-Credit score is a numerical representation of your credit history. Credit rating is showed to you in words, such as, very poor, poor, fair, good and excellent. These help you for your knowledge and how to improve with your credit seeing if you're doing well or not.

3)I learned what makes up our credit score

-Payment history, amount owed, credit history and new credit. Gives you knowledge to be prepared for what you need for a good credit score.

4)I learned the difference between stocks and bonds

-Stock is ownership, benefits from the growth of the company and profits are paid out in the form of dividends. Bond is a loan, benefits from the interest amounts paid for the loan, interest payments are made in the form of coupon payments. These two will help you get money depending if the investment goes well.

5) I know the differences between Discretionary, Fixed and Occasional payments...

Fixed: A payment maid every month, it does not change. You need to pay this and helps you know to keep in task to pay your bills.

Discretionary: A payment you make but it is not necessary you see if you want or don't want to buy it. You make this decision with your own choice, "do you really need that purse."

Occasional: Is like Christmas, a friends birthday party, or mothers day. You aren't spending money all the time with occasional.

6)Closed end and Secured always require collateral and Unsecured and Open end do not. Secured credit card is a very good way to build your credit as well.

7)APR (annual percentage rate) is the interest rate on borrowed money expressed as a percent for the entire year. The higher the worse and the lower it is, it's better. Helps you to know to try and keep a low apr.

8) I know the 5 C's

Conditions:State of economy

Capacity:Ability to make payment based on income, expenses and debt

Collateral:Assets being used to secure a loan

Character:Reputation, employment and payment history

Capital:Cash and reserved savings

The five c's will help you without your whole entire credit "life", to stay on your feet and going.

9) A Grace period is being able to give you a month or so to pay off your credit card bill. Helps you have extra time to pay off your credit bill.

10) I know that a CD (Certificate of Deposit) will help you gain the best/most interest. Better for you to earn more interest on money.

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