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Hat tip to Big Picture blog who brought this well produced and engaging 10 minute video to my attention. It provides an historical perspective on how cities developed and the factors that determine where people live in in the U.S. compared to Europe. This would be a good supplement to your budgeting lesson as housing costs tend to be the largest expense so where you live is consequential:
Questions for students:
- Why did cities in Europe develop differently than those in the U.S.?
- Where do rich people tend to settle in European cities? Why? How is it different in the U.S.?
- What factors led to more suburbanization in the U.S. compared to Europe?
- What is the unintended consequence of this move to the suburbs in the U.S.?
- Where would you prefer to live: the suburbs or a city? Why?
Check out the most popular NGPF Activity: Create A Salary-Based Budget
A great opener to your Types of Credit unit. Start by asking your students to rank from largest to smallest the various types of consumer debt:
- Credit Cards
- Auto Loans
- Student Loans
Answer and visual below (from Visual Capitalist and Equifax): $12.4 trillion (as of August 2016)
Here’s a meaty set of charts to include in your Types of Credit unit. I love it because it provides a more holistic view of the various types of debt that consumers have and how their balances vary over an adult’s life:
Hat tip to Sarah Tavel of Greylock Partners who included this chart in her excellent presentation “Saving people money.”
First, some orientation is in order.
Answer: Tens of thousands of dollars when looking at long-term loans like mortgages.
Great chart recently released by myfico.com (hat tip Motley Fool) demonstrates how current interest rates on mortgages vary based on credit scores:
Here’s a quick mini-activity for students to see how much a low credit score could cost them:
Here are the choices:
- Paying my mortgage or rent
- Lack of stable income
- Paying for education
- Not being able to retire
- Not having enough money to fund an emergency
- Wanting a nicer lifestyle
- Paying off my debt
Answer: Not so much.
From Nobel Prize winner Robert Shiller at New York Times: