Bell Work

1
Bell Work

• Do you currently own a credit card?
• Are you planning on owning a credit card in the
  near future? Why or why not?

2
A Positive Spin on Credit Cards

• February 8, 2006

3
Brainstorming

• Line up your desk up with the person sitting next
  to you and come up with 3-5 reasons why you
  think owning a credit card is a GOOD thing.
• EVERYONE should write their groups reasons
  underneath their bell work.

4
Lets Get Real!

• The average debt load for a bachelors degree is
  close to 19,000
• A graduate degree adds about 31,000 more dollars
  in debt
• Thats a total of 50,000 just in college debt!

5
Dismal Truth

• Since 2000, many jobs have disappeared and
  paychecks have shrunk due to company balance
  sheets.
• The cost of living also keeps rising the down
  payment for most starter homes is probably more
  than what your parents paid for their first home.

6
Wait, there is hope!

• Credit card debt can be a financial lifeline in
  your young, broke, and fabulous years.
• Credit cards may be a temporary tool to fix your
  broke situation.

7
Career, Please!

• The single most important move you can make as a
  young adult is choosing a career over a job.
• The opportunity to gain experience and traction
  in your career comes before your income.

8
But how am I going to eat?

• Use your credit cards to make up the shortfall
  between what you earn and what you need to pay
  your basic monthly living costs.
• Used correctly, credit cards may be your ticket
  to living out your career dreams.

9
Financial Fools Need Not Apply

• Choosing a career is not a free pass to blindly
  pile on debt.
• This is not your ticket to live a party-hardy
  lifestyle courtesy of your credit cards.
• Dont think that it is O.K. to splurge because
  you will be able to pay off the debt as you begin
  to make more money

10
R-E-S-P-O-N-S-I-B-I-T-Y

• This method is for people who are conscientiously
  doing everything they can to get their living
  costs as low as possible but are still coming up
  a few hundred dollars short each month.

11
Necessities vs. Indulgences

• Buying groceries so you dont do hungry is a good
  use of your credit card.
• Using your credit card to fill up your gas tank
  so you can get to work is another good use
• No I deserve to splurge because you cant
  afford it!

12
Sum it up

• Before making a purchase, ask yourself if the
  purchase is worth double or triple its costs
• Sitting down for a restaurant meal with friends
  is an important part of life its how we
  socialize and relax.
• Save the pricey restaurants and clubs for special
  occasions.

13
Bibliography

• Want to know more? Check out The Money Book for
  the Young Fabulous and Broke by Suze Orman
  (Riverhead Books, New York, 2005).

14
Processing

• For homework, pretend you have a friend who is a
  recent college graduate who is having some hard
  financial times. Based on what you have learned
  today, write them a detailed letter (between 1-2
  pages) describing what they can do to find some
  financial happiness.