Good or Bad Debt

Net Income - the amount you make before taxes.

You make $12/hour working at Taco Bell. How much would you make after working 30 hours in a week?

Gross Income - the amount you make after taxes.

Your deductions include FICA 7.65%, state withholdings 7%, and federal withholdings 13%. What is your gross pay per hour?
What is your gross pay working 30 hours?

Making Smart Shopping Choices

Now that we have our gross pay, let's go shopping!

Making $8.68 per hour, how many hours would you have to work to pay for these shoes? How much tax would you have to pay for these shoes?

$149 Nike Jordans

​​$28 Walmart

Making $8.68 per hour, how many hours would you have to work to pay for these shoes? How much tax would you have to pay for these shoes?

Making $8.68 per hour, how many hours would you have to work to pay for this jacket? How much tax would you have to pay for this jacket?

$128
Lululemon

Making $8.68 per hour, how many hours would you have to work to pay for this jacket? How much tax would you have to pay for this jacket?

$29.99
Curvy Waves

Good vs. Bad Debt

Debt is inevitable. You just need to decide which debt is better by looking at the APR (annual percentage rate) and term ( how long you have to pay off the debt).

Example 1: You carry a balance of $6,000 on your credit card with 12% APR for 3 months. How much is your accrued interest if you pay nothing?

Calculating Debt

Example 2: You carry a balance of $12,000 on your credit card with 16% APR for 5 months. How much is your accrued interest if you pay nothing?

5% APR for 72 months

Loan 2:

6% APR for 60 months

Loan 1: