Many people find managing their money a difficult task. Their use of credit cards and loans early in their adult years can prevent them from acquiring financial health in their lifetime. It is tempting to spend money you have not yet acquired once you are no longer a student trying to make ends meet.
Complete the financial health activities (The True Cost of a New Car) presented in Unit 7 Topic “Financial Health” related to spending money you do not have.
Share your experience with “The True Cost of a New Car” activity with your peers.
Change the size of the loan, years to pay it back, and the interest rate three (3) to four (4) times.
Start with the lowest loan amount you might need for your new care and increase by $5000 to $10000 each turn.
Start with a 3% loan (entered as .03) and increase by one (1) or two (2) percent each turn.
In each case choose between 5 and 7 years to pay it back.
Describe one of the monthly payments you would have to make based on your selections.
Loan amount?
Interest rate?
Years to pay it back?
Monthly payment?
Total car cost?
Discuss the potential impact a car payment of that size might have on your monthly budget.
Describe the other monthly expenses you would have to remove or reduce to make your payments.
Why Is or isn’t the car worth the sacrifices you might have to make given the size of the monthly payments?
What other options do you have to avoid taking out a car loan?
Please be sure to validate your opinions and ideas with citations and references in APA format.