Objectives:
- Make good purchase decisions
- Choose a vehicle that suits your needs and budget
- Choose housing that meets your needs
- Decide whether to rent or buy housing
- Calculate the costs of buying a home
- Get the most out of your mortgage
Reading For This Module:
Chapter 8 – Keown, Arthur, “Personal Finance: Turning Money into Wealth, Prentice Hall Publishing. 6thedition
Textbook PowerPoints (.pptx)(.pptx)
Opening Vignettes:
With big ticket purchases, it is very easy to accidentally over pay or overextend yourself in order to keep up with others. Before you spend, think. Don’t just rush in and say…
Cars are a lot of fun but a really bad investment. Any car costs a lot of money. You have to look at the cost of ownership from operating costs, insurance, maintenance and financing to understand the big picture. Learn more about how to save money on buying a car. (-from video description).
Introduction:
This section examines the planned purchases of automobiles and housing. Comparison-shopping to make a selection that fits personal and financial needs is stressed. Both leasing and financing of automobiles is considered.
Different housing options are considered, as are the advantages and disadvantages of owning and renting housing. Costs of housing ownership are reviewed and categorized as initial or one-time costs, recurring costs, and maintenance and operating costs.
The section also discusses the process of selecting a home, negotiating the price and contract, and securing financing.
Dr. Waller Lecture: Big Ticket Purchases (video) (1:05:38)
This video lecture discusses the importance of financial decision making when making big ticket purchases such as an automobile and home. This lecture corresponds to chapter 8 in textbook.
Home Auto Lecture PowerPoint (.pptx 49sl, 2MB)
Additional Optional Resources for this module. (material will be on graded assignments)
What to Know When Buying a Home
Get all the important information about how to buy a house. We’ll show you how to plan out your process, what to keep in mind, what to ask questions about, and how to finance your new house. Whether you’re thinking about a starter home, upsizing, downsizing, or just looking for a change of scenery, this is the webinar for you!
Where To Live: Renting vs. Owning
These handouts below are provided as additional reference for deciding whether to rent or buy and the importance of understand your lease.
Renting Information (.pdf 3pp 149KB)
Renting Information (.pptx 15sl, 194KB)
This information is provided as additional reference material on buying an automobile.
I will always buy a used car, here’s why.
Car Buying Tips
Shopping for Auto Loan (.pdf 2pp, 87KB)
Reflection:
- Separate needs from wants, compare products, negotiate, maintain what you buy, and resolve complaints
- Lease or buy a vehicle that fits both your personal and financial needs
- Choose housing that meets your needs, pre-shop, comparison shop home and financing options, and maintain if you purchase
- Get the most out of your mortgage
Practice Quiz (does not count toward grade)
Quizzes
Take the quiz for this module on Canvas.