This video will be useful in your savings unit and exposes students to key terms including emergency savings, credit card debt and financial security. As you watch this two minute video from Bankrate.com, note the factors that their survey measures to determine whether consumers feel financially secure:
Here are a few questions to get the conversation started:
- What are the recent trends around consumer financial security? Are Americans feeling more or less secure? Why?
- Which factors are considered in putting together this Financial Security index? Do they all make sense to you?
- Why is Emergency Savings important? What is a common rule of thumb about how much you should have in Emergency Savings?
- What do you think is the relationship between Emergency Savings and Credit Card Debt? Would you expect someone with large amount of Emergency Savings to carry high amounts of credit card debt? Why or why not?