Lesson 2- Spending

Section 1- Videos & Discussion Questions

After each video, answer the Discussion Questions below.

Please take notes on answers shared during the group discussion. If you are completing this course as a self-study, answer the questions below.

Section 2- Dig Deeper

Philippians 4:11-12; 1 Timothy 6:6-8

Acts 4:32-37; 1 Thessalonians 4:11-12

5. How do the following factors influence your spending and lifestyle?

Deuteronomy 15:4-6; Deuteronomy 28:1-2, 12; Deuteronomy 28:15, 43-45

Romans 13:8; Proverbs 22:7

Psalm 37:21; Proverbs 3:27-28

2 Kings 4: 1-7

Section 3- Let's Get Practical

1. Continue recording in the 30-Day Diary.

2. Escaping the auto debt trap.

Automobile loans are one of the leading causes of indebtedness. Seventy percent of all automobiles are financed. The average person keeps their car between three and four years. The average car lasts for ten years.

The average depreciation rate of a new car is roughly 15% per year. So if you bought a new car for $20,000, in 4 years it would be worth roughly $8000. Yikes!

Here’s how to escape this trap. First, decide in advance to keep your car for at least six years. Second, pay off your automobile loan. Third, continue paying the monthly car payment, but pay it into a special savings account for yourself. Then when you are ready to replace your car, the saved cash plus the trade-in should be sufficient to buy the next car without credit. It may not be a new car, but you should be able to purchase a good, low-mileage used car, without any debt.

If you have financed a car, use the Auto Loan Payoff Calculator above to formulate a plan to pay off your car early. It could be your first step to never buying a car with credit again!

3. What if I don't have any debt?

If you don't have a car loan or any debt- awesome! Stay that way! But just so you understand the consequences of debt, look at the following scenario:

You have just started your first job and received a credit card with a $4500 limit at 18% interest.

With your credit card you purchased some really cool things; a new television ($1200), a new wardrobe ($800), a new computer ($1200), and decided to get some incredible rims for your car ($1300). You have maxed out your card and now owe $4500. You are faithful in making the $180 a month payments. $180 a month may not sound like too much, but here is the true cost of these purchases.

With interest, you have ended up paying $7073.51. Not only that, it will take you almost 11 years to pay off this credit card. By the time you pay off the debt the clothes you purchased will be completely out of date, your computer will be technologically obsolete, your TV will have died a year ago, and those awesome rims you bought are more than likely in a junk yard.

Section 4- Memory Verses

Romans 13:8

"Owe no one anything, except to love each other, for the one who loves another has fulfilled the law."

Section 5- Definitions

1. Debt- something that is owed or that one is bound to pay.

2. APR- the amount of interest on your total loan amount that you'll pay annually.

3. Secured Credit Card- a credit card that is backed by a cash deposit you make when opening the account. The deposit is usually equal to your credit limit.

4. Interest- additional money paid by the borrower for the use of the money, calculated as a percentage of the money borrowed and paid over a specified time.

5. Co-signer- someone who agrees to take responsibility for a debt if the borrower defaults.

6. Budget- an itemized estimate of expected income and expenses for a period of time.

Section 6- Take Action and Prayer Requests

Section 7- Jungle Crossing

Test your gaming skills and your Give, Save & Spend knowledge by playing Jungle Crossing. The more you learn each week, the higher you'll score!


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