MIDTERM IS TODAY–CHECK JMC & TURN IN MISSING WORK NOW

H & R BLOCK BUDGET CHALLENGE:

  1. DO THE H & R BLOCK QUIZ WEEK 1–QUIZ ON BANKING
  2. PAY YOUR RENT BILL
  3. CHECK YOUR SURGE CREDIT CARD FOR MONTHLY CHARGES–RECORD THEM IN YOUR SPREADSHEET
  4. ON FEBRUARY 16: PAY YOUR SAFEPLACE INSURANCE BILL

Summary: High school graduates are a target audience for many products and services. This lesson provides general guidelines for you about reading and understanding contracts and agreements before signing on the dotted line.

By signing a contract, the law assumes it has been read, understood and agreed upon. During this week, you will choose products/services you will use during Budget Challenge. Vendor selections may be changed until 9 p.m. on February 15th. Once the simulation begins, the choices made on the vendor selections tabs represent contracts entered into by you.

Four important tips to follow before signing a contract:

  1. Read ENTIRE contract before signing, even fine print. Ask questions when you do not understand.
  2. Contracts are binding on both sides. Find out any start-up costs and penalties.
  3. Some contracts contain a warranty. Understand what is covered.
  4. Be sure to keep a complete and accurate signed copy of the contract for your records.

Navigation Tip #1: Make thoughtful product/service choices by reading the information on Student Home>Vendor Selections and Student Home>Info packet. Ask questions when you do not understand. Budget Challenge provides a Knowledge Base of FAQs located below the help desk form. If the information needed is not in the vendor tabs, info packet or knowledge base, questions may be submitted using the Help Desk form.

Navigation Tip #2: Plan payments as agreed upon in the contract. Vendor contracts in Budget Challenge are binding agreements. Failure to pay the full amount due results in fees and penalties. Note:

  1. Only the credit card allows a minimum payment.
  2. Insurance agreements require premium payments by the due date; otherwise, the insurance company does not have to provide coverage.
  3. Start-up costs may result in the first bill being higher than subsequent bills.

Navigation Tip #3: When a contract includes a warranty, it is important to know the coverage, effective dates and associated costs. In the simulation, one type of event may affect the cellphone. Two cellphone options are offered:

  1. one with a warranty $10 usage charge
  2. one cheaper plan with no warranty.

Navigation Tip #4: After the simulation starts, you may access vendor contract details on Student Home>Vendor Selections to verify the accuracy of your bills. This view is read-only once the simulation starts. 401(k) details are managed on Student Home> 401(k) page.

Vocab:

  1. Contract: A formal and legally binding agreement between at least two parties.
  2. Binding: An obligation by both parties to a contract.
  3. Warranty: Written guarantee, issued to the purchaser of an item by the manufacturer, promising to repair or replace the item if necessary within a specified period of time.

Did you know: Failure to fulfill a contract can cause financial loss and affect your credit score.

DO THE OVERDRAFT PROTECTION ACTIVITY:

  1. Scenario A:
    1. There is a rent bill due in three days from Vista Vue for $650.
    2. The Participant has $600 in their checking account and Checking Account Option #1 (no ODP).
    3. Their next paycheck is in five days.
    4. Their credit card balance is $700.
      1. HERE IS WHAT WILL HAPPEN:
        1. Vista Vue Landlord issues a rent bill for $650 to the Participant.
        2. The Participant gives a check for $650 to the Landlord to make an on-time payment without waiting for payday.
        3. The Teller issues a per check fee of $0.50 to the Participant.
        4. The Landlord goes to the Bank Teller to deposit the check.
        5. The Teller finds there is not enough money in the account and issues an NSF (Non-sufficient funds)
          to the Participant and a Returned Check fee to the Landlord.
    5. How much did it cost the participant to bounce the check?
      Total $ ____________ and Total Points __________
    6. If the payment is not received on time the payment is considered late. The Landlord gives the Participant a Late Fee and an Initial Late Fee Penalty. For each subsequent day, the Landlord issues a Per Diem Fee and a outstanding Balance Penalty.
    7. How much did it cost the participant because the payment is late?
      Total $ ____________ and Total Points __________
  2. Scenario B:
    1. The Participant has chosen Option #2 for the checking account.
    2. The Teller charges the Participant an ODP Subscription fee and hands them the coupon to show this coverage.
    3. Vista Vue Landlord issues a rent bill for $650 to the Participant.
    4. The Participant gives a check for $650 to the Landlord to make an on time payment without waiting for payday.
    5. The Landlord goes to the Bank Teller to deposit the check.
    6. The Teller finds there is not enough money in the account, but sees the Participant has ODP.
    7. The Teller works with the Credit Card Rep to get a Cash Advance. The Credit Card Rep also gives the Participant the Cash Advance charge to represent the amount that will appear on the credit card balance.
    8. The Teller gives the Landlord the Payment and gives the Participant the ODP Per Use Fee. The payment is considered on-time.
    9. How much did it cost the participant to get this check cleared using Checking Account Option #2?
      Total $ ____________ and Total Points _____

You can use the lessons learned from this Test Drive to make your selection for the Checking Account type on Student Home>Vendor Selections. Remember that you must finish making vendor selections for ALL of the tabs by 9 p.m. local time on February 15 the simulation to be eligible for prizing.

You can use the lessons learned from this activity to make your selection for the cellphone plan on Student Home>Vendor Selections. Remember that you must finish making vendor selections for ALL of the tabs by 9 p.m. on February 9th to begin the simulation to be eligible for prizing.

VIRTUAL BUSINESS CHALLENGE PERSONAL FINANCE–2018–until March 2, 2018–GET WITH YOUR TEAM & PLAY