Prepare for a major purchase.

Preparation should include

• deciding how much one can afford
• accounting for other factors in the decision to make a major purchase
• considering whether to use cash, credit, or a loan
• evaluating the actual cost of the purchase, including the real cost of financing.

Process/Skill Questions:

• What does APR stand for?
• What are the advantages and disadvantages of leasing a vehicle?
• What is equity?
• What is escrow?
• When are you required to purchase private mortgage insurance from the lender?
• What are closing costs?