Paying Off Your Debt

Teaching Tip:  “Bridge to Financial Freedom, 7 Steps to Paying Off Your Debt” is a great Infographic and makes a for an excellent class discussion or short lecture.  It can be projected on a screen in class and talked through – there are quite a few interesting facts imbedded in it.  This infographic ties in nicely with the “wrap-up” section of Part 2 “Managing Your Money” in Personal Finance Turning Money into Wealth.  In an effort to tie together the discussion on debt and its consequences Chapter 8 ends with “the six keys to successful debt management.”

There’s no question that we all would like to be debt free, but once you have debt, paying it off is much easier said than done.  Because eliminating your debt involves sacrifice and hard work, not many of us are able to live debt free, but it is possible.

Earlier this year, Jean Chatzky, the financial editor for NBC’s Today Show, published a new book, Money Rules, The Simple Path to Lifelong Security.  This book has more than 90 wealth-building rules like “’More money’, won’t always make you ‘more happy,’” “If you can’t explain it, don’t invest in it,” and “‘Free’ can be very expensive.”  Mint.com took some of those rules outlined by Jean Chatzky and put together an Infographic titled the “Bridge to Financial Freedom, 7 Steps to Paying Off Your Debt.”  It provides a simple step-by-step outline for saving, starting with some very basic advice, Step 1: Spend Less than You Make. Period.

Discussion Questions:

  1. How hard is it for you to spend less than you make? What specific spending item do you have the most trouble controlling?  What expenditure that you currently make on a regular basis would you consider cutting?  Take a look at the Infographic “Bridge to Financial Freedom, 7 Steps to Paying Off Your Debt,” what percent of Americans spend less than they earn?  Be prepared to discuss your opinion with your class.
  2. What do you think the biggest hindrance to successfully implementing this “Bridge to Financial Freedom” is?  Be prepared to discuss you opinion with your class.
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This entry was posted in 10 Principles of Personal Finance, Ch. 2, Measuring Financial Health and Making a Plan, Ch. 7, Consumer Loans, Ch.18, Financial Life Events and tagged , , , , , , . Bookmark the permalink.