A Good Debt is a debt worth paying all the interest for such as: Mortgage
College
Business loan

A Bad Debt is a debt that simply makes the item cost more such as anything that will depreciate rapidly.
Depreciation means it loses worth over time and use. For example:
Cars
Clothes
Food
vacation

1. List TWO good debts for AND TWO bad debts for yourself and discuss why.

ACTIVITY:
Examine your financial situation. (Do you have a good financial situation? What makes you say this?)

Figure out what you have to work with. (What should I do to improve my situation?)

Create your own Budget on the next page For example: