Fool And His Money (1970)

foreign come here look uh I don't want this to get around see but uh this car this very car you're interested in buying used to belong to a famous TV star no kidding yeah but let me take it around the block once or twice just oh I wish I could Mac but uh I can't a new insurance law you see if you should happen to hit somebody I mean we'd be in real trouble look if you like the car why don't you just sign the contract then you'd own it and you could drive it all you like yeah but but she's in great shape a real cream puff yeah and if you should happen to have any trouble with it we'll uh we'll split the repairs with you 50 50. 50 50 50. well that sounds like a good deal it's a steal look I got a guy right now with all cash just dying to buy this car but uh I'm partially you service guys you know used to be one myself now this is the kind of car that a guy like you ought to have look why don't you just sign right here and she's all yours two hundred dollars down to balance over the next 18 months you won't even miss the money Marine you have just made a very foolish mistake [Music] foreign [Music] everything but I don't want to talk to you I want to talk to the man that sold me the car oh don't you see him sorry about that kid uh the guy who sold you the car he doesn't work there anymore he doesn't well they bought it this morning and there's something wrong with it look this car was in beautiful shape when we had it now we can't be responsible for what's happened or what after you've driven it yeah but The Man Who Sold me the car said that you pay for repairs 50 50. 50 50. did he tell you that that's why we had to get rid of them ain't promising things like that it's against company policy now our contract reads you buy them as is but this man says the transmission's bad and the engine needs overhaul and they're expensive to fix look I'm sorry you got a problem but we can't help you now uh would you mind getting this record off the lot it makes a bad impression I'll tell you what you take the car back we can't do that well then I'm just going to leave it here and I'm not going to give you one red Cent more and I want my 200 back oh want to play rough huh let me tell you something you signed a contract to buy that car so it's yours you also signed a note to finance the balance due and you better pay it or you're going to be in for some real trouble but but bought nothing now you've got yourself a commas and I'm telling you get off this a lot right now or I'm going to call the cops nuts yes Maureen you have made a very foolish mistake and unfortunately you're going to have to pay for it just as many other servicemen are paying for similar foolish mistakes they've made how is cheated that's what I was the world is full of people who will take advantage of you and it seems that the service man is their favorite prey well I don't know why I just couldn't let them take back the car you know just sort of the square thing there were two reasons why you couldn't two pieces of paper you signed one is a contract you didn't read agreeing to purchase the car as is from the used car dealer the other is a loan agreement to pay for the balance of the purchase price no matter what happens to the car you still have to repay the money you borrowed for me I never did understand things like silent [Music] silent all that you're not alone managing money can be a very confusing and difficult matter for anyone you'd be surprised how many servicemen get themselves into difficulty because of unwise buying practices some buy things on impulse they use charge accounts as if what they were buying were free happy birthday to you happy birthday to you happy birthday dear Florence happy birthday to you George you know it's not my birthday for another six months well happy unbirthday then I just bought this for you because you're so nice George where did you get the money for that TV set I charged it love it was such a bargain it was on sale and I just couldn't resist it Marge how could you you know we can't afford it I know you want a TV set in the bedroom but we just can't afford this one we still have 15 months to pay on the one we got last year what difference is if George had had enough cash to pay for that second TV set chances are he'd never have bought it instead he let himself get carried away with an Impulse credit purchase and has taken a step toward financial difficulty but it's not only husbands who are tempted into foolish buying practices many wives get caught up in department store revolving accounts and find themselves In Perpetual debt [Music] Diane what's with this thirty dollar charges want you know we've only been paying 20. well you know the other night when we had the cookout I was so embarrassed when we had to set up those card tables I just about died so I saw this terrific outdoor table Yeah but why didn't you come and ask me first well it's only ten dollars a month more we can certainly afford that yeah but by the time we get this one paid off you'll go out and buy something else and we'll never get out of debt all credit purchases should be paid within a definite period of time revolving charge accounts are very convenient but it's awfully hard not to keep using them especially on purchases that aren't really necessary the result future income is obligated for months or even years of course buying things that aren't really necessary is a major problem for most people you're a natural born dancer oh that's okay oh you're catching on very fast all you need to do is develop your natural Talent ah you were excellent with a few more lessons you'll be dancing just like a professional here's the contract I was telling you about one third off if you sign up tonight and you're on your way on his way is right that contract commits him to months of dance lessons that will cost him hundreds of dollars self-improvement courses are fine if you can afford them unfortunately that thought seldom crosses the mind of the victim [Music] in pretty good shape already fella I can tell even with that uniform one six months of our bodybuilding program and you'll be absolutely gorgeous and working out here is sure better than spending your time and money in some dirty old bar come on sign the contract the sales pitch is always convincing but that contract is loaded with expenses and anyone who signs it better be sure he can afford it and that he really wants to see the program through to the end once he signed he's committed many people end up paying for mail order lessons they never finish hey Rembrandt here's this month's bill for that stupid course you sign I leave us now 21 more payments many young couples have been talked into expensive sets of Encyclopedia far in advance of when they might ever need them you bought them for the kids Harry By the time our kids are old enough to read these books are going to be ancient history I'm not even pregnant there are people who have made the mistake of using credit to buy costly items from door-to-door salesman what a mess you got us stuck with a vacuum cleaner we don't need the miserable thing doesn't even work and the salesman's probably Miles Away by now there are many different selling gimmicks to trap people into overspending the easy credit trap of no money down and months to pay has left many marines with expensive suits and sports jackets they don't need and monthly payments they cannot afford remember you are never better dressed than winning uniform but buying used cars seems to get servicemen into the most trouble hey Charlie this transmission fill this sawdust that's the Marines car isn't it how can a guy be dumb enough to buy a used car from a place like he did without getting it checked out by a mechanic first yeah with this transmission job and engine overhaul he's going to be out nearly 300 bucks and he only bought it this morning you can avoid trouble when you buy a used car by shopping at a reputable dealer but even here it's a good idea to get an expert's opinion of the condition of the car first get a mechanic you can trust to check over the car before you buy it there's always someone in the motor pool who will help you his know-how can save you many headaches and considerable money later of course you should never sign the contract or any contract without reading it carefully and knowing what is in it it doesn't matter whether it's a contract for a used car or a series of dancing lessons a house full of furniture not reading and understanding what is in it can cause you a lot of trouble in every case check out a contract with your legal assistance officer before you sign it he can alert you to possible problems this contract has one catch Sergeant it says You must pay the balance in full before you leave the area how long do you expect to stay in the area my tour is up in two years sir and you want to pay for this furniture over a 36 month period if you sign this contract you'll be obligating yourself to pay for the balance in full in cash before you move do you understand that I understand that sir now if you do that your legal assistance officer is glad to help you it's his job don't complicate things for yourself by signing any contract until he sees it and be doubly sure never to sign a blank contract that's a quick way to wind up in real trouble perhaps the most important contract you will ever enter into is the marriage contract most servicemen expect to marry but you should ask yourself is this the right time can I afford marriage now can I support a wife and perhaps a family if I do get married will my wife have to work if so will the kind of job she can get lead to personal difficulties will she be happy far away from home living on or near a military base [Music] would it be better if I waited till my tour is up [Music] you know what the Saj always says is the corps wanted me to have a wife they'd issued me one well the sarge is a man of experience he knows the problems young service couples can have both financial and personal one of those problems concerns another important legal document the power of attorney this lets a wife make Financial commitments without the husband's knowledge what do you think we're going to do with it I think it's going right back we're a champion we can't afford it can't afford it came free with a freezer free with the freezer this thing's nothing but a piece of junk and you'll find a note to pay 600 for it well look if you don't like what I buy why did you give me power of attorney I wish I knew all major buying decisions should be made by husband and wife together even if a husband is overseas he can usually be contacted quickly to participate in the decision so a general power of attorney is unnecessary boy I sure didn't know there were so many ways to get into Finance trouble it all comes about when people forget that there are many many demands for their money and they must use good judgment in how they spend it look at it this way everyone should decide what he wants out of life set some goals for himself goals you mean like completing your education when you get out of the service so he can get a good job yes and making plans for getting married and starting a family and raising the kids and taking them on trips and sending them to college in it easy that's right all this takes money enough for you to have the things you will need enough set aside through insurance and savings so you don't have to worry about the future enough for doing the things that are fun chances are your goals will always require more money than you have at any given time but they give you something to plan and work toward no matter how much money you earn you should budget it so you know exactly how much you have to spend after Essentials are taken care of for example suppose a family earns 500 a month gross income after deductions for Social Security and federal income tax they are left with a net of four hundred and fifty dollars then they have other essential expenses that must be met each month housing food clothing and transportation now they're left with two hundred dollars but they must consider such things as insurance Cleaning and Repair entertainment and savings too ideally about 10 percent of income that leaves eighty dollars for buying the extra things they need or want they can't let their purchases exceed this figure or they're in trouble this isn't easy no matter how much a person earns that's why credit is used by so many people to help them buy the things they need today with the money they will earn tomorrow you mean it's okay to use credit after all I mean after hearing about all those financial troubles other servicemen got into I I felt kind of guilty about signing that agreement to buy this car as my daddy always used to say don't spend it if you ain't got it but using credit wisely is an important way of extending the money you have credit plays an important part in most people's lives in fact a good credit rating is one of the greatest assets you can have a department store charge account is another form of credit it usually requires full payment every month the problem comes when people forget to plan their purchases in advance and the total charges exceeds the income they have left over at the end of the month another form of credit is used by many people to buy big items like large appliances or cars almost no one can pay cash for them so they pay for them in installments plus an interest or service charge on the unpaid balance again they have to be sure their monthly installment payments are within their budget well that's the kind of credit I got buying this car and I do have enough money left over to make the payments well that's good yeah but I don't have any money left to get the car fixed ever since I had went for the down payment and now the repair shot says it's going to cost 295 dollars just to make it run right is there any way I can borrow this well there is a third type of credit consumer or personal cash credit it allows people to borrow money to meet unexpected emergencies to make worthwhile purchases or to meet other financial obligations personal loans may be available from banks credit unions or consumer finance companies these organizations have no product to sell so they evaluate their clients ability to repay the loan good character and a reputation for financial stability are the qualities they seek for these are their only assurances the loan will be repaid a charge is also made for this form of credit say yes sure I'm glad you mentioned this Consumer Credit maybe a personal loan is the answer to my problem you'd have to pay it back and I thought you couldn't afford any more payments yeah well maybe I think it's time you got some advice from your legal assistance officer before you get deeper into financial difficulty private none of these circumstances I'm afraid no loan company is going to lend you the money you're simply a bad risk yes sir I'm afraid you're going to have to chalk this one up to experience maybe we can get the car dealer to take the car back but you know you're going to lose money on it don't you it's better than nothing sir it's a tough way to solve a problem I know but the next time you get a car go to a good car dealer bring it to a mechanic let him check it out and then bring the contract back to me and let me see it before you sign it okay so they bought it back from you huh yep for a lot less than I paid for it but at least this check will help me pay off the note I signed I sure wish that bus would come you've learned to listen or two from this experience haven't you you bet I have ruined everyone ought to have Golds and he ought to use his money to help achieve these goals then everyone ought to itemizes income and find out how much money has after Essentials to help achieve these goals of course you got to make sure you don't spend more than you have and that's where the wise use of credit comes in to extend the amount of money you have in order to enjoy things now and pay for them at a future income am I doing so far so good you gotta watch out for credit it's a great convenience and having a good credit rating is one of the greatest assets you can have but credit obligates your future income use it unwisely and you can be in financial trouble for months or years I you have to be sure that ease of credit doesn't tempt you into buying more than you can afford you got to avoid buying things you don't need when you do buy it should be from a reputable Merchant you should never sign any contract until you understand what's in it make sure anything the salesman promises you is included let your legal assistance officer go over it with you and you should think twice about getting married before you were ready for it financially I guess it all boils down to this wise money management is many things using good common sense not getting overextended looking at the full price of every item you want to buy as if you're going to buy it with cash right and be sure to include the cost of financing because borrowing money costs money yeah but how do I know how much it'll cost the place you borrow from is required by law to tell you the interest rate be sure they do well that sounds like good advice oh here comes the bus back to the base foreign but you can be sure I'll never do anything foolish again so long I forgot I didn't have any money only this check well I guess I'll walk back to the base [Music] thank you