YOU work hard to earn your money. Make it work for YOU!

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1 YOU work hard to earn your money. Make it work for YOU! I raised my credit score by 100 points and saved on my car loan. We paid off our high-interest payday loan and started an emergency fund. I used $100 from my tax refund to open a savings account. I m saving $25 a month by using my new bank to cash my paycheck.

2 Build a Budget! 10% 9% Record Your Spending Record your daily expenses for each month, this would include everything that you spend your money on. Write EVERYTHING down gas, dining out, a pack of gum, a cup of coffee, popcorn or a magazine. SAVE all of your receipts for a week or even a month. Categorize Your Expenses Categorize your expenses so that you know where you re spending your money food, rent, clothing, entertainment, medical, grooming, etc. Add up all of these expenses, and then subtract them from your monthly take-home income. Do you spend less than you make? Do you spend more? By how much? You can change that equation by creating a budget. Review Your Expenses Review your expenses and look for a few ways you spend money for things that are not essential. Do you eat lunch out every day? Subscribe to all the premium TV channels? Pay for memberships or subscriptions you don t use? Buy more clothes, shoes or sports equipment than you need? Where can you cut? How much can you cut? Eliminate Unnecessary Expenses Make a plan to eliminate one or more things on your list of unnecessary expenses and add that amount to a savings category. Create a budget that shows all your expenses plus the money you can now direct toward savings. Even if it s only a few dollars a week, it ll start to add up for you. Review Your Budget Review your budget regularly to ensure you re on track. Look for ways to add to your savings and increase your income. 18% 3% Monthly Expenses 40% 7% 1% 12% Sample Monthly Budget Home/Rent $733 Utilities $165 Transportation..... $183 Food/Groceries..... $330 Clothing/Shoes $55 Entertainment..... $128 Savings Account..... $20 Medical/Insurance... $220 Total $1,834 BUILD A BUDGET RECORD ALL of your spending. REVIEW your expenses. CREATE a BUDGET. Eliminate UNNECESSARY expenses and ADD that AMOUNT to your SAVINGS

3 Open A Bank Account A bank account is a safe place to keep your money, helps you establish credit and provides an inexpensive way to cash checks and pay bills. It s important to choose the bank account that fits your financial needs and goals. Learn what to consider in choosing a bank and how to manage your accounts. Banks and lending institutions are there for you and can offer a product that works for your financial future. OPEN A BANK ACCOUNT What to consider when choosing a bank: Location Is the bank convenient to where you live, work or go to school? Are there several branch and ATM locations? It can be expensive to use an ATM at another bank because it may charge fees to non-customers. Balance Requirements How much money do you need to deposit to open an account and how much must you keep in your account? Banks have different minimum balance requirements for their free or low-price account options. COMPARE Bank FEE structures Fees Be aware of the fees that may be charged to your account. These may include: Charges for dropping below a minimum balance Monthly service charge Fees to order checks or for each check you write Specific transaction fees such as ATMs Withdrawals beyond a set monthly maximum Interest Tip: When looking for a bank, compare their fee structures. You will probably find that some charge lower fees or none at all for certain services. Do you want to earn interest on your account balances? Interest rates vary by bank. Other services Online banking and bill pay let you check account balances and pay bills online. Although online bill pay is convenient, there might be a fee for this service. Online banking can be accessed from a computer or smart phone. FIND an ACCOUNT that works BEST for YOUR FUTURE! Visit NerdWallet.com for bank product comparisons NerdWallet is run by a nonprofit in the San Francisco Bay Area. Use this website to: Check out rates on credit cards, mortgages and loans Compare bank accounts offered by local and national branches Access FREE financial advice Visit your local library if you need to use a computer.

4 Saving Is Tough, Where Do I Start? Get in the habit Check your savings once a month. Think of something you do every week: Call your mom, go to the grocery store or get fast food. There are plenty of things you spend money on without even thinking about it. What if putting away $20 a week was one of those things? By the end of the year, you could have up to $1,040. If you take this route, you can save without even knowing it. You may be asking, How do I get started, even if my paycheck is already exhausted? You may be eligible for tax credits Ask your tax preparer about the Earned Income Tax Credit (EITC). When you file your taxes this year, you may get a big refund! Sure, some of it might need to go to bills, but putting some of it aside helps you start saving and gets you ready for the unexpected. If you have not opened a savings account before, this is the perfect time to do so, and you have more options than ever! Credit unions Credit unions are nonprofit organizations owned by their members. They don t have to charge high fees to make big profits. That means you may get better interest rates and lower fees. PLAN for YOUR FUTURE START SAVING NOW! S Community banks Local banks invest the money they make right back into the community your community! National banks Brand name recognition and accessibility throughout the region or country provide convenience. If you start by saving $500 of your refund and add just $5 a week, you could have more than $1, at the end of 5 years at a modest 1% interest rate. Talk to your employer. They may be able to automatically deposit that $5, $10, or $20 right into your new savings account. You won t even have a chance to miss it. TODAY $500 Year 1 $ Year 3 $1, Year 5 $1, RETIREMENT $? Star t SAVING just $5 a week TODAY and you ll have $260 at the end of one year!

5 BEWARE! Payday Lending Takes Away Your Hard Earned Dollars What are payday loans? A payday loan is a very expensive form of credit that could result in a long term debt. If you don t have money to pay off your loan in two weeks (or less) and enough money left over to pay your bills and other expenses, you may find yourself owing much more to a payday lender than you originally thought. Get Payday Loan Receive Paycheck Not enough money to pay bills or other obligations Pay back entire loan plus fees In California, the largest pay day loan available is $300. You must repay the loan within two weeks and it costs $45. That means even if you pay your loan on time, you are paying an annualized interest rate of 391%! If you can t pay the loan in full within two weeks, your interest will increase further. Pay day loans just don t make financial sense. BEWARE OF PAYDAY LENDING Even if YOU PAY on time, YOU LL PAY about 391% on your payday loan! THAT S TOO MUCH! $300 + $45 = 391% Loan Amount Fee Annualized Interest Rate How can you avoid taking out a payday loan? Planning is ideal. The best long-term plan is to build an emergency savings fund. (For instance: If you save $50 a month, you will have $600 for emergencies within one year. Here are some other ways to avoid taking out a short term loan: Try borrowing from family members or friends. Ask your employer if they have a payroll advance program or a lending program. Can you get a credit card? Credit card interest rates are much less expensive than payday loans. Ask your utility companies or other creditors for a payment plan. Build up your savings over time to create an emergency fund for your family. Make a PLAN and Star t SAVING NOW! Tip: Visit for more information about planning ahead and managing your financial future.

6 What s The Deal With Credit? Your credit report tells potential lenders how responsible you ve been with credit in the past, so that future lenders can determine how credit-worthy you are. For this reason, it s important to check your credit report! Steps to better credit: Check your score and history at no cost! You can request a free copy of your credit report from each of three major credit reporting agencies Equifax, Experian, and TransUnion once each year. VISIT AnnualCreditReport.com You are also entitled to see your credit report within 60 days of being denied credit or if you are on cash aid, unemployed, or your report is inaccurate. If you spot an error, request a dispute form from the creditor within 30 days of receiving your report. Get help if you need it! Don t like what you see on your report? Seek out a reliable financial counselor. There are places that can help! Even if you have prior issues with credit, it s never too late to turn things around with the right support. Contact SurePath Financial Solutions SurePath Financial Solutions is a nonprofit based in California. They have counselors that can help address your concerns and start your path to financial wellness. Visit their website at SurePath.org Visit your local library if you need to use a computer. CALL toll-free 1- (877) Still have questions about your financial situation? Call (877) fair good Bad excellent CHECK YOUR CREDIT Check YOUR CREDIT report to FIND OUT how CREDIT WORTHY YOU are! Seek Out Financial HELP! It s NEVER too Late to RAISE YOUR Credit SCORE! Call for more info on financial education, counseling and debt alleviation programs in your area. MONTEREY 60 Garden Court, Ste. 350 Monterey, CA SALINAS 376 Main Street Salinas, CA