Presented by Dr. Rebecca Neumann for Academic Staff
|
|
- Pierce Ramsey
- 5 years ago
- Views:
Transcription
1 April 21, 2017 Presented by Dr. Rebecca Neumann for Academic Staff University of Wisconsin Milwaukee
2 Mind your Money, Mind your Future Goals for today: Basic money management skills Tracking expenses Budgeting Saving Credit Credit report and credit scores Establishing good credit Protecting your wealth (insurance) How do you make your money grow? Retirement Investing for growth 2
3 Mind your Money, Mind your Future What is financial freedom? Being rich? Not worrying about money? Being able to buy anything you want? 3
4 Mind your Money, Mind your Future Financial freedom Ensuring that your net inflows are greater than your net outflows This allows you to save and buy what you want. Requires making choices! 4
5 The Role of Budgeting in Your Financial Plan What is a budget? Plan for income and expenditures! The key budgeting decisions for building your financial plan are related to cash flow planning. How can I improve my net cash flows in the near future? How can I improve my net cash flows in the distant future?
6 6
7 Creating a Budget Cash Inflows Earned income Savings Gifts or other Cash Outflows Rent/Mortgage Debt (school, car) Fixed Expenses Variable Expenses Note: Gross versus Net income Note: fixed versus variable expenses 7
8 Creating a Budget Forecast net cash flows over several months Start with a typical month Adjust it for unusual expenses seasonal shopping, holidays Allow for unexpected expenses medical care, car repairs, home maintenance Create an annual budget by extending your budget out for longer periods Revise and update as needed! Include saving as part of your budget Pay yourself first!
9 Budget worksheet Cash Inflows Income 1 wages Income 2 wages/tips Gifts Interest, dividends Alimony, child support Government payments Financial Aid Other May planned May actual June planned June actual July planned July actual Total Inflows Cash Outflows SAVINGS pay yourself first! Emergency funds Retirement Mutual funds College savings Stocks and bonds Fixed Debt payments Flexible rent or mortgage electricity cell phone internet cable water/sewer other utilities insurance premiums tuition, child care, etc credit card 1 credit card 2 Auto loan installment loan Groceries, food food away from home entertainment travel gifts books clothes medical/dental Total Outflows Net Cash Flows
10 Saving Tips for saving Set up a budget Pay yourself first Direct deposit Avoid check cashing stores and payday loans Save early power of compounding 10
11 The Benefits of Saving Early Kelly Starts at age 22 Saves $100 per month for10 years ($12,000) John Starts at age 35 Saves $100 per month for30 years ($36,000) The interest rate is 8% compounded annually. Who will have more money at age 65? 11
12 The Benefits of Saving Early $253, $148,015 Money Saved Total Savings at age 65 0 John Kelly 12
13 The Benefits of Saving Early What if Kelly had continued to save $100 per month until retirement? 450, , , , , , , , , $148,015 John (started at age 35) $427,140 Kelly (started at age 22) Money Saved Total Savings at age 65 13
14 How much do you need to save? budget 50% of income for essentials (needs) Living expenses housing, food, utilities, transportation 20% of income for financial goals Savings, investment, debt reduction 30% of income for personal spending Flexible spending Lifestyle choices Vacations, eating out, cell phone, cable, charitable giving Wants versus needs 14
15 Credit What is it? Credit is money that is lent to you. You pay it back over time, with interest. Credit allows you to buy now and pay later. Your ability to get credit is based on your borrowing history. 15
16 Credit Cards How they work When you use a credit card it is like taking out a LOAN from the issuer of the card.
17 Credit Cards What they cost If only the minimum payment is made: This is how some people end up Item Price APR Min. Monthly Payment (3% of Balance) Interest Paid How Much You End Up Paying Total Years to Pay Off TV $500 18% Start at $15 $198 $698? Computer $1,000 18% Start at $30 $698 $1,698? Furniture $2,500 18% Start at $75 $2,198 $4,698 13?
18 Credit Cards What they cost The benefit to paying more than the minimum: Original Balance APR Monthly Payment Total Years to Pay Off Total of Payments $2,500 18% 3% of bal. (start at $75) 13 $4,698 $2,500 18% $ $3,098 $2,500 18% $2,500 0 $2,500 18
19 Credit Card Tips Avoid carrying a balance. Don t use your card for cash advances. Think before you buy.
20 Debt Analysis Not all debt is viewed the same Student loans Credit card debt Mortgages Car loans Ratios can help you calculate positions for different types of debt and/or different types of cash flow.
21 How much can I borrow? Debt payments to income ratio = monthly debt payments / take-home pay Divide monthly debt payments (not including a house payment) by net (after-tax) monthly income Debt payments to income ratio <20% Financial advisors typically suggest a debt payment to income ratio below 20%. Some say 15% is a better guide May be called Debt payments ratio Indicates how much of a person s earnings go toward debt payments (excluding a home mortgage).
22 How much can I borrow? Debt to equity ratio = liabilities / net worth Divide total liabilities by your net worth Net worth = total value of assets minus liabilities leave out home value and mortgage Lower is more desirable and above 0.5 is less desirable. May look more reasonable at about May also be called Debt ratio Can be calculated as Total Debt/Net Worth or Long-term debt/net Worth
23 How much home can I afford? Front End Ratio = 28% (Principle + Interest + Taxes+ Insurance) Gross Monthly Income PITI to income or housing expenses to income or annual income percentage or front end ratio Basically the total monthly cost of the house (PITI = principal, interest, taxes, and insurance) relative to gross monthly income (before deductions), Back End Ratio = 36% (Principle + Interest+ Taxes+ Insurance + Other Debt Payments) Gross Monthly Income debt to income or debt ratio or total annual income debt percentage or back end ratio Basically all monthly debt payments relative to gross monthly income.
24 Credit Report and Credit Score A credit report is a record of how you have paid your debt. Your credit score is a number based on the information in your credit file that shows how likely you are to pay a loan back on time.
25 Free Credit Report You will need some sort of history to verify. Credit card or banking info. Previous addresses. 3 Credit Agencies Experian, Transunion, Equifax Credit report is free! (Credit score may not be).
26 What s In Your Credit Report? Payment History 35% 15% 10% Length of Credit History New Credit Amounts Owed 30% 10% Types of Credit Used 26
27 Credit score: FICO Score Payment History 35% MOST IMPORTANT!!!!!! On time payments, Late payments, bankruptcy Amounts Owed 30% Proportion of credit line used (suggestions to use <30% of available) Number of accounts with balances, total amount owing on accounts Length of Credit History 15% How long you have been established with credit New Credit 10% How many applications/requests for credit have you submitted? Okay to shop around, but if you seem desperate,that is bad Types of Credit Used 10% It s good to have more than one type of credit successfullyused
28 What s not in your credit score? Your race, color, religion, national origin, sex and marital status Your age Your salary, occupation, title, employer, date employed or employment history Where you live Any interest rate being charged on a particular credit card or other account Any items reported as child/family support obligations or rental agreements 28
29 Does Good Credit Matter? Actual rates on 7/13/15 for a 60 month new auto loan for $20,000 FICO score APR Monthly payment Total Interest % $361 $1, % $374 $2, % $392 $3, % $422 $5, % $472 $8, % $473 $8, DENIED 29
30 Does Good Credit Matter? Actual rates on 7/13/15 for a 30-year fixed rate mortgage for $150,000 FICO score APR Monthly payment Total Interest % $697 $100, % $716 $107, % $713 $113, % $750 $119, % $788 $133, % $838 $151, Denied 30
31 What will Improve your Credit Report or Score? No quick fixes Most measures are longitudinal Consider components of the credit score for possible actions Consider their weightings Consider how these are actually measured
32 What will Improve your Credit Report or Score? Payment History Tips Pay your bills on time every month! Get help with a debt repayment plan if you need it. Amounts Owed Keep balances low on credit cards and other revolving credit. Pay off debt; do not move it around. Moving it around will not help your score, and if you are taking out new cards, it may actually hurt. Length of Credit History Opening new accounts will hurt your length of credit history. Closing unused accounts may impact your credit history if you ve had an account open for a while, then that establishes a longer credit history. New Credit Shop around Types of Credit Apply for and open new credit accounts only as needed. Having credit cards and installment loans (and making timely payments) will raise your score. Someone with no credit cards tends to be higher risk than someone who has managed credit cards responsibly.
33 How do you Build Credit? Pay your bills on time. Apply for a small loan at the bank or credit union where you have checking and savings accounts. Apply for credit with a local store. Make a large down payment on a purchase and negotiate credit payments for the balance. Get a co-signer?!?! Worried about temptation? Request a low limit Get a card with usage restrictions, such as a gas card Consider sticking with a secured card Do not apply for many cards at once!!!
34 Important Things to Remember No quick fixes People who promise a quick fix Usually some form of debt consolidation Does this help? Consider the FICO score It is important to request and check your own credit report at least once per year. If you are denied credit, you may request a free report within 60 days.
35 Protecting your wealth Insurance Health Life Disability Renters or homeowners Automobile insurance Check university benefits website. Remember to enroll spouse/domestic partner and/or kids if there is a life change. Check options when this first occurs! 35
36 How do you make your money grow? Savings Emergency funds For specific uses travel, home loan deposit, car Savings, checking, money market, CDs Saving for the future (investing) Retirement funds Education Edvest Investment vehicles Stocks, bonds, mutual funds 36
37 What about retirement? WRS (Wisconsin Retirement System) Supplemental 403b or TSA (Tax-sheltered annuity) Wisconsin deferred compensation plan IRA, Roth IRA
38 What about retirement? Wisconsin Retirement System (WRS): Automatically enrolled once eligible Work at least 2/3 of full time for one year. Employee contribution is 6.8% Employer contribution is 6.8% Vested after 5 years. Also provides disability, separation, and survivor benefits. Payout options formula benefit or money purchase.
39 What about retirement? 403(b) or TSA tax sheltered annuity University s version of a 401(k) The funds can be invested in a variety of stocks, bonds, mutual funds. You then get the earnings in retirement. If there is a match, contribute at least up to the maximum amount that your employer will match! No match at the university. Wisconsin deferred compensation plan (WDC) IRA (pre-tax $) Roth IRA (taxed now but not at withdrawal)
40 Investment Vehicles Once you ve got emergency funds set up. And you ve started contributing to retirement funds. What else do you use? Money Market CDs Stocks Bonds Mutual Funds Consider risk, return, duration, tax implications
41 Types of Saving/Investment Products What is it? Savings Bank Account Certificate of Deposit Bank Account Stocks Shares in a company Interest Variable and Low Fixed, a bit higher Pays dividends Term No term Fixed Term No term Conditions + Can open with small amount Low monthly fee, no risk Need larger amount to open Higher interest, Compounds daily Can be bought and sold in the market at any time Produces highest return on average _ Low interest Penalty if withdrawn early Risk (short-term market fluctuation) 41
42 Types of Saving/Investment Products Savings accounts Allow you to withdraw as needed; also called share accounts at a credit union. CDs certificate of deposit pays you interest over a specified period of time; penalties for early withdrawal; usually pays higher interest than a savings account since you lock your funds away for a specific time period. Money market funds a savings account with a minimum balance; usually tied to changing market interest rates. The fund itself buys shortterm money-market assets and then pays out interest on the shares you hold.
43 Types of Saving/Investment Products Stocks You buy a share of a company; you gain ownership in that company; you then share in the profit of that company via dividends; and you can also gain based on a capital gain (i.e., you can sell your share for a higher price than you paid). Corporations issue stock in order to raise funds to invest in physical capital (e.g., new machinery, production processes, new technology, etc ) Corporate Bonds You lend to a company by buying a bond; you earn interest on that bond as a payment for loaning the funds to the company. Corporations issue bonds in order to raise funds to invest in physical capital (as above with stocks). The bond is the corporation s written pledge to repay a specified amount of money with interest. Government Bonds You lend to the government by buying a government bond. The bond is the written pledge of a government or municipality to repay a specified sum of money along with interest. These are often very liquid (trade a lot) and usually have low risk of default.
44 Financial Assets: Types of Saving/Investment Products Mutual Funds A mutual fund pools money together from a bunch of small investors to buy stocks, bonds, other financial securities. You can buy small shares of lots of different stocks and bonds by purchasing a share in a mutual fund. Funds can be weighted toward particular types of assets: Bonds, Municipal bonds, Balanced funds, Stocks, and Growth funds. Funds may focus on a specific investment strategy Income, growth, income and growth. Or have a specific investment objective Green funds - made up of shares of companies that are green or environmentally friendly. Social justice funds - made up of shares of companies that someone has deemed as socially beneficial.
45 Financial Assets: Types of Saving/Investment Products Diversification Spread the risk of loss in a variety of savings and investment options. don t put all your eggs in one basket. Mutual funds offer automatic diversification Buying one share of the mutual fund gets you a percentage of all the various companies in which that fund invests. Compare this to buying one share of one company, which doesn t offer you any diversification (if that stock falls, you lose money). You can buy shares in a mutual fund via a bank or other financial institution or directly online. Look for no-load funds or check to see that you re getting something in return for any fees charged.
46 Setting financial goals SMART goals Specific, significant, stretching Measurable, meaningful, motivational Attainable, agreed-upon, action-oriented Realistic, rewarding Time-based, timely Talking about finances Emotions matter 46
47 Setting financial goals Setting financial goals for multiple timeframes (and following through on them) is an important step on your path to financial freedom. Timeframe Short-Term (0-2 years) Time Horizon Dollar Amount Description Action to be taken Intermediate Term (2-5 years) Longer Term (5+ years) Example 4 months $200 Save for an upcoming vacation Put away $50 from the next 4 paychecks
48 Go do it now! Start tracking expenses. Set up a budget. Check your credit report. Set a financial goal and take a specific step toward that goal. Start saving!
49 Some Online Resources Financial planning Life insurance calculator: UW System benefits UWM benefits links:
50 Some Online Resources My page Excel versions of the expense tracking worksheet, budget worksheet, balance sheet worksheet. Word version of the financial goals worksheet.
51 Passing on financial skills to the next generation Talk about finances! Make a Difference Wisconsin Empowersteenagers with financial literacy educational resources and real-world lessons. Engaging volunteers, dynamic schools, and generous supportersshare a visionof stronger communities built by an investment in money smart teens.
Budgeting & Debt Basics
Budgeting & Debt Basics Why Have a Budget? Gain control over your finances Get the most out of your money Achieve your financial goals What is a Budget? A plan for saving and spending Allows you to choose
More informationPersonal Finance Guide
Educators Credit Union Personal Finance Guide Learn the basics and begin to secure your future. Earner. Planner. Saver. Member. For the teacher in you. 262.886.5900 ecu.com Table of contents What s personal
More informationpresented by Andrea Poole An Educational Session sponsored by Chartered Professional Accountants of Canada (CPA Canada)
presented by Andrea Poole An Educational Session sponsored by Chartered Professional Accountants of Canada (CPA Canada) Agenda Introduction What is Financial Literacy? Why is Financial Literacy important?
More informationA Financial Primer: 12 Tips to Help Secure Your Financial Future
A Financial Primer: 12 Tips to Help Secure Your Financial Future What will you do with your earning power and what will you have to show for it in the future? Table of Contents Page Your Earning Power
More informationYour Retirement Lifestyle Workbook
Your Retirement Lifestyle Workbook Purpose of This Workbook and Helpful Checklist This lifestyle workbook is designed to help you collect and organize the information needed to develop your Retirement
More informationYOU RE. WORTH MORE with. Your Guide to Financial Success
YOU RE WORTH MORE with Your Guide to Financial Success FOR EVERY DAY. FOR EVERY THING. Questions? Visit www.americu.org, stop by your local AmeriCU Financial Center, or call our Member Service Center at
More information401(k) 529 plan a American Stock Exchange (ASE) annual fee annual percentage rate (APR) asset auto insurance b bad debt balance bank bankruptcy
401(k) A retirement savings plan funded by employees and often matched by contributions from the employer; contributions are usually made before taxes and grow tax-free until withdrawn, although after-tax
More informationCredit and Debt.notebook August 28, 2014
Credit and Debt What does it mean to have credit? Credit means someone is willing to loan you money in exchange for your promise to repay it, usually with interest. Interest the amount of money you pay
More informationREADY, SET, GO FOR IT! Preparing For Your Financial Future COLLEGE BANC. Financial Literacy Workbook, Grades 9-12
READY, SET, GO FOR IT! Preparing For Your Financial Future COLLEGE BANC Financial Literacy Workbook, Grades 9-12 FINANCIAL PLANNING Financial planning is about defining and following a set of steps in
More informationP.Y.F. Participant s Guide
P.Y.F. Participant s Guide 1 Table of Contents Welcome Pre-Test Pay Yourself First Saving for Purchases Emergency Savings Retirement Savings Daily Decisions Matter Savings Tips How Your Money Grows (Simple
More information12/5/2013. Cash Management: Overview. More Month Than Money and Extra Credit. Why are you here? Benefits of developing a budget
12/5/2013 Cash Management: Overview More Month Than Money and Extra Credit Sean L. Mabey smabey@neamb.com Understanding cash management Age old questions: Where oh where does our money go? Making a budget
More informationCREDIT SESSION OBJECTIVES SUBJECT INDEX
CREDIT SESSION OBJECTIVES In today s economy, it would be rare not to use credit to pay for large purchases, such as car repairs or any type of emergency situation. Credit can be an overwhelming topic,
More informationThe steps to homeownership
Personal Banking Personal Banking Mortgage Mortgage The steps to homeownership A guide for first-time homebuyers Getting started. When you choose BMO Harris Bank for your mortgage, you ll get the resources
More informationUnderstanding Credit
Understanding Credit LAURA STEINBECK DIRECTOR OF BUSINESS DEVELOPMENT, SALLIE MAE 2018 MASFAP CONFERENCE Agenda 2 Credit Management Protect Yourself Understanding Credit Reports Summary: Financial Health
More informationPROJECT PRO$PER. The Basics of Building Wealth
PROJECT PRO$PER PRESENTS The Basics of Building Wealth Investing and Retirement Participant Guide www.projectprosper.org www.facebook.com/projectprosper Based on Wells Fargo's Hands on Banking The Hands
More informationDRIVING MY FINANCIAL FUTURE
STUDENT ACTIVITY 2 Write all of the things you d like to have or do that cost money, you can make the list as long as you want. Review the items you have listed and group them into the 3 category boxes
More informationWealth Strategies. Debt Management: Getting Started The Basics.
www.rfawealth.com Wealth Strategies Debt Management: Getting Started The Basics Part 4 of 12 Debt Management: The Basics WEALTH STRATEGIES Page 1 What is Debt Management? As a consumer in today s world,
More informationBudgeting Essentials
Budgeting Essentials One of the greatest satisfactions in life is having a sense of control over your finances. Through careful planning and use of money management techniques that anyone can learn, you
More informationCredit & Money Management
Credit & Money Management Certification Program TABLE OF CONTENTS SECTION 1 Understanding Money Chapter 1 Organizing Your Financial Life... 4 Chapter 2 Building Budgeting Skills... 8 Chapter 3 Basics of
More informationFinancial Needs Analysis Questionnaire (the involvement of ALL decision makers are required for an accurate assessment) Date: Time:
Primary: D.O.B. Spouse / Partner: D.O.B. Address Primary s Cell phone: Home Phone: Spouse / Partner Cell phone: Primary s e-mail Spouse / Partner s e-mail Height Weight Any form of tobacco use? Height
More informationFarmHouse International Fraternity New Member Education Program Topic Summary: Personal Finance
FarmHouse International Fraternity New Member Education Program Topic Summary: Personal Finance 11 College is a challenging time both in and out of class. As a student you are coping with a new environment
More informationFor many years we were happy to spend too freely, borrow too much and
For many years we were happy to spend too freely, borrow too much and hand our money over to someone else to manage, hoping to ride a market that always went up. Well, times have changed and today building
More informationYour Retirement Lifestyle WORKBOOK
Your Retirement Lifestyle WORKBOOK Purpose of This Workbook and Helpful Checklist This workbook is designed to help you collect and organize the information needed to develop your Retirement Plan which
More informationThe Budget Zone. Saving for A New Car Without Breaking the Bank. Course objectives learn about:
financialgenius.usbank.com Course objectives learn about: Setting Your Financial Goals Budgeting Your Income Understanding Interest and the Power of Investing The Budget Zone Saving for A New Car Without
More informationUnderstanding Your FICO Score. Understanding FICO Scores
Understanding Your FICO Score Understanding FICO Scores 2013 Fair Isaac Corporation. All rights reserved. 1 August 2013 Table of Contents Introduction to Credit Scoring 1 What s in Your Credit Reports
More informationBALANCED MONEY WORKBOOK
BALANCED MONEY WORKBOOK 2 Why live in balance? Welcome to the balanced money approach to budgeting! Balance is a concept we hear a lot about eat a balanced diet, keep balance between work and the rest
More informationFinancial Literacy. Budgeting
Financial Literacy Budgeting ACTIVITY SHEET 3-1 The B word budget 1 What do you think about when you hear the word budget? What words or feelings come to mind? Write down any other ideas the group came
More informationFinancial Well-being. Debt and Credit
Financial Well-being Debt and Credit Debt and Credit When evaluating financial wellness, debt has a real impact on your ability to reach your goals. Debt feels like a four letter word. However, it can
More informationTable of Contents. Money Smart for Adults Curriculum Page 2 of 45
Table of Contents Getting Started... 3 Module 5: Pay Yourself First Layering Table... 4 Icons Guide... 5 Module Overview... 6 Checking In... 7 Pre-Test... 9 Overview of Saving... 11 Savings Tips... 12
More informationfor Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook
for Newcomers and New Canadians Module 2 How to Build Credit In Canada Student Workbook Welcome! This workshop is about credit. Credit is buying something now, but paying for it later. Credit can be useful
More informationUsing Credit. services but do not require payments in full when the service is performed.
Using Credit How would you like to pay for this, cash or charge? Chances are you have heard this question asked. Cash or charge? is really asking you, the buyer, if you want to use the cash or the money
More informationRetirement Strategies for Women RETIREMENT
Retirement Strategies for Women RETIREMENT Contents Retirement Facts for Women... 1 Planning for Retirement...3 Financial Net Worth...4 Cash Flow...5 What Is Important to You?...6 10 Ways to Put Your House
More informationHomebuyer Guide Presented by:
Homebuyer Guide Presented by: HNB Mortgage 432-683-0081 www.hnbmortgage.com info@hnbmortgage.com Fax:(432)687-2612 NMLS: 205935 The basics What is a mortgage? A mortgage is a loan secured by real estate.
More informationWhat you need to know about getting, using and keeping credit. A Guide to Credit* American Financial Services Association Education Foundation
A Guide to Credit* What you need to know about getting, American Financial Services Association Education Foundation www.afsaef.org www.gmacfs.com using and keeping credit *If you would like to receive
More informationGREENPATH FINANCIAL WELLNESS SERIES
GREENPATH FINANCIAL WELLNESS SERIES MONEY CONCEPTS FOR TEENS AND YOUNG ADULTS Empowering people to lead financially healthy lives. TABLE OF CONTENTS Introduction...2 Your First Job!...2 Big Decisions...5
More informationUNDERSTANDING CREDIT. WASFAA Conference Seattle, WA Speakers: Thalassa Naylor, Sallie Mae Anthony Lombardi, Sallie Mae Date: April 10, 2017
UNDERSTANDING CREDIT WASFAA Conference Seattle, WA Speakers: Thalassa Naylor, Sallie Mae Anthony Lombardi, Sallie Mae Date: April 10, 2017 Agenda 2 Credit Management Protect Yourself Understanding Your
More informationProject Pro$per. Credit Reports and Credit Scores
Project Pro$per Presents Credit Reports and Credit Scores Participant Guide www.projectprosper.org www.facebook.com/projectprosper Based on Wells Fargo s Hands on Banking The Hands on Banking program is
More informationMoney Matters Reference Comprehensive Exam
NAME: DATE: PERIOD/ CLASS: QUIZ SCORE: Answer each question correctly. ACCOUNTS 1. The FDIC insures a bank account against loss if a bank fails up to what amount? a. $100,000 per individual account in
More informationPay. Yourself. First
Pay Yourself First Welcome 1. Agenda 2. Ground Rules 3. Introductions Pay Yourself First 2 Objectives Explain why it is important to save Determine goals for saving money Identify savings options Determine
More informationBe Credit Wise Credit is a way of having something now and paying for it later. Many
Be Credit Wise Credit is a way of having something now and paying for it later. Many of us want to take advantage of flexibility in our spending plans by using credit. Credit isn t free; it s paid for
More informationHighlights of The Tax-Sheltered Annuity Program. The California State University
Highlights of The Tax-Sheltered Annuity Program The California State University Tax-Sheltered Annuity Program TABLE OF CONTENTS TSA Program Overview... 1 Saving Through the TSA Program... 2 Making Investment
More informationTips from the Treasurer
Tips from the Treasurer Saving & Investing Money Saving for the Long Term Investing Responsibly City Treasurer Kurt Summers SAVING FOR THE LONG TERM 53 Saving for College Education 529 College Savings
More informationVolunteer Instructor Notes
Volunteer Instructor Notes KEY Student Activity Important Note Go Do It Now! Call to Action 1 Some classrooms may not be able to play videos, the internet connection may be very slow, or may not have audio
More informationYour financial plan workbook
Your financial plan workbook Purpose of this workbook This workbook is designed to help you collect and organize the information needed to develop your Financial Plan, and will include your goals and
More informationUnderstanding Credit. What it is, why it s important, and how you can maintain it. Brought to you by Sallie Mae and FICO
Understanding Credit What it is, why it s important, and how you can maintain it Brought to you by Sallie Mae and FICO Introduction A student loan may be your first major credit experience. This is a good
More informationDEAR TEACHER, TEACHER S GUIDE A supplement to. What s Online? DOWNLOADABLE PDFs STAR BANKS ADVENTURE RESOURCES VIDEOS.
DEAR TEACHER, Welcome to this special supplement to Money Confident Kids high school magazine from T. Rowe Price. This edition is designed to provide your 9th- to 12th-grade students with insight into
More informationAn interactive game designed to familiarize students with the personal finance management issues they are beginning to face as young adults Features
An interactive game designed to familiarize students with the personal finance management issues they are beginning to face as young adults Features financial questions throughout the game Like football,
More informationBudget Seminar. Cari Bray, Branch Manager Southeast Branch December 6, 2017
Budget Seminar Cari Bray, Branch Manager Southeast Branch December 6, 2017 Introduction Cari Bray, Southeast Branch Manager Agenda What is a Budget? Key Terms Short Term and Long Term Effects, Consequences
More informationECONOMIC EDUCATION FOR CONSUMERS Chapter 10
WHAT S AHEAD 10.1 What Is Credit? 10.2 How to Qualify for Credit 10.3 Sources of Consumer Credit 10.4 Credit Rights and Responsibilities 10.5 Maintain a Good Credit Rating LESSON 10.1 What Is Credit? GOALS
More informationVOLUNTEER TRAINING INFORMATION
VOLUNTEER TRAINING INFORMATION VOLUNTEER TRAINING Volunteers generally feel more comfortable in staffing a table if they have been provided with advance information about the concept and have time to read
More informationUnderstanding Credit. Lisa Mitchell, Sallie Mae April 6, Champions of Financial Aid ILASFAA Conference
Understanding Credit Lisa Mitchell, Sallie Mae April 6, 2017 Credit Management Agenda Understanding Your Credit Report Summary: Financial Health Tips Credit Management Credit Basics Credit health plays
More informationA GUIDE TO PREPARING FOR RETIREMENT
A GUIDE TO PREPARING FOR RETIREMENT MaineSaves A Guide to Preparing for Retirement MaineSaves, the State of Maine s voluntary retirement savings plan, is designed to help you move forward on your journey
More informationModule 3 - Budgeting ACTIVITY SHEET 3-1. Write down any other ideas the group came up with, especially ideas that fit your situation.
ParticipantHandbook ACTIVITY SHEET 3-1 The B word budget 1 Write down any other ideas the group came up with, especially ideas that fit your situation. What is a budget? Why budget? A way to keep track
More information1. Referrals 2. Earn your business as clients 3. We are expanding & need help
3 Reasons Why We Are Here Tonight: 1. Referrals 2. Earn your business as clients 3. We are expanding & need help Do you have someone right now who handles your current financial needs other than yourselves?
More informationYOUR GUIDE TO HEALTHY FINANCES GET YOUR FINANCES IN SHAPE
YOUR GUIDE TO HEALTHY FINANCES GET YOUR FINANCES IN SHAPE GETTING YOUR FINANCES UNDER CONTROL NEEDN T BE A HEADACHE Help is at hand with these easy-to-follow tips for getting your finances in shape. Whether
More informationBUDGETING SESSION OBJECTIVES SUBJECT INDEX
BUDGETING SESSION OBJECTIVES 8 Budgeting is the foundation of personal financial planning. Budgeting allows us to manage our money by tracking our income and expenses. Since every person is different,
More informationAdvertising An announcement usually paid of a product s or service s benefits that is intended to encourage its purchase.
Advertising An announcement usually paid of a product s or service s benefits that is intended to encourage its purchase. Asset An item with economic value that an individual or organization owns, such
More informationCHAPTER 2 MONEY MANAGEMENT SKILLS
CHAPTER 2 MONEY MANAGEMENT SKILLS CHAPTER OVERVIEW Successful money management is based on organized financial records, accurate personal financial statements, and effective budgeting. This chapter offers
More informationLesson 5: Credit and Debt
Lesson 5: Credit and Debt debt: something owed to a person or an organization credit: the privilege granted to approved clients to receive goods or services and to pay for them in the future In February
More informationc» BALANCE c» Financially Empowering You Credit Matters Podcast
Credit Matters Podcast [Music plays] Nikki: You re listening to Credit Matters. Hi. I m Nikki, your host for today s podcast. In today s world credit does matter. In fact, getting and using credit is part
More informationCredit Cards. The Language of Credit. Student Loans. Installment Loans 12/14/2016
Quick Response Explain how you think credit cards work. How much do you have to pay every month? What happens if you pay late? What kinds of fees are involved? Unit 4 - Good Debt, Bad Debt: Using Credit
More informationMoney Management Curriculum
Money Management Module 4: Credit Reports & Credit Scores Money Management Curriculum Module 4: Credit Reports & Credit Scores Project Team: Ruby Ward, Professor, Utah State University Trent Teegerstrom,
More informationRetirement Planning & Savings
For many people, retirement is one of the rewards for a long and successful career or a lifetime of hard work. Retirees do many things with their time: volunteer, work on hobbies or other interests that
More informationTeens. lesson seven. about credit
Teens lesson seven about credit advantages and disadvantages of credit advantages: Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient than writing checks
More informationKeeping Finances Under Control. How to Manage Debt so it Doesn t Manage You
Keeping Finances Under Control How to Manage Debt so it Doesn t Manage You Seminar Objectives What is DEBT? What are the types of debt? What is good debt? What is bad debt? What are the benefits and costs?
More informationPlanning Your Financial Future
Planning Your Financial Future Pennsylvania Association of Nurse Anesthetists Hershey, Pennsylvania April 9, 2005 Reasons for Investing True or False? Mature Americans can expect to spend more years caring
More informationYOU work hard to earn your money. Make it work for YOU!
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
More informationTeens. lesson seven. about credit
Teens lesson seven about credit advantages and disadvantages of credit advantages: Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient than writing checks
More informationTake control of your auto loan
Take control of your auto loan A step-by-step guide Consumer Financial Protection Bureau How can this guide help you? While many people shop around for the best deal they can get on their vehicle, not
More informationFINANCIAL FOUNDATIONS
FINANCIAL FOUNDATIONS A Financial Beginnings Financial Education Program CREDIT Presenter's Guide Presented by Our Mission Financial Beginnings empowers youth and adults to take control of their financial
More informationTRUST RESPECT CUSTOMIZED
Survey for Trainee Phone numbers(s) Date: / /20 TRUST RESPECT CUSTOMIZED 3 Reasons Why We Are Here: 1. Referral Base 2. Earn your business as clients 3. Expanding & Need Help Current Careers? What Do You
More informationOffice of Student Financial Management
September 2015 Office of Student Financial Management Kasia Palm: Director of Student Financial Management What is Credit? - The ability to obtain goods/services before payment based on the trust that
More informationYou re listening to rebuilding after a financial crisis. Hi, I m Niki, your host for today s Podcast.
Rebuilding After a Financial Crisis Podcast [Music plays] Nikki: You re listening to rebuilding after a financial crisis. Hi, I m Niki, your host for today s Podcast. There are many things in life that
More informationWorkbook 3. Borrowing Money
Workbook 3 Borrowing Money Copyright 2019 ABC Life Literacy Canada First published in 2011 by ABC Life Literacy Canada All rights reserved. ABC Life Literacy Canada gratefully thanks Founding Sponsor TD
More informationUNDERSTANDING YOUR CREDIT REPORT & YOUR CREDIT SCORE
UNDERSTANDING YOUR CREDIT REPORT & YOUR CREDIT SCORE Presented By: Tom Painter Chief Lending Officer WHAT IS A CREDIT SCORE? A credit score is a number that summarizes your credit risk, based on a snapshot
More informationThe Massachusetts Homeownership Collaborative
The Massachusetts Homeownership Collaborative HOMEBUYER COUNSELING CORE CURRICULUM Section Objectives: To emphasize the importance of budgeting in the homebuying process To assist participants in developing
More informationFINANCIAL INSTITUTIONS
SAVING WHY? to invest later Life like no one else is living now so you can live like no one else is living later in case of emergencies for big items to avoid debt to have more money later why don t people
More informationBorrowing. Evaluating the Benefits and Costs of Credit
Unit 9 Borrowing Lesson 9B: Evaluating the Benefits and Costs of Credit Rule 9: Pay on time and in full. While borrowing has both benefits and costs, at times it is an indication that something has gone
More informationTABLE OF CONTENTS. Healthier Black Elders Center
TABLE OF CONTENTS What is credit............................................1 The five C s of credit...................................... 2 Types of credit...........................................3
More informationYour Credit Score 35% 10%
Your Credit Score A credit score is a complex mathematical model that evaluates many types of information in a credit file and displays the results as a number that reflects your credit risk level, typically
More informationYOU ARE NOT ALONE Hello, my name is <name> and I m <title>.
So I know why you re here: I bet you ve got some questions about your money: what to do with it, how to make the most of it and how to hopefully get more of it. You ve got questions and the good news is
More information50% 21%of those INVESTING FOR YOU: 5 CRITICAL QUESTIONS FOR EVERY INVESTOR ... More. than
INVESTING FOR YOU: 5 CRITICAL QUESTIONS FOR EVERY INVESTOR People spend a lot of time worrying about finding the best investment. They pick a bond, mutual fund or stock and then second-guess themselves
More informationUnderstanding Credit Reports
Understanding Credit Reports Family Economics & Financial Education Take Charge of Your Finances Credit Report Detectives Meet Isabella, your new client: About to graduate from college In extreme debt
More informationI Index. Accountant, 140
I A Accountant, 140 advantages, 141 disadvantages, 141 ACH. See Automated Clearing House (ACH) Adjustable rate mortgage (ARM), 80 Annual fee payment, in credit card, 58 Appreciable assets, 6 ARM. See Adjustable
More informationToolkit 2 Borrowing Wisely
Toolkit 2 Borrowing Wisely Questions to Think About Before Borrowing Borrowing money is not necessarily a bad thing and done sensibly it can be a good investment for your future. Some good reasons to borrow
More informationFinancial Planning Basics
Chuck Brock, PhD, LUTCF, RFC Managing Partner Grace Capital Management Group, LLC Investment Advisor 13450 Parker Commons Blvd. Suite 101 239-481-5550 chuckb@gracecmg.com www.gracecmg.com Financial Planning
More informationChapter 26 11/9/2017 1
Chapter 26 11/9/2017 1 Average college students has 3 credit cards Also between $1500 & $2000 in debt Things to know if you re getting a credit card Who accepts it? What amount can you charge to meet your
More information1LIFE MASTERY FINANCIAL PLAN. This is the foundation of what we teach and we are excited you are here!
1LIFE MASTERY FINANCIAL PLAN Welcome to 1Life Mastery Financial Planning! This is the foundation of what we teach and we are excited you are here! We believe every successful aspect of your life requires
More informationHandbook HUECU. home buying. A resource guide to HUECU Home Buying Benefits HARVARD UNIVERSITY EMPLOYEES CREDIT UNION
HUECU HARVARD UNIVERSITY EMPLOYEES CREDIT UNION home buying Handbook A resource guide to HUECU Home Buying Benefits Benefits from HUECU...2 Understanding Your FICO Score...3 The HUECU Mortgage Process
More information2. To earn as much interest as possible, you should open a savings account that earns () interest Hide answers
1. Interest is? Hide answers A charge for lending money to a bank amount owed for borrowing money amount added into your savings when opening a n account a charge for accessing the money in your savings
More informationPersonal Financial Planning for Accountants
Personal Financial Planning for Accountants 3 rd Edition Distributed by The CPE Store www.cpestore.com, 1-800-910-2755 Chapter 1 What You Should Know About Financial Planning... 1 Learning Objectives...
More informationSteps to Successful Money Management
Steps to Successful Money Management How you spend your money today determines what you have 6 months from now, a year from now, 5 years from now, or in your lifetime. You control your financial destiny.
More informationINDEX. AMT (Alternative Minimum Tax), 20, 95
Weston_Index.qxd 7/20/05 12:23 PM Page 201 INDEX A adjustable-rate mortgages, 79-80 airline-affiliated credit cards, 64 alimony payments, renegotiating, 172 all-in-one loans (construction loans), 101 Alternative
More informationGLOSSARY OF FINANCIAL TERMS
GLOSSARY OF FINANCIAL TERMS Financial Terms AGI (Adjusted Gross Income) This is what the IRS considers your annual income BEFORE you ve subtracted personal exemptions, deductions, and credits. It can be
More informationEight Simple Steps for Balancing your Checkbook
If Transactions Don t Match Check for one of three errors: 1. The item was recorded incorrectly in your checkbook register, 2. The item paid or was credited to your account for the wrong amount, or 3.
More informationGREENPATH FINANCIAL WELLNESS SERIES
GREENPATH FINANCIAL WELLNESS SERIES UNDERSTANDING YOUR CREDIT REPORT & SCORE Empowering people to lead financially healthy lives. TABLE OF CONTENTS Understanding credit reports...2 What s in a credit
More informationDebt: one piece of the financial puzzle
Debt: one piece of the financial puzzle Financial security SAVINGS Debt: The single largest expense you ll pay in life is interest. You ll spend more money on interest than food, vacations, cars, school,
More informationEvaluating Jobs Based on Wage
Evaluating Jobs Based on Wage Objectives In this lesson you will: learn how to evaluate a job based on wages learn about income, expenses, and net cash flow calculate your acceptable wage range based on
More informationFinance 197. Simple One-time Interest
Finance 197 Finance We have to work with money every day. While balancing your checkbook or calculating your monthly expenditures on espresso requires only arithmetic, when we start saving, planning for
More informationFor additional state standards please refer to your Department of Education.
Alabama Alaska Arizona Colorado Georgia Illinois Iowa Kansas Minnesota Missouri Nevada North Dakota Oklahoma Oregon Tennessee Washington Wisconsin State K-2 3-6 Middle School High School Alabama Alaska
More information