2. “Get Your Money Right: “Becoming Financially Stable in a Troubled Economy” CPCC TRiO Student Support Services Financial Literacy Series Workshop

3. Five Steps to Financial Stability Establishing and Maintaining a Savings and Checking Account The Advantages/Disadvantages of Using Debit Cards The Advantages/Disadvantages of Using Credit Cards Know Your Credit Score What Factors Impact Your Credit Score

4. Establishing and Maintaining a Savings and Checking Account What is the difference between a savings and a checking account? What is needed to open an account?

5. Checking Accounts A checking account is used to manage money in the short term. Deposits, bill payments and debit card purchases are connected to a checking account.

6. Checking Accounts (cont.) Most companies require employees to have a checking account for direct deposit of wages and payment. Checking accounts are an easy way to manage your personal finances.

7. Savings Accounts Savings accounts are for long term use. It is recommended that 10% of all income be deposited into a savings account. Savings accounts build interest over time that increases the amount of money you have in the bank.

8. Savings Accounts (cont.) Keeping a savings account that puts at least two months pay in the bank for a rainy day can be the difference between financial success and disaster.

9. The Advantages and Disadvantages of Using Debit Cards Typically, a debit card is issued with a checking account and can be used like a Visa or Mastercard. With a debit card, charges are automatically deducted from your checking account.

10. The Advantages/Disadvantages of Using a Credit Card Credit cards are based on the principle of “loaning” money to a credit worthy person for repayment at a later time with interest. Knowing the ins and outs of credit cards, annual fees, late charges and overage fees can be the difference between a good credit score and a low credit score.

11. Know Your Credit Score A FICO credit score can range from 300 to 850. FICO score range 700 and higher -- Excellent or Very Good credit. 680 to 699 – Good 620 to 679 – OK 580 to 619 – Borderline 500 to 580– Poor 499 and below – Bad

12. Know Your Credit Score You can order a free copy of your credit report from a number of sources. Try this site to get a free report from all three credit bureaus: www.annualcreditreport.com

13. What Factors Impact Your Credit Score Payment history Do you make payments on time? Late payments lower your score Amounts owed What is your debt to income ratio? Length of credit history New credit Types of credit used Credit Inquiries

14. Summary Establishing and Maintaining a Savings and Checking Account The Advantages/Disadvantages of Using Debit Cards The Advantages/Disadvantages of Using Credit Cards Know Your Credit Score What Factors Impact Your Credit Score

15. Learning Checklist Questions Name one factor that affects your credit score. What is the difference between a savings and a checking account? What is the difference between a debit and a credit card?

16. Resources for Improving Your Finances www.Americasaves.org www.annualcreditreport.com Suburban Dollar http://www.suburbandollar.com/2009/06/ 09/online-resources-improving-financial- health/ United Family Services, Consumer Credit Counseling Free credit repair services

17. Acknowledgements Developed by Annette Teasdell, Summer 2009 Counselor, Student Support Services, as part of the Financial Literacy Workshop Series. Information used in this presentation was taken in part from the resources for improving your finances on the previous page.

18. Thanks for Listening!

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