1. Making Money Work For You
Money Management
Making Money Work For You

2. Objectives Review & learn key financial and economic literacy concepts
Understand the importance of budgeting in order to control spending and meet expenses
Teach students how to effectively utilize cash, debit cards, and credit cards to purchase goods and services

3. Basics of Banking Services
Bank: A financial institution that handles money, including keeping it for saving or commercial purposes, and exchanging and investing, and supplying it for loans.
Credit Union: A non-profit financial institution insured by NCUA that is owned and operated entirely by its members. Credit unions provide financial services for their members, including savings and lending.
Savings Institution: A financial institution that accepts deposits from individuals, makes homes mortgage loans, and pay dividends.

4. Basics of Banking Services
CHARACTERISTIC
BANK, CREDIT UNION OR SAVINGS INSTITUTION?
Insured by the National Credit Union Administration (NCUA)
Must have majority of their assets in housing –related loans
Governed by federal & state laws and regulations
Similar to a bank
Members only
Make loans, pay checks & accepts deposits
Created to promote homeownership

5. Benefits of Using Financial Institutions
Safety
Convenience
Money Saver
Security
Financial Future

6. Savings Accounts Why should you save your money?
What are the benefits of saving & savings accounts?
Should you save for something that you want or need?
What are some reasons why you might withdraw money from a savings account?

7. Paying Yourself First-Savings Account
Key Points
Allows you to deposit, withdraw, and earn interest on your money.
Allows you to put aside for a future goal or emergency fund.
Limits how often you can take your money out.

8. Checking Accounts Why would you open a checking account?
What sorts of things can you write a check for?
What are some reasons that someone might want to pay by check rather than using cash?

9. Check It Out – Checking Accounts
A checking account is a great tool for managing your money day-to-day
A checking account allows you to put money in to make a deposit or take money out to make a withdrawal
You can get cash whenever you need it
Allow you to have a record of how much you spend and where.

10. Your Budget – Making Money Matter
Three Basic Steps
Money Management Scenarios & Worksheet

11. NEEDS – WANTS = NET INCOME to SAVINGS
Monthly Budget
NEEDS – WANTS = NET INCOME to SAVINGS

12. ATM & Debit Cards Automated Teller Machine (ATM)
ATMs are safe and convenient ways to manage your money
A PIN is your password to using an ATM.
Do not tell anyone your PIN number
Stay alert and aware while using an ATM.
A debit card is not a credit card.
Be AWARE of the fees that are associated with your debit card.

13. Credit Cards Credit CARD Act of 2009
President Obama signed the Credit CARD Act of 2009 into law May 22, 2009, following passage days earlier in the Senate and the House.
Limited credit to young adults: Credit card issuers are banned from issuing credit cards to anyone under 21, unless they have adult co-signers on the accounts or can show proof they have enough income to repay the card debt. Credit card companies must stay at least 1,000 feet from college campuses if they are offering free pizza or other gifts to entice students to apply for credit cards.
Read more: Compare credit cards here - CreditCards.com

14. Credit Cards??? Is given to you on your credit worthiness.
Must pay interest on any unpaid balances .
May allow you to buy something today rather than having to wait. But remember, you always have to pay the money back!!!
The items you purchase are typically insured.
If you pay your bills on time and in full, you build a good credit history and increase your ability to borrow in the future.
Be aware of the fees and interest rates associated with the credit card.
The card can be your best friend or your worst nightmare.

15. Credit – The Benefits & Risks
Option of buying something today and paying the money back over time, rather than having to wait
Overdoing it; borrowing more than you can afford to pay
Flexibility to act on major purchases and life opportunities that may require more money than you have on h and right now
If you don’t make your payments on time, you will damage your credit history
Easier to rent an apartment and to get service from local utility companies
Having to pay additional interest and fees
Easier to buy what you want, when you want
Difficulty getting loans in the future

16. Good Credit vs. Bad Credit
Paying at least the minimum required
Paying on time
Never missing a payment
Staying within your credit limit
Paying too little
Paying too late
Missing payments
Going over your credit limit
Having too much debt
Result
Easier to borrow money
No additional penalty fees
More money you’ll keep in your pocket
Good deal on major purchases & cell phone
Decent apartment
Difficult to borrow money
You lose money on late fees
More money spent on fees and interest
Not getting the job you want
Higher rates and fees on major purchases & cell phone

17. Your Credit
Credit Report Credit Score

18. FICO Score
A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant's credit risk and whether to extend a loan. 
FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.

19. What Determines your FICO Score?

20. Tips for improving YOUR Score
Monitor your credit report
Consistently pay your bills on time
Keep your balances low (no more than 30%, ideally 10%)
Limit your amount of new credit
Do not close out old accounts
Be cautious about consolidating balances and moving credit around

21. General Tips for Financial Success
Set a monthly budget
Always pay on time
Never borrow more than 20% of your yearly net income.
Keep your credit card debt low enough so that your required payments are no more than 10% of your monthly income or avoid credit cards if possible.
Invest your earnings
Budget and manage your cash
Live within your means