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A Manage Your Money WISELY Welcome to MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP Tracking your money © 2011.

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Presentation on theme: "A Manage Your Money WISELY Welcome to MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP Tracking your money © 2011."— Presentation transcript:

1 a Manage Your Money WISELY Welcome to MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP Tracking your money © 2011

2 Money Management Seminar MoneyWI$E A joint financial education project of Consumer Action and Capital One. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

3 The Money Management course will give you... An understanding of what good money management is and why it is important Skills and ideas to help you better manage your money MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

4 Money Management Session One (Two hours) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

5 Course objectives This seminar will help you understand: How to prepare a budget How to balance your accounts How to cut back on expenses Ideas for increasing your income How to save more How to set financial goals MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

6 In participants folders Manage Your Money Wisely (brochure) Checkbook Balancing Activity (worksheet) Three Sample Profiles (class exercise) Financial Goals Worksheets Take-home Budget Worksheet Money Management Seminar Evaluation Form MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

7 Money Management What is money management: Knowing how to save, spend and invest your money so that you and your family can successfully work toward your financial goals MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

8 Money Management activities What activities go with money management? Tracking your spending. Making a budget. Balancing your checkbook. Using credit wisely. Setting long- and short-term goals. Earmarking money for savings. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

9 Be a wise money manager Wise money management can help you: Pay your bills on time. Make it through times when you are not working. Save money. Plan for short- and long-term goals. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

10 Budgeting What is a budget? A spending plan to help you forecast and control your expenses. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

11 Making a budget How do you make a budget? You need to figure out how much you spend each month and compare that amount to your take-home pay. Track your spending for a set period of time, like a month, in order to figure out how much money you spend. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

12 Tracking your spending What are some ways to track how much money you are spending each day, each week, or each month? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

13 Ways to track spending Keep a notebook handy and write down everything you buy and every bill you pay. Keep all your receipts in an envelope or shoe box. Create a computer file for entering your income and expenses. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

14 Your budget What are some of the things that should be included in your budget? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

15 Your budget may include: Housing Food (groceries, restaurants, snacks) Automobile (payments, gas, repairs, insurance, commuting expenses) Clothing & personal grooming Utilities (electric, gas, water, cable) Credit card payments MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

16 Your budget may include: Student loan payments Child care Insurance payments Entertainment (movies, concerts, books) Medical bills Vacations Income taxes MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

17 Making your budget work Does your income cover your expenses? If not, you need to figure out how to spend less or earn more. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

18 Bank accounts A bank account is an important money management tool. How can a bank account help you manage your money wisely? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

19 Bank accounts A bank account helps you keep track of your spending and how much money you have available. Use your checkbook register to write down and deduct: Every check you write Every ATM or debit card transaction or purchase Any bank fees you pay MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

20 Benefits of a bank account: Money is safe. Each account is insured. Canceled checks prove you paid a bill. Having a bank account can save you money. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

21 Lets take a break Please come back in 15 minutes. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

22 Lets balance a sample checkbook Take out the checkbook balancing activity from your folders: Review the sample bank statement. Balance the sample checkbook register. Balance the sample account using the checkbook balancing worksheet. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

23 Cutting back on expenses What are some ways to cut back on expenses? MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

24 Ideas to help you cut back Shop around and compare prices. Make a shopping list and stick to it. Prepare meals and bag lunches at home. Dont shop recreationallyyou could be tempted to buy things you dont need MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

25 More ways to cut back Use the public library for books, magazines, videos. Join a buying co-op. Lower your thermostat when away or sleeping. Walk instead of drive. Look for a free bank account. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

26 Increase your income Ways to earn extra money: Part-time or weekend job. Take advantage of income tax programs, such as the Earned Income Tax Credit. Start a home-based business. Rent out a room. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

27 Setting financial goals Short-term goal (1-2 years) buying a new car, getting a degree or planning a wedding. Long-term goal (5-10 years or more) owning a home, starting a family, paying for college or retiring. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

28 Working toward your goals A savings plan allows you to work steadily toward your financial goals. The take-home Financial Goals Worksheet will help you figure out a savings plan that works with your particular goals. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

29 Take-home activity The Financial Goals Worksheet and Chart can be found in each of your folders. Complete the worksheets at home. Bring the completed worksheet back for the second session. See you next time! MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

30 Money Management Session Two (Two hours) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

31 Money Management Welcome back! In this session we will focus on saving, investing, insurance, credit and debt MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

32 Saving & investing Lets review your Financial Goals Worksheet. Saving and investing can help you to reach your short-term and long- term goals. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

33 How to save more Pay yourself first by scheduling automatic deposits on pay day that go into your savings account or IRA (individual retirement account) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

34 Retirement accounts Does your employer offer a retirement savings plan? Employer-sponsored plans can help your retirement savings grow faster because you do not have to pay taxes on the earnings until you are eligible to withdraw from the account, at age 59 1/2. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

35 Saving - CDs A CD (certificate of deposit) is a safe way to save. Like savings accounts, CDs are insured by the government. CDs often earn a higher interest rate than savings accounts do. However, CDs require that you leave your money for a set period of time, such as six months or a year. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

36 Investing An investment is the use of money to create more money Stocks, bonds and mutual funds are all types of investments Consider an investment advisor. Be cautiousinvestments are not government-insured and you could lose your money. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

37 Insurance What are the benefits of having insurance? Insurance protects you against financial ruin as a result of an unforeseen catastrophe like fire, theft or medical emergency. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

38 Kinds of insurance What are the most important types of insurance for you and your family? Automobile insurance Health insurance Homeowners or renters insurance Life insurance MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

39 Saving money on insurance Always ask if you are eligible for any insurance discounts. Internet sites can help you compare premiums: Insure.com (www.insure.com)www.insure.com InsWeb (www.insweb.com)www.insweb.com Quick Quote (www.quickquote.com)www.quickquote.com Lower Rate Quotes (www.lowerratequotes.com)www.lowerratequotes.com MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

40 Credit Good credit can help you: Rent an apartment Purchase a home Get a job Set up phone and power service. Buy big-ticket items without cash Borrow money Obtain a credit card Rent a car MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

41 To build good credit... Pay your bills on time. If you carry a balance, pay as much as you can each month. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

42 Rebuilding credit If you have damaged your credit, try applying for credit with local businesses or for a secured credit card (a bank credit card backed by money you deposit in a bank account.) MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

43 Home equity loans Home equity loans can be used to consolidate debt. Be very careful before taking out a loan secured by your home (a home equity loan or line of credit). If you fail to make a payment, you risk losing your home. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

44 Good credit Try to avoid these expensive credit options: Pawn shops, pay day loans, and car title pawn shops Offers to buy things on credit with deferred interest Credit cards with rates higher than the national average (check for average)www.bankrate.com MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

45 Overwhelmed by debt? The National Foundation for Consumer Credit - (800) or can refer you to a credit counselor in your area. Low- or no-cost services help you establish a repayment plan.www.nfcc.org Debtors Anonymous (781) ; MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

46 Lets take a break Please come back in 15 minutes. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

47 Money management activity Break into small groups. Review sample profiles. Discuss how the people in the sample profile can get back on track. Select a spokesperson from each group to present your ideas. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

48 Take-home budget worksheet In your folder youll find a budget worksheet. Track your spending for a while and then complete this worksheet at home. Keep yourself focused on creative ways to save money. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

49 Questions? Lets try to answer some of your questions about money management. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

50 Now you can grade us! Please fill out the seminar evaluation form and leave it with me on your way out. MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

51 Congratulations! Congratulations on completing the MoneyWI$E Money Management seminar! Youve taken a big step toward wise money management. Put what youve learned into practiceyou can do it! MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

52 MoneyWI$E A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP Visit money-wise.org for additional information and to access free financial education materials


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