2Spending StylesHow a person spends money says a lot about the person’s values and goals.Two basic types of spending:Present OrientedFuture Oriented
3Present Oriented People buy what they want sooner than later. They do less finical planning and saving.Do not consider how there spending affects the family.Can easily get into debt.
4Future Oriented People who focus more on their future and savings. Make purchases with care.Prepared when something pops up.
5Future OrientedMay focus too much on not spending money, or take advantage of people willing to pay.May be nervous to spend money.
6Spending Styles Very few people are one style or the other. Most people are a mixture of both styles with one dominate.
7Checking Accounts Safer than keeping cash on you. Deposit money in to an account at the bank or credit union.Ready for you when you need it.Can be taken out in person or by writing a check.
8Checking Accounts cont. Checks transfer money from an account to another person.Some people write checks for money they do not have.When this happens the check bounces.Many places have charges for bounced checks.
9Checking Accounts cont. Electronic funds transfer: Moves money from one account to another electronically.Good for putting money into savingsCommon for transferring money to savings.
11ATM’s Automatic teller machines Allows you to check balances, withdraw, and even deposit money.Some are open 24 hours a day.Must have an ATM or Debit card and a pin to use them.
12Debit CardsAnother way to purchase something using the money you have in your checking account.Money is deducted electronically.Be sure to keep tack of the money you are spending.
13Online BankingCan see your account with a computer and internet access.Also can be done on some phones.Can pay bills or transfer money.
14Online BankingSome banks have no physical bank.Very convenient.
15Credit Burrowing someone else’s money and paying it back later. Good for large purchases.HouseCar
16Credit Since credit is rented money, there is a fee with it. Interest: What you pay when you use someone else’s money.After adding interest the cost of what you buy goes up.
17Credit Companies keep tract of whether or not people pay their debit. Those who pay it well and use it properly earn a good credit rating.Credit ratings go down when people do not pay their bills or pay them late.
18Credit Everyone is entitled to one free credit report each year. Lending companies can look at anyone's credit.Lending companies look at your credit when deciding whether or not to loan to someone.
19Types of Credit Lenders make money from giving out loans. The larger the amount of money and the longer the loan, the more money they make.
20Credit CardsSimilar to debit cards, but instead you are using money that belongs to the credit card company.Most credit cards have a limit.Amount available to be spent.
21Credit CardsMake sure you are aware of the interest rates and due dates of your bill.Some cards charge interest right away others only charge interest if you do not pay the whole balance.
22LoansAgreement to borrow money and pay back more than the borrowed amount.Banks and credit unions offer lower interest rates.Be aware of the loan agreement before you sign it.
23Installment BuyingOffered through businesses that sell items like furniture and appliances.Typically more costly than loans.Make a down paymentThen pay monthly payments and interest.
24Use Credit CarefullyEasy way to get what you want. Also easy to get into debt problems.Make sure that you can pay off whatever you buy with credit.
25Savings Should always be a goal. Easier for Future-oriented people. Money in a savings account earns interest.Good idea to keep 3-6 months of you salary in savings.