1. Keys to Financial Success
WELCOME AND INTRODUCTIONS

2. Benefits of Managing Money
More free time  Do things you enjoy Less stress  Better health Achieve goals  Satisfaction Greater control  Peace of mind
ASK PARTICIPANTS:
What other benefits come to mind for you?
The benefits are often the easiest part to identify. Do we all agree that managing your money is very important? (It is important to gain agreement here because you can refer back to that agreement if participants seem daunted by the process covered later in the seminar)
“I feel better when my money is under control and I think you will too.”

3. CREATE A SPENDING PLAN Amanda
Balance Income and Expenses - This is often the most difficult step in the process. It’s where you find out if you have extra money at the end of the month or if you have extra month at the end of your money…
*It is important for everyone to have a spending plan, but becomes even more important for someone who is having trouble meeting savings goals or monthly bills. You don’t have to have a lot of money for a budget to really help your financial situation.
Remember: Savings is an expense category. As you get expenses under control, and as income increases, put more money into savings!
Make adjustments as necessary in order to balance income and expenses.
Review Plan - Track Expenses, Find Leaks and Revise. Performing a critical Wants vs. Needs assessment at this stage is important.
ASK PARTICIPANTS: What are some examples of changes you can make if expenses exceed income?
HANDOUT 4: Money Saving Tips from UW Credit Union – here is a list of suggestions from members we’ve worked with in the past. (point out a few, but do not read through them all). These are some ideas you can revisit if things don’t balance in Step 3.
Manage System - Determine which method you will use to manage your system and stick to your plan. Set aside a time every two weeks or every month to sit down and review your plan. This will ensure it still fits with your goals and allow you to track progress toward those goals.
TELL PARTICIPANTS:
As you begin using your plan, be flexible. Make adjustments as you go along. It could take several attempts to determine the categories and amounts that work for your particular situation. Don’t give up!
The key to a successful spending plan is being disciplined in establishing the plan and sticking to it. It will take behavior changes and may be a little uncomfortable at first, but you can take small steps and create lasting change.

4. Five Steps To a Successful Spending Plan
List all income sources
Determine monthly expenses
Balance income & expenses
Review & Adjust to meet goals
Manage your system
Amanda - Keeping your goals in mind, we’ll move on now to the process of creating your spending plan so you can work toward achieving those goals.
HANDOUT 3: Monthly Spending Plan - If this looks a little overwhelming, don’t worry. There may be a lot of boxes, but the more detailed you are with categorizing expenses, the more successful you’ll be in making your money work for you and achieving your goals.
ASK PARTICIPANTS: Why do we call it a spending plan vs. a budget?
-Budget can seem restrictive and often people have negative associations with the word.
-A spending plan shows you how you will spend your money. And we can all agree that you must spend in order to live. The great thing is, we’re not asking you to change at first – just track what you’re currently doing.
TELL PARTICIPANTS: Let’s talk about the five steps to creating a successful spending plan. Most of our time together will be focused on these steps.
Just as a movie producer wouldn’t begin filming without a script, you’re more likely to achieve your financial goals if you have a solid plan in place.
Income Sources - May come from a variety of sources; important to include them all.
Expenses - Tracking these accurately and diligently is important to the success of your plan. What are some examples of the different types of expenses we have listed here?
*A good rule of thumb is not to let miscellaneous expenses exceed 10% of your income. If on your first try it’s more than that, you may want to go back and look for new expense categories to create.
ASK PARTICIPANTS: Where would you categorize the following expenses:
-haircuts, oil changes, gifts, car repairs?

6. Budgeting Challenge! Track your spending for the next two weeks
Develop a spending plan
Amanda

7. Set SMART Financial Goals
Specific
Measurable
Action-Oriented
Realistic
Time-Oriented
TELL PARTICIPANTS:
If you simply say, “I need to pay off my credit card debt,” you’re less likely to reach your goal than if you use the SMART method and say, “I will pay off my credit card debt of $1,200 within 12 months by taking lunch to work instead of eating out, and drinking regular coffee instead of expensive latte daily. ”
You can use this method for any type of goal, not just financial goals.
NOTE TO FINANCIAL MENTOR:
Use white board, chalkboard, or flipchart to write this example: “Goal: Save $1,200 in one year to pay off credit card debt.”
Ask audience: “How much is that a month?” (write $100/mo)
Ask audience: “How much is that a week?” (write $25/week)
Ask audience: “How much is that a day?” (write $3.57/day)
Tell audience: For many people, it seems a lot easier to save $3.57 a day than $1,200 in a year, even though the dollar amount is about the same. The key is to break down your goal into the smallest piece possible, and use the SMART method.

8. Resources UW Credit Union Website uwcu.org--
Show Balance Link

9. CREDIT BASICS Amanda – 2 min TELL PARTICIPANTS:
Not many people talk about the emotional aspects of money, but money is emotional. You usually feel something when you make decisions about money. And, there can be sacrifices involved in creating your spending plan that you’ll feel as well. We want to give you the tools to effective manage your money so you can focus on the things that are truly important to you and feel great about your finances.
Once we go through the presentation, you’ll have a plan for experiencing more of these benefits.
ASK PARTICIPANTS:
What other benefits come to mind for you?
The benefits are often the easiest part to identify. Do we all agree that managing your money is very important? (It is important to gain agreement here because you can refer back to that agreement if participants seem daunted by the process covered later in the seminar)
“I feel better when my money is under control and I think you will too.”

10. What’s in a Credit Report
What’s in a Credit Report? *Skills for lifelong learning, information literacy
Identifying Information
Name, Social Security number, date of birth, address
Creditors and Payment History
Positive and negative
Bankruptcies, Judgments, Liens, Lawsuits
Inquiries You Initiated
Loan and credit applications (excluding credit card solicitations)
Employment Information
Denise – 5 min
TELL PARTICIPANTS:
One of the most important financial documents about you is your credit report, which is a record of your bill-paying history.
Creditors and payment history – basic account information, credit limit, current balance, highest balance, payment history and length of time account has been established are all factors.
Positive information remains on your credit report for 10 years after date of last activity.
- Most negative information remains on your credit report for 7 years after date of last activity; bankruptcies can stay up to ten years. Note to Mentor: Specific questions about bankruptcy should be referred to an attorney.

11. What Makes Up Your Credit Score?
Denise– 2 minutes Discuss each category of the pie chart.
Amounts Owed:
-Have discussion about utilization rate/debt capacity ratio and how it should be kept below 50%, ideally below 30%.
Source: myfico.com
SCORE HIGH: USING CREDIT WISELY

12. What Does Your Credit Score Mean to Others?
Financial Institutions
Difference in interest rates, terms and amounts approved
Employers
Landlords
Utilities
Cell phones, electric, etc.
Insurance Companies
Denise – 2 minutes
Know who can look at your credit report, which is a record of your bill-paying history.
By law, potential employers must tell you if they’re going to check your credit report. Be prepared—maintain a good bill-paying history so all these individuals and entities grant you the credit you want and deserve.
Employment credit checks and pre-approval offers you receive as a result of a credit check do NOT negatively impact your credit score.
Credit score is a good indication of how you will repay new obligations based on your past actions
*The better your credit score, the more you will save on accounts and services with these entities.

13. Build Your Credit History
Pay all bills on time
Limit the number of open credit lines
Keep balances low
Keep credit card utilization to less than 30%
Be selective about what you apply for
Have a “mix” of credit (credit cards, mortgage, auto loans, etc.)
Cheryl – 3 minutes
By using credit wisely, you build a good credit history which will follow and benefit you through your financial life.
If you have a poor credit history, you may not get loan offers, you may not get job offers, you may not get an apartment, and you may be denied insurance. Or, you may pay a lot more than someone with a clean history.

14. Reviewing your Credit Report
Retrieve your free credit report:
- annualcreditreport.com
Check your credit score for free:
- creditkarma.com
You can retrieve one report from each credit bureau annually
Trans Union, Experian & Equifax
Cheryl – 2 minutes
A recent federal reserve study found that over 75% of credit reports have errors on them due to errors and accounts that do not belong to the consumer.
- is the government sanctioned website for checking your credit report. You will not have to pay to review the information on the report, and they don’t sell your personal information, so you won’t receive any junkmail or spam as a result of signing into the website.
-Beware Consumers are enrolled in a monthly monitoring service that must be cancelled
If you don’t have a credit history, we would recommend looking into establishing some type of credit account. Once you’ve done so, then you can go through this process of pulling your report.

15. Student Loans
Where do you find out how much you have in student loans?
WINS
National Student Loan Database
Servicing company such as Great Lakes
Credit Report
Denise

16. Student Loans When does repayment begin?
Stafford: 6 months after graduation or dropping below a half-time status
Perkins: 9 months after graduation or dropping below a half-time status
PLUS: days after disbursement, unless otherwise requested
Private: Depends on lender – usually same as Stafford
Denise

17. Student Loans Interest Payments
For Federal loans, payments can be made at anytime without penalty
Make interest payments whenever you can
Unpaid interest is capitalized, or added to the principal balance, at the end of the grace period.
Sending even $20 each month will save you $$ over the life of your loan
For private loans, check with the lender.
Denise

18. Review Track your spending Develop a spending plan
Check your credit report
Start establishing positive credit history
Review your student loans
Schedule an appointment with UW Credit Union for a free Credit Consultation
Denise

19. Senior Financial Specialist
Questions?
Thank you for coming today!
Denise Kaminski
Senior Financial Specialist
x 1601
Denise – 2 minutes
Thank you so much for joining us today. We have our business cards located at the back of the room, please feel free to take a card with you .
Please let us know if you have any questions.
Stop at our UW Whitewater
location University Center
Also visit us on the web at uwcu.org