Money A presentation by Student Fiscal Services University of Washington

Education Pays Off Data from the Census Bureau show that people with higher education levels earn more money over a lifetime… Less than high school High school Some college Associate’s Bachelor’s Master’s Doctoral Professional  $1.0m  $1.2m  $1.5m  $1.6m  $2.1m  $2.5m  $3.4m  $4.4m

Value of $1 If you save $1 per day from your 18 th birthday until your 65 th birthday and the money earns 2% in a savings account, how much will you have saved? $28,038.27

What is a Budget? Not running out of money before you run out of month

NEEDS VS. WANTS FOOD STEAK VS. HAMBURGERS SHELTER CLOTHING APARTMENTS VS. DORMITORY NIKE VS. PAYLESS

How do you decide how to spend or save your money?

you If your money is going toward something you value, then you will usually feel a sense of satisfaction and accomplishment.

you But if your money is going toward something you do not value, then you will usually experience a sense of frustration and failure.

Your Credit Report Your credit report is similar to a transcript and will reflect your credit history A credit rating/score is a numerical value assigned to you based on your credit history Low credit scores can affect your ability to buy a home or car, or even get a cell phone

Your Credit Report Could Contain Personal Information Full name & other names used Addresses for the last 7 years Employer name Social security number Home phone number Inquiries Tradelines creditor acct/date open/high bal/pymt terms/curr bal/ status/pastdue Charge offs Court-appointed restitution Unpaid child support Bankruptcy And more Tax liens Unpaid parking tickets or moving violations Evictions Car repossessions Bad checks

FRAUD Identity theft –Use of another person’s name and SSN to obtain new credit Account take-over –Use of person’s existing accounts Application fraud –Fictitious identity to obtain new credit

Credit Cards Good to have in the event of an emergency Establish your own credit history Offer insurance and replacement incentives for purchases Safer than carrying large amounts of cash if your wallet is ever stolen Many have air miles or other reward programs There are advantages…. But beware…

Beware Of Fine Print Membership Fees: $59.00 annual fee One-time processing fee: $49.00 plus Annual Percentage Rate: 23.99% Grace Period: days (if previous month’s balance was paid in full) Fee for cash advance: 5% (min $3) Returned check fee: $25.00 Late Payment Fee: $25.00 Over-the-Credit-Limit: $25.00

TRAPS! Credit Cards Payday Loans “Floating” Checks – NSF –Other Fees Emergency Loans –Second Mortgage –Family or Friends –U.W.

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