Carroll County Advisement Program FINANCIAL LITERACY *IDENTITY THEFT *MONEY MANAGEMENT

What is Financial Literacy?  Financial Literacy is the ability to understand how money works in the world. It is how someone:  earns money  manages money  invests money  donates money to help others  The purpose of this lesson is to inform you about money management and theft identity so that you can make the best financial decisions today and in the future.

Money Management  Money management refers to the day-to-day financial activities associated with using limited income to satisfy your unlimited needs and wants.  It involves getting the most for your money through careful planning, spending, and saving.  Planning ahead and deciding what is important will help you have money for things you enjoy.  If you set goals, make wise decisions, buy wisely, and live within your income, you will be a successful money manager.

Tips for Managing Your Money  Open a checking account  Create a budget  Set financial goals  Live within your income  Develop a savings plan  Build a good credit history

A Checking Account – Essential for Handling Money  Checking accounts are safe, secure and easy to access and manage.  You can write a check, use an ATM card to get cash or use a debit card to make purchases.  Shop around for a checking account that best meets your needs. Different banks have different policies for account requirements, charges and fees, such as: Minimum balances Monthly fees ATM fees Insufficient fund charges

Why Do You Need a Budget?  A written budget is essential for successful money management.  A budget should provide needed information on your spending and savings plan.  A budget will help you:  Live within your income  Achieve your financial goals  Buy wisely  Avoid credit problems  Plan for financial emergencies

Creating a Budget  Set Financial Goals. Write down long and short-term goals to help you decide how to spend and save your money.  Plan Budget Categories  Savings – set aside savings as the first part of the budget  Fixed Expenses – costs that occur on a regular basis and are the same amount each time. (Rent, mortgage payments)  Variable Expenses – living costs that differ each time  Maintain Financial Records. Record your income and expenses to find out if your plan is working.  Evaluate Your Budget. Make changes in your budget where necessary.

Tips for Saving Money  Save early, save often. If you want to be wealthy, the way to get there is to invest in yourself. The earlier you start saving, the more money you’ll have later in life.  Focus on the prize. Setting short-term and long-term goals can inspire you to keep track of your savings and make it easier to spend your money wisely.  Plan ahead. Reserve part of your savings for emergencies.  Don’t count on credit. Charging something you want but can’t afford can cost you much more in the long run.

Build a Good Credit History  Building a solid credit rating and maintaining a positive payment history will ensure your ability to get credit in the future.  Don’t spend money you don’t have.  Make your payments on time.  Open a credit card with a small credit line.  If you have a credit card, pay the balance off every month before interest can accrue.

Avoid an Identity Crisis!! Now that you know how to manage your money, make sure you take the steps to protect your identity!!

What is Identity Theft?  Identity Theft is when someone wrongfully steals and uses another person's information in a way that involves fraud, typically for financial gain.  Identity theft is the fastest growing crime, according to the Federal Trade Commission. Experts estimate that about 10 million people become victims each year. That means every minute, 19 people become new victims of identity fraud.  People between ages have the highest rates of ID theft.

Common Ways Identity Thieves Steal Your Information  Stolen Purses/Wallets  Stolen Driver’s License, Social Security card, ATM cards or Credit Cards  Documents or receipts in the trash  Phone or scams  Hacking unsecured computers and wireless networks

Protect Yourself from Identity Theft!!  Create Strong Passwords and Update them Frequently  Be Aware of What You Share  Keep Sensitive Personal and Financial Documents Secure  Protect Your Mobile Device  Check Your Credit Report  Don’t Fall for Phishing Scams *Phishing is the attempt to acquire sensitive information

If You Are a Victim of Identity Theft?  Close any accounts that you know have been tampered with or opened fraudulently.  Dispute any bills that show charges you did not authorize.  File a report with the local police department. This report is necessary to pursue a case with creditors.  Call one of the three major credit-reporting agencies (Experian, Equifax, and TransUnion). The agency will place a fraud alert on your account.

In Summary You will be a successful money manager if you:  Set goals  Make wise decisions  Live within your income  Save your money  Maintain good credit  Protect yourself from Identity Theft