1. Per$onal Financial Literacy 101 MR. KNIGHT HRMS

2. Financial Literacy – the ability to understand how money works in the world. How someone makes it, manages it, and invests it. Financial Literacy leads to better decisions about money and more money in the long-run. What is Financial Literacy?

3. Budget – a written record of income and expenses in a specific time period. Budgets usually run on a monthly basis. Income – the money you bring home from your job, chores, or other form of payment. What is a Budget?

4. Expenses – the money you spend on goods and services. Expenses are divided into 2 categories: Fixed Expenses – expenses that cost the same amount every month. Examples = mortgage payment, car insurance, cable bill, etc. Variable Expenses – expenses that change every month. Examples = entertainment, dining out, gasoline, etc.

5. Bank Accounts Savings Account – a safe place to put your money to gain interest. Savings accounts can be opened with a parent signature and $100.00. THIS ONE IS FOR YOU NOW!! Checking Account – an account where you can access your money quickly. A checking account is usually connected to a debit card that can be swiped for every day purchases.

6. Credit Cards: Used as a form of “pay later” payment option.Benefits: Helps build credit history. Builds financial management skills. Provides emergency protection. Makes big purchases more convenient. Credit v. Debit Cards Debit Cards Used as a form of “pay now” payment option.Benefits: Convenient way to pay for “every day purchases. No cash needed. Can not spend more than you have.

7. Limit yourself to one card. Make your payments on time, and try to pay more than the minimum amount. Begin with and keep a low credit limit — one you can easily pay off (try $250 or $500). Know your credit limit and NEVER go over. If you can eat it, wear it, or drink it, don’t charge it! If you can eat it, wear it, or drink it, don’t charge it! Think before you charge. Can I pay this off next month? CREDIT CARD TIPS

8. What’s a Credit Score? Credit Score Credit Score – a number assigned to a person that indicates to lenders their ability to repay a loan. Why is your credit score important?: Shows banks and other lenders of money that you can be trusted to pay your loan back. Easier to get loans for college, cars, and homes. Lower interest rates on your credit cards and loans. Employers also check credit scores of potential employees before hiring. What is a “good” credit score?: 700 or above is considered a good credit score.

9. Click for Credit Score Explained

10. Student Loans: - a loan taken out by a student to pay for educational expenses such as college tuition, books and materials, and college housing. Student Loans & Other Loans: Mortgage Mortgage : -a loan to finance the purchase of a home. -can be 15 or 30 years long. -has a fixed interest rate.

11. A LITTLE SAVINGS ADD UP… ITEM:ANNUAL COST:ALTERNATIVE:ANNUAL COST: One Cup of coffee daily at a Coffee shop ($3/day) $1,095 Gourmet coffee brewed at home $176 One CD weekly ($12.99/wk) $ 675 Download individual songs you like ($1) $375 Pizza delivery once a week ($10/wk) $ 520 Gourmet frozen pizza at the grocery ($5) $260 Eating lunch out 5 days a week ($5/day) $1,250 Bring your lunch to work 5 days a week ($1.50 per lunch) $375 Total Annual Savings = $2,354!