1. PERSONAL FINANCES Project

2. In this project you will  Create and Manage a Personal Budget  Discuss the Pro’s and Con’s of a selected Credit Card  Research ways you can develop your Credit Fitness.  Research ways you can protect your identity

3. CREATING AND MANAGING A BUDGET: KNOW YOUR HABITS In the first slide you will discuss your buying habits by tracking your expenses to fully understand how you spend your money

4. Total Monthly Take-Home Income (minus taxes, health insurance, other payroll deductions, 401K) $ Household Expenses Rent or Mortgage $ Utilities (water, sewer, gas/electricity) $ Home/Cell Phone $ Groceries $ Other Household (Cable, etc.) $ Transportation Expenses Car Loan Payment $ Gas, Tolls, Parking, Other $ Car Insurance (set aside if paid annually or semi-annually) $ Other Expenses Pet (Food, Vet) $ Insurance/Co-pays, Prescriptions $ Fun (entertainment, dining out, move rental, etc.) $ Minus Total Expenses$ Total Monthly Surplus/Shortage$ I N THE SECOND SLIDE YOU WILL RESEARCH WAYS YOU CAN MANAGE A BUDGET : INCOME V EXPENSES

5. In the next slide you will discuss ways you can save money ITEMANNUAL COSTALTERNATIVEANNUAL COST One Cup of coffee daily at a Coffee shop ($3) $1,095 Gourmet coffee brewed at home $176 One CD weekly ($12.99) $ 675 Download individual songs you like ($1) $375 Pizza delivery once a week ($10) $ 520 Gourmet frozen pizza at the grocery ($5) $260 Eating lunch out 5 days a week ($5 per lunch) $1,250Bring your lunch to work 5 days a week ($1.50 per lunch) $375 Total Annual Savings of $2,354!

6. I N THE NEXT SLIDE YOU WILL RESEARCH THE BUYING OF A NEW CAR VS. USED CAR  New 2009 Honda Accord EX  Cost: $24,000  Payment: $476  Insurance: $ 78 Monthly difference: $176 Annual difference: $2,112 Used 2003 Honda Accord EX Cost: $14,483 Payment: $305 Insurance: $ 73 Car Cost/Payment Source: www.edmunds.com Based on financing for 60 months. New car interest rate of 7.11%; Used car interest rate of 7.35%. Car Insurance Cost Source: www.geico.com Insurance rates for a 25-year-old single male with a clean driving record.www.edmunds.comwww.geico.com

7. INCOME Take-home pay minus taxes, social security, health insurance, 401K The next slide will show a sample budget comparing Income to expenses. FIXED EXPENSES:60% Rent/Mortgage, Utilities, Home/Cell phone, Commuting, Car payment, Insurance, Work-related (clothes, dry- cleaning), Student Loan Payments, Credit Card Payments SAVINGS:20% Money set aside for vacations, major repairs, new appliances, to pay down existing debt, emergencies a down-payment on a car or house, charity RETIREMENT:10% Ideally, 10% of your gross income JUST FOR FUN:10% Everybody needs some fun

8. The next slide: will focus on research pertaining to the pro’s and con’s of purchasing a credit card that you will select

9. ALL of the potential costs associated with using the credit card you selected. The next slide will discuss:

10.  May charge late fees if you are late making a payment? Could be as much as $50!  May not have grace periods? Meaning interest starts accruing as soon as you charge.  May have low introductory interest rates that increase dramatically over time? That 2.9% could go to 22% just like that!  May charge annual fees? Could cost you $50 just to have the card!  May charge a transaction fee for cash advances and the interest starts immediately? A percentage of your cash advance amount is added to your balance.  May charge a fee for going over your limit, and for every month you remain over your limit? Another $50 added to your balance! Examples of the fees the Credit Card company may charge.

11. The next slide will discuss why credit fitness is important to you! Credit history can impact:  Purchasing a car/home  The rate you receive on a loan  Renting an apartment  Auto and life insurance  Seeking employment

12. F INAL SLIDE IS RESEARCHING WAYS THAT YOU CAN PROTECT YOUR IDENTITY !  Shred documents before trashing Pre-approved credit offers, bank/credit card statements, credit card receipts  Be careful at ATMs, or when using your debit card that others do not see your PIN  Have checks delivered to your bank rather than your home  Do not put checks in the mail from your home mailbox--drop them off at a U.S. Mailbox or the U.S. Post Office  Empty your wallet of all extra credit cards and social security numbers, etc.  Never give out any of your personal information over the phone