1. Personal Finance ATM- Automated Teller Machine Credit Cards- revolving line of credit, department store cards, major credit cards (Macy’s, Visa, Mastercard, Discover T&E card (Travel and Entertainment)- similar to a credit card, but balance must be paid off by the end of the month. Usually have a annual membership fee. (Diner’s Club, American Express)

2. Personal Finance Are you Credit Worthy? –4 C’s Capacity- your ability to repay the debt Capital- your regular income and the money in your savings and checking accounts Character- your willingness to repay your debts, past credit history of payments Collateral- property used to secure a loan (car or house)

3. Personal Finance What is APR? –Annual Percentage Rate The finance charge expressed as an annual rate. Tells you what your credit will cost Usually anything under 10% is good, and above is not very good. So, if you have a balance of $1000 over the span of a year on your credit card, at 10% interest (APR), then you would pay out $100 dollars in just interest. Fixed and Variable rates: variable rises and falls as the prime rate or other economic indicator changes.

4. Personal Finance Savings and Checking –Balance a checkbook Including checks and debits from ATM card Deposits also included –Try to save between 7 and 10 percent of your monthly income. Begin keeping track of a Budget

5. Personal Finance Writing up a Budget –First come up with your earnings: Job (restaurant waiter/waitress) Baby sitting Selling old DVDs or a garage sale –Next, write down how much you spend for your expenses; Food Shelter (rent, mortgage payment) Utilities (electricity, water, gas) Clothes Cell Phone Cable TV Car payment Medical insurance, car insurance Savings account Emergency fund Entertainment

6. Personal Finance Tips for budgeting –Should only spend about 25% to 35% of your monthly paycheck on your shelter including utilities –Set aside more money than you think for food –Buy better quality clothes that will last you longer, not necessarily more expensive, but some may be though. –Limit your entertainment to the least amount tolerable.

7. Personal Finance Financial Aid –How much you receive depends on the following criteria: Income-yours and your parents Number of family members in school at the time Family assets and expenses Available aid at the school you attend # of students applying for aid in that given year

8. Personal Finance 3 types of financial aid –Grants and scholarships Grants are given to students who display an “exceptional financial need” Scholarships are usually based on athletic or academic performance. But also can be obtained by just doing some simple requirements. Given by schools, corporations, and charities. –Work-study On-campus jobs students work in place of some financial obligations –Loans Subsidized and unsubsidized.

9. Personal Finance PLUS loan= Parent Loan for Undergraduate Students Stafford Loans Federal Perkins Loan Private loans through banks and local credit unions –Higher interest rates, less time to pay back

10. Personal Finance What is FAFSA? –Free application for Federal Student Aid –The form should be available at the high school you attend, local library, or the U.S. department of Education’s website Tips –Always use consistent information when filing for your student aid –Photocopy everything you submit. –Don’t miss deadlines.

11. Personal Finance Hidden costs –Books, supplies, fees, organizations Food Room and Board Tuition To qualify for Financial Aid, students must take 12 hours of courses (4-3credit hour classes) Most students do their worst in the first semester of their first year in college.