1. YOUR FINANCIAL FUTURE A GUIDE TO MANAGING YOUR FINANCES

2. LET’S DISCUSS… Saving Checking/Controlled Spending Accounts Budgeting Obtaining Credit and Credit Score Safeguarding Your Identity

3. BEFORE WE GET STARTED… Does anyone know where to go for help with basic financial services? (ex. savings accounts, checking accounts, loans)

4. SAVING

5. Saving is setting money aside for the future, usually in an account for safekeeping. Savings accounts generally earn a small amount of interest, so you can even make money on the money you save. SAVING

6. Saving is like paying yourself – when you pay your bills, think of your savings as another bill! Saving gives you money for unexpected expenses, emergencies, future purchases (car or home), etc. SAVING

7. CHECKING & CONTROLLED SPENDING ACCOUNTS

8. CHECKING ACCOUNTS Paper checks Debit card Register to track credits & debits Monthly Statement Beware of NSFs Overdraft protection available

9. CONTROLLED SPENDING ACCOUNTS Debit card – no paper checks Purchases strictly limited to funds on the card No risk of NSFs No overdraft protection needed Great for students!

10. BUDGETING

11. IMPORTANCE OF BUDGETING Helps you determine where you will spend your money. Allows you to have enough money to pay your bills each month. Allows you to save for expensive items without the use of credit cards or loans.

12. BUDGET COMPONENTS Income (Money Coming In) Expenses (Money Going Out) Fixed Variable Periodic

13. BUDGETING STEPS 1)Calculate your income (money coming in) Let’s discuss Gross and Net Pay! Gross pay is the amount you’re paid before deductions like taxes and Social Security. Net pay is after the deductions. So….

14. BUDGETING STEPS If your salary is $8.00 per hour and you work 10 hours per week, your gross income is $80.00 per week. But, your take home pay (net) will be less because of deductions! Base your budget on what you get – net.

15. BUDGETING STEPS 2.Determine your expenses - monthly bills/payments (don’t forget to pay yourself!) 3.Compare money coming in to money going out (which is more???)

16. BUDGETING STEPS 4.Put your budget in print, so you can review it and make adjustments as your income and expenses change. Now let’s look at standard budget guidelines to help with the future…

17. BUDGET GUIDELINES

18. EXAMPLE BUDGET Net Income Paycheck/Allowance$600.00 Total Income$600.00 Fixed Expenses Savings Account$115.00 Auto Loan$150.00 School Expenses$50.00 Variable Expenses Cell Phone$60.00 Miscellaneous (gas, food, movies, activities, other expenses) $150.00 Periodic Expenses Car Insurance75.00 Total Expenses$600.00

19. BUDGETING RESOURCES Money Management Workbooks Computer Software Cell Phone Applications

20. CREDIT

21. WHAT IS CREDIT? Money loaned, for a fee (interest), that must be repaid. Allows you to buy now and pay later. Includes credit cards, installment loans, student loans, and mortgages.

22. CREDIT EXAMPLE You purchase a $900 television using your credit card. Purchase:$900 Interest Rate:15% Minimum Monthly Payment:$27 Total Interest:$436.49 Total Paid:$1,336.49 Time needed to pay off debt:approx. 4 years!

23. CREDIT REPORT The credit report contains your credit score, which is compiled by lenders to rate your creditworthiness. The higher your score, the less amount of risk you pose to potential lenders (average ranges: 300-900). The credit report shows how well you repay your debt. Credit bureaus sell credit report information to businesses.

24. Account TypeCompanyAccount #BalanceNegative Items InstallmentSECUXXXXXX$25,000.0 0 No RevolvingSECUXXXXXX$1,250.00No NameJohn Doe Date of BirthJanuary 1, 1989 Social Security NumberXXX-XX-XXXX Current Address123 Credit Union Lane Raleigh, NC 27609 CREDIT REPORT INFORMATION 2. Accounts Summary 1.Personal Information

25. Account TypeCompanyStatusDelinquencyDescription RevolvingCredit UnionPays as agreed 60 days past due No DateCompany requesting credit record 09/01/2010Credit Union 10/08/2010Cell Phone Company CREDIT REPORT INFORMATION 4. Negative Items 3. Inquiries

26. MORE CREDIT REPORT INFORMATION Negative information: 7 years Bankruptcy information: 10 years Default on student loans: 7 years after guarantor actions Judgment or lawsuit: up to 10 years & can be renewed

27. THREE MAJOR CREDIT BUREAUS Equifax Phone: (800) 685-1111 Website: www.equifax.com Experian Phone: (888) 397-3742 Website: www.experian.com TransUnion Phone: (800) 888-4213 Website: www.transunion.com

28. FREE CREDIT REPORT Web: www.annualcreditreport.com Toll Free Number: 1-877-322-8228 Annual Credit Report Request Service PO Box 105281 Atlanta, GA 30348

29. SAFEGUARDING YOUR IDENTITY

30. IDENTITY THEFT When someone uses your name, Social Security number, card number or other personal information without your permission. What can a thief do with your information? Open a credit card in your name. Take out a loan in your name. Forge your signature on documents, checks, etc. Give your name to the police when arrested.

31. POTENTIAL DANGERS OF ID THEFT Lost and damaged credit. Difficulty opening a savings account at some financial institutions. Difficulty applying for a driver’s license. Difficulty getting accepted into college. Inability to secure a job.

32. SAFE PRACTICES FOR YOUR PERSONAL INFORMATION Make sure personal information is secure where you live, at school (and work, if applicable) and do not share your passwords. You should never share personal account information.

33. When you provide personal information to a company, your information may be shared with others; however, many let you “opt out” of having information shared. Insist that creditors safeguard your personal information and do not share with others. SAFE PRACTICES FOR YOUR PERSONAL INFORMATION

34. IF YOU ARE A VICTIM… You Have Rights, Take Action Immediately!

35. QUESTIONS?