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Money Management

Money Management. Making Money Work For You. Objectives. Basics of Banking Services. Bank: A financial institution that handles money, including keeping it for saving or commercial purposes, and exchanging and investing, and supplying it for loans.

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Money Management

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  1. Money Management Making Money Work For You

  2. Objectives

  3. Basics of Banking Services • Bank: A financial institution that handles money, including keeping it for saving or commercial purposes, and exchanging and investing, and supplying it for loans. • Credit Union: A non-profit financial institution insured by NCUA that is owned and operated entirely by its members. Credit unions provide financial services for their members, including savings and lending. • Savings Institution: A financial institution that accepts deposits from individuals, makes homes mortgage loans, and pay dividends.

  4. Basics of Banking Services

  5. Benefits of Using Financial Institutions

  6. Savings Accounts • Why should you save your money? • What are the benefits of saving & savings accounts? • Should you save for something that you want or need? • What are some reasons why you might withdraw money from a savings account?

  7. Paying Yourself First-Savings Account Key Points • Allows you to deposit, withdraw, and earn interest on your money. • Allows you to put aside for a future goal or emergency fund. • Limits how often you can take your money out.

  8. Checking Accounts

  9. Check It Out – Checking Accounts • A checking account is a great tool for managing your money day-to-day • A checking account allows you to put money in to make a deposit or take money out to make a withdrawal • You can get cash whenever you need it • Allow you to have a record of how much you spend and where.

  10. Your Budget – Making Money Matter • Three Basic Steps • Money Management Scenarios & Worksheet

  11. Monthly Budget NEEDS – WANTS = NET INCOME to SAVINGS

  12. ATM & Debit Cards

  13. Credit Cards • Credit CARD Act of 2009 • President Obama signed the Credit CARD Act of 2009 into law May 22, 2009, following passage days earlier in the Senate and the House. • Limited credit to young adults: Credit card issuers are banned from issuing credit cards to anyone under 21, unless they have adult co-signers on the accounts or can show proof they have enough income to repay the card debt. Credit card companies must stay at least 1,000 feet from college campuses if they are offering free pizza or other gifts to entice students to apply for credit cards. Read more: http://www.creditcards.com/credit-card-news/help/what-the-new-credit-card-rules-mean-6000.php#ixzz1GyxpuKHACompare credit cards here - CreditCards.com

  14. Credit Cards??? • Is given to you on your credit worthiness. • Must pay interest on any unpaid balances . • May allow you to buy something today rather than having to wait. But remember, you always have to pay the money back!!! • The items you purchase are typically insured. • If you pay your bills on time and in full, you build a good credit history and increase your ability to borrow in the future. • Be aware of the fees and interest rates associated with the credit card. • The card can be your best friend or your worst nightmare.

  15. Credit – The Benefits & Risks

  16. Good Credit vs. Bad Credit

  17. Your Credit Credit Report Credit Score

  18. FICO Score • A type of credit score that makes up a substantial portion of the credit report that lenders use to assess an applicant's credit risk and whether to extend a loan.  • FICO is an acronym for the Fair Isaac Corporation, the creators of the FICO score.

  19. What Determines your FICO Score?

  20. Tips for improving YOUR Score

  21. General Tips for Financial Success • Set a monthly budget • Always pay on time • Never borrow more than 20% of your yearly net income. • Keep your credit card debt low enough so that your required payments are no more than 10% of your monthly income or avoid credit cards if possible. • Invest your earnings • Budget and manage your cash • Live within your means

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