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Chapter Three: Understanding Financial Intelligence
It's good to have money and the things money can buy, but it's good, too, to check up once in a while and make sure you haven't
lost the things that money can't buy.George Lorimer
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 1
Chapter Goals
Learning• Take charge of your
financial decisions • Empower yourself through
money management by budgeting, saving, and investing
• Importance of your FICO score and how to build a solid credit report
Ability• Construct and use a budget • Make wise decisions
regarding credit cards, student loans, and financial aid
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 2
Taking Control of Your Money
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 3
Empowering Yourself with Delayed Gratification
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 4
A Budget
An itemized summary of how you plan to spend your financial resources during a specified period of time
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 5
Five Smart Money Moves
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 6
(Fowles, 2011).
Job Benefits
• health insurance• life insurance• dental insurance• profit sharing programs• free parking• child care facilities• exercise facilities• others
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 7
Tax Deductions
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 8
Expenses
Fixed• Housing• Transportation
– Car payment– Gas– Insurance
• Utilities• Loans
Variable Expenses• Food• Medical/dental expenses• Car repairs/maintenance• Internet/phone• Entertainment• Clothing• Credit cards• Education• Other• Savings/investments• Day Care
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 9
Student Loan Borrowing Tips
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 10
Key Features about Student Loans
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 11
Defaulting on Your Student Loan
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 12
Building Your Credit History
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 13
Evaluating Credit Cards
• Lowest permanent interest rate.
• Low or no annual fees.
• Avoid having too many cards.
• Understand credit terms and disclosure statements.
• Beware of low introductory rates.
• Make sure issuer reports to a credit agency.
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 14
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 15
Managing Your Credit
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 16
FICO Score
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 17
When to Get a Free Copy of Credit Report
• Once every year.• If you have been denied
credit in the previous 60 days.
• If you have been denied employment or insurance in the previous 60 days.
• If you suspect someone has been fraudulently using your accounts or your identity.
• If you are unemployed and plan on applying for employment within the next 60 days.
• If you are on public assistance.
• When applying for a mortgage you can get a copy from your lender.
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 18
How to Improve Your FICO Score
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 19
Identify Theft
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 20
Retirement Questions
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 21
Paycheck Deductions
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 22
Buying a Car
• Insert photo 3.7 from page 121
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 23
Chapter Reflections
Chapter 3, Cornerstones for Professionalism, 2/e, Pearson Education 24
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