Savings Account Try to save 10% every month. Keep 6 months of
expenses in savings Look for best value Free ATM withdrawals Low
monthly rate Carry extra money (hidden) for emergency
Recommendations: NCSECU, Allegacy Credit Union
Checking Accounts (Debit Cards) Always know how much $$ you
have An overdraft (trying to pay more than what you have ) costs
30$ to bank, 25$ to company and hurts credit score! You can opt out
of overdraft on debit cards but not for checks.
Credit Union vs Banks Credit Unions are NON-PROFIT. Money
earned is passed on to the members. (nicer coin machines, more
tellers etc..) Banks are FOR PROFIT. Money earned is passed on to
share holders. They can offer more services and usually better
Bonds and CDs Government and Banks raise money by selling bonds
or CDs at fixed rates for fixed amount of time. Ex: 5 years at 4%
Look at Bond ratings for safe investment Advantages: Safe, known
income for a few years later. Disadvantages: Locked in for
Stocks Long term investment Look for low trading fees
(Scottrade, Etrade etc..) Advantages: Average rate of increase is
7% plus dividends Can be easily changed into money if needed
Disadvantage: Not stable growth Recommendation: Kiplingers Magazine
Dow Jones Index: Price of about 50 stocks Nasdaq Index: Price of
all 3000 stocks (first to use electronic sells)
Mutual Funds Collection of stocks Advantages: Balanced Risk
Disadvantages: Cost. Average payment is about 1.1% including some
up front costs for some. Recommendations: Vanguard or Fidelity
Pensions (very few around) to be paid when you retire 401K
(through employer; taxes later) Deductable IRA (pay taxes later)
Roth IRA (taxes now, not on earnings) You invest money that you get
when you turn 65. Some charge taxes now (Roth IRA) and some will
charge taxes later (401 K) There is a penalty if you take the money
out early. Advice: If a company matches your donation, then put the
maximum amount in!
Rule of 72 Doubling $$: Divide 72 by interest rate or years to
find the other number. Ex: 4% interest rate will take 72/4 or 18
years to double. Ex: 10 years to double will take 72/10 or 7.2%
interest rate 2 = 1e rt ln (2) = rt.69 = rt so rt =.69
Millionaire!! Millionaire: The more you invest now in a
positive rate, the more you will have later!
http://www.youtube.com/watch?v=XUCYdGAWcbo Savings Per Month at 7%
Time to be a Millionaire $40039 years $75031 years $100027
Ways to save at least 10%! Coupons and discounts Buy for value!
Buy for NEED not WANT Dont buy a new car! Make and follow a budget!
Shop around for best value.
Credit Cards 1-2 for now but 3-5 when you get older. Borrow
only what you can pay at the end of the month. Pay attention to
annual fees. Look for good benefits. Keep interest rate under 15%
Dont withdraw money from ATM machines. Late payment is usually $25,
10% penalty, and lower credit rating. Pay more than the minimum if
you cant pay in full.
Mortgages Make down payment of at least 20% to avoid PMI
(Private Mortgage Insurance) PMI is extra $600 a year until you
have put at least 20% into your house. Shop for best mortgage
rates. (Calculate points carefully) Avoid ARM (Adjustable Rate
Mortgages) Pay extra money to reduce the time on the loan. (100$
extra turns 30-yr loan to 23 years) 28% is the maximum of your
monthly income that you should put into mortgage (or housing).
Loans College loans (Federal Government) Family member/friend
loans (not the best idea) Dont borrow too much $$$$ (only what you
can afford to pay back!) Home Equity Loans (up to 80% of what you
have put into the house)
Major Money Mistakes Payday Loans (15% fee) Borrowing Money to
pay another lender Cosigning a loan Gambling with $$$$ you cant
avoid to lose. Impulse buying! Spending what you dont have!!!!!!
Buying a new car.
Job Searching and Keeping Its not what you know but who you
know. Maintain safe Social Media Sites. Use correct English when
communicating with prospective employers. Write a thank-you letter
shortly after the interview. Stay away from illegal drugs!
Identity Fraud Use different passwords. Pay attention to your
bank/credit card statements. Never give out your password or Social
Security Number. (Phishing!!!) Use https and not http
http://www.youtube.com/watch?v=DuhjKasJA04 Keep copy of
passport/license/insurance at home and one with you when
Credit/Debit/Gift Card Contact institutions if traveling Keep a
copy at home Keep track of automatic drafts especially if your card
gets cancelled or lost. Treat Gift cards like $$$ and try to use
them quickly before they get lost or money is debited from
Credit Score Three agencies give credit score based on your
history of paying off loans. (200-820) Higher Credit Score means
more likely that you will get a loan at a lower rate Having few
credit cards, Paying off credit cards, paying rent, paying car
loans etc ON TIME increases your credit score!
Lower Taxes Charity donations (keep receipts) Deduct $$
interest from loans Put $$ in 401K or IRAs Combine winnings and
losses in same year (stocks, gambling etc)
Invest in Yourself Keep educating yourself Find what you do the
best and try to make the best of it. Over of your waking time will
be spent on a job. So enjoy it as best as you can!
Tip #1: Make Financial Goals Tip #2: Follow a Budget Tip #3:
Respect and Build Credit Tip #4: Education and Learning Matter Tip
#5: Save Money - Use Coupons Responsibly Tip #6: Protect Yourself -
Get Insurance Tip #7: Plan for the Future - Save & Invest Tip
#8: Own Your Home Ways to be better with $$$$$ 1. Buying a new car.
2. Borrowing to buy things that lose value. 3. Earning squat while
paying plenty. 4. Ignoring your credit score.
AnnualCreditReport.com. If you dont like what you see take steps to
improve it.AnnualCreditReport.com 5. Wasting a windfall. 6.
Overpaying your taxes. 7. Buying name brands. 8. Getting scammed.
9. Missing new technologies. 10. Settling for more.
WAYS TO WASTE MONEY!!! 1. Buying a new car. 2. Borrowing to buy
things that lose value. 3. Earning squat while paying plenty. 4.
Ignoring your credit score. AnnualCreditReport.com. If you dont
like what you see take steps to improve it.AnnualCreditReport.com
5. Wasting a windfall. 6. Overpaying your taxes. 7. Buying name
brands. 8. Getting scammed. 9. Missing new technologies. 10.
Settling for more.
Other Videos to show http://www.youtube.com/watch?v=n1XNK7fXlIc
http://www.youtube.com/watch?v=n1XNK7fXlIc Look at North Carolina
CPA course on Financial Literacy for better information