SESSION#1–CSIntroduction and Money Management Basics 3/8/17 1 Building a Better Financial Future CreditSmart® Training for New Instructors SESSION #1 – CS Introduction and Money Management Basics ® MARCH 8, 2017 Freddie Mac® CreditSmart® • Freddie Mac strongly supports the benefit of credit education and building sound financial literacy skills among consumers. • Well-informed and well-prepared homebuyers are on the best path to enjoying successful and sustainable homeownership. • As part of this ongoing commitment, Freddie Mac developed CreditSmart Español, a multilingual financial education curriculum and consumer outreach initiative designed to help consumers build and maintain better credit, make sound financial decisions, and understand the steps to sustainable homeownership. 2 Freddie Mac®
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Building a Better Financial FutureCreditSmart® Training for New Instructors
SESSION #1 – CS Introduction and Money Management Basics
®
MARCH 8, 2017Freddie Mac®
CreditSmart®
• Freddie Mac strongly supports the benefit of credit education and building sound financial literacy skills among consumers.
• Well-informed and well-prepared homebuyers are on the best path to enjoying successful and sustainable homeownership.
• As part of this ongoing commitment, Freddie Mac developed CreditSmartEspañol, a multilingual financial education curriculum and consumer outreach initiative designed to help consumers build and maintain better credit, make sound financial decisions, and understand the steps to sustainable homeownership.
• Responsible for training and education of Industry professionals
• Educates borrowers about alternatives to foreclosure
• Works with servicers and housing counseling agencies to support affordable and sustainable homeownership
• Graduate of Nicholls State University with a degree in Mass Communication. Holds a Post graduate degree in Paralegal Studies from The George Washington University and an Accredited Mortgage Professional Designation from the Mortgage Bankers Association.
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Certificate of Completion Eligibility• Register and attend all sessions under your registration link, not that
of your colleague.
• You must login via your laptop or desktop. GoToWebinar is not able to track your participation if you’re login via your cell phone.
• Must take and pass a 10 question post-webinar test with a score of 80% or higher.
• Respond to chat and poll questions, we encourage your participation.
Your Presenter - Cora R. Fulmore• Manager/Owner of the Mortgage & Credit Center, LLC• Creator of The Counselor’s Corner, Inc. an online training center for housing
professionals, with more than 4,000 members• Co-organizer of the first Florida Housing Counselor Network, statewide• More than 35 years of experience in mortgage & credit counseling and training• National Consultant for many organizations, current faculty member of
NeighborWorks since 1994; provide training in the area of:üCertification for ED’s and Program ManagersüHousing Counseling CertificationüForeclosure PreventionüCredit Counseling
• CreditSmart® trainer since 2001
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Disclaimer: I’ve made every effort to provide updated information for this presentation. However, today presentation is not a substitute for you staying abreast of industry changes and updates.
Learning Objective After completing this series, you will be able to:- Defend the needs of CreditSmart® within your community- Design a marketing plan for CreditSmart® outreach- Use CreditSmart® and it’s tools as a viable source for
educating consumers in your market- Design your CreditSmart® presentation around the 4
Credit Myths• You need a perfect credit score to get credit.• I have to carry a balance on my credit card to improve my score• All credit scores are the same• Closing multiple accounts will help my credit score• Paying off a negative item on my report makes it disappear• When an account is changed off, I no longer owe the debt• Co-signing has no real risks• My income affects my credit score• I’m penalized for checking my credit score
CFPB Credit StudyConsumer Financial Protection Bureau (CFPB) published a report finding that 26 million Americans are “credit invisible.” This figure indicates that one in every 10 adults do not have any credit history with a nationwide consumer reporting agency.
The report also found that Black consumers, Hispanic consumers, and consumers in low-income neighborhoods are more likely to have no credit history.
Module 1: Your Credit & Why It Is ImportantModule 2: Managing Your MoneyModule 3: Goal SettingModule 4: Banking Services, An Important Step Module 5: Establishing & Maintaining CreditModule 6: Understanding Credit ScoringModule 7: Thinking Like a Lender Module 8: Avoiding Credit TrapsModule 9: Restoring Your CreditModule 10: Planning for Your Future Module 11: Becoming a HomeownerModule 12: Preserving Homeownership: Protecting Your Home Investment
“What Type of Spender Are You?”Impulsive (These individuals buy items without planning their purchase and often buy things they don’t need.
Passive (These individuals don’t like to shop and usually buy items without comparing prices or asking questions.
Esteem (These individuals shop for things that they think will impress others, thus boosting their image and esteem.)
Fanatical Saver(These individuals are so busy looking for bargains that they may not realize all the time and energy that they’ve spent outweighs the bargain itself.)
Avoidance (These individuals shop to avoid/escape dealing with the stresses of daily life.)
Recreational (These individuals shop to kill time.)
1. The Personal Saving rate January 2017 was _____ ?
2. Credit is a _____________.
3. _________ __________is the amount of income before taxes & insurance is deducted.
4. Achieving goals gives one a sense of ____________ & _________________.
5.4%
privilege
Gross Income
confidence accomplishment
Kinesthetic/tactual, visual & auditory
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Resources• Freddie Mac CreditSmart - http://www.freddiemac.com/creditsmart/• CreditSmart Consumer’s Guide –
http://www.freddiemac.com/creditsmart/guide/pdf/CSCW_2_M1_YourCredit&WhyItIsImportant.pdf• FINRA Foundation – http://www.finrafoundation.org• Financial Literacy Funding – https://www.financialeducatorscouncil.org/financial-literacy-funding/• MindTools – https://www.mindtools.com/pages/article/newHTE_90.htm• Google Wallet – https://www.google.com/wallet/• Generation Wealth – http://www.generationwealthy.org/videos/• Command Your Cash – https://usaaef.org/tools-media/publications/financial-planning-and-goal-
setting/rsrc/FinancialPlanning.pdf• Look for the RED Flags – https://usaaef.org/files/resource/q/rsrc/Red_Flag_Credit_Test.pdf• Mint.com – https://www.mint.com
Module 1: Your Credit & Why It Is ImportantModule 2: Managing Your MoneyModule 3: Goal SettingModule 4: Banking Services, An Important Step Module 5: Establishing & Maintaining CreditModule 6: Understanding Credit ScoringModule 7: Thinking Like a Lender Module 8: Avoiding Credit TrapsModule 9: Restoring Your CreditModule 10: Planning for Your Future Module 11: Becoming a HomeownerModule 12: Preserving Homeownership: Protecting Your Home Investment
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Homework Assignment Review 1. Go to http://www.freddiemac.com/creditsmart/consumer_training.html to
check out CreditSmart Online Consumer Program, share with your colleagues
2. Go to http://www.usfinancialcapability.org/downloads/NFCS_2015_Report_Natl_Findings.pdf to review the Financial Capability Study.
3. What agency provides Consumer Education within your state? Is financial education part of their focus?
4. Create an activity that could be used for one of the modules presented today. The activity should engage the audience. The activity can be as simple as a 2 minute presentation.