Building Your Financia l Foundati on
Dec 16, 2015
Building Your
Financial Foundation
Do you think people are more likely to buy something they do not need when they use a credit card?
What is Credit?
?
C-1
What is Credit?
Bad Credit:
Purchases $1000Interest Rate 27%Minimum Payment $23Years to Pay off 12 yearsInterest Paid $2,312
Actual Cost $3,312
Good Credit:
Purchases $1000Interest Rate 7%Minimum Payment $10Years to Pay off 12 yearsInterest Paid $440
Actual Cost $1,440
Purchase with Savings:
Purchases $1000 Amount Saved/month $1258 months to save $1,000Interest earned on money in savings $30
Actual Cost $970
C-1
• Credit cards can be a tool to build your credit rating.
• To avoid interest and extra expenses pay your credit card balance off in full every month.
• Paying off your credit cards in full allows you to build your credit history without paying interest charges.
• WARNING: Before getting a credit card:
oHave 6 months worth of bills saved
oHave a working budget
o Control your spending
oHave a clear written plan in place
What is Credit?
C-1
Identity Theft
C-3
Types:• Social Security Identity Theft • Driver’s License Identity Theft• Financial Identity Theft• Medical Identity Theft • Insurance Identity Theft• Children’s Identity Theft• Criminal Identity Theft• Mortgage Identity Theft
Identity Theft
C-3
Identity Theft
C-3
Tips:
• Use only a secure server to access the Internet.
• Shred any document with personal information.
• Keep your Social Security card, passport, license, and other valuable personal information hidden.
• Get a mailbox that locks.
• Opt out of unnecessary (sometimes risky) credit or insurance offers. Call
• Never provide your social security information or private contact information over the phone–unless YOU initiated the phone call.
• Delete any suspicious email.
• For debit and credit cards Don’t carry your PIN in your wallet, purse, or pocket or write it on your card.