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The Financial Aid Office Presents -

An overview of personal finances

Please complete questionnaireFrom: Maciejowski Bible 1250AD

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All we have is a gift from God All we have is a gift from God and is entrusted to us.and is entrusted to us.

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Things to consider when Things to consider when thinking about moneythinking about money

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• 17–27 You are very perceptive • 28–42 Pretty good • 43–58 Welcome to the crowd • 59–75 My bad• 75+ Whoa!

Spending Perceptions Score Key

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Making changes: Making changes: Where can changes be made Where can changes be made

which effect our financial which effect our financial situation? situation?

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- - Not spend more than you earnNot spend more than you earn- Contribute to the Lord’s work - Contribute to the Lord’s work - Ensure that you can pay your debts (bills)- Ensure that you can pay your debts (bills)- Provide for others- Provide for others- Plan for the future - Plan for the future

- large expenses- large expenses- rainy day fund/unexpected expenses- rainy day fund/unexpected expenses

Setting up a spending plan enables you to:Setting up a spending plan enables you to:

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To do: 1. Track your spending: To do: 1. Track your spending: EXPENSESEXPENSES

Fixed (Rent, car payment)Fixed (Rent, car payment)Flexible (Groceries, Entertainment, Gifts)Flexible (Groceries, Entertainment, Gifts)

INCOMEINCOMEPay CheckPay CheckGiftsGiftsFinancial AidFinancial Aid

BudgetingBudgeting

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Subtract EXPENSES from ISubtract EXPENSES from INCOMENCOMETo find out if you have a surplus To find out if you have a surplus

or are in the or are in the red red

If you are spending more than you are bringing in, what can you do?

BudgetingBudgeting

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- Using the information you - Using the information you discovered from tracking your discovered from tracking your spending, categorize each type of spending, categorize each type of spending. spending. - Compare your spending to - Compare your spending to suggested category percentages to suggested category percentages to see if you need to make see if you need to make adjustments.adjustments.

BudgetingBudgeting

2. Develop a Budget 2. Develop a Budget

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3. Set your priorities!! 3. Set your priorities!!

BudgetingBudgeting

Needs Wants

Food Clothing Shelter Medical/dental

visits Prescriptions

Computer, internet Car Cell phone, smart phone Cable television Movies, entertainment Pets

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4. Prepare for the future:4. Prepare for the future:•Plan for short term goals, such as buying a computer (rather than buying on credit).

BudgetingBudgeting

•Plan for long term goals when possible (such as house down payment, retirement).

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5. Monitor Monthly5. Monitor MonthlyBudgetingBudgeting

•Dave Ramsey.com• Crown.org• Financial planning

books• WTS website

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SavingsSavings

Making changes: Making changes: SavingsSavings2 philosophies - 2 philosophies -

EarnEarn – – SpendSpend = Tithe + = Tithe + SavingsSavings (leftovers)(leftovers)

EarnEarn – (Tithe + – (Tithe + Savings)Savings) = = SpendSpend

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SavingsSavingsMoney in an interest bearing account Money in an interest bearing account works for you (compounding works for you (compounding interest).interest).

Debt – Debt – works works against against you since you since you pay you pay to to borrow. borrow.

Monthly payment

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CreditCredit

Credit reports include:Credit reports include: Personal informationPersonal information Credit HistoryCredit History Public Records Public Records Inquiries Inquiries (for loans, etc.)(for loans, etc.)

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CreditCreditTo check your credit report go to To check your credit report go to - -

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CreditCreditCredit Score = FICO Credit Score = FICO scorescoreIs derived from:Is derived from:

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CreditCreditFICO score – need to pay to find out. FICO score – need to pay to find out. For a free credit score (similar to For a free credit score (similar to FICO):FICO):

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CreditCredit FICO score effect on 2014 FICO score effect on 2014 mortgage rates from mortgage rates from www.myfico.com - -

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CreditCredit

Bad credit Good credit

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CreditCredit

Opt out of pre-approved offerswww.optoutprescreen.com

Stop {most} telemarketer callswww.donotcall.gov

Evaluate credit card offerswww.bankrate.com

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Resources to help www.annualcreditreport.com www.myfico.com www.creditkarma.com www.bankrate.com www.mint.com www.finaid.org

• Be proactive – ask questions

• Seek help, investigate• Set goals – act on what

you know

ConclusionConclusion

The EndThe End – not quite!– not quite!

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• Sandra Perrine – Manna Budgeting, Introduction to Dave Ramsey’s budgeting tool.

• Lynne Shropshire- Managing Church Manna,Introduction to pastoral compensation and church finances.

Opportunities to Learn:Opportunities to Learn: