a manage your money wisely welcome to moneywi$e a consumer action and capital one partnership...

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ManageYour MoneyWISELY

Welcome to

MoneyWI$EA CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

Tracking your money

© 2011

Money Management Seminar

MoneyWI$E

A joint financial education project of Consumer Action and Capital One.


The Money Management course will give you...

An understanding of what good money management is and why it is important

Skills and ideas to help you better manage your money


Money Management

Session One

(Two hours)


Course objectives

This seminar will help you understand:

• How to prepare a budget• How to balance your

accounts• How to cut back on

expenses• Ideas for increasing your

income• How to save more• How to set financial goalsMoneyWI$E

A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

In participants’ folders

Manage Your Money Wisely (brochure)

Checkbook Balancing Activity (worksheet)

Three Sample Profiles (class exercise)

Financial Goals Worksheets

Take-home Budget Worksheet

Money Management Seminar Evaluation Form


Money Management

What is money management:

• Knowing how to save, spend and invest your money so that you and your family can successfully work toward your financial goals


Money Management activities

What activities go with money management?

• Tracking your spending.• Making a budget.• Balancing your checkbook.• Using credit wisely.• Setting long- and short-term

goals.• Earmarking money for

savings.MoneyWI$E


Be a wise money manager

Wise money management can help you:

• Pay your bills on time.

• Make it through times when you are not working.

• Save money.

• Plan for short- and long-term goals.


Budgeting

What is a budget?

• A spending plan to help you forecast and control your expenses.


Making a budget

How do you make a budget?

• You need to figure out how much you spend each month and compare that amount to your take-home pay.

• Track your spending for a set period of time, like a month, in order to figure out how much money you spend.


Tracking your spending

What are some ways to track how much money you are spending each day, each week, or each month?


Ways to track spending

Keep a notebook handy and write down everything you buy and every bill you pay.

Keep all your receipts in an envelope or shoe box.

Create a computer file for entering your income and expenses.


Your budget

What are some of the things that should be included in your budget?


Your budget may include:

Housing

Food (groceries, restaurants, snacks)

Automobile (payments, gas, repairs, insurance, commuting expenses)

Clothing & personal grooming

Utilities (electric, gas, water, cable)

Credit card payments MoneyWI$EA CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP

Your budget may include:

Student loan payments

Child care

Insurance payments

Entertainment (movies, concerts, books)

Medical bills

Vacations

Income taxes


Making your budget work

Does your income cover your expenses?

If not, you need to figure out how to spend less or earn more.


Bank accounts

A bank account is an important money management tool.

How can a bank account help you manage your money wisely?


Bank accounts

A bank account helps you keep track of your spending and how much money you have available.

Use your checkbook register to write down and deduct:• Every check you write• Every ATM or debit card

transaction or purchase• Any bank fees you pay


Benefits of a bank account:

Money is safe.

Each account is insured.

Canceled checks prove you paid a bill.

Having a bank account can save you money.


Let’s take a break

Please come back in 15 minutes.


Let’s balance a sample checkbook

Take out the checkbook balancing activity from your folders:• Review the sample bank

statement.

• Balance the sample checkbook register.

• Balance the sample account using the checkbook balancing worksheet.MoneyWI$E


Cutting back on expenses

What are some ways to cut back on expenses?


Ideas to help you cut back

Shop around and compare prices.

Make a shopping list and stick to it.

Prepare meals and bag lunches at home.

Don’t shop recreationally—you could be tempted to buy things you don’t need


More ways to cut back

Use the public library for books, magazines, videos.

Join a buying co-op.

Lower your thermostat when away or sleeping.

Walk instead of drive.

Look for a free bank account.


Increase your income

Ways to earn extra money:

• Part-time or weekend job.

• Take advantage of income tax programs, such as the Earned Income Tax Credit.

• Start a home-based business.

• Rent out a room.


Setting financial goals

Short-term goal (1-2 years) — buying a new car, getting a degree or planning a wedding.

Long-term goal (5-10 years or more) — owning a home, starting a family, paying for college or retiring.


Working toward your goals

A savings plan allows you to work steadily toward your financial goals.

The take-home ‘Financial Goals Worksheet’ will help you figure out a savings plan that works with your particular goals.


Take-home activity

The Financial Goals Worksheet and Chart can be found in each of your folders.

Complete the worksheets at home.

Bring the completed worksheet back for the second session.

See you next time!MoneyWI$E


Money Management

Session Two

(Two hours)


Money Management

Welcome back!

In this session we will focus on saving, investing, insurance, credit and debt


Saving & investing

Let’s review your Financial Goals Worksheet.

Saving and investing can help you to reach your short-term and long-term goals.


How to save more

“Pay yourself first” by scheduling automatic deposits on pay day that go into your savings account or IRA (individual retirement account)


Retirement accounts

Does your employer offer a retirement savings plan?

Employer-sponsored plans can help your retirement savings grow faster because you do not have to pay taxes on the earnings until you are eligible to withdraw from the account, at age 59 1/2.


Saving - CDs

A CD (certificate of deposit) is a safe way to save.• Like savings accounts, CDs are

insured by the government.• CDs often earn a higher

interest rate than savings accounts do.

• However, CDs require that you leave your money for a set period of time, such as six months or a year.MoneyWI$E


Investing

An investment is the use of money to create more money

Stocks, bonds and mutual funds are all types of investments

Consider an investment advisor.

Be cautious—investments are not government-insured and you could lose your money.


Insurance

What are the benefits of having insurance?

Insurance protects you against financial ruin as a result of an unforeseen catastrophe like fire, theft or medical emergency.


Kinds of insurance

What are the most important types of insurance for you and your family?• Automobile insurance• Health insurance• Homeowner’s or renter’s

insurance• Life insurance


Saving money on insurance

Always ask if you are eligible for any insurance discounts.

Internet sites can help you compare premiums:• Insure.com (www.insure.com)• InsWeb (www.insweb.com)• Quick Quote (www.quickquote.com)• Lower Rate Quotes

(www.lowerratequotes.com)


Credit

Good credit can help you:• Rent an apartment• Purchase a home• Get a job• Set up phone and power service.• Buy ‘big-ticket’ items without

cash• Borrow money• Obtain a credit card• Rent a car


To build good credit...

Pay your bills on time.

If you carry a balance, pay as much as you can each month.


Rebuilding credit

If you have damaged your credit, try applying for credit with local businesses or for a secured credit card (a bank credit card backed by money you deposit in a bank account.)


Home equity loans

Home equity loans can be used to consolidate debt.

Be very careful before taking out a loan secured by your home (a home equity loan or line of credit).

If you fail to make a payment, you risk losing your home.


Good credit

Try to avoid these expensive credit options:

• Pawn shops, pay day loans, and car title pawn shops

• Offers to buy things on credit with deferred interest

• Credit cards with rates higher than the national average (check www.bankrate.com for average)


Overwhelmed by debt?

The National Foundation for Consumer Credit - (800) 388-2227 or www.nfcc.org can refer you to a credit counselor in your area. Low- or no-cost services help you establish a repayment plan.

Debtors Anonymous (781) 453-2743; www.debtorsanonymous.org


Let’s take a break

Please come back in 15 minutes.


Money management activity

Break into small groups.

Review sample profiles.

Discuss how the people in the sample profile can get back on track.

Select a spokesperson from each group to present your ideas.


Take-home budget worksheet

In your folder you’ll find a budget worksheet.

Track your spending for a while and then complete this worksheet at home.

Keep yourself focused on creative ways to save money.


Questions?

Let’s try to answer some of your questions about money management.


Now you can grade us!

Please fill out the seminar evaluation form and leave it with me on your way out.


Congratulations!

Congratulations on completing the MoneyWI$E “Money Management” seminar!

You’ve taken a big step toward wise money management.

Put what you’ve learned into practice—you can do it!



Visit money-wise.org for additional information and

to access free financial education materials

a manage your money wisely welcome to moneywi$e a consumer action and capital one partnership...

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