What do these celebrities have in common?

Bankruptcy?

How can someone so rich go broke?• Lack of financial knowledge• Poor spending habits• Poor investments• They let their friends tell them what is

importantDon’t be like these people, learn to be money-smart and keep the money you earn!

Money MattersMake your Money Work for You

Survey

Please complete one side of the survey. You will use the other side to follow along as

we go.

We will be collecting them at the end.

Question 1

How to open a bank account• Step 1: Choose a Credit Union or Bank

o www.findabetterbank.como www.lovemycreditunion.org

• Step 2: Visit a branch with your ID and SSNo bring your parent if you're under 18

• Step 3: Deposit $

Question 2

Your money is safe here!

BANKS CREDIT UNIONS

For Profit Not-for-profit

Insured by FDIC Insured by NCUA

Business > Customer relationship Need to be a member

Question 3: Advantages

So even if this happens:

Or this:

Or this:

Question 3 (cont'd)

Banks and Credit Unions are WAY CHEAPER than getting your checks cashed!

Remember: You earned that money! Keep more of it!

CASH CHECKING* BANK

Check-cashing fees: $5 per check$20 per month, $240

Monthly fee: $5 per month$60 per year

Money Order fees: $1 per money order$5 per month, $60 per year

Box of Checks: $18 per year

Total Cost: $300 Total Cost: $78

Question 4

• Direct Deposito Paycheck goes right into your account

• Online/Phone bankingo Check your money on your phone or computer!

• ATMs• Debit cards

o So you don't have to carry cash or use credit!

Question 5

CHECKING SAVINGS

Easy to remove $ Harder to remove $

Does not earn interest (usually) Bank/Credit Union pays you to keep your money here! (earns interest)

Can link to Debit Card and Checks

Cannot link to card (usually)

Question 6

Financial Credit is:• Your ability to borrow $

Good Credit • Have borrowed money before• Make payments on time

Bad Credit• Make late payments• Cannot pay full amount• Have never borrowed $ before

Question 7

Types of student loans• Federal - cheapest, but limited• Private - more expensive

WATCH OUT!Your Financial Aid Award Letters will list federal

loans as financial aid! These are the cheapest possible loans to get which is great... but you still need to pay them back.

Question 8

Interest• The cost of borrowing someone else's

money• Is shown as a %

Example:• I borrow $100 from Kerri• She charges an interest rate of 5% and adds

the interest each month I am lateo If I pay her back right away, I only have to pay $100o One month late, I owe $105 (100 x .05 = $5)o Two months late, I owe $110.25 (105 x .05 = $5.25)

Question 9

Credit Cards• Bank loans you card limit to be used each

montho Example: $500

• Must pay back what you borrowed by end of montho Otherwise, you will be charged interesto Credit Cards have REALLY high interest rates!

But still cheaper than Pay Day Loans

Question 10

Why is credit important?• Useful in emergencies• Can affect your ability to rent an apartment

or get a job

Question 11

Budget: Where you write expenses/income

Expense Expense Amount

Income Income Amount

Snacks -$15 Paycheck $100

Clothes -$30 Allowance $10

Entertainment -$30

Total -$75 Total $110

Question 12

Check out your budget sheet and use it!

Write down what you spend this week until we meet again on Thursday (on back)!

Question 13

Set S.M.A.R.T Goals• Specific

o I want to purchase a $2,800 car

• Measurableo I will save $233 each month to go towards my car

• Achievableo I am willing to limit what I spend on clothes, movies

• Realistico I have a job that pays me enough to save this much

• Time Sensitiveo I want to buy my car 12 months from now

Question 14

Interest in Savings Accounts• What the bank pays you to save money• Written as a %

Example:• I put $100 in a savings account that pays 5%

interest which is added every 3 monthso After 1st 3 months - ($100 x .05)+100 = $105.00o After 2nd 3 months - ($105 x .05)+105 = $110.25

Question 15

Write down something you want to save for!

Then make it a SMART goal:

I want to buy a Nintendo Wii that costs $150.00 by July. I will save $25 each week to go towards my goal.