i ll do it if 5 habits for financial health n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
I’ll Do it If…5 habits for financial health PowerPoint Presentation
Download Presentation
I’ll Do it If…5 habits for financial health

Loading in 2 Seconds...

play fullscreen
1 / 17

I’ll Do it If…5 habits for financial health - PowerPoint PPT Presentation


  • 98 Views
  • Uploaded on

I’ll Do it If…5 habits for financial health. OHCE State Lesson. Icebreaker. Break into small groups of 3-4 Discuss a habit you have tried to develop (or break) to reduce spending and increase savings As a group decide the best tips and report back to the group. Objectives.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'I’ll Do it If…5 habits for financial health' - yanni


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
icebreaker
Icebreaker
  • Break into small groups of 3-4
  • Discuss a habit you have tried to develop (or break) to reduce spending and increase savings
  • As a group decide the best tips and report back to the group
objectives
Objectives
  • Five strategies to help provide more control over finances
  • Tracking
  • Budgeting
  • Setting Money Aside
  • Checking your Credit Report
  • Knowing what’s in your report
tracking
Tracking
  • A method for keeping up with actual spending
  • Useful when you find there might be some spending “holes”
  • Notepad, check register, phone app
  • Whatever works
tracking continued
Tracking continued
  • Use categories that match those on the budget sheet
  • Always consider periodic payments
  • Usually requires a month or two to get accurate tracking
budgeting
budgeting
  • A written plan for how we spend money
  • There is a sample budget sheet in your packet of information
budget components
Budget components
  • Fixed expenses – those that are set
      • Mortgage
      • Car payment
  • Variable expenses – those that can be controlled
      • Groceries, eating out, utilities
  • Periodic expenses – those that come up at various times throughout the year
      • Gifts, vacation, school expenses
periodic expenses
Periodic Expenses
  • Because these are not due every month, they are often ignored or overlooked
  • Can lead to overuse of credit if no money is set aside
  • Can use calendar or worksheet to determine amount that needs to be set aside monthly
  • Set aside into a separate account
  • Use this account to pay those expenses when they come due
setting money aside
Setting money aside
  • We just discussed one reason to set money aside
  • Other reasons include a major purchase, down payment or other goal
  • Decide on exact amount and time frame
  • Begin setting aside amounts
example
example
  • Financial Planners recommend an emergency fund of 3 - 6 months of living expenses
  • Nancy is widowed but still working
  • With only one salary, she needs 6 months
  • Living expenses $1,235 per month
  • times 6 months = $7,410
  • Over one year she needs to set aside $617.50 into savings each month
ordering a credit report
Ordering a credit report
  • All consumers have the right to 3 free per year
  • From 3 major Credit Reporting Agencies (CRA)
      • Equifax
      • Experian
      • TransUnion
  • www.annualcreditreport.com
      • Order online, by mail, on the phone
know what s in your report
Know what’s in your report
  • The report is a compilation of information
  • Your creditors send the info to the Credit Reporting Agencies
  • The report is divided into sections
personal information
Personal Information
  • Name
  • Aliases
  • Current address
  • Previous addresses
public records
Public records
  • Civil claims
  • Bankruptcy
  • Collections
  • Liens
      • Some of this information can remain on your report for a long time. Bankruptcy (7 – 10 years), liens can be renewed and stay on indefinitely
credit items history
Credit Items (history)
  • List of credit accounts
  • Account numbers, type of account, payment history, months reviewed, total amount of debts…
  • This information stays on your report for seven years from date of last activity
  • Payment history has the largest affect upon your credit score (a measure of credit risk that affects how much you pay for loans, interest, and even insurance.
inquiries
inquiries
  • List of requests for you credit information
  • Creditor that you do business with
  • Someone who wants to offer you credit (promotional)
  • Your personal request for your report
  • A creditor where you have filled out an application
      • This is the only one that affects your score
      • These inquiries stay on your report for two years
resources
resources
  • www.ftc.gov
  • Excellent information on ordering, reviewing and correcting mistakes on your credit history
  • www.myfico.com
  • Information on how your report affects your score