Welcome to RADIO SHOW: MONEY EXPERIENCES

AGENDA
Creating and Managing a Budget Power of Compounding

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Pros and Cons of Credit Cards

Credit Fitness: Why it is important!

CREATING AND MANAGING A BUDGET: KNOW YOUR HABITS

First, know your habits by tracking your expenses to fully understand how you spend your money

C REATING AND MANAGING A BUDGET: INCOME V EXPENSES

Total Monthly Take-Home Income (minus taxes, health insurance,
other payroll deductions, 401K)

Household Expenses
Rent or Mortgage

$ $ $ $ $

SECOND, DO THE MATH! DETERMINE YOUR MONTHLY INCOME MINUS EXPENSES

Utilities (water, sewer, gas/electricity) Home/Cell Phone Groceries Other Household (Cable, etc.)

Transportation Expenses
Car Loan Payment Gas, Tolls, Parking, Other Car Insurance (set aside if paid annually or semi-annually)

$ $ $

Other Expenses
Pet (Food, Vet) Insurance/Co-pays, Prescriptions Fun (entertainment, dining out, move rental, etc.)

$ $ $ $ $

Minus Total Expenses Total Monthly Surplus/Shortage

LITTLE SAVINGS ADD UP

ITEM ANNUAL COST ALTERNATIVE ANNUAL COST

One Cup of coffee daily at a Coffee shop ($3)

One CD weekly ($12.99) Pizza delivery once a week ($10) Eating lunch out 5 days a week ($5 per lunch)

$1,095 $ 675

Gourmet coffee brewed at home

Download individual songs you like ($1) Gourmet frozen pizza at the grocery ($5) Bring your lunch to work 5 days a week ($1.50 per lunch)

$176 $375

$ 520

$260

$1,250

$375

Total Annual Savings of $2,354!

CREATING AND MANAGING A BUDGET: MONITOR YOUR BUDGET

1.

Commit to your budget

2.

Track and compare actual expenses against monthly budget

Make choices to reduce expenses Start saving for your short and long-term needs

3. 4.

PROS AND CONS OF CREDIT CARDS

Although credit cards may seem like your ticket to buying anything you want ..but it is important to understand just how much that little piece of plastic could really cost you

PROS AND CONS OF CREDIT CARDS

What you may not be aware of are ALL the potential costs associated with using a credit card

PROS AND CONS OF CREDIT CARDS

Once you have a balance, making the minimum monthly payment wont make much of a difference

PROS AND CONS OF CREDIT CARDS

1. 2. 3.

Helps build credit history Builds financial management skills Provides emergency protection and enhanced security Makes purchases convenient Saves you money Qualifies you for better interest rates Makes it easier for you to rent an apartment

4. 5. 6. 7.

8.

Makes it easier for you to buy a car

CREDIT FITNESS: WHY IT IS IMPORTANT!

Monitor and adjust your budget as needed Pay your bills on time If youre having trouble, evaluate why Lower your credit card balances Pay off the higher interest rates first Be realistic about how much debt you can afford