Building Your Financial Foundation. Do you think people are more likely to buy something they do not...
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Transcript of Building Your Financial Foundation. Do you think people are more likely to buy something they do not...
Building Your
Financial Foundation
Do you think people are more likely to buy something they do not need when they use a credit card?
What is Credit?
?
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What is Credit?
Bad Credit:
Purchases $1000Interest Rate 27%Minimum Payment $23Years to Pay off 12 yearsInterest Paid $2,312
Actual Cost $3,312
Good Credit:
Purchases $1000Interest Rate 7%Minimum Payment $10Years to Pay off 12 yearsInterest Paid $440
Actual Cost $1,440
Purchase with Savings:
Purchases $1000 Amount Saved/month $1258 months to save $1,000Interest earned on money in savings $30
Actual Cost $970
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• Credit cards can be a tool to build your credit rating.
• To avoid interest and extra expenses pay your credit card balance off in full every month.
• Paying off your credit cards in full allows you to build your credit history without paying interest charges.
• WARNING: Before getting a credit card:
oHave 6 months worth of bills saved
oHave a working budget
o Control your spending
oHave a clear written plan in place
What is Credit?
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Identity Theft
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Types:• Social Security Identity Theft • Driver’s License Identity Theft• Financial Identity Theft• Medical Identity Theft • Insurance Identity Theft• Children’s Identity Theft• Criminal Identity Theft• Mortgage Identity Theft
Identity Theft
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Identity Theft
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Tips:
• Use only a secure server to access the Internet.
• Shred any document with personal information.
• Keep your Social Security card, passport, license, and other valuable personal information hidden.
• Get a mailbox that locks.
• Opt out of unnecessary (sometimes risky) credit or insurance offers. Call
• Never provide your social security information or private contact information over the phone–unless YOU initiated the phone call.
• Delete any suspicious email.
• For debit and credit cards Don’t carry your PIN in your wallet, purse, or pocket or write it on your card.