YOU work hard to earn your money.Make it work for YOU!

I used $100 from my tax refund to open a savings account.“ ”

I’m saving $25 a month by using my new bank to cash my paycheck.“ ”

We paid off our high-interest payday loan and started an emergency fund.“ ”

I raised my credit score by 100 points and saved on my car loan.“ ”

Build a Budget!

Record Your SpendingRecord your daily expenses for each month, this would include everything that you spend your money on. Write EVERYTHING down—gas, dining out, a pack of gum, a cup of coffee, popcorn or a magazine. SAVE all of your receipts for a week or even a month.

Categorize Your Expenses Categorize your expenses so that you know where you’re spending your money — food, rent, clothing, entertainment, medical, grooming, etc. Add up all of these expenses, and then subtract them from your monthly take-home income. Do you spend less than you make? Do you spend more? By how much? You can change that equation by creating a budget.

Review Your ExpensesReview your expenses and look for a few ways you spend money for things that are not essential. Do you eat lunch out every day? Subscribe to all the premium TV channels? Pay for memberships or subscriptions you don’t use? Buy more clothes, shoes or sports equipment than you need? Where can you cut? How much can you cut?

Eliminate Unnecessary ExpensesMake a plan to eliminate one or more things on your list of unnecessary expenses and add that amount to a “savings” category. Create a budget that shows all your expenses plus the money you can now direct toward savings. Even if it’s only a few dollars a week, it’ll start to add up for you.

Review Your BudgetReview your budget regularly to ensure you’re on track. Look for ways to add to your savings and increase your income.

BUILD ABUDGET

RECORD ALL of your

spending.

REVIEW your expenses.

CREATE a BUDGET.

Eliminate

UNNECESSARYexpenses

and ADD that AMOUNT to

your SAVINGSSample Monthly BudgetHome/Rent . . . . . . . . $733Utilities . . . . . . . . . . . $165Transportation . . . . . $183Food/Groceries . . . . . $330Clothing/Shoes . . . . . . $55Entertainment . . . . . $128Savings Account . . . . . $20Medical/Insurance . . . $220

Total . . . . . . . . . . .$1,83440%

9%

10%

18%3%

7%

12%

MonthlyExpenses

1%

Open A Bank AccountA bank account is a safe place to keep your money, helps you establish credit and provides an inexpensive way to cash checks and pay bills. It’s important to choose the bank account that fits your financial needs and goals. Learn what to consider in choosing a bank and how to manage your accounts. Banks and lending institutions are there for you and can offer a product that works for your financial future.

What to consider when choosing a bank: Location

Is the bank convenient to where you live, work or go to school? Are there several branch and ATM locations? It can be expensive to use an ATM at another bank because it may charge fees to non-customers.

Balance Requirements

How much money do you need to deposit to open an account and how much must you keep in your account? Banks have different minimum balance requirements for their free or low-price account options.

Fees

Be aware of the fees that may be charged to your account. These may include:• Charges for dropping below a minimum balance• Monthly service charge• Fees to order checks or for each check you write• Specific transaction fees such as ATMs• Withdrawals beyond a set monthly maximum

Tip: When looking for a bank, compare their fee structures. You will probably find that some charge lower fees or none at all for certain services.

Interest

Do you want to earn interest on your account balances? Interest rates vary by bank.

Other services

Online banking and bill pay let you check account balances and pay bills online. Although online bill pay is convenient, there might be a fee for this service. Online banking can be accessed from a computer or smart phone.

FIND anACCOUNT

that worksBEST for

YOURFUTURE!

COMPAREBank FEEstRuCtuREs

NerdWallet is run by a nonprofit in the San Francisco Bay Area. Use this website to: • Check out rates on credit cards, mortgages and loans• Compare bank accounts offered by local and national branches• Access FREE financial adviceVisit your local library if you need to use a computer.

Visit NerdWallet.com for bank product comparisons

OPEN ABANK

ACCOUNT

Saving Is Tough, Where Do I Start?Get in the habit—Check your savings once a month.Think of something you do every week: Call your mom, go to the grocery store or get fast food. There are plenty of things you spend money on without even thinking about it. What if putting away $20 a week was one of those things? By the end of the year, you could have up to $1,040. If you take this route, you can save without even knowing it. You may be asking, “How do I get started, even if my paycheck is already exhausted?”

You may be eligible for tax credits —Ask your tax preparer about the Earned Income Tax Credit (EITC). When you file your taxes this year, you may get a big refund! Sure, some of it might need to go to bills, but putting some of it aside helps you start saving and gets you ready for the unexpected. If you have not opened a savings account before, this is the perfect time to do so, and you have more options than ever!

Credit unions

Credit unions are nonprofit organizations owned by their members. They don’t have to charge high fees to make big profits. That means you may get better interest rates and lower fees.

Community banks

Local banks invest the money they make right back into the community—your community!

National banks

Brand name recognition and accessibility throughout the region or country provide convenience.

If you start by saving $500 of your refund and add just $5 a week, you could have more than $1,865.03 at the end of 5 years at a modest 1% interest rate. Talk to your employer. They may be able to automatically deposit that $5, $10, or $20 right into your new savings account. You won’t even have a chance to miss it.

START SAVING

NOW!

Star t SAVING just $5 a week TODAY

and you’ll have

$260 at the end

of one year!

SPLAN

for YOURFUTURE

$500

Year 1 $767.60

TODAY

RETIREMENT

Year 3 $1,310.85Year 5 $1,865.03

$?

BEWAREOF PAYDAY

LENDING

Even if YOU PAY on time, YOU’LL PAY

about 391%on your

payday loan! THAT’S TOO

MUCH!

Make a PLAN and Star t

SAVING NOW!

Not enough money to pay bills or other obligations

GetPaydayLoan

ReceivePaycheck

Pay back entire loanplus fees

BEWARE!Payday Lending Takes Away Your Hard Earned Dollars

What are payday loans?

A payday loan is a very expensive form of credit that could result in a long term debt. If you don’t have money to pay off your loan in two weeks (or less) and enough money left over to pay your bills and other expenses, you may find yourself owing much more to a payday lender than you originally thought.

In California, the largest pay day loan available is $300. You must repay the loan within two weeks and it costs $45. That means even if you pay your loan on time, you are paying an annualized interest rate of 391%! If you can’t pay the loan in full within two weeks, your interest will increase further. Pay day loans just don’t make financial sense.

How can you avoid taking out a payday loan? Planning is ideal. The best long-term plan is to build an emergency savings fund. (For instance: If you save $50 a month, you will have $600 for emergencies within one year.

Here are some other ways to avoid taking out a short term loan:

• Try borrowing from family members or friends.

• Ask your employer if they have a payroll advance program or a lending program.

• Can you get a credit card? Credit card interest rates are much less expensive than payday loans.

• Ask your utility companies or other creditors for a payment plan.

• Build up your savings over time to create an emergency fund for your family.

FeeLoan Amount Annualized Interest Rate

$300 $45 391%+ =

Tip: Visit www.feedthepig.org for more information about planning ahead and managing your financial future.

What’s The Deal With Credit? Your credit report tells potential lenders how responsible you’ve been with credit in the past, so that future lenders can determine how “credit-worthy” you are. For this reason, it’s important to check your credit report!

Steps to better credit:

Check your score and history at no cost!

You can request a free copy of your credit report from each of three major credit reporting agencies – Equifax, Experian, and TransUnion – once each year.

VISIT AnnualCreditReport.com

You are also entitled to see your credit report within 60 days of being denied credit or if you are on cash aid, unemployed, or your report is inaccurate. If you spot an error, request a dispute form from the creditor within 30 days of receiving your report.

Get help if you need it!

Don’t like what you see on your report? Seek out a reliable financial counselor. There are places that can help! Even if you have prior issues with credit, it’s never too late to turn things around with the right support.

CHECKYOUR

CREDIT

SurePath Financial Solutions is a nonprofit based in California. They have counselors that can help address your concerns and start your path to financial wellness.

Contact SurePath Financial Solutions

Check YOUR

CREDIT repor tto FIND OUT how CREDIT

WORTHY YOU are!

fair620–659

Bad350–619

good660–749

excellent750–850

Seek Out Financial

HELP!It’s NEVER too Late to RAISE

YOUR Credit SCORE!

Call (877) 615-7873Visit their website at SurePath.org

CALL toll-free 1- (877) 322-8228

Visit your local library if you need to use a computer.

Still have questions about your financial situation?

Call for more info on financial education, counseling and debt alleviation programs in your area.

MONTEREY60 Garden Court, Ste. 350 • Monterey, CA 93940

831.372.8026

SALINAS376 Main Street • Salinas, CA 93901

831.757.3206www.unitedwaymcca.org