Budgeting Basics
True or False: A budget cannot include things that you want such as takeout or cigarettes.
False!
This type of card lets you borrow money up to a limit and pay it back later.
A credit card
True or False: Expensive items are always better quality.
false!
What is a place you can keep money safe and earn interest on it?
A savings account through a bank
If someone promises you free money or a prize but asks for your info or a fee first, it’s probably this.
A Scam!
What does it mean to have a balanced budget?
When your income is the same or more than your expenses.
Ex Nancy makes $1200 per month with her SSI check and part time job, she started budgeting and her expenses add up to $1100 therefore she has a balanced budget since she makes $100 more than her expenses.
What is a free way to check your credit score?
Credit Karma or Nerd Wallet
Or request a Free credit report from Equifax, Experian, and TransUnion
Buying something just because you are sad or stressed is an example of this.
Emotional Spending
"retail therapy"
True or False: If I am on SSI or SSDI and I get a job all my benefits will stop, so I shouldn't bother working.
False! Benefits may decrease a bit while earning extra income but check with a benefits advisor, you'd be surprised how much you can earn!
What’s the main difference between a pyramid scheme and a legitimate business?
pyramid schemes focus on recruiting people instead of selling real products or services?
This is the term for money set aside for unpredictable expenses like car repairs or medical bills.
An Emergency Fund
What is a con to using a credit card or taking out a loan?
-Falling behind on payments can lead to interest on what you owe and increase debt even more
-Illusion of free money.
-Bad credit can hurt our ability to make big purchases (car, apartment, house, boat)
what kind of spending do you do without planning or thinking ahead?
Impulse spending
What is a retirement savings account offered by many employers?
A 401K,
sometimes a 403b is offered instead
What’s the name of a scam that tricks people into giving away personal info online, often through emails
phishing
What is the first step to creating a budget?
Tracking all your spending for one month
What is 1 thing that contributes your credit score?
-Payment History (paying credit off on time or not)
-Credit usage
-Credit age (how long you have been using credit)
-number of accounts you have
Sales, "limited-time" offers, and shopping when hungry are examples of this.
Spending triggers
How can you save money on clothes
Buy secondhand clothes from Goodwill, Savers or other thrift stores. Or off online sites like Poshmark
If needed get a referral to a clothing closet (Matthew's closet, etc.) for free clothes
Buy higher quality clothes so you don't have to replace as often
Do your research and compare prices
What is an impersonation scam?
A scam where someone pretends to be from your bank, family member or a government agency to get your personal information or money.
Housing (rent/mortgage), utilities, health, savings, groceries/food, credit payments, subscriptions, insurance payments, transportation, clothes, pet care, entertainment, etc.
Keeping your credit card balance low helps your score. Try to use less than this percent of your limit.
30%
What is the strategy that reduces impulsive purchases by having you wait a set number of hours before buying called?
The 24-hour Rule
Name 2 free activities you can do in Rochester or the surrounding area
(varies)
- bike ride (R Community Bikes)
- events at the library, borrow a book, movie
- take a walk through a park (Highland, Cobb's Hill), or walk through neighborhood of the Arts, or walk along the Canal
- attend Jazz fest, lilac fest or Cornhill Arts fest (summer)
-window shopping
etc,
What are cash advance apps and what is the danger of them?
Payday loan or cash advance apps allow users to access small, short-term loans before their next payday (Ex Dave, Chime, EarnIn)
They have very High Fees & Potential for a Debt Cycle!