PERSONAL FINANCE
YOU CAN AVOID PAYING INTEREST IN PAYING A CREDIT CARD BY PAYING THIS OFF MONTHLY.
WHAT IS YOUR STATEMENT BALANCE?
NOTE: STATEMENT BALANCE IS DIFFERENT THAN TOTAL BALANCE - IT CAN ALSO BE CALLED A “CYCLE BALANCE”. A STATEMENT BALANCE IS THE “NEW BALANCE” THAT APPEARS ON YOUR MOST RECENT BILLING STATEMENT. THE TOTAL BALANCE IS THE FULL BALANCE ON YOUR ACCOUNT, INCLUDING TRANSACTIONS SINCE YOUR LAST CLOSING DATE. IT ALSO INCLUDES AMOUNTS UNDER DISPUTE - ACTIVITY IN THE LAST 24 HOURS MAY NOT BE REFLECTED.
ONE OF THE FACTORS PEOPLE USE WHEN CHOOSING A BANK.
WHAT IS LOCATION, CONVENIENCE, RATES, OR FEES?
THIS IS SOMETHING EVERY SPENDING PLAN SHOULD HAVE.
WHAT ARE GOALS?
WHAT IS A INTEREST RATE?
NOTE: WHEN CONSIDERING BORROWING MONEY, CONSIDER WHAT THE INTEREST RATE IS AND WHAT TYPE OF INTEREST IT IS.
ONE OF THE PLACES YOU GO ON CAMPUS TO GET ASSISTANCE WITH SCHOOL FINANCES.
NOTE: THE OFFICE OF FINANCIAL AID PHONE NUMBER IS: 303-492-5091 AND THEIR OFFICE HOURS ARE MONDAY - FRIDAY, 9AM - 4:30 PM.
THIS IS ONE WAY TO REDUCE YOUR CREDIT CARD DEBT.
WHAT IS PAY MORE THAN THE MINIMUM PAYMENT REQUIRED, CONSOLIDATE DEBT WITH A PERSONAL LOAN, PAYING OFF HIGH-INTEREST DEBT FIRST, OR PAY OFF THE SMALLEST BALANCE FIRST?
NOTE: THERE IS NOT A SPECIFIC BEST PRACTICE, AND IT IS UP TO YOU HOW YOU PROCEED, BUT THESE ARE SOME OPTIONS.
WHAT ARE BANKS OR CREDIT UNIONS?
NOTE: THERE ARE OTHER FINANCIAL INSTITUIONS BESIDES BANKS OR CREDIT UNIONS AND IT'S IMPORTANT TO FIND AN INSTITION THAT MEETS THE PERSONAL AND FINANCIAL NEEDS.
THIS MAY INCLUDE YOUR PAYCHECK, CHILD SUPPORT, ALIMONY, OR OTHER SOURCES OF REVENUE.
WHAT IS YOUR SOURCE OF INCOME?
ITEMS WITH ECONOMIC VALUE THAT AN INDIVIDUAL OR ENTITY OWNS.
WHAT ARE ASSETS?
THIS COULD BE USED TO PROTECT YOUR CREDIT SCORE.
WHAT IS PAY YOUR BILLS ON TIME, SETTING UP DIRECT DEPOSIT, OR CONTACTING YOUR CREDIT PROVIDERS IF YOU’RE EXPERIENCING FINANCIAL DIFFICULTIES?
NOTE: THERE IS NOT A SPECIFIC BEST PRACTICE TO PROTECT YOUR CREDIT SCORE, BUT THESE ARE SOME. IF YOU HAVE QUESTIONS OR CONCERNS, PLEASE TALK TO A FINANCIAL SPECIALIST.
BUYING A HOME RATHER THAN RENTING IS CONSIDERED AN INVESTMENT. AS YOU PAY OFF YOUR MORTGAGE YOU BUILD THIS.
WHAT IS EQUITY?
NOTE: EQUITY IS THE AMOUNT OF MONEY THE OWNER OF AN ASSET WOULD BE PAID AFTER SELLING IT AND ANY DEBTS ASSOCIATED WITH THE ASSET WERE PAID OFF. FOR EXAMPLE, IF YOU OWN A HOME THAT’S WORTH $200,000 AND YOU HAVE A MORTGAGE OF $50,000, THE EQUITY IN THE HOME WOULD BE WORTH $150,000.
THIS HAPPENS WHEN YOU WRITE CHECKS FOR MORE MONEY THAN IS IN YOUR ACCOUNT.
WHAT IS AN OVERDRAFT?
NOTE: BE AWARE OF OVERDRAFTING YOUR ACCOUNT BECAUSE SOME FINANCIAL INSTITUIONS CHARGE FEES FOR OVERDRAFTING.
EVERY SPENDING PLAN SHOULD BE THIS.
WHAT IS REALISTIC?
NOTE: IT'S IDEAL IF YOUR SPENDING HABITS ARE REALISTIC TO YOUR INCOME FLOW TO ENSURE THAT YOU DON'T TAKE ON ADDITIONAL DEBT OR POTENTIALLY OVERDRAFT YOUR ACCOUNT.
IS A DEBT OR AMOUNT OF MONEY THAT AN INDIVIDUAL OR ENTITY OWES TO ANOTHER INDIVIDUAL OR ENTITY. EXAMPLES INCLUDE: LOANS AND CREDIT CARD DEBTS.
WHAT IS A LIABILITY?
THIS REPRESENTS THE AMOUNT OF MONEY LEFT OVER AFTER ALL BILLS HAVE BEEN PAID.
WHAT IS DISCRETIONARY INCOME?
PREFERABLY, THE ONLY TYPES OF PURCHASES THAT SHOULD BE FINANCED ARE THESE.
WHAT ARE LARGE PURCHASES (SUCH AS A HOUSE OR CAR)?
NOTE: FINANCING A PURCHASE USUALLY INVOLVES ASKING A FINANCIAL INSTITUTION (A BANK, CREDIT UNION, FINANCE COMPANY) OR ANOTHER PERSON TO LEND YOU MONEY THAT YOU PROMISE TO REPAY AT SOME POINT IN THE FUTURE - THIS CAN INVOLVING A CREDIT SCORE CHECK.
THIS SHOULD BE CHECKED MONTHLY TO ENSURE PROPER RECORD KEEPING AND HELP PROTECT AGAINST IDENTITY THEFT.
WHAT IS A BANK STATEMENT?
THE TERM USED TO DESCRIBE THE THINGS YOU SPEND YOUR MONEY ON.
WHAT ARE EXPENSES?
IS A THREE DIGIT NUMBER THAT MEASURES AN INDIVIDUAL’S TRUSTWORTHINESS TO PAY BACK LOANS OR DEBTS.
WHAT IS A FICO SCORE OR CREDIT SCORE?
WHEN SAVING MONEY FOR A LONGER PERIOD OF TIME, BUT YOU WOULD STILL LIKE EASY ACCESS IN CASE OF AN EMERGENCY, THIS TYPE OF INVESTMENT TYPICALLY HAS BETTER YIELDING INTEREST RATES THAN A STANDARD SAVINGS ACCOUNT.
WHAT IS A HIGH YIELD SAVINGS ACCOUNT (HYSA) OR CERTIFICATE OF DEPOSIT (CD)?
NOTE: HYSA TEND TO BE MORE FLEXIBLE THAN CDS. CDS CAN HAVE PENALTIES FOR EARLY WITHDRAWALS. WHEN CONSIDERING THESE OPTIONS, PLEASE DO YOUR RESEARCH TO ENSURE IT'S RIGHT FOR YOU.
THE TOTAL AMOUNT OF MONEY AND ASSETS YOU HAVE MINUS THE TOTAL AMOUNT OF MONEY YOU OWE IS THIS.
WHAT IS YOUR NET WORTH?
THE LIMIT OF MONEY DEPOSITED IN A BANK THAT IS INSURED BY THE FDIC (FEDERAL DEPOSIT INSURANCE CORPORATION).
WHAT IS $250,000?
NOTE: IF YOUR FINANCIAL INSTITUTION IS A CREDIT UNION, IT IS INSURED BY NCUA UP TO THE SAME AMOUNT - PER SOCIAL (250,000 PER PERSON).
ONE OF TWO TYPES OF EXPENSES.
WHAT ARE FIXED OR FLEXIBLE (VARIABLE) EXPENSES?
NOTE: FIXED EXPENSES ARE ITEMS THAT YOU WILL PAY ON A REGULAR BASIS (CAR INSURANCE, RENT, STUDENT LOAN PAYMENTS, ETC) AND FLEXIBLE EXPENSES CHANGE PERDIOICALLY (GROERIES, ENTERTAINMENT, VACATIONS, ETC).
IS A RETIREMENT SAVINGS PLAN OFFERED BY MANY EMPLOYERS THAT HAS TAX ADVANTAGES FOR THE SAVER.
WHAT IS A 401(K)?
NOTE: THERE ARE TWO TYPES OF 401(K) - TRADITIONAL AND ROTH. A TRADITIONAL 401(K) ALLOW YOU TO MAKE CONTRIBUTIONS BEFORE TAXES, BUT YOU’LL PAY INCOME TAX ON THE DISTRIBUTIONS IN RETIREMENT WHILE A ROTH 401(K) ARE FUNDED WITH AFTER-TAX MONEY THAT YOU CAN WITHDRAW TAX-FREE ONCE YOU REACH RETIREMENT AGE.
THE BEST TIME TO BEGIN SAVING FOR RETIREMENT.
WHAT IS AS SOON AS POSSIBLE?