Show:
Building Healthy Financial Habits
Budgeting and Savings
Credit Basics
Banking Basics
USCCU Basics
100

What are needs and wants? Define and give examples. 

Needs- Things that are necessary for you to live

Wants- Things that you don't necessarily need but desire.

  • Ex. of needs might be food, rent, school supplies, bus pass.
  • Ex. of wants might be specialty coffees, designer clothing, and eating out.
100

What is a budget and why is it important? 

A budget is a financial tool that allows you to plan and visualize how much income you receive and track your expenses month-to-month.

Budgeting helps you clearly see your finances and identify what areas you can improved on.

100

What are some ways to build credit? 

  • Apply for a credit card
    • Student Cards
    • Secured Card
    • Store cards (charge cards) - careful with interest and fees!
  • Apply for a loan
    • Credit builder loan
    • Secured Personal loan
100

What is the difference between a checking and savings account? 

Savings: A savings account is a deposit account that is specifically designed to hold money that you don't plan on spending immediately

Checking: Used for everyday spending and paying bills. Is usually more easily accessible than savings

100

Name one thing you learned throughout the financial literacy series. 

n/a

200

What should we reflect on before diving into budgeting?

1. Our culture/background

2. Our Values

3. Our Goals

200

How can you start budgeting?

1. List all forms of income and expenses

2. Track your spending

3. Identify areas that can be improved on 

4. Check your bank statements

(or any other acceptable answer)

200

What's the difference between a hard credit inquiry and soft credit inquiry? 

  • Soft Inquiries
    • Don't affect your credit score
    • Done by creditors to provide preapproved offers
    • Can be done without your consent
    • ex. when you receive a credit card offer in the mail, background checks, or when you check your credit
  • Hard Inquiries
    • Affect your credit score (though shouldn't be a big deal in the long run unless you apply for multiple in a short period).
    • Done by creditors and lenders when you apply for credit or loan
    • Need to give written consent
    • ex. when applying for a car loan you may be asked to sign a credit report authorization form, credit card applications, etc
200

Why should we avoid payday lenders?

The fast payoff timeline leads to many borrowers rolling over loan balances leading to an endless debt cycle.

APRs can range between 115 and 650 percent or more

200

Who can join the USC Credit Union?

Anyone who lives, regularly works, or currently attends school in the Los Angeles or Orange Counties, or operates a business, corporation, or other legal entity in Los Angeles County or Orange County.

300

What can you do to keep track of your spending? 

Journal or record your monthly spending in a journal, online document, or by using an app. 

300

What is compound interest?

Compound interest is when you earn interest on both the money you’ve saved and the interest you earn. - CFPB

Investment Accounts have historically provided the greatest returns when it comes to compound interest. Think IRA, ROTH IRA, 401K, etc..

300

What two components of credit score calculations affect your credit score the most?

1. On time payments (35%)

2. Amount Owed (30%)

3. Length of Credit History (15%)

4. Credit Mix (10%)

5. New Credit (10%)

300

What are overdraft fees?

  • Overdraft fees may occur when a payment is authorized and there are not enough funds in your bank account to fully cover the transaction.
  • Your bank may hand over the money for the transaction and charge you a fee instead of declining the transaction.
300

What documents/materials do you need to open a bank account?

  • A valid, government-issued photo ID

  • Birthdate, SSN or ITIN, phone number,, email 

  • Sometimes an initial deposit.

400

What is the 50-30-20 rule?

50% Needs

20% Savings

30% Wants

400

Name three different types of savings accounts.

1. Regular Savings

2. High Yield Savings Account (typically online)

3. Money Market Account

4. Certificate of Deposit

Remember savings accounts serve their purpose, but we also want to take advantage of investing and making our money work for us!

400

Why does good credit matter? 

  • Credit will determine your ability to receive a loan and the interest rate you will be charged
  • Credit is tied to many things such as:
    • Car loans
    • Employer background checks
      • May vary based on state and employment type
    • Ability to rent an apartment or get a phone
    • Security deposit for bills
400

What agency regulates and insures your bank account?

Traditional Banks - FDIC up to $250,000

Credit Unions - NCUA up to $250,000

400

What is the difference between a credit union and a traditional bank?

Credit Union: Not for profit, member owned, member/community focused, typically lower fees and lower rates on loans than traditional banks  

Bank: Focused on profit maximization for shareholders, typically higher fees and higher rates on loans 

500

What are examples of being financially healthy?

Being debt free or having a manageable amount of debt.

Earning enough to cover your weekly expenses. 

Feeling confident about your finances.

Having a savings etc..

500

What is an APY?

Annual Percentage Yield or APY is the rate of interest earned on your savings account balance.

500

What is the difference between a credit score and a credit report? 

  • A credit score is a 3-digit number that serves as a snapshot of your financial situation
  • It is used to represent the likelihood that you will pay your bills/loans/debt on time

CREDIT REPORT

  • AKA credit file or credit history
  • Your personal credit report includes a record of your personal information, account summary, employment history, account and payment history, collections and public records, and inquiries.

There are three bureaus that will collect this information! Experian, Equifax, TransUnion

500

What system can prevent you from opening a bank account?

ChexSystems is a consumer reporting agency that collects and reports information on an individual’s past checking and deposit accounts. 

If you are not in good standing with a bank you previously had a relationship with, it could prevent you from getting another bank account.

500

What does USCCU's Wealth Management department offer that can help you build and maintain wealth?

Some examples include:

1. Create a Financial Plan 

2. Investing Guidance (Retirement, 529, etc)

3. Estate Planning

4. Life Insurance