Controlling your spending
What is a way to control your money
Learn emotional appeals used by advertisers and resist
Expenses
Anything that you must pay for
Financial aid typically awarded based on academic merit that does not need to be paid back
Scholarships
Name a characteristic of a bank
Operate for profit and are loyal to stockholders
Or
Most services offered to account holders
Name a risk of credit cards
Don’t overspend
Know how much you can afford to pay for a particular item
Make timely payments
Who are you going to bring with you shopping
Thrifty friends
Grants
Financial aid typically given to students based on need, and that does not need to be paid back
Are purchased with cash and assure the receiver that the cash is available and that the money order won’t “bounce”
Money orders
Name a characteristic of a credit union
Owned by their members
Operate for the benefit of their members, who are called shareholders
Services are offered only to members
How do you build credit
Use credit
Demonstrate you’re a good credit risk
Start by obtaining a small amount of credit
Make monthly, on-time payments
Any ways outside of your direct college path to learn about safe spending habits
Take a class
Student loans
Specific type of credit extended to students that must be paid back
Type of higher-interest investment savings plan where money is placed in an account for a specific period of time
Certificate of deposit (CD)
Characteristic of a savings account
Can help you manage your money over the long term
Designed to sit for long periods of time and collect interest for you
What is the most used credit score
FICO (Fair Isaac & Co.)
One strategy to help with money management when working with cash is?
Budgeting
Credit
Financial resources that are provided based on the belief that repayment will occur at some point in the future
Can be calculated daily, monthly, quarterly, semiannually, or annually; and is based on the amount of money in one’s account
Compound intrest
Characteristic of a checking account
Can help you manage your money day to day
Designed for spending whenever you need to
Why is credit important
It shows people your credit worthiness and responsibility
What should you spend money on first when planning on managing money
Essential goods
NSF
Nonsufficient funds
Negotiable financial instrument that allows the stated payee to receive the amount of money written on the check
Cashiers check
Steps to open a bank account
Discuss your needs with a financial officer
Choose the accounts that best meet your needs
Be able to prove your identity
Make an initial deposit to open your accounts
Obtain an ATM card
Name a way on how to fix your credit
Begin making payments on time immediately
Purchase a small item from a store using store credit, and make your payments by the due date every time
Work with your bank to obtain a secure credit card
Get a copy of your credit report and dispute any errors that you find
Don’t apply for any new credit cards