PERSONAL FINANCES Project

In this project you will  Create and Manage a Personal Budget  Discuss the Pro’s and Con’s of a selected Credit Card  Research ways you can develop your Credit Fitness.  Research ways you can protect your identity

CREATING AND MANAGING A BUDGET: KNOW YOUR HABITS In the first slide you will discuss your buying habits by tracking your expenses to fully understand how you spend your money

Total Monthly Take-Home Income (minus taxes, health insurance, other payroll deductions, 401K) $ Household Expenses Rent or Mortgage $ Utilities (water, sewer, gas/electricity) $ Home/Cell Phone $ Groceries $ Other Household (Cable, etc.) $ Transportation Expenses Car Loan Payment $ Gas, Tolls, Parking, Other $ Car Insurance (set aside if paid annually or semi-annually) $ Other Expenses Pet (Food, Vet) $ Insurance/Co-pays, Prescriptions $ Fun (entertainment, dining out, move rental, etc.) $ Minus Total Expenses$ Total Monthly Surplus/Shortage$ I N THE SECOND SLIDE YOU WILL RESEARCH WAYS YOU CAN MANAGE A BUDGET : INCOME V EXPENSES

In the next slide you will discuss ways you can save money ITEMANNUAL COSTALTERNATIVEANNUAL COST One Cup of coffee daily at a Coffee shop ($3) $1,095 Gourmet coffee brewed at home $176 One CD weekly ($12.99) $ 675 Download individual songs you like ($1) $375 Pizza delivery once a week ($10) $ 520 Gourmet frozen pizza at the grocery ($5) $260 Eating lunch out 5 days a week ($5 per lunch) $1,250Bring your lunch to work 5 days a week ($1.50 per lunch) $375 Total Annual Savings of $2,354!

I N THE NEXT SLIDE YOU WILL RESEARCH THE BUYING OF A NEW CAR VS. USED CAR  New 2009 Honda Accord EX  Cost: $24,000  Payment: $476  Insurance: $ 78 Monthly difference: $176 Annual difference: $2,112 Used 2003 Honda Accord EX Cost: $14,483 Payment: $305 Insurance: $ 73 Car Cost/Payment Source: Based on financing for 60 months. New car interest rate of 7.11%; Used car interest rate of 7.35%. Car Insurance Cost Source: Insurance rates for a 25-year-old single male with a clean driving record.

INCOME Take-home pay minus taxes, social security, health insurance, 401K The next slide will show a sample budget comparing Income to expenses. FIXED EXPENSES:60% Rent/Mortgage, Utilities, Home/Cell phone, Commuting, Car payment, Insurance, Work-related (clothes, dry- cleaning), Student Loan Payments, Credit Card Payments SAVINGS:20% Money set aside for vacations, major repairs, new appliances, to pay down existing debt, emergencies a down-payment on a car or house, charity RETIREMENT:10% Ideally, 10% of your gross income JUST FOR FUN:10% Everybody needs some fun

The next slide: will focus on research pertaining to the pro’s and con’s of purchasing a credit card that you will select

ALL of the potential costs associated with using the credit card you selected. The next slide will discuss:

 May charge late fees if you are late making a payment? Could be as much as $50!  May not have grace periods? Meaning interest starts accruing as soon as you charge.  May have low introductory interest rates that increase dramatically over time? That 2.9% could go to 22% just like that!  May charge annual fees? Could cost you $50 just to have the card!  May charge a transaction fee for cash advances and the interest starts immediately? A percentage of your cash advance amount is added to your balance.  May charge a fee for going over your limit, and for every month you remain over your limit? Another $50 added to your balance! Examples of the fees the Credit Card company may charge.

The next slide will discuss why credit fitness is important to you! Credit history can impact:  Purchasing a car/home  The rate you receive on a loan  Renting an apartment  Auto and life insurance  Seeking employment

F INAL SLIDE IS RESEARCHING WAYS THAT YOU CAN PROTECT YOUR IDENTITY !  Shred documents before trashing Pre-approved credit offers, bank/credit card statements, credit card receipts  Be careful at ATMs, or when using your debit card that others do not see your PIN  Have checks delivered to your bank rather than your home  Do not put checks in the mail from your home mailbox--drop them off at a U.S. Mailbox or the U.S. Post Office  Empty your wallet of all extra credit cards and social security numbers, etc.  Never give out any of your personal information over the phone