Banks & Credit Unions What’s the difference?

Do’s of Checking Track your expenses Track your balance Set up e-alerts or text alerts

Do’s of Checking Get a “Hold” of Your Debit Card What is a Hold? Authorization for a purchase Isn’t always the same as your purchase amount Be careful at restaurants, gas stations and hotels

Don’ts of Checking Don’t only use online banking to know your balance Don’t assume the balance on your ATM receipt is correct

Do’s of Budgeting BUDGET and stick to it! Write down your income and expenses Save! Pay yourself first Use resources like mint.com Set limits on food, entertainment, etc… IN OUT

Do’s of Budgeting Have a money plan: 1.Emergency Fund - $ Save 3-6 months living expenses 3.Pay off debt – first credit then student loans

If Yes: Request a low credit limit Get one card Should You Have a Credit Card?

Try not to carry a balance If you do, always pay more than the minimum Avoid making any cash advances Example: $1000 balance, $25 each month at 18% APR = 62 months to payoff and $ in interest Make the payment $35 = 38 months to payoff and $ in interest Do’s of Credit Cards

Do’s of Credit Know your credit score and which type of score you’re given. Get free copies of your credit report - annualcreditreport.com Pay bills on time Try to pay your credit card bill in full each month to avoid any interest fees. Be a deadbeat

What’s in a credit report? Identifying information (name, SSN, date of birth, address) Employment history Creditors and payment history Bankruptcies, judgments, liens, lawsuits Inquiries you initiated (loan and credit applications, but not credit card solicitations) Why care about your credit?

What’s a credit score? Number that represents creditworthiness “How likely are you to repay the loan?” Range: 300 to 850 Good Score is anything above 720

Credit Score Matters $25,000 Honda Accord for 60 Months ScoreRatePaymentInterest > %$489.06$4, %$506.82$5, %$524.96$6, %$562.36$8, < %$588.13$10,286.91

Components of a credit score Payment history (35% of score) Amounts owed to creditors (30%) Length of credit history (15%) New credit (10%) Types of credit currently in use (10%)

Who can look at your credit report? Lenders Landlords Potential employers Insurance companies

Student Loans Federal Direct Grad PLUS Loans: Academic Year Interest Rate: 7.21% Origination fee is 4.292% Applicant cannot have adverse credit history Borrow up to the cost of attendance

Do’s of Student Loans Be involved in your student loan consolidation process Grad School Loan forgiveness High interest/variable rate loans Prepayment penalties Perks Pay more than the minimum payments

Bonus Tips! Bring your lunch to school or eat at home Save the latte for a treat, not everyday Rate shop Utilize discount clothing stores and consignment shops Meal plan and make a grocery list ahead of time to avoid overbuying

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