1. Stater Financial Literacy
Banking & Budgeting
Stater
Financial Literacy

2. Banking Options Retail Banks Credit Unions Ex: Chase, Wells Fargo
Regional or national – many branches & ATMS
May be quicker to roll out new technology
Banking Options
Credit Unions
Ex: VyStar, Community First
Local – won’t find branches when travelling
Non-profit
May have better customer service

3. Account Options Checking Accounts Savings Accounts
Research fees & interest rates!
Transfer money with checks or access directly with a debit card
Use for daily transactions and bills
Unlimited deposits/withdrawals
Account Options
Savings Accounts
Limited transfers and withdrawals
Higher interest than checking accounts
May have a higher minimum balance

4. Managing Bank Accounts
Overdrafts
Occur when more money is withdrawn from an account than that account contains
Must repay over-drafted funds as well as fees
Check your online bank records regularly!
Bank statement
Contains monthly account history
Lists purchases, withdrawals, deposits, and fees
Can request through mail or online
Managing Bank Accounts

5. Phase 1: Assess your personal and financial situation (needs, values, life situation).
Phase 2: Set personal and financial goals.
Phase 3: Create a budget for fixed and variable expenses based on projected income.
Phase 4: Monitor current spending (saving, investing) patterns.
Phase 5: Compare your budget to what you have actually spent.
Phase 6: Review financial progress and revise budgeted amounts.
The Budgeting Process

6. Income Gross income – amount earned before deductions
Net income – amount received after deductions
Deductions:
Income tax withholdings
Payroll tax withholdings
Insurance and benefit expenses
Savings deductions
Income

7. Balancing Your Budget Needs Wants Mandatory expenses Examples:
Rent or mortgage payments
Transportation
Groceries
Balancing Your Budget
Wants
Discretionary expenses
Examples:
Going out to dinner
Buying movies

8. Balancing Your Budget Fixed Expenses Variable Expenses
Constant each month and should be planned first
Rent or mortgage
Insurance payments
Balancing Your Budget
Variable Expenses
Can change each month
Plan after fixed
Clothing
Food

9. Balancing Your Budget Spending Saving
Anything you spend money on currently
Needs and wants
Fixed and variable
Balancing Your Budget
Saving
Can be fixed or variable
Investing a portion of income for the future or for short-term goals
Savings accounts
Retirement accounts
Oher investments