1. Building Your Financial Foundation

2. Do you think people are more likely to buy something they do not need when they use a credit card? What is Credit? ? C-1

3. What is Credit? Bad Credit: Purchases $1000 Interest Rate 27% Minimum Payment $23 Years to Pay off 12 years Interest Paid $2,312 Actual Cost $3,312 Good Credit: Purchases $1000 Interest Rate 7% Minimum Payment $10 Years to Pay off 12 years Interest Paid $440 Actual Cost $1,440 Purchase with Savings: Purchases $1000 Amount Saved/month $125 8 months to save $1,000 Interest earned on money in savings $30 Actual Cost $970 C-1

4. Credit cards can be a tool to build your credit rating. To avoid interest and extra expenses pay your credit card balance off in full every month. Paying off your credit cards in full allows you to build your credit history without paying interest charges. WARNING: Before getting a credit card: o Have 6 months worth of bills saved o Have a working budget o Control your spending o Have a clear written plan in place What is Credit? C-1

5. Identity Theft C-3

6. Types: Social Security Identity Theft Driver’s License Identity Theft Financial Identity Theft Medical Identity Theft Insurance Identity Theft Children’s Identity Theft Criminal Identity Theft Mortgage Identity Theft Identity Theft C-3

7. Identity Theft C-3 Tips: Use only a secure server to access the Internet. Shred any document with personal information. Keep your Social Security card, passport, license, and other valuable personal information hidden. Get a mailbox that locks. Opt out of unnecessary (sometimes risky) credit or insurance offers. Call Never provide your social security information or private contact information over the phone–unless YOU initiated the phone call. Delete any suspicious email. For debit and credit cards Don’t carry your PIN in your wallet, purse, or pocket or write it on your card.