1. The “Need-to-knows” for your financial future

2. * Do you ever want to buy a car? * Do you ever want to own your own home? * Do you know how debt can impact you? * Do you want to pay more for EVERYTHING? * Do you want to save money? * Do you want to understand how credit can impact you?

3. * “I don’t need to keep track of the checks I’ve written, I’ll remember!” * Forgetting will cost you! Some banks charge as much as $45 per check if you overdraw your account! OUCH! * The merchant you wrote the check to can charge you too! DOUBLE OUCH! * The bank can’t see what checks you have written until they are presented for payment, so your balance won’t reflect them. They are called “outstanding checks”. * When you write checks, put them in your register and deduct them from your balance. * What happens if I don’t pay the bank back the money I owe?

4. * It’s so EASY to swipe and go! I don’t have to wait for checks to clear and I always know what’s in my account! FALSE! * Debit Cards can take up to three days to clear depending on the merchant. * You can still overdraft and incur fees with a debit card! * Accessing an ATM (cash machine) can have fees on both sides! Some banks charge you to use another bank’s ATM. DOUBLE WAMMY! * If there is a Visa ® or MasterCard ® logo on my card, I am earning credit. FALSE! * Keep a register!

5. * Online Banking is a GREAT tool to track your finances! * You can also use your smart phone when you are on-the-go! * Remember: Your online banking can’t see checks you have written until they clear! Mark them on your register as they clear. * Budgeting: Finding out where your money is going is the best way to see where you are over spending. Especially as students, keeping a budget will be KEY to avoiding overdrafts. Online banking can be a great tool to help. * Be careful with online purchases! Never use links from emails to access websites to log in to accounts!!!

6. * What Does It All Mean? * FICO-Fair, Isaac and Company was founded in 1956 by Bill Fair an engineer and Earl Isaac a mathematician to help lenders determine risk. (Changed to Fair, Isaac Corporation in 2003) * Three credit bureaus within the FICO scoring system: Experian, Equifax, and TransUnion * AnnualCreditReport.com (Avoid the other sites) * Why check it every year? * How’s the score determined? * Paying ANY bills on time will help my credit… TRUE or FALSE?

7. * Employment! * It can be the difference between hiring you or someone else. * Utilities! * Deposits of upwards of $500 to start service on PUD alone! * Insurance! * You are considered higher risk and therefore charged more on your monthly premiums if you have poor credit. * Interest rates! * You will pay higher APRs therefore taking longer and costing more to pay off loans.

8. * Loans-Annual Percentage Rate (APR) * This is what the cost of borrowing that amount over the term of the loan. (The length of time you will have the loan is referred to as the “Term” of the loan) * Principal-the amount of money BORROWED. * Lets say you need to borrow $10,000 for a car, that $10,000 is your principal loan amount. * Interest- the amount of money it will cost you over the time of the loan. * Let’s say the car lot says they will make you the $10,000 loan for 5.00% APR for a 5 year term. What does that mean to you? This does NOT take into consideration: Sales Tax Loan Fee The Rate (calculated monthly) The amount it will cost you over the life of the loan Loan Amount Total you will pay over the term of the loan Principal and Interest Payment

9. * Higher credit scores = Lower Rates! * When you have good credit you are rewarded with lower APRs! This means it costs LESS to borrow money than someone with bad credit!

10. * Unsecured vs. Secured- What’s the Difference? * Will my score affect my Rate? * Why are credit cards so much more expensive than a car loan? It’s all about the COLLATERAL! * Collateral-Security pledged for the payment of the loan. If you don’t pay your loan as agreed you lose. * Revolving Loan vs. Term Loan?

11. * APY- Annual Percentage Yield is the based on the interest (money you’ll make) having your money in an interest earning (type of savings) account. (Savings, Money Market, Certificates of Deposit, and in certain types of checking accounts) * APYs represent the rate of interest based on a compounding (earnings based on interest being added back as part of the principle) over a annual period. * When banks quote the APY it helps you know you are comparing apples to apples. It is important to ask how it is compounded (calculated). Daily/Monthly/Quarterly Compounding for example. * Currently liquid (available without penalty) savings rates are between.05% APY and.15% APY. Term savings such as Certificates of Deposit, non-liquid (not available during the term) are anywhere from.10%APY to 1.00%APY based on amount and length of term.