1. Lape’s Laws of Credit and Money THE MOST IMPORTANT INFORMATION YOU WILL EVER LEARN!!!

2. 1. Pay finance charges (interest) under THREE conditions Mortgage—to purchase your home— no longer than 15 year mortgage. Education—school loans—BE CAREFUL don’t go too far in debt be smart about where you go to school—Get the most bang for your buck! Car—buy a used car and run it into the ground—new cars are expensive and lose value rapidly—2 year maximum length on your car loan.

3. 2. Be honest about your financial situation Do not try to impress people with money you do not have Do not try to “Keep Up with the Jones.” Buy what you can afford focus on needs not wants and be honest with what you really need Abide by the 20/10 rule If you wants lots of stuff you need a job that will pay you lots of money.

4. 3.Guard your Credit History with your Life Don’t become a deadbeat and lose your creditworthiness You need to be creditworthy to Get a job Qualify for loans Get a low APR Reduce your car insurance rates Get a cell phone Be attractive to your significant other

5. 4. Beware of Credit Cards Pay all credit cards in full within the grace period Be careful not to overuse and impulse buy NEVER TAKE CASH ADVANCES for credit cards Be a “convenience” user not a “revolver user of cards NEVER PAY FINANCE CHARGES Pay on time to avoid late fees SAVE then BUY Defer your gratification

6. 5. SAVE, SAVE, SAVE!! Save for emergencies—have six months worth of take home pay in a savings account—DO NOT PUT THIS MONEY IN THE STOCK MARKET! After you get your first career job start saving for retirement Save 10% of you gross pay PAY YOURSELF FIRST—money should be taken out of your paycheck and placed in a 401K before you can spend it Get a financial advisor who you can trust and is not paid on commission. REMEMBER IT IS BETTER TO BE OLD WITH CASH VERSUS OLD AND POOR!!

7. 6. Know your significant other’s financial condition DO NOT MARRY A DEADBEAT! Love does not conquer bad credit Since you will be a saver, you need to marry a saver not a spendthrift Demand to see the credit reports of your significant other BEFORE tying the knot.

8. 7. Never Lease Anything Except Housing Never lease a car—BIG Ripoff Purchase used cars and run them into the ground. Never go to RENT-A-CENTER or other rent to own places Read the lease for your apartment or house and be careful to look for damage to the property prior to moving in so YOU are not held responsible.

9. 8. Anything Involving Money should be in Writing If you lend money to a friend have them sign a promissory note. NO VERBAL CONTRACTS Read all contracts thoroughly REMEMBER the most important print is the smallest print— READ THE FINE PRINT KNOW WHAT YOU ARE SIGNING

10. 9. Never Mix Business and Friendship When you purchase services or products deal with strangers. Friends can take advantage of you and rip you off faster than anyone. It is bad enough to be ripped off--it is REALLY bad to have a friend take advantage of you. Remember someone who is trying to sell you something will always tell you what you want to hear BE SKEPTICAL IF IT SOUNDS TO GOOD TO BE TRUE IT IS NOT TRUE!!

11. 10. Balance Your Checkbook Never pay Service Charges Shop around for the best deal— use a credit union. Balance your check book so you don’t bounce checks and pay overdraft fees.

12. Remember Lape Says Think before you spend money Only borrow money when absolutely necessary If you want to live large you have to have a large job! You can’t borrow your way into a lifestyle!