1. Financial Jigsaw Puzzle 2011 Brought to you by Congressional Federal Credit Union

2. AgendaAgenda Our Goals & Dreams Our Goals & Dreams Spending Habits – Psychology 101 Spending Habits – Psychology 101 Who’s it hurting? Who’s it hurting? How do we Budget? How do we Budget? Repay Debt while saving for Other Goals Repay Debt while saving for Other Goals Set your Own Credit Score # Set your Own Credit Score # Investing Investing Summary Summary Our Goals & Dreams Our Goals & Dreams Spending Habits – Psychology 101 Spending Habits – Psychology 101 Who’s it hurting? Who’s it hurting? How do we Budget? How do we Budget? Repay Debt while saving for Other Goals Repay Debt while saving for Other Goals Set your Own Credit Score # Set your Own Credit Score # Investing Investing Summary Summary

3. Goals & Dreams  Grad School  First Paying Job  Marriage  First Home  Sports Car  Kids/Family  Great Job  Early Retirement  Grad School  First Paying Job  Marriage  First Home  Sports Car  Kids/Family  Great Job  Early Retirement

4. The Psychology of it all  Spending Choices/Self-Evaluation Keeping up with the Jones Keeping up with the Jones The Role of Advertising The Role of Advertising Spending Habits Spending Habits Impulse Buying/Retail Therapy Impulse Buying/Retail Therapy Why should we change these behaviors?  Spending Choices/Self-Evaluation Keeping up with the Jones Keeping up with the Jones The Role of Advertising The Role of Advertising Spending Habits Spending Habits Impulse Buying/Retail Therapy Impulse Buying/Retail Therapy Why should we change these behaviors?

5. Who’s it hurting?  1 medium cup of white chocolate mocha specialty coffee = $4.35  1 coffee a day per month = $130.00  365 cups = $1560 Brewing at home - $171.55 annually What else could we do with $1388.45?  1 medium cup of white chocolate mocha specialty coffee = $4.35  1 coffee a day per month = $130.00  365 cups = $1560 Brewing at home - $171.55 annually What else could we do with $1388.45?

6. Our Costly Vices Our Vices Ave. Weekly Cost Estimated Annual Cost Estimated 5- Year Cost Night Out w/ Friends $57.50$2,990.00$14,950.00 Lunches Out X 3 $30.00$1,560.00$7,800.00 Venti Specialty Coffee/Frap X 3 $15.00$780.00$3,900.00 Unused Gym Membership $10.00$502.00$2,600.00 Junk Food from Vending Machine $6.00$312.00$1,560.00 Bottled H2O $4.00$208.00$1,040.00 Total Cost$6,352.00$31,760.00

7. How do we Budget?  Stick to a Budget What is your income? What are your fixed expenses? What are your variable expenses? Keep good records of incoming & outgoing funds Needs vs. Wants 80 vs. 20  Stick to a Budget What is your income? What are your fixed expenses? What are your variable expenses? Keep good records of incoming & outgoing funds Needs vs. Wants 80 vs. 20 “Do something every day that you don’t want to do; this is the golden rule for acquiring the habit of doing your duty without pain.” -Mark Twain

8. Track Where It Goes & Construct the Budget  Write it all down Paper budget form Paper budget form Spreadsheet Spreadsheet  Computer Tracking  MoneyTracker & GoalBuilder w/ CFCU  Use checks or debit cards Put aside that credit card Put aside that credit card  Monitor ATM use  Write it all down Paper budget form Paper budget form Spreadsheet Spreadsheet  Computer Tracking  MoneyTracker & GoalBuilder w/ CFCU  Use checks or debit cards Put aside that credit card Put aside that credit card  Monitor ATM use Expect setbacks! Reward yourself along the way!

9. Repay Debt While Saving for Other Goals  Pay off High Interest Rate Credit Cards A $2000 Balance CC @ 20% int. rate w/ only min payments will take 31 yrs to payoff  Don’t use Credit Cards for Emergencies  Don’t wait to save until bills are all paid Consider yourself an essential expense!  Pay off High Interest Rate Credit Cards A $2000 Balance CC @ 20% int. rate w/ only min payments will take 31 yrs to payoff  Don’t use Credit Cards for Emergencies  Don’t wait to save until bills are all paid Consider yourself an essential expense!

10. Set your own Credit Score # How FICO Scores are Determined How FICO Scores are Determined

11. FICO Score Mortgage Loan Example FICO Score APR Monthly payment 760-8505.125%$2723 700-7595.5%$2839 660-6995.875%$2960 620-6596.5%$3160 580-6197%$3327 500-5797.5%$3497 *Example purposes only: $500 K – 30 YR Fixed Mort.

12. Keep Your FICO Score High  Pay on time, every time  Pay off collection accounts  Keep your old accounts  Avoid “maxing out” accounts  Limit balance transfers  Avoid excess credit applications  Annualcreditreport.com  Pay on time, every time  Pay off collection accounts  Keep your old accounts  Avoid “maxing out” accounts  Limit balance transfers  Avoid excess credit applications  Annualcreditreport.com

13. InvestmentsInvestments  Small or Big  Find a company you frequent  Do some research  Buy a little-be willing to write it off  Don’t look at your statements too often  Speak to a Licensed Professional Start Now because Time is Money!  Small or Big  Find a company you frequent  Do some research  Buy a little-be willing to write it off  Don’t look at your statements too often  Speak to a Licensed Professional Start Now because Time is Money!

14. Sooner You Start the Better *Calculation based on $450 monthly contributions @ 10% ave. annual rate of return

15. SummarySummary We saw…  The impact of society, situation, and advertising on spending  How little purchases can hurt a lot  Budgeting techniques and steps  How to pay off debt and save  How to manage your credit score  Investing for beginners  Retirement planning We saw…  The impact of society, situation, and advertising on spending  How little purchases can hurt a lot  Budgeting techniques and steps  How to pay off debt and save  How to manage your credit score  Investing for beginners  Retirement planning

16. Tell Everyone! Tell your friends, family, co-workers! Knowledge is power, so share what you’ve learned with others! Wherever life takes you, we’re there! Tell your friends, family, co-workers! Knowledge is power, so share what you’ve learned with others! Wherever life takes you, we’re there!

17. Contact Information  CONGRESSIONAL FEDERAL CREDIT UNION 800.491.2328 / www.congressionalfcu.org  BALANCE is a financial education and counseling service available as a benefit of credit union membership Money management counselingMoney management counseling Debt repayment optionsDebt repayment options Credit report reviewCredit report review 888.456.2227 / www.balancepro.net888.456.2227 / www.balancepro.net  Or see your Financial Representative today!  CONGRESSIONAL FEDERAL CREDIT UNION 800.491.2328 / www.congressionalfcu.org  BALANCE is a financial education and counseling service available as a benefit of credit union membership Money management counselingMoney management counseling Debt repayment optionsDebt repayment options Credit report reviewCredit report review 888.456.2227 / www.balancepro.net888.456.2227 / www.balancepro.net  Or see your Financial Representative today!

18. Questions or Comments? Thank you!