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Do’s of CheckingGet a “Hold” of Your Debit Card
• What is a Hold?• Authorization for a purchase• Isn’t always the same as your
purchase amount• Be careful at restaurants, gas stations
and hotels
Don’ts of Checking• Don’t only use online banking to know
your balance• Don’t assume the balance on your
ATM receipt is correct
Do’s of Budgeting BUDGET and stick to it!• Write down your income and
expenses• Save! Pay yourself first• Use resources like mint.com• Set limits on food, entertainment,
etc… IN OUT
Do’s of BudgetingHave a money plan:1.Emergency Fund - $10002.Save 3-6 months living expenses3.Pay off debt – first credit then student loans
•Try not to carry a balance• If you do, always pay more than the minimum• Avoid making any cash advances
Example:
$1000 balance, $25 each month at 18% APR = 62 months to payoff and $538.82 in interest
Make the payment $35 = 38 months to payoff and $315.59 in interest
Do’s of Credit Cards
Do’s of Credit• Know your credit score and which type of score you’re given. • Get free copies of your credit report - annualcreditreport.com• Pay bills on time• Try to pay your credit card bill in full each month to avoid any interest fees.• Be a deadbeat
What’s in a credit report?
• Identifying information(name, SSN, date of birth, address)
• Employment history
• Creditors and payment history
• Bankruptcies, judgments, liens, lawsuits
• Inquiries you initiated(loan and credit applications, but not credit card solicitations)
Why care about your credit?
What’s a credit score?• Number that represents creditworthiness
• “How likely are you to repay the loan?”
• Range: • 300 to 850• Good Score is anything above 720
Credit Score Matters
$25,000 Honda Accord for 60 Months
Score Rate Payment Interest• >720 6.49% $489.06 $4,343.36• 680-720 7.99% $506.82 $5,408.79• 640-679 9.49% $524.96 $6,497.10• 600-639 12.49% $562.36 $8,741.47• <600 14.49% $588.13 $10,286.91
Components of a credit score
• Payment history (35% of score)
• Amounts owed to creditors (30%)
• Length of credit history (15%)
• New credit (10%)
• Types of credit currently in use (10%)
35%
30%
15%
10%
10%
Student LoansFederal Direct Grad PLUS Loans: 2014-2015
Academic Year• Interest Rate: 7.21%• Origination fee is 4.292%• Applicant cannot have adverse credit
history• Borrow up to the cost of attendance
Do’s of Student Loans• Be involved in your student loan consolidation process
Grad SchoolLoan forgivenessHigh interest/variable rate loansPrepayment penaltiesPerks
•Pay more than the minimum payments
Bonus Tips!• Bring your lunch to school or eat at
home• Save the latte for a treat, not everyday• Rate shop• Utilize discount clothing stores and
consignment shops• Meal plan and make a grocery list ahead
of time to avoid overbuying
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