Keys to Financial Success

Benefits of Managing Money

More free time Do things you enjoy

Less stress Better health

Achieve goals Satisfaction

Greater control Peace of mind

CREATE A SPENDING PLAN

Five Steps To a Successful Spending Plan

1. List all income sources

2. Determine monthly expenses

3. Balance income & expenses

4. Review & Adjust to meet goals

5. Manage your system

Budgeting Challenge!

• Track your spending for the next two weeks

• Develop a spending plan

Set SMART Financial Goals

Specific

Measurable

Action-Oriented

Realistic

Time-Oriented

Resources

• UW Credit Union Website– uwcu.org

--www.greenpath.com/greenpath-financial-wellness

CREDIT BASICS

What’s in a Credit Report?*Skills for lifelong learning, information literacy

• Identifying Information– Name, Social Security number, date of birth, address

• Creditors and Payment History– Positive and negative

• Bankruptcies, Judgments, Liens, Lawsuits• Inquiries You Initiated

– Loan and credit applications (excluding credit card solicitations)

• Employment Information

What Makes Up Your Credit Score?

SCORE HIGH: USING CREDIT WISELY

35%

30%

15%

10%

10% Payment History - 35%

Amounts Owed - 30%

Length of Credit History - 15%

New Credit - 10%

Types of Credit Used - 10%

Source: myfico.com

What Does Your Credit Score Mean to Others?

• Financial Institutions– Difference in interest rates, terms and

amounts approved• Employers• Landlords• Utilities

– Cell phones, electric, etc.• Insurance Companies

Build Your Credit History• Pay all bills on time• Limit the number of open credit lines• Keep balances low• Keep credit card utilization to less than 30%• Be selective about what you apply for• Have a “mix” of credit (credit cards,

mortgage, auto loans, etc.)

• Retrieve your free credit report: - annualcreditreport.com

• Check your credit score for free: - creditkarma.com

• You can retrieve one report from each credit bureau annually– Trans Union, Experian & Equifax

Reviewing your Credit Report

Where do you find out how much you have in student loans?

• WINS• National Student Loan Database

http://www.nslds.ed.gov• Servicing company such as Great

Lakes• Credit Report

Student Loans

When does repayment begin?• Stafford: 6 months after graduation or

dropping below a half-time status• Perkins: 9 months after graduation or

dropping below a half-time status• PLUS: 45-60 days after disbursement, unless

otherwise requested• Private: Depends on lender – usually same

as Stafford

Student Loans

Interest Payments• For Federal loans, payments can be made at anytime

without penalty• Make interest payments whenever you can• Unpaid interest is capitalized, or added to the

principal balance, at the end of the grace period.• Sending even $20 each month will save you $$ over

the life of your loan• For private loans, check with the lender.

Student Loans

• Track your spending• Develop a spending plan• Check your credit report• Start establishing positive credit history• Review your student loans• Schedule an appointment with UW Credit Union

for a free Credit Consultation

Review

Questions?Thank you for coming today!

Denise Kaminski

Senior Financial Specialist

dkaminski@uwcu.org

800-533-6773 x 1601

Also visit us on the web at uwcu.org

Stop at our UW Whitewater

location -- 72 University Center