Smart Money MovesYou Can Make.

TodayJeremy Lushene – Washington State Department of Financial Institutions

Move 1:Establish an Emergency

Savings Fund

Emergency Savings Fund

-- Set aside enough money to cover3-6 months living expenses

-- Store money in a liquid account

-- Review potential “emergency” needs periodically

Action Plan:

Emergencies Add Up

Emergency Cost Estimate

Broken Window: - $300

Keys Locked In Car: - $50-$100

Power Outage: - $100(Replacement of food)

Examples of emergencies that could happen

Poll

1 2

50%50%

1. Yes

2. No

Could you pay your bills and purchase needed items if you didn’t cashone work paycheck?

Move 2:Develop A Financial Plan

Developing A Plan

-- Identify your life financial goals- Short term and long term

-- Meet with a licensed financial professional

(accountant, certified financial planner, investment adviser)

-- Come away with a plan that is flexible

Action Plan:

Poll

1 2 3

33% 33%33%

How much of your monthly income do experts recommend you set aside for savings?

1. 0-10%

2. 10-20%

3. 20-30%

Move 3:Start Saving for Retirement

So How Are We Doing?

Saving for Retirement

-- Use time to your advantage (compound interest)

-- Make a commitment (automatic deposits)

-- Find extra savings in your budget

-- Review Dept. of Retirement Systems info

-- Take advantage of tax shelters

- ROTH IRA vs Traditional IRA

Action Plan:

Compound Interest

Move 4:Improve Your Credit Score

What Goes Into A Credit Score?

Payment History35%

Amounts Owed30%

Types Of Credit10%

New Credit10%

Length OfHistory

15%

Improve Your Score

-- Pay down debt to < than 30% of available credit

-- Dust off an old, good credit card

-- Pull your credit report (look for errors)

-- Dispute errors and old negative information

Action Plan:

Poll

1 2

50%50%

1. Yes

2. No

Do you know your credit score? Approximately?

Obtain Your Free Credit Report

www.annualcreditreport.com

Move 5:Shield Yourself From Fraud

Investment Scams

Common tactics used by scam artists:

-- Source credibility

-- Phantom riches

-- Social consensus

-- Scarcity

-- Reciprocity

Identity Theft

-- Phishing

-- Vishing

-- Wireless Hacking

-- Skimming Devices

Tactics to be aware of:

ATM Skimming Devices

ATM Skimming Devices

ATM Skimming Devices

Identity Theft

-- Shred documents with your personal info

-- Secure your computer and wireless networks

-- Change and use different passwords

-- Monitor your bank and credit accounts

Protect Yourself Action Plan

Move 6:Take Advantage Of

Free Resources

Free ResourcesDepartment of Financial Institutions - www.dfi.wa.gov

DFI Clearinghouse – www.dfi.wa.gov/financial-education

Your local bank or credit union

Federal Government – www.mymoney.gov

Jeremy Lushene – jeremy.lushene@dfi.wa.gov

I learned something new today that I will share with others

1 2 3 4 5

60%

10%

0%

10%

20%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree

Today’s presentation was helpful

1 2 3 4 5

55%

18%

0%

9%

18%

1. Strongly Agree

2. Agree

3. Neutral

4. Disagree

5. Strongly Disagree