Being Financially Savvy

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Being Financially Savvy

• August 10, 2006

Presented by Maria O. Villa and Nerelys
Cordero On behalf of the WSCPA
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Overview

• Budgeting
• Savings
• Building a Credit History
• Type of Loans
• Identity Theft How to prevent

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Budgeting

• What is Budgeting?
• SMART Goals
• Needs and Wants
• Creating a budget
• Savings- Compound Interest

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Budgeting

• What is a Budget?
• A spending and saving plan within a certain
  period of time based on a persons goals for that
  time.
• A budget is a money plan. With it, you can
  organize and control your financial resources,
  set and realize goals, and decide in advance how
  your money will work for you. A budget can be as
  simple as it is powerful.
• The basic idea behind budgeting is to save money
  up front for both known and unknown expenses.

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Budgeting

• Attainable goals are SMART goals
• Specific---------Easily understood and pictured
• Measurable---You can see progress being made
  over time
• Attainable-----Can be planned broken into
  smaller, achievable steps that help you
  reach the big goal
• Realistic--------Within the realm of your
  capabilities
• Time-bound----Has a set time-line and end date

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Budgeting

• Setting a SMART goal

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Budgeting

• Evaluate your attainable goal

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Budgeting

• Before we start creating a budget, we first
  need to understand the difference between Needs
  and Wants.

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Budgeting

• Needs vs. Wants
• Make a list of things you currently spend money
  on and things you think you should spend money
  on. Please include your goals (buying a car,
  going on vacation) and the cost.
• Label each expense N for Need or W for Wants.
• Prioritize Think about each expense in terms of
  its importance. What must you absolutely spend
  money on? Label it number 1. What is least
  important? Label 12.

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Budgeting

• Benefits of budgeting
• Knowing what is going on
• Control
• Organization
• Communication
• Take advantage of opportunities
• Extra time
• Extra money

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Budgeting

• You can make any dream happen by planning for it,
  and then working to stick with your plan. Do you
  want to buy a car? Figure out how much money
  youll have to put away each month to make it
  happen.

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Savings
Spending responsibly is part of money management.
Being conscious of your spending habits will
help you learn how to get your moneys worth.
What do you thing it means to get your moneys
worth?
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Savings

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Savings
Compound Interest
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Savings
Compound Interest Saving 10 per week from the
age of 20
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Savings
Compound Interest Saving 50 per week from the
age of 20
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Savings

• Types of Savings Account
• Savings Accounts
• Money Market Account
• Certificate of Deposit (CD)

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Your Credit

• What is credit?
• How can you build your credit history?
• What is a credit report and how does it work?

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Types of Loans

• Car loans
• Payday loans
• Educational loans

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Identity Theft

• Stats on identity theft
• Average time to clear your name

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Identity Theft

• How to Prevent
• Keep your personal information in a safe place
  and shred or tear it up when done.
• Dont give out your SSN unless absolutely
  necessary.
• Pay attention to your statements. Check them for
  unauthorized or suspicious activity.
• Be careful when sending financial information
  over the Internet.
• Make copies of all your financial information.

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• Questions?