chelsie andera and hannah ruona money matters!. budgeting
TRANSCRIPT
Chelsie Andera and Hannah Ruona
Money Matters!
Budgeting
“In a correctly formed budget, income should equal expenses. There
should not be money left over.”
Why keep a budget?
Match income with expensesPredetermines how money is allocatedPay bills on time
Tracking your spending
Adjusting expensesAre you spending too much?How to save
Evaluation of a budget
What have you taught your children about budgeting?
Savings/Checking Accounts
“Ten percent of earnings should be set aside for
savings.”
Benefits of Accounts
Savings AccountWhy save money?How to save money
Checking AccountTo properly trackAlternative to a credit card
Debit card
Do your children have checking and/or savings accounts?
Credit Cards
“You should never charge more on a credit card
than can be paid off each month.”
Credit Cards
84% of undergrads had a credit card (2009)*
What to look for
Benefits Build credit Buying power Secured/Limited
Drawbacks Can hurt credit score if used
incorrectly Accumulated interest
Credit Card Act ** Inform customers
when rates/fees change
Time to pay off balance using minimum
Under 21 requires cosigner
* “Coping with Cash 101.” USA Today. 2009. ** “How Will the Credit Card Affect Me?” Time.com.
What have you discussed about credit cards with your children?
Building credit
“You don’t need a credit card to build credit.”
Credit Building
Other ways to build creditSeparate cell phone accountBeing employed
Why it’s crucial to build creditFuture loans (house, car, etc.)EmployersRenters
What ways have your children started to build credit?
Communication
“Talk to your kids about finances!”
Who’s Paying?
Which expenses?
Examples:Cell phoneCar insuranceGasGroceriesEating Out
Expectations
Have you discussed with your children what their financial responsibilities will be?
Discussion PointsBudgeting
Match income with expenses
Savings/Checking AcctsStart saving now for the futureKeep track of your spending
Credit CardsCharge what you can pay off
Building CreditLook into options other than credit cards
CommunicationPlan and don’t be surprised
Final Thoughts
Fall SeminarsBudgetingBuilding Credit/Credit Cards
Contact InformationChelsie Andera
[email protected] Ruona
