Building Your

Financial Foundation

Do you think people are more likely to buy something they do not need when they use a credit card?

What is Credit?

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What is Credit?

Bad Credit:

Purchases $1000Interest Rate 27%Minimum Payment $23Years to Pay off 12 yearsInterest Paid $2,312

Actual Cost $3,312

Good Credit:

Purchases $1000Interest Rate 7%Minimum Payment $10Years to Pay off 12 yearsInterest Paid $440

Actual Cost $1,440

Purchase with Savings:

Purchases $1000 Amount Saved/month $1258 months to save $1,000Interest earned on money in savings $30

Actual Cost $970

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• Credit cards can be a tool to build your credit rating.

• To avoid interest and extra expenses pay your credit card balance off in full every month.

• Paying off your credit cards in full allows you to build your credit history without paying interest charges.

• WARNING: Before getting a credit card:

oHave 6 months worth of bills saved

oHave a working budget

o Control your spending

oHave a clear written plan in place

What is Credit?

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Identity Theft

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Types:• Social Security Identity Theft • Driver’s License Identity Theft• Financial Identity Theft• Medical Identity Theft • Insurance Identity Theft• Children’s Identity Theft• Criminal Identity Theft• Mortgage Identity Theft

Identity Theft

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Identity Theft

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Tips:

• Use only a secure server to access the Internet.

• Shred any document with personal information.

• Keep your Social Security card, passport, license, and other valuable personal information hidden.

• Get a mailbox that locks.

• Opt out of unnecessary (sometimes risky) credit or insurance offers. Call

• Never provide your social security information or private contact information over the phone–unless YOU initiated the phone call.

• Delete any suspicious email.

• For debit and credit cards Don’t carry your PIN in your wallet, purse, or pocket or write it on your card.