Welcome to

Manage
Your Money
a
W I S E LY
Tracking your money

© 2011

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Money Management Seminar

MoneyWI$E
 A joint financial education project of
Consumer Action and Capital One.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
The Money Management course
will give you...

 An understanding of what good

money management is and why
it is important
 Skills and ideas to help you
better manage your money

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Money Management

Session One
(Two hours)

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Course objectives
 This seminar will help you
understand:
• How to prepare a budget
• How to balance your accounts
• How to cut back on expenses
• Ideas for increasing your income
• How to save more
• How to set financial goals

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
In participants’ folders
 Manage Your Money Wisely (brochure)
 Checkbook Balancing Activity
(worksheet)
 Three Sample Profiles (class exercise)
 Financial Goals Worksheets
 Take-home Budget Worksheet
 Money Management Seminar
Evaluation Form

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Money Management

 What is money management:

• Knowing how to save, spend
and invest your money so that
you and your family can
successfully work toward your
financial goals

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Money Management activities

 What activities go with money

management?
• Tracking your spending.
• Making a budget.
• Balancing your checkbook.
• Using credit wisely.
• Setting long- and short-term goals.
• Earmarking money for savings.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Be a wise money manager

 Wise money management can

help you:
• Pay your bills on time.
• Make it through times when you are
not working.
• Save money.
• Plan for short- and long-term goals.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Budgeting

 What is a budget?
• A spending plan to help you
forecast and control your expenses.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Making a budget

 How do you make a budget?

• You need to figure out how much
you spend each month and compare
that amount to your take-home pay.
• Track your spending for a set period
of time, like a month, in order to
figure out how much money you
spend.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Tracking your spending

 What are some ways to track

how much money you are
spending each day, each week,
or each month?

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Ways to track spending

 Keep a notebook handy and write

down everything you buy and every
bill you pay.

 Keep all your receipts in an

envelope or shoe box.

 Create a computer file for entering

your income and expenses.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Your budget

What are some of the things that

should be included in your
budget?

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Your budget may include:
 Housing
 Food (groceries, restaurants, snacks)
 Automobile (payments, gas, repairs,
insurance, commuting expenses)
 Clothing & personal grooming
 Utilities (electric, gas, water, cable)
 Credit card payments

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Your budget may include:
 Student loan payments
 Child care
 Insurance payments
 Entertainment (movies, concerts,
books)
 Medical bills
 Vacations
 Income taxes

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Making your budget work

 Does your income cover your

expenses?

 If not, you need to figure out

how to spend less or earn more.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Bank accounts

 A bank account is an important

money management tool.

 How can a bank account help

you manage your money
wisely?

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Bank accounts
 A bank account helps you keep track
of your spending and how much
money you have available.
 Use your checkbook register to write
down and deduct:
• Every check you write
• Every ATM or debit card transaction or
purchase
• Any bank fees you pay

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Benefits of a bank account:

 Money is safe.
 Each account is insured.
 Canceled checks prove you
paid a bill.
 Having a bank account can
save you money.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Let’s take a break

Please come back in 15 minutes.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Let’s balance a sample checkbook

 Take out the checkbook balancing

activity from your folders:
• Review the sample bank statement.
• Balance the sample checkbook
register.
• Balance the sample account using
the checkbook balancing worksheet.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Cutting back on expenses

 What are some ways to cut back

on expenses?

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Ideas to help you cut back

 Shop around and compare prices.

 Make a shopping list and stick to it.

 Prepare meals and bag lunches at

home.

 Don’t shop recreationally—you could

be tempted to buy things you don’t
need

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
More ways to cut back
 Use the public library for books,
magazines, videos.
 Join a buying co-op.
 Lower your thermostat when away or
sleeping.
 Walk instead of drive.
 Look for a free bank account.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Increase your income

 Ways to earn extra money:

• Part-time or weekend job.
• Take advantage of income tax
programs, such as the Earned Income
Tax Credit.
• Start a home-based business.
• Rent out a room.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Setting financial goals

 Short-term goal (1-2 years) —

buying a new car, getting a degree
or planning a wedding.

 Long-term goal (5-10 years or

more) — owning a home, starting a
family, paying for college or
retiring.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Working toward your goals

 A savings plan allows you to work

steadily toward your financial
goals.

 The take-home ‘Financial Goals

Worksheet’ will help you figure out
a savings plan that works with your
particular goals.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Take-home activity
 The Financial Goals Worksheet
and Chart can be found in each of
your folders.
 Complete the worksheets at home.
 Bring the completed worksheet
back for the second session.
 See you next time!

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Money Management

Session Two
(Two hours)

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Money Management

 Welcome back!

 In this session we will focus on

saving, investing, insurance,
credit and debt

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Saving & investing

 Let’s review your Financial Goals

Worksheet.

 Saving and investing can help you

to reach your short-term and long-
term goals.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
How to save more

 “Pay yourself first” by scheduling

automatic deposits on pay day
that go into your savings account
or IRA (individual retirement
account)

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Retirement accounts
 Does your employer offer a
retirement savings plan?

 Employer-sponsored plans can help

your retirement savings grow faster
because you do not have to pay taxes
on the earnings until you are eligible
to withdraw from the account, at age
59 1/2.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Saving - CDs
 A CD (certificate of deposit) is a
safe way to save.
• Like savings accounts, CDs are
insured by the government.
• CDs often earn a higher interest rate
than savings accounts do.
• However, CDs require that you leave
your money for a set period of time,
such as six months or a year.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Investing
 An investment is the use of money to
create more money
 Stocks, bonds and mutual funds are
all types of investments
 Consider an investment advisor.
 Be cautious—investments are not
government-insured and you could
lose your money.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Insurance

 What are the benefits of having

insurance?
 Insurance protects you against
financial ruin as a result of an
unforeseen catastrophe like fire,
theft or medical emergency.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Kinds of insurance

 What are the most important types

of insurance for you and your
family?
• Automobile insurance
• Health insurance
• Homeowner’s or renter’s insurance
• Life insurance

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Saving money on insurance
 Always ask if you are eligible for any
insurance discounts.
 Internet sites can help you compare
premiums:
• Insure.com (www.insure.com)
• InsWeb (www.insweb.com)
• Quick Quote (www.quickquote.com)
• Lower Rate Quotes
(www.lowerratequotes.com)

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Credit
 Good credit can help you:
• Rent an apartment
• Purchase a home
• Get a job
• Set up phone and power service.
• Buy ‘big-ticket’ items without cash
• Borrow money
• Obtain a credit card
• Rent a car

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
To build good credit...

 Pay your bills on time.

 If you carry a balance, pay as
much as you can each month.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Rebuilding credit

 If you have damaged your credit,

try applying for credit with local
businesses or for a secured credit
card (a bank credit card backed by
money you deposit in a bank
account.)

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Home equity loans

 Home equity loans can be used to

consolidate debt.
 Be very careful before taking out a
loan secured by your home (a home
equity loan or line of credit).
 If you fail to make a payment, you
risk losing your home.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Good credit
 Try to avoid these expensive credit
options:
• Pawn shops, pay day loans, and car title
pawn shops
• Offers to buy things on credit with deferred
interest
• Credit cards with rates higher than the
national average (check www.bankrate.com
for average)

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Overwhelmed by debt?
 The National Foundation for Consumer
Credit - (800) 388-2227 or www.nfcc.org
can refer you to a credit counselor in
your area. Low- or no-cost services
help you establish a repayment plan.

 Debtors Anonymous (781) 453-2743;

www.debtorsanonymous.org

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Let’s take a break

Please come back in 15 minutes.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Money management activity

 Break into small groups.

 Review sample profiles.

 Discuss how the people in the sample

profile can get back on track.

 Select a spokesperson from each

group to present your ideas.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Take-home budget worksheet

 In your folder you’ll find a budget

worksheet.

 Track your spending for a while and

then complete this worksheet at
home.

 Keep yourself focused on creative

ways to save money.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Questions?

Let’s try to answer some of your

questions about money
management.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Now you can grade us!

Please fill out the seminar

evaluation form and leave it with
me on your way out.

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
Congratulations!

 Congratulations on completing the

MoneyWI$E “Money Management”
seminar!
 You’ve taken a big step toward wise
money management.
 Put what you’ve learned into
practice—you can do it!

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP
 Visit money-wise.org
for additional information and to access
free financial education materials

MoneyWI$E
A CONSUMER ACTION AND CAPITAL ONE PARTNERSHIP