Financial Applications #1 How to Choose a Bank Account Savings Checking Features Cost Convenience.

Financial Applications #1How to Choose a Bank Account

SavingsChecking

FeaturesCostConvenience

Financial Applications #1Checking Account Types

BasicDiscountPremiumOnline

Financial Applications #1Checking Account Types

StudentInterest BearingCredit UnionsSmall/Large BanksInternet Only Banks

Financial Applications #1Convenience and More

Location, Location, LocationFlexible HoursFDIC or NCUATons of ATM’sIt’s Not a Marriage

Financial Applications #1How To Open An Account

Bring the minimum fundsBring IDOverdraft?Choose ChecksSign up for Online BankingChoose a Debit or ATM CardConsider opening another account

Financial Applications #1 Four Ways to Avoid

Bouncing Checks1. Wait for deposits to clear2. Balance your checkbook3. Reconcile your checkbook4. Remember your ATM’s

Financial Applications #1 ATM Safety Tips

1. Avoid alone in the dark2. Choose ATM’s inside large

places3. Never leave receipts behind4. Shield the Keypad5. If concerned, go somewhere

else6. Put the card and money

away

Financial Applications #1Banking and paying Bills Online

QuickerCheaperCan download into softwareCan set to Auto-DebitCan track historyStill get statement in the mail

Financial Applications #1Financial Software Programs

QuickenMS Money

Can expand as your life gets complicatedQuick overall pictureCan download into tax programsNo boxes only a CD

Financial Applications #1What To Keep and What To Shred?

Tax ReturnsMortgage StatementsHome purchase recordsHousehold receiptsUtility billsMedical records

Financial Applications #1What To Keep and What To Shred?

Insurance PoliciesInvestment InformationStudent Loan StatementsATM ReceiptsCredit card receipts/ StatementsBank Statements

Financial Applications #1Credit Cards

Two Ways to Go WrongThe cashmere sweater and the iPodNo credit card

Financial Applications #1 How To Get Your First Card

1. Get a full time job2. Go to college3. Try for the easy ones4. Try a Secured Credit Card5. Ask your parents to co-

sign

Financial Applications #1What To Look For in a Credit Card

No annual feeGenerous grace periodLow regular APRLow fees for late paymentsNo penalty APR’sFree electronic bill payingNo arbitration clause

Financial Applications #1Credit Card Dictionary

Minimum Monthly PaymentCash AdvancesVariable Interest RateFixed Interest Rate

Financial Applications #1Credit Card Dictionary

Credit Line/LimitBalance TransfersBilling CycleRevolving AccountCharge Account

Financial Applications #1Debit Cards Vs. Credit Cards

What are Debit Cards?Debit Card PositivesDebit Card Negatives

What are Credit Cards?Credit Card PositivesCredit Card Negatives

Financial Applications #1Easy Tips For Credit Card Success

Limit the numberPay close attention to contract changesSteer clear of “Cash Advances”Steer clear of “Credit Card Checks”Ask and receive

Financial Applications #1Easy Tips For Credit Card Success

Read, read, read, the fine printKnow when and how to cancelJust say “No” to credit insuranceReport lost or stolen card ASAPGo OnlineKeep track of purchases

Financial Applications #1 Reasons To Check Your Credit

Card Statement1. 60 day error or fraud limit2. Stolen3. Dispute a charge4. Due time5. Due date (full or minimum

balance)

Financial Applications #1

Reward CardsFrequent flyers and hotelsDiscounted gasCash backGold Cards

Financial Applications #1Managing Your Credit Score

FICO or scoresBelow 650 Sub-Prime675 – 720 Good720-850 BestVantage Scores900 = “A”800 = “B”

Financial Applications #1Score Hurts and Helps

Auto/Homeowners InsuranceEmployer and Landlord checksChecking AccountsGetting a loanCredit Card Companies

FICO SCORE

APR Monthly Payment

760-850 6.094% $1,817

700-759 6.316% $1,860

660-699 6.60% $1,916

620-659 7.410% $2,079

580-519 8.275% $2,259

500-579 9.131% $2,442

30 Year $300,000 Mortgage and FICO Score

FICO SCORE

APR Monthly Payment

720-850 7.193% $774

690-719 7.928% $783

660-689 9.484 $801

620-659 11.075% $819

590-619 14.495% $860

500-589 15.124% $868

36 Month $25,000 Car Loan and FICO Score

Financial Applications #1What Matters Most

Your bill paying recordAmount of debtCredit mixtureCredit timeToo much at once

Financial Applications #1Bad Marks on Your Credit Report

Default on a loanForeclosureCharge offCar repossessedBankrupt

Financial Applications #1What Matters Most

35% Payment History30% Amounts Owed15% Length of Credit History10% Types of Credit in Use10% New Credit

Financial Applications #1 How To Maintain Great

Credit1. Use your credit card2. Pay your bills on time,

every time3. Don’t charge to your max

limit4. If turned down, ask why?5. Avoid too many credit

inquiries6. Keep your card

Financial Applications #1How To Pay It Off As Quickly As Possible

Make a listTry and lower the ratesMake payments on time

The Beauty of Prepayment (and the Beast of the Minimum Payment)

Prepayment of $5,000 @ 17% $71.28 Monthly

Extra Monthly Payment

Years to Pay off Loan

Interest Paid

$0 30 $20,702

$10 12.5 $6,854

$20 9 $4,708

$30 8 $3,653

$71.28 (Double)

5 $1,961

Financial Applications #1How to Save Money

Put your raise awayBrown bag itTurn up the thermostatMake a grocery list before shoppingMake your own Gourmet Coffee

Financial Applications #1What To Do Now and In Your 20’s

Start nowBuild creditPay off loansSave for a homeOpen a retirement accountKeep up credit rating

Financial Applications #2Saving and Investing

The difference is time frame and goals

Save For:VacationNew carRainy Day Fund

Invest For:Down payment on homeChild’s educationRetirement

Financial Applications #2The Rainy Day Fund

First thing to save forJob lossDisability3-6 Months living expenses:

RentUtilitiesCar paymentGroceries


Before saving, Insure

HomeownersHealth and DisabilityAutoLife

Financial Applications #2How and Where To Save

Checking AccountSaving AccountMoney MarketCD’sU.S. Saving Bonds

Financial Applications #2Growing Your Money

Compound Interest

Rule of 72’sAuto Pilot

Financial Applications #2 Stock Market Investing

1. Gamble for thrill seekers or crazies

2. Get rich the fastest way

3. Solid strategy for a reasonable person

Financial Applications #2Why Invest?

From 1925-2002Stock Gain 10.2%Bond Gain 5.5%T-Bill Gain3.8%

Financial Applications #2Types of Investments

StocksBondsMutual FundsReal EstatePrecious MetalsCollectibles

Financial Applications #2 Real Estate Basics

1. Own before investing2. Learn the legal and tax

implications3. Be realistic4. Location, Location,

Location

Financial Applications #2 Investing Priorities

1. Retirement2. College for kids

Asset Allocation “Don’t put all your eggs

in one basket”

Financial Applications #2Mutual Fund Terms

No LoadLoadIndexRisk versus Return

Financial Applications #2Mutual Fund Types

ManagedIndexedStockBondAggressive GrowthGrowthIncome

Financial Applications #2Mutual Fund Rating

www.morningstar.comBiography of the Fund ManagerThe top 5 or 10 holdingsDescription of the fund

"Smart Planning: Acquiring the Tools for Financial Success".

Mutual Fund Experts Morningstar:

1 year 50% 5 years 30% 20 years 15% 15% experts beat the market 85% do not

Financial Applications #2How To Buy Mutual Funds

Direct PurchaseDiscount BrokerageWorkplace 401 (k)’sPrice timingExchange Traded Funds

Financial Applications #2Stock Terms

Dollar Cost Averaging“Bull” Market“Bear” MarketThe Market

“Dow”S & P 500

Financial Applications #2How To Open a Brokerage Account

Discount or Full ServiceDiscountFull Service

Minimum DepositVisit their office or web siteGetting in Cheap

No load ProgramsOne Share Programs

Financial Applications #2Bonds are loans

CorporateConvertibleMunicipalU.S. Government SecuritiesU.S. Government AgencyForeign Government

Financial Applications #2Bond Funds

Not BondsRisksBenefits

Bond Bottom LineSteady income for a short term

Investment Basics Hot tip? 1. Is the seller a moron? 2. Is everyone a moron? 3. Everyone has the same information 4. Just pick a line and stay in it (Dollar

Cost Averaging or Indexed fund) 5. Experts beat the market only 15% 6. Save Invest Repeat

"Smart Planning: Acquiring the Tools for Financial Success". Diversify Flip a Coin 1 flip Heads = $400,000 Tails = $0 .5($400,000) + .5(0) = $200,000

=100% return 50% Risk

"Smart Planning: Acquiring the Tools for Financial Success". Flip 10 Coins 10 flip Heads = $40,000 Tails = $0 10(.5($40,000) + .5(0)) = $200,000 100%

return .001% Risk


“Hot stock tips” Index Fund Ibbotson Associates 1925-2006

Stocks 10.42% Bonds 5.9% Treasury Bills 3.72%

Financial Applications #2Workplace Retirement Plans

401 (k) Tax Free In, Taxable Out403 (b)457SEP-IRAPension

Financial Applications #2Individual Retirement Plans

IRA SEP IRARoth IRA Taxable In, Tax free out

Tax Sheltered Compounding

Financial Applications #2How To Make a Million Bucks

Timing Comparison


Roth, taxable in tax free out Age 30 $3,000 8% Age 65

$44,356 $3,000 per year $561,306 Age 50 $90,972 Age 25 $1,255,278

$1 Million with a cup of Coffee

Money Invested per year

Age Money for Retirement

$3,000 50 $117,380

$3,000 40 $357,000

$3,000 30 $978,90

$3,000 25 $2,600,000

$1,200 25 $1,000,000


The $1 million cup of coffee $5 X 5 days week Roth Index fund 10.42% Age 22 $1,086,271


Starting now is important! $200 per month from age 18-28

then not another dime 9% Roth Age 65 $950,580 $200 per month from age 28-65 $714,674


Saving For EducationConstant increasing costs529 Savings PlanCoverdell ESAGifts

Financial Applications #3Living Expense Factors

Monthly Expense/RangeRent-$300/$2,000Gas-$20/$250Electric-$30/$150Water-$20/$60Garbage Collection-$45/$85


Monthly Expense/RangePhone Bill-$25/$100Cell Phone-$30/$65Internet-$10/$50Cable/Satellite-$35/$75Groceries-$200/$450


Monthly Expense/RangeEntertainment-$75/$250Health Insurance-$150/$600Renters Insurance-$150/$800Home Maintenance-$10/$125Clothing-$300/$1,200


Monthly Expense/RangeDental-$5/$70Car Payment-$100/$600Car Insurance-$50/$400Gasoline-$30/$80Car Repair-$10/$50


Monthly Expense/RangeBus Commute-$0/$100Gym Membership-$35/$75Credit Card Bills-$15/$150Vacation-$50/$200

Financial Applications #3Salary Calculator $30,000 in Ft. Lauderdale, need:New York $52,900Chicago $37,300Atlanta $24,900Denver $26,300Dallas $23,800Charlotte $24,200San Francisco $46,300

Financial Applications #3Apartments, What Can You Afford?

One Bedroom Monthly RentsNashville $680Fort Lauderdale $850San Francisco $1,943Atlanta $819NYC $2,397Chicago $842Denver $750

Financial Applications #3 Apartment Hunting Steps1. How much you can afford2. Check the choices and

decide where3. Read newspaper ads4. Hit the streets looking5. Ask questions6. Apply for the apartment


What To Look For In An Apartment

1. Safety2. Parking3. Noise4. Access5. Closets6. Floor Space


What To Look For In An Apartment

7. Wall Space8. Appliances and Plumbing9. Kitchen Storage10. Electrical Outlets11. Daylight12. Laundry Room

Financial Applications #3 Deposits1. Apartment2. Utilities3. Phone4. Cable TV

Financial Applications #3Leases

Term of LeaseSublet ClauseLease CancellationWho Signs?Late FeesAutomatic Renewal


LeasesSecurity DepositUtilities IncludedPainting PolicyRoommates and Overnight GuestsLandlord’s AccessPetsNo Lease

Financial Applications #3 How To Get Your Deposit

Back1. Before you sign, inspect2. Ask for a move-in

inspection3. Photograph before move

in4. Photograph when you

leave5. Clean well when moving

out

Financial Applications #3Trouble With Your Landlord

Put everything in writingGet everything in writingKnow your rightsBe politeEviction

Financial Applications #3 Move-In Mistakes

1. No electricity2. Size matters3. Avoid comic relief4. Avoid the 30th

5. Label the essentials

Financial Applications #3 How To Make a Budget

1. Calculate net salary2. Add average regular

expenses3. Save on essentials4. Trim fat5. If money left over, keep it

that way

Financial Applications #3How To Cut Expenses and Still Have Fun

Good/Better/BestMoviesDinner with friendsWeekend entertainment

Financial Applications #3How To Keep Your Apartment Clean

Preventive maintenanceBuy doublesClean from top to bottom


Daily or Every Other Day:

Wash dishesMake bedTidy papersEmpty garbage


Weekly:Wipe down sinksChange sheetsDo laundrySweep floorLight DustClean out trashcans


Once or Twice Per MonthThorough cleaning of kitchen, bathrooms including toiletVacuum carpetsDust furnitureClean mirrors and electronics


Once or Twice Per YearClean out refrigeratorMove heavy furniture and clean behindPolish furnitureClean lights, walls, picturesWash windowsSort and pitch

TithingPhilippians 4:19

“And my God will meet all your needs according to his glorious riches in Christ Jesus.”

Problems created by worry

TithingPhilippians 4:6

“Do not be anxious about anything, but in everything, by prayer and petition, with

thanksgiving, present your requests to God.” All life is a school

Central LessonFocus on FinancesWhat experts say

PBS Study:6 hours shopping 40 min with

childrenAge 20 , 1 mil TV commercials

More Bankruptcy than graduate college

90% divorce because of money problems

If you worry, you are worse off because of

the problems that worry creates

When God gives a promise it comes with a condition:

Believe and be saved Acts 16:31

Not all saved Mat 7:14, John 6:44

You can know John 6:47No worry about dying

Finance promise:Malachi 3:10

Bring the whole tithe into the storehouse, that there may be food in my house. Test me in this," says the LORD Almighty, "and see if I will not throw open the floodgates of heaven

and pour out so much blessing that you will not have room enough for it.

God is a giver:

“Eternal Life” Eph 2:8“Gave only Son” John

3:16

God made:Sun, Moon, Stars, Air,

Clouds, Earth, Sea, Trees, Flowers, Fowls, Beasts,

Plants

All giveGod made Man, he

holds on

What God wants us to become

What does God want?

What is a Tithe?What belongs to GodWhat He gives to us

What He demands of usNegotiable?

Malachi 3Triple problems1. Return to Me

2. You Robbed Me3. You are cursed

Survey of Born Again:40% increase in giving

nothing19% decrease in giving

1/8 Tithe

The problem is not the tithe but disobedience by

withholding it1. Not believe God’s promise

2. No gratitude to God3. No love of God

Malachi 3Triple Blessings

1. Prove God2. From open

windows3. Rebuke the

devourer

Tithe not a matter of finance

Can’t afford to tithe? Peter Marshall

Does God keep his word?BillyJohn

Henry

Tithing Surprises:1. How much left

2. Developing faith3. Increased giving

4. Waited so long to start

College SurveyBring in the Tithe

Trust GodGod will provide

Financial Applications #1 How to Choose a Bank Account Savings Checking Features Cost Convenience.

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