Keys to Financial Success
Benefits of Managing Money
More free time
Less stress
Achieve goals
Greater control
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Do things you enjoy
Better health
Satisfaction
Peace of mind
CREATE A SPENDING PLAN
Five Steps
To a Successful Spending Plan
1.
2.
3.
4.
5.
List all income sources
Determine monthly expenses
Balance income & expenses
Review & Adjust to meet goals
Manage your system
Budgeting Challenge!
• Track your spending for the next two
weeks
• Develop a spending plan
Set SMART Financial Goals
Specific
Measurable
Action-Oriented
Realistic
Time-Oriented
Resources
• UW Credit Union Website
– uwcu.org
--www.greenpath.com/greenpathfinancial-wellness
CREDIT BASICS
What’s in a Credit Report?
*Skills for lifelong learning, information literacy
• Identifying Information
– Name, Social Security number, date of birth, address
• Creditors and Payment History
– Positive and negative
• Bankruptcies, Judgments, Liens, Lawsuits
• Inquiries You Initiated
– Loan and credit applications (excluding credit card
solicitations)
• Employment Information
What Makes Up Your
Credit Score?
Payment History - 35%
10%
10%
35%
Amounts Owed - 30%
Length of Credit History - 15%
15%
New Credit - 10%
30%
Types of Credit Used - 10%
Source: myfico.com
SCORE HIGH: USING CREDIT
WISELY
What Does Your Credit Score
Mean to Others?
• Financial Institutions
– Difference in interest rates, terms and
amounts approved
• Employers
• Landlords
• Utilities
– Cell phones, electric, etc.
• Insurance Companies
Build Your Credit History
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Pay all bills on time
Limit the number of open credit lines
Keep balances low
Keep credit card utilization to less than 30%
Be selective about what you apply for
Have a “mix” of credit (credit cards,
mortgage, auto loans, etc.)
Reviewing your Credit Report
• Retrieve your free credit report:
- annualcreditreport.com
• Check your credit score for free:
- creditkarma.com
• You can retrieve one report from
each credit bureau annually
– Trans Union, Experian & Equifax
Student Loans
Where do you find out how much you
have in student loans?
• WINS
• National Student Loan Database
http://www.nslds.ed.gov
• Servicing company such as Great
Lakes
• Credit Report
Student Loans
When does repayment begin?
• Stafford: 6 months after graduation or
dropping below a half-time status
• Perkins: 9 months after graduation or
dropping below a half-time status
• PLUS: 45-60 days after disbursement, unless
otherwise requested
• Private: Depends on lender – usually same
as Stafford
Student Loans
Interest Payments
• For Federal loans, payments can be made at anytime
without penalty
• Make interest payments whenever you can
• Unpaid interest is capitalized, or added to the
principal balance, at the end of the grace period.
• Sending even $20 each month will save you $$ over
the life of your loan
• For private loans, check with the lender.
Review
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Track your spending
Develop a spending plan
Check your credit report
Start establishing positive credit history
Review your student loans
Schedule an appointment with UW Credit Union
for a free Credit Consultation
Questions?
Thank you for coming today!
Denise Kaminski
Senior Financial Specialist
dkaminski@uwcu.org
800-533-6773 x 1601
Stop at our UW Whitewater
location -- 72 University Center
Also visit us on the web at uwcu.org