Essential Financial Concepts for Better Money Management
Explore key financial concepts such as credit limits, fixed expenses, risk and return, estate planning, and more to enhance your money management skills. Understand topics like fair credit reporting, IRA accounts, and the importance of diversifying investments. Learn about financial planning strategies, interest rates, and the significance of emergency funds in this comprehensive guide.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
Money Review Review In groups of 2 get slate board Marker & tissues
Financial Planning Financial institutions outstanding checks FDIC,SAIF, NCAU overdraft protection Bank, credit unions and savings and loan firms Insurance for banks, credit unions and savings and loan. Checks that haven t cleared the bank. Setting goals and developing a plan for finances. An instant loan that guarantees checks up to a specified amount.
credit limit APR Credit Report bankrupt cy cost of Credit The maximum amount you can borrow The interest you pay to use other people s money. Two types: Chapter 7 and Chapter 13 Annual Percentage Rate A record of your personal financial transactions used to determine risk
Fair Credit Reporting Act interest principle cosign flexible expense The amount you pay for the money you borrow The original amount you borrowed A person who accepts responsibility to pay the loan if you default. Law that says you can see your credit report and dispute anything that is false. Expenses that change from month to month. Ex. groceries
IRA 30-35% Debit vs. Credit Card 15% Estate Planning An individual retirement account. Debit card transactions are deducted out of checking, credit cards are loans Recommended % of budget for housing budget A plan to use Wills and Trusts to distribute assets. Recommended % of budget for transportation & food
Risk & return Stocks Diversify Liquidity Interest The higher the investment risk- the higher the investment return. The percentage charged to borrow money. (higher rate = more cost.). Putting money in several different types of investments. Part ownership in a company Asset that is easily converted into cash.
Fixed Expenses compoundin g interest emergency funds Rule of 72 1040EZ Expenses that stay the same every month. Ex. Rent, car payment, etc. Money saved that is easily accessible in case of an emergency. Earning interest on interest. Easiest tax form to do. How long it takes for your money to double.
