Credit Score – It’s your financial reputation. A number between 350 and 850. You earn your number according to how well you handle your debt. The higher your Credit Score the better – when it’s time for you to get an apartment or mortgage, a car loan, even a job. If your score is low, you can be turned down for any of the above.
Budget – Categorizing income minus debt. No matter the income, your debt should be less.
Prioritize – List debts in order of importance. Pay the same way.
Saving – Putting money in an account for a future time..allowing it to stay, and grow.
Interest earned – money automatically added to your account by the bank.
Due diligence – Checking things out for yourself, making sure it works for you.
CD’s – Certificate of Deposit – gives a better interest rate earned than a saving account, but it usually has a minimum deposit., and is held by the bank for a specified time…6 mos plus.
Checking account – You deposit money, and pay your debts using that money. It requires your diligence in balancing it, or you will pay fees – automatically withdrawn – by the bank.
Overdraft – means you paid out money which you didn’t have and the check was cashed…. you now owe a fee for doing that. Each overdraft is an additional fee. Balance your account and avoid these fees. They’re costly and a waste of money.
Check register – a paper booklet given by the bank so you can keep track of your deposits and withdrawals. Each time you add or subtract money in the account, write it in and keep the running balance, so you know where you stand, keeping you from spending what you don’t have. Keep it balanced…. it’s easy (adding/subtracting), and imperative.
Credit Card – You are legally responsible to pay for any purchases made with a credit card. Pay in full and before the due date to avoid huge fees. It is tied to your Credit Score.
Roth IRA’s – When you begin working, receiving a paycheck, you can open a Roth IRA, on an after-tax basis. Each year, add the maximum amount.
18 candles on your cake – Your signature is your word….you are held legally accountable. It means you, yourself, are legally responsible to pay any and all debts incurred by you, and to uphold any agreement signed by you. Keep your name and your reputation spotless.
