Tips and Tools For Financial Success - Newton Free Library

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ACCOUNT ACTIVITY Date of Transaction Merchant Name or Transaction Description $ Amount PAYMENTS AND OTHER CREDITS 07/19 Payment - Thank you - 210.00 PURCHASES 07/24 Gourmet Food, Anytown USA 230.23 07/25 Hotel, Anytown, USA 370.94 07/26 Car Rental, Anytown, USA 226.42 07/27 Clothing 123, Anytown, USA 270.23 2010 Totals Year-to-Date Total fees charged in 2010 $0.00 Total interest charge in 2010 $0.00 Year-to-date totals reflect all charges minus any refunds applied to your account on or after January 31, 2010. INTEREST CHARGES Your Annual Percentage Rate (APR) is the annual interest rate on your account. 16 Balance Type Purchases Cash Advances Balance Transfer 17 Annual Percentage Rate (APR) 31 days In Cycle 13.24% (v) 19.24% (v) 13.24% (v) 18 Balance Subject To Interest Rate $0.00 $0.00 $0.00 19 Interest Charges $0.00 $0.00 $0.00 20 Accrued Interest Charges $0.00 $0.00 $0.00 (v) = Variable Rate Please see Information About Your Account Section for the Calculation of Balance Subject to Interest Rate, Annual Renewal Notice, How to Avoid Interest on Purchases, and other important information, as applicable. 16. Balance Type: The method in which interest is calculated for your account 17. Annual Percentage Rate: The annual percentage rate you’ll be charged if you carry over a balance from month to month. 18. Balance Subject To Interest Rate: This refers to the balance that is being incurred interest 19. Interest Charges: A charge incurred by the credit card company to service its debt over a period of time 20. Accrued Interest Charges: The total amount of interest that has been charged to your account to date Disclaimer: All quoted interest rates, fees, and repayment time frames are examples only. Refer to your personal credit card for terms and agreements. 93
Paying Your Credit Card Bill (from FDIC Money Smart) Minimum Payment With a credit card, you have to pay at least the minimum amount due each month. Credit card companies must mail or deliver your credit card statement 21 days before the bill is due. In addition: • Your due date should be the same date each month. • The payment cut-off time cannot be earlier than 5 p.m. on the due date. • If your payment due date is on a weekend or holiday, you will have until the following business day to pay. For example, if the due date is Sunday the 15th, your payment will be on time if it is received by Monday the 16th before 5 p.m. Cost of Making the Minimum Payment Look at two charts that show what happens when you make the minimum payment, and when you pay more than the minimum payment. Assumptions for the tables include: • APR = 18 percent (If the APR is higher, the item would be more expensive and would take longer to pay off) • Minimum monthly payment equals greater of $20 or 2 percent of balance • No late payments are made • No additional purchases are made • Interest is calculated by applying a monthly rate to the average daily balance • Average daily balance method is used to calculate interest • Years are rounded to the nearest whole year • Dollar amounts are rounded to the nearest dollar Item Price APR Interest Paid How Much You Really Pay for the Item Total Years to Pay Off TV $500 18% $132 $632 3 Computer $1,000 18% $863 $1,863 8 Furniture $2,500 18% $5,363 $7,863 23 Benefit of Paying More Than the Minimum Payment The best way to save money and avoid paying interest charges is to pay off your balance in full when you first receive your bill. However, the following chart shows the benefit of paying more than the minimum payment if you cannot pay off the balance in full. Original Balance APR Monthly Payments Total Years to Pay Off Interest Paid Total of Payments $2,500 18% Minimum 23 $5,363 $7,863 Payment (MP) $2,500 18% MP + $24 4 $1,025 $3,525 $2,500 18% MP + $41 3 $754 $3,254 94
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Financial Literacy at the Library T
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Background and Acknowledgments Fina
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Chapter V. Credit Overview of Credi
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6 Newton Free Library hosted Financ
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8 © 2011 American Consumer Credit
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Goal Setting & Financial Planning (
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Financial Goals Worksheet (SMART)
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Planning For Unexpected Life Events
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1. Determine what to keep at home a
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5. Keep a close watch on your bank
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20 Kip Child, FDIC Community Affair
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Introduction to Banks (from FDIC Mo
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24 Debit Cards • Fees? • Fee wa
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Ways to Take Money Out of Your Acco
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Using Electronic Banking (from FDIC
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Activity 1: Checking Account Fees (
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Activity 3: Record Transactions in
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Sample Check Register Check Number
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Paper Money Copy, cut, and put the
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III. Budgeting Practice Good Habits
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Create a Budget—and Pay Yourself
Page 44 and 45: Household Budgeting Worksheet Housi
Page 46 and 47: Read the scenario, review the Month
Page 48 and 49: Increase Your Income How might how
Page 50 and 51: Develop a Spending Plan A spending
Page 52 and 53: Implement Your Plan Seek Assistance
Page 54 and 55: • Educate yourself and learn more
Page 56 and 57: Budgeting Quiz 1. How long should y
Page 58 and 59: Budgeting Quiz -Answers 1. Correct
Page 60 and 61: IV. Saving and Investing Preparing
Page 62 and 63: The true magic of compound interest
Page 64 and 65: 9. Pay off high-interest credit car
Page 66 and 67: Risk-Return Relationship Table (FIN
Page 68 and 69: Compounding with Tables (FINRA Inve
Page 70 and 71: Retirement Savings Vehicles (FINRA
Page 72 and 73: In most cases, you roll over a trad
Page 74 and 75: Activity 2: Savings Goals Worksheet
Page 76 and 77: Investing Quiz 1. Which of the foll
Page 78 and 79: Investing Quiz - Answers 1. Correct
Page 80 and 81: Making your First Investments http:
Page 82 and 83: V. Credit Overview of Credit What i
Page 84 and 85: What Is a Credit Report? (from FDIC
Page 86 and 87: How the Credit Report Is Used (from
Page 88 and 89: How to Get Your Free Annual Credit
Page 90 and 91: Credit Cards: What Are They Used Fo
Page 92 and 93: Credit Card Comparison Chart (from
Page 96 and 97: Activity 1: Maria’s Credit Report
Page 98 and 99: Activity 3: Who Poses the Most Cred
Page 100 and 101: Credit Terms and Definitions Bankru
Page 102 and 103: 8. All of the following appear on y
Page 104 and 105: VI. Borrowing Basics Types of Loans
Page 106 and 107: Car Loans (from FDIC Money Smart) T
Page 108 and 109: To Rent or To Own? (from FDIC Money
Page 110 and 111: Activity 1: Which Loan Is Best? (fr
Page 112 and 113: Activity 3: How Much Mortgage Can P
Page 114 and 115: Note: Make sure you compare loan of
Page 116 and 117: Estimated prepaid amounts for inter
Page 118 and 119: Borrowing Basics Quiz 1. Which of t
Page 120 and 121: Answers for Borrowing Basics Quiz 1
Page 122 and 123: VII. Life Skills Menu Planning Work
Page 124 and 125: Grocery Shopping Tips 1. Clean out
Page 126 and 127: Computer Terms and Definitions Comp
Page 128 and 129: Housing Terms and Definitions Appli
Page 130 and 131: 8. According to the 2010 Consumer E
Page 132 and 133: VIII. Glossary Glossary (excerpted
Page 134 and 135: Compounding: Interest paid on money
Page 136 and 137: Interest: A percentage of your bala
Page 138 and 139: Stocks: Parts of a company, called
Page 140 and 141: IX. Recommend Resources Bibliograph
Page 142 and 143: Careers and Life Skills Bostick, Na
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Heath, Julia A. Personal finance es
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Debt information for teens: tips fo
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Tutor/Teacher Cordell, Jane. Cambri
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Newton Free Library Financial Educa
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I. Learning English Online Resource
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Investor Knowledge Quiz - http://ww
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American Consumer Credit Counseling
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Nationwide Resources (from American
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This publication is made possible b
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