money management & budgeting

PRESENTED BY:ANGELIA SHARP

Money Management & Budgeting

About me….

Professional/Career 23 years in the Banking Industry Served in the United States Army

Education University of Phoenix

BS in Business Management with a Certification in Human Resources

University of Phoenix Master’s of Business of Administration

How do you Value Money?

What is your first memory of money How you viewed “money” in the past can control your

feelings for the futureHow do you organize your money

A good method is organizing in numeric orderKeeping track of your money

Thinking about how hard you work for your money in many instances can help in tracking your spending

How Should We Budget?

10% (before tax) Church20% (before tax) yourself 70% to cover household/living expenses

Budgeting

Establish a “REALISTIC” budget

Use electronic services to pay bills

Utilize a checking account ledger to record all transactions

Ask is it a need or want?

Needs are things that are vital for us to survive on a daily or monthly basis (ex. food, shelter, & clothing)

How to construct a Realistic Budget

List ALL recurring income

List ALL recurring expenses/bills

List sporadic bills Hair, concert, movies, additional clothing

Cost Cutting Ideas

GroceriesEating out

Transportation

Entertainment

Using a Calendar BudgetSunday Monday Tuesday Wednesday Thursday Friday Saturday

1Rent 350

2 3

4Church 5

5Gas 60Electric 50

6 7 8Pay 750Savings 25Baby Sitter 20

9 10Haircut 20

11Church 5

12 13 14 15Phone 50Cable 50Credit Card 30

16 17

18Church 5

19 20Bank Fees 5Car 250

21 22Pay 750Savings 25Baby Sitter 20

23 24

25Church 5

26(mail August rent)

27 28 29 30 31

What is a checking account?

Account to conduct day-to-day transaction business • Keeping your money safe - Carrying too much

cash or keeping too much in your home puts you at risk that it may be lost, stolen or destroyed. Checking account balances up to $250,000 are insured by the FDIC.

• Saving time and money - Writing checks and using other services such as ATM machines gives you flexibility, and makes handling your finances easier and less expensive.

Provides a record of where you spent your money

Less expensive than money orders

Why to establish a checking account- Benefits

Safety- Using checks/check cards are safer than carrying cash

Convenience – access to account 24/7

Provides a record of activity- budgeting your income and expenses

Helps to establish credit - To obtain credit cards and loans.

What is Foundation Checking?

Foundation Checking is an account that helps those who have previously made errors with their bank account and have been unable to open a new checking account.

Education and controlled limits on the new account to help customers know how to handle their money and plan for their expenses.

Foundation Checking has a monthly fee of $5, limits on the amount of ATM withdrawals and POS transactions per day, and are reviewed quarterly to determine if the client is ready to graduate to a traditional account (after 6 months in a Foundations account).

What is a FICO score and why it is important?

A FICO score is a credit score developed by Fair Isaac & Co.

Credit scoring is a method of determining the likelihood that credit users will pay their bills

How are Credit Scores rated?

Above 719 Considered Excellent Credit

680-719 Good Credit

620-679 Lender will take a closer look at your file

585-619 Higher risk, you will not be eligible for best rate and product

Below 585 Credit products may not be available; Lenders may need to consider additional information for processing your application (possible cosigner)

Professional/Career

God’s Plan for our Finances

Just like everything else in our lives, God has a holy purpose for our finances.

When God bless our finances we should view it from his Perspective, as good and not evil

(Timothy 6:10)

GOD wants us to be good stewards when it comes to our finances so that we are

financially stable

In Conclusion

Give to God First (Haggi 1: 2-11) -Teaches us to put God’s house first

Save for your future (Proverbs 13: 11)-Teaches when you put money aside a little at a time it will grow

Service your debt (Romans 13:8)- -Not to leave debt outstanding except the debt to love one another

Help others when you are blessed (Timothy 6: 18-19)Teaches that we need to be rich in helping others