You might be book smart, but...
AREYOU
?
CREDITWISE A program to teach students the ins and outs of credit and personal finance.
AREYOU
?
CREDITWISE
Contents i
Introduction: Why Should You Care About Being Credit Wise? p.1
1 Creating (and Sticking to) a Budget p.4 2 Understanding Your Credit History p.10 3 Establishing Good Credit p.18 4 Managing a Credit Card p.20 5 Student Loans p.24 6 New Ways to Pay p.25
Introduction We’ve all been there… you signed up for a credit card at the mall just to get the one-time discount but don’t understand how it will affect your credit history, you got hit with a tuition increase and don’t know how to fit it into your budget, you were tempted to put your flight to Cancun for spring break on your credit card, you’ve freaked out over your credit card debt…. And if you’re like most college students: •
You have a credit card (84% do)
•
You even have more than 4 credit cards (the average student does)
•
You might use a credit card to pay tuition (33% do)
•
You use a credit card for textbooks or other education expenses (90% do)
•
You don’t pay off your balance at the end of each month (less than 20% do)
•
You may graduate with $4,000+ credit card balance, not including student loans (the average student does) 1
84% 80% of college students own a credit card
Don’t pay off the balance of their card each month
1 How Undergraduate Students Use Credit Cards: Sallie Mae’s National Study of Usage Rates and Trends 2009. Rep. Sallie Mae, Inc., Apr. 2009. Web.
A program to teach students the ins and outs of credit and personal finance
But why should you care about being credit wise? Because being credit wise now will save you financial heartache in the future. Plus, savvy money skills: •
Establish your independence
•
Tell a future employer or lender you’re responsible
•
Allow you to get a car, house or grad school loan in the future
•
Help you prepare for life after college by living within your means
Plus, it’s a whole new world out there. The Credit Card Accountability, Responsibility and Disclosure Act—the CARD Act for short—recently went into effect, and with it many things have changed: INTEREST RATES
•
Most interest rate increases will affect only new purchases, not existing balances, unless you miss payments for more than 60 days.
•
Lenders generally can’t raise your interest rate within 12 months of opening the account, but after that they can raise your interest rates however they want, as long as they give you 45 days notice.
P.2
Lenders generally can’t raise your interest rate within 12 months of opening the account, but after that they can raise your interest rates however they want, as long as they give you 45 days notice. DISCLOSURES
•
Each monthly statement must include information on how long it would take you to pay off your balance if you only make minimum payments, as well as the total you’ll pay including interest. Lenders also have to tell you how much you need to pay each month in order to pay off your balance in 36 months, as well as the total you’ll pay including interest.
•
Statements must include a toll-free number to call if you want to be referred to a credit counseling service.
AREYOU
?
CREDITWISE
SERVICE FEES
•
Annual and application fees cannot exceed 25% of your initial credit line.
•
Lenders can’t charge fees to make payments online or over the phone in the first year, unless they provide an expedited service by a customer service representative.
GRACE PERIODS
•
Billing statements must be sent 21 days before the due date.
•
Your due date should be the same each month.
•
Payments are considered on time when received by 5 p.m. on the due date, or the next business day after a holiday or day the lender does not receive mail.
•
Payments above the minimum must be applied to the highest-rate balance first.
OVER-THE-LIMIT FEES
•
Cardholders are not charged a fee if they exceed their credit limit unless they agree ahead of time to pay a fee, so unexpected fees aren’t charged. Lenders may decline these transactions, however.
And maybe most importantly for you… YOUNG ADULT ACCESS
•
Anyone under 21 can no longer get a credit card unless the applicant has a co-signer who is at least 21 or can demonstrate “ability to pay.”
•
A lender cannot increase your credit limit if you are under 21 and have a co-signer without that co-signer’s permission.
P.3
It may seem complicated, but it doesn’t have to be. ARE YOU CREDIT WISE? has sorted it all out for you!
A program to teach students the ins and outs of credit and personal finance
1
Creating (and Sticking to) a Budget Your first step to becoming credit wise is to create your own financial plan, or what most people call a budget. This may seem daunting (or boring), but trust us. Creating a budget helps you: • Live within your means and know what “your means” are • Set short- and long-term goals for saving • Stop worrying • Know where your money is going First thing’s first. You have to assess where you’re at money-wise, meaning you need to determine your income vs. expenses. For the majority of college students, the answer is very lopsided. However, you’ve figured out ways to balance this, whether it’s taking out loans, working an extra job or running up your credit card debt. Keeping track of your income vs. expenses is a key part of sticking to a budget.
P.4
For the majority of college students, the answer is very lopsided. However, you’ve figured out ways to balance this, whether it’s taking out loans, working an extra job or running up your credit card debt. Keeping track of your income vs. expenses is a key part of sticking to a budget.
AREYOU
?
CREDITWISE
*
ACTIVITY 1: Income vs. Expenses
Fill in your income sources and expenses for either this semester or entire year.
CATEGORY
TOTAL ($)
INCOME
Jobs Parents Student Loans Scholarships Financial Aid Miscellaneous INCOME TOTAL EXPENSES
Tuition Books Rent / Room and Board Utilities Groceries / Meal Plan Clothing Toiletries Professional Fees (e.g., haircuts, doctor appointment co-pays) Cell Phone Car Payment / Gas / Public Transportation Insurance Eating Out Going Out / Entertainment Miscellaneous (e.g., Netflix subscription or birthday gift) EXPENSES TOTAL
Now, take your total expenses and subtract it from your total income. How does your budget stack up? Most come up short. Total Income $_____________ - Total Expenses $_____________ = $_______________
P.5
Internet
A program to teach students the ins and outs of credit and personal finance
Where Can I Adjust?
If you spend $3.50 on coffee every weekday...
After you’ve laid it all out, ask yourself, “Where can I adjust?” • Distinguish wants vs. needs (maybe have your mom or dad weigh in on this one) • Understand that when a need increases (e.g., tuition), you must either decrease a want (concert tickets) or increase income (extra hours waitressing) • Remember that the little things add up
• In a 5-day school week, you’ll spend $17.50 • During the month, you’ll spend more than $70 • Over a year, that totals $840 in coffee
There are some good free tools out there that can help you set up a budget online, track your spending and find areas where you can save money. We suggest using Mint.com or, if you have a checking account, your bank may have a free online budget tool.
P.6 Setting Financial Goals (and devising a plan to achieve them) Now that you have a better feel for where you’re at money-wise, it’s time to set a game plan. Setting financial goals—and achieving them—keeps you coming back to good money management habits and helps you afford the things you want, when you want them. It’s important not only to think about what you’ll need in the next semester, but what you’ll need when you’re no longer going by semesters. With that in mind, try thinking of your financial goals like this: •
Short-term goals (What will I need to afford this semester?)
•
Mid-term goals (What will I need to afford this year?)
•
Long-term goals (What will I need to afford after college and beyond?)
AREYOU
?
CREDITWISE
*
ACTIVITY 2: Goal Setting Worksheet—Short-term goals
Find out how much money you need to save per month in order to achieve your short-term goals for this semester:
GOAL
COST
AMOUNT YOU NEED TO SAVE PER MONTH
WAYS YOU’LL SAVE (INCREASING INCOME OR DECREASING EXPENSES)
(TOTAL/MONTHS IN SEMESTER)
New bike for getting to class
$300
$75
Babysit two Friday nights per month ($50); bring lunches to school rather than eat in cafeteria $25)
P.7
A program to teach students the ins and outs of credit and personal finance
*
ACTIVITY 2: Goal Setting Worksheet—Mid-term goals
Now, do the same for mid-term goals.
GOAL
COST
AMOUNT YOU NEED TO SAVE PER MONTH
WAYS YOU’LL SAVE (INCREASING INCOME OR DECREASING EXPENSES)
(TOTAL/MONTHS IN YEAR)
Decrease amount of school loans by $1000
$1000
$83
Get a Part-time job for 10 hours per week
P.8
AREYOU
?
CREDITWISE
*
ACTIVITY 2: Goal Setting Worksheet—Long-term goals
It’s a little harder to do with long-term goals because there’s no time limit. However, you can set up an open-ended plan to achieve your goals:
GOAL
Pay off my school loans within 5 years
COST
$20, 000
AMOUNT TARGET NEEDED TO LENGTH OF SAVE EACH TIME MONTH
5 years
$333 (5 years=60 months)
WAYS YOU’LL SAVE (Increasing Income or Decreasing Expenses)
Live in a cheaper neighborhood to make up the difference in rent
P.9
A program to teach students the ins and outs of credit and personal finance
2
Understanding Your Credit History Your credit history, which can include your history with loans, credit cards, housing payments and other transactions, determines your financial future. It says a lot about you, and more people look at it than you may think, including: •
Future employers
•
The landlord for that apartment you want to rent
•
The loan officer you have to get through to buy that house or car, or get a loan for grad school
•
Banks that decide what kind of rates you’ll get on current and future cards
And remember, missed payments and other “oops” can stay on your credit history for up to 7 years!
P.10
Credit Reports and Credit Scores: How Is Your Credit History Measured? A credit report and credit score are both evaluations of a person’s credit history and credit worthiness. Lenders review your credit report to determine if you are a good risk. Consumers with the best credit history get the best interest rates. Think of a credit score as the grade you receive on a midterm paper and a credit report as all of the red-inked feedback your professor provides throughout the paper.
AREYOU
?
CREDITWISE
How Can You Get Your Credit Report? You must have a credit history to get a credit report. In general, that means you must have at least one credit account that has been open for at least six months.
•
The only federally accredited program is www.annualcreditreport.com. It links to accredited credit reporting agencies Equifax, Experian and TransUnion. The Fair and Accurate Credit Transactions Act (FACT Act) allows you to order one free copy from each of the three agencies every 12 months.
•
Not all lenders report to all three agencies, so your reports from TransUnion, Equifax and Experian could be different from each other. It’s important to check all three credit reports annually to make sure they are accurate, up-to-date and that there are no dramatic differences between them, which could mean there’s an error.
•
Steer clear of gimmick programs that may charge hidden fees or offer to increase your credit score. You can help avoid these unauthorized players by sticking with www.annualcreditreport.com.
•
In general, you should check your credit report or credit score six months before you plan a major purchase like a car. This will give you time to fix inaccuracies and improve your score, if necessary.
What’s a Good Credit Score? Credit scores calculated by FICO® range from 300 to 850. Most people are in the 600-800 range. National Distribution of FICO Scores (% of Population)
27% 18% 15%
13%
12% 2%
5%
up to 499
500-549
8% 550-599
600-649
650-699
700-749
750-799
FICO SCORE RANGE Source: “About Credit Scores.” Credit Education Center Credit Basics. Fair Isaac Corporation. Web. www.myfico.com/crediteducation/creditscores.aspx
800+
P.11
•
A program to teach students the ins and outs of credit and personal finance
Reading a Credit Report What’s included on your credit report? • Personal information • Accounts summary • Accounts opened –Closed or inactive accounts— these can stay on your report for 7–11 years! –Type of account and date opened –Credit limits / loan amounts –Whether you paid on time –Balances • Credit inquiries within the last 2 years • Negative items • Missed payments • Overdue debt
What’s NOT included on your credit report? • Most checking or savings account information • Demographic information like race or ethnicity • Salary • Certain types of inquiries: –Consumer-initiated inquiries—requests by you for your credit report –Promotional inquiries—requests by lenders to offer you pre-approved credit –Administrative inquiries—requests by lenders to review your account –Employer inquiries • Your credit score
Credit scores are not on the credit report itself. In general, there will be a charge to obtain your credit score. However, your score is generated from your credit report, so checking that will help you take action to improve your credit score.
P.12 What’s an Inquiry? When you apply for credit, lenders can ask—or "inquire" —for a copy of your credit report from a credit agency. When you check your credit report, you may notice that those credit inquiries are listed, including some from businesses you don't know. The only inquiries that count toward your credit score are the ones that result from your applications for new credit.
AREYOU
?
CREDIT WISE
READING THE ACCOUNTS SUMMARY SECTION
Your credit report will summarize your lines of credit and the payment status on that credit. This is the meat of your credit report and plays a big part in determining your credit score. If you notice any inaccuracies in your credit report, be sure to report them in writing to both the credit rating agency and your lender as soon as possible. They’re required by law to help you fix it. The types of credit are listed as: OPEN: Items and services are paid for in a single payment within a given time period after the purchase. Interest is usually not charged. –Utility companies, some medical services, travel and entertainment cards REVOLVING: Transactions can occur as long as the total amount does not go over the credit user’s assigned dollar limit. Repayment is made at regular time intervals for any amount at or above the minimum required amount. Interest is charged on the remaining balance. –Department store cards, bank cards like MasterCard and Visa INSTALLMENT: Items are paid for in two or more regularly scheduled payments of a set amount. Interest is included. –Car loans, student loans, home mortgage
Credit reports from the three credit agencies will appear different, but will include similar information and have a similar format. Typically, reports include sections on negative credit history, positive credit history, credit requests and personal information. See the next page for a sample credit report from Experian. Read through the credit report and answer the questions based on what you’ve learned so far in this workbook.
P.13
*
ACTIVITY 3: Reading a Credit Report
A program to teach students the ins and outs of credit and personal finance
P.14 Experian: Sample Credit Report. Digital image. Experian Online Personal Credit Report from Experian for John Q. Consumer. Experian TM, 2007. Web. 30 June 2010. www.experian.com/credit_report_basics/pdf/samplecreditreport.pdf
?
AREYOU
CREDIT WISE
1. John notices that a credit card he uses often does not appear under either the “Potentially Negative Items” or the “Accounts in Good Standing” section. What should he do?
2. John paid his balance to ABCD Banks on time, not 60 days past due as it states on his credit report. What should he do?
3. John never authorized MyTown Bank to do a credit check, but according to his credit report, they did. What should he do?
P.15
What Determines Your Credit Score? Payment History: Whether or not you have paid past credit accounts on time Amounts Owed: The percentage of available credit you’ve used on open credit accounts Credit History Length: How long your credit accounts have been established New Credit: How many new accounts you have and how long it’s been since you opened a new account Types of Credit Used: What types of accounts you have opened
According to FICO, factors are: New Credit
Your credit score considers only information in your credit report, but some lenders, especially for loans, often look at other factors like income when making a credit decision.
Types Of Credit Used
Payment History
10% 10%
35%
30% 35%
15% Credit History Length
15% 10%
10%
30% Source: “What’s in Your FICO® Score.” Credit Education Center: Credit Basics. Fair Isaac Corporation. Web. www.myfico.com/ crediteducation/whatsinyourscore.aspx
Amounts Owed
27% 18% 15% 12% 2%
5%
8%
A program to teach students the ins and outs of credit and personal finance
Understanding How Credit Missteps Can Affect Your Credit Score You may run into financial difficulties that impact your credit score. Some difficulties may not change your score that much while others can drop your score significantly. What your credit score was before can make a difference.
*
ACTIVITY 4: How Credit Lapses Affect People Differently
MyFico.com gives a comparison of the impact that credit problems can have on the credit scores of two different people. Here’s a snapshot of Alex’s and Benecia’s credit histories:
P.16
Alex has a credit score of 680 and:
Benecia has a credit score of 780 and:
Six credit accounts, including several
Ten credit accounts, including several active credit
active credit cards, an active auto loan,
cards, an active auto loan, a mortgage
a mortgage and a student loan
and a student loan
An eight-year credit history
A fifteen-year credit history
Moderate utilization on his credit card
Low utilization on her credit card accounts
accounts (his balances are
(her balances are 15-25% of her limits)
40-50% of his limits) Two reported delinquencies: a 90-day
Never has missed a payment on any
delinquency two years ago on a credit card
credit obligation
account and an isolated 30-day delinquency on his auto loan a year ago Has no accounts in collections and no adverse public records on file
Has no adverse public records on file
AREYOU
?
CREDIT WISE
Now take a look at what happens to Alex’s and Benecia’s credit score after one of these things happen:
Alex
Benecia
Maxing out a credit card
650-670
735-755
A 30-day delinquency
600-620
670-690
Settling a credit card debt
615-635
655-675
Foreclosure
575-595
620-640
Bankruptcy
530-550
540-560
Source: “Credit Missteps—How their Affect on FICO® Scores Vary.” Credit Education Center: Credit Q&A. Fair Isaac Corporation. Web. www.myfico.com/crediteducation/questions/credit_problem_comparison.aspx
P.17
The big takeaway? Different lapses on your credit history affect your credit score differently. Higher scores can fall farther than lower scores with the same mistake. As you can see above, Benecia loses more points for each mistake than Alex. As you can tell by his initial lower score, lenders from the get-go realized that he was more risky because of his credit history. So, the addition of one more sign of increased risk on Alex’s credit report is not quite as significant to his score as it is for Benecia’s.
A program to teach students the ins and outs of credit and personal finance
3
Establishing Good Credit Okay, you get it. Having a good credit history is important, and you know the factors that are considered, but how do you establish good credit? •
If you can, pay your monthly balance in full and pay it on time to build positive length of history -If you can’t pay it off in full, be sure to pay at least the minimum balance -Remember, what you don’t pay back in full is charged interest -Know your credit limit and don’t go over it
P.18
•
Hold off on signing up for new credit cards for one-time coupons
•
Avoid opening multiple accounts in a short period of time
•
Don’t close unused cards as a short-term strategy
•
Avoid paying off one card with another
•
Avoid credit repair agencies that charge a fee to improve your score
•
Review your credit report regularly and dispute any inaccuracies
•
Report lost or stolen cards right away
•
Shop around for APR—if you start high, build good credit history and go back to negotiate with your issuer
•
Let your issuer know if you will be late on a payment and negotiate a plan
•
Don’t worry about having unused, available credit—it doesn’t hurt
•
Try not to keep exceedingly high balances on a credit card or “max out” a credit card, as it could bring down your credit score quite a bit. Try to keep your balances below 35% of your credit limit.
And most importantly…borrow only what you can repay!
AREYOU
?
CREDIT WISE
?
Will my credit score drop if I apply for new credit?
Probably not much, if at all. However, if you apply for several credit cards within a short period of time, some lenders might think something’s fishy and wonder why you need more lines of credit so badly. Multiple inquiries from auto, mortgage or student loan lenders within a short period of time are typically treated as a single inquiry and will have little impact on the credit score.
Not necessarily. Any late payments associated with old accounts won’t disappear by closing the account. Also, having long-established accounts shows you have a longer history of managing credit, which is good.
P.19
Will closing old accounts improve my credit score?
A program to teach students the ins and outs of credit and personal finance
4
Managing a Credit Card Credit can be a great thing if handled responsibly. Before you decide to get a credit card, take a step back and think about the pros and cons:
PROS
CONS
Allows you to buy the things you need now
Easy to overspend, lose track
Creates an online record of purchases
Interest
Convenient
Possible fees
Builds your credit
Easy to buy on impulse
Can help you avoid liability on certain types of fraud
It’s a loan—you have to pay it back!
In addition, because of the CARD act, getting a credit card if you’re under 21 is a little more complicated than it used to be. Here are some options you may want to consider:
P.20
•
Wait to get a credit card
•
Ask a parent or other trusted adult to co-sign for your credit card
•
Build your credit history by managing a debit card and paying your rent and utilities bill on time
•
Become an authorized user on your parents’ credit card (if you can prove you’re credit wise to them, of course)
The Fine Print So, you’re ready to choose a credit card? There are a couple of things you should look at as you review potential card options: Annual Percentage Rate (APR) is the interest rate you’ll pay on your balance. APRs can vary greatly. Issuers offer lower APRs to people with better credit history. When you’re looking at APR, make sure you read the details! •
Some credit cards will offer you introductory rates, but many will go up after the introductory period expires.
•
Some cards offer non-variable APR rates while others offer variable APR rates. With a non-variable rate, your APR can change, but the credit card company has to give you
AREYOU
?
CREDIT WISE
notice first. With a variable rate, your APR changes based on an index, such as the Prime Rate, a national standard by which interest rates are measured. •
You can expect some lenders to cut you a break on your APR if you pay on time. But if you don’t pay on time, your interest rate will be higher.
•
Some cards will charge you a penalty APR for late payments. The penalty may apply until you make a certain number of consecutive minimum payments on time.
•
Shop around for good APR. If you don’t start with a good rate, build good credit history and then go back to the issuer to negotiate.
•
And remember—you can avoid paying interest all together by paying your balance in full by the payment due date.
Prime Rate: The national standard by which interest rates are measured. The Prime Rate is published by the Wall Street Journal and is determined by polling 10 of America’s largest banks. When 7 of the 10 change their prime lending rate, Prime Rate is updated accordingly.
Fees are the various costs you may encounter with any given credit card. Annual fees and membership fees can be added after one year, so again, read the offer carefully!
•
Account set-up fees are one-time fees.
•
Participation fees are typically monthly fees.
•
Transaction fees can be charged for balance transfers, cash advances and foreign transactions.
•
Penalty fees can be charged for late payments, over-the-limit purchases and returned payments.
P.21
•
How important is APR? Let’s do the math. If... • I charge $1,000 to my credit card • I make minimum payments of $20 per month • My APR is 15% Making only minimum payments each month, it will take more than 6 years to pay off my balance with $546.18 in interest, bringing the grand total to $1,546.18.
A program to teach students the ins and outs of credit and personal finance
*
ACTIVITY 5: Choosing a Credit Card
So, you received a pre-approved offer in the mail. Is it a good deal? Is this offer a good deal? Why or why not?
P.22 It’s usually best to do your own research and you may be better off applying for a credit card rather than going with a pre-approved offer. You typically can find a better deal, and you’re more likely to be familiar with the terms of the agreement.
AREYOU
?
CREDIT WISE
Cards with Benefits Get 10% off if you apply for a card today! Earn 10,000 free mileage points if you sign up today! We’ve all been tempted by promotions like this, but before you apply, ask yourself: •
Do the benefits outweigh the costs? These cards may come with additional fees, so be sure to weigh any fees against the benefits you think you’re getting.
•
Is the card as good as it sounds? Make sure you look for expiration periods, as the benefits may not be permanent. You also should check for redemption fees, because the benefits may come with an extra cost when you want to redeem them.
•
Will it change my spending habits? Promotional cards often incentivize buying things you may not need. It’s probably not a good idea to get a card that encourages you to buy something you otherwise wouldn’t have purchased.
You Apply for a Credit Card and Get Denied. Now What? First of all, don’t worry. There are lots of possible reasons someone can be denied, and it happens all the time. If you think the reasons for denial are valid… •
Ask the lender to provide additional information or arrange alternate credit terms.
•
Apply to another lender whose terms are different.
•
Improve your credit history, and then reapply.
If you think the reasons for denial are invalid… Examine your credit report and correct any errors.
•
If the lender did not provide the key reasons for the denial, ask the lender to give you feedback. You are entitled to be provided such feedback within 30 days.
P.23
•
A program to teach students the ins and outs of credit and personal finance
5
Student Loans Whether you get them from the government or through a bank, student loans are another means of credit and should be treated with the same care that you should treat credit cards. While you’re still in school, make sure you only use student loans for education expenses and if you can, avoid paying for tuition with a credit card. When you’re about to graduate, be sure to schedule an exit interview with a financial aid advisor to figure out a repayment plan. You’re entitled to this interview by law. Some of the repayment plans you and your advisor may agree on include: • Standard payment plan: Fixed monthly payments for up to 10 years • Extended payment plan: Fixed monthly payments for 12 to 30 years, depending on the amount borrowed, but accrues more interest than a standard plan
P.24
• Graduated payment plan: Monthly payments start low and rise every two years for 12 to 30 years, thus accruing more interest over time • Income-contingent payment plan: Monthly payments rise based on income and total amount of debt • Income-sensitive payment plan: Monthly payments are tied to percentage of gross monthly income • Income-based payment plan: Available to Direct Loan and FFEL programs, caps the monthly payments at a lower percentage of a narrower definition of discretionary income than the income-contingent payment plan "Loans: Repayment Plans." FinAid! Financial Aid, College Scholarships and Student Loans. 2010. Web. 21 July 2010. www.finaid.org/loans/repayment.phtml
When you’re about to graduate be sure to schedule an exit interview with a financial aid advisor to figure out a repayment plan.
AREYOU
?
CREDIT WISE
6
Beyond the Card: New Ways to Pay Prepaid Cards Prepaid cards can be a good way to learn how to use a credit card because they provide a model for learning how to use a credit card, are a good way to make sure you’re sticking to your budget and may allow you to track your spending. Plus, most pre-paid cards are: • Accepted where debit cards are accepted. •
Safer and more convenient than carrying cash. Depending on the card, you may not be liable for unauthorized purchases if your card is lost or stolen.
•
Easy to get—there is no credit check.
•
Easy to reload online and at thousands of retailers across the country.
There are several types of prepaid cards, so you can pick the option that best suits your needs: Everyday: Best for purchasing things you would normally use cash or checks for
•
Gift: Best for gift-giving when you don’t want to be limited by store or service
•
Travel: Best for spring breaks and studying abroad, as they’re accepted worldwide and allow you the flexibility to get cash back in the currency you need, which is much more convenient than travelers checks
P.25
•
A program to teach students the ins and outs of credit and personal finance
Debit Cards •
Looks like a credit card but it’s not a loan, so there’s no interest
•
Comes straight out of your checking account
•
Widely accepted
•
Helps build good credit practices
•
Can be a good budgeting tool
So, there you have it. You have successfully saturated your brain with credit wise know-how to keep you out of the red and on a successful path to good money management!
P.26
CONSIDER YOURSELF
!
CREDIT WISE
AREYOU
?
CREDIT WISE
Are you Credit Wise? Participant Survey Now that you’re Credit Wise, we want to be sure that you gained useful knowledge and skills that will help you manage your money in the future. Please take this short survey and hand it to your student instructor. The information will help us improve our program and educational materials. Your responses will be kept confidential.
NAME OF YOUR SCHOOL:
WHAT DID YOU THINK?
Please rate the extent to which you agree with the following statements: 1 Strongly Disagree
7 Strongly Agree
1. The education materials (presentation and workbook) provided useful financial education information. 1
2
3
4
5
6
7
2. The instructor helped me better understand why I should care about money management. 1
2
3
4
5
6
7
3. Because of the Are You Credit Wise? program, I now feel better equipped to understand credit and money management. 1
2
3
4
5
6
7
TAKING CHARGE
Please circle the number that best describes the statement, “As a result of the Are You Credit Wise? program, I …”
1. “Plan to create a personal financial plan / budget.” Circle N/A if you already do this: NA
1
2
3
4
5
6
7
6
7
2. “Plan to obtain and examine my credit report.” Circle N/A if you already do this: NA
1
2
3
4
5
A program to teach students the ins and outs of credit and personal finance
3. “Will try to spend less than I earn.” Circle N/A if you already do this: NA
1
2
3
4
5
6
7
4. “Understand the steps I need to take to improve my credit history.” Circle N/A if you already do this: NA
1
2
3
4
5
6
7
5. “Will be more careful about opening new lines of credit and managing my current lines of credit.” Circle N/A if you already do this: NA
1
2
3
4
5
6
7
6. “Better understand what to look for if I decide to get a card (if I’m over 21 or have a co-signer).” Circle N/A if you already do this: NA
1
2
3
4
A FEW QUESTIONS:
What did you like the most about the Are You Credit Wise? program?
How could this program be improved?
Would you recommend this program to others? Yes
No
5
6
7
AREYOU
CONSIDER YOURSELF
?
CREDIT WISE
A program to teach students the ins and outs of credit and personal finance
!
CREDIT WISE
AREYOU
?
CREDIT WISE