Financial Jigsaw Puzzle 2011

1. Financial Jigsaw Puzzle 2011 Brought to you by Congressional Federal Credit Union

2. Agenda • Our Goals & Dreams • Spending Habits – Psychology 101 • Who’s it hurting? • How do we Budget? • Repay Debt while saving for Other Goals • Set your Own Credit Score # • Investing • Summary

3. Goals & Dreams • Grad School • First Paying Job • Marriage • First Home • Sports Car • Kids/Family • Great Job • Early Retirement

4. The Psychology of it all • Spending Choices/Self-Evaluation • Keeping up with the Jones • The Role of Advertising • Spending Habits • Impulse Buying/Retail Therapy Why should we change these behaviors?

5. Who’s it hurting? • 1 medium cup of white chocolate mocha specialty coffee = $4.35 • 1 coffee a day per month = $130.00 • 365 cups = $1560 Brewing at home - $171.55 annually What else could we do with $1388.45?

6. Our Costly Vices

7. How do we Budget? • Stick to a Budget • What is your income? • What are your fixed expenses? • What are your variable expenses? • Keep good records of incoming & outgoing funds • Needs vs. Wants • 80 vs. 20 “Do something every day that you don’t want to do; this is the golden rule for acquiring the habit of doing your duty without pain.” -Mark Twain

8. Track Where It Goes & Construct the Budget • Write it all down • Paper budget form • Spreadsheet • Computer Tracking • MoneyTracker & GoalBuilder w/ CFCU • Use checks or debit cards • Put aside that credit card • Monitor ATM use Expect setbacks! Reward yourself along the way!

9. Repay Debt While Saving for Other Goals • Pay off High Interest Rate Credit Cards • A $2000 Balance CC @ 20% int. rate w/ only min payments will take 31 yrs to payoff • Don’t use Credit Cards for Emergencies • Don’t wait to save until bills are all paid Consider yourself an essential expense!

10. Set your own Credit Score # How FICO Scores are Determined

11. FICO Score Mortgage Loan Example *Example purposes only: $500 K – 30 YR Fixed Mort.

12. Keep Your FICO Score High • Pay on time, every time • Pay off collection accounts • Keep your old accounts • Avoid “maxing out” accounts • Limit balance transfers • Avoid excess credit applications • Annualcreditreport.com

13. Investments • Small or Big • Find a company you frequent • Do some research • Buy a little-be willing to write it off • Don’t look at your statements too often • Speak to a Licensed Professional Start Now because Time is Money!

14. Sooner You Start the Better *Calculation based on $450 monthly contributions @ 10% ave. annual rate of return

15. Summary We saw… • The impact of society, situation, and advertising on spending • How little purchases can hurt a lot • Budgeting techniques and steps • How to pay off debt and save • How to manage your credit score • Investing for beginners • Retirement planning

16. Tell Everyone! Tell your friends, family, co-workers! Knowledge is power, so share what you’ve learned with others! Wherever life takes you, we’re there!

17. Contact Information • Congressional Federal Credit Union 800.491.2328 / www.congressionalfcu.org • BALANCE is a financial education and counseling service available as a benefit of credit union membership • Money management counseling • Debt repayment options • Credit report review • 888.456.2227 / www.balancepro.net • Or see your Financial Representative today!

18. Questions or Comments? Thank you!