S.W.Y.M Program Workbook
Transcript of S.W.Y.M Program Workbook
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
S.W.Y.M Program Workbook (Smart With Your Money)
Sobering Statistics 78 percent of American households -- about 91.1 million -- had one or more credit cards at the end of 2008** 82 percent of military servicemembers reporting that they are at least $10,000 in credit card debt***
One in four servicemembers with checking accounts reported overdrawing their accounts, which
typically incurs significant fees***
More than one in five (21 percent) servicemembers used high-cost, non-bank borrowing such as
payday or auto title loans in the last five years***
Only 50 percent of military respondents have a "rainy day" fund for unanticipated financial
emergencies***
1. ___________________ minus ______________ = Net Worth
2. An asset is defined as:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
3. A liability is defined as:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
TAKE HOME ASSIGNMENT # 1:
Use the Net Worth Worksheet to calculate your net worth.
TAKE HOME ASSIGNMENT # 2:
Use the Budget Worksheet to list ALL monthly expenses and monthly income.
*Experian Marketing Insight Snapshot, March 2009. **Nilson Report, April 2009.
***FINRA Investor Education Foundation, December 2009.
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Net Worth Worksheet
Assets (Enter Estimated Values)
Home $
Car(s) $
Motorcycle/Boat $
401K $
IRA $
Other Retirement $
Personal Assets $
Stocks & Bonds $
Cash $
Other $
Other $
Other $
Other $
Other $
Other $
Other $
Other $
TOTAL ASSETS $
Net Worth = (Total Assets minus Total Liabilities) __________________
Re-evaluate your Net Worth every 3 months to track your progress. Make additional copies
of this sheet if necessary.
Liabilities (Enter Total $ Owed)
Owed on Home $
Owed on Car $
Owed on Motorcycle/Boat $
Home Equity Loan $
Student Loan $
Total CC Debt $
Medical Bills $
Other $
Other $
Other $
Other $
Other $
Other $
Other $
Other $
Other $
Other $
TOTAL LIABILITIES $
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Day to Day Personal Spending Tracking List
Date Expense/Name Cash/Debit/Check Charge/Credit
Total for 2 weeks________________________
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Budget Worksheet Sample Monthly Expenses
Mortgage(s) $ Travel $
Rent $680 Newspaper/Books/Mags $
Gas/Oil $30 Memberships (Gym, etc.) $
Electricity $60 Alcohol / Tobacco $
Telephone $50 Pet Care $
Water/Sewage $25 Life Insurance $
Cable $55 Auto Insurance $75
Internet $0 Medical/Health $
Charitable Donations $ Credit Card Payments $25
Laundry/Dry Cleaning $ Personal Loan Payment $
Gifts $ Student Loan $
Medication $ Other Entertainment $425
Clothing $130 Other Miscellaneous $100
Personal Care $ Other Renters Insurance $20
Car Payment $300 Other ________________ $
Gas/Car Expenses $145 Other ________________ $
Transportation $ Other ________________ $
Food/Groceries $200 Other ________________ $
Day Care $ Other ________________ $
Savings/Invest./Retirement $ Other ________________ $
Education/Tuition $ Other ________________ $
Cell Phone $50 Other ________________ $
TOTAL EXPENSES: $ _2370__
Monthly Income
Get paid bi-weekly? Take the total amount of your paycheck and multiply it by 2.167. Get paid weekly? Take the total amount of your paycheck and multiply it by 4.33 Client Salary (Net) $2275 Annuity $
Co-client Salary (Net) $ Child Support $
Part time income $ Alimony $
Social Security $ Rental Income $
Disability $ Food Stamps $
Retirement $ Other _______________ $
Pension $ Other _______________ $
Military $ Other _______________ $
TOTAL INCOME: $ _2275__
TOTAL INCOME minus EXPENSES: $ _-95__
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Budget Worksheet Date: ____________________
Monthly Expenses
Mortgage(s) $ Travel $
Rent $ Newspaper/Books/Mags $
Gas/Oil $ Memberships (Gym, etc.) $
Electricity $ Alcohol / Tobacco $
Telephone $ Pet Care $
Water/Sewage $ Life Insurance $
Cable $ Auto Insurance $
Internet $ Medical/Health $
Charitable Donations $ Credit Card Payments $
Laundry/Dry Cleaning $ Personal Loan Payment $
Gifts $ Student Loan $
Medication $ Other ________________ $
Clothing $ Other ________________ $
Personal Care $ Other ________________ $
Car Payment $ Other ________________ $
Gas/Car Expenses $ Other ________________ $
Transportation $ Other ________________ $
Food/Groceries $ Other ________________ $
Day Care $ Other ________________ $
Savings/Invest./Retirement $ Other ________________ $
Education/Tuition $ Other ________________ $
Cell Phone $ Other ________________ $
TOTAL EXPENSES: $ _____________
Monthly Income
Get paid bi-weekly? Take the total amount of your paycheck and multiply it by 2.167. Get paid weekly? Take the total amount of your paycheck and multiply it by 4.33 Client Salary (Net) $ Annuity $
Co-client Salary (Net) $ Child Support $
Part time income $ Alimony $
Social Security $ Rental Income $
Disability $ Food Stamps $
Retirement $ Other _______________ $
Pension $ Other _______________ $
Military $ Other _______________ $
TOTAL INCOME: $ _____________
TOTAL INCOME minus EXPENSES: $ _____________
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Financial Terms & Formulas
Yearly Finance Charge = Total Debt multiplied by APR (Finance Charge)
Monthly Finance Charge = Yearly Finance Charge divided by 12
Credit card companies require a Minimum Monthly payment which is typically 2 % to 3 %
of the Balance = Minimum % multiplied by total debt.
Principal Payment = Min. monthly payment minus monthly finance charge
Months to pay off = Total Debt divided by Principle payment
Years to pay off = Months to pay off divided by 12
Fixed Payment = Monthly payment is always the same amount
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Credit Card Debt Worksheet Date: ____________________ List of Creditors (Gather information from your most recent monthly statement)
Creditor Name Balance APR Monthly Finance Charge
Min. Payment
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
$ % $ $
Total $_________ $ $
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
How Do I know what to pay off first?
1. Pay off the Card with the lowest balance first.
a. This strategy is a great way to build up a little momentum. With this strategy, you
increase your payment on the credit card with the lowest balance, while continuing
to make the minimum payment on the rest of your credit cards. Once you pay off
the card with the lowest balance, you move on to the card with the next lowest
balance, and so on.
2. Pay of the card with the highest APR first
b. From a dollar and cents point of view, this strategy makes the most sense. With
this strategy, you increase your payment on the credit card with the highest annual
percentage rate while continuing to make the minimum payment on the rest of your
credit cards. Once you pay off the balance on the card with the highest interest rate,
you move on to the card with the second highest interest rate, and so on.
3. Consolidate all credit card balances to one card
c. This payment strategy makes things easy, but it also makes it easy to let things
slide. So pick a payment amount, double or triple your minimum payment (or
whatever you can afford), and be sure to stick with it.
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Glossary of Terms
Annual fee An annual or yearly fee charged by a credit card company each year for use of a credit card. This is a separate fee from interest rate on purchases.
Annual percentage rate (APR)
The annual percentage rate (APR) is the interest rate charged on credit card balances expressed in a standardized, annualized way. This rate is applied each month that an outstanding balance is present.
Balance
The amount owed on a loan or credit card or the amount in a savings or investment account.
Bankruptcy A legal proceeding declaring that an individual is unable to pay debts. Chapters 7 and 13 of the federal bankruptcy code govern personal bankruptcy.
Collection Agency A collection agency is a business that pursues payments on debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.
Credit Report
A loan and bill payment history, kept by a credit reporting company and used by financial institutions and other potential creditors to determine the likelihood a future debt will be repaid.
Credit Score
A number generated by a statistical model that objectively predicts the likelihood that a debt will be repaid on time.
Delinquency
The failure to make timely payments under a loan or other credit agreement. Due Date
Credit card bills have a due date. If your credit card payment does not arrive -- and get posted -- by the due date, you will be charged a late fee. It's important for credit cardholders to watch their payment due dates, since they sometimes change. Some credit card issuers allow their customers to set their own due dates.
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Fixed Payment Monthly payment is always the same amount (i.e. car loan) or a constant amount paid to a credit card bill to pay it off faster and spend less on interest.
Minimum Payment The minimum payment is the lowest amount of money that you are required to pay on your credit card statement each month. Your credit card terms and conditions will explain how your minimum payment is calculated. Typically store cards are usually 1% and bank cards are 2.08% of your balance.
Over-limit fee A fee charged when your balance goes over your credit limit (also known as over the limit fee). When cardholders attempt to make purchases that will put them over their credit limit, card issuers used to routinely decline the transactions. The Credit CARD Act of 2009 requires that credit card issuers give account holders the option to opt-in to over-limit fees. Without the consumer's consent, they cannot charge over-limit fees.
Secured credit cards
Secured credit cards require collateral -- usually a cash deposit with the issuing institution -- for approval. They are designed for people with no credit or poor credit. Some secured card marketers load these cards with high fees and unfavorable terms, taking advantage of the fact that those seeking the cards are often unsophisticated or desperate. Research the terms and conditions before opening a secured card.
Terms and conditions
Terms and conditions is the common name for the document in which credit card issuers describe in detail their practices. After a consumer applies for a credit card and receives it in the mail, the first use of the card turns the terms and conditions into a legal contract.
Unsecured credit cards Unsecured credit cards are the most common type of credit cards. They are not secured by collateral. That means that unlike secured loans, such as mortgages or auto loans, unsecured credit cards are not directly connected to property that a lender can seize of the cardholder fails to pay. Issuers of unsecured cards must make use of other means -- such as the courts or wage garnishment -- to collect unpaid debts. Customers qualify for unsecured cards based on their credit history, their financial strength and their earnings potential.
Wage Garnishment
A process granted by a court order by which a lender obtains, directly from an employer, part of the salary of an employee who is behind in payments to the lender.
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
Presentation Questionnaire
Date of Presentation: ____________
Presenter: ___________________
Age range: 0-17, 18-24, 25-34, 35-49, 50+
Gender: F/M
Teacher / Professor __________________
Ethnicity select one: African American, American Indian or Alaska Native,
Asian, Hispanic or Latino, Native Hawaiian or Other Pacific Islander,
White, Decline to State, Not Applicable
Please answer the following statements/questions to the best of your ability.
1. In the last year have you looked at your credit report?
Yes No
2. Do you know your credit score?
Yes No
3. Do you know your debt to income ratio?
Yes No
4. Do you use a budget?
Yes No
6. Do you know where all your money is going? (Have you ever tracked your expenses)
Yes No
7. Do you have a savings plan?
Yes No
8. Are you or your spouse part of the United States armed forces?
Yes No
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9325 Sky Park Court, Suite 260
San Diego, CA 92123 Phone: 858-818-7007
www.sdflc.org
9. What Branch of the military?
United States Navy United States Marine Corps United States Army
United States Air Force United States Coast Guard Unites States
National Guard
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