NspireFinancialLiteracy

nSpire Financial Literacy with Neches Federal Credit Union

How to Open an Account • In person at a financial institution or online • Typical items needed are valid ID and social security number NECHES FEDERAL CREDIT UNION

Checking vs Savings Accounts Checking Savings • Easy access to funds • Limited Access • Debit card transactions • A place to stash money • ATM withdrawals • Bill pay for emergencies and • Check withdrawals long term goals • Can be linked to checking in order to transfer funds • Higher interest rates for dividends NECHES FEDERAL CREDIT UNION

Pay Day! Now what? • Deposit into account • Cash check • Set up direct deposit with employer NECHES FEDERAL CREDIT UNION

Understanding Gross vs Net Pay Gross: Net: • Earnings before taxes, • Earnings after taxes benefits and other benefits and other payroll deductions payroll deductions • Federal income tax • Social security tax • Medicare tax • Applicable state or local taxes • Retirement • Medical insurance NECHES FEDERAL CREDIT UNION

Building a Budget and Why It’s So Important A budget helps you to live within your means and stay on track towards your financial goals How to Build a Budget • Track spending • Determine how much money you make monthly • Calculate and deduct required expenses • Determine if income covers necessary expenses • Allocate any funds after expenses to savings, emergency fund, giving, etc. NECHES FEDERAL CREDIT UNION

Common Expenses After Graduation • Gas • Car Note • Food • Car Insurance • Rent and Utilities • College Tuition • Cell Phone Bill • Books and Supplies NECHES FEDERAL CREDIT UNION

Loans In order to get a loan, a person: • Applies for a loan • Credit report is pulled • Loan request is reviewed • Loan is approved or denied based on ability to pay note, credit score, payment history, debt to income ratio, etc. Many types of loans including: • Auto • Credit Cards and Lines • Personal of Credit • Debt Consolidation • Student Loans and • Home Personal Computer • Recreational Loan NECHES FEDERAL CREDIT UNION

What is a Credit Score? A number designed to represent a consumer’s creditworthiness. Score ranges from 300 to 850 with categories of poor, fair, good, very good, and excellent Made up of four categories: • Personally Identifiable Information • Collections and Public Records • Credit Accounts (Trade Lines) • Credit Inquiries NECHES FEDERAL CREDIT UNION

Credit Score Usage Used for: • Loan approval • Interest rates • Pre-employment background checks • Lease applications • Insurance rates • Utility services NECHES FEDERAL CREDIT UNION

Ways to Improve and Establish Credit • On time payments • Utilization • Colorful credit • Limit inquiries • Avoid accounts going to collections • Patience • Monitoring credit report annually NECHES FEDERAL CREDIT UNION

Setting Yourself Up for Financial Success • Establish short and long term goals • Start Saving NOW • Build an emergency fund • Understand the difference between wants and needs • Live within your financial means • Be cautious of accruing too much debt • Be responsible when it comes to paying bills, opening credit accounts and making impulse purchases NECHES FEDERAL CREDIT UNION

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