Transcript Financial Foundation from the Florida Five

Financial Foundation
A Financial Literacy Project
Sponsored by Carolina First Bank
A Trade Name of TD Bank N.A.
Introduction
& Goals
 Give an overview of deposit account types, savings and
creating a budget.
 Educate you on the importance of credit and provide the
tools necessary to achieve both personal and
professional goals.
 Review steps to protect your identity and what do to if
you are a victim of fraud.
 Teach the foundations for starting your own small
business.
Outline
 Opening / Introductions
 Banking Basics- types of accounts
 Savings & Budgeting
 What Is Credit?
 Fraud & Identity Theft
 Steps to Starting a Small Business
 Q&A / Wrap-up
Banking Basics
 Opening and maintaining a checking account
 Types of deposit accounts
• Non-interest bearing accounts
• Interest-bearing
– Checking
– Savings/ Money Market
– CD’s & IRA’s
 Types of Financial Institutions
• Bank, Credit Union, Thrift
 Reconcile your checking account
 Debit cards, Online Banking, & Bill Pay
• Benefits and concerns
• New debit card regulation- how it relates to NSF and
overdrawing the account.
Savings
 Savings tips
• Needs vs. wants
• Direct deposit
• Pay bills online
 Interest Earned- examples
• Savings Calculator- see handout
• Compounding Interest
– How often the interest earned is “paid” to the
account; added back to the balance
– Savings accounts usually have lower balance
requirements and lower interest rates
– Money Market accounts, CD’s and investments
can earn a higher return, but typically have
higher opening balance requirements.
– Investments can have risk associated with
them- depends on account type!
Savings
 Retirement savings
• Start early
• Give maximum allowed
• If your company does not offer a 401K plan, start an
Individual Retirement Account (IRA) with your bank
 How to prepare a budget
• Know what you spend
– Monthly fixed expenses
» Rent, insurance, phone
– Other expenses
» Books/tuition, utilities
• Save for emergencies
– Car issues, illness, etc.
What Is Credit?
 What is credit and why is it important?
• Establishing Credit
• What makes up a credit score?
• Rebuilding Credit
 Types of loans
• Installment / Term Loan
• Revolving
• Secured vs Unsecured
• Mortgage loans
 Tips for managing your credit
 How to get free credit report once a year
• www.annualcreditreport.com
• Not www.freecreditreport.com – will charge you fees!
What Is Credit?
 Tips to consider when shopping for a credit card
• Annual Fees?
• Interest Rate?
• Discounts or Incentives, such as points or cash back for using
the card?
• How much will it cost to use credit? See handout
 Tips on how to use your credit card responsibly
• Pay off in full each month if possible.
• Only use for emergencies if you do not anticipate not being
able to pay off in full.
• Pay more than the minimum payment required!
• Weigh out the needs vs wants- do not make impulse
purchases!
Starting a Small Business
 The Business Plan• Set goals!
• Know your ABC’s:
– Accountant
– Banker
– CPA
 Choosing the Legal Structure
Online Resources & Tools:
www.business.carolinafirst.com
www.sba.gov
 Obtaining business financing
www.score.org
 Registration and licensing
www.clemson.edu/sbdc
 Bookkeeping- financial records
• Profit-Loss Statement
• Balance Sheet
http://scsbdc.moore.sc.edu/
Q&A / Wrap-up
Thank you
For more information, contact:
Stacy Sanders
VP/ Branch Manager
[email protected]
864.552.9025
102 S. Main Street
Greenville, SC 29601
This information is provided for educational purposes only and is not intended as financial and/or legal advice.
Carolina First is a division of The South Financial Group, Member FDIC