1. Financial freedom ! Just information away!
Presenter: Patrina Parkes-Gibbons FSS, LUTCF

2. Credit Cards - Advantages
Helps to manage your spending
Keep your business to yourself
Use it to get rewards
Use it to save money
Use it for peace of mind when traveling
Borrow for free
Get up to 55 days credit

3. Credit Cards - Disadvantages
Yearly fee
Late payment fee
Cash advance fee
Over the limit fee
Monthly interest

4. New credit card holder - JANE
Jane’s monthly cash spending
Food ………………….30,000 Total …… $79,000
Electricity …………. 7,000
Water………………… 5,000
Cable…………………. 3,500
Internet …………….. 3,500
Toll……………………. 5,000
Gas……………………. 15,000
Lunch ……………….. 10,000

5. Jane`s salary 30/7/2014……………………………………. $100,000
Jane’s normal recurring expenses ………….. 79,000
Jane is encouraged to get a credit card as at 30/7/2014
Limit on card …………………………………………….. $110,000
Upon receipt of card Jane is encouraged to
open a fixed deposit ………………………………. 79,000
Jane opens 30 day fixed deposit @3% yearly

6. July 30th
Jane pays the following bills using her card:
Electricity …………. 7,000
Water………………… 5,000
Cable…………………. 3,500
Internet …………….. 3,500
Total ……………………………………… 19,000

7. Jane’s statement is generated on the 5th
of each month
Jane’s statement was generated for $19,000 on
August 5 to be paid by August 30th
Jane used the card after the 5th
to complete all the
other payments, such as food, gas, etc.

8. Benefits to Jane
1. Savings - $79,000 on fixed instrument
2. Cash back on spending
3. 25 and 55 days credit
4. Money still remains in salary account at the end of
the month
5. Possible savings from online bill payment

9. Questions??

10. Questions??