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Money Management Skills: The Education That our    Schools Missed.             By       Gabriel Mendoza
Disclosure• All of this information was retrieved for  education purposes only any relationship to  your life it is just c...
The “F” word that will change your world.               What is FICO?  • FICO(R) mid-1980s after analyzing raw data   prov...
How is my Score Calculated?• Your score is calculated by a series of questions   based on both your credit report & debt-t...
Most Weighted Factors•    Current balances on accounts•    too few bank revolving accounts •   too many bank revolving acc...
What is Considered a Good score?• A FICO score of 700 and higher means  Excellent or Very Good credit.• 680 to 699 means G...
Better Your Credit• pay bills on time.• Try to keep the amount borrowed under  35-50% of the credit limit.• Call every six...
• Never max a credit card or your car   insurance will go up.• Avoid Department store credit cards(i.e. Victoria Secret, J...
Compound Formula A = P (1 + i )                     nA = P(1 + )                     r                                m   ...
A = Pe   rt              Periodic Compounding        A = Pe                                           rt P = money, r = in...
Savings Plan Formula      (Regular Payments)                     r                          ( mt )                     ...
Loan Payment Formula        (Installment Loans)                           r                       P×             PMT =...
What I Need to Know to Buy a Home • Where do I want to live.     http://www.realtor.com • Who is my neighbor? http://216.1...
How Much is My Future Home      www.zillow.com      http://www.elpasocad.org
Cry baby CryHow much can I affordhttp://finance.yahoo.com/calculator/real-estate/hAmortization calculatorshttp://finance.y...
PMI• Principal Mortgage Insurance• 20% down• 45-60 dollars a month• 1% of the value of the home
Help for Teachers• The Teacher Next Door program was  established by the Department of Housing and  Urban Development (HUD...
Teacher Next Door ProgramHUD phone number 1-800-225-5342DHUDDenver Homeownership CenterProgram Support Division -23rd Floo...
Other Calculators• Credit cardhttp://www.csgnetwork.com/creditcardcalc.html• Retirementhttp://finance.yahoo.com/calculator...
Educational/Fun Websites•   www.ohdontforget.com•   www.howstuffworks.com•   www.travelzoo.com•   www.apple.com/trailers• ...
Contact Information  • Gabriel Mendoza• gmendo24@epcc.edu    • 915-831-4403
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Money talk

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Money talk

  1. 1. Money Management Skills: The Education That our Schools Missed. By Gabriel Mendoza
  2. 2. Disclosure• All of this information was retrieved for education purposes only any relationship to your life it is just coincidence.• All of the material presented was retrieved from the internet.• I do not claim to be a financial advisor or author of the material.
  3. 3. The “F” word that will change your world. What is FICO?  • FICO(R) mid-1980s after analyzing raw data  provided by Experian, Equifax and  TransUnion. • FICO score -- its short for Fair Isaac Corp. •  Experian/Fair Isaac Risk Model (Experian),  BEACON (Equifax) and FICO Risk Score,  Classic (TransUnion) •
  4. 4. How is my Score Calculated?• Your score is calculated by a series of questions  based on both your credit report & debt-to-income  ratio.  Each answer  accumulates a certain number of  points that are then added together for your final  score.  A typical scoring considers: • How long youve lived at your current address • Your job or profession • Your financial obligations (debt-to-income ratio) • Any late payments • The amount of credit you have outstanding • The amount of credit you are using • The amount of time youve had credit established
  5. 5. Most Weighted Factors•  Current balances on accounts•  too few bank revolving accounts • too many bank revolving accounts • number of accounts with balances• number of accounts opened in the last 12 months•  length of time accounts have been established•  amount of past due accounts, number of delinquent  accounts•  too few accounts rated "current," recent derogatory  public record of collection•  past due balances, number of credit inquiries made
  6. 6. What is Considered a Good score?• A FICO score of 700 and higher means Excellent or Very Good credit.• 680 to 699 means Good.• 620 to 679 is OK.• Less than 620, they will not even lend you the pencil to fill the application.
  7. 7. Better Your Credit• pay bills on time.• Try to keep the amount borrowed under 35-50% of the credit limit.• Call every six months for a lower APR• Wants Vs. Needs• Use a payment calculator• Don’t fall for tricks (i.e. six months free interest)• Don’t close accounts
  8. 8. • Never max a credit card or your car insurance will go up.• Avoid Department store credit cards(i.e. Victoria Secret, JC penny, SEARS, Lowes, Homedepot, compusa, bestbuy)• Automatic Withdraw• NEVER Cosign for ANYBODY• Buy your home first than your car• TRY to read your credit card statements• Children
  9. 9. Compound Formula A = P (1 + i ) nA = P(1 + ) r m mt• P = money, r = rate or %, m = # of times they charge interest, t = time in years, and A = total to pay.
  10. 10. A = Pe rt Periodic Compounding A = Pe rt P = money, r = interest or %, t = time in yrs, e = 2.718, and A = total to pay.
  11. 11. Savings Plan Formula (Regular Payments)  r ( mt )  1 +  − 1  m     A = PMT × r   m A = accumulated savings plan balancePMT = regular payment (deposit) amountr = annual percentage rate (as a decimal) m = number of payment periods per year t = number of years
  12. 12. Loan Payment Formula (Installment Loans) r P×  PMT = m   r ( − mt )  1 − 1 +     m   PMT = regular payment amount P = starting loan principal (amount borrowed) r = annual percentage rate m = number of payment periods per year t = loan term in years
  13. 13. What I Need to Know to Buy a Home • Where do I want to live. http://www.realtor.com • Who is my neighbor? http://216.140.183.80/SOMAP/somapSearch.cfm http://www.familywatchdog.us
  14. 14. How Much is My Future Home www.zillow.com http://www.elpasocad.org
  15. 15. Cry baby CryHow much can I affordhttp://finance.yahoo.com/calculator/real-estate/hAmortization calculatorshttp://finance.yahoo.com/calculator/real-estate/hBi-weekly calculatorhttp://mortgage-x.com/calculators/biweekly.htm
  16. 16. PMI• Principal Mortgage Insurance• 20% down• 45-60 dollars a month• 1% of the value of the home
  17. 17. Help for Teachers• The Teacher Next Door program was established by the Department of Housing and Urban Development (HUD) to offer single-family houses, townhouses and condominiums for sale to a teacher at a 50 percent discount. The goal through the Good Neighbor Next Door program is to encourage teachers to buy homes in low and moderate-income neighborhoods.http://www.fhainfo.com/teachernextdoor.htm
  18. 18. Teacher Next Door ProgramHUD phone number 1-800-225-5342DHUDDenver Homeownership CenterProgram Support Division -23rd Floor1670 BroadwayDenver, CO 80202-4801
  19. 19. Other Calculators• Credit cardhttp://www.csgnetwork.com/creditcardcalc.html• Retirementhttp://finance.yahoo.com/calculator/retirement/ret-02• Collegehttp://finance.yahoo.com/calculator/college-education/c
  20. 20. Educational/Fun Websites• www.ohdontforget.com• www.howstuffworks.com• www.travelzoo.com• www.apple.com/trailers• www.skype.com• www.engaget.com• www.atomiclearning.com• www.portablesoftware.com• www.google.earth.com• www.kbb.com www.edmundlist.com
  21. 21. Contact Information • Gabriel Mendoza• gmendo24@epcc.edu • 915-831-4403

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