The document outlines 10 smart money moves to help manage personal finances effectively. It recommends creating a financial plan by setting specific, measurable, attainable and time-bound savings goals. It also suggests choosing the right financial products by thoroughly researching savings vehicles, investments and loans. Additionally, it advises saving for emergencies by having 3-6 months of living expenses readily available.

1. 10 Smart Money Moves Department of Financial Institutions ( www.dfi.wa.gov )

2. Jeremy Lushene [email_address]

3. Move 1: Create A Financial Plan

4. Think… Where Do You Want Your Money To Go? Retirement? Down Payment For A House? School? Porsche 911?

5. Now Set Those Goals Short Term – An iPhone 4 Medium-Term – Cruise To Mexico Long-Term – Down Payment For A Home

6. SMART Goals Only S pecific – I want to take a cruise this February M easurable – I need $1500 for the cruise. A ttainabl e – I will put aside $300 a month R ealistic – I can save $150 a month by cutting Cable TV and Internet and another $50 a month by not eating out. T ime-Bound – I will save $1500 in 5 months

7. So, How Do You Start? The Dirty B Word… BUDGET! Free Budget Tool At www.choosetosave.org

8. Move 2: Choose The Right Products

9. Think About This… Most of us spend hours researching when we buy a new car. We read reviews We think about our situations (kids, gas mileage, etc) We shop around for a good deal Yet, many of us don’t do this with our finances?

10. Research Products Does the financial product fit your need/goal? Are you getting the most bang for your buck? Are there similar products? What are the risks/rewards? Investment? Is the product registered?

11. How to Research Savings Vehicles Call around for rates or terms that suit your needs or visit websites like www.bankrate.com Investments Read prospectus. Review rating websites such as www.morningstar.com and check with DFI to see if investment is and person selling is registered www.dfi.wa.gov . Mortgages Attend a free Washington Homebuyer class http://www.wshfc.org/ Check rates and forecasts with the Mortgage Bankers Association www.mbaa.org

12. Who Can Help Certified Financial Planners ( http://www.cfp.net/search/ ) Investment Advisers (Check license/background with DFI) Certified Public Accountants ( http:// www.wscpa.org ) Your Local Bank or Credit Union

13. Move 3: Save For A Rainy Day

14. Emergency Savings Needs To Cover 3-6 Months Recession? 6-12 Months

15. How Much Do I Need? Role-Play (Job Loss, For 6 Months) How Much Do You Need For: Bills Loans Food Things like toothpaste, and toilet paper

16. Where To Store Emergency Money Liquid Account Account you can access easily Options: Savings Account Money Market Account Talk To Your Bank Or Credit Union

17. Move 4: Check Backgrounds Of Financial Professionals

18. Who To Check With Financial Professionals Investments, Mortgage Brokers, Payday Lenders, Lending Companies, Money Transmitters Department of Financial Institutions www.dfi.wa.gov or 1-877 RING DFI Other Companies Ask and see if they are registered with the BBB or are a registered business. Research to see if they need to be licensed to do business in the state. Better Business Bureau www.bbb.org

19. Move 5: Use Credit Wisely

20. Who Looks At Your Credit These Days? Future employers Insurance companies Cell phone companies Lenders Other credit card companies Landlords

21. Who Stores Your Credit Information? 3 Major Credit Bureaus Monitor You 1) TransUnion 2) Equifax 3) Experian

22. FICO Scores Developed By Fair Isaac Corporation Used By Majority Of Lenders Score For Each Of 3 Credit Bureaus 750-850 Excellent 700-749 Very good 650-699 Good credit 600-650 Fair 550-600 Poor

23. How You’re Scored Payment History 35% Amounts Owed 30% Types Of Credit 10% New Credit 10% Length Of History 15%

24. Avoiding Credit Trouble Pay Your Bills On Time Pay Down Debt (Remember 30%) Use Credit Wisely & Lightly Check Credit Report For Errors Monitor Your Score

25. Move 6: Review Important Financial Documents

26. Your To Do List Check Account Statements (1 x month) -- Look for inaccuracies, fraudulent charges Check Credit Card Statements (1x month) -- Look for inaccuracies, fraudulent charges Review Loan Statements (1x month) -- Look for any changes to loan terms

27. To Do List Continued… Check Your Free Credit Report (3 x year) -- www.annualcreditreport.com -- Look for inaccuracies, report errors immediately Check Investment Statements -- Don’t freak out! Review Financial Goals & Plan (1 x year) -- Adjust allocations as necessary

28. Move 7: Protect Your Finances and Identity

29. 1 In 5 Washington Residents Victim Of ID Theft In Past 5 Years Identity Theft 911 Report, 2007

30. Tactics ID Thieves Use Dumpster Diving Old Fashion Theft Technology/Hacking/Skimming/Phishing Pre-Texting Smishing Wireless Hacking

31. How To Protect Yourself Cross Cut Shred Documents With Your Info Stop Junk Mail – Opt Out Of Credit Offers www.optoutprescreen.com Register For The Do Not Call List www.donotcall.gov Lock Up Important Documents Check Account Statements and Credit Report for fraudulent charges

32. Warning Signs You’re A Victim Denied Credit Unexpected Bill Bills Stop Arriving Fraudulent Charges Credit Cards Show Up

33. Move 8: Stay Up To Speed On Latest Scams

34. The Latest Scams Employment Scams Protect Your SSN, Don’t Pay To Work Foreclosure Rescue Scams Beware Of Too Good To Be True Offers Credit Card Authorization Scams Call Your Bank Directly If Someone Calls Asking For Information Facebook/Social Media Scams If A Friend Is Trapped Overseas, Hopefully They’ll Call

35. More Information On Scams DFI – www.dfi.wa.gov/consumers/alerts.htm Attorney General’s Office - www.atg.wa.gov Federal Trade Commission- www.ftc.gov OnGuardOnline - www.onguardonline.gov Better Business Bureau - www.bbb.org Local News

36. Move 9: Take Advantage Of Free Resources

37. Free Resources 1) DFI’s Publications and Blog www.dfi.wa.gov/consumers/publications.htm www.finlit.blogspot.com 2) Financial Education Clearinghouse www.dfi.wa.gov /financial-education 3) Local Money Management Class Calendar www.dfi.wa.gov/financial-education/calendar.htm 4) MyMoney.Gov

38. Move 10: Know Where To Get Help

39. Help Complaint? DFI or Attorney General’s Office http:// www.dfi.wa.gov or http:// www.atg.wa.gov Identity Theft Attorney General’s Office or Your Local Bank/Credit Union Foreclosure – Free Counseling http://www.homeownership.wa.gov Credit Help National Foundation for Credit Counseling http://www.nfcc.org/

40. More Help General Consumer Issues Federal Trade Commission or Attorney General http:// www.ftc.gov or http:// www.atg.wa.gov Banks or Credit Unions DFI http:// dfi.wa.gov Investment Brokers DFI http:// www.dfi.wa.gov

41. Questions? Jeremy Lushene [email_address] (360) 902-0506 dfi.wa.gov