Financial Literacy Trivia: Credit

Subject: Credit
If used properly Credit can be your friend. If not used properly Credit can consume your life. Test your Credit knowledge, see if you can answer these 3 questions.

1. Name the three main credit bureaus

2. True or False?
    You should only check your credit when you want to apply for a loan.

3. Which of the following is NOT a way to maintain excellent credit.
    a. Pay your bills on time
    b. Space out new credit
    c. Do not run your credit often
    d. Make only the minimum payments

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Answers:

1. Experian, Equifax and Transunion 

A credit bureau collects and stores credit information on consumers. Each has its own records and individual scores.

2. False

Check your credit once a year. If you have been a victim of identity theft, it is recommended to check your credit every 6 months.

3. (d) Make only the minimum payments

To maintain excellent credit it is important to actively use your credit and pay everything off in full every month.

Financial Literacy Trivia: Budget

There are many misconceptions when it comes to the topic of Budgets and budgeting. See if you can answer these 3 questions.

Subject: Budget

1. Good money management involves having enough money to cover all your __ __ __ __ __, while purchasing __ __ __ __ __ only when you have extra money to do so.

2. True or False?
A budget is only for those who are poor.

3. Which of the following are benefits to budgeting?
a. Control
b. Organization
c. More Money
d. Opportunities
e. All of the Above

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Answers:

1. NEEDS / WANTS 

NEED: Something you must have for survival -- something you cannot live without. i.e Food, Clothing, and Shelter

WANT: Something you would like to have -- something not absolutely necessary for your survival, but that you would enjoy having. i.e. iPods, designer clothes, vacations, Xboxes

2. False

A budget is simply a plan for how to handle your money, a roadmap to give you the money to live the lifestyle you want. 

3. (e) All of the Above

Control - Knowing exactly how much money you have at any given point, put your in the financial driver's seat. 

Organization: Keeping your finances in order is vital, and having a financial plan keeps you organized. 

More Money: Working within a budget will leave you with more money every month. 

Opportunities: Sticking with your budget will open up many financial windows of opportunity. 

Financial Literacy Trivia: Saving

Test your financial knowledge with these trivia questions.

Subject: Saving

1. If your monthly expenses equal $1,000, What is the recommended amount to have in your Emergency Fund? 

2. True or False? 
    A Certificate of Deposit (CD) is an example of a savings product. 

3. Which of the following is NOT a way to save more money? 
    a. Earn more money
    b. Take out a loan
    c. Cut down expenses

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Answers: 

1. $3,000 - $6,000. 

Emergency Funds should equal three to six months of living expenses. 

2. True

A CD is a federally insured savings product that earn interest. You promise to keep you money in for a certain amount of time. Penalties typically apply to early withdrawal. 

3. (a) Take out a loan

Week # 16: Financial Challenge & More Savings Ideas

Week #16:
Deposit Amount: $16.00
Total Savings: $136.00

We are just about 1/3 of the way through 2013! This Financial Challenge is just one way you can add to your savings account. Here are some other alternative ways to put a little bit away over the year...

1. Power Hour
Put away your hourly wage once a week, every paycheck, or once a month.

Example: You make $12.00/hr.

If you put $12.00 into savings a week, you would have $624.00 at the end of the year
If you put $12.00 into savings each paycheck, you would have $312.00 at the end of the year
If you put $12.00 into savings each month, you would have $144.00 at the end of the year.

These amounts may not seem that big in comparison to following the 52 Week challenge, however every penny saved is a step in the right direction on the path to financial wellness. 

2. Percentage Savings
Put away a specific % of your income away once a week, every paycheck, or once a month.

Example: You Make $12.00/hr at a Full-Time Job. Your gross income is $480.00 per week.

If you put 5% into savings a week, which is $24.00 a week, you would have $1,248.00 at the end of the year.

An easy way to do this is to set-up direct deposit through your employer (if they allow) and have a certain percentage go directly into a savings account. If you don't ever see the money, then it doesn't seem like you are saving and before you know it, you have over $1,000 in your savings account.


3. Coin Collection
When ever you make a cash purchase and get coins for change, put that away in a coin bank. The amounts will add up fast. I tried this over a 6 month period when I was in college and saved over $200.00 in that short amount of time.

Another Opportunity to Share Financial Literacy

I was invited to share Financial Literacy information at an event next week. It's a community event that will feature na mea Hawai'i along with college support services for Native Hawaiian students. Because I want to reach the Wai'anae Community, which is predominantly Native Hawaiian, I saw this as an opportunity to collect data via a survey and also just talk candidly with people from the community about the need for financial literacy. I will also utilize this event as a way to share small bits of information about savings, budgets, and credit, and of course I will keep with the theme of the evening and include hua 'olelo hawai'i.

If you are available check out the Ka Lama Education Academy Na Mea Hawai'i Hawaiian Resource Night Event next week Wednesday, April 24, 2013 from 5:00pm -7:00pm at I.N.P.E.A.C.E Wai'anae Office 86-080 Farrington Highway Suite 201 (Behind Rent-A-Center/Hanaras - Upstairs from Waianae Dialysis). Please be sure to stop by and say hi.

52 Week Financial Challenge Updates

Financial Challenge Updates:

I apologize for not posting the reminders for the financial challenge deposits. Here is the current information:
Week #14
(04/05/2013)
Deposit: $14.00
Total: $105.00

Week #15
(04/12/2013)
Deposit: $15.00
Total: $120.00

Again, for those of you who have missed a week or stopped awhile ago. You can either catch up or just pick right up where we are now. For example, if you stopped in Week #10 and you have $55.00 in your Savings. Just start this friday with $16.00. Don't worry too much about catching up unless you have the means to do so, at the end of the year you would still have $1,313 even if you missed these past few weeks.

Increased Credit Card Spending = Stronger Economy... I beg to differ

I came across a headline that read "Hawaii credit and debit card spending up 11%" This is great for Banks and Credit Card Companies and HORRIBLE for consumers, like you and I. These numbers were based off of data from First Hawaiian Bank so of course the article goes on to talk about how Sales in Hawaii have gone up and the President of FHB is quoted as saying "This is a good indication that our economy is getting stronger." 

People are spending more money, great for businesses and the overall Hawaii economy. However, if people are using more and more credit cards to purchase items from these businesses, then what is that doing for the people of Hawaii? Putting our people in debt is what itʻs doing! And that is not right in my book. I would be happy to see a headline that reads "Sales in Hawaii are up, Meanwhile consumer credit card debt is at all time low!" Then our economy will be truly getting stronger.