Professional Documents
Culture Documents
Preia Controlul Financiar
Preia Controlul Financiar
For more guidance on from the nation’s three T-shirt or Frisbee, or 10 people to save money for
how to get out of debt major credit bureaus — percent off your first their long-term goals, too,
safely or find a reputable Equifax, Experian and purchase if you just fill out including perhaps buying a
credit counselor, start at TransUnion — to make an application for a new home, owning a business
the Federal Trade sure their information card — but you’ve got to or saving for your
Commission (FTC) Web accurately reflects the consider the possible retirement (even though it
site at www.ftc.gov/bcp/ accounts you have and consequences we’ve just may be 40 or 50 years
conline/edcams/credit/ your payment history, described. “Don’t sign up away).
coninfo_debt. especially if you intend to for a credit card just to get
Start by “paying yourself
apply for credit for a great-looking
Paying bills late or first.” That means even
something important in T-shirt,” Kincaid added.
otherwise tarnishing before you pay your bills
the near future. For “You may be better off
your reputation. each month you should
information about your buying that shirt at the
Companies called credit put money into savings for
rights to obtain free copies store for $14.95 and saving
bureaus prepare credit your future. Often the
of your credit report and yourself the potential costs
reports for use by lenders, simplest way is to arrange
have errors corrected, see and troubles from that
employers, insurance with your bank or
the FTC’s fact sheet Your extra card.”
companies, landlords and employer to automatically
Access to Free Credit Reports
others who need to know Not watching your transfer a certain amount
online at www.ftc.gov/bcp/
someone’s financial expenses. It’s very easy to
conline/pubs/credit/
reliability, based largely on overspend in some areas
freereports.
each person’s track record and take away from other If you pay only
paying bills and debts. Having too many credit priorities, including your
Credit bureaus, lenders cards. Two to four cards long-term savings. Our the minimum
and other companies also (including any from suggestion is to try any payment due on a
produce “credit scores” department stores, oil system — ranging from a $1,000 computer,
that attempt to summarize companies and other computer-based budget
and evaluate a person’s retailers) is the right program to hand-written let’s say it’s about
credit record using a point number for most adults. notes — that will help you $20 a month,
system. Why not more cards? keep track of your your total cost at
spending each month and
While one or two late The more credit cards you an Annual
enable you to set and stick
payments on your loans or carry, the more inclined
to limits you consider Percentage Rate of
other regular you may be to use them
appropriate. “A budget more than 18
commitments (such as rent for costly impulse buying.
doesn’t have to be
or phone bills) over a long In addition, each card you percent can be
complicated, intimidating
period may not seriously own — even the ones you
or painful — just close to $3,000,
damage your credit record, don’t use — represents
something that works for and it will take
making a habit of it will money that you could
you in getting a handle on
count against you. Over borrow up to the card’s you nearly 19
your spending,” said
time you could be charged spending limit. If you
Kincaid. years to pay it off.
a higher interest rate on apply for new credit you
your credit card or a loan will be seen as someone Want some specific ideas
that you really want and who, in theory, could get for ways to cut back on each month to a savings
need. You could be turned much deeper in debt and spending? A good place account or to purchase a
down for a job or an you may only qualify for a to start is the Web site U.S. Savings Bond or an
apartment. It could cost smaller or costlier loan. for the “66 Ways to investment, such as a
you extra when you apply Save” campaign mutual fund that buys
Also be aware that card stocks and bonds.
for auto insurance. Your (www.66ways.org).
companies aggressively
credit record will also be Even if you start with just
market their products on Not saving for your
damaged by a bankruptcy $25 or $50 a month you’ll
college campuses, at future. We know it can be
filing or a court order to be significantly closer to
concerts, ball games or tough to scrape together
pay money as a result of a your goal. “The important
other events often enough money to pay for a
lawsuit. thing is to start saving as
attended by young adults. place to live, a car and
So, pay your monthly bills Their offers may seem other expenses each early as you can — even
on time. Also, periodically tempting and even month. But experts say it’s saving for your retirement
review your credit reports harmless — perhaps a free also important for young continued on next page
when that seems light- more about how to save on Pay off your credit card dispute. Also remember
years away — so you can ATM fees, see the tips balance each month, if that the quickest way to fix
benefit from the effect of from FDIC Consumer possible, so you can avoid a problem usually is to
compound interest,” said News online at www.fdic. or minimize interest work directly with your
Donna Gambrell, a Deputy gov/consumers/consumer/ charges. Also send in your bank or other service
Director of the FDIC’s news/cnspr04/simple.html. payment on time to avoid provider.
Division of Supervision additional fees. If you don’t
Try not to “bounce” “Many young people don’t
and Consumer Protection. expect to pay your credit
checks — that is, writing take the time to check their
Compound interest refers card bill in full most
checks for more money receipts or make the
to when an investment months, consider using a
than you have in your necessary phone calls or
earns interest, and later card with a low interest
account, which can trigger write letters to correct a
that combined amount rate and a generous “grace
fees from your financial problem,” one banker told
earns more interest, and on period” (the number of
institution (about $15 to FDIC Consumer News.
and on until a much larger days before the card
$30 for each check) and “Resolving these issues can
sum of money is the result company starts charging
from merchants. The best be time consuming and
after many years. you interest on new
precaution is to keep your exhausting but doing so
purchases).
Banking institutions pay checkbook up to date and can add up to hundreds of
interest on savings closely monitor your Not taking responsibility dollars.”
accounts that they offer. balance, which is easier to for your finances. Do a
Final Thoughts
However, bank deposits do with online and little comparison shopping
aren’t the only way to make Even if you are fortunate
your money grow. enough to have parents or
“Investments, which
Whenever
other loved ones you can
include stocks, bonds and possible, use your turn to for help or advice
mutual funds, can be own financial as you start handling
attractive alternatives to money on your own, it’s
bank deposits because they
institution’s
really up to you to take
often provide a higher rate automated teller charge of your finances.
of return over long periods, machines or the Doing so can be
but remember that there is intimidating for anyone.
the potential for a
ATMs owned by
It’s easy to become
temporary or permanent institutions that overwhelmed or frustrated.
loss in value,” said James don’t charge fees And everyone makes
Williams, an FDIC mistakes. The important
Consumer Affairs
to non-customers.
thing is to take action.
Specialist. “Young people
especially should do their Start small if you need to.
telephone banking (see to find accounts that match Stretch to pay an extra $50
research and consider
Page 7). Remember to your needs at the right a month on your credit
getting professional advice
record your debit card cost. Be sure to review card bill or other debts.
before putting money into
transactions from ATMs your bills and bank Find two or three ways to
investments.”
and merchants so that you statements as soon as cut your spending. Put an
Paying too much in fees. will be sure to have enough possible after they arrive or extra $50 a month into a
Whenever possible, use money in your account monitor your accounts savings account. Even little
your own financial when those withdrawals are periodically online or by changes can add up to big
institution’s automated processed by you bank. telephone. You want to savings over time.
teller machines or the make sure there are no
Financial institutions also Also remember that being
ATMs owned by financial errors, unauthorized
offer “overdraft protection” financially independent
institutions that don’t charges or indications that
services that can help you doesn’t mean you’re
charge fees to non- a thief is using your
avoid the embarrassment entirely on your own.
customers. You can pay $1 identity to commit fraud.
and inconvenience of There are always
to $4 in fees if you get cash
having a check returned to Keep copies of any government agencies,
from an ATM that isn’t
a merchant. But be careful contracts or other including the FDIC and
owned by your financial
before signing up because documents that describe the other organizations
institution or isn’t part of
these programs come with your bank accounts, so you listed on Pages 10 and 11,
an ATM “network” that
their own costs. can refer to them in a that can help with your
your bank belongs to. For
questions or problems.
You’re in High If you (and your parents) provided by your school cover big medical bills).
School are comfortable with (see Page 5). Check into low-cost or
getting a credit card, you free insurance offered
Consider earning money Consider a paying job or
should know that there are through your employer.
outside of your home, even an unpaid internship
cards designed just for
whether it’s babysitting, teens. One is a credit card
at a workplace related to a You’re Starting a
lawn mowing, or working with a low credit limit that
career you’re considering. Family
in a movie theater or can keep you from getting If possible, set aside Continue saving and
another “real” business. A deeply in debt. Another is money into savings and investing money, including
job can provide a sense of a pre-paid card that comes investments. in retirement accounts.
accomplishment and with parental controls,
responsibility. It also can including spending limits. Try to take a class in If you don’t already own
be a good opportunity to personal finance. Read your home do some
learn about careers and to You’re in College money-related magazine research to see if this is a
“network” with and newspaper articles. good option for you. A
Realize that as you pay
professionals. home purchase can be
bills and debts on your You’re Starting a expensive but it also can
Learn the concept of own you are building a Career be an excellent investment
“paying yourself first” — “credit record” that could
Keep your credit card and and a source of tax breaks.
that is, automatically be important when you
other debts manageable. Check out educational
putting some money into apply for a loan or a job in
Maintain a good credit resources for first-time
savings or investments the future. Pay your bills
record. homebuyers (see Page7).
before you’re tempted to on time…and borrow only
spend it. Start small if you what you can repay. Save money for both Make sure you are
have to and gradually short-term and long-term properly insured,
If you decide to get your
build up. goals. Contribute as much including life, health,
own credit card, choose
as you can to retirement disability and home
Consider opening a bank carefully. Take your time,
savings, which often can owner’s or renter’s
account, either on your understand the risks as
be used for other insurance.
own or with a parent or well as the rewards and do
some comparison purposes, including a first-
other adult. It’s a good Talk with an attorney
shopping. Don’t apply for time home purchase. Take
way to learn about about the legal documents
a credit card just because advantage of matching
managing money. You also you should have to protect
you received an invitation contributions that your
may want to start using a your loved ones if you
in the mail or a sales employer will put into
debit card — you can use become seriously ill or die.
person was offering a free your retirement savings.
it to make purchases but These documents typically
you won’t pay interest or gift on campus. Do your best to stick to a include a will, a “durable
get into debt because the budget and control your power of attorney” (giving
Protect your Social
money is automatically spending, especially if one or more people the
Security number (SSN),
deducted from your bank you’re still paying back authority to handle
credit card numbers and
account. student loans or working personal matters if you
other personal information
at an entry-level job. become mentally or
Take a personal finance from thieves who use
physically incompetent)
class or join an investment someone else’s identity to Although insurance and a “living will”
club at school. commit fraud. Examples: sometimes seems like a (specifying the medical
Use your SSN as waste of money, you only
If you’re planning to go to care you want or don’t
identification only if need one accident or
college, learn about your want if you become
absolutely necessary and catastrophe to wipe you
options for saving or hopelessly ill and cannot
never provide it to a out financially. Think
borrowing money for what communicate your
stranger. Safeguard your about disability insurance
will be a major expense wishes.)
personal information when (to replace lost income if
(see the next page). using the Internet or you become seriously ill)
borrowing a computer and health insurance (to
Got a question or a notes of your conversation, College costs keep going up and up. Fortunately, there
complaint involving a including the date. are many ways to save for college education, including
financial institution but tax-advantaged savings plans and U.S. Savings Bonds.
3. Act as soon as There also are options for borrowing money, including
you’re not sure about the
possible. Some laws bank loans and a variety of federal government student
best or quickest ways to
require consumers to loan programs.
resolve the matter? Here’s
report a problem within a
a good game plan. For more information on saving and borrowing for
certain time period to be
1. Contact the fully protected. college costs, including what to consider if you’re
institution directly. having difficulty repaying a student loan, some federal
4. If you can’t fix a government Web sites can help. One is the U.S.
Experience has shown
problem on your own Department of Education’s Web site at
that’s the quickest way to
you may contact the www.studentaid.ed.gov, which even includes a calculator
resolve most problems.
institution’s government you can use to determine how much to save to meet
Also keep your cool. Be as
regulator for help or college expenses and how to maximize your savings
professional as possible.
guidance. To find out who efforts. Another site, www.students.gov, is a
2. Put your complaint in regulates a bank or other comprehensive Web site with information from the U.S.
writing, even if you also deposit-taking institution, government and other sources on topics such as
call the institution. Some you can write or call the financial aid.
consumer protection laws FDIC (see Page 11). Find
require that written contact information and The FDIC Protects Deposits to $100,000
complaints be filed. Be tips for solving problems The Federal Deposit Insurance Corporation is an
sure to send your letter to with non-bank financial independent agency of the U.S. government that
the address that the companies, such as protects depositors from losing money if their insured
institution recommends for insurance companies or bank or savings institution were to fail. Generally
complaints and keep a brokerage firms, at speaking, your funds in checking and savings accounts
copy of all correspondence www.consumeraction.gov, and “CDs” (special accounts you’d hold for anywhere
and supporting documents. which features the federal from one month to five years) are fully insured up to
With phone calls, get the government’s Consumer $100,000, and sometimes more, under current laws.
name of the person you Action Handbook.
spoke to and keep good “If you or your family has $100,000 or less on deposit at
a bank, as is the case with most people, your money is
completely safe,” said Kathleen Nagle, a supervisor with
Some Federal Laws Protecting Consumers the FDIC’s Division of Supervision and Consumer
The Electronic Fund Transfer Act limits a consumer’s Protection. To learn more, start at the FDIC’s Web site
liability if there’s been an unauthorized use of an ATM (www.fdic.gov) or call or write the FDIC (see Page 11).
card, debit card or other electronic banking device.
The Equal Credit Opportunity Act prohibits
discrimination against loan applicants based on race, sex, This FDIC Special Guide May Be Reprinted
age (provided that the applicant is eligible to enter into a
binding contract), marital status, religion, national origin The FDIC encourages schools, financial institutions,
or receipt of various types of government assistance. personal finance advisors, consumer groups, the media and
anyone else to help make the tips and information in this
The Fair Credit Billing Act establishes procedures for special edition of FDIC Consumer News widely available to
correcting errors on credit card bills. This law also allows young adults.
a card user to dispute a purchase made with a card.
The newsletter may be reprinted in whole or in part
The Truth in Lending Act requires creditors to give without advance permission. In addition, the FDIC offers
consumers information about the Annual Percentage this special edition online in a PDF version (at
Rates and other costs of a credit card or loan. This law www.fdic.gov/consumers/consumer/news) that looks just
also protects consumers if a credit card is lost or stolen. like the printed newsletter and can easily be reproduced in
The Truth in Savings Act requires disclosures about any quantity. The back page of the PDF version also was
interest rates and fees and prohibits misleading or intentionally left blank so that an organization could add its
inaccurate advertising for checking and savings accounts. name, logo, a special message and/or self-mailing
information.