The plan is to introduce basic personal finance concepts and terminology. The goal is to understand personal finance topics and the important role it plays in living richer lives. The takeaway is to know important concepts, identify financial warning signs and create a plan and take action. Personal finance is the use of financial management principles with respect to individual or family unit finances to manage money, budget, save and spend while taking into account various future risks and life events.

1. Introduction to Personal Finance
Taking Charge of Your Life:
Understanding Money and Credit
Jason Vitug
@jasonvitug

2. 10 Financial Warning Signs
• You associate savings with purchases and not with a savings
account.
• You don’t know how much total debt you owe.
• You have credit cards that are near or above the limit.
• You make late payments on bills, paid a checking or debit card
overdraft fee.
• You carry a revolving balance on your credit cards.
• You use credit card checks or cash advances to pay bills.
• You were turned down for a loan.
• You borrow money from your 401K to pay for monthly expenses.
• You believe the lottery is your path to retirement.
• You hide your financial situation from your partner or spouse.
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3. Living in the land of the
unknown.
------
Ignorance is bliss.
------
The less I know the easier to
deny responsibility for bad
financial decisions.

4. Introduction
• The plan is to introduce basic personal finance
concepts and terminology.
• The goal is to understand personal finance
topics and the important role it plays in living
richer lives.
• The takeaway is to know important concepts,
identify financial warning signs and create a
plan and take action.
www.phroogal.com
@phroogal

5. What is Personal Finance?
• Personal finance is the use of financial
management principles with respect to
individual or family unit finances to manage
money, budget, save and spend while taking
into account various future risks and life
events.
www.phroogal.com
@phroogal

6. Personal Finance 101
1. Income
2. Savings
3. Retirement
4. Investments
5. Credit
6. Debt Management
7. Real Estate
8. Insurance
9. Identity Theft
10. Budgeting
11. Frugality
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7. It’s not the size of the
paycheck that matters.

8. Income
• Income Sources
– Employer Paycheck
– Interest Income
– Investment Income
– Dividend Payments
– Freelance Income
– Side Hustle Income
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$30k $60k $90k
10 years $395,000 $790,800 $1,186,300
20 years $1,103,600 $2,207,100 $3,310,700
30 years $2,371,700 $4,743,500 $7,115,200
Source: BALANCE (factoring a 6% annual merit base raise).

9. Prioritize Savings

10. Savings
• Reasons to save money include:
– For an emergency
– For holidays and presents
– For experiences
– For the future
• How much should you save?
– Depends on your financial goals and lifestyle choices.
• Where should you save?
– Savings accounts, certificates of deposits, investment
and retirement accounts or peer-to-peer lending.
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11. Emergency Fund
---
Not a matter of if but a
matter of when.

12. Savings Principles
There are many options to save money so which
option is right for you?
1. Determine you’re saving for.
2. Decide on how much access to savings is needed
called liquidity.
3. Figure out how much money needs to be
deposit.
4. Choose an account with the best interest rates,
lowest fees and best liquidity.
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13. How Much to Save?
• Save at least six months of expenses in an
emergency account.
– Start by saving $1000 in 90 days. That’s roughly $11 a
day.
• What’s the magic retirement savings number? Is
it 3%, 5%, 10% or more?
– Depends on your lifestyle choices and spending
habits.
– The more you save today the sooner you can retire
and the more secure you’ll be when you’re unable to
work.
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14. Retirement
• Through planning and sound financial management retirement can
be achieved sooner.
• The amount needed to retire differs from one person to another.
• Start saving and investing earlier to achieve retirement sooner.
• Understand and use retirement savings vehicles:
– 401(k), 403(b) or other Defined Contribution Plans
– Individual Retirement Accounts (IRA), Roth or Traditional IRAs
– Investments and Brokerage Accounts
– Pensions
– Company Stock Options
– Social Security
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15. Investment Vehicles
Bonds - A debt security, similar to an IOU. When you buy a bond, you are lending money to the issuer. In
return for the loan, the issuer promises to pay you a specified rate of interest during the life of the bond
and to repay the principal when it "matures," or comes due.
• Lower risk than many investment options, although risk varies depending on issuer and other factors.
• Tend to provide greater stability than stocks and higher interest rates than savings accounts.
Stocks - An instrument that signifies an ownership position (called equity) in a corporation, and a claim
on its proportional share in the corporation's assets and profits. Most stocks also provide voting rights,
which give shareholders a proportional vote in certain corporate decisions, such as the election of
corporate directors.
• Stock market can go up and down in a single day so stocks are seen as a riskier investment than bonds or
mutual funds but also offer potential higher returns.
• Investing in stock market is no guarantee you’ll make money and there is always a risk of losing all the
money invested.
Mutual Funds - A mutual fund is a company that pools money from many investors and invests the
money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual
fund are known as its portfolio. Investors buy shares in mutual funds. Each share represents an
investor’s part ownership in the fund and the income it generates.
• Although you can choose the specific level of risk based on the type of fund you choose, returns are not
guaranteed.
• Mutual funds can be subject to management fees.
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16. Time can work for you
or work against you.

17. The Power of Time - Savings
Long term savings = more in savings through compounding of interest.
How long will it take for your money to double?
• The Rule of 72 is a simple way to figure out how long it will take for
your money to double with compound interest.
72 divided by the interest rate = the number of years needed to double your money
• Example: 10% interest rate and want to know how long it will take
to double your money would be:
72 divided by 10 = 7.2 years
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18. The Power of Time – Credit
Long term debt = more interest payments
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19. Available Credit Turns to Debt
1. Having credit is okay but using credit can
easily lead to debt.
2. Don’t incur debt in the first place.
3. Paying off debt will give you the highest
return.
4. Save for emergencies to prevent you from
using credit and taking on debt.
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20. Debt Management
1. Credit Counseling is a helpful resource but not the
same as debt management programs.
2. 3 debt reducing tools: Debt-consolidation, debt-management
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plans and debt-settlement.
3. Debt management agencies cannot negotiate lower
payments. Agency fees may be different.
4. Reach out to your creditors first and negotiate a
repayment plan or settlement.
5. Debt-management plans are reported to credit
bureaus but are not factored into credit scores.

21. Debt Management
6. Debt settlement plans are reported to credit
bureaus and do impact credit scores.
7. You can get out of debt yourself. Create your own
plan, stop spending and prioritize debt repayment.
8. Debt consolidation doesn’t always save you money.
9. Do not avoid debt collection calls or letters. Answer
Them!
10.Bankruptcy may be an option.
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22. Real Estate
1. Buying a Home
• Importance of Income, Credit and Down Payment.
2. Mortgages
• Fixed Rate and Adjustable Rate Mortgages (ARM)
• FHA and VA Home Loans
3. Find a Lender and Shop Around
• Inquire with banks and credit unions for best rates and lower fees.
4. Analyze your budget and know how much you can afford not what
mortgage lenders will approve.
5. Read all the documents received and ask questions.
6. Understand homeowner’s insurance.
7. Know the tax advantages of home ownership.
8. Make biweekly payments or additional principal payments.
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23. Insurance
1. Insurance is the equitable transfer of the risk of
a loss, from one entity to another in exchange
for payments also known as a premium.
2. Insurance is an important part of a healthy
financial plan to protect loved ones; preserve
wealth and financial stability.
3. Types of insurance includes:
• Medical, Auto, Life, Property, Disability or Accidental
4. Know insurance products, components and
terms.
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.

24. Identity Theft
• Identity Theft is the fraudulent acquisition and use of a person's private identifying information,
usually for financial gain.
– Your identity can be stolen through phishing (online) or vishing (telephone) as well as dumpster diving.
– Incredible impact on your financial well being and can cause significant amount of stress.
• Protect Your Identity
– Know who you share information with.
– Store and dispose of your personal information securely, especially your Social Security number.
– Ask questions before deciding to share your personal information.
– Maintain appropriate security on your computers and other electronic devices.
• Steps to resolve ID Theft
– Step 1: Notify account issuers.
– Step 2: Place a credit freeze with credit bureaus.
– Step 3: File a theft report with the police.
Pull and review your credit report: www.AnnualCreditReport.com
Register with Do Not Call Registry: www.DoNotCall.gov
Opt-out of prescreened marketing offers: www.OptoutPrescreen.com
Resources: Identity Theft Resource Guide
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25. Student Loans
- Also known as education loans comes in 3 types: student loans (Stafford
and Perkins loans), parent loans (PLUS loans) and private student loans.
- Student Loan Prepayment
- Make payments on student loans while in college.
- Make prepayments by applying directly to principal amount not future
payment date.
- Repayment Terms: standard, extended, graduated and income base (IBR).
- Student Loan Consolidation
- Consolidate student loans (w/ cuStudentLoans)
- Consolidate during grace period or repayment.
- Consolidation could lower monthly payment but increase total interest paid.
- Student Loan Deferment and Forbearance Options
- Student Loan Forgiveness Programs
- Public Service Loan Forgiveness Programs
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26. Intro to Credit Reports & Scores
- Creditworthiness
- Better credit the more likelihood of being
approved for loans or credit cards with better
interest rates and favorable terms.
- May qualify for lower auto insurance rates.
- Able to open utility accounts or wireless contract
without security deposit requirement.
- Get a job offer that factors information from your
credit report.
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27. Credit Report and Credit Scores
Impacts not only future ability to obtain credit but impacts
insurance premiums, down payment requirements with
cellular and utility companies as well as home rental
agreements. Information contained in your credit report
may also impact your ability to get a job.
The good news is…
• You have the power to create an excellent score
• You have the power to fix your credit report
• You don’t always have to worry about credit scores
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28. What Impacts Your Credit Score
Access Your Free Credit Report
• www.AnnualCreditReport.com - Access to each of the 3 credit bureau
reports once every 12 months.
• Free credit scores using Quizzle or Credit Karma (no credit cards required).
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29. Auto Financing
Sample $25,000, 60-Month New Car Loan Purchase
Credit Tier APR Monthly Pmt Total Interest Paid
A+ 5.75% $475 $4,327
A 6.25% $484 $4,669
B 8.00% $513 $5,888
C 11.25% $547 $8,236
D 14.25% $598 $10,498
E 17.00% $616 $12,651
• A+ to E-paper difference in payment: $139 a month.
• A+ to E-paper difference in total interest paid: $8,324!
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30. Budgets and Spending Plans
• Budgets are defined as a financial or spending plan.
1. Help achieve quantifiable financial goals.
2. Tool to measure performance and cope with potential
adverse situations.
• Reasons for budgeting.
1. Creates a framework to reach milestones and achieve
quantifiable goals.
2. Help you buy things you need and want through
prioritization.
3. Allocates resources and reduce waste.
4. Supports reaching your dream lifestyle.
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31. Create a Budget
1. Calculate your income and expenses.
2. Make a list of all income sources and calculate total monthly income.
3. Keep a record of one month’s fixed expenses and discretionary spending.
4. Organize based on categories and total expenses such as housing,
transportation, food, utilities, credit card payments, etc.
5. Using paper or a spreadsheet, calculate your income compared to your
expenses.
6. Analyze the results and calculate how much you can save and how much
more you can pay towards debt.
7. Determine where you can decrease fixed expenses and cut spending to
free up money to prioritize debt repayment and grow savings.
8. Adjust your budget accordingly as financial goals are met.
Download Budgeting Worksheet.
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32. Build a Habit of Savings
• At work: Opt-in for direct deposit
• At work: Contribute to 401K (start with 10% and increase yearly)
• At work: Take advantage of employee stock programs, wellness programs, cellular
plan discounts, auto programs, and discount offers.
• At home: Find cheaper banking alternatives (i.e. credit unions)
• At home: Use electronic transfer options
• At home: Pay yourself first. Pay into your savings account.
• At home: Establish different savings accounts (emergency fund with 6 months),
housing, taxes, vacations, holidays, etc.
• At home: Open a Traditional or Roth IRA
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33. Live in know-land.

34. Take Control
Manage Your Money Effectively
• Opt-in for direct deposit
• Get your statements online and use online bill pay services
• Use your debit card and monitor ATM usage
• Use online financial management and budgeting tools
• Read the fine print between you and all your financial relationships
• Ask questions until you understand
• Don’t be afraid to change or switch financial services
Manage Your Credit Health
• Pull your free credit report online (www.AnnualCreditReport.com)
• Get access to your free credit score (CreditKarma, Quizzle)
• Know what’s in credit reports and what impacts credit scores
• Know when to worry about credit scores
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35. Action Plan
1. Ask yourself what can you do today/in 3 months/this
year?
2. Increase your financial knowledge any which way you
can.
3. Acknowledge your true financial standing (income and
debt) and set goals.
4. Create the habit of savings. A budget is a springboard to
financial independence.
5. Take control of your financial future. Be proactive and
communicate with lenders, creditors, employers and
peers.
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36. Learn more about budgeting at
www.phroogal.com