Finanacial Stages of Life
Team 3 (Amel, Katherine, Derek, Ados)
Stage 1 ( Derek)
What they should know?
Is it convenient to where I live or go to school
What are the age limits for the type of account you want to open (checking vs. savings)
Is their a maximum amount of money I need in an account
Ask teller questions about what benefits you may have
Ask about fees and other questions you have may have
Debt and takes money that you have out of your account
Credit card is like an IOV that you must pay back.
2. Plan on how you will pay this back
make sure you pay your loan each month unless you honestly can't
Be sure to have a plan and goal to look at visually
3. Get a job
make small investments with the back
Only make small purchases with your credit card
Make sure you understand you must pay credit cards back
Stage 2 ( Katherine)
1. Debit cards: its advantages over using a credit card is that it prevents the user from running up a pile of dept, because he coan only use the allotted founds in the banking account linked to the card
- Pay the bills found on time
2. By taking a loan from a bank you will pay back the amount you've borrowed plus interest on the capital sum. If you don't stick to the repayment plan you will face charges.
remember the higher the interest the longer it will take you to repay the loan and the more it will cost you.
3. By Starting a saving Account and investing in interest barring account.
4. keep good credit score
- pay your bills on time every time
- Don't get close to your credit limit
- A long credit history will help your score
- only apply for credit that you need.
What they should Know?
With living expenses they should know that credit can help or harm you. They should only buy things that they can pay off before any deadlines. They should also have an Debit account connected to their checking account.
Loans aren't always bad things and you should be able to pay off your loans before they are overdue and you begin to have to pay interest.
The positive aspects of credit will help you be able to take out more loans and get approved for things that require a credit check. The negatives can make it hard to receive loans or recommendations from credit card companies.
You can protect your credit score by making your payments on time and make sure no one has access to your accounts in case of identity theft.
Amel( stage 1)
How can older adults invest for retirement?
For older adults to invest for retirement, they need to hold off 3-12 months living expenses in cash CDs or money market funds. They should withdraw no more than 3% of their retirement nest egg per year and adjust this amount annually for inflation
Another option they should consider is buying an Annuity. Although it has high annual expenses charged by many insurance companies and penalize you if you withdraw money soon, they guarantee that payment lasts a lifetime.
How can they pay off a lot of debt and still manage credit?
“In order to pay off debt and still manage Credit you need to contact a nonprofit credit counseling service. For example the NFCC can help you establish a debt management plan so you can pay back your debt. This option requires you to make a monthly deposit to the credit counseling agency which is then disbursed to your creditor, but the good thing is that it will lower your interest rate and waive certain fees.”
It is often difficult for many senior to file for bankruptcy because they are often have medical bills that often pile up again in the future. But it is still an option to consider if none of the options above worked.
How can they protect their credit score
Adults can protect their credit card from Identity Theft