Financial Literacy DANVILLE REDEVELOPMENT & HOUSING AUTHORITY

1. 502 Franklin Street
Danville, Virginia 24541
434-799-2343
FINANCIAL
LITERACYBy:
Kimberly
Walker

2. STARS
PLANETS
RED
GREEN
ON THE
GROUND
IN THE AIR
SNOW
WHITE
PLAID
STRIPES
CLOTH
METAL
BLUE
COLD
CHOICES

3. Four Steps of Asset Building
1 . C H O O S E T H E R I G H T B A N K O R C R E D I T
U N I O N A C C O U N T
2 . B U I L D S A V I N G S F O R E M E R G E N C I E S A N D
L A R G E P U R C H A S E S
3 . I N V E S T F O R R E T I R E M E N T
4 . T A K E A D V A N T A G E O F T A X C R E D I T S
B A N K S A N D C R E D I T U N I O N A C C O U N T S

4. Organization

5. Why Is Money
Important
 Money Feeds Our Future.
 If you save money to buy a
reliable car, you can apply for
jobs that require you to
commute.
 Money Keeps The Peace
 When you have money to pay
for things, it just feels good.
 Money Helps You Share the
Wealth
 It feels good to give
money away as a gift for
someone who is in need.

6. Why Do We
Need A Budget?
A budget
helps you
build
financial
safety and
prevent
financial
disaster

7. Pay Day Circle of Life
I gotta break this cycle
Pay
Day
I’m a
millionaire!
Treat yo
self
OMG I’m
so rich…
let’s eat!
Ok – stop it.
Be
responsible
Nah, life is
for living…
buy those
shoes!
Oh no…
what have I
done?!
HELP
HELP
HELP
HELP

8. Pay
Yourself
First
Save at least 10%
of your income.
But if you cannot
save 10% that’s
fine-start
somewhere.

9. Savings Accounts
There are Two Types
of Savings Accounts
 “I Want” Account (long and
short term goals)
 Emergency Account
( Keep at least 3 – 6 months
worth of living expenses in it)

10. Start
Small
Try putting $1.00 a
day plus pocket
change, into a large
envelope or jar. At
the end of the
month you will have
around $50.00
that’s $600.00 a
year

11. What is
Compound
Interest?
Compound interest (or
compounding interest)
is interest calculated on
the initial principal,
which also includes all
of the accumulated
interest of previous
periods of a deposit or
loan.

12. Credit

13. What is Credit?
 Its is the ability to borrow money or obtain
goods by paying little or no money at the
time of purchase.

14. What is a Credit Bureau?
 Credit Bureaus are
companies that gather
information and sell the
information in the form of a
credit report to credit
grantors (Businesses) Credit
bureaus keep records of
consumer’s debt and how
regularly these debts are
paid.

15. Credit Bureau Agencies
 The Three Main Credit Bureau Agencies are.
• Equifax
• Experian
• Transunion

16. FICO
SCORE
It is a computer
generated number,
based on a statistical
model, that
summarizes an
individual’s credit
record and predicts
the likelihood that a
borrower will repay
future obligations.
Fico Scores range
from
300-850 the higher
the score the better.

17. You can obtain your Files via
Mail, Internet, and Phone
Equifax -P.O. Box 105314
Atlanta, GA 30348
TransUnion- P.O. Box 2000
Chester, PA 19022
Experian- P.O. Box 9701 Allen,
TX 75013
www.annualcreditreport.com
1-877-322-8228
How To Obtain
Your File

18. DO IT
YOURSELF!
Dispute any mistakes or
outdated information
you find. Contact both
the credit reporting
company and
information provider
(who are responsible for
changing the inaccurate
or incomplete
information) . Tell the
credit company, in
writing what
information you think
is inaccurate. Include
copies of any
documents that might
be in able to support
your claim
Clean up all adverse information

19. I N A D D I T I O N T O E M E R G E N C Y S A V I N G S A N D
L A R G E P U R C H A S E S A V I N G S , I T I S
E N C O U R A G E D T O W I S E L Y I N V E S T F O R
R E T I R E M E N T .
Investing For Retirement

20. QUESTIONS