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    Archived pages: 194 . Archive date: 2013-12.

  • Title: BalanceTrack: Personal Finance Education Center
    Descriptive info: .. Welcome to BalanceTrack, a personal finance education program brought to you by your financial institution.. These education modules will guide you through the core aspects of personal financial management.. By completing these courses, you are moving toward financial success while demonstrating your commitment to sound money management.. Click on a topic below to get started!..  ...   and print these forms, Adobe Acrobat Reader will need to be installed on your computer.. While most browsers already have this program built in, you can also.. download it for free from Adobe's website.. (Mac OS X users can use the Preview program installed on your computer to view and print PDFs.. ).. Copyright 2010 BALANCE..

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  • Title: BalanceTrack: Money Management
    Descriptive info: Introduction.. Money management is the process of knowing where you are spending your money today and having a well-thought-out plan in place for where you want it to go in the future.. This program will cover the core concepts of money management and teach you how to:.. Set Goals.. Get Organized.. Track Spending.. Build a Budget.. Save Money.. Chapter 1: Set Goals.. Taking the time to set goals today allows you to achieve what you want in the future.. Set specific goals.. Financial goals should be specific.. For example, wanting to save $1,000,000 for retirement by age 60 is a goal, but wanting to be rich is just a wish.. Before you start to save, determine exactly what you want, when you want it, and how much it will cost.. There are three basic goal types: short-term (achievable in under a year), mid-term (achievable in one to five years), and long-term (achievable in five-plus years).. If you have multiple goals, you may choose to work toward them all at once or concentrate on one and then move to the next.. You can use the Financial Goals Chart to list your goals:.. For short and mid-term goals, the calculation for how much you need to set aside each month is simple: the cost minus  ...   interest, which will help you achieve your final savings goal.. (You can do this for short and mid-term goals too, but the interest earned is usually minimal.. ) However, whatever you are saving for will also likely cost more in the future because of inflation (the gradual rise in the cost of goods and services over time).. You can use the financial calculator below to figure out how much you should set aside each month for long-term goals.. (Use your best guess as to how much you will need to save and what your return will be.. Your goal is to save $10,000 in ten years for your child s higher education.. If the annual rate of return (interest) averages five percent, you will need to set aside $64.. 40 each month.. Be flexible.. Creating a budget (discussed in Chapter 4) will help you determine how much you can afford to save each month for your goals.. If you simply can't manage to put away the amount you thought you could, don t give up.. Consider if you can extend the goal achievement date or set a similar goal that is cheaper.. Perhaps a $5,000 Caribbean cruise is not doable, but you can save $2,000 for a vacation in Florida.. Copyright 2011 BALANCE..

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  • Title: BALANCE: World of Credit Reports
    Descriptive info: Credit reports and credit scores influence our lives in many ways.. Your history of credit management can affect the cost of the credit you receive, your ability to rent or buy a home, the insurance rates you are offered, and even your future employment opportunities.. By understanding the world of credit reports, you can create a positive credit standing that will allow you to achieve your goals quickly and inexpensively.. This program will cover:.. Credit Reporting Agencies.. What is in Your Credit Report.. Understanding Credit Scores.. How to Improve Your Credit Standing.. Consumer Rights and Identity Theft.. Chapter 1: Credit Reporting Agencies.. There are three major credit reporting agencies, commonly called credit bureaus, in the United States: Equifax, Experian, and TransUnion.. It is the credit bureaus role to collect credit and financial information about you and compile it into a report.. Most of the data is gathered from creditors, such as credit card companies and mortgage lenders, and collection agencies.. Companies typically report account activity to the bureaus (usually to all three but some to just one or two) on a monthly basis.. The credit bureaus also acquire information by searching court records for judgments, bankruptcy filings, and other credit-related legal actions.. The credit bureaus sell the compiled reports to interested parties, such as creditors, insurance companies, employers, and landlords.. Does that mean that a nosy neighbor or relative can pull your credit report if he or she wants to?  ...   copy of each of your credit reports once a year through Annual Credit Report Request Service.. (Contact information is in Chapter 5).. If you request the reports online, you should be able to view them immediately.. You can also order your reports directly from the credit bureaus for a fee.. Other Consumer Reports.. While credit reports are the most widely used consumer reports, there are other reports that monitor your financial habits, including:.. ChexSystems.. ChexSystems is a report frequently used by financial institutions when determining whether to allow someone to open a checking or savings account.. ChexSystems reports on negative banking activities, such as overdrawn accounts and checks returned for insufficient funds.. There is no standard for adding information to the report.. Some institutions will report a check that bounced due to a miscalculation, where others may only report cases of fraud.. Information can remain on your report for five years.. Like with credit reports, consumers can get a free copy of their ChexSystems report and dispute incorrect information.. National Tenant Network.. Used mostly on the West Coast, The National Tenant Network (NTN) compiles information on lease violations and evictions and provides it to landlords who subscribe to their service.. Potential landlords may check both your credit report and your NTN report when deciding whether or not to rent to you.. You have the right to request and inspect your report and dispute inaccurate or incomplete information.. Copyright 2010 BALANCE..

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  • Title: BALANCE: Credit Matters
    Descriptive info: In today s world, credit does indeed matter.. In fact, obtaining and using different types of credit instruments is part of almost every American s financial life.. However, because it is so easy to make expensive mistakes that can follow you for a long time, it is a good idea to learn how to borrow wisely from the beginning.. This program will cover the core concepts of credit usage, including:.. What is Credit?.. Getting Started.. Using Credit to Your Advantage.. Delete Your Debt.. Consumer Rights and Responsibilities.. Chapter 1: What is Credit?.. In the broadest sense, credit means having the use of something before you pay for it.. It adds flexibility to planning and makes it possible to pay for expensive items over a period of time.. Credit comes in many different forms, and it is important to understand how each works so you can obtain the right type for your needs.. Secured Credit.. This is commonly used to purchase a large item, such as a home, car, or appliance.. An asset (most often the item purchased) called collateral secures the loan.. If you do not keep the monthly payment arrangement, the creditor has the right to reclaim the collateral.. There are two types of secured credit:.. Secured/closed-end.. With a secured/closed-end credit instrument, a set amount is borrowed up front, and you cannot borrow more from it later.. The balance is usually repaid in equal installments over a specific period of time.. Mortgages and car loans are an example of this type of credit.. Secured/open-end.. With a secured/open-end credit instrument, you are given a credit limit, and you can repeatedly borrow up to that amount.. With  ...   your account is in good standing.. The minimum monthly payment is based on the current balance.. Credit cards are the most common form.. Credit Cards.. There are several types of credit cards on the market:.. General-purpose credit cards can be used virtually anywhere.. If you have both an excellent credit history and a high income, you may be offered a premium card (sometimes called Gold or Platinum), which comes with a high credit limit and enhanced customer service.. Some credit cards offer points, rebates, or cash-back rewards where the more you use them, the more benefits you receive.. Retail cards may only be used at a particular retail establishment, such as a department store or gas station.. Small business cards offer special perks to business owners and their employees.. Student cards generally offer lower credit limits and special benefits for students.. Secured credit cards require you to put down a deposit as collateral and are typically used by people who are trying to establish or reestablish good credit.. Charge Cards.. A charge card is similar to a credit card, but you have to pay the entire balance in full each month (although some card issuers may allow you to pay for specific purchases over time).. The credit limit is often very high or even unlimited.. If you cannot make a full payment, a high interest rate and late fee may be assessed.. Collection action can.. be swift and severe.. Debit Cards.. It is important to not confuse debit cards and credit cards.. Because the money is deducted from your checking account right away when you use a debit card, it is not a type of credit..

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  • Title: BalanceTrack: Checking Account Management
    Descriptive info: Whether you have a history of overdraft or non-sufficient funds charges or you just want to know how to best manage your first checking account, this module will give you the tools and information needed to become and remain a successful checking account holder.. You will learn key components of wise checking account management, including:.. Checking Account Fundamentals.. Deposits.. Withdrawals.. Keeping Your Account in Good Standing.. Protecting Your Account.. Chapter 1: Checking Account Fundamentals.. A checking account is a service provided by financial institutions that allows you to deposit money with them and withdraw it at a later date.. Checking accounts typically come with a low or no interest rate, but you can access your money almost anywhere, and there is usually no limit to how many withdrawals you can make in a month.. In contrast, savings accounts and certificates of deposit (CDs) come with a higher interest rate but restrict or penalize withdrawals.. Most people use a checking account for day to day money management, such as paying for groceries and clothing, and a savings account and/or certificate of deposit for saving.. You may be wondering if having a checking account is truly safe.. Some people avoid opening one because they fear that they will lose all of their money if their financial institution goes out of business.. Instead, they use check-cashing stores and carry around large amounts of cash.. This is not a good idea.. Check-cashing places charge exorbitant fees, much higher than the fees charged by traditional financial institutions (if they charge any at all).. Furthermore, while you can cancel a lost or stolen debit card or check, if you lose cash or are robbed, the money is gone forever.. The safest place to keep your money is in a financial institution banks and credit unions are insured, so within limits, even if your financial institution were to go out of business, you would not lose your money.. Types of accounts.. There are several different types of checking accounts:.. Individual:.. As the name implies, an individual account only has one owner.. Some financial institutions offer one basic checking account, while others offer a few.. If you have a choice, look at the features of each account, such  ...   ) An employee will fill out an application for you by collecting your personal information, including your name, address, phone number, and Social Security number.. If your application is approved, you will receive your new account number.. You may also be given a limited number of checks, but the full checkbook and debit card will likely be mailed to you.. Along with receiving everything you need to use your account, you should also be given a fee schedule.. Be sure to read this carefully to understand what fees you are being and could be charged.. Getting a checking account is an easy process for most people.. However, if you have a ChexSystems report, it could be a challenge.. ChexSystems collects information on negative checking and savings account activity and provides the information to financial institutions.. Negative activity includes writing fraudulent checks or committing other acts of fraud, bouncing checks, and overdrawing your account.. There is no standard for reporting to ChexSystems some financial institutions will report a check that bounced due to a miscalculation, where others may only report cases of fraud.. If you have a ChexSystems report, you can get a free copy of it once a year by visiting.. www.. consumerdebit.. com.. or calling (800) 428-9623.. Some financial institutions also check your credit report when you apply for a checking account.. Unlike with ChexSystems, your credit report monitors both positive and negative credit activity.. Having a history of late payments or a bankruptcy, judgment, repossession, or foreclosure on your credit report can make it difficult to get a checking account.. You can get a free copy of your credit report from all three credit bureaus yearly through the Annual Credit Report Request Service.. annualcreditreport.. or (877) 322-8228.. Are you doomed to keeping your money in a shoebox if you have a ChexSystems report or negative information in your credit report? Not necessarily.. If you are initially denied, talk to your financial institution about what you can do.. If you have an outstanding debt, you may be able to get a checking account if you pay it.. Your financial institution may also be willing to let you open an account if you complete a course on checking account management..

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  • Title: BalanceTrack: The Road to Homeownership
    Descriptive info: Buying a home is at once an exciting and challenging venture.. With commitment, planning, and learning, you can become a successful homeowner.. This program covers everything you need to know to start the homebuying process off right, including:.. Preparing for Homeownership.. Understanding Mortgages.. Getting a Loan.. Searching for a Home and Making an Offer.. Closing and Tax Benefits.. Chapter 1: Preparing for Homeownership.. Saving.. The first step to homeownership should ideally begin well before you purchase a home saving.. There are several things you may want to save for, including:.. The down payment:.. In the past, homebuyers needed to put down at least 20% of the purchase price to get a mortgage.. Today, you may be able to buy a home with as little as 0-5% percent down (although 100% financing can be extremely hard to find).. If your down payment is less than 20%, you may be required to purchase private mortgage insurance or get a second mortgage at a higher interest rate.. Closing costs:.. Closing costs are the fees required to obtain a mortgage and transfer ownership of the home, such as attorney costs, an appraisal, title insurance, a recording fee, points, and a loan origination fee.. You may have to pay the fees yourself, although sometimes the seller will pay them or you can have them financed (included in the mortgage).. Post purchase reserve funds:.. You may need to show the lender that you will have savings left over after you purchase the home.. This provides assurance that the mortgage can be paid even if you are experiencing cash flow problems.. At least three months worth of mortgage payments is a good amount to have in reserve.. Extras:.. If you plan to buy a fixer-upper, appliances, or new furniture, include these costs in your savings plan.. Credit scores.. In order to get a mortgage, especially one with a low interest rate, you usually need to  ...   and collection accounts have a serious negative impact.. Amounts owed (30%):.. Carrying high balances on revolving debt (like credit cards) and personal loans, especially if the balances are close to the credit limits, will lower your score.. Length of credit history (15%):.. The longer you have had your accounts, the better.. New credit (10%):.. Having recent inquiries and opening new accounts can lower your score.. However, all mortgage or auto loan inquiries that occur within a short period of time are considered just one inquiry for scoring purposes, and you accessing your report does not affect your score.. Types of credit used (10%):.. Having a variety of accounts, such as credit cards, retail accounts, and loans, boosts your score.. Reviewing your credit report regularly is a good idea, but it is a particularly important to do so before seeking a mortgage.. Even if you always make your payments on time and have a low level of debt, your credit report could contain score-lowering errors.. Check your report at least 60 days before you plan to apply for financing, as it can take some time to resolve issues.. You can obtain your credit report from Experian, Equifax, and TransUnion free once a year through the Annual Credit Report Request Service.. (Contact information is in Chapter 5.. ) Scores can be purchased for a fee.. If you see any errors on your report, send a dispute letter to the relevant credit bureau(s) indicating which information is incorrect.. They must investigate your claim and remove unverifiable information.. If your score is below the 680 mark, don t despair.. There are many things you can do to boost it:.. From this point forward, always make your payments on time.. Repay collection accounts.. Pay down your debt.. Keep balances under 40% of the credit limit.. If you already have 2-4 accounts open, avoid opening further accounts.. Keep older accounts active.. Avoid excessive credit applications..

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  • Title: BalanceTrack: Using Home Equity
    Descriptive info: There are numerous benefits to owning your own home.. Not only does it provide a place to live, where you can decorate as you want, but it also provides a source of wealth.. Over time, most homes increase in value, and many homeowners use their gains for a whole host of purposes.. Using your home s equity can be a money-smart decision, but it is also a serious one that can have negative consequences if not done carefully.. This course can help you make an informed choice.. It will cover:.. What is home equity?.. Second mortgages.. Refinancing.. Reverse mortgages.. Factors to consider.. Chapter 1: What is Home Equity?.. Home equity is the part of your home s value that you own outright.. If you have a mortgage, you do not own the whole home your mortgage lender has an interest in it as well.. For example, if you sold your home for $600,000 and had a $400,000 mortgage, the lender would get $400,000, and you would get $200,000 your equity in the home.. You can calculate your home s equity using a simple equation:.. Current.. market value.. of home.. Outstanding.. mortgage.. balance.. =.. Your.. home.. equity.. $600,000.. $400,000..  ...   figure of what your home is worth.. Another option is to ask a local real estate agent to give you an estimate of the price your home could sell for.. For a more precise estimate, you may hire a certified appraiser, which typically costs a few hundred dollars.. This appraisal takes many variables into consideration, including your home s:.. Square footage.. Construction quality, design, and floor plan.. Neighborhood.. Access to transportation, shopping, and schools.. Lot size, topography, view, and landscaping.. You can build equity through making a down payment when you purchase your home, paying down your mortgage balance by making the monthly payments, and experiencing appreciation.. Appreciation occurs when market demand rises.. For example, if you bought your home for $200,000 a few years ago, it may sell today for $250,000 because prices in your neighborhood have increased.. Your property may also appreciate if you made repairs or home improvements.. While home values tend to appreciate over time, they do not have to.. When the value depreciates, your equity decreases.. If it depreciates enough, you could have negative equity, where the value of your house is less the amount you owe on your mortgage.. Copyright 2012 BALANCE..

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  • Title: BALANCE: Drive Away Happy
    Descriptive info: W.. hile shopping for a vehicle is exciting, it can also be complicated and time-consuming.. There are many questions that have to be answered.. What features do you need and want? Should you buy new or used? Or should you lease? How much can you afford to spend? Should you get a loan from the dealership or your financial institution?.. A car is an expensive purchase, one that cannot be returned simply because you feel you made a mistake.. This program will cover the basic information you need to know to make the best decisions and drive away happy, including.. :.. Car Shopping Considerations.. Should You Buy New or Used or Lease?.. Your Credit Score and Financing.. Getting the Best Price.. Your Legal Rights.. Chapter 1: Car Shopping Considerations.. What Car Should You Get?.. When it comes to vehicles, there are hundreds of makes and models to choose from.. Should you just show up to a dealership and trust that the salesperson will guide you to the right car? Probably not.. While salespeople can be knowledgeable, they may be more concerned about their commission than what is in your best interest.. Plus, dealerships typically do not carry cars from every manufacturer.. You do not have to know exactly what car you are going to buy before you start shopping it is a good idea to do a test drive before making a final decision but try to narrow your list down to a few options.. Consider.. Your needs:.. Think about your transportation requirements.. Does your vehicle need to be large enough for a family of five or small enough to fit in tight city parking spaces? Tough enough to haul firewood or chic enough to drive clients around?.. Your wants:.. Most of us want at least a few extras that we don t really need.. You don t have to buy the cheapest, most basic car, but just remember that you may not be able to  ...   car you plan to sell once you get your new car.. ) Remember, car expenses include not just the loan payments but also insurance, gas, maintenance, registration, and perhaps parking and tolls.. If you are purchasing a brand new car, your insurance and registration will likely increase.. However, your maintenance will probably decrease.. Whether your gas costs will change is dependent on the fuel efficiency of both cars.. Factor these expected changes into your budget you may have to estimate.. If you find there is little money available for auto expenses, try to rework your budget by reducing or eliminating other expenses.. Your budget alone cannot tell you how much you can afford to borrow you also need to know the financing terms of the loan.. Let s say you create a budget and see that there is $350 a month available for loan payments.. If you get a 60-month loan at 5% interest, you could afford to borrow $18,547.. However, if the interest rate is 8.. 5%, it drops to $17,059.. That is why it is a good idea to look for a loan before you visit the car dealership (discussed more later).. Keep in mind that the lender may not approve you for as much as what your budget shows you can afford.. On the other hand, they could approve you for a higher amount, but it is not a good idea to spend more than what you feel you can comfortably afford.. While it is possible to buy a car with no money down, most lenders prefer that you make a down payment.. It benefits you as well.. The more you save, the less you have to borrow and the lower your monthly payments.. To make saving easier, have some of your paycheck directly deposited into your savings account, or arrange with your financial institution to have a set sum automatically deducted from your checking account each month and deposited into your savings account..

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  • Title: BALANCE: Identity Theft
    Descriptive info: Identity theft occurs when someone uses your name, Social Security number, credit card number, or other identifying data to commit fraud or other crimes.. In this electronic age, it has become an all-too-common danger.. Fortunately, there are many preventative measures you can take to substantially reduce the chance of identity theft occurring and steps you can take to minimize damage if you do become a victim.. This module covers the basics of identity theft, including:.. Common Practices of Identity Thieves.. Preventing Identity Theft.. How To Recover.. Federal Laws.. Helpful Resources.. Chapter 1: Common Practices of Identity Thieves.. How Identity Thieves Acquire Information.. Thieves use a variety of illegal techniques to procure identity information.. They may:.. Steal statements or other mail containing personal information from your mailbox.. Divert your mail to another location by filling out a change of address form.. Search through the trash or recycling bin for documents containing financial or personal information.. Steal your wallet or electronic device.. Misrepresent themselves to a company that does business with you or otherwise has information about you (e.. g.. access your credit report by posing as a landlord).. Hack into your computer or the computer of a company that does business with you.. Access the information you enter online or send by e-mail.. Pose as a legitimate company or government agency and request personal information via phone ( vishing ), email (  ...   or her to use your account when making telephone or online purchases.. Opening a new credit card account.. Once a thief has your personal information, he or she can open an account in your name, but have the card and bills routed to him or her.. The thief makes purchases, but the bill never arrives at your home.. (And of course, the thief doesn t pay it him- or herself).. You may not find about the crime until a collector tracks you down, you apply for credit and are denied, or you pull a copy of your credit report and you see the activity.. Taking out a loan to buy a car or other expensive items.. As with credit cards, you often won't know of the activity until you experience some type of negative credit or collection action.. Using an existing checking account.. The thief may write fraudulent checks or use your debit card.. Having the PIN makes it easy to take cash out of the ATM, but even without it, he or she can still make purchases in a store by choosing the credit option and online and over the phone.. Obtaining government benefits or using your health insurance.. The thief may apply for such things as Social Security benefits or foods stamps with your identity or pretend to be you and provide your insurance information to pay for medical care..

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  • Title: BalanceTrack: 10 Steps to Financial Success
    Descriptive info: Being financially successful means you are in control of your money instead of it controlling you.. Your income doesn t necessarily determine how financially successful you are your choices and priorities do.. If you are struggling, financial success may seem like a distant dream, but by following these ten steps, you can make that dream a reality:.. Step 1: Establish Goals.. Step 2: Take Stock of Your Current Financial Situation.. Step 3: Create a Spending and Savings Plan.. Step 4: Establish an Emergency Savings Fund.. Step 5: Invest Diversely.. Step 6: Make Sure You re Covered.. Step 7: Establish a Good Credit History.. Step 8: Delete Your Debt.. Step 9: Buy a Home.. Step 10: Seek Advice and Do Research.. Identifying clear, achievable goals is a crucial part of anyone s financial plan.. A financial goal is the exact amount of money needed for a specific purchase or service at a definite date.. Making the goal precise helps you determine how much you need to set aside each month and track your progress.. There are three types of goals: short-range, mid-range, and long-range.. Short-range goals are to be met in one year or less, mid-range in one to five years, and long-range in five years or more.. Vacations, gifts, and electronics are typical short-range goals.. A down payment for a house is a common mid-range goal.. Long-range goals may include saving for retirement and a child s higher education.. The Financial Goals Chart can help you determine the timeline for your goals and the amount of money you ll need to regularly set aside in order to reach them.. You may find the numbers daunting or even not realistic based on your current financial situation.. (Completing Steps 2 and 3 can help you determine how realistic your goals are.. ) You may be able to increase your income and/or decrease your expenses or have to consider adjusting your goals.. Determining your priorities is essential.. If you share your finances with someone else, discuss and set priorities together.. It is not uncommon for couples to work at cross-purposes financially without even knowing it..  ...   your net worth at least once a year.. Your net worth should increase over time.. If it is not, either you are not saving enough or taking on too much debt.. Adjusting your spending and savings plan can help you change this (discussed in Step 3).. Cash Flow.. Do you know exactly where your money is going each month? If not, you are not alone.. Many of us are well aware of the symptoms of financial distress we are experiencing, such as having credit card debt, overdrawing a checking account, not being able to save, or paying bills late, but are not sure of the cause.. Assessing your cash flow can help you figure that out.. Incomes are cash in-flows.. The most common source of income is wages from a job, but it can also include things like investment earnings, child support, alimony, rental payments (if you are a landlord), government benefits, gifts, and profits from self-employment or a hobby.. While gifts, child support, and some government benefits are generally not taxable, most income is.. Your gross income is your income before taxes are taken out.. Your net income is your income after taxes are taken out.. Expenses are cash out-flows.. They can include essentials, such as mortgage or rent, food, and medical costs, as well as things you choose to spend money on, such as piano lessons and vacation.. Savings can be considered an expense too the money may not be leaving your hands, but you are setting it aside to not be used for other purposes.. Use the Cash Flow Worksheet to list your income and expenses.. To get as accurate figures as possible, you may want to track your daily spending.. (If your income is irregular, it is a good idea to track that too.. ) You can use the Tracking Worksheet.. To determine a monthly amount for periodic income and expenses (such as vacation), figure out the per year amount and divide it by 12.. If your income exceeds your expenses, you have a positive cash flow.. If your expenses exceed your income, you have a negative cash flow..

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  • Title: BalanceTrack: The Psychology of Spending
    Descriptive info: Do you ever wonder why you left the mall with $500 worth of clothes when you were not planning to get anything or bought one pair of shoes over another? It is not just personal preference.. Psychologists have found that there are several forces that govern our consumer behavior and cause us to make decisions that are not necessarily rational or in our best interest.. However, understanding why we buy what we buy can help us make better decisions in the future.. Why is it important to make smart shopping decisions? Many people put purchases on their store or credit cards.. If you charge too much and are unable to pay off your balance in full, you could wind up with debt that takes years to pay off and costs thousands of dollars in interest charges.. Even if you don t get into debt, overspending can take away from important saving goals, like a down payment for a house, college, or retirement.. This module covers factors that commonly affect the psychology of our spending, including:.. The Role of Advertising.. Keeping Up With the Joneses.. Spending Habits.. Impulse Buying.. Bargain Hunting.. Retail Therapy.. Money as Love.. I ll Worry About Tomorrow Tomorrow.. Chapter 1: The Role of Advertising.. If you watch television, read magazines, listen to the radio, or even just drive on major roads, you are probably very familiar with advertising.. A common tactic that advertisers use is to appeal to a certain fear or desire or imply that their product or service can provide  ...   loss:.. Most often used by insurance companies, home security firms, and manufacturers of other security products.. The desire for recognition:.. Commonly used by sellers of status symbols denoting association with fame or wealth.. Enhancement of our self-esteem:.. Used by sellers to promote knowledge based products, such as self-help courses or educational degrees.. Financial gain:.. Used by all advertisers to promote sale or discounted purchases and also by companies to market products that claim to generate income and wealth.. The desire to have a perfect, happy home:.. Often used by sellers of cooking and cleaning products.. The desire to be loved:.. Used by a variety of sellers, typically to encourage us to purchase products for others.. Advertising is not solely based on emotional appeals many are quite informative.. Having product information (e.. , size, capacity, energy efficiency, number of horsepower) allows us to compare similar items and choose the best one.. (Of course, you can also do independent research on-line and in magazines like.. ) Furthermore, the product or service advertised may represent a real personal need we are seeking to satisfy.. The challenge is to recognize the emotional appeals being made in most ads and minimize them so you can rationally judge the true value of what is being sold.. As you encounter advertising in your daily life, think about the validity of the images being presented and what it is that you will actually get from the product or service.. Those biscuits may not bring your family happiness, but they can provide a tasty breakfast..

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