Financial Education

 

Tips for Good Credit and Money Management

During this time of financial crisis, it is more important than ever to manage money and credit wisely. Below are some helpful tips and links to assist you in understanding credit and managing your finances.


Understanding Credit

How do I know what my credit score is?

  • Obtain a free credit report every 12 months from www.annualcreditreport.com.
  • Always review this report for accuracy.
  • Understand what your score means and the range of possible scores.

Why is credit important?

  • A good credit score can make it easier for you to get loans or credit.
  • Credit scores are used to determine down payments and interest rates on mortgages, car loans, and other financing.
  • Good credit scores can assist with getting approval to rent an apartment or house.
  • Many employers check credit history when conducting background checks for potential employees.

How do I improve my credit score?

  • Create and stick to a budget.
  • Always track your spending.
  • Always pay all bills on-time and avoid skipping payments.
  • Pay AT LEAST the minimum payment on credit card bills. It is always better to pay off more than the minimum if you can.
  • Avoid exceeding your credit limit. Actively manage credit accounts and keep a cushion of 15% of available credit to avoid this dilemma.
  • Ask for help when you need it. There are many organizations that offer low-cost or free credit counseling services. Please visit http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm for the Federal Trade Commission's tips on choosing a counseling service.


Money Management Tips

  • Contribute the maximum amount to your retirement accounts, including your 401(k) and your IRA.
  • Know and understand your credit score. 
  • Open up a 529 savings plan to make college more affordable, and get a tax deduction! Visit www.cfnc.org for more information.
  • Make a goal to pay yourself first each month by investing money in an interest-bearing savings account. Start with a small amount - say $10 - then increase that amount every three months. Try to save at least 6% of your monthly net income!
  • Create an emergency fund for yourself and your family. You should have at least three months of living expenses stashed away in an interest-bearing account in case you lose your job or encounter an unexpected major expense.



Financial Education

Since his first day in office, Treasurer Moore has worked to educate North Carolinians of all ages about financial issues, including the importance of saving and the power of homeownership. He has spoken to groups across the state on the importance of financial literacy and hosted the first statewide conference on financial literacy and asset building.

Treasurer Moore has been particularly focused on the education that North Carolina’s children receive about money matters. Through a number of coalitions and outreach efforts, including the Jumpstart Coalition and the BizWorld Foundation, he has helped to teach students about basic financial concepts. Along with the Department of Public Instruction, Treasurer Moore recently implemented a statewide survey of 7th graders’ financial literacy, called $kill $et.

For additional information and to learn more about financial education, please visit: