BUSINESS & FINANCE
For Any Age or Stage: Practical Advice for Everyone on How to Save and Manage Money
N
o matter how old or young you are, there are some ba-
sic things you can do to better manage and protect your money. Here are recommendations from FDIC Consumer News. Comparison shop for finan-
cial services. Just as you would do for any major purchase, look at what is being offered by your bank and a few competitors, then try to find the best deal to meet your needs. For instance, with a mortgage, credit card or other loan, you may be able to nego- tiate the interest rate and other terms. This can save hundreds or thousands of dollars over several years. Start by comparing the Annual Percentage Rate (APR) on a loan or credit card. The APR is the cost of credit expressed as a yearly rate, including interest and certain fees. “Many people looking for a loan only fo- cus on the dollars they’d pay each month instead of the APR and, because of that, they don’t realize how much the loan will cost and they could pay too much,” said Rae-Ann Miller, special advisor on con- sumer issues in the FDIC’s research divi- sion. For example, she said, payday loans (unsecured loans that borrowers promise to repay out of their next paycheck or reg- ular income payment) and car-title loans (secured by the borrower’s car) “may be quick and easy sources of cash, but they also have an APR as high as 300 to 400 percent.” Also, for a mortgage, consider a fixed-rate loan even if adjustable-rate mortgages (ARMs) carry a lower ini- tial interest rate or lower monthly pay- ments at the start. “If you are thinking about an ARM, before you commit to one, make sure you know how much the monthly payments could go up and be comfortable with those higher pay-
44 HISPANIC NETWORK MAGAZINE
or you want to rent an apartment, chances are your credit report will be reviewed.
One reason you should be monitoring your credit reports is to correct errors or omissions that can leave bad marks on your credit history. Inaccuracies in your credit report can needlessly reduce your “credit score” and, in turn, may cost you hundreds of dollars each year due to higher interest rates on a loan or credit card. Another reason to review your credit reports is to protect against identity theft. Under federal law, you are en-
ments,” cautioned Janet Kincaid, Chief of the FDIC’s Consumer Response Center. “Don’t let a low teaser rate lure you in; you may be surprised later.” When you consider opening check-
ing and savings accounts, compare the Annual Percentage Yield (APY) of- fered by several financial institutions. The APY expresses the annual interest rate you will earn on a deposit account, depending on the frequency of com- pounding. However, keep in mind that fees — such as those for ATM with- drawals, account maintenance and checks returned because of insufficient funds — aren’t factored into the APY. Fees can make a big difference in how much you actually earn from money you have on deposit. Get a free copy of your credit re-
ports. These reports are prepared by companies called credit bureaus. They summarize your history of paying loans, credit cards and other bills. If you apply for a loan, insurance or a job,
Celebrating 19 Years of Diversity
titled to one free credit report ev- ery year from each of the nation’s three major credit bureaus. To or- der your free reports or for more information, go to
www.Annual-
CreditReport.com or call toll-free 1-877-322-8228.
Try to save more and spend less.
First, if you don’t already have a month- ly budget, consider preparing one to get a better handle on your income and expenses for necessities, such as hous- ing, utilities, food and transportation. You can also decide what is appropri- ate for non-essential expenses, such as entertainment, eating out and the lat- est electronics. “This is how a budget can help you commit to saving a little money every month and splurging a little less,” said Kincaid. Keep banking costs down. With planning, you can sidestep some of the more costly fees and penalties. Ex- amples: n With credit cards, try to pay
the card balance in full each month to avoid interest charges. If you can’t pay in full every month, send in as much as possible to keep interest costs to a minimum. “Think twice before accepting an offer from your credit
www.hnmagazine.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84