Youth Financial Success

What is Credit?
- Credit refers to money lent to you by the bank that you will have to pay back, usually with interest:
  - Mortgage
  - Personal loans
  - Credit cards
What is a Credit Score?
- A credit score is a reflection of your credit behavior; how likely you are to pay a loan back on time, based on information from your credit reports.
- It ranges from 300-850.
- The lower your credit score, the lower the chance you’d get accepted for a loan.
Why is it Important to Maintain a Good Credit Score?
- It informs the bank or lender you are borrowing from that you are reliable and will pay back.
- It also qualifies you for
  - Cheaper borrowing costs
  - Easier loan and credit approval
  - Better rental opportunities
  - Fewer utility deposits
  - Lower insurance premiums
How to Maintain a Good Credit Score
- Pay off any credit card debt
- Pay your bills on time
- Don’t make additional payments with your credit card if you are
- borrowing money
- Have a family member add you to their credit card
- Dispute any errors on your credit report

What is the difference between Debit and Credit?
- A Debit Card uses money from your Checking Account, and is best for everyday spending.
- A Credit Card borrows the Bank’s money and pays them back later.
- Credit cards are mostly used for larger purchases like memberships, a family phone bill, and more. Recurring memberships are a great way to start a good credit score.
What is a Checking Account?
- A Checking Account is an account you deposit
  money into to spend. If you have a Debit Card,
  it’s linked to your checking account to make purchases with.
Pros of Having a Checking Account
- Easily make purchases
- No monthly limit on spending
- Access the funds of your account from anywhere
How to Open a Checking Account with MPCU
- Click here for more information!

What is a Savings Account?
- A savings account is a deposit account in which you can save money that isn’t used for daily expenses.
Pros of a Savings Account
- By depositing money into a savings account for long periods of time, you can accumulate and grow interest.
How to Open a Savings Account with MPCU
- Easily make purchases
- No monthly limit on spending
- Access the funds of your account from anywhere
How to Open a Checking Account with MPCU
- Click here for more information!

Check out this blog for more information on Checking vs. Savings!

6 Steps to Start Budgeting

Look at current spending habits, fix them if needed.
Make sure to know what your expenses and income are.
Save a percentage of money each paycheck for long-term goals (car, college, etc.)
Put your needs over wants.
Make sure to remember to budget and adjust from time-to-time
Try the Free MPCU Money Management Tool HERE!

What is a Credit Card?
- A credit card is a plastic card that allows access to a line of credit offered by a financial institution.
Benefits
- Can help you build good credit
- Ongoing rewards can give back some of the money you’ve spent
- Credit card bills are flexible
Downsides
- May charge fees; ex: late payment, balance transfer, annual,
  foreign transaction
- You will be charged interest at varying amounts if your balance
  isn’t paid in full by month’s end
How to Have Your Credit Card Work in Your Favor
- Try your best to pay your bill in full and on time every month
- Keep your credit card balance below 30% of your available credit
- Make sure at least 6 months have passed before your last application before applying for a new credit card
How to Open a Credit Card with MPCU?
- Apply Online Today!

Teens between the ages of 14-17 are eligible to open this account with a present parent or guardian as a joint owner. (A guardian can include a sibling over 18)
Come into any MPCU branch and open a Rising Teen account with a couple of quick steps!
- A credit card is a plastic card that allows access to a line of credit offered by a financial institution.