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PRESENTERWilliam Chichester, III, Campus Diversity Recruiter

Corporate & Investment BankingWachovia Corporation

Overview

•Budgeting

•Savings

•Credit

Wake-Up Call - The Costs of Clubbing

For the Fellas Cost # CostBarber $15 1 $15Cover $20 1 $20Beer (Corona) $6 2 $12Mixed Drink (Cranberry Vodka) $8 2 $16TOTAL $63Club 1/wk & only every 2 wks/yr 26 $1,638Club 1/wk & every wk/yr 52 $3,276

Wake-Up Call - The Costs of Clubbing

For the I.N.D.E.P.E.N.D.E.N.T. Ladies Cost # CostHair & Nails $0.00 1 $0Cover $0.00 1 $0Beer $0.00 0 $0Mixed Drink $0.00 0 $0Total Cost per Night Out $0Club 1/wk & only every 2 wks/yr 26 $0Club 1/wk & every wk/yr 52 $0

Budgeting

Calculate Your Bi-Weekly Check

•What’s the average gross base salary for a Charlotte-based college graduate?

•$43,000/year

•How much are you really bringing home per year?

•Calculate Your Take-Home Pay:http://www.paycheckcity.com/copaycycle/netpaycalculator.asp

Your Pay Check Results

Bi-weekly Gross Pay $1,653.85

Federal Withholding $219.19

Social Security $102.54

Medicare $23.98

North Carolina $103.00

Net Pay per Check $1,205.14

Net Annual Salary ~$24, 0000

Note: The $1205.14 does not account for pre-tax contributions into your company’s 401K Plan and your after tax contributions to your benefit plan (Medical, Dental, Vision, etc.). Factoring these items in, you’re probably only bringing home $1000 bi-weekly check

SET UP YOUR BUDGETBudget

IncomeMonthly Net Salary 2,000$ Total net monthly income 2,000$

ExpensesFixed expenses Rent 650$

Car insurance 100$ Car payment 200$ Student Loan Payment -$

Flexible expenses Savings (10% suggested) 100$ Food 200$ Utilities - Electric Bill 60$ Transportation/Gas - $3/gallon 50$ Cell Phone 50$ Parking and tolls - $6/daily Uptown (5x wk/5wk) 150$ Credit Card Payments 50$ Repairs/Maintenance -$ Medical expenses -$

Other Clothing -$ Entertainment (ie Clubbing) 100$ Beauty (Hair/Grooming) 30$ Household items -$ Gym 30$ Total monthly expenses 1,770$

SummaryTotal monthly income 2,000$ Total monthly expenses 1,770$ Positive Budget by 230$

10 Tips for Reducing Expenses1. Enroll in Automatic Billpay & Payroll Deductions

2. Live with a Friend or Family

3. Decrease Your Daily Environmental Impact

4. Self-groom

5. Purchase cheaper cell phone plan

6. Quit Your Vices

7. Shop at Family Dollar

8. E-Bay

9. Hotwire.com

10. Utilize Employer Discounts

MONITOR SPENDING & COMPLETE BUDGETBudget Actual Difference

IncomeNet Monthly Salary 2,000$ 2,000$ -$ Total net monthly income 2,000$ 2,000$ -$

ExpensesFixed expenses Rent 650$ 650$ -$

Car insurance 100$ 100$ -$ Car payment 200$ 200$ -$ Student Loan Payment -$ -$ -$

Flexible expenses Savings (10% suggested) 100$ 100$ -$ Food 200$ 125$ (75)$ Utilities - Electric Bill 60$ 50$ (10)$ Transportation/Gas - $3/gallon 50$ 20$ (30)$ Cell Phone 50$ 50$ -$ Parking and tolls - $6/daily Uptown (5x wk/5wk) 150$ -$ (150)$ Credit Card Payments 50$ 100$ 50$ Repairs/Maintenance -$ 60$ Medical expenses -$ -$ -$

Other Clothing -$ -$ -$ Entertainment (ie Clubbing) 100$ 50$ (50)$ Beauty (Hair/Grooming) 30$ 15$ (15)$ Household items -$ 45$ 45$ Gym 30$ 30$ -$ Total monthly expenses 1,770$ 1,595$ (235)$

SummaryTotal monthly income 2,000$ Total monthly expenses 1,595$ Positive Budget by 405$

Savings & Investing

•Open a High Interest Bearing Savings account

•Participate in Employer Retirement Plan

•Visit Wachovia’s Investment Basics website:•http://www.wachovia.com/personal/page/0,,505_510,00.html

•Visit Vanguard’s Investment Basics website:•https://personal.vanguard.com/us/planningeducation/education

Credit

What’s Your FICO Score?•Predicts a person’s likelihood of paying one’s debts

•FICO scores range between 300 and 850

•FICO Score Ratings:

•Excellent: Over 750•Very Good:720 or More•Acceptable: 660 to 720•Uncertain: 620 to 660•Risky: Less than 620

How is Your FICO Score Calculated?

•35% on your payment history

•30% on the amount you currently owe lenders

•15% on the length of your credit history

•10% on the number of new credit accounts you've opened or applied for (fewer is better)

•10% on the mix of credit accounts you have (mortgages, credit cards, installment loans, etc.)

How Do I Build Credit?1. Visit freecreditreport.com & know your score from Equifax, Experian, TransUnion

2. Don’t have a credit history? Here are good starting points to establish one:

Options Pros ConsDepartment store credit cards

• Offered relatively easy.• Good way to start building credit

• Low credit limit• Typically high interest rates.

Obtain a co-borrower

Relatives and friends with good credit history may co-sign your credit obligation

• The credit will be in your name and the co-borrower’s name.• If you default, it appears on their file, too.

Secured Credit cards

• Your savings account may serve as the guarantee for the debt.• Your line of credit will be a % of your savings balance.

• Typically high interest rates.• Typically high annual fees.

Avoid Credit Traps1. Pay your bills on time.

2. Negotiate with creditor/lender

3. Don’t solicit or accept un-needed credit cards

4. Annually monitor your credit report via annualfreecreditreport.com

5. Correct and dispute credit report errors

6. Subscribe to a credit file monitoring service

7. Maintain your owed balances to manageable levels.

8. Longer credit history

9. Credit Mix of Revolving (i.e. dept store) & Installment (loan)

10. Consult with a reputable credit counselor (NFCC.org)

Q & A

COPYRIGHT Wachovia CONFIDENTIAL

Budgeting•Step-by-step plan for meeting expenses in a given period of time

Benefits•Know What’s Going On•Self-Learning•Organization•Take advantage of opportunities•Goal-setting•Extra money

Expense Tracking Tools

Day What did I spend my money on today?

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sunday

•Quicken - Download Bank Statements•Daily Spending Diary

Recordkeeping & Identity Theft

•Keep information in a safe place •Keep your files organized •Keep records for at least 3 years•Shred all files/junk mail before disposing•Don’t view personal information on public computers•Delete history and browser cookies•Beware of phishing e-mails•Never share personal information to unknown callers

Why is FICO Important to You?

GOOD CREDIT SCORE

•Faster loan approvals•Pay lower interest rates•Easier pre-employment process•Easier to get credit cards •Easier to purchase a home•Less Documentation•Less Hassle•Allows you to shop around•Credit card reward programs

BAD CREDIT SCORE

•Denied credit/loans •Pay higher interest rates•Hard to get a job•Hard to rent•Hard to get a home•More documentation needed•More hassle•Limited

How Long Do Items Stay on My Credit Report?

Purge Rules:

• Inquiries: 2 years

• Accounts with no derogatory history: 10 years

• Accounts with a derogatory status: 7 years (ex: charged off)

• Late or missed payments: 7 years

• Collections: 7 years

• Tax Liens: paid: 7 years; unpaid: 15 years to never

• Judgments: paid/unpaid: 7 years

• Bankruptcy: Chapters 7 & 11: 10 years

• Bankruptcy: Chapters 12 & 13: 7 years