Paul's Financial Page

Financial Algebra is important because it teaches life long financial skills and good habbits.

Paul Lally's

$Financial Page$

About me: I like to spend time skiing, mountain biking, wake-boarding, and outside. I love my family and my girlfriend Lauren. I am thankful to get to play guitar for youth group. I Love God and Jesus.

Money personality

Probably a saver, and a giver. I enjoy saving my money and making more money off of my purchases. I also enjoy helping people with my resources and money, if someone is struggling or needs something I enjoy giving them what they need.

Goals

• Provide for family, live comfortably

• help others, help family

• have some money to do some fun things like skiing or motor sports.

Plans & Challenges

My biggest struggle to meet those goals is just experience, lack of financial skills, connections, work ethic, education level. My plan is to work hard, spend the time, won't be afraid of getting multiple degrees or even going to trade school and college, being open to oppurtunity, and not afraid to stick the hard things out.

wHy USe A Bank

Banks are Helpful for saving, budgeting, and spending.

WHY:

Banks are sae because they are FDIC insured up to 250,000 dollars the NCUA covers 250,000 as well.

FDIC:

The difference in checking and saving accounts is in the number of monthly with drawals the accounts allow. Typically a savings account allows for 6 with drawals in a month while checking allow for unlimited.

ACCOUNT:

Banks Vs Credit Unions

1. Banks are for Profit
2. Banks Have higher fees
3. Generally not required to be part of a special group
4. national & international

1. Not for profit
2. member owned
3. Lower fees, gives back
4. Fewer locations
5. Requires membership of special group.

Online Banking

1. Lower to no maintence fees due to no physical over head costs.
2. Lower minimum balance
3. Access money 24/7
4. Requires ATM to access cash, somtimes charges fee.

What's the big difference?

CD's, MMA's, & SAVINGS

CD's:

MMA

Savings

Banked V. Unbanked

High interests rates are good for savings and checking account. They are bad on loans. Always look at the interest rates of loans and the terms of the loan.

Interest Rates

Banked is better for saving, having money insured, building credit, and safe gaurding assets. Being unbanked is generally riskier, more of a hassle and makes getting loans and building credit hard to not possible.

All AbOUT CREDIT

Credit reports: Credit reports display the history of all transactions on your credit cards. It shows your balances, and accounts that you have credit on over time. It shows how trust worthy you are when it comes to paying back debt.

Credit Score: Your credit score sums uip how well you manage your credit, it factors how much crediit card debt you have, weather you pay all your bill every month, and if you miss any payments. It also factors in how many credit cards you have.

Fico Scores range from 300-850 850 being the best possible and 300 being the worst possible. 300-579 is considered poor 580-669 is considered fair 670-739 is considered good 740-799 is very good 800-850 is exceptional

1. Payment History 35%
2. Amounts owed 30%
3. length of your credit history 15%
4. your credit mix 10%
5. any new credit 10%

Credit report catergories: Payment History Length of History Inquiries amount owed credit limit or amount credit mixs accounts opened accounts closed loans & mortgages

The three Major Credit Bureaus: Equifax, TransUnion, and Experian are the three major credit bureaus. It is important to check your scores across all three credit unions. Checking your scores can help to catch any errors or dings to your credit. The scores the three major bureaus give you

Jan 6-10 2025

• What is the stock market: The stock market is an exchange where shares of publicly traded companies are bought and sold.

• Risk and Reward: Risk is the potential loss that a certain investment carries, for stocks their is ussually the potential to lose all of your money, but their is unilimited potential for growth. However it is unrealistic to
• Diversification:
• The power of compound growth
• Types of Investments (Stock, Mutual/Index Funds, Bonds) & What they are
• How to Research a Stock
• Index Funds vs. Individual Stocks vs. Bonds vs. Liquid Cash

• Long-Term vs. Short-Term Investing
• Start Small and Learn as You Go

The Role of Emotions: It is important to invest with the mindset that past performance is no gaurantee of future rewards. Don't let fomo influence you to buy a stock that is rising very high, or to influence you to sell more of a stock that is tanking. It is important to have a strategy that you stick to without letting your emotions interfere, or if you can't do that you should have someone else manage your stocks.

Risk and Reward: Risk is the potential loss that a certain investment carries, for stocks their is ussually the potential to lose all of your money, but their is unilimited potential for growth. Using stop losses, limit orders, or stop limit orders can help to maximize reward and minimize risk, for optimal risk to reward ratios.

Savings

Savings accounts generally don't offer very high interest rates. However, some banks, such as online banks, do offer higher interest rates on online savings accounts. They have limited with drawals per month and are made for keeping money in for emergency not really for spending.

CDs

CDs or certificates of Deposit are way of saving money. Typically when you want to put your money in a CD you set an agreement with the back. The bank agrees to pay you a fixed interest rate, usually around 3% in return you can't take your money out of the CD until the end of the agreed upon time. USally there is a minimum deposit of a few thousand dollars.

MMA

Accounts generally have a minimum balance of a few thousand dollars. The benefits are higher interest rate and check writing/ with drawal capabalities.