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KEY BEHAVIORS
Financial Literacy
- Assess Spending
- Prepare and live by budgets.
- Manage money and document how it is spent.
- Separate necessities from other desired purchases and pay for necessities first.
- Limit payroll deductions to asset-producing goals.
- Anticipate future large purchases (car, furniture) and set aside money in a savings account.
- When extra money is needed, think like an entrepreneur and earn short-term cash.
- Pay bills on time using cash and checks, not credit cards.
- Avoid or minimize debit card transaction fees.
- To reduce phone, mail, and credit card solicitations, sign up on donotcall.gov, dmachoice.org, and optoutprescreen.com.
- Build Credit
- Learn what it takes to get higher credit score.
- Avoid actions that damage a credit score.
- Take actions that improve a credit score.
- Don't get fooled by “no money down” and “buy now/pay later” sales.
- Keep only one credit card and select a card that does not charge high annual fees.
- Calculate all the interest expenses into the price of a purchase using credit-cars, furniture, more.
- Use credit cards for purchases that require them (i.e. car rental, business trip).
- Pay the full credit card balance at the end of each month.
- Create Assets
- Open a savings account.
- Set up a retirement account.
- If you are the principal bread winner, take out a life insurance policy.
- Regularly put money into savings and retirement accounts.
- Use low-interest loans for asset-producing goals (education, business, home).
- Put extra cash in secured or low-risk investments.
- Think of a car as a necessity rather than an asset; it loses value as soon as you drive it
Entrepreneurship
- Assess Options
- Maintain a list of five jobs reflective of the current economy that could be applied for or created.
- Write down job goals and the steps to take to achieve the goals.
- Document skills, experiences, and accomplishments.
- Prepare and maintain an updated resume and brief bio.
- Collect letters of support from 3 references that aren't family members.
- Keep samples of tangible accomplishments (art work, awards, picture of newly painted room).
- Complete a sample business plan for a good or service that could be sold to a local market.
- Build Experience
- Acquire the knowledge and skills needed to perform job duties needed in the current economy.
- Complete five job experiences (volunteer or paid, short-term project or longer-term job).
- Lead a group or supervise a person or project (team captain, school project, church event).
- Make presentations to groups.
- Do a mock job interview and successfully complete a real job interview.
- Do a mock performance review and successfully complete a real performance review.
- Create Markets
- Keep in touch with, and ask advice from people achieving success (classmates, co-workers, others).
- Support local organizations and businesses (volunteer, make purchases, encourage other supporters)
- Share personal accomplishments with someone one-on-one.
- Talk to potential customers and learn what they want.
- Distinguish yourself from others.
- Prepare a sample contract offering something for sale and prepare a real contract that
- results in a sale.
- Sell a good or service (one-time sale-raffle ticket, school event; ongoing sales-mowing, cleaning).
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