Your FICO Score Explained

In fitness, whether you’re counting calories, checking blood pressure, or managing your weight, numbers seem like they’re everywhere. Your FICO Score, also known as your “credit score” is a 3 digit number that sums up your entire credit history. It’s also the score financial institutions use when you apply for credit. A lot of websites out there offer a look at your credit score, but a “credit score” is not always your FICO.



The image above shows you why it’s so important to build the tradition of making your payments on time. Every 30, 60, and 90 days a payment is not made a ding hits your credit report and drags your score through the gutter. “Amounts owed” refers to all lines of credit, not just credit cards. However, keeping your credit cards at 30% of their available balance will be most beneficial to your FICO.

Your score will take into consideration all of the categories above, not just one or two. This means for some people, one area may be more important than for someone else with a different credit history. As the information in your credit report changes, so does the importance of any factor in determining your FICO score. Your best bet is to check websites like myfico.com to see your true FICO score. You can also visit annualcreditreport.com to receive a free credit report from all three credit bureaus once a year.

No matter what your financial fitness level may be, knowledge is power. Being aware of your position in the credit race will help you in being victorious!

The Mint Makes It First, It’s Up To You To Make It Last

-Jainie-

Lessons to Teach Your Kids About Finance Pt. 2

Hey there guys and gals! Last week Jainie covered some great lessons for getting parents pumped about teaching their children the wild and wonderful world of finance. This week I’d love to follow up and share even more valuable lessons you can teach your kids about money:

1. Teach them creating a budget. It doesn’t have to be complicated. The goal is teaching them to plan their spending. Make it simple, easy, and fun, that way they build the tradition now. It pays off huge as an adult.
   
2. Teach them to pay bills. If your teen-ager has a cell phone, include that in their monthly budget allowing them to pay the monthly bill. If they’re late, service is shut off.
   
3. Teach them about the dangers of debt. This is probably one for the older kids. You’ll need to discuss credit cards, loans, and avoiding pay day loans. If you break it down on paper, they’ll see how debt payments reduce their spending.
   
4. Teach them the value of earning money. They can start learning this lesson at a young age, by earning extra money (not from chores, as they need to learn to contribute to the household without expecting pay), but from extra projects, such as doing yard work or babysitting for the neighbors.
   
5. Teach them about impulse buying. Teach them to enforce a cool off period before making a purchase. This reduces the chances of making an impulse buy.

Teaching your kids these essentials will give them the tools they need to thrive. Teaching your kids financial fitness is a marathon and not a sprint. Take it slow, and learn from each other.

Have a Great Weekend
-Johnnie-