1. Chapter Three:
Understanding Financial Intelligence
It's good to have money and the things money can buy, but it's
good, too, to check up once in a while and make sure you haven't
lost the things that money can't buy.
George Lorimer
Chapter 3, Cornerstones for Professionalism, 2/e,
Pearson Education
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2. Chapter Goals
Learning
• Take charge of your
financial decisions
• Empower yourself through
money management by
budgeting, saving, and
investing
• Importance of your FICO
score and how to build a
solid credit report
Ability
• Construct and use a budget
• Make wise decisions
regarding credit cards,
student loans, and financial
aid
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Professionalism, 2/e, Pearson Education
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3. Taking Control of Your Money
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Professionalism, 2/e, Pearson Education
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4. Empowering Yourself
with Delayed Gratification
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Professionalism, 2/e, Pearson Education
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5. A Budget
An itemized summary of how you plan to spend
your financial resources during a specified
period of time
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Professionalism, 2/e, Pearson Education
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6. Five Smart Money Moves
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Professionalism, 2/e, Pearson Education
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(Fowles, 2011).

7. Job Benefits
• health insurance
• life insurance
• dental insurance
• profit sharing programs
• free parking
• child care facilities
• exercise facilities
• others
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Professionalism, 2/e, Pearson Education
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8. Tax Deductions
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Professionalism, 2/e, Pearson Education
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9. Expenses
Fixed
• Housing
• Transportation
– Car payment
– Gas
– Insurance
• Utilities
• Loans
Variable Expenses
• Food
• Medical/dental expenses
• Car repairs/maintenance
• Internet/phone
• Entertainment
• Clothing
• Credit cards
• Education
• Other
• Savings/investments
• Day Care
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Professionalism, 2/e, Pearson Education
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10. Student Loan Borrowing Tips
Chapter 3, Cornerstones for
Professionalism, 2/e, Pearson Education
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11. Key Features about Student Loans
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Professionalism, 2/e, Pearson Education
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12. Defaulting on Your Student Loan
Chapter 3, Cornerstones for
Professionalism, 2/e, Pearson Education
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13. Building Your Credit History
Chapter 3, Cornerstones for
Professionalism, 2/e, Pearson Education
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14. Evaluating Credit Cards
• Lowest permanent
interest rate.
• Low or no annual fees.
• Avoid having too many
cards.
• Understand credit
terms and disclosure
statements.
• Beware of low
introductory rates.
• Make sure issuer
reports to a credit
agency.
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Professionalism, 2/e, Pearson Education
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15. Chapter 3, Cornerstones for
Professionalism, 2/e, Pearson Education
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16. Managing Your Credit
Chapter 3, Cornerstones for
Professionalism, 2/e, Pearson Education
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17. FICO Score
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Professionalism, 2/e, Pearson Education
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18. When to Get a Free Copy
of Credit Report
• Once every year.
• If you have been denied
credit in the previous 60
days.
• If you have been denied
employment or insurance
in the previous 60 days.
• If you suspect someone
has been fraudulently
using your accounts or
your identity.
• If you are unemployed
and plan on applying for
employment within the
next 60 days.
• If you are on public
assistance.
• When applying for a
mortgage you can get a
copy from your lender.
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Professionalism, 2/e, Pearson Education
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19. How to Improve Your FICO Score
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Professionalism, 2/e, Pearson Education
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20. Identify Theft
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Professionalism, 2/e, Pearson Education
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21. Retirement Questions
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Professionalism, 2/e, Pearson Education
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22. Paycheck Deductions
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Professionalism, 2/e, Pearson Education
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23. Buying a Car
• Insert photo 3.7 from page 121
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Professionalism, 2/e, Pearson Education
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24. Chapter Reflections
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Professionalism, 2/e, Pearson Education
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