Thinking about money is smart.  Feeling stress or anxiety (worry) about money is "red flag" (sign) that you 
are heading for money problems.  In survey, 32% of adults said stress and worry about money causes loss 
of sleep.  Age group before today's high schoolers, called Millennials, are not han
dling money correctly to 
prevent problems, worry, and loss of sleep.  82% of these young adults are 
in debt (owe money) with largest debts in student loans and credit cards.  
How can I tell if I am heading for money problems?
•  You spend money on WANTS before you pay for NEEDS: Wants are 
clothes, concerts, Starbucks.  NEEDS are rent, car insurance, medical.
•  You live paycheck to paycheck.  You are desperate for your next       
paycheck because the money from your last paycheck is spent and gone.
•  You use your credit card to pay everyday purchases that you should pay fr
om your monthly budget of 
cash -- such as groceries, phone bill, rent, and car payment.
•  You have little or zero savings.   Rule of Riches says that you need to pay yourself first!  When you get 
a paycheck, 10% needs to go into your savings — never to be touched. 
 
•  You take out Payday Loan.  Payday Loan stores are mostly located in poor 
neighborhoods, and make 
people even poorer by taking advantage.  If you borrow $100 from a Payda
y Loan, the lender will 
charge $40 for 14 days. If you cannot pay $140 in 14 days, you may "roll ove
r" the loan for more time 
and more interest.  It is reported that average Payday Loan user ends up
 paying $793 interest on a $300 
loan because the person cannot pay the loan back and keeps rolling over 
the loan.  
•  You only pay minimum payment due on credits cards.  This makes your credit card debt grow higher.
•  You pay off one credit card payments with another credit card because you do not h
ave money.
•  You don't want to go online and look at your bank accounts.
•  You ask other people for money to pay your monthly bills and credit card 
bills.
So what if I owe money.  Who cares?
There are 3 credit bureaus tracking how well you handle your money (cal
led "your
credit history") — Equifax, TransUnion, and Experian.  These 3 credit bureaus 
give your credit history to company called FICO.  FICO takes your credit
 history 
and gives you a credit score from 300 to 850, with 850 being best.  Your FICO score is based on payment 
history, amount of debt (money owned), and length of credit history (how man
y years you used credit cards 
and loans).  Your FICO score tells lenders how likely you are to pay bills from your h
istory of paying bills.
How is my FICO score used?
Your FICO score follows you everywhere!  When you buy a car, the dealership will check 
your FICO score before giving you an auto loan.  In fact, car dealership
 will offer you loan 
interest rate based on your FICO score.  If you have high FICO score, yo
u will get low auto loan interest 
rate such as 4%.  If you have low FICO score, you will get a high intere
st rate such as 21%.  $4,000 auto 
loan at 4% interest is $160 interest each year.  $4,000 auto loan at 21% interest is $840 interest each year.  
If you have good money handling skills, you will save money when you buy
 a car.  All stores and banks 	
Your Money: Problems (page 1 of 2)	
Your Money: Problems

Permission to use with usworkworld.com subscription.  
1. a) What is red flag that you are heading for 
money problems?  b) What percent of adults 
have loss of sleep due to money worry?
2.  a) What are WANTS?  b) What are NEEDS?
3.  a) What does it mean to live paycheck to 
  paycheck?  b) What does Rule of Riches say?  
c) What percent needs to go into your savings?
4.  Payday Loan:  a) What do Payday Loans make 
people?  b) How much will lender charge for 
$100 for 14 days?  c) What happens if you 
  cannot pay in 14 days?  d) How much does 
  average Payday Loan user end up paying for 
$300 loan?
5.  a) Who tracks how well you handle money?  
  b) What does FICO do with your credit history?  
c) What is the best FICO score?  d) On what 3 
things is your FICO score based?  
QUICK CHECK:	
Your Money: Problems (page 2 of 2)	
who loan you money for a house, motorcycle, TV, or other item will check your FICO score before making 
a loan to you.  Your FICO score is checked before you rent an apartment.  Renters with  low FICO scores may need to pay higher rents.  
If I make money mistakes, how long until my FICO score can go high again?
You will get low FICO score if you:  1) Miss or make only minimum paymen
ts on credit 
cards. 2) Make late payments on car loan.  3) Do not pay your taxes.  
4) Break a lease on 
your apartment and not pay all rent money due.  5) Never pay back a loa
n, and loan goes into "collections."   
Collections means that company who gave you the loan, gave your loan ove
r to Collections Company.  
Collection Company tries to make you pay by aggressively calling you and
 sending you threatening letters. 
Your FICO score takes 5 to 10 years to repair after you ruin your credit 
history.  During this 5 to 10 years, 
you must pay your bills and loans PERFECTLY.  Then, your FICO score will go high again.
How can I see my credit report and FICO score?
You may get one free credit report from Experian, Equifax, and TransUnion credit 
bureau each year.  To get your free credit report, visit AnnualCreditReport.com.  Your 
credit report will list all your credit cards, loans, and how you pay.  Check your credit 
report each year to make sure there is not an error such as credit card 
bill that belongs to 
another person.  Fix errors you find immediately.   But, your credit report does not give 
your FICO score!  To get your FICO score: 1) Go to MyFICO.com to buy your score.  
2) Go to Experian, Equifax, or TransUnion websites to buy your score.  4) Go to your 
bank to ask for your FICO score.  Your bank may give you your FICO score for free.   
BEWARE of CreditKarma.com, CreditSesame.com, and Quizzle.com  You may buy your credit score at 
these websites, but you are then enrolled a subscription plan that makes you make payments for 12 months!   
There are 2 ways to get rich — earn more money or spend less money.  Which will you do?
6. Where does your FICO score follow you?
7.  What auto loan percent will you get if you have:  
a) high FICO score?  b) low FICO score?
8.  How much more yearly does person pay with 
$4,000 auto loan at 21% interest than at 4%? 
9.  What happens to renters with low FICO scores?
10.  List 5 reasons why you get a low FICO score.
11.  a) How does Collection Company try to make 
you pay?  b) How long does it take to repair 
your FICO score?  c) What must you do during 
the time you are repairing your FICO score?
12.  How do you get your free credit report?
13.  Why do you need to check your credit report?
14.  Does your credit report give your FICO score?
15.  List 3 ways to get your FICO score.
16.  a) Beware of what 3 websites?  b) In what do 
these websites enroll you?
17.  a) List the 2 ways to get rich.  b) Which way do 
you think is easier?  c) Why?