Table Of ContentTABLE OF CONTENTS
FOREWORD
CHAPTER 1: Budgeting
CHAPTER 2: Understanding Banking
CHAPTER 3: Why Save and How
CHAPTER 4: The Habit of Saving and Starting Early
CHAPTER 5: Do You Need a Financial Advisor?
CHAPTER 6: Insurance You May Need
CHAPTER 7: Saving For Retirement
CHAPTER 8: Establishing Credit
CHAPTER 9: Avoiding Debt and Bankruptcy
CHAPTER 10: Fixing Your Credit
CHAPTER 11: Buying a Home
CHAPTER 12: Investment Basics
CHAPTER 13: Building Your Portfolio
CHAPTER 14: Avoiding Investment Scams
CHAPTER 15: Creating Fixed Income
CHAPTER 16: Taxes—What You Should Know
Appendix A: Budget & Saving Guess Your Expenditures
Appendix B: Basic Banking
Appendix C: Insurance
Appendix D: Debt
Appendix E: Retirement
Appendix F: Buying A Home
Appendix G: Advisor
GLOSSARY
FOREWORD
By Juan Ciscomani
As a trainer of financial counselors, I have witnessed the average consumer’s
pitfalls first hand. I understand the mistakes that can be, and often are, made. I
also know the steps to take to prevent a financial disaster and how to recover
from one that has already occurred.
So many consumers believe that financial management is about denying
themselves life’s pleasures. They do not see that financial management is simply
managing their money in a way that leaves them in control; it is about tempering
wants with reality.
Will you ever have debt? For most of us, the answer is yes. Debt is not a bad
thing if you understand what you are doing before you get yourself caught up in
the world of “big, fast, and beautiful.” Whipping out the credit card and then
cringing over the bill and the interest charged is not control. The point of money
management is to make conscious decisions and to control your money — not
letting your money control you.
If you already are in financial trouble, there is no one right way to fix the
problem. It would be great if there were a quick fix, but it took time to get into
trouble and it will take time to get out of it. You have to look at the root cause.
Over-spending habits will require a different fix than late payment habits. Not
only will changing poor habits take time, but cleaning up the credit mess
reflected in your credit score will take time as well.
Having said that, there is hope.
If you are just starting out, reading this book will give you choices concerning
your present and your future. If you are financially sound but do not know how
to move toward savings and retirement, you will find the answers as you peruse
these chapters. Finally, if you are in financial trouble, this book can help you
find a way out and create a better financial path.
Knowledge is key in all things. The Complete Personal Finance Handbook will
give you the knowledge you need for a better financial future.
Juan Ciscomani
Senior Instructional Specialist
Credit-Wise Cats
Take Charge America Institute for
Consumer Financial Education and Research
John and Doris Norton School of Family and Consumer Sciences
The University of Arizona
Phone: 520-626-5376
Fax: 520-621-3209
http://tcainstitute.org/
Juan Ciscomani began to develop his expertise in personal finance throughout
his academic career at The University of Arizona. Joining the Credit-Wise Cats
(named after the University of Arizona’s Wildcats) allowed him to become a
highly trained counselor and offer personal, financial education to University of
Arizona students, faculty, and the greater Tucson community. In addition,
Ciscomani developed a wide variety of Spanish language money management
workshops to cater to the needs of the Hispanic population in Tucson. Moreover,
through the Credit-Wise Cats and Students in Free Enterprise (SIFE), Ciscomani
participated in regional and national case study competitions and other creative
programs with the sole mission of teaching personal finance. In May of 2005,
Ciscomani graduated Cum Laude with a Bachelor’s degree in political science
from the University of Arizona.
Upon graduation, he was one of twenty recently graduated Hispanic scholars in
the United States selected to participate in the Congressional Hispanic Caucus
Institute (CHCI) Public Policy Fellowship Program in Washington, DC. During
his nine-month fellowship, Ciscomani worked as a Legislative Assistant in the
House of Representatives for Rep. Loretta Sanchez of California. In this
position, he researched, tracked, and developed legislative initiatives and
appropriations requests in issue areas, including: financial literacy, education,
housing, telecommunications, and environment. He also handled all small
business, economic development, and banking issues for Representative
Sanchez.
After completing the CHCI Public Policy Fellowship Program, Ciscomani
returned to Arizona and rejoined the Credit-Wise Cats and SIFE team at the
University of Arizona. As Senior Instructional Specialist, he now trains the
Credit-Wise Cats and assists them in developing personal finance knowledge in
a broad spectrum of topics. Furthermore, Ciscomani researches and writes
personal finance case studies with solutions that are used at college level
personal finance case competitions and regional and national personal finance
case study competitions. During the past year, Ciscomani played an integral role
in launching and coordinating the Xtreme Xplorations program at a new local
charter school, Wildcat Middle School. As program manager, he teaches
personal finance to the students, in addition to training, supervising, and
coordinating university students and volunteers on a weekly basis.
Ciscomani’s decision to return to Tucson was primarily based on his interest in
contributing to his community. Within the past year, he helped initiate the Pima
Community College Alumni Association and currently holds a position on the
new Alumni Board. As a result of his involvement with the Alumni Association,
he also sits on the Pima Community College Foundation Board of Directors.
Table of Contents
CHAPTER 1:
Budgeting
What Is a Budget and Why the Need for
One?
Definition: A budget is simply a game plan for managing income to
cover the cost of living over a set period of time.
The best way to start taking control of personal finances is with a monthly
budget. It can be complex: walking around with a notepad and pen itemizing
every purchase down to a single pack of gum, or it can be a simple list of general
categories: rent, utilities, transportation, and entertainment.
Creating a budget provides knowledge of:
• Monthly expenditures—the money going out.
• Monthly income—the money coming in to cover expenditures.
First Step to Financial Success
Personal financial planning consists of three general activities:
• Controlling day-to-day finances for freedom to do necessary and
recreational activities. Controlling these finances promotes a sense of
financial security.
