Click on the button on your right to access the glossary to get definitions of terms used in hospitality.
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Here are basics to apply in managing your finances:
1. Always spend less than what you make. Did you know research show that people spend more money using a credit card in a store than using cash? So, use cash or a debit card instead.
2.Managing your finances means knowing how much money you make and how its spent. Monitor and review your spending habits by writing down (categorizing) everything that buy with your money for at least a 2 to 3 months. This should include your debit card, credit card and all cash purchases.
3. Always pay yourself first when you get your paycheck (many companies allow you to direct deposit your paycheck; you can direct an amount to savings).
4. Manage your finances by having four envelopes (or piggy banks) for Savings, Sharing (donations to charity or church), Spending and for Emergency.
5. Build a good credit history by starting with a department store credit card and pay off your bills on time. Charge only what you can repay within the monthly payment cycle.
6. Difference between debit and credit cards: debit card is for the amount of money you have in savings or checking account; a credit card company gives you a credit limit based on your credit history; it doesn't mean you have that money in the bank. When using a credit card, you are essentially borrowing money.
7. Whenever you charge a credit card, pay it in full when you receive the statement; minimum payment has lots of penalties (super high interest rates and late fees charged).
8. Make it a goal to have at least 6 months of emergency funds (through a separate savings). This is for unexpected medical bills, car breakdowns, etc.
9. Be aware of identity theft! Once a scammer knows your name, date of birth, address, and Social Security number, he can steal your identity and create a financial mess for you.
10. Be content with what you have. "The love of money is the root of all sorts of evil" and "the borrower is a slave to the lender". Too many marriages and relationships break up due to financial mismanagement.
11. Student loans for college education can be a big burden. Always apply for loans, scholarships and Federal PELL grants instead. You can also get educational assistance if you enlist in the military or join an apprenticeship program. When you go to college and keep changing your major because you are unsure, you not only wasted time but also money. So, think carefully before you decide on your career. College is not for everyone; some will do better with getting a certification with a skill that leads to high paying jobs (electrician, medical, automotive, etc.).
12. It is better to own than to rent. Home ownership builds equity and personal wealth.
13. Avoid buying a new car. It is wiser to buy a fairly new used car than a brand ne vehicle.
14. Start saving for your retirement when you start working (401K, Individual Retirement Plan or IRA).
15. Know the difference between wants and needs when making buying decisions. Plan major purchases by saving for them. Practice delayed gratification.
1. Always spend less than what you make. Did you know research show that people spend more money using a credit card in a store than using cash? So, use cash or a debit card instead.
2.Managing your finances means knowing how much money you make and how its spent. Monitor and review your spending habits by writing down (categorizing) everything that buy with your money for at least a 2 to 3 months. This should include your debit card, credit card and all cash purchases.
3. Always pay yourself first when you get your paycheck (many companies allow you to direct deposit your paycheck; you can direct an amount to savings).
4. Manage your finances by having four envelopes (or piggy banks) for Savings, Sharing (donations to charity or church), Spending and for Emergency.
5. Build a good credit history by starting with a department store credit card and pay off your bills on time. Charge only what you can repay within the monthly payment cycle.
6. Difference between debit and credit cards: debit card is for the amount of money you have in savings or checking account; a credit card company gives you a credit limit based on your credit history; it doesn't mean you have that money in the bank. When using a credit card, you are essentially borrowing money.
7. Whenever you charge a credit card, pay it in full when you receive the statement; minimum payment has lots of penalties (super high interest rates and late fees charged).
8. Make it a goal to have at least 6 months of emergency funds (through a separate savings). This is for unexpected medical bills, car breakdowns, etc.
9. Be aware of identity theft! Once a scammer knows your name, date of birth, address, and Social Security number, he can steal your identity and create a financial mess for you.
10. Be content with what you have. "The love of money is the root of all sorts of evil" and "the borrower is a slave to the lender". Too many marriages and relationships break up due to financial mismanagement.
11. Student loans for college education can be a big burden. Always apply for loans, scholarships and Federal PELL grants instead. You can also get educational assistance if you enlist in the military or join an apprenticeship program. When you go to college and keep changing your major because you are unsure, you not only wasted time but also money. So, think carefully before you decide on your career. College is not for everyone; some will do better with getting a certification with a skill that leads to high paying jobs (electrician, medical, automotive, etc.).
12. It is better to own than to rent. Home ownership builds equity and personal wealth.
13. Avoid buying a new car. It is wiser to buy a fairly new used car than a brand ne vehicle.
14. Start saving for your retirement when you start working (401K, Individual Retirement Plan or IRA).
15. Know the difference between wants and needs when making buying decisions. Plan major purchases by saving for them. Practice delayed gratification.