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Important financial questions to talk about in 2020

Better Money Habits: Money Talks is an honest discussion about the biggest financial questions that people have today.

We partnered with BuzzFeed in a year of change to bring you a roundtable conversation with real people and Bank of America specialists. They’re talking tips and strategies for navigating everything from job loss to family budgeting in 2020.

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The material provided on this website is for informational use only and is not intended for financial, tax or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.

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Title:
Better Money Habits ® in partnership with Buzzfeed Present Money Talks
Powered by Bank of America

[ Graphic – Chat Bubble and Coin ]

Disclaimer:
The views expressed are those of the speaker(s) only and are subject to change.
The information presented is for educational purposes only and should not be construed as investment or tax advice or an offer for a financial product or service.

VO Tonya Rapley:
Hi, I’m Tonya Rapley, entrepreneur and financial educator. And I can say in all honesty, I’ve never seen anything like this.

[ Graphic – Chat Bubble: Tonya Rapley Entrepreneur and Financial Educator
@MyFabFinance ]                                 

VO Rachel:
My income has been disrupted.

VO Candace
Okay, my daughter's at home now, all day, every day.

VO Amanda
& Andrew:
We’ve essentially lost a third of our income… and we don't really know when it's coming back.

[ Graphic – headshots in chat bubbles ]

VO Tonya Rapley:
Which is why we brought together this digital community. A group from around the country with Bank of America specialists, for a series of open and honest conversations.

[ Graphic –MAP and headshots in chat bubbles ]

VO Anthony:
How do I make credit work for me?

VO Marcela:
Don’t get overwhelmed by the numbers.

VO Bruno:
Let me see if I can bring the bill down at a different clip.

VO Courtney:
We have tools to help you understand contribution levels.

VO Andree:
If you fall in love with the process itself, then those sacrifices will pay off in the long run.

[ Graphic – headshots in chat bubbles ]

Title:
Better Money Habits ® in partnership with Buzzfeed Present Money Talks Powered by Bank of America

[ Graphic – Chat Bubble and Coin ]                                 

VO Tonya Rapley:
This is Better Money Habits: Money Talks. Brought to you by Bank of America.

[ Participants on screen ]

Alright, so this is gonna be a money conversation like you guys probably have never had before. We're gonna pair you with specialists from Bank of America, and I would love to learn more about you… Rachel!

VO: Rachel
So yeah I’ve had to take a huge shift.

[ Graphic – Chat Bubble: Rachel Olympia, Washington Paying off Medical Debt ]

I went from teaching in a classroom to teaching on my computer. I went from working five days a week to my only stable income is once a week now, which is scary. Coronavirus is a lot of people’s rainy day and their big emergency.

But for me, I was in a traumatic car accident of January 2019. I was rearended on the freeway. My car flipped over onto its side. Not only do I have the debt I had before, I have medical debt on top of that and it feels really overwhelming. It’s like running a marathon and not knowing where the finish line is.

VO Ahmed:
Yup!

VO Tonya:
Been speaking with a lot of people who are dealing with that, it feels like that.

VO Ahmed:
So we were coming up with a great financial plan, life was looking great and then the pandemic hit.

[ Graphic – Chat Bubble: Ahmed, Chicago, Illinois Job loss and pay for wedding]

[ Graphic: Personal Video ]

My main job as a design engineer, I was asked to take a pay cut, and then I lost my second job as a performer inside the city during nights and we weren’t able to do the show, so I lost a second income entirely as a result of it.

Me and my fiancé were just talking about this last night... weddings are not cheap.

VO Amanda:
No, no!

VO Ahmed:
And we don't know if the wedding is gonna happen any time soon. As our income got disrupted, yeah, we definitely have a look at expenses that just come out, that you don’t even realize. I do want to shout out my fiancé, because she was like, I’m not buying any new clothes for at least a month.

VO Amanda:
Yep!

VO Ahmed:
She just started going on thrift sites. Why do I want to pay full price for something when I might be able to get a deal on it and I thought that was like really savvy.

VO Rachel:
My landlord knows that we're both looking for full time work. And so she's given us a laundry list of things to do. And she says just count your hours I'll pay you $25 an hour and just take it out of rent. We did $400 worth of work for her before we even moved in. So, we were able to take that out of just the first month's rent.

VO Tonya Rapley:
That’s amazing!

VO Amanda:
So we decided to plant a garden and we almost halved our groceries spending.

[ Graphic – Chat Bubble: Amanda & Andrew, Tatamy, Pennsylvania Combining finances and navigating income disruption ]

VO Amanda:
We’re both chefs!

VO Andrew:
We are both chefs.

[ Personal Video ]

VO Amanda:
We like to eat food and make food.We had just bought our new house and then we lost kind of like a third of the income stream coming in so…

VO Andrew:
We do all this budgeting beforehand and you can really never budget for the unexpected.

[ Personal Video ]

VO Amanda:
Making spreadsheets! Really we’re just trying to find all the little hacks to save money. We actually learned how to can as well. We have sauces and vegetables and fruit compotes. And one day we will eat them. Right?

VO Andrew:
We're gonna have to, we have so much of it now.

VO Candace:
Meal prep and meal planning has been the very thing that I think has changed my budget.

[ Graphic – Chat Bubble: Candace Austin, Texas Teaching her daughter financial literacy ]

So something really cool that has happened for us during COVID is that my daughter and I got to move into our own space together, our own apartment. We have never been able to live on our own because I couldn’t do it financially on my own.

[ Personal Video ]

A year and a half ago, I was living paycheck to paycheck. Like there were times where I had to ask friends for gas money. And here we are now a year later. And I’m really excited to change my family tree and break those generational curses and that is such a fun and exciting thing to look forward to for the future for me and my daughter.

VO Tonya Rapley:
Yes! Kudos. So much good has happened.

I know that Chelsey is a new mom.

VO Chelsey:
Hi, I'm Chelsey. I live in Northeast Ohio. So I did not have any maternity leave. Nor did I qualify for FMLA. And my husband did not have any paternity leave. Because both of us are working from home, my husband is able to see our son way more than he would if he was at work hours a day.

[ Graphic – Chat Bubble: Chelsey, Akron, Ohio Home refinancing and childcare ]

This is where we used to eat dinner.

VO Matt:
And now it’s been our workstations.

[ Graphic – Chat Bubble: Matt, Chelsey’s husband ]

[ Personal Video ]

VO Chelsey:
Both of our parents are close to us and there have been times where we’ve asked them to come over and babysit so we could clean our house.

So just taking advantage of people who want to help and not being afraid to ask for that help.

VO Tonya:
Each of you have different goals that you're working towards, different things that you'd like a little more insight on how to navigate during this time. And so what we'll be doing is you'll pair up with a bank specialist to answer any questions that you have and really get a plan of action. And then from there, we will reconvene. And so, does that sound good to you?

Title:
Amanda & Andrew meet Anthony
To Discuss:

  • Determining your Budget
  • Debt Elimination Strategies

[ Participants on screen ]

VO Tonya Rapley:
Amanda and Andrew, you are in for a treat. We have joining us our Bank of America specialist Anthony Dinello. Give Anthony a little run down of what your pressing questions are.

[ Graphic – Chat Bubble: Anthony Dinello BMH Champion, Senior VP of Consumer Banking Market Leader ]                                   

VO Amanda:
We essentially lost a third of our income and it was right around the time we bought this house.

[ Graphic – Chat Bubble: Amanda & Andrew, Tatamy, Pennsylvania Combining finances and navigating income disruption ]

At this point we’ve kind of normalized and kind of stabilized a little bit but we really had to sit down and think about what the wants vs the needs were.

VO Anthony:
I think the first, most important thing is what are the monthly expenses that you have? What are the bills that you have that you can count on having to be responsible for every month. That should be your floor.

[ Graphic – Determining your Budget ]

Now let’s see what money we have left over. And what is our budget going to be for the month?

VO Amanda:
He actually helped me write my first budget in an excel spreadsheet.

VO Anthony:
Glad there’s an excel wizard in the house, that’s always helps to have. An honest mistake or two will happen along the way, so it’s very important that you set up alerts.

I actually have an alert on my phone for every single time a debit card is swiped I get a text message.

VO Amanda:
That’s a good idea. I like the alert thing so that both of us know that the spending would be happening. Keep the communication open!

VO Tonya Rapley:
You know it really helps establish checks and balances because then you’re accountable to someone other than yourself for how you’re spending.

VO Andrew:
I do also have a Bank of America credit card which I love because the system that they have on the backend is really useful for money management. The alerts is something I do have set up on my end and that’s just good to know whenever your card is being used, or whenever your budget is close to being exceeded even if it's 14 dollars under, you know it feels good that you’re within your means of what you’re trying to do that month.

VO Anthony:
You’re gonna probably going to say okay our goal would be to save this much, this month. would have two numbers in mind and I would really strive for that stretch goal and really challenge yourselves because I think you would be surprised, what you’re capable of.

VO Amanda:
It’s like the Chinese food last night. We are close to our eating out budget for the month but last night I was craving Chinese food and he looked at me and was like we’re close to the budget, we can’t get it, so we had leftovers.

VO Tonya Rapley:
Yeah you guys are great.

VO Amanda:
It was good leftovers. I'm glad we did it.

VO Anthony:
There’s a lot of value right, and starting to look at long term, and how much overall you can save when consolidating debt.

[ Graphic – Debt Elimination Strategies]

What type of debt is it? How much do I owe? How much is your minimum monthly payment? And then, what is your interest rate?

[ Graphic – Organize Your Debt in a Spreadsheet ]

VO Tonya Rapley:
For me it’s my favorite spreadsheet, that’s when things are getting done.

VO Andrew:
I think that’s a pretty cool idea. I never thought honestly about doing anything like that.

VO Tonya Rapley:
It allows you to see what your most expensive debt is or what's the smallest balance. It allows you to focus your game plan.

[ Graphic – Debt Elimination Strategies]

VO Anthony:
Some people say start with the biggest balance first, because the more you can knock that down the better. Personally, I like to start with the smallest ones first. That smaller amount you could pay off quickly. It feels good when you get one paid off.

[ Graphic- Chat bubble: Pay highest interest first saves the most money but paying smaller debts first can be motivational to keep going ]

[ Graphic – Debt Elimination Strategies: The snowball effect]

VO Anthony:
And then you have that extra money to go towards the other payments that you have.

VO Andrew:
Until now I didn't really think of it as a bunch of small pieces. I kind of just think of it as this big wall, if we look more at it more of it as like a bunch of bricks on a wall and you're just taking pieces out one at a time. I think it's going to seem manageable.

VO Anthony:
And it will encourage you to continue to do more and more.

VO Andrew:
The first thing we're going to do is make a spreadsheet with our debts and interest.

VO Amanda:
Date night, date night!

VO Andrew:
That’s not a date night!

VO Amanda:
It is! I need it to be fun

VO Tonya Rapley:
It’s a money date!

VO Andrew:
There's no such thing as a finance date night. I mean at least maybe there is now.

Title:
Amanda & Andrews:
Takeaways:

VO Tonya Rapley:
When trying to stick to a budget stretch goals can be highly motivating.

[ Graphic –Chat Bubble: When trying to stick to a budget stretch goals can be highly motivating.]

Organize all of your debt by balance amount and interest rate to help determine the best debt reduction strategy for you.

[ Graphic –Chat Bubble Organize all of your debt by balance amount and interest rate to help determine the best debt reduction strategies. Go to BetterMoneyHabits.com for more tools and guidance. ]

Title:
Chelsey meets Marcella
To Discuss:

  • Deciding on Childcare
  • Savings for Children
  • Home Refinancing

[ Participants on screen ]

VO Tonya Rapley:
And so Chelsey I know that you’re in good hands. We have our bank specialist, Marcella Gallego, I don't think there's anyone more perfect to assist you with your goals.

[ Graphic – Chat Bubble: Marcella Gallego BMH Champion, Senior Vice President, Parents Program Manager ]

VO Chelsey:
So we may need to look into some childcare, and so wondering some different ways that we can budget for that.

[ Graphic – Chat Bubble: Chelsey, Akron, Ohio Home refinancing and childcare ]

VO: Marcela
What worked for me best when I was doing this exercise... was I did a decision tree.

[ Graphic: Deciding on Childcare ]

Writing it down. If I had to go with a nanny, what exactly do I want? If I want to do daycare, what type of daycare? And then budget, and find out how much it will cost you.                            

[ Graphic: Decision Tree ]

VO Marcela:
And we landed on a hybrid option, we do day care in the mornings, and grandma comes in the afternoon.

VO Chelsey:
I never thought about that split.

[ Graphic: Decision Tree ]

VO Marcel:
It allows her to be social, and have fun. But in the afternoons she’s with grandma which is great, and is a little bit cheaper.

VO Chelsey:
How do I set up a bank account for my son?

[ Graphic: How do I set up a bank account for my son?]

VO Marcela:
It is a lot simpler than you think. You have a minor account, which will be joined with you, or you can open an account for them. They are the owner but you are the custodial. You just go to the bank with their social security number and open the account. Voila!

[ Graphic: Chat Bubble -  Joint Savings and Custodial Savings Account ]

VO Marcela:
Once Daniel is becoming a teenager. Now you can open a checking account with him so you can teach him how to use his money.

VO Chelsey:
Long term. College is very important to us. While we don't know what the education system is going to look like in 18 years, or even if he gets a full ride and all of the sudden doesn't need that money, so we don't necessarily want to put money into a pocket that we can't ever get out.

[ Graphic: Options when saving for college ]

VO Marcela:
34% usually comes from financial aid, and parents are usually responsible for 29 to 30% of the bill.

[ Graphic: Chat Bubble -   Financial Aid Chart ] Source: Sallie Mae, How America Pays for College 2016

Don't get overwhelmed by the numbers. Time is on your side, in the sense that you have 18 years, and small amounts consistently over that period, make a huge difference.

Disclaimer:
The information provided is for educational purposes only. Consult with your own advisor before engaging in any transaction.

VO Marcela:
It sounds to me like you need flexible options, and it might be a combination of things. You can have a savings account and a college plan that perhaps has some tax advantages to it.

VO Chelsey:
Ok.

VO Marcela:
So you could do a combination of both. Don't feel that you have to get married with one or the other, because you don't.

VO Chelsey:
We did buy our house, about three and a half years ago. We've been watching the mortgage rates, just plummet. And even though we got a good rate when we originally signed the paperwork. Does it make sense to refinance?

[ Graphic: When is a goodtime to refinance your home? ]

VO Marcela:
Refinancing is basically doing a whole new loan for your house, all over again. So when you first purchase your home, there were some closing costs associated with processing that loan.

Disclaimer:
The information provided is for educational purposes only. Consult with your own advisor before engaging in any transaction.

VO Marcela:
If you are going to save, let's say $200, but the closing cost associated with refinancing the home at $5,000. If you are not going to stay for at least 25 months, then you're not saving any money. Divide the closing costs by the savings that you will obtain, and that tells you how long you will have to be in the property for that to be a cost effective decision.

[ Graphic:  Is refinancing right for you? ]

VO Chelsey:
The easy math problem makes so much sense and makes it a lot more black and white.

Title: 
Chelsey’s Takeaways:

VO Tonya Rapley:
Considering refinancing? Factor closing costs and how long you plan to own your home into the decision.

[ Graphic: Chat Bubble: Considering refinancing? Factor closing costs and how long you plan to own your home into the decision. ]

VO Tonya Rapley:
A decision tree is a helpful tool for making financial decisions, like selecting childcare options.

[ Graphic: Chat Bubble: A decision tree is a helpful tool for making financial decisions, like selecting childcare options.]  Go to BetterMoneyHabits.com for more tools and guidance

Title:
Ahmed meets Andree
To Discuss:

  • Supplementing Lost Income
  • Budgeting for a Wedding

[ Participants on screen ]

VO Tonya Rapley:
And Andree is joining us. Ahmed, Andree is a Better Money Habits Champion. He is one of the Bank of America specialists and so Ahmed, let us know exactly what you hope to glean from these sessions.

[ Graphic – Chat Bubble: Andree Taylor BMH Champion, Senior Production Services Manager ]

VO Ahmed:
Once Coronavirus hit, my primary job asked us to take a 20% pay cut and then my second job lost that income completely.

[ Graphic – Chat Bubble: Ahmed, Chicago, Illinois Job loss and pay for wedding]

VO Andree:
I did notice that you are an actor, right? So, and you taught before...so is there a possibility that you could maybe do some online acting classes? Maybe supplement some of the lost income there? Because that's just a skill that you already have.

[ Graphic – Opportunities to subsidize lost income ]

VO Tonya Rapley:
I like how you think Andree.

VO Ahmed:
Oh yeah, that’s a really good idea.

Tonya Rapley:
My husband who is in production, he'll hire like voiceover actors, using some of these gig hire websites and so forth and he’ll be looking for someone to just do voiceover work. I definitely agree with Andree that that's something to think about is leveraging your understanding of like the voice and voice acting and maybe seeing if you bring in some additional income there.

VO Ahmed:
Me and my fiance Erica had a lot of tough talks in having to scale down our expectations of having a wedding. Trying to plan for the future and make sure that we're in a good strong, solid financial place for us that’s the ultimate goal. Being able to be in a position to make choices rather than sort of make sacrifices.

VO Andree:
And it's funny, you know, I was probably two or three years younger than you when I was married. We really had to take a hard look at our budget and cutting the cost where we could. And if you and your wife are fine with a smaller invite list, also consider maybe an outside venue, also think about music - have your own music. So, those are just some things to consider to help with these fiances as it relates to this wedding.

[ Graphic – Budgeting for a Wedding ]

Title:                          

  • Tips to Reduce Wedding Costs
  • Reduce your invitation list
  • Hold the ceremony outside or at home
  • Look to trunk show discounts or resale sites for the wedding dress
  • Use Digital invitations
  • Provide your own speaker and playlist for music

VO Ahmed:
That sounds good, thank you!

Title:
Ahmed’s
Takeaways:

VO Tonya Rapley:
Leverage your skills and experiences to generate supplemental income.

[ Graphic –Chat Bubble: Leverage your skills and experiences to generate supplemental income]

VO Tonya Rapley:
When budgeting your wedding, look for ways to keep costs at an amount that’s comfortable for you.

[ Graphic –Chat Bubble: When budgeting your wedding, look for ways to keep costs at an amount that’s comfortable for you ]  Go to BetterMoneyHabits.com for more tools and guidance

Title:
Rachel meets Bruno

To Discuss:

  • Managing Inconsistent Income
  • Paying off Medical Debt
  • Leveraging 0% Introductory Offers

[ Participants on screen ]

VO Tonya Rapley:
Rachel, we are joined by Burno Figueiredo. So, Bruno is a Better Money Habits Champion with Bank of America. And Rachel, I think that you can do a better job at really painting the picture for Bruno, letting him know how your personal emergency kind of kicked off and where you are today.

[ Graphic – Chat Bubble: Burno Figueiredo BMH Champion, Small Business Consultant Manager ]

VO Rachel:
Yeah, absolutely, Coronavirus has been traumatic for so many people and kind of exposed, what their rainy day funds look like. My personal emergency, my rainy day, happened in January of 2019. I was rear ended, and it flipped my car over onto its passenger side. So what I'm really looking forward to diving into with you today is just how I can balance, keeping myself healthy, and keeping my bank account healthy too.

[ Graphic – Chat Bubble: Rachel Olympia, Washington Paying off Medical Debt ]

VO Rachel:
My income has been disrupted. I don't have a consistent number coming in and every single month that changes in that inconsistent way, how do we plan for our future?

[ Graphic: Planning for the future with inconsistent income ]

VO Bruno:
We have freelancing resources to track time, budget, taxes. And then even moving into a business aspect and understanding the difference between an LLC and a sole proprietor or corporation. I always recommend going back to an accountant and finding out if it is right for you at certain points, and I think what's important to you based on your income is inconsistent, you still have to pay the medical debt.

Title:
Tips for Freelancer

  • Track your time
  • Factor irregular paychecks into your budget
  • Talk to an account about tax strategy

Disclaimer:
The information provided is for educational purposes only. Consult with your own advisor before engaging in any transaction.

VO Rachel:
Yeah, yeah.

VO Bruno:
A year ago my wife was diagnosed with breast cancer. We think medical debt is a bad thing but it's not. It's a good thing because it's the way we move her health forward.

VO Rachel:
That's a huge relief, and if I had heard that sentence a year ago, my recovery probably would have been so different, because that was always in the forefront of my recovery.

VO Tonya Rapley:
Even as a financial educator, I have a secret. I'm not debt free, I'm still paying off my student loans. You can have debt and still have good credit scores as long as you’re still managing that debt.

VO Bruno:
You had an emergency, something happened. First and foremost to me was, let me see if I can bring the bill down at a different clip. So, they are asking for $100, could I call them and say, could we bring this payment down at a different minimum amount and in reality, they could. I just didn't know that.

[ Graphic: Managing Medical Debt ]

Title:
Negotiate with Creditors
Ask Institutions for an adjustment for an adjustment to the proposed bill. They have the ability to lower the cost most times.                       

Title:
Look for 0% Interest Intro Offers
Try to get a 0% interest card to cover a portion of your debt and make those payments within the allotted no cost window.

VO Tonya Rapley:
You're carrying a large balance on your credit card. So maybe you want to take advantage of a sign on account opening bonus but maybe they have zero percent interest for 12 or 18 months, and just transfer a small amount of your credit card balance over to that credit card so that you can pay that aggressively so that you're not paying interest towards it.

Disclaimer:
The information provided is for educational purposes only. Consult with your own advisor before engaging in any transaction.

VO Tonya Rapley:
You just want to calculate how much is going to cost me to transfer this debt? How much am I going to save in interest if I transfer this debt? Does it make sense for me to do this?

[ Graphic – see free counseling from nonprofit partners like the National Foundation for Credit Counseling ]

So that's something to think about. But you want to be strategic about it because you don't just want to, like, transfer the balance over but end up paying more money and transfer fees than you save in interest.

VO Bruno:
I have, it's cheesy, but it's a debt calculator. So when I spend, I literally put like a smiley face on the bottom of the day you hit that minimum or you got very close to only 20% or 10%, you're achieving what you want to do. So I think, leveraging our Better Money Habits website is great. The 8 simple ways to save. Remembering, make it simple, make it realistic, analyze, and it's okay to use your savings when needed.

Title:
8 Simple Ways to Save

  • Record your expenses.
  • Budget for savings.
  • Find ways you can cut your spending.
  • Set saving goals.
  • Decide on your priorities.
  • Pick the right tools.
  • Mae saving automatic.
  • Watch your savings grow.

VO Rachel:
Thank you for steering me in that direction. I'll definitely check out that Better Money Habits site as soon as we’re off this call!

Title:
Rachel’s Takeaways:

VO Tonya Rapley:
Track your time and budget to help manage irregular income as a freelancer.

[ Graphic: Chat Bubble: Track your time and budget to help manage irregular income as a freelancer ]

VO Tonya Rapley:
Research 0% interest offers to help pay down a portion of your debt.

[ Graphic: Chat Bubble: Research 0% interest offers to help pay down a portion of your debt. ]

VO Tonya Rapley:
It is possible to negotiate with creditors to adjust your rate or debt payment plan.

[ Graphic: Chat Bubble: It is possible to negotiate with creditors to adjust your rate or debt payment plan ] Go to BetterMoneyHabits.com for more tools and guidance ]

Title:
Candace meets Courtney
To Discuss:

  • Teaching your Child Financial Literacy
  • Retirement Savings

[ Participants on screen ]

VO Tonya Rapley:
So Candace, this is Courtney. Courtney Prior is a Senior Vice President over at Bank of America, she is a Young Adult Program Manager.

[ Graphic – Chat Bubble: Courtney L. Prior Senior Vice President, Young Adult Program Manager]

VO Courtney:
I too am a mom of a young girl who is just going to be seven, and it’s… it’s a lot to manage yourself and to manage the well being of another, you know, life.

VO Candace:
This whole financial journey is so new to me and I would say within the last year and a half is when I really dug in and took it seriously for my daughter. What can I continue to do that sets her up for success.

[ Graphic – Chat Bubble: Candace Austin, Texas Teaching her daughter financial literacy ]

[ Graphic – How do I teach my child financial literacy? ]

VO Courtney:
For us we definitely have a savings account that we have established for her, and she knows about it. She feels very important that she has her own bank account. We also have piggy banks that she puts money into. We started to do a contribution chart. And I also don't call it a chore chart I call it a contribution chart.

Title:
Teaching Tool: Piggy Banks [ Graphic ]

VO Courtney:
What do you want to do for the house this week? What do you want to do for yourself this week? Those all are ways that kids really learn by being involved.

Title:
Teaching Tool: Contribution Charts [ Graphic ]

VO Tonya Rapley:
I need to give my husband a contribution chart.

VO Courtney:
Nobody has a toolkit for anything right now, like, it's just all learning as we're going, and I really have found value in some of what Better Money Habits has to offer. We have tools and resources to help you prioritize. Retirement should always be a part of your budget plan.

Title:
How to Prioritize Your Savings Goals

  • Create an Emergency Fund
  • Pay Down High – Interest Debt
  • Contribution Towards Your Retirement
  • Save for Short Term Goals
  • Save For Education

[ Graphic BetterMoneyHabits.com for more tools and guidance ]

VO Courtney:
Because when you retire, there's no supplemental way to help your retirement unless you want to get a job in retirement. Students can take out a student loan. When you retire, that's like your nest egg.

[ Graphic – Don’t neglect your retirement savings ]

VO Candace:
So my wheels are already turning because I realize as a parent we think about our kids first, which isn't necessarily a bad thing but we think about our kids first before we think about ourselves.

VO Courtney:
And kind of like when we fly…put your oxygen tank on first and then help others. It's like that same analogy and it's hard because of the mom you're like, I give everything to my baby but give yourself that gift of security.

VO Tonya Rapley:
Right.

VO Candace:
Really, the answer is, the more I invest and do things for my future, truly helps her future.

Title:
Candace Takeaways:

VO Tonya Rapley:
Contribution Charts and Piggy Banks are great tools for teaching children financial literacy.

[ Graphic: Contribution Charts and Piggy Banks are great tools for teaching children financial literacy.]

VO Tonya Rapley:
Don’t neglect your own retirement savings.

[ Graphic: Don’t neglect your own retirement savings.]  Go to BetterMoneyHabits.com for more tools and guidance

[ All Participants on Screen ]                           

VO Tonya Rapley:
Yay! So, we are here, it's a new day. All you guys have all had your individual one on one sessions, we had some really good conversation. How are you guys feeling about this entire experience together?

VO Ahmed:
Learning this stuff and being able to use it and apply it and then share with others, is really like making me excited.

VO Amanda:
And it was nice taking the taboo out of talking about finances not being like “oh, this is a horrible conversation” you know? This is a conversation that's going to help us out in the long run. And it's something we should regularly talk about, and look at.

VO Tonya Rapley: 
Yeah!

VO Andrew:
He advised us to use an Excel sheet for our debts and figure out how much interest is on each and which ones we should pay off first.

VO Rachel:
I love that too.

VO Andrew:
We actually put that together last night. She was driving me crazy about it.

VO Amanda:
He was ready!

VO Chelsey:
You don't always know what you don't know. And so, I am setting up my son's bank account. I can now articulate what it is that I need.

VO Candace:
We talked a little bit about the contribution chart and being able to do that with my daughter. That, it's like such a small thing but I know it will have a huge lasting impact on our relationship as a mom and daughter.

VO Ahmed:
My action item is: look at the skills that you have now, some of your experience in the past and see if you can leverage that to be able to generate some extra income.

VO Tonya Rapley:
One of the things we were talking about for Ahmed in particular was voiceovers, and now listening to him, if I close my eyes, I can so hear him on the radio.

VO Amanda:
I can see it or… hear it! I can hear it

VO Rachel:
I need to create a financial team of people who can advocate for me. Bruno is the very first person that I'm going to add to my team. He talked a lot about making personal connections with people and negotiating a rate that's comfortable for me. If my insurance is too much, I need to talk to a person so that I can negotiate that rate down.

VO Tonya Rapley:
You are all so different, but you're also committed and so optimistic. I feel rejuvenated like when I get off of this I'm gonna go put some more money in my retirement account. I'm so amped up for you guys.

VO Tonya Rapley
Better Money Habits offers a simple way to connect people to relevant tools and guidance to help them take control of their finances. Go to BetterMoneyHabits.com for more tips and resources when planning your financial journey.

Title:
[ Graphic: Better Money Habits offers a simple way to connect people to relevant tools and guidance to help them take control of their finances. Our resources help build know-how around topics like budgeting, saving, debt, credit, homeownership, retirement and more – so people have the power to learn AND take action.]

Take a look yourself at  www.BetterMoneyHabits.com

VO Tonya Rapley:
The way to navigate financial challenges is to communicate with others about these challenges. When you’re ready to talk, go to bankofamerica.com to schedule time to speak with a Bank of America specialist.

Title:
Visit bankofamerica.com to schedule time with a Bank of America specialist.

VO Tonya Rapley:
Thanks to everyone who participated and thanks for watching Better Money Habits: MoneyTalks, brought to you by Bank of America.

Title:
Better Money Habits ® in partnership with Buzzfeed Present
Money Talks
Powered by Bank of America            

[ Graphic – Chat Bubble and Coin ]

Disclaimer:
The views expressed are those of the speaker(s) only and are subject to change. This information is presented for educational purposes only and should not be construed as investment or tax advice or an offer for a financial product or service.

The material provided in this video is for educational and informational purposes only and is not intended as financial or investment advice. Bank of America Corporation and its affiliates assume no liability for any loss or damages resulting from reliance on the material provided.

Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management.

Bank of America, N.A. Member FDIC. Equal Housing Lender.

Title:
Better Money Habits ® in partnership with Buzzfeed Present Money Talks
Powered by Bank of America

[ Graphic – Chat Bubble and Coin ]

Disclaimer:
The views expressed are those of the speaker(s) only and are subject to change.
The information presented is for educational purposes only and should not be construed as investment or tax advice or an offer for a financial product or service.

VO Tonya Rapley:
Hi, I’m Tonya Rapley, entrepreneur and financial educator. And I can say in all honesty, I’ve never seen anything like this.

[ Graphic – Chat Bubble: Tonya Rapley Entrepreneur and Financial Educator
@MyFabFinance ]                                 

VO Rachel:
My income has been disrupted.

VO Candace
Okay, my daughter's at home now, all day, every day.

VO Amanda
& Andrew:
We’ve essentially lost a third of our income… and we don't really know when it's coming back.

[ Graphic – headshots in chat bubbles ]

VO Tonya Rapley:
Which is why we brought together this digital community. A group from around the country with Bank of America specialists, for a series of open and honest conversations.

[ Graphic –MAP and headshots in chat bubbles ]

VO Anthony:
How do I make credit work for me?

VO Marcela:
Don’t get overwhelmed by the numbers.

VO Bruno:
Let me see if I can bring the bill down at a different clip.

VO Courtney:
We have tools to help you understand contribution levels.

VO Andree:
If you fall in love with the process itself, then those sacrifices will pay off in the long run.

[ Graphic – headshots in chat bubbles ]

Title:
Better Money Habits ® in partnership with Buzzfeed Present Money Talks Powered by Bank of America

[ Graphic – Chat Bubble and Coin ]                                 

VO Tonya Rapley:
This is Better Money Habits: Money Talks. Brought to you by Bank of America.

[ Participants on screen ]

Alright, so this is gonna be a money conversation like you guys probably have never had before. We're gonna pair you with specialists from Bank of America, and I would love to learn more about you… Rachel!

VO: Rachel
So yeah I’ve had to take a huge shift.

[ Graphic – Chat Bubble: Rachel Olympia, Washington Paying off Medical Debt ]

I went from teaching in a classroom to teaching on my computer. I went from working five days a week to my only stable income is once a week now, which is scary. Coronavirus is a lot of people’s rainy day and their big emergency.

But for me, I was in a traumatic car accident of January 2019. I was rearended on the freeway. My car flipped over onto its side. Not only do I have the debt I had before, I have medical debt on top of that and it feels really overwhelming. It’s like running a marathon and not knowing where the finish line is.

VO Ahmed:
Yup!

VO Tonya:
Been speaking with a lot of people who are dealing with that, it feels like that.

VO Ahmed:
So we were coming up with a great financial plan, life was looking great and then the pandemic hit.

[ Graphic – Chat Bubble: Ahmed, Chicago, Illinois Job loss and pay for wedding]

[ Graphic: Personal Video ]

My main job as a design engineer, I was asked to take a pay cut, and then I lost my second job as a performer inside the city during nights and we weren’t able to do the show, so I lost a second income entirely as a result of it.

Me and my fiancé were just talking about this last night... weddings are not cheap.

VO Amanda:
No, no!

VO Ahmed:
And we don't know if the wedding is gonna happen any time soon. As our income got disrupted, yeah, we definitely have a look at expenses that just come out, that you don’t even realize. I do want to shout out my fiancé, because she was like, I’m not buying any new clothes for at least a month.

VO Amanda:
Yep!

VO Ahmed:
She just started going on thrift sites. Why do I want to pay full price for something when I might be able to get a deal on it and I thought that was like really savvy.

VO Rachel:
My landlord knows that we're both looking for full time work. And so she's given us a laundry list of things to do. And she says just count your hours I'll pay you $25 an hour and just take it out of rent. We did $400 worth of work for her before we even moved in. So, we were able to take that out of just the first month's rent.

VO Tonya Rapley:
That’s amazing!

VO Amanda:
So we decided to plant a garden and we almost halved our groceries spending.

[ Graphic – Chat Bubble: Amanda & Andrew, Tatamy, Pennsylvania Combining finances and navigating income disruption ]

VO Amanda:
We’re both chefs!

VO Andrew:
We are both chefs.

[ Personal Video ]

VO Amanda:
We like to eat food and make food.We had just bought our new house and then we lost kind of like a third of the income stream coming in so…

VO Andrew:
We do all this budgeting beforehand and you can really never budget for the unexpected.

[ Personal Video ]

VO Amanda:
Making spreadsheets! Really we’re just trying to find all the little hacks to save money. We actually learned how to can as well. We have sauces and vegetables and fruit compotes. And one day we will eat them. Right?

VO Andrew:
We're gonna have to, we have so much of it now.

VO Candace:
Meal prep and meal planning has been the very thing that I think has changed my budget.

[ Graphic – Chat Bubble: Candace Austin, Texas Teaching her daughter financial literacy ]

So something really cool that has happened for us during COVID is that my daughter and I got to move into our own space together, our own apartment. We have never been able to live on our own because I couldn’t do it financially on my own.

[ Personal Video ]

A year and a half ago, I was living paycheck to paycheck. Like there were times where I had to ask friends for gas money. And here we are now a year later. And I’m really excited to change my family tree and break those generational curses and that is such a fun and exciting thing to look forward to for the future for me and my daughter.

VO Tonya Rapley:
Yes! Kudos. So much good has happened.

I know that Chelsey is a new mom.

VO Chelsey:
Hi, I'm Chelsey. I live in Northeast Ohio. So I did not have any maternity leave. Nor did I qualify for FMLA. And my husband did not have any paternity leave. Because both of us are working from home, my husband is able to see our son way more than he would if he was at work hours a day.

[ Graphic – Chat Bubble: Chelsey, Akron, Ohio Home refinancing and childcare ]

This is where we used to eat dinner.

VO Matt:
And now it’s been our workstations.

[ Graphic – Chat Bubble: Matt, Chelsey’s husband ]

[ Personal Video ]

VO Chelsey:
Both of our parents are close to us and there have been times where we’ve asked them to come over and babysit so we could clean our house.

So just taking advantage of people who want to help and not being afraid to ask for that help.

VO Tonya:
Each of you have different goals that you're working towards, different things that you'd like a little more insight on how to navigate during this time. And so what we'll be doing is you'll pair up with a bank specialist to answer any questions that you have and really get a plan of action. And then from there, we will reconvene. And so, does that sound good to you?

Title:
Amanda & Andrew meet Anthony
To Discuss:

  • Determining your Budget
  • Debt Elimination Strategies

[ Participants on screen ]

VO Tonya Rapley:
Amanda and Andrew, you are in for a treat. We have joining us our Bank of America specialist Anthony Dinello. Give Anthony a little run down of what your pressing questions are.

[ Graphic – Chat Bubble: Anthony Dinello BMH Champion, Senior VP of Consumer Banking Market Leader ]                                   

VO Amanda:
We essentially lost a third of our income and it was right around the time we bought this house.

[ Graphic – Chat Bubble: Amanda & Andrew, Tatamy, Pennsylvania Combining finances and navigating income disruption ]

At this point we’ve kind of normalized and kind of stabilized a little bit but we really had to sit down and think about what the wants vs the needs were.

VO Anthony:
I think the first, most important thing is what are the monthly expenses that you have? What are the bills that you have that you can count on having to be responsible for every month. That should be your floor.

[ Graphic – Determining your Budget ]

Now let’s see what money we have left over. And what is our budget going to be for the month?

VO Amanda:
He actually helped me write my first budget in an excel spreadsheet.

VO Anthony:
Glad there’s an excel wizard in the house, that’s always helps to have. An honest mistake or two will happen along the way, so it’s very important that you set up alerts.

I actually have an alert on my phone for every single time a debit card is swiped I get a text message.

VO Amanda:
That’s a good idea. I like the alert thing so that both of us know that the spending would be happening. Keep the communication open!

VO Tonya Rapley:
You know it really helps establish checks and balances because then you’re accountable to someone other than yourself for how you’re spending.

VO Andrew:
I do also have a Bank of America credit card which I love because the system that they have on the backend is really useful for money management. The alerts is something I do have set up on my end and that’s just good to know whenever your card is being used, or whenever your budget is close to being exceeded even if it's 14 dollars under, you know it feels good that you’re within your means of what you’re trying to do that month.

VO Anthony:
You’re gonna probably going to say okay our goal would be to save this much, this month. would have two numbers in mind and I would really strive for that stretch goal and really challenge yourselves because I think you would be surprised, what you’re capable of.

VO Amanda:
It’s like the Chinese food last night. We are close to our eating out budget for the month but last night I was craving Chinese food and he looked at me and was like we’re close to the budget, we can’t get it, so we had leftovers.

VO Tonya Rapley:
Yeah you guys are great.

VO Amanda:
It was good leftovers. I'm glad we did it.

VO Anthony:
There’s a lot of value right, and starting to look at long term, and how much overall you can save when consolidating debt.

[ Graphic – Debt Elimination Strategies]

What type of debt is it? How much do I owe? How much is your minimum monthly payment? And then, what is your interest rate?

[ Graphic – Organize Your Debt in a Spreadsheet ]

VO Tonya Rapley:
For me it’s my favorite spreadsheet, that’s when things are getting done.

VO Andrew:
I think that’s a pretty cool idea. I never thought honestly about doing anything like that.

VO Tonya Rapley:
It allows you to see what your most expensive debt is or what's the smallest balance. It allows you to focus your game plan.

[ Graphic – Debt Elimination Strategies]

VO Anthony:
Some people say start with the biggest balance first, because the more you can knock that down the better. Personally, I like to start with the smallest ones first. That smaller amount you could pay off quickly. It feels good when you get one paid off.

[ Graphic- Chat bubble: Pay highest interest first saves the most money but paying smaller debts first can be motivational to keep going ]

[ Graphic – Debt Elimination Strategies: The snowball effect]

VO Anthony:
And then you have that extra money to go towards the other payments that you have.

VO Andrew:
Until now I didn't really think of it as a bunch of small pieces. I kind of just think of it as this big wall, if we look more at it more of it as like a bunch of bricks on a wall and you're just taking pieces out one at a time. I think it's going to seem manageable.

VO Anthony:
And it will encourage you to continue to do more and more.

VO Andrew:
The first thing we're going to do is make a spreadsheet with our debts and interest.

VO Amanda:
Date night, date night!

VO Andrew:
That’s not a date night!

VO Amanda:
It is! I need it to be fun

VO Tonya Rapley:
It’s a money date!

VO Andrew:
There's no such thing as a finance date night. I mean at least maybe there is now.

Title:
Amanda & Andrews:
Takeaways:

VO Tonya Rapley:
When trying to stick to a budget stretch goals can be highly motivating.

[ Graphic –Chat Bubble: When trying to stick to a budget stretch goals can be highly motivating.]

Organize all of your debt by balance amount and interest rate to help determine the best debt reduction strategy for you.

[ Graphic –Chat Bubble Organize all of your debt by balance amount and interest rate to help determine the best debt reduction strategies. Go to BetterMoneyHabits.com for more tools and guidance. ]

Title:
Chelsey meets Marcella
To Discuss:

  • Deciding on Childcare
  • Savings for Children
  • Home Refinancing

[ Participants on screen ]

VO Tonya Rapley:
And so Chelsey I know that you’re in good hands. We have our bank specialist, Marcella Gallego, I don't think there's anyone more perfect to assist you with your goals.

[ Graphic – Chat Bubble: Marcella Gallego BMH Champion, Senior Vice President, Parents Program Manager ]

VO Chelsey:
So we may need to look into some childcare, and so wondering some different ways that we can budget for that.

[ Graphic – Chat Bubble: Chelsey, Akron, Ohio Home refinancing and childcare ]

VO: Marcela
What worked for me best when I was doing this exercise... was I did a decision tree.

[ Graphic: Deciding on Childcare ]

Writing it down. If I had to go with a nanny, what exactly do I want? If I want to do daycare, what type of daycare? And then budget, and find out how much it will cost you.                            

[ Graphic: Decision Tree ]

VO Marcela:
And we landed on a hybrid option, we do day care in the mornings, and grandma comes in the afternoon.

VO Chelsey:
I never thought about that split.

[ Graphic: Decision Tree ]

VO Marcel:
It allows her to be social, and have fun. But in the afternoons she’s with grandma which is great, and is a little bit cheaper.

VO Chelsey:
How do I set up a bank account for my son?

[ Graphic: How do I set up a bank account for my son?]

VO Marcela:
It is a lot simpler than you think. You have a minor account, which will be joined with you, or you can open an account for them. They are the owner but you are the custodial. You just go to the bank with their social security number and open the account. Voila!

[ Graphic: Chat Bubble -  Joint Savings and Custodial Savings Account ]

VO Marcela:
Once Daniel is becoming a teenager. Now you can open a checking account with him so you can teach him how to use his money.

VO Chelsey:
Long term. College is very important to us. While we don't know what the education system is going to look like in 18 years, or even if he gets a full ride and all of the sudden doesn't need that money, so we don't necessarily want to put money into a pocket that we can't ever get out.

[ Graphic: Options when saving for college ]

VO Marcela:
34% usually comes from financial aid, and parents are usually responsible for 29 to 30% of the bill.

[ Graphic: Chat Bubble -   Financial Aid Chart ] Source: Sallie Mae, How America Pays for College 2016

Don't get overwhelmed by the numbers. Time is on your side, in the sense that you have 18 years, and small amounts consistently over that period, make a huge difference.

Disclaimer:
The information provided is for educational purposes only. Consult with your own advisor before engaging in any transaction.

VO Marcela:
It sounds to me like you need flexible options, and it might be a combination of things. You can have a savings account and a college plan that perhaps has some tax advantages to it.

VO Chelsey:
Ok.

VO Marcela:
So you could do a combination of both. Don't feel that you have to get married with one or the other, because you don't.

VO Chelsey:
We did buy our house, about three and a half years ago. We've been watching the mortgage rates, just plummet. And even though we got a good rate when we originally signed the paperwork. Does it make sense to refinance?

[ Graphic: When is a goodtime to refinance your home? ]

VO Marcela:
Refinancing is basically doing a whole new loan for your house, all over again. So when you first purchase your home, there were some closing costs associated with processing that loan.

Disclaimer:
The information provided is for educational purposes only. Consult with your own advisor before engaging in any transaction.

VO Marcela:
If you are going to save, let's say $200, but the closing cost associated with refinancing the home at $5,000. If you are not going to stay for at least 25 months, then you're not saving any money. Divide the closing costs by the savings that you will obtain, and that tells you how long you will have to be in the property for that to be a cost effective decision.

[ Graphic:  Is refinancing right for you? ]

VO Chelsey:
The easy math problem makes so much sense and makes it a lot more black and white.

Title: 
Chelsey’s Takeaways:

VO Tonya Rapley:
Considering refinancing? Factor closing costs and how long you plan to own your home into the decision.

[ Graphic: Chat Bubble: Considering refinancing? Factor closing costs and how long you plan to own your home into the decision. ]

VO Tonya Rapley:
A decision tree is a helpful tool for making financial decisions, like selecting childcare options.

[ Graphic: Chat Bubble: A decision tree is a helpful tool for making financial decisions, like selecting childcare options.]  Go to BetterMoneyHabits.com for more tools and guidance

Title:
Ahmed meets Andree
To Discuss:

  • Supplementing Lost Income
  • Budgeting for a Wedding

[ Participants on screen ]

VO Tonya Rapley:
And Andree is joining us. Ahmed, Andree is a Better Money Habits Champion. He is one of the Bank of America specialists and so Ahmed, let us know exactly what you hope to glean from these sessions.

[ Graphic – Chat Bubble: Andree Taylor BMH Champion, Senior Production Services Manager ]

VO Ahmed:
Once Coronavirus hit, my primary job asked us to take a 20% pay cut and then my second job lost that income completely.

[ Graphic – Chat Bubble: Ahmed, Chicago, Illinois Job loss and pay for wedding]

VO Andree:
I did notice that you are an actor, right? So, and you taught before...so is there a possibility that you could maybe do some online acting classes? Maybe supplement some of the lost income there? Because that's just a skill that you already have.

[ Graphic – Opportunities to subsidize lost income ]

VO Tonya Rapley:
I like how you think Andree.

VO Ahmed:
Oh yeah, that’s a really good idea.

Tonya Rapley:
My husband who is in production, he'll hire like voiceover actors, using some of these gig hire websites and so forth and he’ll be looking for someone to just do voiceover work. I definitely agree with Andree that that's something to think about is leveraging your understanding of like the voice and voice acting and maybe seeing if you bring in some additional income there.

VO Ahmed:
Me and my fiance Erica had a lot of tough talks in having to scale down our expectations of having a wedding. Trying to plan for the future and make sure that we're in a good strong, solid financial place for us that’s the ultimate goal. Being able to be in a position to make choices rather than sort of make sacrifices.

VO Andree:
And it's funny, you know, I was probably two or three years younger than you when I was married. We really had to take a hard look at our budget and cutting the cost where we could. And if you and your wife are fine with a smaller invite list, also consider maybe an outside venue, also think about music - have your own music. So, those are just some things to consider to help with these fiances as it relates to this wedding.

[ Graphic – Budgeting for a Wedding ]

Title:                          

  • Tips to Reduce Wedding Costs
  • Reduce your invitation list
  • Hold the ceremony outside or at home
  • Look to trunk show discounts or resale sites for the wedding dress
  • Use Digital invitations
  • Provide your own speaker and playlist for music

VO Ahmed:
That sounds good, thank you!

Title:
Ahmed’s
Takeaways:

VO Tonya Rapley:
Leverage your skills and experiences to generate supplemental income.

[ Graphic –Chat Bubble: Leverage your skills and experiences to generate supplemental income]

VO Tonya Rapley:
When budgeting your wedding, look for ways to keep costs at an amount that’s comfortable for you.

[ Graphic –Chat Bubble: When budgeting your wedding, look for ways to keep costs at an amount that’s comfortable for you ]  Go to BetterMoneyHabits.com for more tools and guidance

Title:
Rachel meets Bruno

To Discuss:

  • Managing Inconsistent Income
  • Paying off Medical Debt
  • Leveraging 0% Introductory Offers

[ Participants on screen ]

VO Tonya Rapley:
Rachel, we are joined by Burno Figueiredo. So, Bruno is a Better Money Habits Champion with Bank of America. And Rachel, I think that you can do a better job at really painting the picture for Bruno, letting him know how your personal emergency kind of kicked off and where you are today.

[ Graphic – Chat Bubble: Burno Figueiredo BMH Champion, Small Business Consultant Manager ]

VO Rachel:
Yeah, absolutely, Coronavirus has been traumatic for so many people and kind of exposed, what their rainy day funds look like. My personal emergency, my rainy day, happened in January of 2019. I was rear ended, and it flipped my car over onto its passenger side. So what I'm really looking forward to diving into with you today is just how I can balance, keeping myself healthy, and keeping my bank account healthy too.

[ Graphic – Chat Bubble: Rachel Olympia, Washington Paying off Medical Debt ]

VO Rachel:
My income has been disrupted. I don't have a consistent number coming in and every single month that changes in that inconsistent way, how do we plan for our future?

[ Graphic: Planning for the future with inconsistent income ]

VO Bruno:
We have freelancing resources to track time, budget, taxes. And then even moving into a business aspect and understanding the difference between an LLC and a sole proprietor or corporation. I always recommend going back to an accountant and finding out if it is right for you at certain points, and I think what's important to you based on your income is inconsistent, you still have to pay the medical debt.

Title:
Tips for Freelancer

  • Track your time
  • Factor irregular paychecks into your budget
  • Talk to an account about tax strategy

Disclaimer:
The information provided is for educational purposes only. Consult with your own advisor before engaging in any transaction.

VO Rachel:
Yeah, yeah.

VO Bruno:
A year ago my wife was diagnosed with breast cancer. We think medical debt is a bad thing but it's not. It's a good thing because it's the way we move her health forward.

VO Rachel:
That's a huge relief, and if I had heard that sentence a year ago, my recovery probably would have been so different, because that was always in the forefront of my recovery.

VO Tonya Rapley:
Even as a financial educator, I have a secret. I'm not debt free, I'm still paying off my student loans. You can have debt and still have good credit scores as long as you’re still managing that debt.

VO Bruno:
You had an emergency, something happened. First and foremost to me was, let me see if I can bring the bill down at a different clip. So, they are asking for $100, could I call them and say, could we bring this payment down at a different minimum amount and in reality, they could. I just didn't know that.

[ Graphic: Managing Medical Debt ]

Title:
Negotiate with Creditors
Ask Institutions for an adjustment for an adjustment to the proposed bill. They have the ability to lower the cost most times.                       

Title:
Look for 0% Interest Intro Offers
Try to get a 0% interest card to cover a portion of your debt and make those payments within the allotted no cost window.

VO Tonya Rapley:
You're carrying a large balance on your credit card. So maybe you want to take advantage of a sign on account opening bonus but maybe they have zero percent interest for 12 or 18 months, and just transfer a small amount of your credit card balance over to that credit card so that you can pay that aggressively so that you're not paying interest towards it.

Disclaimer:
The information provided is for educational purposes only. Consult with your own advisor before engaging in any transaction.

VO Tonya Rapley:
You just want to calculate how much is going to cost me to transfer this debt? How much am I going to save in interest if I transfer this debt? Does it make sense for me to do this?

[ Graphic – see free counseling from nonprofit partners like the National Foundation for Credit Counseling ]

So that's something to think about. But you want to be strategic about it because you don't just want to, like, transfer the balance over but end up paying more money and transfer fees than you save in interest.

VO Bruno:
I have, it's cheesy, but it's a debt calculator. So when I spend, I literally put like a smiley face on the bottom of the day you hit that minimum or you got very close to only 20% or 10%, you're achieving what you want to do. So I think, leveraging our Better Money Habits website is great. The 8 simple ways to save. Remembering, make it simple, make it realistic, analyze, and it's okay to use your savings when needed.

Title:
8 Simple Ways to Save

  • Record your expenses.
  • Budget for savings.
  • Find ways you can cut your spending.
  • Set saving goals.
  • Decide on your priorities.
  • Pick the right tools.
  • Mae saving automatic.
  • Watch your savings grow.

VO Rachel:
Thank you for steering me in that direction. I'll definitely check out that Better Money Habits site as soon as we’re off this call!

Title:
Rachel’s Takeaways:

VO Tonya Rapley:
Track your time and budget to help manage irregular income as a freelancer.

[ Graphic: Chat Bubble: Track your time and budget to help manage irregular income as a freelancer ]

VO Tonya Rapley:
Research 0% interest offers to help pay down a portion of your debt.

[ Graphic: Chat Bubble: Research 0% interest offers to help pay down a portion of your debt. ]

VO Tonya Rapley:
It is possible to negotiate with creditors to adjust your rate or debt payment plan.

[ Graphic: Chat Bubble: It is possible to negotiate with creditors to adjust your rate or debt payment plan ] Go to BetterMoneyHabits.com for more tools and guidance ]

Title:
Candace meets Courtney
To Discuss:

  • Teaching your Child Financial Literacy
  • Retirement Savings

[ Participants on screen ]

VO Tonya Rapley:
So Candace, this is Courtney. Courtney Prior is a Senior Vice President over at Bank of America, she is a Young Adult Program Manager.

[ Graphic – Chat Bubble: Courtney L. Prior Senior Vice President, Young Adult Program Manager]

VO Courtney:
I too am a mom of a young girl who is just going to be seven, and it’s… it’s a lot to manage yourself and to manage the well being of another, you know, life.

VO Candace:
This whole financial journey is so new to me and I would say within the last year and a half is when I really dug in and took it seriously for my daughter. What can I continue to do that sets her up for success.

[ Graphic – Chat Bubble: Candace Austin, Texas Teaching her daughter financial literacy ]

[ Graphic – How do I teach my child financial literacy? ]

VO Courtney:
For us we definitely have a savings account that we have established for her, and she knows about it. She feels very important that she has her own bank account. We also have piggy banks that she puts money into. We started to do a contribution chart. And I also don't call it a chore chart I call it a contribution chart.

Title:
Teaching Tool: Piggy Banks [ Graphic ]

VO Courtney:
What do you want to do for the house this week? What do you want to do for yourself this week? Those all are ways that kids really learn by being involved.

Title:
Teaching Tool: Contribution Charts [ Graphic ]

VO Tonya Rapley:
I need to give my husband a contribution chart.

VO Courtney:
Nobody has a toolkit for anything right now, like, it's just all learning as we're going, and I really have found value in some of what Better Money Habits has to offer. We have tools and resources to help you prioritize. Retirement should always be a part of your budget plan.

Title:
How to Prioritize Your Savings Goals

  • Create an Emergency Fund
  • Pay Down High – Interest Debt
  • Contribution Towards Your Retirement
  • Save for Short Term Goals
  • Save For Education

[ Graphic BetterMoneyHabits.com for more tools and guidance ]

VO Courtney:
Because when you retire, there's no supplemental way to help your retirement unless you want to get a job in retirement. Students can take out a student loan. When you retire, that's like your nest egg.

[ Graphic – Don’t neglect your retirement savings ]

VO Candace:
So my wheels are already turning because I realize as a parent we think about our kids first, which isn't necessarily a bad thing but we think about our kids first before we think about ourselves.

VO Courtney:
And kind of like when we fly…put your oxygen tank on first and then help others. It's like that same analogy and it's hard because of the mom you're like, I give everything to my baby but give yourself that gift of security.

VO Tonya Rapley:
Right.

VO Candace:
Really, the answer is, the more I invest and do things for my future, truly helps her future.

Title:
Candace Takeaways:

VO Tonya Rapley:
Contribution Charts and Piggy Banks are great tools for teaching children financial literacy.

[ Graphic: Contribution Charts and Piggy Banks are great tools for teaching children financial literacy.]

VO Tonya Rapley:
Don’t neglect your own retirement savings.

[ Graphic: Don’t neglect your own retirement savings.]  Go to BetterMoneyHabits.com for more tools and guidance

[ All Participants on Screen ]                           

VO Tonya Rapley:
Yay! So, we are here, it's a new day. All you guys have all had your individual one on one sessions, we had some really good conversation. How are you guys feeling about this entire experience together?

VO Ahmed:
Learning this stuff and being able to use it and apply it and then share with others, is really like making me excited.

VO Amanda:
And it was nice taking the taboo out of talking about finances not being like “oh, this is a horrible conversation” you know? This is a conversation that's going to help us out in the long run. And it's something we should regularly talk about, and look at.

VO Tonya Rapley: 
Yeah!

VO Andrew:
He advised us to use an Excel sheet for our debts and figure out how much interest is on each and which ones we should pay off first.

VO Rachel:
I love that too.

VO Andrew:
We actually put that together last night. She was driving me crazy about it.

VO Amanda:
He was ready!

VO Chelsey:
You don't always know what you don't know. And so, I am setting up my son's bank account. I can now articulate what it is that I need.

VO Candace:
We talked a little bit about the contribution chart and being able to do that with my daughter. That, it's like such a small thing but I know it will have a huge lasting impact on our relationship as a mom and daughter.

VO Ahmed:
My action item is: look at the skills that you have now, some of your experience in the past and see if you can leverage that to be able to generate some extra income.

VO Tonya Rapley:
One of the things we were talking about for Ahmed in particular was voiceovers, and now listening to him, if I close my eyes, I can so hear him on the radio.

VO Amanda:
I can see it or… hear it! I can hear it

VO Rachel:
I need to create a financial team of people who can advocate for me. Bruno is the very first person that I'm going to add to my team. He talked a lot about making personal connections with people and negotiating a rate that's comfortable for me. If my insurance is too much, I need to talk to a person so that I can negotiate that rate down.

VO Tonya Rapley:
You are all so different, but you're also committed and so optimistic. I feel rejuvenated like when I get off of this I'm gonna go put some more money in my retirement account. I'm so amped up for you guys.

VO Tonya Rapley
Better Money Habits offers a simple way to connect people to relevant tools and guidance to help them take control of their finances. Go to BetterMoneyHabits.com for more tips and resources when planning your financial journey.

Title:
[ Graphic: Better Money Habits offers a simple way to connect people to relevant tools and guidance to help them take control of their finances. Our resources help build know-how around topics like budgeting, saving, debt, credit, homeownership, retirement and more – so people have the power to learn AND take action.]

Take a look yourself at  www.BetterMoneyHabits.com

VO Tonya Rapley:
The way to navigate financial challenges is to communicate with others about these challenges. When you’re ready to talk, go to bankofamerica.com to schedule time to speak with a Bank of America specialist.

Title:
Visit bankofamerica.com to schedule time with a Bank of America specialist.

VO Tonya Rapley:
Thanks to everyone who participated and thanks for watching Better Money Habits: MoneyTalks, brought to you by Bank of America.

Title:
Better Money Habits ® in partnership with Buzzfeed Present
Money Talks
Powered by Bank of America            

[ Graphic – Chat Bubble and Coin ]

Disclaimer:
The views expressed are those of the speaker(s) only and are subject to change. This information is presented for educational purposes only and should not be construed as investment or tax advice or an offer for a financial product or service.

The material provided in this video is for educational and informational purposes only and is not intended as financial or investment advice. Bank of America Corporation and its affiliates assume no liability for any loss or damages resulting from reliance on the material provided.

Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management.

Bank of America, N.A. Member FDIC. Equal Housing Lender.

We’re all experiencing this moment in time, together. We are all facing new financial challenges and hurdles.

—Tonya Rapley, host

No matter what this year or the next one brings, we’re here to help with your financial challenges. Better Money Habits has resources to help manage your household finances, save more of your money, deal with major financial impact, and more.

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