Understanding the rules of money is important when it comes to buying a home, getting an education, a car or a secure retirement. We want to help you better understand how the budget, save, invest, borrow and spend wisely. This will enable you to more readily achieve your financial goals.

Money Rules is a program aimed at helping you become more savvy about your finances. We want to share useful financial information with you, and offer financial tips on subjects like budgeting, using credit wisely and achieving your savings goal.

Of course, if you would like to get answers to your financial questions, your community banker is always ready to listen.

• Recent studies show the need for improving the financial skills of Americans. In one test of financial knowledge, adults scored 57 percent on average and high school students scored 51 percent. How well do you know your financial ABCs? For instance, do you know that:
• Revolving or unsecured loans, such as credit cards loans, carry a higher interest rate than car, home equity and mortgage loans.
• When shopping for a credit card you should evaluate all fees, as well as both the introductory and regular interest rate.
• If you make only minimum payments on your credit card, you man never pay off the debt. Try to set up a payment calendar and work toward paying off your balance.
• Ideally, you should be saving some percentage of your annual income for retirement.
• In many cases, it will take 80 percent of your pre-retirement income to maintain your current lifestyle in retirement.
• Being denied credit for no apparent reason or having routine financial statements stop arriving on time may mean you’re an identity theft victim.
• A checking account with your local community bank may help you save money be avoiding costly check cashing firms, and also by making it easier for you to itemize and budget.
• Your income, debt ratio and credit rating are all factors that will be considered when you apply for a mortgage loan.
• A minimum of three months income should be set aside for such emergencies as illness or job loss.
• Experts recommend emergency funds not be kept in stocks, but rather insured savings accounts, money market accounts and certificates of deposit.

For More Information

Talk to your community banker. You can also check out the following online resources:

www.asec.org. The American Savings Education Council offers aid with retirement planning, saving, and a retirement calculator for your use.

www.fdic.gov. The Federal Deposit Insurance Corporation offers Money Smart, a free, comprehensive financial literacy curriculum available in English and Spanish.

www.chicagofed.org. The Federal Reserve Bank of Chicago's website features Project Money Smart, which is designed to help consumers make good choices about their personal finances.

www.consumer.gov/idtheft. The Federal Trade Commission offers tips on how to avoid identity theft and what to do if you get stung.

www.hud.gov. The Department of Housing and Urban Development offers a number of publications to assist consumers in the homeownership process. Materials are available in English or Spanish.

www.jumpstartcoalition.org. The Jump$tart Coalition for Personal Financial Literacy seeks to improve the personal financial literacy of young adults.

www.nfcc.org. The National Foundation for Credit Counseling has tips for what to do if you find yourself in financial hot water, and also provides credit report examples.

www.operationhope.org. Operation HOPE, a national non-profit self-help organization, seeks to bring economic self-sufficiency and a sustained spirit of revitalization to America's inner city communities.