Hello, and thanks for joining. My name is Nelson Santos and I'm a Senior Employee Education Advisor with PNC Bank. In this webinar, we're diving into the “Basics of Money Management”.

Most of us can agree that it's important to have our finances in order, but the data shows why it's urgent. In a recent national survey, about 28% of Americans reported having less than a thousand dollars in savings, and the Federal Reserve reports that 37% would need to borrow, sell something or or might not be able to cover a $400 surprise bill at all.

So, my goal in this session is to keep things simple, relatable, and actionable, and to provide you with tools that can help you manage your money with more confidence and less stress. To accomplish this, we'll move through these five key sections.

How we think about money, setting financial goals, control spending and reduce debt, develop a budget, and save for retirement. Let's jump in by looking at something we don't always talk about, how we think about money.

We all develop beliefs about money early in life, often from family, culture, or what we saw growing up. Some people live in a Scarcity Mindset, always feeling like there's never enough. Others lean toward an Abundance Mindset, the belief that there are sufficient resources, opportunities, and success for everyone. Then there's the Status Mindset, where spending becomes tied to identity and the Security Mindset, where stability is the focus. If managing money feels hard, you're not alone.

Life is expensive, emergencies happen, and emotions absolutely play a role in spending. Debt, unexpected bills, and rising costs make it even tougher. The important thing is recognizing these challenges so you can plan around them, not feel blindsided by them.

Managing money well isn't about restriction. It's about freedom. Better money habits reduce stress, help you make clear decisions, and give you greater stability. You also put yourself in a stronger position to hit goals and improve your credit over time.

Small improvements compound quickly. Here are a few easy ways to improve your financial mindset. First, refrain budgeting from cutting back to choosing where my money goes. Remember, mistakes happen. Adjustments are normal.

Automate savings where possible. It reduces decision fatigue. Before buying something, ask yourself, "does this align with the life on building?", and of course, give yourself clear goals to work toward. These small shifts can reduce stress and create better habits.

Now that we've explored mindset, let's shift into something more concrete. The next step in getting your finances in order is setting financial goals. Before you can improve your finances, you need clarity about what you're trying to achieve.

Once you know the goal, big or small, you can create a plan and follow through. Even the act of naming the goal makes it more achievable. The smart goal framework can help you here. Be specific, measurable, attainable, relevant and time bound. This framework brings clarity and structure, which increases your odds of success. Let's go over each part. A general goal like I want to save money is too vague. Be specific. Instead say,

"I want to save $1,000 for a weekend trip", which gives you direction. Measurable means you know exactly how you're tracking progress, like setting aside a $100 per month for ten months. Attainable means it's realistic for your current situation. Perhaps cutting back on eating out or discretionary spending and shifting that money toward your goal is needed until you reach it.

Relevant means the goal actually matters to you, like saving for a trip to visit loved ones. Time-bound keeps you focused with a clear deadline. Set a date by when you plan to meet your goal. Smart goals make your financial plan real, not just a wish.

It's also important to set your goals by how long they'll take to accomplish and by their priority. Short term goals are those that you can reach within a year such as paying off a small debt or saving for a purchase.

Midterm goals typically take one to five years, like buying a car or building an emergency fund. Long term goals extend beyond five years, such as saving for retirement, purchasing a home, or making a major investment.

Categorize your goals, prioritize them, and then create a plan to achieve them. While individual financial goals may differ, there is one goal that every financial expert agrees on, building an emergency fund.

A rainy-day fund can help you manage a crisis without disrupting your long-term plans or forcing you to dip into your retirement savings. This is especially important when you consider what I mentioned at the beginning of the presentation that the Federal Reserve reported 37% of adults might not be able to cover a $400 surprise bill. Even small consistent contributions can help you build that cushion over time. What matters most is getting started and making it a priority. When you set financial goals, it's not enough to just write them down. You also need a plan for how you'll stay on track.

Here are four key habits that make your goals more achievable. Keep track of your progress. Regularly reviewing your goals helps you stay aware of how far you've come and what still needs attention. Whether you check in weekly or monthly, tracking your progress allows you to celebrate wins, adjust your plan when life changes and stay motivated over time. Plan for common challenges. Unexpected expenses, changes in income, and shifting priorities can all derail your goals if you're not prepared.

Thinking ahead about potential obstacles and deciding how you'll handle them, make sure your goals are more resilient. Even something simple like setting aside a small buffer can help you stay on track when surprises pop up. Talk about your goals.

Sharing your goals with someone you trust can create accountability and encouragement. Whether it's a partner, friend, or a financial professional, talking about what you want to achieve helps you keep your goals top of mind and gives you support when you need motivation or an outside perspective.

Keep a positive outlook. Financial progress isn't always linear. There will be setbacks, slow periods, and time when life gets in the way. Maintaining a positive mindset helps you stay focused on long term progress rather than short term frustrations.

Consistency matters more than perfection. Together, these habits transform financial goals from ideas into real achievable outcomes. Now let's connect your goals to daily habits, specifically controlling spending and managing debt.

And I truly believe in the saying, "it's not how much you make, but how much you spend", because even if someone earns $1 million a year, spending $1.1 million will still lead to financial distress. But how can you end up spending more than you earn?

The culprit is credit. Now, don't get me wrong, there is good debt, and there's bad debt. Getting a degree or purchasing a home might not be possible without using credit, and those can be smart, long-term investments. However, charging too many wants or indulgences to your credit cards, or choosing an expensive car when a more economical option would do, can quickly turn into bad debt and create financial strain.

As I just mentioned, credit used wisely can help you finance an education or purchase a home. But when it comes to credit cards, it's important to be selective. Choose cards with the lowest interest rates possible and with no annual fees.

Always pay on time and try not to carry a balance whenever you can avoid it. If you already have credit card debt, set up auto pay so you never miss a payment and make sure you understand the cards terms, especially what happens if you pay late.

And if you're working to reduce existing credit card debt, try implementing one of the following strategies. The Snowball Method focuses on paying off your smallest debt first as quickly as possible and then rolling that payment into your next smallest debt. The advantage of this method is the boost in motivation.

Seeing quick wins can help you stay engaged and committed. The downside is that you may end up paying more in interest over time since larger, higher interest debts are paid later. The Avalanche Method addresses that issue. It prioritizes paying off the debts with the highest interest rates first. This approach typically saves more money overall and may help you eliminate your debt faster.

The challenge, however, is that it can take longer to see noticeable progress, which may make it harder to stay motivated. Now it's time to test your knowledge about current spending trends. The average American household carries what amount in credit card debt?

A: $4,969

B: $5,854

C: $6,735.

If you answered C, you are correct. By the way, I ran the numbers and to pay off that balance in five years.

The monthly payment would need to be almost $200, which is not a small amount. And at the current average credit card rate of 25.35%, you would end up paying a whopping $5,208 in interest over that time. That's a lot of money that could be going toward your goals.

Okay, similar question. But this time, what is the average American auto loan balance? Is it A: $22,845, B: $27,128, or C: $32,491? If you answered B, you are correct. Now, for this one I didn't run the calculation because auto loan rates depend on several factors, but one thing is certain - The higher the balance, the more you'll pay an interest. And honestly, a Toyota will get you to the same destination as your Mercedes Benz, just saying.

When it comes to revolving credit, you should only keep the credit accounts you truly need. Of course, you'll want to pay on time not only to avoid costly late charges, but also because late payments often trigger penalty interest rates that make your debt even more expensive. Paying down debt as quickly as possible is important and it's much easier to. To do when your debt is consolidated onto fewer accounts rather than spread across multiple credit cards.

While we're on the subject of credit, it's also essential to keep an eye on your credit report. Two great resources you can use are myfico.com, which explains what factors make up your credit score, and I'll touch on those in the next slide and annualcreditreport.com, where you can access your credit report for free once every 12 months. Keep in mind that this site provides your report, not your score. Now include your score for free through their online website, so check there first before and paying for it.

Regularly checking your credit report is more important than ever be before because of the rise in fraud, which is expected only to continue to rise. It can take time to fix fraudulent activity, and the last thing you want is to discover a damaged credit score right when you're preparing to make a major purchase. Credit scores range from 300 to 900 and as you can see the book of the score about 80% is influenced by your payment history, the length of your credit history, and your outstanding balances. To put things into perspective, most lenders and loan types require a minimum credit score of around 640 to qualify for a mortgage.

However, having a higher score significantly improves your chances of approval and often results in a better interest rate. Having good credit is essential because it opens doors, whether that's qualifying for a loan, securing a lower interest rate, or simply giving you more financial flexibility when you need it most. Strong credit can save you thousands of dollars over time, which frees up money for the goals that matter to you.

Now that we've covered why maintaining good credit is so important, let's shift into the next major step in money management. And budgeting is that next crucial step in the process because it allows you to clearly see what's coming in and where it's going.

We learned in section two that your goals need to be specific. Focus on the most important ones first and figure out exactly how much you need to save to reach them. For example, if you're aiming to save $20,000 for a home down payment, you would need to put away about $555 per month for 36 months.

Now, here's the part I want you to really think about. Remember when I tested your knowledge about current spending trends and the credit card example from earlier? The $5,208 paid in interest alone on that balance could have put you more than a quarter of the way towards that down payment goal. That's the power of being intentional with your money. Every dollar you're not losing to interest is a dollar that can move you closer to the life you want. So, here's some homework for those of you who don't already have one. Make a budget. A budget helps you visualize how much you're spending and where your money is going.

One common approach is the line-item budget, which groups expenses into categories and makes it easier to see where you can cut back. All you need is a list of your income, your expenses, and a simple spreadsheet. Another popular method is the 50/30/20 budget.

Spend 50% on needs, 30% on wants, and 20% saving or paying down debt. You can also try the envelope system where you decide how much you will spend in each category and allocate that amount to designated envelopes. While physical envelopes may feel old school, many banks now let you create virtual sub accounts that work the same way. Or you can use a hybrid approach combining elements of different budgeting styles into whatever way works best for you.

Now that we've talked about different budgeting approaches, I want to show you a tool that can make this process even easier. And that tool is this exact budget calculator which will automatically add up all your expenses for you. You can find it at pnc.com.

Just go to our website, click on the search bar, and type Budget Calculator. There you'll find this tool along with several others including an emergency fund calculator and a retirement calculator or just scan the QR code on the screen and it will take you directly to the page.

These tools make budgeting much easier and are only a few clicks away. And of course, there are plenty of budgeting apps available on your phone's app stores that can also help track and manage your spending. Once you have your budget, your goal amounts, and a clear idea of where you can cut back, you can start building your spending plan. Total income minus your monthly saving goals and total monthly expenses will show you how much extra you can put toward long term goals, specifically retirement. And saving for retirement is critical because the earlier you start, the more time your money has to grow.

But to make the most of those dollars, you need the right tool for the job. That's where your employer's retirement plan comes into play. The final and certainly not least important step in putting yourself in strong financial shape.

Think of retirement savings as a monthly view bill you pay to your future self. And while it is important to start saving as early as possible, don't get discouraged if you got a late start. Having a small nest egg is still far better than not having one at all.

Look for opportunities to increase your contributions such as when you get a raise or when you finish paying off a credit card or loan. And finally, consider using the 1% method where you challenge yourself to raise your contribution by just 1% each year often on an anniversary date like your hire date or your birthday. One of the great features of an employer retirement plan is the tax benefit it provides. This slide shows how contributing to a retirement account when using the Pre-Tax option less you save more while feeling it less. Because the contribution comes out before taxes are calculated. In this example, we have two employees, one participates in the plan and the other does not. Employee B contributes $92 to the retirement plan, but only $83 comes out of the paycheck. That difference is thanks to the tax savings that comes with Pre-Tax contributions.

Now it's important to note that if your plan offers a Roth option, you won't get this upfront tax break. If you contribute $92 to the Roth account, the full $92 is deducted from your paycheck. But the tradeoff is powerful. In retirement, your withdrawals are completely tax free. Either way, you benefit. It just depends on whether you prefer the tax advantage now or later. Now that we've seen how Pre-Tax contributions can lower your taxable income, let's quickly walk through the basic steps for getting started with your employer's retirement plan.

Decide how much to save. If your employer offers a match, try to contribute at least enough to get the full match, because that's essentially free money added to your retirement savings. From there, increase your contributions as you're able to.

Then select the investments that align with your comfort level and long-term goals. And finally, check in on your account from time to time to make sure you're staying on track and making adjustments as life changes. The key is to start where you are and build from there.

Consistency is what makes your retirement savings grow. Now that we've covered the foundations, here's where it all comes together. Taking control of your finances isn't about making huge changes overnight. It's about making small consistent steps that move you forward. Start by creating your financial goals and choosing a budgeting method that works for you. Track your spending so you can see where your money is actually going and make adjustments as needed. If you're enrolled in your employer retirement plan, look for opportunities to increase your contributions a little each year, even 1% makes a meaningful difference over time.

And most importantly, stay flexible. Life changes and your financial plan should adapt with it. What matters is that you keep moving forward. Thanks for spending time today learning about the Basics of Money Management. I hope you found this presentation helpful and that it gives you the confidence to take the next steps toward improving your financial well-being. Remember, progress beats perfection.