Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Freedom Financial Network Suggests New Grads Build Good Credit With Financial Literacy
  • USA - English


News provided by

Freedom Financial Network, LLC

May 13, 2014, 03:00 ET

Share this article

Share toX

Share this article

Share toX


San Mateo, CA (PRWEB) May 13, 2014 -- It’s graduation season, and many young adults are entering the job market already in debt and burdened with student loans – but with some savvy planning, they can plant the seeds for a healthy financial future, says Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network (FFN).

For graduates, saving is key, paying off debt is essential, and great experiences don’t have to be costly.

Post this

Of 2012 college graduates, 71 percent had student loan debt, with a total amount borrowed averaging $29,400, according to the Institute for College Access & Success. This year’s class is unlikely to fare better. Many graduates and their families also have credit card debt attributed to educational costs.

“Many students grew up imagining that graduation from college would equal freedom and unlimited spending power,” Gallegos said. “Of course, the reality is quite different, but those who follow up their education with some smart credentials in Personal Finance 101 can step onto the path toward a bright financial future.”

Many Americans – including graduates – lack important money-management skills. Nearly 20 percent of consumers spend more than they earn, and only 40 percent have funds set aside for emergencies.

New graduates can take this quiz to see if they are earning A’s in money management – or learn where they need to hone their skills if they aren’t quite prepared for real life yet.

1. What percentage of income should people save for retirement during their 20s?
a. Between 10 and 20 percent
b. At least 30 percent
c. As much as possible

Answer: C. Most young people find it’s difficult to eke out something to save for retirement. But saving at a young age can make all the difference in retirement lifestyle. “Ultimately, anything you save now will really add up,” Gallegos said. “And if you don’t take advantage of a retirement plan where your employer matches your contributions, you are passing up part of your salary.” At a minimum, everyone should strive to contribute enough to receive the maximum employer match.

2. Five factors make up credit scores. Which accounts for the largest portion (35 percent) of the score?
a. Total outstanding debt
b. Length of credit history
c. Types of credit (credit cards, loans, etc.)
d. New credit
e. Payment history

Answer: E. Lenders want to know whether a borrower pays bills on time. All of the listed factors do contribute to the total score, determined by complex formulas. The credit bureaus assign a credit score between 300 and 850 to each record. A score above 700 will help get better interest rates on loans and credit cards.

3. How long does negative information stay on a credit report?
a. 3 years
b. 7 years
c. Forever

Answer: B. Foreclosures, late payments and debts sent to collection agencies remain on the credit report for seven years. Chapter 7 bankruptcies remain for 10 years. However, the more years that pass after a negative event, the better. For instance, a late payment that happened four years ago is less damaging to a credit score than one that happened four months ago.

4. How much should a person charge on a credit card each month?
a. Enough to make ends meet
b. Just a little something to keep the cards open
c. Whatever can be paid off

Answer: B and C. Handling credit and debit cards can be challenging. Credit cards can be valuable tools for building a credit history, which will be a good thing when it’s time to buy a home or make another major purchase. Making small purchases, and paying them off in full, on time, each month, can help build a credit history. However, cards are easy to abuse. “With rules limiting credit cards for students, some graduates don’t have much experience with them,” Gallegos noted. “The best tactic is to treat credit cards like debit cards. Each time you make a purchase, subtract the charge from your checkbook balance so you know you can pay off the whole bill at month’s end.”

5. What percentage of income should go to housing costs?
a. 10 percent of gross income
b. 25 percent of gross income
c. Less than 45 percent of gross income

Answer: B. The general rule of thumb is that, whether renting or buying, housing costs should not exceed 30 percent of gross income. Keeping it to 25 percent is the smartest move. “In this case, less is more,” Gallegos said. “Many grads live at home or with roommates, and apply the money they are saving to cutting debt, contributing to retirement, or building an emergency fund. Making that sacrifice while you are young and flexible can pay off big in the future.”

For any graduate, saving is key, paying off debt is essential, and great experiences don’t have to be costly, Gallegos pointed out. For more financial tips for new graduates, editors can get in touch with Kevin Gallegos via Aimee Bennett at aimee (at) faganbusinesscommunications (dot) com.

Freedom Financial Network (http://www.freedomfinancialnetwork.com)

Freedom Financial Network, LLC (FFN), provides comprehensive consumer credit advocacy services. Through the FFN family of companies – Freedom Debt Relief, Freedom Tax Relief, ConsolidationPlus, FreedomPlus and Bills.com – FFN works as an independent advocate to provide comprehensive financial solutions, including debt consolidation, debt resolution, debt settlement and tax resolution services for consumers struggling with debt. The company, which has resolved more than $2.7 billion in debt and assisted more than 265,000 clients since 2002, is an accredited member of the American Fair Credit Council, and a platinum member of the International Association of Professional Debt Arbitrators.

Based in San Mateo, Calif., FFN also operates an office in Tempe, Ariz. The company, with more than 600 employees, was voted one of the best places to work in the San Francisco Bay area in 2008, 2009, 2012 and 2013, and in the Phoenix area in 2008, 2009, 2010, 2012 and 2013. FFN’s founders are recipients of the Northern California Ernst & Young Entrepreneur of the Year Award.

(end)

Aimee Bennett, Freedom Financial Network, LLC, http://www.freedomfinancialnetwork.com, +1 303-843-9840, [email protected]

Modal title

Kevin Gallegos of Freedom Financial Network
Kevin Gallegos of Freedom Financial Network
Freedom Financial Network Budget Guide
View PDF
Freedom Financial Network Budget Guide
Kevin Gallegos of Freedom Financial Network Freedom Financial Network Budget Guide

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.