Discuss areas in which improvement should/could be made.

he actual Personal Cash Flow Statement, and the Personal/Household Budget, which were assigned in Module 1, are due with this Module 3 SLP.SLP Assignment instructionsIn a three- to four-page narrative, including a cover page, develop a Personal Cash Flow analysis:Review and discuss your Actual Personal Cash Flow Statement.Discuss strong points.Discuss areas in which improvement should/could be made.Review and discuss your Personal Cash Flow Budget.Identify and discuss areas of the budget where you made changes from the Cash Flow Statement to improve your cash flow (e.g., reduce credit card debt/payments) in your attempt to bring your disposable income (in your Budget) to 5% to 10% of your total take home income.Discuss the meaning of having your disposable income (in your Budget) equal to 5% to 10% of your total take-home income.Remember that the detailed explanation of these statements is in Module 1.Upload the following files to the Module 3 SLP Dropbox:Your Actual Personal Cash Flow Statement.Your Personal Cash Flow Budget.Your three- to four-page narrative.SLP Assignment ExpectationsYour Module 3 SLP narrative must be three to four pages, including a cover page. You do not need to include in-text citations or a references page in this assignment. Of course, each of the items requested in sections 1, 2, and 3 will be assessed.Obtain a great basic explanation of a credit score and a credit report at:Your Credit Score and Credit Report ExplainedObtain a free credit score from: https://www.freecreditscore.com/Obtain a free credit report from: www.annualcreditreport.comObtain a quick How to introduction for managing your credit from: Managing CreditFind out the basics of borrowing at: Borrowing BasicsLearn about the Free Application for Federal Student Aid (FAFSA)Required ReadingBe sure to read, study, and take notes on each section, including the linked sites.Managing credit is much more than simply getting a loan and making payments on that loan. Managing credit starts with living a responsible life, and in this module you will learn why and how a responsible life will assist you in managing your credit. Living a responsible life [in part] means spending within your means, minimizing the amount of credit you incur, and paying your bills on time.You will discover in this module that those attributes will build your credit report, resulting in a high FICO score, which results in your ability to obtain credit/loans at relatively low [for the times] interest rates. Finally, in this unit, you will learn not only the meanings of the terms that were used above, but also other important financial terms.While you will encounter many terms in this module, here are definitions for three key terms that we will use as we begin the discussion about managing credit. Develop a terms document as you study this module’s reading assignments.Credit is a condition of trustworthiness or credibility. For example, a credit report indicates how trustworthy a person has been in terms of being trusted to pay financial obligations on time. A credit score is a number calculated from the contents of a credit report, and that number is an indication of a person’s trustworthiness (likelihood the person will pay his/her financial obligations) as of today.Loan is the act of lending: a grant of the temporary use of something (e.g., money, a tool, a car).Debt is something that is owed or that one is bound to pay to or perform for another (e.g., a debt of $50).Therefore, when you borrow money from a bank, the bank considers your credit-worthiness, you take out a loan, and you incur debt.Two common categories for debt are non-secured and secured. Security for a debt is something that can be taken if the borrower does not pay (e.g., a car). Credit card debt is non-secured debt. The card user does not agree to give the credit card issuer anything, other than payment on the debt the credit card user incurs. A bank loan for a house is [typically] secured debt. When someone borrows money for a house, the bank will usually ask the borrower to sign an agreement (lien or mortgage) that states that the bank can repossess (possess again or regain possession of) the house if the borrower fails to make the payments.Two of the factors lenders use in the decision-making process when considering making a loan are the borrower’s credit report and the borrower’s credit score. A credit report is a statement of your experience with credit-related accounts over the last many years. In addition to your basic personal information, your credit report includes public records (e.g., bankruptcies, state and county court records, tax liens, monetary judgments, and in some states, overdue child-support payments). Additionally, your credit report includes credit inquiries – names of businesses or individuals that have obtained a copy of your credit report, including lenders, landlords, and employers. Finally your credit report includes accounts – payment history on all of your real estate, installment loans (e.g., car), and credit [card] accounts.Your credit score (also called a FICO score) is calculated by considering the information in your credit report. Through the Reader’s Digest link below you will learn what a credit score is, what is included in your credit score calculation, and how to build your score to a good or better level.The Reader’s Digest website will also give you detailed information about credit reports, credit scores, and a Federal Government resource to get your free credit report. Note however, free credit reports do not usually include your credit score.Your Credit Report and Credit Score Explained:There are three main companies that provide credit reports and credit scores: Experian, Equifax, and TransUnion.You can obtain a free credit score from https://www.freecreditscore.com, which is an Experian-owned company.Federal law allows you to get one free credit report from each of the three national credit reporting companies (the Experian® Bureau, Equifax®, and TransUnion®) once every 12 months through a central source. The credit reports available for purchase or otherwise offered by Experian Consumer Services differ from the credit reports available from the three national credit reporting companies. To request a free copy of your credit report from one of the nationwide credit reporting companies, as required by federal law, you can go to www.annualcreditreport.com, Managing your credit is not only your responsibility as a solid citizen, but also managing credit is very important when it comes time to borrow money. Further, borrowing money involves more than simply having a good credit score.Using credit wisely is critical to personal financial success. Put the knowledge that you have gained so far in this course to use as you read a quick How to for managing your credit at: Managing Credit.The Borrowing Basics document will give you a background in the basic conditions a borrower will have to meet, and the terms used in the business of borrowing/lending. Download the Borrowing Basics handout through the Module 3 Background Resources section.Optional ReadingOptional: If you are interested in finding out more about the Free Application for Federal Student Aid (FAFSA), watch the FAFSA video.