Financial Goals

Sandy is a single mother with a 2 year old son. She works part time while attending classes at a nearby community college to eventually earn a teaching certificate and become a teacher. Sandy charges her purchases with her credit card for what she can't pay for in cash, and has accumulated $2,000 in credit card balance over time. She recently got a pay raise which will give her an extra $2,500 a year. At a recent meeting with a financial counselor, she identified the following short term financial goals to accomplish within one year: 1. $1,000 to take a trip to relax and rejuvenate; 2. $300 to fix her car engine problems, and 3. $200 for music lessons for her son.

If you were her financial counselor, what advice might you give her?