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This program will help you:This program will help you:
Live the Lifestyle YOU WantLive the Lifestyle YOU Want
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WHY SHOULD I LEARN MONEY WHY SHOULD I LEARN MONEY SKILLS?SKILLS?
If you invest as little as $100 per month, you could become a millionaire.
This works according to the principle of
compounding interest.
What would you do with a million dollars?
IntroductionIntroduction
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DREAMS AND GOALSDREAMS AND GOALS
The most important thing money can provide me is:
Setting GoalsSetting Goals
? ?
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MOTIVATIONMOTIVATION
What does this word mean to you?
What motivates you to get money?
Why?
Motivate YourselfMotivate Yourself
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HOW FINANCIAL SKILLS IMPACT YOUR LIFEHOW FINANCIAL SKILLS IMPACT YOUR LIFE
Lifestyle
Help others
Free time
Reduce stress
Make the worlda better place
Finances and Your Finances and Your LifeLife
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GOALS vs. DREAMSGOALS vs. DREAMS
Dream = Something you hope but not planned.
Goal = A person’s dream written down, with a detailed plan.
Write down your goals for each time frame:o 1 year__________________o 5 years_________________o 10 years________________o 20 years________________
Dreams into Dreams into GoalsGoals
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Proper Goals Are:Proper Goals Are:
Specific
Measurable
Attainable
Result-orientated
Time-driven
Goal SettingGoal Setting
“Our goal was to travel to Italy”
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To Reach Your Goals, To Reach Your Goals, Remember:Remember:
To Create a plan
To Review goals often
To Visualize
The Law of Attraction
Reaching Your Reaching Your GoalsGoals
See it,Believe it,Plan it,Do it!
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Let’s Learn To BudgetLet’s Learn To Budget
What percentage of lottery winners wastes all their winnings within a few years?
Answer: 70%
How many NBA and NFL players are broke or bankrupt within 5 years of retirement?
Answer: More than 60%.
BudgetBudget
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Budgeting Provides For: Budgeting Provides For:
Control
Organization
More Money
Opportunity
Benefits of Benefits of Budgeting Budgeting
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People with no money skills often make poor financial
choices, regardless of how much money they have.
Financial Financial DecisionsDecisions
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Costs of RentingCosts of Renting
What expenses (besides rent) must you pay each month when you rent an apartment?o Electricityo Gaso Water, sewer, trasho Cable TV and Interneto Repairso Renter’s insuranceo Furniture/appliances
Hidden CostsHidden Costs
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Automobile CostsAutomobile Costs
What expenses (besides car payment) must you pay each month when you buy a car?
o Gas
o Insurance
o Registration
o Maintenance
Hidden CostsHidden Costs
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Budget Before Buying Budget Before Buying PhilosophyPhilosophy
BBB!BBB!
Always budget all the costs of an item before you purchase it to ensure it is affordable.
BBBBBB PhilosophyPhilosophy
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Banking EssentialsBanking Essentials
How do banks work?
What is the difference between a bank and a credit union?
BanksBanks
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Banking EssentialsBanking Essentials
Open a checking and savings account.
Set up direct deposit.
Set up auto bill pay.
Save and invest automatically every month.
BanksBanks
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AutoX SystemAutoX System
BanksBanks
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Building good credit can save you over $100,000 in your life.
Building A Credit Building A Credit HistoryHistory
What would you do with a $100k?
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Building A Credit Building A Credit HistoryHistory
WAYS TO KEEP A HIGH CREDIT WAYS TO KEEP A HIGH CREDIT SCORESCOREPay bills on time
Keep debt low
Insurance
Protect yourself from identity theft
Use credit wisely to build credit history
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CAR LOANSCAR LOANS
How will you be treated if you have a good credit history?
How will you be treated if you have a bad credit history?
How does that make you feel?
What can you do to avoid paying more for your car loan?
Credit and LoansCredit and Loans
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WHAT IS CREDIT?WHAT IS CREDIT?
Do you think people are more likely to buy something they do not need when they use a credit card?
CreditCredit
?
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HOW CREDIT WORKSHOW CREDIT WORKS
Difference between a debit card and a credit card.
Credit card companies charge interest
That’s how they make their money
How can you avoid paying interest?
CreditCredit
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WHY DO PEOPLE HAVE WHY DO PEOPLE HAVE CREDIT CARDS?CREDIT CARDS?
Build credit rating
Pay in full each month
Have 6 months of bills in savings
Have a working budget
Control spending
CreditCredit
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COLLATERALCOLLATERAL
Low-risk loan
High-risk loan
Car loan: collateral = the car
Car value – down payment = collateral
LoansLoans
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LOAN QUALIFICATIONLOAN QUALIFICATIONTo qualify you for a loan, lenders look at:
o Income
o Debt
o Credit history
o Assets
o Job stability
LoansLoans
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FOCUS ON PASSIONSFOCUS ON PASSIONS
What are some careers available for people with a passion for…
o Sports?
o Entertainment?
o Media?
PassionsPassions
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PREPARE NOW FOR YOUR PREPARE NOW FOR YOUR DREAM JOBDREAM JOB
Understand job descriptions.
Review skill sets.
List skills and training you need.
Create a timeline to get your dream job.
CareerCareer
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What does investing mean to you?
InvestmentInvestment
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WHY PEOPLE INVESTWHY PEOPLE INVEST
Financial security
Lifestyle
Retirement
Beat inflation
InvestmentInvestment
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CASH FLOW TERMSCASH FLOW TERMSPositive cash flow
Negative cash flow
Breakeven cash flow
Assets
Liabilities
Net Worth
Cash FlowCash Flow
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What net worth will you What net worth will you need to retire with a future need to retire with a future
income of…income of…
$60,000?
$150,000?
$450,000?
Investment PlanInvestment Plan
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CREATING A PERSONAL FINANCIAL CREATING A PERSONAL FINANCIAL PLANPLAN
Decide how much money you need
Write goals
Create a savings plan
Build a solid foundation
Team of trusted advisors
Step-by-step, diversified, flexible plan
Investment PlanInvestment Plan
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WHY DIVERSIFY?WHY DIVERSIFY?
Reduce overall risk
Protect from total loss
Investment PlanInvestment Plan
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BASIC INVESTMENT TYPESBASIC INVESTMENT TYPESBonds
Money Market
Gold, Silver, Metals
Stocks
Real Estate
Businesses
InvestingInvesting
Become an expert in investing!
Start making money you while you hang out with friends, travel and even while you sleep.
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COMPOUND INTERESTCOMPOUND INTERESTCompounding interest allows your money to grow.
The younger you start, the larger your money can grow.
InvestingInvesting
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CALCULATING RETURNCALCULATING RETURN
Earn interest on the money you save.
Earn interest on the interest.
The rule of 72
InvestingInvesting
Grow your money!
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If you start investing $100 per month before you’re 21, you have an excellent chance of becoming a millionaire.
InvestingInvesting
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What would you like to do with your million bucks?
ImagineImagine
?
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WHAT IS INSURANCE?WHAT IS INSURANCE?
Insurance is an agreement that protects you or your property in the case of injury, damage, or theft.
Insurance protects your investment. If anything happens to something covered by your policy, the insurance company will pay for replacement, repair, or a cash settlement.
Why do people purchase insurance? To protect:o Carso Homeso Health (medical, dental)o Liabilityo Belongings (renter’s insurance)o Life
Why are these important to cover?
InsuranceInsurance
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INSURNACE BENEFITSINSURNACE BENEFITS
Protects you.o In cases of medical emergencies or accidents, insurance can provide access to doctors,
medication, and other things you need to remedy the situation.o When you insure your car, the insurance company pays to repair damage to the vehicle.
Protects your family.o It gives you peace of mind knowing your family will be provided for if you pass away.
Protects your assets and income.o Having insurance can protect your assets and income in cases of accidents and lawsuits.o Insurance can significantly reduce costs of having to pay for major disasters on your own.
Protects your credit.o If you are issued judgment from a lawsuit, your credit rating will be affected negatively.
Protects items you own.o Belongings you insure can be replaced if something happens.
InsuranceInsurance
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INSURNACE GAMEINSURNACE GAME
If you roll:
Doubles (1s through 5s) – nothing, you are extra safe and get 1 extra ticket.
3 – You fall and hurt your leg. If you have medical insurance you pay 1 ticket. If you do not you pay 4 tickets.
4 – You get into a car accident. If you are insured you pay 1 ticket. If you are not you pay 6 tickets.
5 – Your apartment is broken into. If you are insured you pay 1 ticket. If you are not you pay 5 tickets.
6 – You get the flu and need prescription antibiotics and a blood test. If you are insured you pay 1 ticket. If you are not you pay 4 tickets.
7 – Someone hits your car in a parking lot. If you are insured you pay 1 ticket. If not, 3 tickets.
8 – A pipe bursts in your apartment and ruins your couch and TV. If you are insured you pay 1 ticket. If you are not you pay 6 tickets.
9 – A rock hits your car and breaks your windshield. If you are insured you pay 1 ticket. If you are not you pay 5 tickets.
10 – You trip and fall and sprain your ankle. You need crutches, an x-ray, and pain medication. If you are insured you pay 1 ticket. If you are not you pay 8 tickets.
11 – You want to get a flu shot. If you are insured you pay 1 ticket. If you are not you pay 3 tickets.
12 – The roof collapses and damages all your belongings. If you are insured you pay 1 ticket. If you are not you pay 10 tickets.
InsuranceInsurance
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INSURANCE TYPESINSURANCE TYPES
o Health: Includes medical, dental, and vision. Health insurance is a must. If you don’t get sick often, choose cheaper forms of insurance.
o Automobile: Insures both you and your vehicle and is a must. Talk to your insurance agent about adequate coverage.
o Renter’s Insurance: Covers personal belongings in your rental. Important for those who have nicer things. o If have a 20-year-old TV and a couch you found in the alley, renter’s insurance may not
be so important.
o Property Insurance: Covers any properties that you own and is a must.o Umbrella Policies: Provide additional coverage on your existing insurance
policies plus other protections.o Suggested for those with substantial assets.
o Life Insurance: Provides coverage to your loved ones in case of your death.o Especially important for those with families.
InsuranceInsurance
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AUTO INSURANCEAUTO INSURANCE
You must have auto insurance to avoid extreme risk to you, to others, and to your future finances.o If you have an accident without insurance you can face judgments
for huge damages.o Your wages can be garnished until the damages are paid—which
could take years!
Shopping for auto insurance:o Get quotes on the Internet or by phone.o Compare policies carefully to make sure coverage is the same.
Bottom line: Younger drivers pay more for insurance. To lower insurance costs:o Good driver discountso Choice of car
InsuranceInsurance
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MENTORSMENTORS
Mentors can:o Help you get a jobo Provide personal adviceo Act as a support systemo Help you get into college
Who can be your mentor?o Professorso Business professionals o Family friendso Anyone with experience and expertise in areas that you are interested in.
Business Business RelationsRelations
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GAMEGAME
A man was at restaurant feeling poor he sees a rich man take a stack of hundred dollar bills out his pocket to pay the cashier. The poor man says to the rich man "I know all the songs known to man." The rich man laughed and said, "I bet you all the money in my pocket that you can't sing a song with my daughter's name in it, Sarah Lee Greyson." The poor man went home rich and the rich man went home poor.
What song did the man sing?
Business Business RelationsRelations
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ELEVATOR PITCHELEVATOR PITCH
Having an elevator pitch ready prepares you for opportunity.
What makes you, your business idea or other thing that you are interested in unique?
What message do you want to tell your market or your potential advisors/network?
What is the project that you are working on?
What is your elevator pitch?
Business Business RelationsRelations
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ENTREPRENUERSHIP AND YOU?ENTREPRENUERSHIP AND YOU?
Lifestyle – The personal freedoms associated with being an entrepreneur are unrivalled by many other jobs.
Choose who you work with – Perhaps, the greatest point to working for yourself is you get to choose who you work with and do business with.
Financial Rewards – Business owners have the ability to control how much they earn. When you want to make more money, you simply work more efficiently.
Tax Benefits - There are several tax benefits business owners enjoy, which helps them to keep more of the money they earn.
Growth of your skill set - Being a business owner means that you are responsible for everything that happens within your company.
Social EnterpriseSocial Enterprise
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ENTREPRENUERSHIP AND ENTREPRENUERSHIP AND YOU?YOU?
Financial Insecurity – In life it is important to take the rough with the smooth, and owning your own business is no different.
Health Insurance –Employee health plans and any other benefits you get with a regular 9-5 job are now your responsibility, and can reduce your bottom line.
Decisions, decisions - Though being the decision maker is a key benefit of entrepreneurship, it can also be difficult. All the decisions of the business fall to you. Setting up an office, hiring staff, marketing your business - everything depends on you. You will build a network of advisors in time, but at the beginning, this can be challenging.
Social EnterpriseSocial Enterprise
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MAGAZINE ENTERPRISEMAGAZINE ENTERPRISE
As a class you need to generate $6,400 in income based off of the budget below.
Budget:o Office Rent: $2,000o Staff: Writers, Illustrators: $1,500o Utilities: $500o Cost to Print Magazine: $1,200o Total Expenses: $5,200
Savings goal: $1,200 per month.
Social EnterpriseSocial Enterprise