Educator Version Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved. Teachers and Educators may use this presentation freely to teach students

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Raise Your Financial IQ

Educator VersionCopyright © 2013 by Jackie Cummings Koski. All Rights Reserved.Teachers and Educators may use this presentation freely to teach students or as a class reference.

MONEY LETTERS 2 MY DAUGHTER By Jackie Cummings Koski

“Money Letters 2 my Daughter” is the 2013 Winner of the Excellence in Financial Literacy Education (EIFLE) Award

Adult’s Book of the Year, Money Management

The EIFLE Awards were established in 2007 by the Institute of Financial Literacy to acknowledge innovation, dedication and a strong commitment to financial literacy education.

It has since become one of the most prestigious and sought after awards in the industry.

2013 Book of the YearAdult’s Money Management

Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.

Awarded by the Institute of Financial Literacy

“Money Letters 2 my Daughter” By Jackie Cummings Koski

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To book Jackie Cummings Koski to speak to your school, class or club, please contact:

Jackie Cummings Koski [email protected]

Companies | Schools | Community Groups | Professional Organizations | Clubs | Churches | Non-Profits

mailto:[email protected]

http://www.moneyletters2.com/

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The information contained in this presentation is for education and

information purposes only, and does not constitute professional

advice. The information provided is subjective and you should

always do your own research before making decisions. While

reasonable efforts are made to include accurate and up-to-date

information, the creator makes no warranties or representations

of any kind concerning the accuracy, timeliness or suitability of the

information provided for any purpose. Validity of the content

is not guaranteed and you are strongly urged to consult

a professional or other authority in the appropriate field

before acting on any of the content.

DISCLAIMER


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On a scale of 1 to 10, how would you rank the Financial IQ of:

Yourself ?Your Kids?Your Parents?Our American Society?

1 is the worst and 10 is the best.

WHAT’S YOUR FINANCIAL IQ?


“I am not sure what your financial IQ is right now, but one thing I promise is that it will be higher after we are done today, than before we started.”

--Jackie Cummings Koski

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Jackie Cummings Koski

-Mother of 17-year-old daughter-Author, Money Letters 2 my Daughter-Director, BetterInvesting Ohio/Kentucky/ Indiana Chapter-President, Cincinnati Model Investment Club-Account Executive, LexisNexis Risk Solutions (my day job)

PRESENTER


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IMPORTANT MONEY TOPICS

1. Earning Money2. Spending Money3. Credit 4. Debt5. Saving Money6. Investing Money7. Money and Taxes8. Things Money Can’t Buy

Here are the topics we will cover today:


Knowing more on these money topics will help raise your Financial IQ!

8Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved.

EARNING MONEY

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EARNING MONEY


Career Choice

Don’t sell yourself short

Multiple income resources

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Does a College Degree make a difference?

EARNING MONEY

12.6%

8.4%

7.5%

4.1%

• Less than a high school diploma

• High school graduates, no college

• Some college or associate degree

• Bachelor's degree and higher

*Age 25 and older. Does not include active duty military or institutionalized individuals.Source: Bureau of Labor Statistics, www.bls.gov

Unemployment Rate by Level of Education*June 2012


http://www.bls.gov/


SPENDING MONEY

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SPENDING MONEY


Budgeting

Small Expenses

Large Expenses

Expenses we don’t think about

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SPENDING MONEY

Fees

Monthly Service

Fee

ATM Fee

Foreign ATM Fee

ATM Balance Inquiry

Fees (Part II)

Overdraft Fee

Extended Overdraft

Fee

Overdraft Protection

Non-sufficient

Funds

Fees (Part III)

Online Bill Pay

Paper Statement

Fee

Stop Payment

Fee

Wire Transfer

Fee

Common Bank Account Fees (you should avoid)



CREDIT

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CREDIT


What is credit?

Credit reports and scores

How is credit used by consumers

How businesses use your credit reports and scores

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CREDIT

Fees

Balance Transfer

Cash Advance

Foreign Transaction

Fees (Part II)

Annual Fee

Returned Payment

Late Payment

Fees (Part III)

Over the Limit

Wire Transfer

Credit Line Increase

Common Credit Card Fees (you should avoid)


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CREDIT

Available Credit being

Used30%

Payment History

35%

Length of Credit History

15%

New Credit 10% Types of

Credit10%

Credit Score Calculation


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CREDITThe only online resource authorized by federal

law to get your free annual credit report is:

www.annualcreditreport.comwww.annualcreditreport.com

www.annualcreditreport.com

You are allowed one free report per year from each of the 3 major credit bureaus:

Experian | Equifax | TransUnion


http://www.annualcreditreport.com/



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CREDIT


Another helpful resource to keep track of your Credit Report and Score

www.creditkarma.com

Free Service

Online and

iPhone

Uses data from

TransUnion

http://www.creditkarma.com/

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CREDIT5 Credit Card Rules

• Only charge what you can pay off in full every month, before the due date

Rule #1

• Get a credit card with a sign up bonus, great perks and no annual fee

Rule #2

• Get a low interest rate (for the rare occasion that you may have to carry a balance)

Rule #3

• Manage your spending throughout the month and charge only what you can pay off

Rule #4

• If you can’t pay off what you charged in full in a given month, refer to Rule #1

Rule #5



DEBT

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DEBT


What is debt?

Types of Debt

How much is debt costing you?

How to eliminate debt

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DEBT

Credit UnionOnline Bank

Community/Regional Bank

National Bank

Family & Friends

Payday Loan

BEST

OKAY

WORST

NEVER!NEVER!

NEVER!

Guide to where to get a Loan


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DEBT

$1,000Online

Payday Loan(Originated in Ohio)

14 Days

$262Loan Fee

683%APR

Sample Payday Loan Terms


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DEBT

25 YearPayoff

• 15% APR• Pay only required minimum

payment of $219/month (2.5% of balance)

• You will pay $8,507 in interest• You will pay a total of $17,257

3 year Payoff

• 15% APR• Pay $299/month ($80/month

over minimum payment)• You will pay $2,209 in interest• You will pay a total of $10,959• Your savings in time and

interest is 22 years & $6,298!

Payoff of $8,750 in Credit Card Debt



SAVING MONEY

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SAVING MONEY


When you should start saving

How much you should you save

The best place to put your savings

The difference between saving and investing

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SAVING MONEY


Banks should be insured by FDICwww.fdic.gov

Credit Unions should be insured by NCUAwww.ncua.gov

Up to $250,000

Note: On January 1, 2014, the standard insurance amount will return to $100,000 per depositor. For update go to websites listed above.

http://www.fdic.gov/

http://www.fdic.gov/


INVESTING MONEY

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INVESTING MONEY


When you should start investing

There are risks and NO guarantees

Most common investments Stocks | Bonds | Mutual Funds | ETFs

Do it yourself -vs- using a professional

My favorite investment guide: www.clarkhoward.com

http://www.clarkhoward.com/

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INVESTING MONEY3 Easy ways to get to $1 million

Per Week $50 Return9% Years40

= $1,000,000

Per Week $95 Return5.5% Years45

Per Week $130 Return11% Years25

Conservative (Slow)

Moderate (Medium)

Aggressive (Fast)


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INVESTING MONEY$900 Per Year

From You

$1,800 Per Year

Total Contribution

$900 Per Year

Company Match

$1 Million After investing from age 22-65 with 9% annualized return

Getting to an easy Million

with your 401(k)

Based on $30,000/year salary , where you contributed 3% each year to your 401(k) --$900 and your company matched that amount.


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INVESTING MONEY


Do you have a great

Diversification

Bonds

Small-Cap | Mid-Cap | International | Large-Cap | Emerging Markets

Happy


MONEY AND TAXES

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MONEY AND TAXES


Things you are taxed on

Filing tax returns electronically Find out if you can file for free at www.irs.gov/freefile

Don’t forget about tax breaks

Payroll Tax

http://www.irs.gov/freefile

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MONEY AND TAXES

Types of Payroll Taxes

Federal

• Collected by IRS to fund the country's expenses

State

• Collected by your state to fund the expenses of the state

SS/Medicare (FICA)

• Federal program that provides income and health insurance for the elderly and disabled



THINGS MONEY CAN’T BUY

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Just a few: Time, Talent, Love, Appreciation

Most money decisions are emotional

Giving Back—not always monetary

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Newborn 1-5 6-12 12-15 16-18 19-22 22-25 26-30 31-50 51 and older

0

20

40

60

80

100

120

Parent Appreciation Factor

Age:

App

reci

ation

Fac

tor


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THINGS MONEY CAN’T BUYTHEN (3 years old)

“My mom is great! She knows everything!”


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THINGS MONEY CAN’T BUYTHEN (3 years old) NOW (17 years old)

“My mom is great! She knows everything!”

“I’m 17 and I know everything!”


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“I've learned that you shouldn't go through life with a catcher's mitt on both hands; you need to be able to throw

something back.”

--Maya Angelou

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QUICK 5: FINANCIAL IQ QUIZ

1. Is the unemployment rate greater among those with or without a college degree?

2. What is the only website to get your free annual credit report?

3. Name one of the best places to get a loan?

4. What has the biggest impact on your credit score?

5. Is it possible to get to $1 million without winning the lottery?


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QUESTIONS?

Let’s talk about YOURmoney and personal finance questions

Want more resources to help raise your Financial IQ? Go to:

www.moneyletters2.com

Email questions, comments or suggestions to:

[email protected] © 2013 by Jackie Cummings Koski. All Rights Reserved.

? ? ?

http://www.moneyletters2.com/

mailto:[email protected]

Documents

Educator Version Copyright © 2013 by Jackie Cummings Koski. All Rights Reserved. Teachers and Educators may use this presentation freely to teach students