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					•   Activity   1………………Saving vs. Investing
•   Activity   2……….….Saving for a Rainy Day
•   Activity   3……………………..1 + 1 = Saving
•   Activity   4…..Investing for the Long Term
                      ACTIVITY 1
        Saving vs. Investing
    Overview

    •   Saving vs. investing
    •   Information on a paycheck
    •   Making a financial plan
    •   Budgeting




2                                   Money Management - Activity 1
    DO YOU SAVE?

    DO YOU INVEST?



                                     Slide 1 - Do You Save? Do You Invest?
3             Lesson Reference: Money Management, Activity 1 – Overhead 1
           SAVING VS. INVESTING
    Saving
    • Short-term.
    • Postpones spending.
    • Has safety precautions.

    Investing
    • Long-term.
    • Exchanges money for something with the future
      expectation of receiving a profit.
    • Has risk factors.

4                                                                 Slide 2 - Saving vs. Investing
                                   Lesson Reference: Money Management, Activity 1 – Overhead 2
    TAKE A GOOD LOOK AT A PAYCHECK




                                                                Slide 3 – Paycheck
5                       Lesson Reference: Money Management, Activity 1 – Handout 1
             MAKING A SUCCESSFUL
               FINANCIAL PLAN
    1. Start as early as possible.
    2. Set goals.
    3. Include both short- and long-term strategies.
    4. Support the plan with a practical, working
       budget.
    5. Review the plan on a regular schedule.
    6. Do your homework while working on your plan.
    7. Put the plan in writing.
                                                       Slide 4 – Making a Successful Financial Plan
6                                    Lesson Reference: Money Management, Activity 1 – Handout 2
       FINANCIAL PLAN ASSISTANCE

    • Bankers
    • Certified Financial Planners
    • Schools and Courses
    • Peer Groups and Investment Clubs
    • The Media
    • The Internet


                                                                 Slide 5 - Financial Plan Assistance
7                                    Lesson Reference: Money Management, Activity 1 – Overhead 3
     BUILDING MY
    MONTHLY BUDGET
    • Savings & Investments
    • Fixed Expenses
    • Periodic Fixed Expenses
    • Variable Expenses
    • Debts


                                               Slide 6 – Building my Monthly Budget
8                      Lesson Reference: Money Management, Activity 1 – Handout 4
                    ACTIVITY 2
               Saving for a
                Rainy Day
    Overview

    • Reasons to save
    • Concerns and issues with saving
    • Where to save




9                                       Money Management - Activity 2
     SAVING FOR A RAINY DAY




                                                  Slide 1 - Saving for a Rainy Day
10                  Lesson Reference: Money Management, Activity 2 – Overhead 1
               REASONS TO SAVE

     • Provide for unexpected emergencies.

     • Purchase expensive items in the future.

     • Ensure retirement.

     • Plan for investment opportunities.



11                                                                  Slide 2 - Reasons to Save
                                   Lesson Reference: Money Management, Activity 2 – Overhead 2
     CONCERNS AND ISSUES
        WHEN SAVING

        • Safety
        •   Restrictions
        •   Liquidity
        •   Earnings
        •   Taxes


                                             Slide 3 – Concerns and Issues When Saving
12                         Lesson Reference: Money Management, Activity 2 – Handout 1
        PLACES TO SAVE

     • Savings Accounts
     • Money Market Accounts
     • Certificates of Deposit (CDs)
     • Savings Bonds
     • Insurance



                                                              Slide 4 – Places to Save
13                          Lesson Reference: Money Management, Activity 2 – Handout 2
            LOOKING AT PLACES TO SAVE
     On a scale of 1 to 5 (with 1 being low and 5 being high), rate the
     following places to save your money.




     Based on the above ratings, where would you save your money? Why?

                                                                           Slide 5 - Looking at Places to Save
14                                              Lesson Reference: Money Management, Activity 2 – Overhead 3
                   ACTIVITY 3
          1 + 1 = Saving
     Overview

     • Types of interest
     • The impact of saving
     • Savings regulations




15                              Money Management - Activity 3
          TYPES OF
          INTEREST
     Which type of return on
     your money would you
     prefer?

     What’s the difference?



                                                                  Slide 1 - Types of Interest
16                             Lesson Reference: Money Management, Activity 3 – Overhead 1
      IMPACT OF RETURNS ON SAVINGS
     This chart shows what happens at several different rates to
     $100 in an account when no money is withdrawn and
     interest is compounded yearly.




                                                                           Slide 2 – Returns on Savings
17                                           Lesson Reference: Money Management, Activity 3 – Handout 2
              SAVINGS REGULATIONS
     Federal Government Insurance
     Deposits are potentially insured up to $100,000.
     • FDIC (Federal Deposit Insurance Corporation)
     • NCUA (National Credit Union Administration)

     Truth in Savings Act
     Financial institutions must disclose the following
     information about their consumer savings accounts:
     • Fees on accounts
     • Interest rate
     • General terms and conditions
     Defines the year as 365 days for purposes of
     determining the annual percentage rate of interest.
                                                                             Slide 3 - Savings Regulations
18                                           Lesson Reference: Money Management, Activity 3 – Overhead 2
                   ACTIVITY 4
          Investing for the
             Long Term
     Overview

     • The Historical Performance of the S&P 500
     • Reasons to Invest
     • Investing Considerations
         Investment Concerns
         Places to Invest
     • Online Money Management


19                                                 Money Management - Activity 4
             SAVING vs. INVESTING
     SAVING
     • Short-term.
     • Postpones spending.
     • Has safety precautions.

     INVESTING
     • Long-term.
     • Exchanges money for something with the future
       expectation of receiving a profit.
     • Has risk factors.

                                                                  Slide 1 - Savings vs. Investing
20                                  Lesson Reference: Money Management, Activity 4 – Overhead 1
        SAVING VS. INVESTING, HISTORICALLY




     The S&P 500 stock index has increased almost 200 percent since
     1970. On average, the stock market returns 12 percent per year,
     including dividends.

     Savings rates, by comparison, have been much lower – anywhere
     from 1.5% to 5%, usually depending on the length of time the
     savings are deposited.                           Slide 2 - Saving vs. Investing, Historically
21                                                      Lesson Reference: Money Management, Activity 4 – Overhead 2
             PLACES TO INVEST

     • Stocks
     • Bonds
     • Mutual Funds
     • Retirement Plans
     • Real Estate
     • Collectibles/Valuables

22                                                                Slide 3 - Places to Invest
                                Lesson Reference: Money Management, Activity 4 – Overhead 3
             QUESTIONS TO ASK BEFORE
              MAKING AN INVESTMENT
     1. How safe is the investment?
     2. What types of returns can I expect?
     3. What kind of risk is involved?
     4. Can I get my money back if I need it? How long will
        it take and how much will it cost to get it back
        quickly?
     5. Are my investments in a variety of places to spread
        my risks (diversification)?


                                                                         Slide 4 – Questions to Ask
23                                       Lesson Reference: Money Management, Activity 4 – Handout 2
         INTERNET PRIVACY & SECURITY
     •    Avoid passwords or screen names that are
          easy to guess.
     •    Change passwords often.
     •    Read privacy policies.
     •    Check online accounts often. Report unfamiliar
          transactions.
     •    Do not open emails with unsolicited offers that
          sound too good to be true.


                                                                 Slide 5 – Internet Privacy & Security
24                                      Lesson Reference: Money Management, Activity 4 – Overhead 4

				
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