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Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
Short Term Goals
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Short Term Goals

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  • Speaker notes Welcome students and introduce yourself. Purpose of slide Sets the tone for a comfortable learning session.
  • Transcript

    • 1.  
    • 2. Short-Term Goals <ul><li>Pay yourself first </li></ul><ul><li>Reduce spending </li></ul><ul><li>Savings options </li></ul><ul><li>Compounding interest </li></ul>Agenda
    • 3. Saving vs. Investing <ul><li>Investing for long-term goals </li></ul><ul><ul><li>More than five years </li></ul></ul><ul><ul><li>Retirement </li></ul></ul><ul><ul><li>College education </li></ul></ul><ul><li>Saving for short-term goals </li></ul><ul><ul><li>Less than five years </li></ul></ul><ul><ul><li>Emergency fund </li></ul></ul><ul><ul><li>Car or house down payment </li></ul></ul><ul><ul><li>Vacation </li></ul></ul>Saving vs. Investing
    • 4. Pay Yourself First <ul><li>Today’s habits pay off tomorrow </li></ul><ul><ul><li>Include savings in your budget </li></ul></ul><ul><ul><li>Save for emergencies </li></ul></ul><ul><ul><li>Save for major purchases </li></ul></ul>Saving vs. Investing
    • 5. Reduce Spending <ul><li>Clothes </li></ul><ul><ul><li>Buy the basics </li></ul></ul><ul><ul><li>Shop sales </li></ul></ul><ul><ul><li>Shop thrift stores </li></ul></ul><ul><ul><li>Make minor repairs </li></ul></ul><ul><li>Personal Care </li></ul><ul><ul><li>Shop discount stores </li></ul></ul><ul><li>Food </li></ul><ul><ul><li>Eat out less </li></ul></ul><ul><ul><li>Split a meal </li></ul></ul><ul><ul><li>Skip daily cup of coffee </li></ul></ul><ul><ul><li>Shop with a list </li></ul></ul><ul><ul><li>Buy generic brands </li></ul></ul><ul><ul><li>Clip coupons </li></ul></ul><ul><ul><li>Buy in bulk </li></ul></ul>Reduce Spending
    • 6. <ul><li>Transportation </li></ul><ul><ul><li>Economy car </li></ul></ul><ul><ul><li>Used car </li></ul></ul><ul><ul><li>Carpool </li></ul></ul><ul><ul><li>Public transportation </li></ul></ul><ul><li>Entertainment </li></ul><ul><ul><li>Entertain at home </li></ul></ul><ul><ul><li>Pack a picnic </li></ul></ul><ul><ul><li>Use student discounts </li></ul></ul><ul><ul><li>Free concerts </li></ul></ul><ul><ul><li>Free community events </li></ul></ul>Reduce Spending Reduce Spending
    • 7. Savings Options <ul><li>Banks and credit unions </li></ul><ul><ul><li>Checking account </li></ul></ul><ul><ul><li>Money market account </li></ul></ul><ul><ul><li>Savings account </li></ul></ul><ul><ul><li>Certificate of deposit (CD) </li></ul></ul>Savings Options – Getting Started
    • 8. Savings – Getting Started <ul><li>Checking account </li></ul><ul><ul><li>Lowest interest rate </li></ul></ul><ul><ul><li>Most transactions </li></ul></ul><ul><li>Savings account </li></ul><ul><ul><li>Higher interest rates than checking </li></ul></ul>Savings Options – Getting Started
    • 9. Savings – Larger Amounts <ul><li>Money market accounts </li></ul><ul><ul><li>Higher rates than checking and savings </li></ul></ul><ul><ul><li>Limited number of monthly withdrawals </li></ul></ul><ul><li>Certificate of deposit (CD) </li></ul><ul><ul><li>Require minimum deposit </li></ul></ul><ul><ul><li>Pays higher interest rate </li></ul></ul><ul><ul><li>No transactions for a set period </li></ul></ul><ul><ul><li>Early withdrawal penalty </li></ul></ul>Savings Options – Getting Started
    • 10. Rule of 72 Rule of 72
    • 11. Power of Compound Interest <ul><li>Student A </li></ul><ul><li>Age 25 </li></ul><ul><li>$100/Month </li></ul><ul><li>10 Years </li></ul><ul><li>Contributes $12,000 </li></ul><ul><li>$73,537 at age 60 </li></ul><ul><li>Student B </li></ul><ul><li>Age 40 </li></ul><ul><li>$100/Month </li></ul><ul><li>20 Years </li></ul><ul><li>Contributes $24,000 </li></ul><ul><li>$46,435 at age 60 </li></ul>Savings growth calculated at 6% interest. Compound Interest
    • 12. Power of Compound Interest Savings growth calculated at 6% interest. Student A Student B Compound Interest Contributions $12,000 Total Interest $22,435 Total Value $46,435 Contributions $24,000 Total Interest $61,537 Total Value $73,537
    • 13. Savings Growth <ul><li>$50 a month </li></ul><ul><ul><li>$8,194 in 10 years </li></ul></ul><ul><li>$100 a month </li></ul><ul><ul><li>$16,388 in 10 years </li></ul></ul><ul><li>$250 a month </li></ul><ul><ul><li>$40,970 in 10 years </li></ul></ul>Savings growth calculated at 6% interest. Compound Interest
    • 14. How To Succeed <ul><li>Identify financial goals </li></ul><ul><li>Track expenses and list your debts </li></ul><ul><li>Create a financial plan </li></ul><ul><li>Save in ways that fit your lifestyle </li></ul><ul><li>Start a savings plan—and stick to it! </li></ul><ul><li>Pay off debt </li></ul>Review
    • 15. <ul><li>Session: </li></ul><ul><li>Date: </li></ul><ul><li>Time: </li></ul><ul><li>Location: </li></ul>What’s Next What’s Next
    • 16. &nbsp;

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