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Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
Knowing What You Need to Know to Achieve Your Financial Goals
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Knowing What You Need to Know to Achieve Your Financial Goals

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  • 1. Financial Literacy: Knowing What You Need To Know To Achieve Your Financial Goals
  • 2. America’s financial literacy
    • American families:
      • The average American family spends $1.22 for every dollar it earns.
      • One in five American families with annual household income of less than $50,000 is spending 40% of after-tax income to service its debt.
      • In 2003, the average American household owed $8,000 in credit cards, compared to $2,600 in 1989.
      • In 2003, 1.6 million Americans filed for bankruptcy – the highest amount in history.
  • 3. America’s financial literacy
    • 2 out of 3 households will probably fail to realize life goals
    • Financial illiteracy is passed to the next generation
      • Average high school senior failed 2004 financial knowledge survey
  • 4. What is Financial Literacy?
  • 5. Financial literacy
    • The ability to effectively evaluate and manage one’s finances in order to make prudent decisions toward reaching life’s goals
    • The understanding of:
      • Money
      • Cash flow
      • Basic economic/financial concepts
      • Debt/risk management
  • 6. Achieving financial literacy
    • Five Key Areas of Personal Finance:
      • Money and income
      • Money management
      • Spending and debt
      • Savings and investments
      • Risk management
  • 7. Money and income
    • Time is money
    • How many hours do you need to work to pay for your mortgage, car insurance, electricity bills, extras, etc?
  • 8. Money management
    • Budgeting
    • Prioritizing
  • 9. Spending and debt
    • Benefits and costs of spending alternatives
    • Credit as a basic financial tool
  • 10. Savings and investing
    • Saving means not spending money.
    • Investing means that you earn a return on the money you put into it.
  • 11. Risk management
    • Insurance
    • Understanding the markets
      • 50% of Americans own stocks
    • Identity theft
  • 12. Financial literacy isn’t just a matter of knowing what you have and knowing your options. It is a matter of planning for life’s milestones.
  • 13. Creating your first overall long-term financial plan
  • 14. Buying your first home
    • Establish good credit
    • Understand “real costs”
    • Assess risks
  • 15. Getting married
    • Understand “financial partnership”
    • Establish separate and joint credit and bank accounts
    • Create wills and trusts
    • Identify beneficiaries
    • Choose owners on title assets
  • 16. Financing a family
    • Budget
      • Education, health care, child care
    • Manage risk, insurance
    • Create wills
    • Instill financial literacy
  • 17. Starting a business
    • Understand
      • cash flow
      • expense timing
    • Manage income and expenses
  • 18. Planning for Retirement
    • Determine how much money you will need.
    • Determine where your retirement income will come from.
    • Devise a budget and investment strategy to help you meet your goals.
  • 19. Preparing a will
    • Designate beneficiaries
    • Determine asset distribution
    • Identify insurance
  • 20. Unexpected milestones
    • Loss
    • Sandwich generation
    • Divorce
  • 21. Financial literacy education
    • Lifelong learning courses
    • Financial media
    • Internet resources
    • Your CPA
  • 22. For more information
    • www.360financialliteracy.org features financial education to help consumers at every life stage .
  • 23. Financial Literacy: Knowing What You Need To Know To Achieve Your Financial Goals
  • 24.  

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