Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Introduction to Financial Management PowerPoint Presentation

6,791 views

Published on

  • Be the first to comment

  • Be the first to like this

Introduction to Financial Management PowerPoint Presentation

  1. 2. Financial Wellness Curriculum Introduction to Financial Management More information available at YouCanDealWithIt.com This presentation has been developed by and paid for by AES.
  2. 3. Introduction to Financial Management <ul><li>Understand short and long term goals </li></ul><ul><li>Where does your money go </li></ul><ul><li>How to use student loan money wisely </li></ul><ul><li>Learning to budget </li></ul><ul><li>Understand how to manage debt </li></ul><ul><li>Smart ways to think about money </li></ul>
  3. 4. Setting Financial Goals <ul><li>Short Term Goals: </li></ul><ul><ul><li>Have enough money to last the semester </li></ul></ul><ul><ul><li>Go out Friday night </li></ul></ul><ul><ul><li>Pay off a department store credit card </li></ul></ul><ul><li>Long Term Goals: </li></ul><ul><ul><li>Buy a car </li></ul></ul><ul><ul><li>Go to Cancun for spring break </li></ul></ul><ul><ul><li>Buy a laptop </li></ul></ul>
  4. 5. Know Where your Money is Going <ul><li>Evaluate and track spending </li></ul><ul><ul><li>Keep a record of all your receipts for an entire month </li></ul></ul><ul><ul><li>Update your check register </li></ul></ul><ul><li>Remember that spending beyond your limits is dangerous </li></ul>
  5. 6. Track Expenses <ul><li>Education expenses </li></ul><ul><ul><li>Books </li></ul></ul><ul><ul><li>Transportation </li></ul></ul><ul><ul><li>Meals </li></ul></ul><ul><li>Living expenses </li></ul><ul><ul><li>Rent </li></ul></ul><ul><ul><li>Utilities </li></ul></ul><ul><ul><li>Cell phone </li></ul></ul><ul><li>Debt payments </li></ul><ul><ul><li>Car </li></ul></ul><ul><ul><li>Credit cards </li></ul></ul><ul><li>Savings </li></ul><ul><ul><li>Pay yourself first </li></ul></ul>
  6. 7. 70-20-10 Rule <ul><li>Use this as a guide to show you how to divide your money successfully. </li></ul><ul><li>Spend 70% </li></ul><ul><ul><li>Use for living and education expenses - rent, food, clothing, tuition, etc. </li></ul></ul><ul><li>Save 20% </li></ul><ul><ul><li>5% for emergency funds </li></ul></ul><ul><ul><li>5% for specific goals – vacation, computer, etc. </li></ul></ul><ul><ul><li>10% invest for the long-term </li></ul></ul><ul><li>Spend 10% </li></ul><ul><ul><li>For debt payments – car loan, credit card, student loans </li></ul></ul>
  7. 8. Determining Financial Priorities <ul><li>If you have $50 what would you spend it on? </li></ul><ul><ul><li>Savings or Personal Appearance </li></ul></ul><ul><ul><li>Social Activity or Paying a Debt </li></ul></ul><ul><ul><li>Sports or Eating Out </li></ul></ul><ul><ul><li>Hobbies or Paying a Debt </li></ul></ul><ul><ul><li>Personal Appearance or Sports </li></ul></ul><ul><ul><li>Paying a Debt or Clothes </li></ul></ul><ul><ul><li>Eating out or Savings </li></ul></ul>
  8. 9. Use Your Student Loan Money Wisely <ul><li>Use student loan money for school-related expenses only </li></ul><ul><ul><li>Tuition </li></ul></ul><ul><ul><li>Books </li></ul></ul><ul><ul><li>Supplies </li></ul></ul><ul><ul><li>Transportation </li></ul></ul><ul><li>Loans are not free money </li></ul><ul><li>Don’t incur unnecessary debt </li></ul><ul><li>Remember: Your student loan must be paid back! </li></ul>
  9. 10. Creating a Budget <ul><li>Not restricting, but empowering </li></ul><ul><li>Lets you have more control over your life </li></ul><ul><li>Helps you see exactly where your money is going </li></ul><ul><li>Think spending plan, not budget </li></ul>
  10. 11. Budget Calculator
  11. 12. Managing Debt <ul><li>Monthly debt: </li></ul><ul><ul><li>Credit cards </li></ul></ul><ul><ul><li>Student loans </li></ul></ul><ul><ul><li>Car payments </li></ul></ul><ul><ul><li>Personal Loans </li></ul></ul><ul><li>If your debt is: </li></ul><ul><ul><li>Under 15% - Relax </li></ul></ul><ul><ul><li>15-20% - Be Cautious </li></ul></ul><ul><ul><li>Over 20% - Red Flag </li></ul></ul>
  12. 13. Before You Buy … <ul><li>Do you spend without thinking? </li></ul><ul><li>Before you make your next purchase - even if it is a “just” a new pair of jeans – walk away for 15 minutes and think about the following: </li></ul><ul><ul><li>Do you NEED it? </li></ul></ul><ul><ul><li>How will you pay for it – cash or credit? </li></ul></ul><ul><ul><li>Where are you going to put it? </li></ul></ul><ul><ul><li>What will happen if you don’t buy it? </li></ul></ul>
  13. 14. Smart Ways to Think about Money <ul><li>Make Your Money Last </li></ul><ul><ul><li>Find ways to increase your earnings </li></ul></ul><ul><ul><li>Create and commit to a monthly budget </li></ul></ul><ul><ul><li>Stay on top of your goals </li></ul></ul><ul><li>Reduce Debt </li></ul><ul><ul><li>Stop charging </li></ul></ul><ul><ul><li>Break the habit of paying only the minimum </li></ul></ul><ul><ul><li>Transfer high rate credit card balances </li></ul></ul>
  14. 15. Debt Repayment Calculator
  15. 16. Introduction to Financial Management <ul><li>Understand short and long term goals </li></ul><ul><li>Where does your money go </li></ul><ul><li>How to use student loan money wisely </li></ul><ul><li>Learning to budget </li></ul><ul><li>Understand how to manage debt </li></ul><ul><li>Smart ways to think about money </li></ul>

×