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.
  • Short Term Goals

    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
    2. 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
    3. 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
    4. 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
    5. 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
    6. 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
    7. 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
    8. 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
    9. 10. Rule of 72 Rule of 72
    10. 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
    11. 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
    12. 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
    13. 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
    14. 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

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