Stephen cagnassola leads a professional tax and financial organisation that serves clients around the USA. A brilliant person could study for 4 weeks and pass the exam without any difficulty. If you want to offer life insurance the process is equivalent and the study period is about the same

1. Stephen Cagnassola

2.  Stephen cagnassola and his Safe money
umpire group have practiced the art of
financial planning through the generations.
Their approach is customized and unique to
each family, listening to client goals and
addressing individual objectives of them.

3. • 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.
• Credit card debt has tripled in past two decades, and the
average American household owes more than $9,000
($2600 in 1989).

4. • 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
2006 financial knowledge survey

5. What is Financial Literacy?

6. • 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

7.  Key areas of personal finance:
• Money & income
• Spending & debt
• Savings & investments
• Risk management
• Life’s milestones

8. Money & Income

9. • Time is money
• How many hours do you need to work to pay
for your mortgage, car insurance, electricity
bills, extras, etc?

10.  Developing a budget:
• A plan for coordinating income and expenses
• No average budget to follow
• Unique to your financial situation
• Depends on set savings/spending priorities

11.  Budget exercise:
 • Enter your net income or take-home monthly income.
 • Enter your fixed expenses, such as car payments and
rent.
 • Enter your flexible expenses, using figures you gathered
 from a typical month, such as your phone or electricity bill.
 • Enter your discretionary expenses, such as clothing and
 entertainment.
 • Enter the amount you put into savings.
 • Now total all of your expenses and your savings and
subtract
 this total from your net income.
• If you have money left over, you may
 want to use it to increase your savings.

12. Spending & Debt

13. • Weigh benefits and costs of spending
alternatives
• Credit can be a friend — and not a foe —
as a basic financial tool

14. Use credit wisely:
• Beware of credit card intro rates
• Avoid having multiple credit cards
• Pay in full every month
• Pay on time
• Avoid cash advances

15. Use credit wisely:
• Stay within your credit limit
• Review your statements carefully
• Protect your credit history
• Report lost/stolen cards immediately
• Protect personal information
• Access and review your free credit report annually at
www.annualcreditreport.com

16. How to reduce debt:
• Cut back on spending
• Consolidate your debt
• Seek out payment options
• Don’t miss payments or default
• Homeowners: use your equity
• Home equity credit is often cheaper

17. Saving & Investing

18. • Saving means not spending money.
• Investing means that you earn a return on
the money you put into it.

19.  Saving money:
• Save on a regular basis
• Willpower + a good plan = success
• You’ll feel the power
• You’ll be motivated

20. Small changes add up:
• Get out your piggy bank– again!
• Feed the Pig
• Small amounts add up
to big savings

21.  7 steps to get started:
• Think small
• Be consistent
• Make it easy
• Pay yourself first
• Allow for slip-ups
• Team up
• Congratulate yourself

22. Small money saving tips:
• Brew your own coffee — at 1/8th the price of latte
• Cook on the weekends; eat portions during the week
• Borrow library DVDs; save on rental and cable fees
• Use your own bank’s ATMs; avoid other banks’ charges
• Find out whether your health insurer covers gym dues
• Don’t spend your next raise; bank it
• Sign up for payroll deductions
• Invest in savings bonds or CDs
• Sign up for payroll direct deposit

23.  Investing money:
• Compound interest
• Rule of 72
• Planning for wealth
• Make the most of a 401(k)

24.  Short-term investment options:
• Certificate of Deposit (CD)
• Money Market Funds
• Savings Account

25.  Long-term investment options:
• Mutual fund
• Stocks
• Bonds

26. Risk Management

27. • Insurance
• Identity theft

28.  Health care insurance:
• Types of Managed Care Plans
◦ Health Maintenance Organizations (HMOs)
◦ Preferred Provided Organizations (PPOs)
◦ Point-of-Service Plans (POS)

29.  Long-term disability insurance:
• Benefit amount
• Term
• Elimination period
• Noncancelable
• Guaranteed renewables
• Own vs. any occupation
• Workers’ compensation
• Social security disability
• Veterans benefits
• Federal Employees Retirement System

30.  Life insurance:
• Choosing coverage
◦ premiums
◦ family need
◦ time period
• Term vs. Permanent

31.  Permanent life insurance options:
• Whole life
• Universal life
• Variable life

32.  Identity theft:
• Make a list of all of your credit cards, and store in a
secure place that is easily accessible.
• Keep your credit card in sight when you use it to pay
for a purchase, if possible.
• Don't carry your birth certificate or Social Security card
in your wallet.
• Install a locked mailbox to prevent mail theft.
• When dining out, keep your purse or wallet secure.
• Use drive-through ATMs or use only in safe, well-
trafficked area, if possible.

33. Life’s Milestones

34. Financial Literacy:
Knowing What You Need To
Know To Achieve Your Financial
Goals