Reference

1. • Activity 1………………Saving vs. Investing
• Activity 2……….….Saving for a Rainy Day
• Activity 3……………………..1 + 1 = Saving
• Activity 4…..Investing for the Long Term

2. Money Management - Activity 1
ACTIVITY 1
Saving vs. Investing
Overview
• Saving vs. investing
• Information on a paycheck
• Making a financial plan
• Budgeting
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3. Slide 1 - Do You Save? Do You Invest?
Lesson Reference: Money Management, Activity 1 – Overhead 1
DO YOU SAVE?
DO YOU INVEST?
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4. Slide 2 - Saving vs. Investing
Lesson Reference: Money Management, Activity 1 – Overhead 2
SAVING VS. INVESTING
Saving
• Short-term.
• Postpones spending.
• Has safety precautions.
Investing
• Long-term.
• Exchanges money for something with the future
expectation of receiving a profit.
• Has risk factors.
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5. TAKE A GOOD LOOK AT A PAYCHECK
Slide 3 – Paycheck
Lesson Reference: Money Management, Activity 1 – Handout 1
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6. Slide 4 – Making a Successful Financial Plan
Lesson Reference: Money Management, Activity 1 – Handout 2
MAKING A SUCCESSFUL
FINANCIAL PLAN
1. Start as early as possible.
2. Set goals.
3. Include both short- and long-term strategies.
4. Support the plan with a practical, working
budget.
5. Review the plan on a regular schedule.
6. Do your homework while working on your plan.
7. Put the plan in writing.
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7. Slide 5 - Financial Plan Assistance
Lesson Reference: Money Management, Activity 1 – Overhead 3
FINANCIAL PLAN ASSISTANCE
• Bankers
• Certified Financial Planners
• Schools and Courses
• Peer Groups and Investment Clubs
• The Media
• The Internet
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8. • Savings & Investments
• Fixed Expenses
• Periodic Fixed Expenses
• Variable Expenses
• Debts
BUILDING MY
MONTHLY BUDGET
Slide 6 – Building my Monthly Budget
Lesson Reference: Money Management, Activity 1 – Handout 4
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9. Money Management - Activity 2
ACTIVITY 2
Saving for a
Rainy Day
Overview
• Reasons to save
• Concerns and issues with saving
• Where to save
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10. Slide 1 - Saving for a Rainy Day
Lesson Reference: Money Management, Activity 2 – Overhead 1
SAVING FOR A RAINY DAY
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11. Slide 2 - Reasons to Save
Lesson Reference: Money Management, Activity 2 – Overhead 2
REASONS TO SAVE
• Provide for unexpected emergencies.
• Purchase expensive items in the future.
• Ensure retirement.
• Plan for investment opportunities.
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12. Slide 3 – Concerns and Issues When Saving
Lesson Reference: Money Management, Activity 2 – Handout 1
CONCERNS AND ISSUES
WHEN SAVING
• Safety
• Restrictions
• Liquidity
• Earnings
• Taxes
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13. Slide 4 – Places to Save
Lesson Reference: Money Management, Activity 2 – Handout 2
PLACES TO SAVE
• Savings Accounts
• Money Market Accounts
• Certificates of Deposit (CDs)
• Savings Bonds
• Insurance
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14. Slide 5 - Looking at Places to Save
Lesson Reference: Money Management, Activity 2 – Overhead 3
LOOKING AT PLACES TO SAVE
On a scale of 1 to 5 (with 1 being low and 5 being high), rate the
following places to save your money.
Based on the above ratings, where would you save your money? Why?
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15. Money Management - Activity 3
ACTIVITY 3
1 + 1 = Saving
Overview
• Types of interest
• The impact of saving
• Savings regulations
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16. Slide 1 - Types of Interest
Lesson Reference: Money Management, Activity 3 – Overhead 1
TYPES OF
INTEREST
Which type of return on
your money would you
prefer?
What’s the difference?
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17. Slide 2 – Returns on Savings
Lesson Reference: Money Management, Activity 3 – Handout 2
IMPACT OF RETURNS ON SAVINGS
This chart shows what happens at several different rates to
$100 in an account when no money is withdrawn and
interest is compounded yearly.
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18. Slide 3 - Savings Regulations
Lesson Reference: Money Management, Activity 3 – Overhead 2
SAVINGS REGULATIONS
Federal Government Insurance
Deposits are potentially insured up to $100,000.
• FDIC (Federal Deposit Insurance Corporation)
• NCUA (National Credit Union Administration)
Truth in Savings Act
Financial institutions must disclose the following
information about their consumer savings accounts:
• Fees on accounts
• Interest rate
• General terms and conditions
Defines the year as 365 days for purposes of
determining the annual percentage rate of interest.
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19. Money Management - Activity 4
ACTIVITY 4
Investing for the
Long Term
Overview
• Reasons to Invest
• Investing Considerations
Investment Concerns
Places to Invest
• Online Money Management
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20. Slide 1 - Savings vs. Investing
Lesson Reference: Money Management, Activity 4 – Overhead 1
SAVING vs. INVESTING
SAVING
• Short-term.
• Postpones spending.
• Has safety precautions.
INVESTING
• Long-term.
• Exchanges money for something with the future
expectation of receiving a profit.
• Has risk factors.
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21. Slide 3 - Places to Invest
Lesson Reference: Money Management, Activity 4 – Overhead 3
PLACES TO INVEST
• Stocks
• Bonds
• Mutual Funds
• Retirement Plans
• Real Estate
• Collectibles/Valuables
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22. QUESTIONS TO ASK BEFORE
MAKING AN INVESTMENT
1. How safe is the investment?
2. What types of returns can I expect?
3. What kind of risk is involved?
4. Can I get my money back if I need it? How long will
it take and how much will it cost to get it back
quickly?
5. Are my investments in a variety of places to spread
my risks (diversification)?
Slide 4 – Questions to Ask
Lesson Reference: Money Management, Activity 4 – Handout 2
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23. INTERNET PRIVACY & SECURITY
• Avoid passwords or screen names that are
easy to guess.
• Change passwords often.
• Read privacy policies.
• Check online accounts often. Report unfamiliar
transactions.
• Do not open emails with unsolicited offers that
sound too good to be true.
Slide 5 – Internet Privacy & Security
Lesson Reference: Money Management, Activity 4 – Overhead 4
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