This document provides an overview of the Personal Management merit badge presentation by Robert Casto. It outlines the requirements covered, including developing a savings plan for a major purchase, tracking expenses and income in a budget for 13 weeks, and discussing concepts like emotions around money, buyer's remorse, and charitable giving. The presentation encourages participation, asks attendees about their financial experiences, and provides examples and discussions to help scouts complete some of the badge requirements.

1. Personal
Management
1
An Eagle Required
Merit Badge
Merit Badge Presentation by Robert Casto

2. Robert Casto
casto.robert@gmail.com
513-759-0633
Troop 952
Dan Beard Council
Cincinnati, OH
Instructor / Presenter

3. Why Eagle Required
Personal management is about mapping a
plan for your life that will involve setting
short-range and long-range goals and
investigating different ways to reach those
goals. Education, training, and experience all
help make your goals become a reality. To
achieve your goals, you will choose the best
path and make a commitment to it, while
remaining flexible enough to deal with
changes and new opportunities.

4. Participation and Content
• Participation is expected and encouraged
• Don’t be afraid to ask questions
• This is not a boring subject unless you want it
to be. Your attitude will decide.
• There will be a lot of reading and discussion,
but I have some surprises too.

5. Disclaimer
Any statements made today are the opinions
of the instructors. We are not financial
professionals and our recommendations
should be carefully evaluated by your own
research and discussion with a financial
professional.
IANA(L|D|FA|SB|N)
I am not trying to sell anything.

6. Let’s Get Started
 Pay attention
 Have fun
 Scouts are courteous and kind
 Learn
 Ask Questions
– Even if it isn’t in the MB book

7. Introduction
 How many of you:
 Have a credit card?
 Have made a major purchase like a car?
 Have a retirement plan?
 Know the difference between growth and
income producing stock?
Most people between 11-17 have none of these,
or know anything about them.

8. Older means more responsibilities
 For most of you HS graduation is just around
the corner or a few years away!
 Some may go directly to work, full time or
part time, some may go to college!
 Either way, you’ll be responsible for taking
control of your life!
– Managing money and finances
– Managing time

9. Adult Handbook
 Doesn’t exist, but personal management can help you
succeed where others fail.
 Just because you’re older doesn’t mean you’re wiser!
 When you’re 18 you can sign contracts!
– These are legally binding
– “I didn’t know what I was signing” won’t get you off the
hook if you make a mistake.
 Many adults get themselves into money troubles
through poor financial decisions.
– Knowledge is power to control your future.
– Must live with your choices and their
consequences.

10. Lots of Homework
 1: Discuss large purchase with family
 2: Track your budget for 13 weeks
 8: Track your time for 7 days
 9: Plan a project
 You will start the work here if you haven’t already
and will have to complete this requirement later.
 My email is casto.robert@gmail.com
 If you have already completed,
present to me at the end of class

11. Requirement 1
Do the following:
a) Choose an item that your family might want to purchase that is
considered a major expense.
b) Write a plan that tells how your family would save money for the
purchase identified in requirement 1a.
1. Discuss the plan with your merit badge counselor.
2. Discuss the plan with your family.
3. Discuss how other family needs must be considered in this plan.
c) Develop a written shopping strategy for the purchase identified in
requirement 1a.
1. Determine the quality of the item or service (using consumer publications
or ratings systems).
2. Comparison shop for the item. Find out where you can buy the item for the
best price. (Provide prices from at least two different price sources.) Call
around; study ads. Look for a sale or discount coupon. Consider
alternatives. Can you buy the item used?
Should you wait for a sale?

12.  Pick a major item that your family
would like to buy
 Automobile
 Appliance
 Boat
 Furniture
 Vacation
 You want to pick something that
will take a while to save for
 How long? Expensive enough so it
takes 6-12 months of saving.
Requirement
1a
Item that
is a major
expense

13. • Document how you are going to
save the money needed to make
this major purchase
• The amount saved each week or
month should be reasonable and
not jeopardize family needs
• Special activities to generate
money?
• What contributions can each
member of the family make?
Requirement
1b
Write a
savings
plan

14. • Sales, price reductions, seasonal
discounts, phase outs, etc
• Comparison shop: Check at least
3 stores our sources for the item
• Consider alternatives such as
used, older version, smaller,
fewer features
Requirement
1c
Develop a
shopping
strategy

15. Canon EOS Rebel T5
• Research
– ConsumerReports
– Review Websites
– Amazon Reviews
• Pricing
– Amazon : $399
– Newegg : $399
– Ebay: $259.99 Used
• Savings
– $20 / week = 20 weeks, 13 for Ebay
Requirement
1c
Example
Large
Purchase

16. Requirement 2
Do the following:
a) Prepare a budget reflecting your expected income
(allowance, gifts, wages), expenses, and savings. Track
your actual income, expenses, and savings for 13
consecutive weeks. (You may use the forms provided in
this pamphlet, devise your own, or use a computer-
generated version.) When complete, present the results
to your merit badge counselor.
b) Compare expected income with expected expenses.
1. If expenses exceed income, determine steps to balance your
budget.
2. If income exceeds expenses, state how
you would use the excess money
(new goal, savings).

17. • What is a budget?
– Plan for how money will be used
• Income : Money that is received
• Expenses : Money that is paid
• Net : Amount left over after
tallying all income and expenses
– Goal is to never go negative
– Live within your means
Requirement
2
What is a
Budget?

18. Requirement
2
Example
Family
Budget

19. • Goal is to manage our money
• Organize information so we can
make informed decisions
• What decisions do we need to
make?
– Saving for a specific goal
– Determining if income is sufficient
– Investing for the future
– Building a safety cushion
• Preparing a budget is the first
step in Money Management
Requirement
2
Budget

20. • Think of a budget in terms of
your goals
• Most of us want to plan ahead
and avoid negative consequences
• With our goals and plans, we can
turn that into an action plan
• A budget is a plan that lets us
obtain the financial goals we set
Requirement
2
Personal
Budget

21. • What happens if you don’t stay
within your budget?
• What does a poorly managed
budget look like?
• If you do not have enough
money, what can you do?
• How do you handle the big
purchases like college, car,
house?
• What if you forget something?
Requirement
2
Budget
Checkpoint

22. Requirement 3
Discuss with your merit badge counselor FIVE of the following concepts:
a) The emotions you feel when you receive money.
b) Your understanding of how the amount of money you have with you
affects your spending habits.
c) Your thoughts when you buy something new and your thoughts about the
same item three months later. Explain the concept of buyer’s remorse.
d) How hunger affects you when shopping for food items (snacks, groceries).
e) Your experience of an item you have purchased after seeing or hearing
advertisements for it. Did the item work as well as advertised?
f) Your understanding of what happens when you put money into a savings
account.
g) Charitable giving. Explain its purpose and your thoughts about it.
h) What you can do to better manage your money.

23. • How do you feel when you
receive money?
• Is the feeling the same when the
amount is small or large?
• What is your first impulse with
that money?
• How do you feel about $50 you
worked for compared to
received as a birthday present?
Requirement
3a
Emotions

24. • If you have a small amount of
money, how would you spend it?
• Now consider you have 10x that
amount? How would you spend it?
• What things do you have give up
with little money?
• What new things would you
consider buying having more
money?
• Do you buy more or less?
• Do you buy name brand vs generic?
Requirement
3b
How
amount of
money
affects
spending
habits

25. Requirement
3c
Buyer’s
Remorse
• The sense of regret after having
made a purchase.
• Why do you feel bad later?
– Worried you paid too much
– Could have gotten something
better
– Ended up not using it
– Someone else got one
• Can you ever eliminate it?

26. Requirement
3c
Remorse
Cost
• Cars
– Sign and it is a done deal
– Depreciate the moment you drive it away
• Vacations
– Cancelation fees
– Penalties for late changes
• Electronics
– Short return periods
– Must have packaging or unopened
• Real Estate
– Loose earnest money
– Right of rescission (lose expenses)
• Contracts
– Must pay remaining period (phone & rent)
– May have early termination fees

27. Requirement
3d
How
hunger
affects
shopping
• You feel deprived
• Will buy more than you need
• Will buy food less healthy
• Less concerned about cost
– Easier to justify the expense
– Hard to think about long term
http://www.forbes.com/sites/kateashford/
2015/02/25/shopping-hungry/

28. • Ads are a $70B business (just TV)
• Not a call to do something
immediately
• We respond negatively to straight
attempts at persuasion
• So ads must be subtle and leave
impressions
• They create positive memories and
feelings
• How do you feel after seeing
/hearing an ad?
• When does an ad work its magic?
• What makes a good ad?
Requirement
3e
Experience
after
hearing
ads for
something

29. • Place to keep money
• Bank pays interest while holding
• Very liquid, money always
available
• Insured up to $250k by FDIC
• Accessible in person and debit
card if offered
• Local and Internet choices
– Differentiated by interest rates,
location, accessibility, minimum
deposit/balance, fees, ATM’s
Requirement
3f
Savings
Accounts

30. Requirement
3f
How is
Interest
Paid?

31. Requirement
3f
How
Banks
Create
Money

32. Requirement
3g
Charitable
Giving
• Purpose?
– Support a valued cause
– Reduce tax burden
• 4 Tips from Warren Buffett
1. Relevance
– What issue do you care about?
– Where do you want to make a difference?
– Solve a specific problem?
2. Impact
– Money to one or multiple recipients?
– Offer time instead of money?
– Local, national, or international?
3. Sustainability
– What other sources of revenue do they have?
– Nonprofits don’t need to solicit money
– Beware underpaid leadership, perform poor
4. Management & Operations
– Strong board of directors
– Safe, clean, and inviting facilities
– Clear mission and communications
– Consistent financials and open accountability

33. Requirement
3h
What can
you do to
better
manage
money?
• Track your monthly spending
• Develop a budget you can follow
• Budget for savings (Rainy Day)
• Pay bills and avoid late charges
• Review credit report yearly
• Eliminate debt
• Take advantage of free money
– Matching contributions
– Lower tax obligations
• Use safe financial institutions
• Follow long term strategies

34. Requirement 4
Explain the following to your merit badge
counselor:
a) The differences between saving and investing,
including reasons for using one over the other.
b) The concepts of return on investment and risk.
c) The concepts of simple interest and compound
interest and how these affected the results of
your investment exercise.

35. Saving Investing
Short Term
For near purchases, goals,
emergencies, safety.
Long Term
Saving for big goals, no need
for the money short term.
Ready Access
Short time needed to get to
the money. Will be there
when you need it.
Limited Access
Difficult to get access to, may
have penalties, or legal
ramifications
Minimal Risk
Insured by FDIC for $250k,
principle is safe.
Higher Risk
Possible to loose some or all
of your invested money.
Earns Interest
Bank pays interest determined
ahead of time, sometimes
based on size of deposit .
Profit Potential
Money can grow without limit
through appreciation and
other types of income.
Requirement
4a
Saving
vs
Investing

36. • Abbreviated as ROI
• Used to compare the efficiency of
different investments
• Also viewed as profit / cost
• Measure is a percent
• Example
20% = ($1200 - $1000) / $1000
• Limited as it doesn’t consider time
Requirement
4b
Return on
investment
and risk

37. Requirement
4c
Simple
vs
Compound
Interest

38. Requirement 5
Select five publicly traded stocks from the business
section of the newspaper. Explain to your merit
badge counselor the importance of the
following information for each stock:
a) Current price
b) How much the price changed from the previous
day
c) The 52-week high and the 52-week low prices

39. Requirement
5
Common
Stocks

40. Current price to buy a share of the stock
Change from previous day’s price
Range: High and low price for the day
52 week: High and low price last 52 weeks
Open: Starting price for the day
Vol / Avg: Number of shares sold and how many are
usually traded in a day
Mkt cap: Value of the company (shares * price)
P/E: Profit divided by earnings. Used to compare
different companies
Div/yield: Latest dividend and effected rate over the
course of a year
EPS: Earnings per share
Shares: Number of shares outstanding
Beta: Measure of risk in relation to the market
Inst own: Percentage of shares held by institutions
Requirement
5
Important
Numbers

41. Requirement 6
Pretend you have $1,000 to save, invest, and help
prepare yourself for the future. Explain to your
merit badge counselor the advantages or
disadvantages of saving or investing in each of the
following:
a) Common stocks
b) Mutual funds
c) Life insurance
d) A certificate of deposit (CD)
e) A savings account or U.S. savings bond

42. • Advantages
– Potential for growth
– Unlimited income potential
– Can also return interest (dividends)
– Lots of choices
– Benefits those who choose well
• Disadvantages
– Can lose initial investment
– No guaranteed profit
– Must setup an account
– Per transaction fees
– Could be difficult to sell
Requirement
6a
Common
Stocks

43. Requirement
6b
Mutual
Funds
• Advantages
– Same as stocks
– Less risk spread on many stocks
– Less research needed
– Dividend reinvestment
– Lower cost of entry
• Disadvantages
– Same as stocks
– Expenses to pay managers
– Less potential gain
– Less control over choices
– Limits on buy/sell frequency

44. Requirement
6c
Life
Insurance
• Advantages
– None, not an investment. It is an
expense. Used to provide a
benefit in the event of death.
– Fixed value of the policy
– Heavily regulated by government
• Disadvantages
– Not an investment
– Some policies are complex and
give poor returns
– Need to continue paying
premiums to keep benefits

45. Requirement
6d
Certificate
of Deposit
(CD)
• Advantages
– Considered very safe
– Easy to buy from a bank
– Predictable rate of return
– Wide selection of maturities
– Can automatically reinvest
– Insured by FDIC
– Better return than savings account
• Disadvantages
– Require set time frame
– Early withdrawal penalties
– Low rates of return for short time
frames
– Inflation risk as rates fall behind

46. Requirement
6e
Savings
Account
or U.S.
Savings
Bond
• Advantages
– Generally exempt from state income tax
– May be exempt from federal income tax
– Virtually guaranteed rate of return
– EE bonds bought at ½ face value
– Earn interest for up to 30 years
• Disadvantages
– Taxed if not used for education
– Only usable toward tuition and fees
– Maximum annual purchase of $10k
– Income limits to avoid taxes at redemption

47. Requirement 7
Explain to your merit badge counselor the following:
a) What a loan is, what interest is, and how the annual
percentage rate (APR) measures the true cost of a
loan.
b) The different ways to borrow money.
c) The differences between a charge card, debit card, and
credit card. What are the costs and pitfalls of using
these financial tools? Explain why it is unwise to make
only the minimum payment on your credit card.
d) Credit reports and how personal responsibility can
affect your credit report.
e) Ways to reduce or eliminate debt.

48. Requirement
7a
Loans
Interest
APR
• Loan: Something borrowed, especially a
sum of money expected to be paid back
– E.g. Money from a bank to buy a car,
house, or other large item
• Interest: Money paid regularly at a
particular for the user of the money lent,
or for delaying the repayment of the debt
– E.g. 12% a year would be 1% per month
• APR: Annual percentage rate is the actual
percent of interest you will pay in the
course of a year
– The balance of your loan can be
calculated daily which is 12/365% or
.033%. This is charged on the balance
daily and ends up being more than the
advertised rate of 12%

49. Requirement
7b
Ways to
borrow
money
Bank Loan: Sign contract with bank, fixed rate
Credit Union: Same as bank but better terms
Secured Loan: Large item guarantees amount
borrowed
Credit Cards: 0% new purchase or low rate cards
Cash Advance: Cash from credit card, high rate
Payday Loans: Short term, high rate, charges if
late
Family & Friends: Negotiable terms and rates
Social Lender: Online sites doing micro loans
like kiva.org. Also called peer to peer loan.
HELOC: Borrow against the equity in your home
Margin Loan: Borrow against value of stocks
Pawn Shop: Give them something, they give you
cash, you pay off to get item back or they
keep it
Tax Loan: Borrow against expected tax refund

50. Requirement
7c
Charge
Credit
Debit
CARDS
• A credit card is an unsecured loan
• More convenient than carrying money
– Don’t have to have full amount in cash
– Safer if it gets stolen
• Many charge no interest if paid in full
monthly
• High interest rates on balances
• Low minimum payments
• Expensive to get cash

51. Requirement
7d
Credit
Reports
• Record of a borrower’s
credit history reported by
lenders
• 3 Reporting Agencies
– Equifax, Experian, Trans
Union
• Fair Credit Reporting Act
– Free copy from each every 12
months
– https://www.fdic.gov/consume
rs/consumer/ccc/reporting.ht
ml

52. Requirement
7d
Credit
Report
Items
• Payment history of loans
– Company, dates, limit,
balance, payments, requests

53. Requirement
7e
Reduce or
Eliminate
Debt
“Those who understand interest earn it, those who don’t, pay it.”
– Albert Einstein
•
• 7 Strategies you can employ
1. APR: Best bang for the buck
2. Highest payment
3. Highest balance
4. Lowest number of payments
5. Lowest balance
6. Lowest payment
7. Custom: Mom & Dad first
http://www.zilchworks.com/debt-reduction-strategies.asp

54. Requirement 8
Demonstrate to your merit badge counselor your
understanding of time management by doing the following:
a) Write a “to do” list of tasks or activities, such as homework assignments,
chores, and personal projects, that must be done in the coming week. List these
in order of importance to you.
b) Make a seven-day calendar or schedule. Put in your set activities, such as
school classes, sports practices or games, jobs or chores, and/or Scout or place
of worship or club meetings, then plan when you will do all the tasks from your
“to do” list between your set activities.
c) Follow the one-week schedule you planned. Keep a daily diary or journal
during each of the seven days of this week’s activities, writing down when you
completed each of the tasks on your “to do” list compared to when you
scheduled them.
d) Review your “to do” list, one-week schedule, and diary/ journal to understand
when your schedule worked and when it did not work. With your merit badge
counselor, discuss and understand what you learned from this requirement and
what you might do differently the next time.

55. Requirement
8a
Time
Manage-
ment
• Create a list of all the tasks and
activities you have over the course
of the next week
• Ideas
– Homework
– Chores
– Projects
– Meetings
– Practice
• Do not include things like meals and
items you cannot avoid
• List in order of importance

56. Requirement
8b
Calendar
• Make a seven-day calendar adding items
such as
– School classes
– Sports practice
– Music practice
– Jobs
– Chores
– Club meetings
– Church
– Scout meetings
– Walk / feed dog
– Wake and bed time
• Plan when all the tasks from your “to
do” list will be done between your set
activities.

57. Requirement
8c 8d
Follow
Plan
Review
& Report
• Follow the schedule for one week
• Keep a daily diary or journal each day
• Write down when each task was
completed
• Review your “to do” list, one-week
schedule, and diary/ journal
• What worked and what didn’t?
• Write a letter to me presenting what
you learned from the experience and
what you might do differently the
next time.
• Mail or email the letter to me

58. Requirement 9
Prepare a written project plan demonstrating the steps below, including
the desired outcome. This is a project on paper, not a real-life
project. Examples could include planning a camping trip, developing
a community service project or a school or religious event, or
creating an annual patrol plan with additional activities not already
included in the troop annual plan. Discuss your completed project
plan with your merit badge counselor.
a) Define the project. What is your goal?
b) Develop a timeline for your project that shows the steps you must
take from beginning to completion.
c) Describe your project.
d) Develop a list of resources. Identify how these resources will help
you achieve your goal.
e) If necessary, develop a budget for your project.

59. Requirement
9
Written
Project
Plan
• Choose a project that will take time to complete
– NOTE: This is not a real-life project you have to do
– Some Examples Are …
• Canoeing , camping, hiking trip
• Community service project
• School or religious event or activity
• Get approval of project from counselor
• Write our project and e|mail to counselor
a) Define the project. What is your goal?
b) Develop a timeline for your project that shows the
steps you must take from beginning to completion.
c) Describe your project.
d) Develop a list of resources. Identify how these
resources will help you achieve your goal.
e) If necessary, develop a budget for your project.
• Rest of class time while signing cards can be
used to work on this requirement

60. Requirement 10
Do the following:
a) Choose a career you might want to
enter after high school or college
graduation.
b) Research the limitations of your
anticipated career and discuss with
your merit badge counselor what you
have learned about qualifications such
as education, skills, and experience.

61. Requirement
10
Careers
• Financial Careers
– Financial controller
– Accounting
– Purchasing
– Stock Broker
– Banker
• Time Management Careers
– Business Management
– Project Planning
– Logistics

62. My
Contact
Info
• EMAIL:
casto.robert@gmail.com
• POST:
7723 Tylers Place Blvd #180
West Chester, OH 45044
• Rest of class time is available to
work on requirement 9
• Great time to ask questions!