This document provides information about financial literacy and personal finance topics for young adults. It discusses Global Money Week, which teaches children and youth about money topics. It also discusses the importance of financial capability as a life skill and includes links to resources on essential life skills. The document then discusses various personal finance topics like compound interest, investing, credit, budgeting, and insurance. It includes quizzes, worksheets, and other resources for young adults to improve their financial literacy.
Financial Empowerment Seminar with focus on
1. Causes of Business Failures
2. Retirement Planning /Life after Work-Life
3. Overcoming Financial Challenges in Retirement
In this write-up, I discuss an engineering (methodical) approach to personal finance. I introduce the concept as growing wealthy using an engineering approach. I then describe the parts of the approach in some detail. A full presentation that follows this approach can be found below.
Financial Empowerment Seminar with focus on
1. Causes of Business Failures
2. Retirement Planning /Life after Work-Life
3. Overcoming Financial Challenges in Retirement
In this write-up, I discuss an engineering (methodical) approach to personal finance. I introduce the concept as growing wealthy using an engineering approach. I then describe the parts of the approach in some detail. A full presentation that follows this approach can be found below.
Rentry students 10 sound money management principles ppt.pptetebarkhmichale
MU/CBE/ACFN BANKING PRICIPLES AND PRACTICES Page 5
CHAPTER ONE
AN OVERVIEW OF BANKS AND THEIR FUNCTIONS
1.1 Introduction:
Modern commercial banking, in its present form, is of recent origin. Though bank is
considered to be an ancient institution just like money. Its evolution can be traced in
the functions of money lender, the goldsmiths and the merchants.
A bank has been often described as an institution engaged in accepting of deposits and
granting loans. It can also be described as an institution which borrows idle resources,
makes funds available to. It does not refer only to a place of lending and depositing money,
but looks after the financial problems of its consumers. In simple words, banking can be defined
as the business activity of accepting and safeguarding money owned by other individual and
entities, and then lending out this money in order to earn a profit.
This era is the age of specialization with the changing situation in the world
economy, banking functions have broadened.
Financial institutions which are shaped by the general economic structures of the country
concerned vary from one country to another. Banks are among the most important financial
institutions in the economy and are the principle sources of credit.
1.2 . Meaning of Banking
Here are a few of definitions given by well known scholars:
Bank is a manufacturer of credit and machine for facilitating exchanges.
A bank is a person or corporation which holds itself out to receive from the public
deposits and payable of demand by cheque.
Banks are institutions whose debts usually referred to as ‘Bank Deposits’ are
commonly accepted in final settlement of other people debts.
A bank is an establishment which makes to individuals such advances of money as
may be required and safely made and to which individuals entrust money when not
needed by them for use.
MU/CBE/ACFN BANKING PRICIPLES AND PRACTICES Page 5
CHAPTER ONE
AN OVERVIEW OF BANKS AND THEIR FUNCTIONS
1.1 Introduction:
Modern commercial banking, in its present form, is of recent origin. Though bank is
considered to be an ancient institution just like money. Its evolution can be traced in
the functions of money lender, the goldsmiths and the merchants.
A bank has been often described as an institution engaged in accepting of deposits and
granting loans. It can also be described as an institution which borrows idle resources,
makes funds available to. It does not refer only to a place of lending and depositing money,
but looks after the financial problems of its consumers. In simple words, banking can be defined
as the business activity of accepting and safeguarding money owned by other individual and
entities, and then lending out this money in order to earn a profit.
This era is the age of specialization with the changing situation in the world
economy, banking functions have broadened.
Financial institutions which are shaped by the general economic structures of the country
concerned vary from one count.
Rentry students 10 sound $ mgt principles.pptetebarkhmichale
Modern commercial banking, in its present form, is of recent origin. Though bank is
considered to be an ancient institution just like money. Its evolution can be traced in
the functions of money lender, the goldsmiths and the merchants.
A bank has been often described as an institution engaged in accepting of deposits and
granting loans. It can also be described as an institution which borrows idle resources,
makes funds available to. It does not refer only to a place of lending and depositing money,
but looks after the financial problems of its consumers. In simple words, banking can be defined
as the business activity of accepting and safeguarding money owned by other individual and
entities, and then lending out this money in order to earn a profit.
This era is the age of specialization with the changing situation in the world
economy, banking functions have broadened.
Financial institutions which are shaped by the general economic structures of the country
concerned vary from one country to another. Banks are among the most important financial
institutions in the economy and are the principle sources of credit.
1.2 . Meaning of Banking
Here are a few of definitions given by well known scholars:
Bank is a manufacturer of credit and machine for facilitating exchanges.
A bank is a person or corporation which holds itself out to receive from the public
deposits and payable of demand by cheque.
Banks are institutions whose debts usually referred to as ‘Bank Deposits’ are
commonly accepted in final settlement of other people debts.
A bank is an establishment which makes to individuals such advances of money as
may be required and safely made and to which individuals entrust money when not
needed by them for use.
MU/CBE/ACFN BANKING PRICIPLES AND PRACTICES Page 6
All the above definitions are reflect the purpose of banks and function of banks that given by
different scholars; however a single definition is needed to understand the corporate image of
different banks in one definition; so that the definition provided below is concretely elaborate,
what banking does it mean?
In simple words, banking can be defined as the business activity of accepting and safeguarding
money owned by other individual and entities, and then lending out this money in order to earn a
profit
Banking is defined as the accepting, for the purpose of lending, or investment of deposits, money
from the public, repayable on demand or otherwise and withdraw able by cheque, draft, or order.
On the other hand a bank is a financial institution which deals with deposits and advances and
other related services. It receives money from those who want to save in the form of deposits and
it lends money to those who need it. It bridges the gap between the savers and borrowers. The
provision of deposit and loan products normally distinguishes banks from other types of financial
firms. Deposit products pay out money on demand or after some notice. Deposits are liabilities
for banks.
How To Manage Finances & Funding for Educational InstitutionsProcurify.com
Every organization and every person has a spend culture.
Spend culture is a set of shared beliefs and practices that informs a person how, why and when money should be spent.
Whether planned or random, all organizations have a spend culture.
Culture is fluid. It evolves with time and with each additional person. Understanding your spend culture and how it affects the people who work in your organization will influence how much value you get out of your spending.
Find out what your Spend Culture is: https://spendculture.procurify.com/
This self-paced course is designed to provide you with a basic understanding of personal financial management to help you meet life's challenges and opportunities in college and in life. Major topics covered include: financial planning; budgeting; information on the various sources of financial aid; credit use; standards of progress for financial aid eligibility; affording the loan debt that you have borrowed; using your maximum credit wisely; and retirement planning. Students will be provided with information that will enhance their knowledge and skills to assist them with making more informed decisions that are related to various practices as they pursue their education at Madison College.
Inflation Causes, Impacts, Mitigation Strategies, and BenefitsBarbara O'Neill
60-minute webinar for AFCPE on 05/11/23 that discusses the causes and impacts of inflation and several dozen strategies to mitigate the effects of higer prices on household budgets.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
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Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
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#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
The European Unemployment Puzzle: implications from population aging
Global Money Week Talk on Young Adults and Money-03-15
1. What Young Adults
Need to Know
About Money
Barbara O’Neill, Ph.D., CFP®
oneill@aesop.rutgers.edu
Twitter: @moneytalk1
2. It’s Global Money Week!
Global Money Week (GMW) is a money awareness
celebration. The goal is to teach children and youth about
money, saving, creating livelihoods, gaining employment
and becoming an entrepreneur . GMW takes place annually,
during the second week of March. Events are organized by
schools, universities, government ministries, central banks,
financial institutions, and others. GMW is coordinated by
Child and Youth Finance International (CYFI).
4. Financial Capability is an
Important Life Skill
• Dr. Ehrenfeld’s 2012 Executive Dean’s
Distinguished Lecture: “Reinventing the
University for the 21st Century”
• Key themes:
– Natural resources are reaching critical limits.
– The university must prepare its students to live this
new and dangerous environment
– Students need to learn to be more self-sufficient and
less dependent on the global economy
5. More on Essential Life Skills
• Dr. Ehrenfeld Lecture Summary/Video:
http://discovery.rutgers.edu/events/2012/davidehr
enfeld.html
• Essential life skills include personal finance,
growing food, basic cooking, basic home repairs,
basic health care, computer trouble-shooting,
clothing repairs, and bartering/labor exchange
• SEBS Personal Finance class:
http://rci.rutgers.edu/~boneill/
6. How Much Do You Know
About Personal Finance?
Take the FINRA National Financial
Capability Study Knowledge Quiz:
http://www.usfinancialcapability.org/quiz.php
7. National Financial Capability
Study Knowledge Quiz
Five financial literacy
quiz questions:
– Interest rate
question
– Inflation question
– Bond price
question
– Mortgage
question
– Risk question
Number of
correct answers 2009 2012
None 7% 7%
One 11% 12%
Two 17% 19%
Three 24% 23%
Four 27% 25%
Five 15% 14%
Average number
correct 2.99 2.88
http://www.usfinancialcapability.org/quiz.php
8. The Two Sides of
Compound Interest
• When you invest,
compound interest
is your friend :-)
• When you pay
interest on credit
cards and loans,
compound interest
is your enemy :-(
9. Information Resource:
Jump$tart Coalition for
Personal Financial Literacy
• Washington DC-based non-profit
• Promotes financial literacy for students
from pre-K to college age
• The NJ Coalition for Financial Education is
a state affiliate of national Jump$tart
10. Jump$tart’s Twelve Principles
of Personal Financial Literacy
• Twelve principles for young adults to
become financially successful
– http://jumpstart.org/12-principles-calendars.html
• Available as a calendar in PDF format:
– http://jumpstart.org/assets/files/12%20Principle%20
Calendars/2012_J$_Calendar-time-CM.pdf
11. The Twelve Principles
• Know your take-home pay
• Pay yourself first
• Start saving young
• Compare interest rates
• Don’t borrow what you
can’t repay
• Budget your money
• Money doubles by “The
Rule of 72”
• High returns equals high
risks
• Don’t expect something
for nothing
• Map your financial future
• Your credit past is your
credit future
• Stay insured
12. 1. Know Your Take-Home Pay
• Take-Home Pay = Net Pay = Disposable
Income
– Amount of income remaining after mandatory
deductions (e.g., taxes) and withholding
• Discretionary Income
– Money left after paying household expenses
– Include savings for goals as an “expense”
• Know these numbers before committing to
large expenses
13. 2. Pay Yourself First
• Treat savings as a household “expense”
• Give it the priority of a car loan payment
• Make savings automatic
– Employer retirement savings plans
– Mutual fund and DRIP stock automatic
investment plans
– Checking to savings transfers
– Need more ideas? See
http://www.americasaves.org/
14. 3. Start Saving Young
Source: TIAA-CREF; assumes an 8% average annual return
Time + Money = Magic!
18. Rule of Three
Credit Card Comparison
• See Personal Finance class assignment
http://rci.rutgers.edu/~boneill/assignments/creditcard.html
• Key Criteria:
– Annual fee
– Late fee
– Over-the-limit fee
– Method for computing balance
– Rewards for use
– APR
19. Key Credit Terms
• Finance charge
– Total dollar amount you pay to use credit
– Includes interest costs and fees, such as service
charges or credit-related insurance premiums
• Annual Percentage Rate (APR)
– Percentage cost of credit on a yearly basis
– Key to comparing costs when shopping for rates
– “Apples to Apples” comparison required by law
It is important to shop around for credit
20. 5. Don’t Borrow What You
Can’t Repay
Debt stinks! (http://www.itsahabit.com/musiccd.html)
– Ties up future income
– Prevents people from saving
– Costs money (interest and fees)
– Can lead to repossession, foreclosure, bankruptcy
– Causes physical symptoms of stress
21. What is the Worst Credit
Card Trap of All?
• Teaser rates?
• Default rates (penalty APRs)?
• Late fees?
• Over-the-limit fees?
• Minimum payments?
22. The High Cost of Minimum
Payments
Data derived from Credit Card Smarts calculator
23. Warning Signs of Debt Problems
• Paying only the minimum balance each month
• Trouble even paying the minimum amount due
• Total balance increases every month
• Missing loan payments or paying late
• Using savings to pay for necessities
• Getting second or third payment notices
• Borrowing money to pay old debts
• Exceeding the credit limits on your credit cards
• Denied credit due to a bad credit report
24. Two Simple Student
Loan Guidelines
• Limit total student loan debt at graduation
to < starting salary for first post-college job
• Estimate monthly student loan payments
as 1% of loan balance
– Example: $30,000 debt = $300/month
payment
25. 6. Budget Your Money
• Spending Plan Worksheet:
http://njaes.rutgers.edu/money/pdfs/fs421worksheet.pdf
• Positive Cash Flow: Income > Expenses
– Increase income
– Reduce expenses
– Do both
26. Seven Step Budgeting Process
1. Set financial goals and identify required savings
2. Estimate income from all sources
3. Budget an emergency fund and goal savings
4. Budget fixed expenses (include 1/12 occasional expenses)
5. Budget variable expenses
6. Record spending amounts
7. Review spending and saving patterns
Review financial progress
Revise goals and budget allocations
28. 7. Money Doubles By
“The Rule of 72”
• Calculates the number of years it takes for principal to
double
– Number of Years = 72 divided by interest rate
– Example: 72 ÷ 6% = 12 years
• Calculates the interest rate it takes for principal to
double
– Interest rate = 72 divided by number of years
– Example: 72 ÷ 10 = 7.2%
http://www.moneychimp.com/features/rule72.htm (calculator)
29. The Rule of 72
Source: Garman/Forgue, PERSONAL
FINANCE, Fifth Edition
30. 8. High Returns Equals High
Risks
Source:
Garman/Forgue,
PERSONAL
FINANCE, Fifth
Edition
32. 9. Don’t Expect Something
For Nothing
If it sounds too good to be
true, it probably is”
• Phishing scams
• “Pump and dump” scams
• “Free lunch” seminars
• “Guaranteed” returns > other investments
• Exotic sounding deals
• Exclusive, limited-time offers
33. 10. Map Your Financial Future
• Be a “future-minded” planner
• Set SMART Goals:
http://njaes.rutgers.edu/money/pdfs/goalsettingworksheet.pdf
– Short-Term: Under 3 years
– Medium-Term: 3 to 10 years
– Long-Term: 10 or more years
• Match savings/investments to goals
• “What you think about, you bring about”
34. Net Worth Statement
• A financial statement that reports what an
individual or family owns and owes as of a
specific date
• Also called:
– Balance sheet
– Statement of financial position
Items of Value
(what you own) -
Amounts owed
(what you owe)
Net Worth
(your wealth)=
35. 11. Your Credit Past is Your
Credit Future
• People with low credit scores pay more to
borrow money
– FICO score range: 300 (low) to 850 (high)
• Negative information stays on your credit
report for 7 years (bankruptcy- 10 years)
• Credit scores are used in job hiring, car
insurance premiums, apartment rentals
36. Credit Scoring Factors
• Bill payment history, weighted to
emphasize past 12 months (35%)
• Proportion of outstanding debt to
available credit limits (30%)
• Length of credit history (15%)
• Number of recent credit inquiries (10%)
• Mix of types of credit used (10%)
37. 12. Stay Insured
• Health insurance: “Age 26 law” (federal), NJ
“Dependent Under 31” law,
http://www.state.nj.us/dobi/division_consumers/du31.html
• Also, COBRA, ACA exchanges:
https://www.healthcare.gov
• Life insurance (if dependents or co-signers)
• Disability insurance
• Renter’s and auto insurance with adequate
liability limits (at least $300,000)
38. Closing Messages
• You are a “Millionaire in the Making”
• Time + Money = Magic!
• Compound interest can be your best
friend or your worst enemy
39. Financial Education Resources
For College Students
• Money Smart for Young Adults (FDIC):
http://www.fdic.gov/consumers/consumer/moneysmart/young.html
• NEFE Cash Course: http://www.cashcourse.org/
• Love Your Money: http://loveyourmoney.org/
• Money Skill: http://www.moneyskill.org/
• SEBS Personal Finance Course: http://rci.rutgers.edu/~boneill/
• Rutgers Cooperative Extension: http://njaes.rutgers.edu/money/