HOW TO MANAGE YOUR PERSONAL FINANCES<br />TO BECOME A MILLIONAIRE<br />Presented By<br />Spring Valley Middle School Girls...
The Truth About Millionaires Quiz<br />WHO WANTS TO BE A MILLIONAIRE?<br />DebtWave.com<br />
SETTING FINANCIAL GOALS<br />Financial Goal:something you planned for that will happen in your future <br />A financial go...
What resources you will need
How much time will it take
How to make the goal fit into your life </li></ul>DebtWave.com<br />
SETTING FINANCIAL GOALS<br />When preparing your goals:<br /><ul><li>Be realistic
Establish time frames
Devise an “action” plan
Be flexible: goals can change</li></ul>DebtWave.com<br />
SHORT-TERM -vs- LONG-TERM GOALS<br />Short-Term Goals: 0-3 years<br />Examples: <br />	1. Save $200 for a new iPod Nano by...
THE 4 STEP SAVING/SPENDING PLAN<br />Step 1: Come up with a plan and to stick to it. <br />Create A Money Diary<br />How a...
 Clothing store
 Helping family business
  Allowance for chores </li></ul>Evaluate:<br /><ul><li> How much do you want to spend on items?
 Can you cut back on anything?</li></ul>DebtWave.com<br />
THE 4 STEP SAVING/SPENDING PLAN<br />Step 2: What money do you have coming in?<br /><ul><li> Depending on your age, this m...
 Your allowance may be set, but the income you get from part-time jobs or chores may change a lot.
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Spring Valley Middle School Girls Conference

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Presented on Friday, February 25, 2011 to four classes of 30 middle school girls. The presentation runs for fourty five minutes.

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Spring Valley Middle School Girls Conference

  1. 1. HOW TO MANAGE YOUR PERSONAL FINANCES<br />TO BECOME A MILLIONAIRE<br />Presented By<br />Spring Valley Middle School Girls Conference 2011<br />
  2. 2. The Truth About Millionaires Quiz<br />WHO WANTS TO BE A MILLIONAIRE?<br />DebtWave.com<br />
  3. 3. SETTING FINANCIAL GOALS<br />Financial Goal:something you planned for that will happen in your future <br />A financial goal states: <br /><ul><li>What you want to accomplish
  4. 4. What resources you will need
  5. 5. How much time will it take
  6. 6. How to make the goal fit into your life </li></ul>DebtWave.com<br />
  7. 7. SETTING FINANCIAL GOALS<br />When preparing your goals:<br /><ul><li>Be realistic
  8. 8. Establish time frames
  9. 9. Devise an “action” plan
  10. 10. Be flexible: goals can change</li></ul>DebtWave.com<br />
  11. 11. SHORT-TERM -vs- LONG-TERM GOALS<br />Short-Term Goals: 0-3 years<br />Examples: <br /> 1. Save $200 for a new iPod Nano by June 1st<br /> 2. Open savings account with parents<br />Long-Term Goals: 4+ years<br />Examples:<br /> 1. Save $1,000 for a new computer by high school graduation<br /> 2. Save $5,000 for college tuition<br />What are your goals?<br />DebtWave.com<br />
  12. 12. THE 4 STEP SAVING/SPENDING PLAN<br />Step 1: Come up with a plan and to stick to it. <br />Create A Money Diary<br />How are you spending your money? <br />A tool to help you achieve your financial goals<br />Write Down:<br /><ul><li>All the money that comes in during a week or month and where it comes from</li></ul>Write Down:<br /><ul><li> Where you spent your money and why you spent it</li></ul>Expenses<br />Money I owe<br />Money put into savings<br />(paying yourself first!)<br />Food/snacks for school<br />Starbucks Coffee<br />Meals with friends<br />Cell phone bill<br />Movies<br />Clothes<br />iTunes Music<br />Income<br />Allowance<br />Part-time job<br />Debt owed to me<br />Gift Money<br />Part-Time Jobs:<br /><ul><li> Babysitter
  13. 13. Clothing store
  14. 14. Helping family business
  15. 15. Allowance for chores </li></ul>Evaluate:<br /><ul><li> How much do you want to spend on items?
  16. 16. Can you cut back on anything?</li></ul>DebtWave.com<br />
  17. 17. THE 4 STEP SAVING/SPENDING PLAN<br />Step 2: What money do you have coming in?<br /><ul><li> Depending on your age, this may change from month to month.
  18. 18. Your allowance may be set, but the income you get from part-time jobs or chores may change a lot.
  19. 19. Start with the average or what you can count on.</li></ul>DebtWave.com<br />
  20. 20. THE 4 STEP SAVING/SPENDING PLAN<br />Step 3: How much would you like to save?<br /> Divide Your Money into Different Categories<br /><ul><li>short-term everyday expenses
  21. 21. saving for emergencies
  22. 22. long-term saving (high school)
  23. 23. longer-term saving for the future (college)</li></ul>Several envelopes for your cash may help you keep your money separate. It may make sense to keep a stash of cash for everyday expenses in your bedroom. The rest should be kept in a savings account so you can earn interest.<br />Check out the Saving Calculator. It will calculate how long it takes to save an amount of money. <br />DebtWave.com<br />
  24. 24. Step 4: Adjust.<br />If your plan isn't working, you can always make changes.<br />Figure out what’s wrong:<br /><ul><li>Maybe your numbers weren't realistic, and you have to be more practical.
  25. 25. Or, maybe the numbers are right, but you're having a hard time sticking to them.
  26. 26. Now it’s time to change your habits to make it work.</li></ul>By taking a hard look at what you do with your money, you can begin to set some limits and shift money around between spending and saving – this is called managing your money.<br />THE 4 STEP SAVING/SPENDING PLAN<br />DebtWave.com<br />
  27. 27. THE 4 STEP SAVING/SPENDING PLAN<br />Example: Nicole just got two new jobs! <br />Babysitting Income: $50 per week<br /> $10 per hour, 5 hours a week<br />Household Chores: $15 per week<br /> Take out trash, walk the dog or clean dishes <br />Total: $65/week <br />
  28. 28. THE 4 STEP SAVING/SPENDING PLAN<br />Date your entries and see how often you spend on the same items.<br />My Daily Money Diary<br />Mon 1/31: Snack and soda $1.50<br />Tues 2/1: Cell phone bill $15 <br /> text message overages $8.00<br />Tues 2/1: Starbucks Coffee $3.85<br />Wed 2/2: Chipotle after school $4.25<br />Wed 2/2: iTunes music $6.99<br />Thurs 2/3: Snack and soda $1.50<br />Fri 2/4: Movie and popcorn $12.36<br />Sat 2/5: Clothes from the mall $15.67<br />Sat 2/5: Lunch @ food court $4.95<br />Sun 2/6: New volleyball $5.00<br />Sun 2/6: Lunch at the beach $5.88<br />REMEMBER:<br />$65/WEEK<br />What Can Be Adjusted?<br />Less snacks or sodas?<br />Skip Starbucks?<br />Less music?<br />Less clothing?<br />A better text message plan?<br />START SAVING!<br />Mon 2/7: Snack and soda $1.50<br />Tues 2/8: Snack after volleyball $4.50<br />Thurs 2/10: Valentines Day cards $4.59<br />Thurs 2/10: Present for BFF $6.08<br />Sat 2/12: Lunch after volleyball $6.54<br />Mon 2/14: Happy Valentines Day!<br /> Starbucks Coffee $3.85<br />Mon 2/14: Pizza with BFF $4.39<br />TOTAL EXPENSES: $ 31.45<br />AMOUNT LEFT OVER: $33.55<br />TOTAL EXPENSES: $84.95<br />DEBTS OWED: -$20.00<br />AMOUNT LEFT OVER: -$19.95<br />(Asked Mom and Dad to loan her an extra $20)<br />FINAL AMOUNT LEFT OVER: $13.55<br />DebtWave.com<br />
  29. 29. DEBIT CARDS vs. CREDIT CARDS<br />Can you tell the difference?<br />
  30. 30. DEBIT CARDS vs. CREDIT CARDS<br />Can you tell the difference?<br />Credit Cards DO NOT say “debit”<br />Debit Cards say “debit”<br />Credit Cards areNOT linked to your checking account<br />There is a credit limit b/c it’s a loan<br />Both Cards:<br /><ul><li>Same size
  31. 31. 16 digits
  32. 32. Expiration date
  33. 33. Your name
  34. 34. Bank name
  35. 35. Credit card logo (Visa, Mastercard)</li></ul>Debit Cards are linked to your checking account<br />
  36. 36. -VS-<br />
  37. 37. DEPARTMENT STORE CREDIT CARDS<br /><ul><li> The store offers 10-20% savings on your purchases all day when you sign up
  38. 38. Higher interest rates than bank credit cards or major credit card companies
  39. 39. Need to spend a lot to receive rewards (and actually have the money to spend a lot)</li></ul>Ex: Receive $25 gift card for every $500 you spend at J Crew<br /><ul><li>Victoria’s Secret Angel Card offers $10 rewards for every 250 points earned BUT you have to purchase the merchandise on your credit card</li></ul>NOT <br />WORTH <br />IT!<br />DebtWave.com<br />
  40. 40. FREE CLUB AND REWARD CARDS<br /><ul><li>FREE to join & maintain membership
  41. 41. Gain points/access to free or exclusive products just by shopping at the store
  42. 42. FREE gift on your birthday </li></ul> (You don’t need to buy anything either!)<br /><ul><li> Invitations to exclusive in-store events
  43. 43. Early access to products that aren’t available yet
  44. 44. ALWAYS read terms and conditions before giving out your personal information & signing up</li></ul>What to watch out for:<br /><ul><li> Potential to over spend or go more frequently (take a look at your money diary before buying)</li></ul>DebtWave.com<br />
  45. 45. RECAP<br />PLAN<br />Come up with short and long-term goals & stick to them!<br />Open a savings account with a parent or guardian<br />ORGANIZE & TRACK <br />Create a Money Diary<br />Know where you’re spending your money<br />ALWAYS save some money<br />Work your goals into your life<br />Monitor the progress of your short and long-term goals<br />BE SMART WITH YOUR MONEY<br />Only get a credit card when you feel you’re ready & treat it like cash<br />Credit cards are safer to use for online purchases<br />ONLY buy things you know you can afford or when you have saved<br />Check your online/paper statements on both debit and credit cards frequently<br />Remember: department store credit cards aren’t worth it<br />If you’re realistic with what you can afford and you save, you can be a millionaire!<br />
  46. 46. THANK YOU!!<br />Contact Information<br />Wendy Ullman<br />Community Outreach Coordinator<br />Direct Line: 858-751-2813 <br />wendy@debtwave.com<br />Don’t forget to find us on Facebook! <br />DebtWave.com<br />

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