Curriculum Designed by 2019 Financial Literacy Series Workshop - PowerPoint PPT Presentation

Curriculum Designed by 2019 Financial Literacy Series

Workshop Overview • Developing your personal Saving/Spending Plan – Presented by Dollar Bank • Why it is critical to develop a personal Saving/Spending Plan • Eliminating debt • Safekeeping your money Curriculum Designed by 2019 Financial Literacy Series

How Should I Save? For each ?, check the box that best represents your savings goals Are you concerned with having all of your money accessible in case of a need Yes No to borrow from savings? Are you concerned with having money in the long term? Yes No Are you concerned with your ability to “stay away” from money in your savings Yes No account? Are you nervous about investing in a higher risk account? Yes No Does your concern with paying back credit card debts overshadow your focus Yes No on saving? Does the convenience of having a checking account linked to your savings Yes No appeal to you? Are you looking for tax benefits to you based on the type of savings vehicle Yes No you choose? Are you planning on purchasing a home or car in the next 2 to 5 years? Yes No Are you concerned with possible fees that might come with certain methods of Yes No saving? Curriculum Designed by 2019 Financial Literacy Series

Bad Habits • Wellness Options • Exercise • Diet Changes • Diet Supplements Curriculum Designed by 2019 Financial Literacy Series

Wellness Options • Exercise is …. • Saving is …. • A daily/weekly routine • Increased and decreased based on habits • Something is better than nothing • 100% in your control • Low risk • Something anyone can do • 1% of your resources to start Curriculum Designed by 2019 Financial Literacy Series

Compare Savings Starbucks K-cups $4.25 each $0.50 each X 20 workdays X 20 workdays $85.00 1 month $10.00 1 month X 12 months X 12 months $1020.00 in year $120.00 in year $900.00 Savings in one year Curriculum Designed by 2019 Financial Literacy Series

Compare Savings Chipotle Pre-made Salad $11.90 each $3.00 each X 20 workdays X 20 workdays $238.00 1 month $60.00 1 month X 12 months X 12 months $2856.00 in year $720.00 in year Savings in one year $2136.00 Curriculum Designed by 2019 Financial Literacy Series

Total Yearly Savings Coffee $900.00 Lunch $2136.00 $3036.00 Total for one year Small changes for big reward Curriculum Designed by 2019 Financial Literacy Series

Building a Habit Income: $35,000 Weekly Savings Annual Savings 1% weekly savings = $6.73 1% of annual income = $350.00 5% weekly savings = $33.65 5% of annual income = $1750.00 10% weekly savings = $67.31 10% of annual income = $3500.00 Curriculum Designed by 2019 Financial Literacy Series

Developing the Savings Habit GOAL W HERE YOU WANT TO BE C HANGED B EHAVIOR W HERE YOU Curriculum Designed by ARE 2019 Financial Literacy Series

1 6 The Financial Analyzing the Planning information Process 3 5 Implementing the strategies in the plan Curriculum Designed by 2019 Financial Literacy Series

Words of Wisdom • Be realistic • Make a plan and stick to it • Make savings first item on spending plan • Underestimate income/Over estimate expenses • Review and recalculate plan every 90 days • Or sooner if your spending plan isn’t working • Forgive yourself---not perfection just progress • Think of growing your financial worth Curriculum Designed by 2019 Financial Literacy Series

Tools for Success • www.mint.com • Dollar.bank • Apps • AndroMoney (Expense Track) --- Google, not free • Left to Spend--- iOS, not free • Money Manager Expense & Budget--- Android, free • Debt Payoff Planner--- free • All apps warn of ads Curriculum Designed by 2019 Financial Literacy Series

Saving/Spending Plan • Does es your r income come cover er your r expenses enses every ry month? th? • Are e your r expenses enses more e than n your ur income ome every ry month? th? some months ths? ? only in an emer ergenc ency? y? • Is s your r sa savings vings accou ount nt fat? t? sk skinny? nny? non-existe xistent? nt? Curriculum Designed by 2019 Financial Literacy Series

Saving/Spending Plan • Finding ding wher ere e your ur money y goes s is your ur First st Step to to becoming coming Wealthy ealthy • The Second ond Step is telling ling your r mone ney wher ere e to go Curriculum Designed by 2019 Financial Literacy Series

Saving/Spending Plan • Key to wealth alth and living ing comfor orta tably ly • “Do not save what is left over after spending, but spend what is left after saving ” Warren Buffet • Savings ings Crea eates tes Wealth alth • Witho thout ut an emergenc ncy y savings ings accou count, nt, what t happe pens? ns? Curriculum Designed by 2019 Financial Literacy Series

Saving/Spending Plan • Tell l your r money y what t to do and wher ere e to go • Revie iew w your r Saving/S ing/Spending pending You will either tell Plan n ofte ten your money what to • Very Personal Decision do or the lack of • Where you can cut back and where money will always you can’t manage you. Curriculum Designed by 2019 Financial Literacy Series

Saving/Spending Plan • Nee eeds ver ersu sus s Wan ants ts • Nee eeds ar are th e the e es essen enti tials als • Roof over your head • Food • Utilities • Clothes/Shoes • Transportation • Insurance: auto, renters/homeowners, health, life • Education • Child Support • HealthCare, Co-pays and Prescriptions Curriculum Designed by 2019 Financial Literacy Series

Saving/Spending Plan • Wants nts are e choice ices • Wants nts trickle le into o Needs ds • Don’t fool yourself into justifying a Want nt as a Need Want nt Need ed Lobster Dinner ______________ Pair of Jimmy Chou’s ______________ 2019 Lexus ______________ Gucci Genius Jeans ______________ Curriculum Designed by 2019 Financial Literacy Series

Saving/Spending Plan • Wants nts are e choice ices • Steak or chicken • Wants nts ask us to take e contr ntrol ol • Wants nts can devasta astate te a good d monetary netary plan an Curriculum Designed by 2019 Financial Literacy Series

4 Money Rules to Live By 1. Save 10% of income ome 1. 2. Have e 3 months ths income ome in savings vings account unt for 2. emer ergenci ncies es 3. If you have to finance nance it, , you proba obably ly cannot not affor ord d 3. it it 4. Spend end less ss than you earn 4. Curriculum Designed by 2019 Financial Literacy Series

Eliminating Debt De Debt is a product that has been sold to us with such repetition and intensity that most people believe they can’t live without it. Curriculum Designed by 2019 Financial Literacy Series

Eliminating Debt • De Debt holds lds us do s down wn • Inter terest est on debt t goes into a lender’s pocket not t your r pocket et • De Debt dec ecreas eases es saving an and spen ending ding option tions • With thout out em emer ergenc ency sa savi vings, , debt t is i s inevi vita table • Payi ying pres esent ent debt t req equir uires es a p a plan an Curriculum Designed by 2019 Financial Literacy Series

Eliminating Debt • Reac aching hing a destina tination tion deman ands ds a map • Use the S.M. M.A.R. A.R.T. path th • S = Specif cific ic • M = Measur asurable le • A = Achie hievable le • R = Reali alistic stic • T = Timed ed Curriculum Designed by 2019 Financial Literacy Series

Eliminating Debt Curriculum Designed by 2019 Financial Literacy Series

Eliminating Debt • Spec ecific ic • What is your goal and the timeframe for completion? • In si six month ths, , my y Target et credit edit card d will l have e a zero o $0.0 .00 balanc ance. Curriculum Designed by 2019 Financial Literacy Series

Eliminating Debt • Mea easurable • How will you measure your success? • For the e next t six month nths, , when en I revie view w my Target t Credit edit Card d st statemen tement, t, the e balanc ance e will l be reduce duced d by more e than an the minim imum um payment ment Curriculum Designed by 2019 Financial Literacy Series

Eliminating Debt • Achievable le • How will you reach your goal? • Target Credit Card • Balance = $200 • Interest Rate = 22.9% • Minimum Monthly Payment = $15 • 16 Months to Pay Off • By incr creasing easing the month nthly ly payment ment to $25, 5, the e balance ance will l be zero o ($0.00) 0.00) in si six months ths Curriculum Designed by 2019 Financial Literacy Series

Eliminating Debt • Rea ealistic tic • Where will I get the extra $10 to apply to the monthly payment? • Starbucks Venti cost = $2.45 each and I stop 4 times per week • $2.45 X 4 = $9.80/week - $42.46/month • Reducing my stops to 3 times a week I will be able to pay the extra $10.00 monthly on my Target Credit Card • $2.45 X 3 = $7.35/week- $31.85/month • $42.46-$31.85 = $10.61  $10.61 extra for card Curriculum Designed by 2019 Financial Literacy Series