moneycounts: a financial literacy series · moneycounts: a financial literacy series healthy...

MoneyCounts: A Financial Literacy Series

Principles of Personal

Financial Literacy

Brad L Yeckley MBA,PhD(C)

Assistant Director of Financial Literacy

The Pennsylvania State University128 Outreach Building

University Park PA 16802

[email protected]

814-863-0647

mailto:[email protected]


– A Young person starting out his/her future needs to know the

basics of personal Financial Literacy, this workshop is to arm

you with principles of personal financial literacy that should guide

you throughout your life.

– Understand the “must-know” personal finance principles

– Be able to apply these principles to one’s life

– Assess your relationship with money management

• Theory

• Action

• Behavior

• Lets watch a video!

Description/Learning Objectives

https://www.youtube.com/watch?v=I_ZbOPnL7_M


Map Your Financial Future


Know Your Take Home NET Pay

Why is this

important to

understand

now?


Know Your Take Home NET PAY

PAYDATE GROSS PAY NET PAY Taxing Authority (Boro)

09/30/2015 $5,334.00 $3,560.30 PATTON TWP

PAY PERIOD DATES MARITAL STATUS

WITHHOLDING

ALLOWANCE

FEDERAL ADD ON

09/01/2015 TO

09/30/2015

Single 2 $0.00

BUDGET RATE SHIFT/OC REG HRS OT HRS HOL HRS HOL OT AMOUNT

0504598 UP $0.00 0.0 0.0 0.0 0.0 0.0 $5,334.00

TAXABLE SALARY

TAX WITHHELD

Current YTD

Current YTD

FEDERAL $4,862.03 $43,313.91

FEDERAL $650.36 $5,734.62

FICA $5,195.40 $46,284.60

FICA $322.11 $2,869.65

MEDICARE $5,195.40 $46,284.60

MEDICARE $75.33 $671.13

STATE $5,195.40 $46,284.60

STATE $159.50 $1,420.92

LOCAL $5,195.40 $46,284.60

LOCAL $75.33 $671.13

UNEMPLOYMENT $3.73 $33.27

LST $4.34 $39.00

EMPLOYEE DEDUCTIONS/REDUCTIONS

Current YTD

Current YTD

RETIREMENT $333.37 $2,970.69

VADD $0.90

LTD $10.13

MEDICAL $95.12

DENTAL $5.70

VISION $0.78

PARKING $37.00


Budget Your Money


A Healthy Budget Sample

Recommended Budgeting as a Percentage of Net Income

1. Saving 10.00%

2. Housing 30.00%

3. Utilities 5.00%

4. Transportation 10.00%

5. Food 20.00%

6. Entertainment 5.00%

7. Debt 10.00%

8. Other 10.00%

1. Saving

2. Housing

3. Utilities

4. Transportation

5. Food

6. Entertainment

7. Debt

8. Other

http://www.bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx


Pay Yourself First


Save and Invest at early AGE


Needs Versus Wants


Don’t Borrow What you Can’t Pay Back


• Student Loans

– Make friends with your servicers

• Do it early…. https://www.nslds.ed.gov

– Understand Repayment Plans

• https://studentaid.ed.gov/sa/repay-loans/understand/plans#estimator

• Use the repayment plan estimator.

• Pay what you can afford. Avoid negative amortization.

Don’t Borrow What you Can’t Pay Back

https://www.nslds.ed.gov/

https://studentaid.ed.gov/sa/repay-loans/understand/plans#estimator


• Rule of 20/10

– Total Debts excluding mortgage should not exceed 20% of net

yearly income

– Monthly payment should not exceed 10% of monthly net income

– Example: Your net yearly income is $60,000 your total debts should not

exceed $12,000. Your net monthly income is $5,000, your monthly payment

should not exceed $500

• Rule of 72

– To determine how long it will take for your money to double,

divide the interest rate into 72

• Example: an account earning 6% interest will double in twelve years

• (72 divided by 6 equals 12)

Know the Rules


Protect your credit history


Stay Insured


Healthy Relationship with Money

• In summary, financial well-being can be defined as a state of being wherein a person

can fully meet current and ongoing financial obligations, can feel secure in their

financial future, and is able to make choices that allow enjoyment of life.

The four elements of financial well being (cfpb)

Present Future

Security Control over day-to-day Capacity to absorb financial shock

Month to month finances

Freedom of Choice Financial freedom to make On track to meet financial goals

Choices to enjoy life

Consumer Financial Protection Bureau (Jan 2015)


Thank You!

Comments and Questions

Brad L Yeckley MBA,PhD(C)

Assistant Director of Financial Literacy

The Pennsylvania State University

128 Outreach Building

University Park PA 16802

[email protected]

814-863-0214

mailto:[email protected]

moneycounts: a financial literacy series · moneycounts: a financial literacy series healthy...

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