Who are we?

Why are we here?

►We believe in the value of financial knowledge

►You are Leaders– Good habits– Good skills– Desire to succeed– Opportunity– Knowledge

Expectations

►An introduction to personal finance

►Be involved

Take a Leadership role in your personal finance

Those who do

►Opportunity►Comfort►Security►Freedom

Those who don’t

►Limited Options►Stress►Fear►Lack of Opportunity

Why people don’t take care of their finances

Excuse

► I am young, I don’t need to worry about it

► I have a good job and will only make more money

► Whose to say I wont die tomorrow

► I work hard, I have earned it

► I don’t make enough money to save, plan, etc

Fact

► You are young, and dealing with it now is the best time

► Many of us will change careers

► The average life expectancy is 82 years old

► If we don’t save, we will be working forever.

► If we could be making more money, we would be

Important Areas

►Credit

►Credit Cards

►Retirement

►Savings

►Planning

►Budget

We need to plan for all of these!

Budgeting

►What do you think of when I say budget?

What Is a Budget

Why Is A Budget Important

►Helps you achieve your goals

►Helps you stay in control

►Helps you stay motivated

►Personal benefits– Marriage– Family

Expectations

►It may seem tough

►Takes time

►You may fail

►You may not like what you see

SUMMARY

►Written summary of your expenses vs. income.

►Plan for your money

►Important Information

►Its worth doing

►A key to reaching your goals.

Credit

►The Credit Report

►The Credit Score

►Credit Cards

What is a Credit Report?

►Transcript of your credit history

Why Your Credit Report Is Important

Who checks it Why it is important

Summary

►Your credit report is your credit transcript

►Lenders use this to judge you

►Get a copy of your report from the big three

►Correct any inaccuracies

THE CREDIT SCORE

What Is A Credit Score?

►Your numerical grade– Created by using the

information found in your credit report

►Always changing►Complex system

Why Your Credit Score Is Important

Dollars & Cents

►Home Price• $165,000 Loan• 30 Year fixed

Over $76,500 difference

CREDIT CARD DEBT

Negatives of Credit Card Debt

High Interest Rates

13.5%

6.25%

7%

Over Spending

►Average cash purchase $4.50

►Average credit card purchase $7

ACTUAL COST OF CREDIT CARD PURCHASES

True Costs Of Purchases

►All credit card purchases are at premium if not paid off in full

For Example

Results

$5,000 Original balance

$3,664 Interest paid

$8,664 Total payments

230 months of payments

Double the Minimums

Results

$250 vs. $125

23 months

$660 in interest

Savings

207 payments$3,000 in interest

Credit Summary►True cost of credit cards is high►Paying the minimums will be a long expensive road►Extra payments have a tremendous positive impact►High interest rates►Your score is who you are to lenders►A good score can save you thousands in interest

payments►Your credit report is your credit transcript►Lenders use this to judge you

Retirement

WHY IT IS IMPORTANT TO

PLAN FOR RETIREMENT

Shifting Responsibility

Traditional Retirement

Your Retirement

The Importance of Starting Young

When 1+1 = 5Person A:Starting @ 25 for 10 years

Person B:Starting @ 35 for 30 years

Compound Interest

Interest OnInterest

Year Simple Compound

1 1080 1080

2 1160 1166

3 1240 1254

4 1320 1359

5 1400 1467

6 1480 1584

7 1560 1710

8 1640 1847

9 1720 1994

10 1800 2153

Long Term Compounding

Time Is More Valuable Than Money

►Person A– Invested for 10 years– Invested $30,000– $467,000

►Person B– Invested for 35 years– Invested $90,000– $367,000

Retirement Summary

►Every dollar saved today is more valuable than the dollar saved tomorrow

►Today is the cheapest day to start saving

►Retirement is not going to just happen

►We need take responsibility for our retirement because no one else will

►We need to start now to make it happen

THE IMPORTANCE OF SAVINGS

Foundation For Success

Safety Net

The Purpose of An Savings

Results of No Emergency Fund

Summary

►A safety net

►Insulate you from life's unknowns– Unexpected expenses– Loss of a job

►You are Leaders– Good habits– Good skills– Desire to succeed– Opportunity– Knowledge

QUESTIONS AND ANSWERS

Thank You

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