Activity 1………………Saving vs. Investing

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• Activity 1Saving vs. Investing
• Activity 2..Saving for a Rainy Day
• Activity 3..1 1 Saving
• Activity 4..Investing for the Long Term

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Money Management - Activity 1

• ACTIVITY 1
• Saving vs. Investing
• Overview
• Saving vs. investing
• Information on a paycheck
• Making a financial plan
• Budgeting

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Slide 1 - Do You Save? Do You Invest? Lesson
Reference Money Management, Activity 1
Overhead 1
DO YOU SAVE? DO YOU INVEST?
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Slide 2 - Saving vs. Investing Lesson Reference
Money Management, Activity 1 Overhead 2

• SAVING VS. INVESTING
• Saving
• Short-term.
• Postpones spending.
• Has safety precautions.
• Investing
• Long-term.
• Exchanges money for something with the future
  expectation of receiving a profit.
• Has risk factors.

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TAKE A GOOD LOOK AT A PAYCHECK
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Slide 3 Paycheck Lesson Reference Money
Management, Activity 1 Handout 1
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• MAKING A SUCCESSFUL
• FINANCIAL PLAN
• Start as early as possible.
• Set goals.
• Include both short- and long-term strategies.
• Support the plan with a practical, working
  budget.
• Review the plan on a regular schedule.
• Do your homework while working on your plan.
• Put the plan in writing.

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Slide 4 Making a Successful Financial Plan
Lesson Reference Money Management, Activity 1
Handout 2
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Slide 5 - Financial Plan Assistance Lesson
Reference Money Management, Activity 1
Overhead 3

• FINANCIAL PLAN ASSISTANCE
• Bankers
• Certified Financial Planners
• Schools and Courses
• Peer Groups and Investment Clubs
• The Media
• The Internet

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BUILDING MY MONTHLY BUDGET

• Savings Investments
• Fixed Expenses
• Periodic Fixed Expenses
• Variable Expenses
• Debts

Slide 6 Building my Monthly Budget Lesson
Reference Money Management, Activity 1
Handout 4
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Money Management - Activity 2

• ACTIVITY 2
• Saving for a
• Rainy Day
• Overview
• Reasons to save
• Concerns and issues with saving
• Where to save

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Slide 1 - Saving for a Rainy Day Lesson
Reference Money Management, Activity 2
Overhead 1
SAVING FOR A RAINY DAY
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Slide 2 - Reasons to Save Lesson Reference
Money Management, Activity 2 Overhead 2

• REASONS TO SAVE
• Provide for unexpected emergencies.
• Purchase expensive items in the future.
• Ensure retirement.
• Plan for investment opportunities.

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• CONCERNS AND ISSUES
• WHEN SAVING
• Safety
• Restrictions
• Liquidity
• Earnings
• Taxes

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Slide 3 Concerns and Issues When Saving Lesson
Reference Money Management, Activity 2
Handout 1
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• PLACES TO SAVE
• Savings Accounts
• Money Market Accounts
• Certificates of Deposit (CDs)
• Savings Bonds
• Insurance

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Slide 4 Places to Save Lesson Reference
Money Management, Activity 2 Handout 2
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Slide 5 - Looking at Places to Save Lesson
Reference Money Management, Activity 2
Overhead 3
LOOKING AT PLACES TO SAVE On a scale of 1 to 5
(with 1 being low and 5 being high), rate the
following places to save your money.
Based on the above ratings, where would you save
your money? Why?
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Money Management - Activity 3
ACTIVITY 3 1 1 Saving Overview

• Types of interest
• The impact of saving
• Savings regulations

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Slide 1 - Types of Interest Lesson Reference
Money Management, Activity 3 Overhead 1
TYPES OF INTEREST Which type of return on your
money would you prefer? Whats the difference?
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IMPACT OF RETURNS ON SAVINGS This chart shows
what happens at several different rates to 100
in an account when no money is withdrawn and
interest is compounded yearly.
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Slide 2 Returns on Savings Lesson Reference
Money Management, Activity 3 Handout 2
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Slide 3 - Savings Regulations Lesson Reference
Money Management, Activity 3 Overhead 2

• SAVINGS REGULATIONS
• Federal Government Insurance
• Deposits are potentially insured up to 100,000.
• FDIC (Federal Deposit Insurance Corporation)
• NCUA (National Credit Union Administration)
• Truth in Savings Act
• Financial institutions must disclose the
  following
• information about their consumer savings
  accounts
• Fees on accounts
• Interest rate
• General terms and conditions
• Defines the year as 365 days for purposes of
• determining the annual percentage rate of
  interest.

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Money Management - Activity 4

• ACTIVITY 4
• Investing for the Long Term
• Overview
• The Historical Performance of the SP 500
• Reasons to Invest
• Investing Considerations
• Investment Concerns
• Places to Invest
• Online Money Management

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Slide 1 - Savings vs. Investing Lesson
Reference Money Management, Activity 4
Overhead 1

• SAVING vs. INVESTING
• SAVING
• Short-term.
• Postpones spending.
• Has safety precautions.
• INVESTING
• Long-term.
• Exchanges money for something with the future
  expectation of receiving a profit.
• Has risk factors.

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SAVING VS. INVESTING, HISTORICALLY The
SP 500 stock index has increased almost 200
percent since 1970. On average, the stock market
returns 12 percent per year, including
dividends. Savings rates, by comparison, have
been much lower anywhere from 1.5 to 5,
usually depending on the length of time the
savings are deposited.
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Slide 2 - Saving vs. Investing, Historically
Lesson Reference Money Management, Activity 4
Overhead 2
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Slide 3 - Places to Invest Lesson Reference
Money Management, Activity 4 Overhead 3

• PLACES TO INVEST
• Stocks
• Bonds
• Mutual Funds
• Retirement Plans
• Real Estate
• Collectibles/Valuables

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• QUESTIONS TO ASK BEFORE
• MAKING AN INVESTMENT
• How safe is the investment?
• What types of returns can I expect?
• What kind of risk is involved?
• Can I get my money back if I need it? How long
  will it take and how much will it cost to get it
  back quickly?
• Are my investments in a variety of places to
  spread my risks (diversification)?

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Slide 4 Questions to Ask Lesson Reference
Money Management, Activity 4 Handout 2
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• INTERNET PRIVACY SECURITY
• Avoid passwords or screen names that are easy to
  guess.
• Change passwords often.
• Read privacy policies.
• Check online accounts often. Report unfamiliar
  transactions.
• Do not open emails with unsolicited offers that
  sound too good to be true.

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Slide 5 Internet Privacy Security Lesson
Reference Money Management, Activity 4
Overhead 4