Saving 100

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Short-Term Goals
Agenda

• Pay yourself first
• Reduce spending
• Savings options
• Compounding interest

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Saving vs. Investing
Saving vs. Investing

• Investing for long-term goals
• More than five years
• Retirement
• College education
• Saving for short-term goals
• Less than five years
• Emergency fund
• Car or house down payment
• Vacation

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Pay Yourself First
Saving vs. Investing

• Todays habits pay off tomorrow
• Include savings in your budget
• Save for emergencies
• Save for major purchases

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Reduce Spending
Reduce Spending

• Clothes
• Buy the basics
• Shop sales
• Shop thrift stores
• Make minor repairs
• Personal Care
• Shop discount stores

• Food
• Eat out less
• Split a meal
• Skip daily cup of coffee
• Shop with a list
• Buy generic brands
• Clip coupons
• Buy in bulk

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Reduce Spending
Reduce Spending

• Transportation
• Economy car
• Used car
• Carpool
• Public transportation

• Entertainment
• Entertain at home
• Pack a picnic
• Use student discounts
• Free concerts
• Free community events

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Savings Options
Savings Options Getting Started

• Banks and credit unions
• Checking account
• Money market account
• Savings account
• Certificate of deposit (CD)

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Savings Getting Started
Savings Options Getting Started

• Checking account
• Lowest interest rate
• Most transactions
• Savings account
• Higher interest rates than checking

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Savings Larger Amounts
Savings Options Getting Started

• Money market accounts
• Higher rates than checking and savings
• Limited number of monthly withdrawals
• Certificate of deposit (CD)
• Require minimum deposit
• Pays higher interest rate
• No transactions for a set period
• Early withdrawal penalty

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Rule of 72
Rule of 72
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Power of Compound Interest
Compound Interest

• Student A
• Age 25
• 100/Month
• 10 Years
• Contributes 12,000
• 73,537 at age 60

• Student B
• Age 40
• 100/Month
• 20 Years
• Contributes 24,000
• 46,435 at age 60

Savings growth calculated at 6 interest.
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Power of Compound Interest
Compound Interest
Student A
Student B
Savings growth calculated at 6 interest.
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Savings Growth
Compound Interest

• 50 a month
• 8,194 in 10 years
• 100 a month
• 16,388 in 10 years
• 250 a month
• 40,970 in 10 years

Savings growth calculated at 6 interest.
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How To Succeed
Review

• Identify financial goals
• Track expenses and list your debts
• Create a financial plan
• Save in ways that fit your lifestyle
• Start a savings planand stick to it!
• Pay off debt

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Whats Next
Whats Next

• Session
• Date
• Time
• Location

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