Personal Finance http://finance.yahoo.com/news/the-10-unhappiest-jobs-in-america.html

1. Budgeting and future expenses Personal Financehttp://finance.yahoo.com/news/the-10-unhappiest-jobs-in-america.html

2. I. Location, location, location • After college hopefully your job will allow you the independence you will need • However, it may force you to move to another state or city • A. Generally, northern & western states cost anywhere from 2 to 5 times more (NY, LA, Chic., Bos., Philly, SF, SD, Sea, DC) • B. Southern, plains to mid western states are cheaper (Dal, atl, jax, tampa, New Orl., Charlo, birm., etc…) • C. Generally, suburbs are cheaper than most inner city living (especially in typical big cities) • D. Certain things unnecessary in big cities, car, car ins., paying for gas, looking for & paying for parking, car repair etc… • http://homes.yahoo.com/news/america-s-10-hippest-cities.html

3. II. How to read my pay stub! • A. Your future paycheck will have many twist and turns before it lands in your hand: • 1. Gross pay: the amount your are paid by your employer • 2. Net pay: your actual pay after taxes • a. Federal income tax: by federal government (16th amendment) 10%-35% • b. FICA: Soc. Sec. & Medicare (FDR & LBJ) 7.65% tax • c. State tax: varies from state to state; GA = 1-6%

4. III. Savings • A. Terms: • Risk: how safe of an investment it is • Return: the increase in the value of the original sum over time • B. Savings account: a deposit account for funds that are expected to stay in for a short term. Very low risk (FDIC), and very low return great for over-draft protection! • C. Money Market Account: a savings account for larger deposits than savings account, low risk (FDIC), low return, bit larger interest, but limited access • D. Certificate of Deposit (CD): Loans investors/people make to financial institutions such as banks for set amount of time (maturity) decided by investor/person; There is a penalty for cashing in early, Considered low return, very little risk due to (FDIC) • E. Other long term investments (more for retirement): Mutual funds, IRA, 401 K, stocks, bonds

5. IV. Housing: Owning vs. Renting • A. Ownership: • 2 things necessary for a good home loan: • Good credit history • 20% down payment (recommended) • B. Until then Renting allows you: flexibility, short lease, mobility, no liability for physical up-keep of place • C. Ownership: ownership/pride, building equity, investment, asset, credit history, tax credit/deduction: • D. Types: • 1. Apartment: rental units, usually 1-3 bedrooms, two baths, pool, amenities, no water, trash fees, outside parking, location! • 2. Condo/townhome: no outside maintenance, less privacy, extra fees, amenities, ownership, investment • 3. House: ownership, investment, no amenities (sub.), landscape work, lots of upkeep, equity

6. V. Housing: Mortgage & car • A. Traditional mortgage: money borrowed which would be paid back until loan paid off: principal + interest • 1. Usually 30/15 years, 20% down • 2. Also added and paid as escrow account: • a. Property taxes: county & city tax • b. Home insurance: property & personal protection • B. Rent for leasing: • 1. Apartment or townhome/condo or house: • a. Can include partial utilities, amenities • C. Car loan: usually for 5 years, down payment, paid back=principal + interest • 1. Car insurance: • a. Full coverage: covers your car & other person; recommended for cars bought on loans • b. Liability: only covers other car; recommended for older cars bought in full without payments

7. VI. Interest • A. Price of borrowing money: • 1. What we are paid when we make investments such as savings, money market account, checking, etc… • 2. two types: • a. Simple interest: borrowing fee which is a % multiplied by principal and added to principal when loan paid back • b. Compound interest: when the interest is rolled into principal (monthly, annually), and increases principal for the length of the (maturity) loan • B. Also, what we pay when we borrow money (mortgages, car loans, student loans etc…)

8. VII. Credit: • A. What is it? A way to obtain money you do not have • B. How do you get it? To get it, one must convince financial institutions to provide a loan with the promise form you to pay back borrowed money plus additional charge called interest • C. Can it help? Yes, used in a smart way can be help to you now and future, no, used in stupid way can result in harassment from creditors, broken relationships & bankruptcy • D. How do financial inst. decide who gets it? 3 Cs of credit: • 1.Character: are you worthy? (based on credit report), your history • 2. Capacity: income from job covering the bill month to month • 3. Collateral: loan be secured with collateral to repay the debt

9. VIII. Insurance • A. Used to manage risk in different areas of life: • 1. Health: for doctor visits; includes premium, co-pay, deductible • 2. Car: see previous slide • 3. Disability: AFLAC! Helps pay for things for a period of time while you are physically disable and unable to attend work • 4. Life Insurance: money for remaining members of your family (spouse) in case of early death ($100,000, 250,000, 500,000 etc..) • 5. Property (home/renters): insurance for all property inside of a residential structure (fire, flood, storm, theft, etc…)

10. Smaller items • Wanna talk about utilities, entertainment, personal, other debt, transportation?