Get a Handle on Your Money

1. Get a Handle on Your Money

2. Futures Contracts Collectibles Pyramid of Investment Risk Aggressive Growth, Junk Bonds, Stocks and Mutual Funds Increased Risk Real Estate High Quality Corporate Stocks, Bonds and Mutual Funds Life Insurance Investments Government Securities Insured Savings, Savings Bonds, Money Market Funds, Certificates of Deposits Goals Emergency Fund Budget Financial Records Credit Record Life Disability Health Property Liability Financial Plan Insurance Financial Foundation

3. Cash Management $ Earn maximum interest on funds $ Maintain adequate funds to manage expenses, emergencies and financial goals $ Keep cash and credit purchases in line with budget limits $ Maintain purchasing power by exceeding inflation and taxes

4. Tools of Cash Management $ Checking accounts $ Savings accounts $ Money Market accounts $ Certificates of deposit and government savings bonds

5. Financial Institutions Commercial Banks Credit Unions Savings and Loan Associations Mutual Savings Bank BANK

6. Checking and Savings Accounts Costs and Penalties Automated teller machine transaction fee Telephone, computer or teller information Maintenance fee on minimum-balance account Maintenance fee on average-balance account

7. Costs and Penalties “Bounced” check Delayed use of funds Inactive account Excessive withdrawals Early withdrawal Check clearing waiting period Stop-payment order

8. Overdraft Protection Automatic Funds Transfer Automatic Overdraft Loan Agreement

9. Making Your Money Grow

10. Savings versus Investing -- What’s the difference?

11. Savings • Money set aside from current earnings • Money not currently needed • Money set aside temporarily • Return is usually lower • Safe, secure, convenient

12. Investing Putting what you’ve saved to work to produce a higher return Money that is set aside to meet longer term goals Higher risk than savings

13. Reasons Families Save Emergencies, seasonal expenses, major purchases Educate self or children Minimize taxes Retirement income Capital accumulation New Home Children’s Education Toys Candy

14. Every Little Bit Counts

15. Pay Yourself First (A little can add up) Save this each week At % interest In 10 years, you will have $ 7.00 5% $ 4,720 $14.00 5% $ 9,440 $21.00 5% $14,160 $28.00 5% $18,880 $35.00 5% $23,600

16. Savings Options • Savings Accounts • Certificates of Deposit • Money Market Accounts • Government Savings Bonds • Treasury Certificates

17. Low-Risk, Long-Term Savings $ Certificates of Deposit Fixed or variable rate $ U.S. Savings Bonds Series EE Series HH Series I

18. Value of $1 Saved Once Interest Rate 4% 6% 8% 10% Years 5 10 20 30 1.22 1.48 2.19 3.24 1.34 1.79 3.21 5.75 1.47 2.16 4.66 10.06 1.61 2.59 6.73 17.45

19. Value of $1 Saved Yearly Interest Rate 4% 6% 8% 10% Years 5 10 20 30 5.42 12.01 29.78 56.08 5.64 13.18 36.79 79.06 5.87 14.49 45.76 113.28 6.11 15.94 57.27 164.49

20. Save $1,000 a year @ 4% for 20 years = $29,778 You earned $9,778!!!

21. $25 a month or $300 a year @ 4% interest for 20 years = $8,933 You earned $2,933!!!

22. Finding $1,000 To Save $ 60 clothing/dry cleaning 60 phone bills 120 groceries 180 entertainment 160 collect coins ($3.20 each week) 360 meals away from home 60 coffee/sodas $1,000 SAVINGS

23. Painless Ways To Save • Pay yourself first • Reinvest interest and dividends • Set realistic goals • Be yield conscious • Keep it simple • Keep cash reserves to minimum • Use payroll deduction plans

24. Painless Ways To Save • Continue to make loan payments into savings after debt has been paid • Try a crash savings diet by purchasing only bare necessities • Kick a habit and save the money • Adjust your tax withholdings and save the difference • Save windfall money from lottery, inheritance and gifts • Save money from pay raise, bonus or working overtime • Start a part-time job and save the money

25. Get a Handle on Your Money