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Default Prevention Workshop 2001

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Use grocery list. Don't shop when hungry. Clip coupons and buy bulk foods. Combine errands ... Shop at consignment/thrift stores. Use economy car or public ... – PowerPoint PPT presentation

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Title: Default Prevention Workshop 2001


1
Title Page 60 point type Title 44 pt., Bullet
32 pt., dash 30 pt. Title Box1.08h/1.08v Text
Box 1.08h/2.17v Top footnote 1.42h/0.50v Top
Bottom footnote 16 pt. type
Insert School Logo Here
2
  • Achieving Your
  • Financial Goals

3
Achieving Your Financial Goals
  • Agenda
  • Identify financial goals
  • Develop a budget
  • Establish a savings plan
  • Achieve your financial goals

4
Identify Financial Goals
  • Identify Financial Goals
  • Buy a car
  • Take a vacation
  • Buy a house
  • Retire comfortably
  • Pay off student loans

5
Identify Financial Goals
  • First Step to Financial Goals
  • Invest in yourself
  • Feature Improved education/better job
  • Benefit More income/enjoyable job

6
Develop a Plan
  • Perception vs. Reality

Average Expenses Source Consumer Expenditure
Survey, 1998-99, Bureau of Labor
Statistics Average Salary Source JobTrack.com
7
Develop a Plan
  • Realistic Budgeting
  • Where money goes
  • Track each expense
  • Visit www.edwise.org
  • Write out a budget
  • Stick to it
  • Adopt a thrifty lifestyle

R01
8
Develop a Plan
  • College Budget
  • Education costs
  • Tuition and fees
  • Books and supplies
  • Travel/airfare
  • Computer and software

9
Develop a Plan
  • Post-College Budget
  • Dont forget to include
  • Commute expenses
  • Work clothes and dry cleaning
  • Health insurance taxes
  • Student loans
  • Savings

10
Develop a Plan
  • Dont Cramp Your Style
  • Use grocery list
  • Dont shop when hungry
  • Clip coupons and buy bulk foods
  • Combine errands
  • Bring lunch to work a few times a week
  • Leave credit cards at home
  • Estimated monthly savings 50

11
Develop a Plan
  • Might Cramp Your Style
  • Shop at consignment/thrift stores
  • Use economy car or public transportation
  • Eat only one meal out each week
  • Cancel cable TV or cell phone service
  • Rent a video vs. going to the movies
  • Lower winter thermostat - raise in summer
  • Estimated monthly savings 250

12
Develop a Plan
  • Will Cramp Your Style
  • Eat out only once a month
  • Use public transportation often
  • Cancel cable TV, cell phone, Internet
  • Visit the library vs. bookstore
  • Share living costs with a roommate or two
  • Read books on ways to be thrifty
  • Estimated monthly savings 500

13
Establish a Savings Plan
  • Starting a Savings Plan
  • Todays habits pay off tomorrow
  • Start saving today
  • Sign up for employers retirement plan
  • Include savings in budget

14
Establish a Savings Plan
  • Rule of 72

R02-R03
15
Establish a Savings Plan
Power of Compound Interest
  • Student A
  • Age 25
  • 100/month
  • 8 years
  • Contributes 9,600
  • 48,899 at age 55
  • Student B
  • Age 40
  • 100/month
  • 16 years
  • Contributes 19,200
  • 32,270 at age 55

Savings growth calculated at 6 interest.
16
Establish a Savings Plan
  • Power of Compound Interest

R04
Savings growth calculated at 6 interest.
17
Establish a Savings Plan
  • Savings Growth
  • 50 a month
  • 8,235 in 10 years
  • 250 a month
  • 41,175 in 10 years
  • 500 a month
  • 82,349 in 10 years

Savings growth calculated at 6 interest.
18
Achieve Your Financial Goals
  • Savings Choices
  • 8,235 buys a nice vacation
  • 41,175 buys a car
  • 82,349 is a
  • Down payment on a home
  • Starting a retirement
  • Saving also helps pay off your student loans

19
Achieve Your Financial Goals
  • Pay Down Student Loans
  • 15,000 student loan
  • 10-year term
  • 8.25 interest rate
  • Monthly payment is 184
  • Total interest paid is 7,077

20
Achieve Your Financial Goals
  • Pay Down Student Loans
  • An extra 50 a month
  • 3 years fastersaves 2,231 in interest
  • An extra 250 a month
  • 6 years fastersaves 4,892 in interest
  • An extra 500 a month
  • 8 years fastersaves 5,762 in interest

21
Achieve Your Financial Goals
  • How to Succeed
  • 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

22
Achieving Your Financial Goals
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