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Daily Information

Daily Information. Agenda: Complete warm-up Define vocabulary Cash Flow and Net Worth P.P. Student activity Bottom Line. Warm Up: On a piece of paper, describe the difference between… instant gratification vs. future gratification. Objectives:

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Daily Information

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  1. Daily Information • Agenda: • Complete warm-up • Define vocabulary • Cash Flow and Net Worth P.P. • Student activity • Bottom Line Warm Up: On a piece of paper, describe the difference between… instant gratification vs. future gratification Objectives: • Prepare a personal cash flow statement and a net worth statement. • Apply a decision-making process to personal financial choices.

  2. Resources Limit Choices Unlimited Wants/Needs + Limited Financial Resources = Financial Choices

  3. Remember…. • Businesses create demand by advertising • Don’t be tempted to buy products you can not afford • Evaluate your financial situation through cash flow statements and net worth statements.

  4. Net Worth 4-1 Resources and Choices Slide 5

  5. Decision-Making Process • Define the need. • List options for meeting the need. • Compare the options. • Consider the opportunity cost—the value of your next best option. • Make a decision. • Take action based on your decision. • Reevaluate your choice.

  6. Financial Strategies • Consider your future • If you have doubt, don’t buy it • Avoid buyer’s remorse (impulse buys)

  7. Individual Activity • Based on the information provided in the handout, create a cash flow statement and a net worth statement for Andrea McCall

  8. Daily Information • Agenda: • Complete warm-up • Philanthropy video • Define vocabulary • Budgeting P.P. • Student budgeting activity • Bottom Line Warm Up: What is philanthropy? Objectives: • Identify the purpose of and prepare a budget. • Describe recordkeeping methods used in the budgeting process.

  9. What does it mean to Budget? • Manage your money • Plan how to spend or save it • Present vs. future • Based on estimated income • and expenses • Use spreadsheets to prepare

  10. How Do You Prepare a Budget? • Step 1: Analyze your spending for one month (where does your money go?) • Step 2: Create a spreadsheet based on spending habits • Step 3: Designate money to specific categories (how much is needed?): • Variable expenses • Fixed expenses • Charitable giving • Step 4: Balance the budget (adjust if necessary)

  11. Be Sure to Pay Yourself First! • Before designating money in different categories, take a fixed amount for yourself and put it in your savings account. Remember, a little goes a long way!

  12. 70-20-10 Strategy • Spend 70% of your income • Save 20% of your income • Invest 10% of your income

  13. Budget Analysis Make sure every dollar has a name on paper before you receive it! • Not everything will go as planned • Especially the first couple of months • Variances will occur • Difference between planned and actual

  14. Record Keeping • Manual • Pen and paper • Keep it somewhere safe • Electronic • Using software such as Quicken • Microsoft Excel (encrypt) • Google Docs

  15. Personal Budget

  16. Budgeting Activity • Read through the directions on the handout and complete.

  17. Daily Information • Agenda: • Complete warm-up • Socratic seminar on article • Financial Planning P.P. • Marshmallow activity • Bottom Line Warm Up: Read the handout about SMART goals. Objectives: • Explain the purpose an steps in financial planning. • Describe ways you can protect your financial resources.

  18. Socratic Seminar Activity I will read a goal out loud. Determine if it is a short-term or long-term goal and move to the appropriate side of the room. Short-Term Long-Term

  19. Financial Planning Theprocess of looking at your current financial situation and thinking about your future. • Includes personal and financial goals along with steps and a timeline for completing them. • Make sure to review and update your financial plan periodically.

  20. Steps for Financial Planning • Step 1: Gather financial information • Look at all financial records • Step 2: Analyze information • Make sure nothing is missing • Is your income covering your expenses? • Step 3: Set Goals • Personal and financial • Short and long term

  21. Steps for Financial Planning • Step 4: Develop a timeline • Goals should be measurable • Step 5: Implement the plan • Work towards achieving your goals • Check progress vs. timeline

  22. Financial Plan (One Goal)

  23. Where Can You Get Good Financial Advice? • Financial planners • Financial experts • Newspapers and magazines • Seminars and workshops • Financial websites

  24. How Can You Protect Financial Resources? • Deal only with financial advisers you know and trust • Keep good records • Verify account balances regularly • Guard passwords • Be aware of phishing • Guard against identity theft

  25. Marshmallow Activity • Supplies: A pinch of toothpicks and a handful of small marshmallows • Task: Create a free standing tower using your supplies • But…Before you build, work as a team to write down a GOAL to serve as your road map. Be prepared to share this with the class. • Ready-Set-Build!

  26. Create a personal goalRemember to be…SpecificMeasurableAttainableRealistic Time Bound

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