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Money Management

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Achievement Standard: Develop and evaluate a spending/savings plan.

Money Management

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Money Management Proper Money Management is necessary so that you

have the money to invest.

Here are some facts…

In 2013, American consumers carried about $11,285,000,000,000 in consumer debt.

Credit card debt alone averages $15480 per household.

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Money Management In 2014, there

were over 1.2 million personal bankruptcies filed.

2% are age 25 and younger who started their lives in financial failure.

20% are age 55 or older.

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Money Management

Here are some more facts…

Teens are more likely to have a cell phone (74%) than a savings account (60%).

Only 7% of teenagers balance their check book, even fewer save regularly.

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Money Management

And more facts…

A majority of Americans in

households with incomes of $35,000

or less believed that they are more

likely to accumulate a $500,000 nest

egg by winning a lottery or

sweepstakes (40%) than by patient

saving and investing of relatively

modest sums (30%).

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And more facts… Household money management is one of the

most common sources of disagreement in marriages. One USA Today article reported that 70 percent of married couples argued about money issues, with the use of credit and shopping and spending habits topping the list.

Only 5% of adults learned about vital money management skills in high school.

Money Management

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Top 3 Environmental Causes of Stress (out of 63 stress triggers)

1. Financial Problems - Lack of money, debts, credit card payments, mortgage, rising costs of education, etc.

2. Workplace Stress – Your boss, up-coming promotion, office politics.

3. Personal Relationships – Children, relatives, arguments with spouse or children, etc.

Money Management

Source: Study by Thomas H. Holmes and Richard H. Rahe, from the University of Washington

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Individuals surveyed put themselves in one of four financial categories…

1. Wealthy

2. Financially Comfortable

3. Paycheck-to-paycheck

4. In Debt

Source: Merrill Lynch Survey 2009

Money Management

5%

26%54%

15%

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Question: Can you afford to invest?

Answer: You can’t afford NOT to invest!

Money Management

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How do we start?

By creating…

A Personal Budget!

Money Management

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Personal Budget Categories:

Income

- Fixed Expenses

- Savings and Investments

- Variable (Living) Expenses

Cash Shortage or Surplus

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Let’s get started.