Ten Simple Things to know about Money

(or… what I wish someone had taught me before I was 18 years old.)

Thank you FINRA This program is provided through a grant from the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the American Library Association (ALA). The grant is distributed as part of the Smart investing@your library® initiative, an ALA program. This project is in its sixth year of educational partnership with libraries across Colorado and the country. Marsha Yelick CFA(retired) Financial Programs Consultant myelick@estesvalleylibrary.org 970-586-8116 Ext 831

Major Theme Learn to drive BEFORE you hit the road!

Earn MORE than you spend (or spend less than you earn). How hard is that? Secret #1

Pick up all things FREE. Secret #2

Use a BUDGET to track your spending. Secret #3

Write it down! Secrets of Secret #3

The POWER of COMPOUND INTEREST Secret #4 FREE MONEY!!! (green & red)

Start SAVING as EARLY as possible. Secret #5 (add on to #4) Live on LESS, pay YOURSELF first!

Know the difference between want and need. Secret #6 TOO MUCH STUFF!

AVOID DEBT! It’s acceptable in our society to have debt, but it’s not very comfortable! SECRET #7 Graduating with credit card and student loan debt is a HUGE burden!

Measure financial decisions relative to the hours of your life. Secret #8

Guard your identity. Secret #9

MONEY HAPPINESS ! Secret #10

A BUDGET is a tool that helps you track how you spend your life energy. Create a budget & keep it up-to-date. Try to track every dollar spent. Start building an emergency fund. Start saving for retirement. Balance your checkbook. Secret #3 - revisited

Lucky Joe Average Story Time

Does he need more than LUCK? Lots of Money! How will it be spent? How will he keep track? Planning

Assistance Available! Hooray for the Library

Income (minus A LOT) Income

Joe only gets $4,000 / month take home pay. Income (minus A LOT) Monthly income = $5,166 Minus FICA = - $333 Minus taxes = - $ 833 Joe only gets $4,000 / month take home pay. Income

Start Saving Early (Secret # 5) 10% P-Y-F Pay-Yourself-First

The Essentials “Must pays” come next. P-Y-F, then provide the essentials! The Essentials

“Must pays” shelter, transportation, food The Essentials 10% (saved) 35% 18% 12% 75%

Important expenses – another 20%? Important Stuff

YOU DECIDE. Important Stuff Important expenses – another 20%? What else is TRULY important? Phones Internet Insurance Loan payoff Medical expenses Work associated expenses Important Stuff

Non-essential expenses – the last 5%? The FUN stuff

The FUN stuff Only 5% for LOTS of Fun! What else is part of your life? Pets Entertainment Clothing/nails/clubs Travel Buying stuff Funding charities Gifts The FUN stuff

Five-part Basic Financial Education Take free classes at the Library Five-part Basic Financial Education Everything you need to know to manage your own personal financial affairs. Common Cents

Thanks for attending! BE MONEY SMART FOR LIFE