Your Spending, Your Savings, Your Future: A Beginner’s Guide to Financial Readiness 1 Use limitations: These materials may be used only for nonprofit, noncommercial, educational purposes. These materials may not be used in connection with any sale, advertisement, endorsement or promotion of any service, product, person, or business and may not be sold or offered for sale.

Welcome Introductions 2

Objectives Tracking Your Money Flow Managing Debt Effectively Starting a Savings Habit Thinking About Tomorrow 3

Tracking Your Money Flow Create a Spending Plan Identify income List expenses Compare income and expenses 4

Tracking Your Money Flow Plug Spending Leaks An example of a spending leak: You buy coffee every morning at $3.50 a day. That is $17.50 a typical work week (5 days x $3.50), $70 a month (20 working days x $3.50), and $910 a year (52 weeks x $17.50)! 5

Managing Debt Effectively How Much Debt Is Too Much? Use Credit Cards Wisely Shop around for the lowest rate Use only one or two cards Pay bills as soon as they arrive Always pay more than the minimum balance due 6

Starting a Savings Habit Start Saving Now Using bank or credit union accounts Paying yourself first Saving for emergencies Goal: Set aside enough to cover three months of basic living expenses. 7

Starting a Savings Habit Two-for-One Savings Plan Roth IRA Can withdraw contributions at any time (but not earnings) Saving vs. Investing Long-Term Savings Retirement Children’s education 8

Thinking About Tomorrow Setting Goals Short-term goals Medium-term goals Long-term goals SMART: Specific, Measureable, Achievable, Realistic, Time-bound 9

Thinking About Tomorrow Make It Happen Set your priorities Create a spending plan Make changes 10

Review Create a spending plan Plug spending leaks Use credit wisely Pay yourself first Focus on financial goals Dream about your future 11