Why is Money Important? There’s a lot to learn about money! Presented by the San Francisco Federal Reserve Bank in Collaboration with Operation Hope

There’s a lot to learn about money! Key Concepts: Budgeting Rate of Return Risk

What Is A Budget? A plan for spending money Expense Income

A Budget Gives You Control Budgets Why do people create budgets? A Budget Gives You Control

Are you going to manage your money? Or… Is money going to manage you? What would you do with the money left over at the end of each month?

Where can I save or invest my money? Types of Accounts: Saving and Investing Savings Accounts Certificates of Deposits (CD) Stocks and Bonds Real Estate

Key Factor #1 Saving & Investing Rate of return The amount of money you earn on your investment Amount Rate of Interest Time

What is your return if you invested $500 at 3% for 1 year? Rate of Return What is your return if you invested $500 at 3% for 1 year? $15 3% 9% 15% 21% $1,000   24 8 5 3 How long would it take to double your money? The Rule of 72: 72 divided by the interest rate

Key Factor #2 What is the Risk? How much would I have to pay you to…..

What is your return if you invested $500 at 3% for 1 year? Rate of Return What is your return if you invested $500 at 3% for 1 year? $15 3% 9% 15% 21% $1,000   24 8 5 3

Two Rules to Live By Spend Less Than You Make Pay Yourself First

What Happens When You Violate Rule #1? You Spend More Than You Make Borrow Money Credit Card Balance of $5,000 at 17% Interest Minimum Payment 81 years to pay off the balance

What Happens When You Honor Rule #1? You Spend Less Than You Make Honor Rule #2: Pay Yourself First

Pay Yourself First How Much Money Could You Earn If… Saved $15/day until you were 65? At Age 65 5.00% Rate of Return $420 Save $15 everyday for one month $15 Coffee/hot chocolate & snacks $1,000,000

Why is Managing Your Money Important? Spend Less Than You Earn Pay Yourself First Budgeting Rate of Return Risk

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