Money Matters Spring 2013 $$$$$$$$$$$$$$$$

True or False – – Using a credit card is a lot easier than paying cash – Credit cards are a great way to buy something – Credit cards are free to use – Credit cards allow you to buy something you otherwise couldnt afford Credit

If you owe $5,000 on your credit card and pay the minimum balance every month, how long will it take you to pay it off completely? Credit Credit Card Calculator $100Estimated initial minimum payment 29 years Amount of time to pay off your balance, if you make no more charges and make only the minimum payment on time each month $9,779Interest charges you will pay in that amount of time

Debt More than three-quarters of American families are in some kind of debt 40% owe more than $50,000

Debt

General 2010 Statistics – 1.5 Million people filed for bankruptcy – 2.8 Million foreclosures (1 in 45) Young Adults – Unemployment for under 25 ~ 54% – Percent of college grads living at home ~ 85% (consulting firm Twentysomething Inc.)Twentysomething Inc. Current Financial Picture

College Debt Average debt for year olds $16,120 48% of young adults worry about making ends meet

College Debt Graduates with college debt struggle financially AllianceBernstein survey of 1,508 college graduates ages 21 to 35

College Debt Among graduates with college debt, many were forced to delay AllianceBernstein survey of 1,508 college graduates ages 21 to 35

College Debt Graduates in households still paying off education debt said it has contributed to AllianceBernstein survey of 1,508 college graduates ages 21 to 35

College Debt Graduates without college debt are more likely to have started saving for their childrens college costs AllianceBernstein survey of 1,508 college graduates ages 21 to 35

College Debt AllianceBernstein survey of 1,508 college graduates ages 21 to 35 How difficult has it been to pay off your education- related debt?*

College Debt AllianceBernstein survey of 1,508 college graduates ages 21 to 35 When do you expect to pay off your education loans?

College Debt AllianceBernstein survey of 1,508 college graduates ages 21 to 35 Respondents indicating satisfaction with:

College Debt The following chart shows how much a hypothetical portfolio could grow if monthly loan payments were invested in a hypothetical portfolio instead. AllianceBernstein survey of 1,508 college graduates ages 21 to 35

Estimated Future Cost of Four Years of College

Money Matters American teens spend $170 Billion/year – Money comes from: 55% parents 43% gifts 28% odd jobs 25% part time job 21% allowance 6% full time job 2% their own business Need to learn how to make it and spend it wisely!

Assignment 66 Ways to Save Money – On butcher paper provided, creatively display 11 tips to saving money – Must include text as well as at least one picture (may be hand drawn) for each Table 1: 1 – 11 Table 2: 12 – 22 Table 3: 23 – 33 Table 4: 34 – 44 Table 5: 45 – 55 Table 6: 56 – 66 – Be prepared to present to class