5/19/15 – BR- What does it mean to invest in something? - Test, grades, etc - Ambassadors and this Saturday.4 ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 0

To do – today! Pick up new book. Read pp. 3-8 Define: Interest, principal, saving, investing, windfall Complete activities 4.1 and 4.2 On page 8, analyze the 4 types of popular savings options. What is it? Where can you get it? What are the pros and cons of the option ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 1

Dips in Income Teen Income Challenges Irregular work hours Part-time hours Low-paying jobs Seasonal work Temporary work More Income Flow Challenges Reduced hours Commission work Job change Interruption in work situation: – Layoff – Fired – Disability leave – Unpaid leave – Military duty – Sabbatical – Personal choice – Incarceration ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 2

Preview Today we will answer these questions: How will my work situation impact my financial status? How do I manage my spending when my income isn’t predictable? How can I improve my chances of being hired and keeping a job? What is an entrepreneur? Use what you learn today to prepare for changes in your job status. ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 3

Dig the well before you are thirsty. --Chinese Proverb ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 4

An Offensive Strategy Fill your well Build an emergency fund for a “rainy day” Control your debt load Have adequate insurance Be a valued employee Grow relationships rather than burn bridges Build a network personal references Watch for opportunities for additional income Build up skills; keep learning ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 5

Dealing with Down Times Know and plan for the bottom line – Determine minimal needs – Resist urge to blow the whole paycheck now Anticipate dry periods by setting aside money in advance – Average out occasional costs over the long-term – Spread seasonal income out all year Have emergency reserve to cover several months of expenses – Use only for emergencies – Make it #1 priority to replenish when dry spell is over Consider additional sources of income Have long-term savings goals in place so necessary big-ticket purchases don’t sneak up on you ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 6

Facts About Unemployment Job loss can’t be your fault Employer must approve unemployment benefits Collect weekly check up to 26 weeks if approved Check amount depends on state formula, usually no more than half of average weekly earnings Unemployment benefits are taxable income ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 7

LACE Up if Losing Your Job L isten – Reason for termination – Final instructions about pay and any benefits A sk – Assistance to help land another job – Final employee paperwork C onfirm – Where to send final paycheck and year-end W-2 form – Any unemployment claim E laborate – Inform creditors if challenged to pay bills during transition ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 8

Mind the Gap Never lie Never blame someone else Keep learning and growing ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 9

7 Super Skills for Any Career Effective oral and written communication Critical thinking and problem-solving Collaborating and leading by influence Agility and adaptability Initiative and entrepreneurialism Accessing and analyzing information Curiosity and imagination ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 10

Jumpstart the Journey Part-time or temporary jobs Training camps and courses Skill and career assessments Interview or shadow people Professional associations Career-related clubs Your own business Internships and volunteer work ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 11

Internships and Volunteer Experience Potential Earning Power: Build skills and accomplishments for your resume Relevant work experience Impressive references Valuable connections College credit Perks Full-time job ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 12

Entrepreneur: A person who takes the risk to start up and run a new business ©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change 13