1. Do Now: Goals 0 Write down one goal you have – it can be anything! (To graduate college, to make your own album, to increase your stuffed animal collection, etc.) 0 Now, list all of the things (that you can think of) that you would need to achieve that goal as well as all of the things you would need to DO to achieve that goal.

2. Reminders 0 Bring your textbook on Wednesday 0 Notebook check in one week 5/20 0 Late work due in one week 5/20

3. Saving If you would be wealthy, think of saving as well as getting. -Benjamin Franklin (1706 – 1790) Objective: Evaluate benefits of saving

4. Saving 0 Saving your money can seem less exciting than the idea of spending it. 0 However, saving does not mean never spending your money. Think of it as “consuming less now in order to consume more in the future.”

5. Why save? 1. Saving Helps the Economy Grow 0 The money people save contributes to the nation’s overall economic growth 2. Saving Can Help You Reach Important Goals 0 We all have goals for the future. Whatever your goal, it is likely to require money.

6. Why Save? 3. Saving Can Help You Weather Hard Times 0 Financial misfortune can strike at any time— Unless you are ready, you could find yourself facing real financial hardship. 0 To be prepared for a financial emergency, you should build up a “rainy-day fund” 0 Should contain at least six months’ worth of salary. 0 Some say that $2,000 to $3,000 is enough as long as you also have insurance to cover catastrophes. 0 This fund should be used only for real emergencies.

7. Why Save? 4. Saving Can Help You Fund Your Retirement 0 Many people starting careers today will live for 20 or more years after they stop earning a paycheck. 0 The earlier you begin accumulating that money, the more you will have when the time comes to retire. 0 Most retired people support themselves using three sources of money: 0 Social Security 0 Company retirement plans 0 Personal savings

8. Retirement Plans 1. Social Security (gov. retirement) 0 A government program that provides cash payments to retired workers. 0 Funded by taxes paid by workers and their employers.

9. Retirement 2. Company retirement plans 0 Pension plans: employer makes contributions for the future benefit of employees 0 401(k) plan: employees have money automatically taken out of their paychecks and put into retirement investment accounts 0 Employers may also contribute to the plan by matching all or part of an employee’s contribution. 0 Participants may subtract their contributions from their taxable income when they file their tax returns (which lowers the amount of income tax they are required to pay)

10. Retirement Plans 3. Personal savings 0 Such savings may include a variety of financial assets, including private retirement plans. 0 Individual Retirement Account (IRA): private retirement plan sponsored by the federal government. 0 Anyone who earns income can put money into an IRA. 0 To encourage Americans to do so, the government has built tax advantages into IRA plans.

11. So… How do you save money? 0 Start with a “rainy-day” fund 0 Set goals for further saving depending on your wants and needs 0 Research saving options 0 Create a budget that includes savings plan 0 Commit to saving

12. Financial Advice Congratulations, you just landed a new job as a financial adviser!!! Design a financial advising brochure that you might distribute to prospective clients. Fold a sheet of paper in thirds just as you would fold a letter to fit into an envelope. Then create a brochure that includes ALL of the following: 0 A front cover with an appropriate title, graphic, and your name 0 An explanation of why spending, saving, and investing are important (1 paragraph) (include at least 1 image) 0 At least three tips on spending (can be bullet points) (include at least 1 image) 0 At least two tips on saving and a brief explanation of available savings options (include at least 1 image) 0 At least two tips on investing and a brief explanation of available investment options (include at least 1 image) 0 Any other creative touches or information that might be of value to your clients!