1. The CHANGE in Your Pocket

2. This program is provided through a grant from the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the American Library Association (ALA). The grant is distributed as part of the library® initiative, an ALA program. This project is in its sixth year of educational partnership with libraries across Colorado and the country.
Marsha Yelick CFA(retired)
Financial Programs Consultant
Ext 831
Thank you FINRA

3. Hope that’s why you are here.
It’s the beginning of a whole new financial year (and you resolve to do things better)!
It’s possible!!!
Hope that’s why you are here.
HAPPY NEW YEAR

4. Good News – so far! YEA! GREAT BEGININGS
So far, this month you have not spent more than you earned.
So far this month, you have not added new, unnecessary debt.
You’re thinking about a balanced personal budget.
You know you should save for retirement.
You know you need an emergency fund.
The stock market has not collapsed (at the time of this PowerPoint).
GREAT BEGININGS

5. So let’s make financial resolutions that make sense.
Sixty-two percent make resolutions.
Over 50% of people who make resolutions include personal financial improvement in the top two!
RESOLUTIONS

6. Eight percent success rate!
What happens to the good intentions?
Eight percent success rate!
BROKE

7. New Year’s Resolutions FAIL because… The resolution is too difficult
New Year’s Resolutions FAIL because… The resolution is too difficult. √ The resolution takes too much time. √ The resolution requires new learning. √ The habits (and attitudes) are too entrenched to change.√
REASONS FOR FAILURE

8. Habits and attitudes – hard to lose!
70% say they live paycheck to paycheck
17% say they do not have savings to cover
1 week’s expenses
49% say they do not have savings to cover
1 month’s expenses
22% have no money left after paying bills
62% of retirees live on less than $10,000/year
53% of Americans have less than $50,000 saved
(43% of those are over 55)
60% experience financial stress
18% of households have negative net worth
For indebted households: (Federal Reserve 2013)
Average credit card debt: $15,279
Average mortgage debt: $149,456
Average student loan debt: $32,140
Americans and $$$

9. EASY QUICK UNDERSTANDABLE POSSIBLE Resolutions
Your NEW New Year’s Resolutions:
EASY
QUICK
UNDERSTANDABLE
POSSIBLE
Resolutions

10. I RESOLVE : to NOT make MORE $$$.
RESOLUTION 1

11. EASY RESOLUTION The MYTH of MORE
NO! The more money I have, the happier I will be.
NO! A big income will keep me out of debt.
NO! The more $ I have, the fewer worries.
NO! If I had more money, I would find love, have fun, worry less, have friends, etc.
EASY RESOLUTION

12. I RESOLVE: to understand COMPOUND INTEREST RESOLUTION 2 Free money
(…from the internet)
RESOLUTION 2
Free money
(MAGIC)

13. How it COMPOUND INTEREST works (not really magic)

14. Watch it in ACTION MAGIC OF COMPOUNDING
MAGIC OF COMPOUNDING

15. mycalculators.com Consider Effects
Play with the calculators to see effect on your own savings plan. Use different rates of return - 5 – %. Try different monthly contribution amounts.
Consider Effects

16. to THINK about how much money I need to retire.
I RESOLVE:
to THINK about how much money I need to retire.
People who think, are willing
to save more.
RESOLUTION 3

17. In RETIREMENT every $100,000 you have, = We think…
Experts RULE OF THUMB:
In RETIREMENT
every $100,000 you have, =
~$4,000 annual income
or $333 /month. (4%)
We think…

18. …and think Experts’ analysis (?) $50,000 / year would be nice.
$50,000 / $4000 = 12.5
12.5 x $100,000 = $1,250,000
Just save ~$1,000 per month for 30 years and earn average of 7%)
…and think

19. I RESOLVE: HOW IS THAT POSSIBLE? to save $4 a day
($4 x 30 days = $120)
HOW IS THAT POSSIBLE?
RESOLUTION 4

20. Saving EVERY DAY Ideas to consider…. (Little things add up!)
Save your change
Cook at home 2 more evenings/month
Eliminate the latte (Automatic Millionaire)
Drink more water (less soda)
Use the Library often
Save on entertainment (just a little)
Combine shopping trips (save gas)
Plan meals based on grocery specials
Take your lunch (once or twice a week)
Put planned purchases on a list – wait
Pay yourself first each month
Others……..
Saving EVERY DAY

21. Save SOMETHING! What is that worth?
SAVE $4/DAY (and invest), you will have ~ $100,000 in retirement (in 30 years).

22. I RESOLVE: Put it on autopilot! "We never see the money,
to make some savings AUTOMATIC
Put it on autopilot!
"We never see the money,
so we don't miss it,"
RESOLUTION 5

23. - PYF (pay yourself first) (so easy in this age of internet)
Ways to AUTOMATE savings
- PYF (pay yourself first)
(so easy in this age of internet)
Automatically deposit a fixed amount of funds at specified intervals into an investment account. (Set-up with bank or investment firm)
Save before you get paid – 401(k) percentage withdrawal (before or after taxes).
Use a change jar (empty each month) for $120.
Autopilot Techniques

24. I RESOLVE: You will sleep well. to take one more free financial class
at the library
RESOLUTION 6
Do you need to know more about budgeting?
Goal Setting and Financial Planning
Do you need a cheap, easy investment plan?
Common Investment Types
You will sleep well.

25. Tonight… You have accomplished what you thought was not possible.
Congratulations
I completed THREE (count them) New Years Resolutions
I will NOT strive to make more money
I will understand compound interest
I will consider how much money I need to retire
I have THREE simple resolutions to complete
I will save $4 a day (or more)
I will automate (some) savings
I will sign-up for another FREE financial class

26. Thank you for attending
Be Money Smart for Life
Thank you for attending