1. Ginger L. Hack, FACS Educator,
Financial Freedom
Super Savings
Ginger L. Hack, FACS Educator,
USU Extension
Utah State University is an affirmative action /equal opportunity institution.

2. Stock market Crash October 29th, 1929 Black Tuesday
An enormous drop in stock prices on the stock exchange.
Contributed to the Great Depression of the 1930’s, which lasted almost 10 years.
Crowds gather outside the New York Stock Exchange on Black Tuesday.

3. Three Main Reasons to Save
Emergency Funds
Purchases
Wealth Building or Retirement

4. Pay Yourself First
Use direct deposit and automatic transfers into savings account
Envelope/Purchases
Retirement Accounts

5. $1000 emergency Fund #1 Savings priority.
One-half of all Americans have no savings
Start now
Pay the minimum on credit cards until you have reached this goal
After you have reached this goal, keep adding to your savings until you reach…..

6. 3 To 6 Months of Expenses What would happen if you suddenly became:
Unemployed
Seriously ill
Widowed
Divorced
Most households should save approximately $10,000 in a money market account.

7. Sinking Funds
Save a small amount each month for a certain amount of time before making your purchase. This is more specific than a savings account since you know how much you contribute and when you will use it.
Christmas
Car
Household repairs
Big ticket items

8. Leading Causes of Overspending
The “latest and greatest” syndrome
Using credit instead of cash
Eating out
Impulse buying
Emotional/Stress spending
Keeping up an image or lifestyle
Not knowing how much you have to spend--not keeping track
Spending money on things you don’t use
Keeping up with the Jones’

9. Ways To Save Money Quit using credit cards Use the envelope system
Stop eating out
Quadruple casserole recipes and freeze the extra ones
Wash your own car
Cook from scratch
Get a crock-pot
Grow a garden and preserve the harvest
Cancel gym memberships
Brown bag your lunch
Use the 24-hour rule before making purchases
Invite friends over instead of going out
Repair clothing instead of tossing it out
Make gifts instead of buying them
Swap babysitting with neighbors
Fix things yourself
Use a simple razor
Make your own cleaning supplies
Use the library
Cancel the cable channels you don’t watch
Buy in bulk

10. Ways to Save Money (cont.)
Don’t incur overdraft or late fees
Keep tires inflated
Review cell phone, cable, satellite, and internet service costs—shop around and ditch services you don’t use
Live in a smaller house
Shop for cheapest interest rates
Buy used when you can – especially cars
Check out free events in town
Make your own personal care items
Air seal your home
Do your own manicures
Give up daily trips to Starbucks –make your own coffee
Use coupons and shop sales
Write a list before shopping and stick to it
Negotiate rates with credit card companies or do a balance transfer
Clean out closets-have a garage sale or sell to consignment store
Pack food for road trips
Design your debt snowball plan

11. Step Down Principle
Movie theatre, new release, night show $9.50 Movie theatre, new release, matinee $6.50 Movie theatre, less recent release, night show $3.00 Movie theatre, less recent release, matinee $2.00 Rental $ $3.00 Local Library $0

12. What Are Your Goals? Vacations Taxes Christmas Retirement College
New Car
Home

13. Where To Deposit Your Savings
Certificates of Deposit
Money Market Savings Accounts
Savings Bonds

14. Investment? Certificates of Deposit Money Markets Bonds Stocks
Mutual Funds
Annuities

15. Certificate of Deposit
A certificate issued by a bank to a person depositing money for a specified length of time. A CD bares a maturity date, a specified fixed interest rate, and can be issued in any denomination.

16. Money Markets
A money market account is a financial account that pays interest based on current interest rates.

17. Bonds
A bond is an investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate.

18. Stocks
A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.

19. Mutual Funds
A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks.

20. Annuities
A contract sold by an insurance company designed to provide payments to the holder at specified intervals defines annuities. Usually done after retirement. All annuities are tax deferred.

21. Retirement Funds Fully fund all retirement plans
“Max out” your employers contributions
How much can you contribute to your retirement without tax penalties?
401K
IRA
Roth

22. Pay off Your House
30 year Mortgage vs. 15 year

23. How do you know if you are better off?
Assets – Liabilities = Equity

24. Questions?
“Do not save what is left after spending, but spend what is left after saving.”
-Warren Buffett
Utah State University is an affirmative action /equal opportunity institution.