1. MoneyCounts: A Financial Literacy Series
Principles of Personal
Financial Literacy
Brad L Yeckley MBA,PhD(C)
Assistant Director of Financial Literacy
The Pennsylvania State University
128 Outreach Building
University Park PA 16802

2. Description/Learning Objectives
A Young person starting out his/her future needs to know the basics of personal Financial Literacy, this workshop is to arm you with principles of personal financial literacy that should guide you throughout your life.
Understand the “must-know” personal finance principles
Be able to apply these principles to one’s life
Assess your relationship with money management
Theory
Action
Behavior
Lets watch a video!

3. Map Your Financial Future

4. Know Your Take Home NET Pay
Why is this important to understand now?

5. Know Your Take Home NET PAY

6. Budget Your Money

7. A Healthy Budget Sample

8. Pay Yourself First

9. Save and Invest at early AGE

10. Needs Versus Wants

11. Needs Versus Wants

12. Don’t Borrow What you Can’t Pay Back

13. Don’t Borrow What you Can’t Pay Back
Student Loans
Make friends with your servicers
Do it early….
Understand Repayment Plans
Use the repayment plan estimator.
Pay what you can afford. Avoid negative amortization.

14. Know the Rules Rule of 20/10 Rule of 72
Total Debts excluding mortgage should not exceed 20% of net yearly income
Monthly payment should not exceed 10% of monthly net income
Example: Your net yearly income is $60,000 your total debts should not exceed $12,000. Your net monthly income is $5,000, your monthly payment should not exceed $500
Rule of 72
To determine how long it will take for your money to double, divide the interest rate into 72
Example: an account earning 6% interest will double in twelve years
(72 divided by 6 equals 12)

15. Protect your credit history

16. Stay Insured

17. Healthy Relationship with Money
In summary, financial well-being can be defined as a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life.
The four elements of financial well being (cfpb)
Present
Future
Security
Control over day-to-day
Capacity to absorb financial shock
Month to month finances
Freedom of Choice
Financial freedom to make
On track to meet financial goals
Choices to enjoy life
Consumer Financial Protection Bureau (Jan 2015)

18. MoneyCounts: A Financial Literacy Series
Thank You!
Comments and Questions
Brad L Yeckley MBA,PhD(C)
Assistant Director of Financial Literacy
The Pennsylvania State University
128 Outreach Building
University Park PA 16802