1. Why is Money Important? There’s a lot to learn about money!
Presented by the San Francisco Federal Reserve Bank in Collaboration with Operation Hope

2. There’s a lot to learn about money!
Key Concepts:
Budgeting
Rate of Return
Risk

3. What Is A Budget?
A plan for spending money
Expense
Income

4. A Budget Gives You Control
Budgets
Why do people create budgets?
A Budget Gives You Control

5. Are you going to manage your money? Or…
Is money going to manage you?
What would you do with the money left over at the end of each month?

6. Where can I save or invest my money?
Types of Accounts: Saving and Investing
Savings Accounts
Certificates of Deposits (CD)
Stocks and Bonds
Real Estate

7. Key Factor #1 Saving & Investing Rate of return
The amount of money you earn on your investment
Amount
Rate of Interest
Time

8. What is your return if you invested $500 at 3% for 1 year?
Rate of Return
What is your return if you invested $500 at 3% for 1 year?
$15 3% 9%
15%
21%
$1,000 24 8 5 3
How long would it take to double your money?
The Rule of 72: 72 divided by the interest rate

9. Key Factor #2
What is the Risk?
How much would I have to pay you to…..

10. What is your return if you invested $500 at 3% for 1 year?
Rate of Return
What is your return if you invested $500 at 3% for 1 year?
$15 3% 9%
15%
21%
$1,000 24 8 5 3

11. Two Rules to Live By
Spend Less Than You Make
Pay Yourself First

12. What Happens When You Violate Rule #1?
You Spend More Than You Make
Borrow Money
Credit Card
Balance of $5,000 at 17% Interest
Minimum Payment
81 years to pay off the balance

13. What Happens When You Honor Rule #1?
You Spend Less Than You Make
Honor Rule #2: Pay Yourself First

14. Pay Yourself First How Much Money Could You Earn If…
Saved $15/day until you were 65?
At Age 65
5.00%
Rate of Return
$420
Save $15 everyday for one month
$15
Coffee/hot chocolate & snacks
$1,000,000

15. Why is Managing Your Money Important?
Spend Less Than You Earn
Pay Yourself First
Budgeting
Rate of Return
Risk

16. Got Questions?