1. Savings and investing
Personal Finance

2. Diversification
Spreading out the risk of a portfolio over many different types of investments
Mutual Funds
Collect small amounts money from many investors
Buy small amounts of equities from many sources
Index Fund
Money Market

3. Liquidity Measures how available the money is for the saver
Period of time it takes for saver to get the money and spend it

4. Risk vs. Return Balances like a teeter-totter
Depends on the goals of the saver
Time
Income
Expenses

5. Balancing risk/return and liquidity

6. Investment counseling activity
Work in groups to devise an investment strategy for 6 different households.
Each have unique circumstances
Each have $50,000 to use
You have 30 minutes
5 minutes per scenario
Remember the Baby Steps
Consider the investment strategies we just learned
Liquidity, Diversification, Risk v. Return

7. Dollar-Cost Averaging
Directing regular, small amounts of money toward the stock market
10 % gross income each paycheck
Buy low
Sell high

8. Baby Steps Dave Ramsey Small, smart steps will get you to security
Small, smart steps will get you to security
A place where your money is working for you
Not you working for your money
Be Radical
In decision making, not spending
Be Intentional
“On paper, on purpose”

9. Steps $1000 Emergency Fund $0 of Personal Debt
3-6 Months of Living Expenses
10-15% in a Retirement Account
College Funding
For children
Scholarships
Work
20/20* Down Payment/Life of the Loan (House)
50/50* Living/Giving