1. Money Management

2. How much are you worth? What a person owns minus what they owe
Assets (things owned with value) minus liabilities ($ owed) = net worth

3. Wills
A legal declaration saying how your property is distributed

4. Tax-anticipation check
Bank sets up account to receive your tax refund
Bank gives you check minus fees
WARNING: Fees are very high!

5. Renting a house/apartment
Advantage:
Fewer responsibilities

6. Renting a house/apartment
Disadvantage:
You don’t build equity (increased value of home)

7. Renting
Security deposit—money you pay before you move-in; you get it back when you move out, assuming you did not damage the place

8. Owning a house Advantage:
You can deduct the interest on your mortgage (home loan)…this is huge!!!
You can build equity!

9. Owning a house
Disadvantage
More responsibilities

10. Owning a house
The higher your down payment, the lower the mortgage and mortgage payments

11. Retirement Social Security
Each month, you get a certain amount of money based on your top 35 years of earning
Normal retirement age is 67

12. Retirement
Pensions
Each month, you get a defined amount from the company you worked for (if they offer one)
Tax deferred—taxes are due on funds when received

13. Retirement
401(k)
Companies make a contribution to the plan and employees may make contributions

14. Retirement
401(k)
Tax deferred!
Reduces your taxable income now!

15. Retirement
401(k)
If you move jobs, you can roll your 401(k) into a new one
If you take the money out, you owe taxes on it

16. Retirement Traditional IRA (401(k))
You pay taxes when you get the money out later

17. Retirement Roth IRA You pay taxes when you put the money in
You don’t owe any taxes later