1. Anne Marie Anderson, CPA & SIFE

2.  Goal setting ◦ Short-term (< 3 months)  Present for boy/girl friend  Duke Nukem video game ◦ Intermediate (3 months – 1 year)  iPad  Phone ◦ Long-term (> 1 year)  Car  4 year college

3.  Determine your time frame  Income ◦ Gross vs net pay  Who is FICA and why does he take all my money? ◦ Understand all items being taken out of your paycheck

4.  Expenses ◦ Fixed ◦ Variable ◦ Out of pattern ◦ Goals as expenses ◦ Savings ◦ Fun!  Needs vs. wants

5.  Evaluate your budget (positive/negative cash flow)  Monitor over time ◦ Make adjustments as needed ◦ Be flexible

6.  Income - ??????  --Expenses: ◦ $400,000 NJ home, 30 year mortgage, $10K taxes

7.  Income - ??????  --Expenses: ◦ $2,800 Mortgage/Real estate tax ◦ $300 Utilities ◦ $150 Phone/Cable/Internet ◦ $250 Car/Home Insurance ◦ $200 Gas ◦ $75 Clothes ◦ $200 Food/Groceries  Total Expenses = $3,975

8.  Breakeven: ◦ Net pay = Expenses, so you must bring home $3,975 per month or $47,700 per year to breakeven  $47,700 net pay is ≈ $70,000 gross pay after Federal, state, and FICA taxes  What did I leave out?

9.  Goals on index cards – put them in the cash or credit card slot of your wallet  Make a picture of your goal the backdrop of your computer  Tell friends/relatives of your goals so they can help reign you in  Envelope system…..

10.  Where to put what you save…. ◦ 401K ◦ Roth accounts ◦ CD’s  Some places are better than others, but starting to save early is the key

11. 1-11 Person A: Saves $2000 per year from age 22 to age 35 and then stops Person B: Starts saving $2000 per year beginning at age 35 and never stops Both earn 8% on their investments. At age 75: Person A has $1M in savings Person B has $561K in savings

12.  College students – I don’t have money to save! ◦ Where can you cut? ◦ Break your habits!  Include savings as an expense item in your budget - out of sight/out of mind  Direct deposit – split a portion into savings  Coins count - $15 billion in loose change

13.  Credit cards…….. ◦ Be wary, credit card companies prey on college students. ◦ Rule of thumb – if you don’t have the cash to buy something, wait until you do! ◦ Pay more than the minimum payments – ALWAYS! ◦ Debt consolidation companies…..more harm than good? ◦ Call credit card companies directly

14.  The average person spends money 3 times a day.  Putting aside every coin you touch results in saving about $50 a month.  A $5 sandwich usually has less than $1 of ingredients.  Some 40% of American families annually spend more than they earn.  Americans spend more than 40% of their food dollars each year eating out.  One out of every four Americans believe their best chance of getting rich is by playing the lottery.  The average interest rate on credit cards is 18.9%.

15.  College Money Insider ◦ http://www.overturemarketplace.com/insider http://www.overturemarketplace.com/insider  Managing your money while in college ◦ http://moneyfor20s.about.com/od/makethemostofyourmo ney/tp/collegemoney.htm http://moneyfor20s.about.com/od/makethemostofyourmo ney/tp/collegemoney.htm  360 degrees of Financial Literacy ◦ http://www.360financialliteracy.org/Life-Stages/College- Students http://www.360financialliteracy.org/Life-Stages/College- Students  Debt consolidators (reputable ones…) ◦ http://www.360financialliteracy.org/Topics/Credit-and- Debt/Credit-Cards/I-m-one-of-those http://www.360financialliteracy.org/Topics/Credit-and- Debt/Credit-Cards/I-m-one-of-those  Student budget calculator ◦ http://www.360financialliteracy.org/Topics/Budgeting- Spending/Budgeting-and-Saving/Student-Budget http://www.360financialliteracy.org/Topics/Budgeting- Spending/Budgeting-and-Saving/Student-Budget  Feed the Pig ◦ http://www.feedthepig.org http://www.feedthepig.org

16.  http://www.youtube.com/watch?v=gZkuWLdS puk http://www.youtube.com/watch?v=gZkuWLdS puk