1. Today’s Lesson Discuss yesterday’s videos Discuss Emergency Funds, Roommates, and Budgeting Practice Test Problems Tax Forms Things you will need to bring tomorrow Computer Tax forms, filled in Stock assignment Print Budget Sheets

2. The Videos Yesterday What did you write about? – Was there anything you disagreed with? – What surprised you?

3. Preparing your budget Emergency Funds – At least 6 months Budgets 5, 10, 20, 40 year – You will fill this out for your portfolio Roommates – The #1 way to avoid poverty, just be careful.

4. The Test Make-Up 20 questions randomly chosen from the pretest 5 actual math problems using the calculator to solve for PV, FV, or n 10 questions from our daily conversation, notes, videos, etc. 5 really really easy questions

5. Practice Problems for Our Test 1. You decide to invest $3,500 in a mutual fund that earns an interest rate of 5.75% compounded monthly. In addition, you put another $250 into the account at the end of each month for 5 years. – A. How much is your investment worth at the end of 5 years? – B. How much have you invested including your initial $3500 and $250 monthly contributions? – C. How much interest did you gain?

6. Practice Problems for Our Test 2. You decide to put $1,250 of holiday expenses on your credit card. You only pay the minimum balance of $40 a month. The credit card company charges you 19.8% interest compounded monthly.. – A. How long is it going to take you to pay off your holiday expenses? (round to the nearest month) – B. How much will you end up paying total? – C. How much interest did the credit card company make off you? – http://www.bankrate.com/calculators/credit- cards/credit-card-payoff-calculator.aspx http://www.bankrate.com/calculators/credit- cards/credit-card-payoff-calculator.aspx

7. Practice Problems for Our Test 3. You get a $20,000 loan for college that charges you a 4.3% interest rate compounded monthly. How much should you pay each month to have it paid off in 6 years. – A. Monthly Payment: – B. How much will it cost you?

8. Practice Problems for Our Test 4. You get a 30-year mortgage for a $115,000 home. The interest rate is 4.875% compounded monthly. – A. What is your monthly payment? – B. How much will this mortgage cost you? – C. How much does the bank make on interest?

9. Practice Problems for Our Test 5. You get a 30-year mortgage for a $115,000 home but you put a 10% down payment on the house. The interest rate is 4.875% compounded monthly. – A. What is the down payment? – B. What is your monthly payment? – C. How much will this mortgage cost you? – D. How much does the bank make on interest?

10. Taxes W-2’s and 1040’s – Using the sample W-2 bank information, and the blank 1040 fill out your taxes. – We will go over this. W-4’s Tax Rate Annual SalaryAdditional Tax 10%$0-$8,375Plus $0 15%$8,375 - $34,000Plus $837.50 25%$34,000-82,400Plus $4681.25 28%$82,400-171,850Plus $16,781.25 33%$171,850-373,650Plus $41,827.25 35%Over $373,650Plus$108,421.25

11. Your Stock Portfolio You have $15,000 to invest in the stock market. Don’t forget to diversify. Determine the stocks in which you would like to invest (max 10). At least two of these stocks must be from the DOW Jones 30 (money.cnn.com/data/us_markets Make out a plan of how much of each stock you will buy. You will need to list the price you will spend and the actual number of shares that will buy. Also list the reason why you chose these stocks and investigate the history of the stock from its entrance into the NYSE (or up to 20 years).money.cnn.com/data/us_markets

12. College and Careers For this exercise you will choose three careers (at least one of these should be a back up career and two should require going to college). You will need to find the beginning, median and (if possible) end of career salaries. You will also determine the requirements and suggestions for attaining a position in this career as well as other features like benefits. You can research this information online or use some of the resources you have available. Planning for your career will be part of your portfolio so it is important for you to complete. Use the information available from CFNC and other web-resources to complete the Webquest and fill in information about three colleges. Why three colleges? Some people transfer for various reasons and because we said so. Based on the colleges and careers you have chosen determine three majors (including one for your back up career) you could choose in college.

13. Portfolios Your portfolios will consist of: – 3 houses – 3 cars – IRA planning – 3 careers – 3 colleges and majors – Your 5, 10, 20, 40 year budgeting plans – Emergency Funds – Your Stock Portfolio with histories based on the $15,000 assignment from Friday – Writings about Waiting for Superman, the videos on financial history, etc.

14. Portfolio Grading Portfolios will count as a quiz grade Portfolios will be graded on completion and also 3 parts of the assignment will be picked at random and graded for accuracy. A total of 50 pts for completion A total of 20 points for 1/3 correct A total of 35 points for 2/3 correct A total of 50 points for 3/3 correct

15. Wednesday In class – Correct the Pretest – Work on Portfolios Careers and Colleges For homework – Budget Sheets with emergency funds – Any unfinished parts of the portfolio, like stocks

16. Correcting the pretest Use your computer to find the answers to the pretest. You will work in teams and each be responsible for 10 questions. 1: #21 “T or F” to #20 “If you had a savings” 2: #21 “Inflation” to #31 “Many young people” 3: #32 “Mike and Dave” to #41 “A credit report is” 4: #42 “In terms of credit” to #50 “In financial transaction”

17. How much is too much in student loans? http://www.cfnc.org/site/paying/tools/smartB orrowingCalculator/borrow_smart_calc_intro. jsp http://www.cfnc.org/site/paying/tools/smartB orrowingCalculator/borrow_smart_calc_intro. jsp

18. Portfolios Due Thursday Your portfolios will consist of: – 3 houses – 3 cars – IRA planning – 3 careers – 3 colleges and majors – Your 5, 10, 20, 40 year budgeting plans – Emergency Funds – Your Stock Portfolio with Histories based on the $15,000 assignment from Friday – Writings about Waiting for Superman, the videos on financial history, etc.

19. Thursday In-class – Discuss and turn in portfolios – KWL – Practice questions – Go over Game of Life directions Homework – Study for the post-test

20. Practice 1.Use the PV formula to determine how much each month it will take you to pay off a $200,000 mortgage at a rate of 5.3% in 30 years? In 15 years? How much money do you end up paying in each? 2.Use the PV formula to determine how much you must pay each month to pay off a $10,000 car loan at a rate of 6.2% in 4 years. How much money will it cost you over the 4 years? 1.Use the FV formula to determine how much money will be in your IRA if you deposit $100 a month into an account at a rate of 3% after 10 years. How much money did you actually pay into the account?

21. Friday Post-test (45 minutes) Game of Life (45 minutes)

22. The Game of Life Instructions Usually you play this game with simple math and just play the prices the cards give you. We are smarter than that. First, decide whether you are going to college and or graduate school. Second, play the game but as you pass the milestones in life in the game, fill in the actual amounts using your worksheet and calculator to bring these fictional amounts into the real world. Third, as you play and have paydays and expenses, make a list of your income and expenses. You will turn in your worksheets before you leave.