1. Personal Finance Introduction and Financial Facts

2. What is Personal Finance?  Personal Finance deals with everything in your life that involves money.  Everyone has at least some experience with money. This includes everyone sitting in this classroom.  We have to ask ourselves why so many people have money problems?  We will work this semester to provide you with information that will help you make wise financial decisions.

3. Some Financial Facts  Over 40% of Americans spend more money than they earn.  The average savings rate in the United States is 2.8%. (Excludes money that is invested in retirement accounts).  Nearly half of all working age Americans have less than $10,000 saved for retirement.

4. Continued  96% of all Americans will be financially dependent on the government, family, or charity at retirement.  Only 2% of homes in the United States are completely paid for and do not have a mortgage.  The average American carries a balance of $8,400 in credit card debt. (If a person paid 2% of this balance per month, at an APR of 15%, it would take over 30 years to pay off the balance).

5. Continued  35% of all bankruptcies are from people under the age of 35.  Tennessee leads the nation in personal bankruptcy filings.

6. Teen Money Facts  According to a recent survey conducted by the financial firm Charles Schwab: 45% of teens stated that they could use credit cards. 26% of teens understood credit card interest and fees. 40% felt that they could create their own budget.

7. Continued 33% of teens could read a bank statement, balance a checkbook, and pay bills. 20% claimed to have some idea about how to invest money. 32% of American teens have credit card debt. 56% of teens stated that they were concerned about their parents/guardians financial well being.

8. Good News!  The statistics that we just discussed are bleak. However, the good news is that YOU have control over your financial future and time is definitely on your side!  The financial habits that you learn now will have a profound impact upon your financial future.  The financial decisions you make will determine whether you will have control over your finances or your finances will control you!