1. FINANCIAL CHECK-UP VANESSA F. BRIGHT, EXTENSION EDUCATOR (FIELD FACULTY), UNIVERSITY OF MARYLAND EXTENSION The University of Maryland, College of Agriculture and Natural Resources programs are open to all and will not discriminate against anyone because of race, age, sex, color, sexual orientation, physical or mental disability, religion, ancestry, or national origin, marital status, genetic information, or political affiliation, or gender identity and expression.

2. University of Maryland Extension The University of Maryland Extension offers solutions in your community by bringing research-based programs to you for practical, everyday use. The Money Smart Impact Team is your source for unbiased, financial education. http://extension.umd.edu/finance

3. Financial Check-up – Your Financial Future Today Set financial goals Financial statement Budget and money management Build credit and manage debt Protect wealth with insurance Save and invest

4. Make your goals smart

5. Cash Flow Statement (Net Gain or Loss) Income Expenses Net Gain or Loss

6. Character: Sarah Job: Mobile Phone Sales Monthly Take-home Pay: $3850 Sarah has a well-paying job in mobile phone sales. However, she doesn’t like her job very much. Nevertheless, her job pays her bills. Sarah has always loved photography. In her spare time, she takes photographs of nature and people enjoying life. She wishes that she could find a job that would pay her to do what she loves. She graduated from college with a Bachelors in Marketing. Sarah recently got a job offer for a position photographing special events, but the pay is not enough to cover her current bills. Her take home pay at the potential job will be $3000. Her current gross income is $6311 and she takes home $3850 after taxes. Sarah’s Goal: To find a way to accept her dream job at the lower take-home rate and still meet her expenses.

7. Track your spending DateItemCostNeed or Want?

8. Step One: Identify Your Income Income SourcesMonthly Amount $ Wages Interest and Dividends Bonuses Rental Income Other Total Income

9. Step Two: List Your Expenses ExpensesMonthly Amount $ Savings and Investments Housing Utilities Phone Insurance Groceries Transportation Other Total Expenses

10. Step three: Compare Your Income and Expenses Income and ExpensesPer Month $ Total Monthly Income Total Monthly Expenses Subtract Expenses from Income

11. WHAT IS A CREDIT SCORE? WHY IS IT SIGNIFICANT? Mortgage AmountCredit ScoreBest Interest RateMonthly Payment $200,000Marissa’s Score 7403.99%$953.68 $200,000Connie’s Score 6404.75%$1043.29

12. PROTECT YOUR FINANCIAL FUTURE Insurance helps to protect you from a major financial loss. Insurance is simply a promise of reimbursement for a loss in return for a paid premium. You should shop around for insurance products. Insurance is available for all types of risks (e.g., health, disability, auto, home, life)

13. Insurance Needs Throughout life ScenarioType of InsuranceWhen Does it Begin? I hit a car while backing out of my driveway. AutoWhen car is purchased I fell off a ladder while painting my house and broke my leg. My neighbor injured his back while walking up my steps with a broken rail.

15. The Power of Compound Interest YearBalance StartInterestBalance at End Now$1000$1000 x 10% = $100$1100 1 $1100 x 10% = $110$1210 2 $1210 x 10% = $121$1331 3 $1331 x 10% = $131.10$1464.10 4 $1464.10 x 10% = $146.41$1610.51 5

16. Rule of 72 Years3%6%12% 010,000 620,000 1220,00040,000 1880,000 2420,00040,000160,000 30320,000 3680,000640,000 421,280,000 4840,000160,0002,560,000

17. What Happens When You Start Saving Early? JoAnn’s IRA (starts at age 22)Susan’s IRA (starts at age 31 Average annual rate of return9% Number of years of contributions 934 Amount contributed$1000 per year ($9000 total) $1000 per year ($34,000 total) Future value$243,863 at age 65$196,982 at age 65