2. 1 Saving The Right Way!

3. Sally vs. Will 2 Who do you want to be like? $Will? $Sally?

4. Sally vs. Will 3 Will $Starts saving at age 35 $Saves $2,000 per year $Saves until he’s 65 years old $How much does he save?

5. Sally vs. Will 4 Sally $Starts saving at age 25 $Saves $2,000 per year $Saves until she’s 35 years old $How much does she save?

6. Sally vs. Will 5 Discover who has more at age 65 $Figure out how much each person has each year Use the table of Will and Sally age 25- 65 Each person gets 12% interest per year How much will they have with interest by age 65? Go to table

7. Sally vs. Will 6 How do I figure this out? $Fill in 0’s for all years before they start saving $Put in 2,000 Multiply by the percent to find the interest What would I multiply by? $Put in previous total + $2,000 * 1.12 2000 *1.12 +2000 *1.12 Go to table

8. Sally vs. Will 7 What about Sally? $She quits saving after age 35 $What do I have to do to her formula? At age 35 you no longer + $2,000 Just take previous total * 1.12 Go to table

9. Sally vs. Will 8 Age 25 26 : 34 35 36 37 : 64 65 00000000 Will Sally +2000*1.12 +2000*1.12 +2000*1.12 +2000*1.12 +2000*1.12 +2000*1.12 +2000*1.12 +2000*1.12 +2000*1.12 +2000*1.12 +2000*1.12 *1.12 *1.12 *1.12 *1.12 *1.12 *1.12 *1.12 Page 6 Page 5

10. Sally vs. Will 9 Now who do you want to be like? ?

11. Sally vs. Will 10 Let’s take it to the computer M r. D i c k R u l e s

12. Sally vs. Will 11 What’s a spreadsheet? $A table where you can enter words, numbers, and formula’s

13. Sally vs. Will 12 How will we use it? $To find out how much Will and Sally make $To find out how much you could make $To see how you could make a million dollars. How much you could deposit now How much you could deposit each year

14. Sally vs. Will 13 How do I use it? $Go to My computer $Go to the shared drive $Open Mr. Dick $Open Budget Spreadsheet $Save under your server 2011XXX

15. Sally vs. Will 14 What are the other columns for? $Column C Create your own budget $Column D Put money in once to make a million $Column E Put money in yearly to make a million

16. Sally vs. Will 15 What did Sally have in the end? What did Will have in the end? Describe your savings plan And how much you saved What did you start with? What did you end with? How much did you put in each year?

17. Sally vs. Will 16 Build a new column on your spreadsheet for Always Early Al who is saving $700 a year from age 20 until he is 35 and then will just allow it to collect interest until he's 65. He will be collecting 6% the whole time in a CD. $What is the formula for age 20? $What is the formula for age 36? $How much will he have at age 65? $How much will he have at age 25? Answer Key

18. Sally vs. Will 17 The End

19. Sally vs. Will 18 How to create your own budget $Go to column C $Go to your current age $Enter the equation for adding a certain amount of money to the previous year. $Copy it down. $Change the amount you are adding three times before you turn 65. Back

20. Sally vs. Will 19 How to put money in once to make a million $Go to column D $Go to your current age $Enter a certain amount of money. $Go the next cell and write an equation for making the previous cell collect interest, but not collect any more money. $Goal is to end with close (within $12) to $1 million @ age 65 Back

21. Sally vs. Will 20 How to put money in every year to make a million $Go to column E $Go to your current age $Enter an equation that adds money every year and collect 12% interest. $Goal is to end with close (within $12) to $1 million @ age 65 Back