Personal Finance Fundamentals Disclaimer: The

Transcript:Personal Finance Fundamentals Disclaimer: The:
Personal Finance Fundamentals Disclaimer: The views expressed are those of the presenters and do not necessarily reflect those of the Federal Reserve Bank of Dallas or the Federal Reserve System. TEKS (18) Personal financial literacy. The student understands the role of individuals in financial markets. The student is expected to: (E) identify the types of loans available to consumers; (F) explain the responsibilities and obligations of borrowing money; and (G) develop strategies to become a low-risk borrower by improving one's personal credit score. (19) Personal financial literacy. The student applies critical-thinking skills to analyze the costs and benefits of personal financial decisions. The student is expected to: (A) examine ways to avoid and eliminate credit card debt; (B) evaluate the costs and benefits of declaring personal bankruptcy; (20) Personal financial literacy. The student understands how to provide for basic needs while living within a budget. The student is expected to: (A) evaluate the costs and benefits of renting a home; (B) evaluate the costs and benefits of buying a home; and (C) assess the financial aspects of making the transition from renting to home ownership. 3 M’s Moving On and Moving Out Mindset Money Management Would you like to be a millionaire? I know the secret…. High School Graduate $1,486,000 College Graduate $2,557,000 Spend less than you make! Income is not the key…saving is. Wealth Most of us define wealth as the dollar value of the assets that we own. To determine our wealth we add up all that we own and subtract all that we owe – that equals our net worth. Simply put: Own – Owe = Wealth Budgeting Budgeting (controlling your spending) will allow you to increase your wealth. 3 M’s of budgeting Mindset (First M) A budget will not tell you what to do, you choose what to do. Stop saying “ I can’t afford” , say “I choose to.” Be creative with alternatives. What type of spender are you ? Everyone stand. Sit down when I call out something you can’t give up: Candy Cookie Soda Bottled water Sit down when you can’t give it up Starbucks Going out with your friends once a week Buying lunch vs. bringing lunch Seeing the latest movies Getting your nails done Getting your hair done once a week Sit down when you can’t give it up. Cable television Latest video games Cell phone What type of spender are