Public Service Presentation on Personal Finance (Grades 7-12)

Financial Basics | Beaus’ Activity

October 16, 2011

Odysseus Lanier McConnell Jones Lanier & Murphy LLC

Jarvis Hollingsworth Bracewell & Giuliani

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Mind Your Money

     

Introduction Financial Literacy Test Current Economy Financial Soundness Life Goals Conclusion

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Mind Your Money

1.

A "budget" is a: a. b. c. d.

Borrowing plan Savings plan Spending plan Savings and spending plan

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Mind Your Money

2.

Jordan has $372.00 and does not get paid for two more weeks. If he decides to spend $370.00 for a second stereo, which of the following can he do this weekend? a. b. c.

d.

Hang out with his buddies Go to a concert with a date Buy some new CDs for his stereo Go to the movies with his friends

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Mind Your Money

3.

True or False: When you save money in a bank account it is protected by the federal government.

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Mind Your Money

4.

Which of the following is a loss covered by insurance? a. b. c. d. e.

Fire A Body Part Theft A disability All of the above

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Mind Your Money

5.

Interest is: a. b. c. d.

A record of a person's payment activity The total amount you owe when you borrow money Payment you make for the use of borrowed money, usually a percentage of the total loan amount Whether the bank cares about you

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Mind Your Money

6.

Which of the following is true about a debit card? a. b. c. d.

You are charged interest on your purchase The amount of your purchase is deducted directly from your bank account You do not need a bank account to have a debit card You get a debit card when you purchase stock

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Mind Your Money

7.

The maximum amount you can charge on a credit card is called the: a. b. c. d.

Credit limit Capacity Credit ratio Collateral

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Mind Your Money

8.

True or False: A check is a promise to pay someone money.

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Mind Your Money

9.

An entrepreneur should be a hard worker and motivated. Which of the following characteristics will many entrepreneurs also have? a. b. c.

d.

Insecure Wealthy Pushy Risk-taker

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Mind Your Money

10. When items are bought on credit and paid for over a long period of time, the cost to the buyer: a. b. c. d.

Is more than if the items were bought with cash Variable depending on the interest rate Is the same as if the items were bought with cash Is less than if the items were bought with cash

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Mind Your Money

11. True or False: You can build wealth by spending more than you earn.

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Mind Your Money

1.

D.

2.

A.

3.

True

4.

E.

5.

C.

6.

B

7.

A.

8.

True

9.

D.

10.

A.

11.

False 15

Mind Your Money



Financial Crisis a. b.

  

We spent more than we had Greed

Mortgage Crisis Bailout Recession 

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Mind Your Money

  

Make Money Manage Money Protect Money

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Make Money

   

Education Profession / Skills Entrepreneurship Work ethic

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Manage Money

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Live within your means Budget Savings Account a. b. c.



Investment a. b. c.



Pay yourself first Plan for the future Cash Grow your $ Build wealth Companies, products

Credit 21

Manage Money

    

Lending your $$ to a bank Bank pays you interest on your $$ Money grows slowly but is secure Access to your $$ at any time Nest egg for future use

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Manage Money

ď‚ž

Stocks – Most Common Investment a. b. c. d. e.

f.

Buying a piece of company Become an "owner" of the company Purchased through the stock market Price of stock directly correlated to the company's performance Sometimes like a roller coaster with ups and downs Changes in the economy can also affect the stock price

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Manage Money



Bonds a. b.

  

U.S. Corporate

Real estate Mutual Funds Direct Investments

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Manage Money

ď‚ž

Savings Account is safer a. b. c.

Insured by federal government Company performs poorly, price of stock goes down Could lose some or all of money investing in stock

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Manage Money

ď‚ž

Stocks a. b.

ď‚ž

Potential to grow money faster Savings account interest rate is lower so money grows slower

Best to have some of each depending on your appetite for risk

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Manage Money

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



Important Financial Tool Must be used wisely and carefully Borrow $$ to pay for items with promise to pay it back Usually requires you to pay back more than you borrowed Credit history (score) impacts future ability to use credit

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Manage Money

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Credit Cards Car loan Home loan College tuition

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Protect Money

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Legal contract Financial protection against losses Company pays for losses in exchange for monthly premiums Health, car, home, theft, death are examples

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Protect Money

  

Make Manage Protect

…THEN  Spend the Money

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Spend Money

ď‚ž

Understand the business environment a. b. c. d. e.

ď‚ž

Applies to all professions Workplace rules Ethics/Code of Conduct Professionalism Attire

Entrepreneurship

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Spend Money



Financial Goal Setting a. b.

Live within your means Manage your $$ 

c. d.

Don't let $$ manage you

Pay yourself first Plan for the future 

College



Retirement



Major purchases

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