Financial Puzzle

1. Financial Puzzle Saving

2. Dave? • What do we think of him? • What do we think of the book setup? • Notice stats on the side – 70% of consumers live paycheck to paycheck

3. Watch Dave Ramsey Fill in notes • Baby Step 1: $1,000 • Put $500 • Saving must become a priority • US has a negative savings rate • Saving money is about emotion and contentment • Money is amoral

4. Why save? • Emergency Fund • Purchases • Wealth Building

5. Emergencies are going to happen • What emergencies have happened that you need money for, now? • Sub pump went out • Tooth needs work • Car needs work • Murphy’s Law • 3-6 for you • Many say 8 months to 2 years • Money Market • Deposit account, relatively high rate of interest, requires a higher minimum balance to earn interest or avoid monthly fees

6. More Fill in the blank • Investment • Touch • First • Pay yourself first! • When you get a paycheck put a set amount or % to the side for ‘savings’ • First get the emergency fund set up, then save for other things • Purchases

7. Even more fill in the blank • Borrowing • Sinking Fund • Pool of money set aside to repay bond or make improvements (i.e. school uses sinking fund money to fill in gaps – signs around the building) • Wealth Building • Discipline Marathon • Authorized Checking • Allow bank to write you a check – • Most of you will have direct deposit = direct deposit into savings instead of checking • Compound Interest • Now • Interest

8. Where to keep your money safely

9. Where you can keep your $ at the bank • Safety Deposit Box • A fireproof metal strongbox (usually in a bank) for storing valuables • Saving Accounts • A bank account that earns interest • Checking Accounts • An account where the holder can write checks • Pay less interest than savings accounts, or none at all

10. Other accounts at the bank • Certificate of Deposit • Time deposit, which is insured, with a specific, fixed term, and, usually, a fixed interest rate • At Chase - $1,000 minimum deposit • CD Term – APY: 6 Month = .2% 12 Month = .25% 18 Month = .35% 24 Month = .40% 36 Month = .5% • Money Market • Deposit account, relatively high rate of interest, requires a higher minimum balance to earn interest or avoid monthly fees

11. Secure places from the US Treasury • Treasury Bills • Short-term securities (few days to 1 year) • Sold at a discount from face value • Treasury Notes • Interest every 6 months, Maturities in 2, 3, 5, 7, & 10 years • Treasury Bonds • Interest every 6 months, Mature in 30 years • I Savings Bonds & EE/E Savings Bonds • Earn interest protected / based on interest & market

12. Precious Metals & Stones • Silver: 32.02 (March 20, 2012) • $31.63 per ounce (12/8/11) • 1 year +2.88 or 9.68% • Gold: $1,648.34 (March 20, 2012) • $1,711.20 per ounce (12/8/11) • 1 year +336.50 or 23.89%

13. Net Worth Example – Page 188

14. Shop for a bank • Alone or with partner, look up information about banks • Be sure to look at adult/college student accounts • Net Worth & answer the questions • Note: If do not want to show my your Net Worth - Do NOT write down the information • You DO have to answer the questions

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