Presentation on theme: "An AmeriCorps Members Guide to Financial Survival."— Presentation transcript:
An AmeriCorps Members Guide to Financial Survival
Analyze your spending habits so you can improve your financial decisions. Create a budget for your $12,000 stipend ($1,000 a month). Purpose
Each person should receive 10 $1 bills. If you answer yes to a question, keep your money. If you answer no, then you must give up a dollar. Budget Busters!
1)How much money do you think the person will end up paying in total? 2)How long will take to pay off the debt? 3)Discuss with your group whether or not you think the person should use credit in this situation. How can I use credit wisely?
Sarah is finishing up her studies at the university, studying industrial design. She thinks that she needs a better computer to handle her senior project. A computer that will be ideal for her design career costs $1,000. She graduates next month, and her parents have told her that they will give her $1,000 for graduation then. To get the computer now, she will have to put the total on a credit card with 18% interest, but she is sure that she can pay the bill next month using the graduation money. 1) How much will she end up paying? 2) How long will it take her to pay her debt? 3) Do you think she should make this purchase? Why or why not?
Stephen is finishing up his senior year as a management student. At least he thinks hes finishing. Right before he starts the final draft for his senior project, his computer crashes. He wants the $1,000 computer that can handle complex design functions. He would have to put the total on a credit card with 18% interest. He will earn enough money in his summer internship that he can pay $100 per month toward his credit card bill. 1) How much will he end up paying? 2) How long will it take him to pay his debt? 3) Do you think he should make this purchase? Why or why not?
Sandy is finishing up her college career, and she wants to celebrate with her friends who are going to Cancun. She doesnt have any money, but she really wants to go. The trip costs $1,000, and she could put the total on her credit card with 18% interest. Sandy has a lot of hobbies (outdoor sports, shopping, eating out with her friends), so she doesnt have a lot of money to spare. However, she is certain that she can make the $20 monthly minimum payment on the credit card. 1 ) How much will she end up paying? 2) How long will it take her to pay her debt? 3) Do you think she should make this purchase? Why or why not?
1)Staying financially fit requires a plana budget. 2)Compound interest can be your best friend or your worst enemy. 3)For information and help investing, you can go to the bank where you already have a checking or savings account. 4)Staying within your budget requires specific, measurable behaviors. Four things you need to know about your finances: