1. Training Purpose To help you plan how to get, manage and use your money now and in the future so you can have the life you envision for yourself. Visual Aid 1.1

2. Training Goal To give you keys to your financial future so you can be financially independent and financially capable. Visual Aid 1.2

3. Session Titles and Dates Module 1: Asset Building: Unlocking the door to long- term benefits Module 2: Good Credit: Your score in the game of life Module 3: Money Management: Cashing in on financial success Module 4: Education and Training: The power of knowledge for work and college Module 5: Housing: Reality in realty Module 6: Transportation: Enjoy the ride Module 7: Saving and Investing: Making the change by keeping it Visual Aid 1.3

4. Key Elements of the Workbook Quotes Key Questions Key Activity Key Concept Keys to Your Financial Future Step # – They are numbered by module and in the order they come within a module. For example, “Keys to Your Financial Future Step 2.2”would be the second “assignment” in module 2. Visual Aid 1.4

5. Tips for Taking the Pre-Training Assessment Answer from your gut. Don’t over think the questions. If you don’t know how to answer, just do the best you can. If you have any questions, just let me know. You will have about 10 minutes to complete this. Please be sure to write your name and today’s date on the top of the form. Visual Aid 1.5

6. Visioning Questions – What is most important to you? – What do you dream about for yourself? – What do you want to be doing with your time? – What career do you envision for yourself? – Do you plan to run your own business? – Do you hope to have a partner/spouse? – Do you hope to have children? – Do you want to own a home? – Or do you want to travel the world? – What legacy do you want to leave? Visual Aid 1.6

7. SMART Goal Framework Specific—this means your goals are focused, not general. Measurable—this means that you can tell whether your goal has been achieved; there is some way to measure your results. Achievable—realistic; goals should be challenging and cause you to reach, but they should be attainable. Results-oriented—written about the end you are trying to get to Timebound—there is a specific time by which the goal will be reached; they are not open-ended Visual Aid 1.7

8. Visual Aid 1.8 SMARTNot SMART I will save more money. Not specific Not measurable Not achievable Not results-oriented Not timebound I will be healthier. Not specific Not measurable Not achievable Not results-oriented Not timebound I will complete my LPN (Licensed Practical Nurse) certification by January of next year. Not specific Not measurable Not achievable Not results-oriented Not timebound I will buy a car. Not specific Not measurable Not achievable Not results-oriented Not timebound I will save $1000 in my match savings account during the next 12 months for a car. Not specific Not measurable Not achievable Not results-oriented Not timebound I will research three apartment options by the end of this week. Not specific Not measurable Not achievable Not results-oriented Not timebound Identify the SMART Goal

9. Turning SMART Goals into Savings Targets Example Visual Aid 1.9

10. Revising Goals Prioritize your goals: some goals may have hard deadlines; some are most important to your reaching your vision. Focus on those goal first. Find other resources: before saving your own money, see if there are other resources for the goal. Change the time frame: with goals for which there is no hard deadline, consider changing the timeframe. This will mean you will reach these goals a little later. You will also have to save for a longer period of time, but you will save less each month or week. Visual Aid 1.10

11. LaTonya’s Revised Goal Instead of saving $1,000 for 6 months, LaTonya is going to save $1,000 over 12 months. $1,000/12 months = $85/month $85/4 week = $21.25/week Visual Aid 1.11

12. Internal versus External Obstacles Internal obstacles—not caused by others; created by you or your reaction to an outside event. External obstacles—caused by something or someone else Visual Aid 1.12

13. Contingency Planning Thinking what could go wrong before it does go wrong can help you be better prepared— anticipating obstacles and having plans to handle those obstacles is called contingency planning. Contingency planning is a critical life skill and key to becoming financially capable. Visual Aid 1.13

14. Obstacle Course Roles Goal seeker will: – Be working/walking toward this goal (the one hanging at the end of the path). – Encounter obstacles along the way. – Identify strategies to get rid of each obstacle. Everyone else can provide assistance—offer other ideas or strategies. Obstacles: – As the goal seeker approaches you, step into path and read your obstacle. – The goal seeker will then have to figure out how to get rid of you as an obstacle. – Once you think they have come up with a realistic strategy or strategies to get around you step out of the path. – Be discerning. In other words, if you think the strategy won’t work, don’t step out of the way. All other participants: – Provide ideas to the goal seeker in getting rid of obstacles. Visual Aid 1.14

15. Where is the Asset? Visual Aid 1.15 PhysicalFinancialProductive Not an Asset computer credit card social work degree inventory in a business good credit history lunch at a restaurant an apartment on-the-job experience savings account cell phone a house cable television health insurance

16. What is Social Capital? “Social relations that have productive benefits.” One goal of the Opportunity Passport™ is to ensure you have supportive relationships in your community that can help you reach your goals. This is another definition of social capital. Having social capital means you are connected to other people. Sometimes those connections are strong. Visual Aid 1.16

17. How Social Capital Builds Assets – Social capital can help connect you to other assets. – Information and support you need to find a safe and affordable place to live, access to grants and scholarships for post-secondary education and training or a referral to a good auto mechanic to help you take care of your car. – And your social capital can help you build more social capital. Visual Aid 1.17

18. How Assets Build Social Capital – Having assets or building assets can help you develop new relationships. Going to a training program or college will open up a whole new set of people—other students, teachers/professors, advisors—as part of your social capital. Owning a business can help you develop new relationships—your customers. Living in a safe and affordable apartment can help you expand your social network through your neighborhood. And reliable transportation can help you stay connected to your existing social capital. Visual Aid 1.18

19. Balanced Asset Building Portfolio Visual Aid 1.19 Financial Assets Social Capital Productive Assets Physical Assets Portfolio = a grouping of assets. Your asset building portfolio is basically the assets you have and are working towards.

20. Assets, Liability and Equity Visual Aid 1.20 Asset: something that you own that has value Liability: something you owe. When people buy assets they often borrow money to afford the asset. This creates debt. Debt is money you owe to another person, a business or the government. Debt is a liability. The difference between the value of an asset and the liability owed on that asset is the equity of the asset. $5,000 (Asset value) - $4,500 (Liability or loan amount) = $500 (equity) Equity: the part of the asset’s value that would be left after a loan is paid in full.

21. Preventing Negative Equity Understand whether value is likely to increase or decrease Avoid borrowing the FULL value of the asset Understand what you CAN afford Consider less than you can afford—60 to 80% Visual Aid 1.21

22. 1. What are the costs of saving? Visual Aid 1.22

23. 2. What are the benefits of saving? Visual Aid 1.23

24. 3. How can you find money to save in your budget? Visual Aid 1.24

25. 4. Where can you put the money you save? Visual Aid 1.25

26. Savings Options Risks and Rewards Jar, shoebox or under the mattress Family member or friend Account at a federal insured bank or credit union RisksRewardsRisksRewardsRisksRewards Visual Aid 1.26

27. Mara’s Emergency Budget Airplane ticket (roundtrip bereavement fare) = $250 New outfits and shoes = $75 Flowers for her grandmother’s funeral = $75 Other expenses ($25/day for 4 days) = $100 Visual Aid 1.27

28. Emergency Savings $750 balance No additional costs. Must save to replace the $500 she is withdrawing to cover the emergency Visual Aid 1.28

29. Payday loan $15 per $100 borrowed for two weeks $500 + $75 fee for 2 weeks However, since she has missed work, she does not have income to cover the loan. It takes her 3 months to repay the loan, so she owes: $500 (amount borrowed) + $475 (total fees) Visual Aid 1.29

30. Credit Card $1,000 credit limit 20% APR Paying a 5% minimum on the balance each month, she will have paid $205 in interest over 2 years and still owe $80. Visual Aid 1.30