1. There’s a lot to learn about money! Presented by the San Francisco Federal Reserve Bank in Collaboration with Operation Hope Why is Money Important?

2. Key Concepts: Budgeting Rate of Return Risk There’s a lot to learn about money!

3. What Is A Budget? Expense Income Budget Game A plan for spending money

4. Budget Game Debrief What do you notice about the data? Why do you suppose there is a difference? Why do people create budgets? A Budget Gives You Control

5. What would you do with the money left over at the end of each month? Is money going to manage you? Are you going to manage your money? Or…

6. Where can I save or invest my money? Types of Accounts: Saving and Investing Savings Accounts Certificates of Deposits (CD) Stocks and Bonds Real Estate

7. Key Factor #1 Saving & Investing Rate of return The amount of money you earn on your investment Amount Rate of Interest Time

8. What is your return if you invested $500 at 3% for 1 year? Rate of Return 3%9%15%21% $1,000 $15 24 The Rule of 72: 72 divided by the interest rate 5 38 How long would it take to double your money?

9. Key Factor #2 What is the Risk? How much would I have to pay you to…..

10. What is your return if you invested $500 at 3% for 1 year? Rate of Return 3%9%15%21% $1,000 $15 24 5 38

11. 1. Spend Less Than You Make 2. Pay Yourself First Two Rules to Live By

12. What Happens When You Violate Rule #1? Borrow Money Credit Card Balance of $5,000 at 17% Interest Minimum Payment 81 years to pay off the balance You Spend More Than You Make

13. What Happens When You Honor Rule #1? Honor Rule #2: Pay Yourself First You Spend Less Than You Make

14. How Much Money Could You Earn If… Pay Yourself First At Age 65 5.00%Rate of Return $420Save $15 everyday for one month $15Coffee/hot chocolate & snacks Saved $15/day until you were 65? $1,000,000

15. Why is Managing Your Money Important? 1.Spend Less Than You Earn 2.Pay Yourself First Budgeting Rate of Return Risk

16. Got Questions? www.frbsf.org www.FederalReserveEducation.org