2. I am Responsible For My Financial Future Created by: Maribel Burgos Section:12345 Instructor: Natalia Fofanova University of Houston

3. Table of Contents: Responsibility of My Financial Future What is Financial Responsibility The Fundamentals of Financial Responsibility How to be financially responsible Personal Financial Responsibilities

4. Introduction My name is Maribel Burgos, and I am a Human Development and Family Studies (HDFS) major. I hope you can reach your financial goals and have financial freedom with the aid of this presentation.

5. What is Financial Responsibility? The definition of financial responsibility is: 1.The process of managing money and other assets in a manner that is considered productive and in the best interests of the individual or family. 2.To live within your means and spend less than what you make. Click image to play

6. The Fundamentals of Financial Responsibility Credit Cards and Debt – Having a credit card to make ends meat is not a good reason to have a credit card. – Responsible use of a credit means paying the credit card in full each month. Acting in Your Own Best Interest – Know the difference between a luxury and necessities Paying Yourself First – Spending every dime you earn is irresponsible – A good goal to save is 10% each paycheck

7. The Fundamentals of Financial Responsibility Emergency Fund – Be prepared for the unexpected. – You should be able to support yourself for the next 6 months without an income Don’t Worry About the Neighbors – Financial responsibility means doing what you have to do to take care of you and your family. – The neighbors aren’t paying your bills, so don’t let them dictate your spending habits. Budgeting – Know where your money is going

8. The Fundamentals of Financial Responsibility Very Personal Definition – Purchase items you know you are able to afford. Not everyone can live like the rich and famous. Arriving at “Responsible” – Financial responsibility means living within your means, regardless of the level of those means. When you have money, be smart with it! Don’t go money crazy, just because you received a paycheck

9. How to be Financially Responsible Take charge of your money Live within your means even if that means changing the way you live Pay yourself first Save 3 to 6 months of income for that inevitable rainy day Start and maintain an automatic payroll deduction plan for long-term savings

10. How to be Financially Responsible Following your budget is key and yet may be the hardest part Write a household budget and follow it Know what your actual expenses are Track your expenses Particularly expensive credit card debt Be careful with debt

11. How to be Financially Responsible Pay off credit card debt as quickly as possible A good score is around 750 Know and manage your FICO (credit) score Refer to www.freecreditreport.com www.freecreditreport.com Take advantage of free credit reports every year

12. TAKE WHAT UNCLE SAM GIVES YOU Tax Deferrals +401(k) +403(b) +Flexible Spending Accounts Roth IRAs Slide taken from http://www2.tech.purdue.edu/ols/courses/ols364/FINANCIALPLANNING.ppt http://www2.tech.purdue.edu/ols/courses/ols364/FINANCIALPLANNING.ppt This slide makes a great statement to take advantage of Tax Deferrals and Roth IRAs

13. Personal Financial Responsibilities A friend told me that opening up store credit cards are the worse cards to open. – One of my goals would be to close the store credit card that I have, and never open one up again Find a secure job – Post graduation, my goal would be to find a job that will pay the bills.

14. Personal Financial Responsibilities Being a college student equals accumulating debt. – Maybe it’s the high tuition prices or the expensive books, but student=broke. – Another goal of mine would be to pay off debt. Start SAVING! – My ultimate goal would be to save $10 dollars a week. Leave my savings alone – In order to secure my financial future, I need to break my habit of touching my savings.

15. Lifestyles of the Rich and Famous

16. Suze Orman Personally acclaimed financial expert. I like to follow the guidelines of Suze, in order to be financially responsible in the future. Author of The Money Book for the Young, Fabulous & Broke Check out her show Can I Afford It? Refer to video link Suze Orman Suze Orman – Can I Afford It?

17. References http://www.investopedia.com/articles/pf/09/financial-responsibility.asp http://www.investopedia.com/articles/pf/09/financial-responsibility.asp?viewed=1 http://media.cnbc.com/i/CNBC/Sections/CNBC_TV/CNBC_US/Shows/_Documentaries _Specials/IAM_CNBC/CNBC_ANCHORS/S_Orman/orman_Bio.jpg http://media.cnbc.com/i/CNBC/Sections/CNBC_TV/CNBC_US/Shows/_Documentaries _Specials/IAM_CNBC/CNBC_ANCHORS/S_Orman/orman_Bio.jpg www.pastemagazine.com/.../money%20large.jpg www.blogs.nyu.edu/blogs/mj11/businessofart/money.jpg www.economicpopulist.org/.../money_tree02.jpg http://admin.moguling.com/Upload/www.oprahsschool.com/oprah%20winfrey.jpg http://i.dailymail.co.uk/i/pix/2006/09/pdiddy080906_228x297.jpg http://img.thisismoney.co.uk/i/pix/2007/12/ParisDiamonds_203x150.jpg http://www.cosmoloan.com/wp-content/uploads/2009/08/athlete-cars.jpg http://media.herald-dispatch.com/blog/tuned/uploaded_images/John-Rich-in-fur- coat-737520.jpg http://media.herald-dispatch.com/blog/tuned/uploaded_images/John-Rich-in-fur- coat-737520.jpg http://www.babble.com/CS/blogs/famecrawler/beyonce-marriage-confirmed.jpg http://www.hotelsoftherichandfamous.com/images/layout/burf-al-arab-rolls.jpg http://twistedsifter.com/wp-content/uploads/2009/09/lifestyle-of-the-rich-and- famous.jpg http://twistedsifter.com/wp-content/uploads/2009/09/lifestyle-of-the-rich-and- famous.jpg http://www2.tech.purdue.edu/ols/courses/ols364/FINANCIALPLANNING.ppt http://www.youtube.com/watch?v=NkVecOtB9Iw

18. “Take a close look at your financial situation, evaluate your earning and spending habits, and make the necessary adjustments to put yourself on responsible financial footing.” – Lisa Smith I hope this presentation gave you an insight on how to be responsible for your financial future and how I plan to be responsible for mine.