1. Your Spending, Your Savings, Your Future:
A Beginner’s Guide to Financial Readiness 1
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2. Welcome
Introductions 2

3. Objectives Tracking Your Money Flow Managing Debt Effectively
Starting a Savings Habit
Thinking About Tomorrow 3

4. Tracking Your Money Flow
Create a Spending Plan
Identify income
List expenses
Compare income and expenses 4

5. Tracking Your Money Flow
Plug Spending Leaks
An example of a spending leak: You buy coffee every morning at $3.50 a day. That is $17.50 a typical work week (5 days x $3.50), $70 a month (20 working days x $3.50), and $910 a year (52 weeks x $17.50)! 5

6. Managing Debt Effectively
How Much Debt Is Too Much?
Use Credit Cards Wisely
Shop around for the lowest rate
Use only one or two cards
Pay bills as soon as they arrive
Always pay more than the minimum balance due 6

7. Starting a Savings Habit
Start Saving Now
Using bank or credit union accounts
Paying yourself first
Saving for emergencies
Goal: Set aside enough to cover three months of basic living expenses. 7

8. Starting a Savings Habit
Two-for-One Savings Plan
Roth IRA
Can withdraw contributions at any time (but not earnings)
Saving vs. Investing
Long-Term Savings
Retirement
Children’s education 8

9. Thinking About Tomorrow
Setting Goals
Short-term goals
Medium-term goals
Long-term goals
SMART:
Specific, Measureable, Achievable, Realistic, Time-bound 9

10. Thinking About Tomorrow
Make It Happen
Set your priorities
Create a spending plan
Make changes 10

11. Review Create a spending plan Plug spending leaks Use credit wisely
Pay yourself first
Focus on financial goals
Dream about your future 11