1. PERSONAL FINANCE
MONEY MANAGEMENT

2. Savings Money not spent so as to use it at a later date
Short term of 0-5 year dreams or emergencies
Small denominations typically $1000-$25,000
Available for emergency
High degree of liquidity

3. TYPES OF SAVINGS PASSBOOK ACCOUNTS MONEY-MARKET ACCOUNTS TIME DEPOSITS
Savings account in which deposits and withdrawals are recorded by the bank in a depositor’s passbook
MONEY-MARKET ACCOUNTS
Pass higher rate of return based on rates in the money markets (trading short-term commodities)
TIME DEPOSITS
Savings with restriction on the term or period of time before withdrawals can be made (ex. CD)

4. Investment Set aside money for when income decreases
Long term – built over 40 years of working
Large denominations ($2-5 million)
Non-liquid account
Designed for retirement

5. TYPES OF INVESTMENTS BONDS STOCKS MUTUAL FUNDS
Loan of money to a government/corporate entity for a defined period of time and a fixed rate of interest
STOCKS
Security that signifies ownership in a corporation with claims on assets and earnings
MUTUAL FUNDS
Pool of funds collected from many investors operated by money managers

6. PORTFOLIO Collection of financial assets PROPERTY SAVINGS INVESTMENTS
DEBTS
INSURANCE
PHILANTHROPY

7. Other ITEMS found IN A Portfolio
Checking account
Savings account
Money Market Account
Certificate of Deposit
INSURANCE
Health
Life
Home
Auto
DEBTS
College
Car
House
REIT
Real Estate
Stocks
Bonds
SEPP
Precious Metals
Mutual Funds
Pensions
Public Retirement Systems

8. What type of account do you have?
What is debit?
draws money directly from your checking account when you make the purchase.
Keep running balance in you account
Must use a PIN
No extra purchasing power
What is credit?
allows you to borrow money in small amounts at local merchants.
Charges interest if not paid at the end of the month
Extra money available
Universally accepted

9. debts Something, typically money, that is owed or due
Personal loans like credit cards and car loans are typically thought of as bad debts
Some people think that student loans and mortgages are worth risking debt because they become an investment with future rewards
Are there GOOD and BAD debts ?

10. insurance
Guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium (usually paid monthly)
Property with guaranteed replacement cost
Auto with plenty of liability (may not need collision)
Health may have many options to consider
Disability that pays at least 65% of wages
Long-term Care for in-home or facility nursing services
Identity Theft with restoration services
Term Life to cover all debts and death expenses
Generally up to times yearly salary

11. PHILANTHROPY
The desire to promote the welfare of others, expressed especially by the generous donation of money to good causes
Research where all your money goes
Some charitable organizations are better than others at getting funds to those in need, and must provide their records upon request
Once you begin to give prepare to get more requests
Wisely learn to say no to the groups you do not have a passion for
Give generously
For many people this can be 10% of their monthly budget
Be unnoticed
Your philanthropy is for those in need, not your ego

12. Plan
If you follow these simple principles in the following areas of most budgetary concern your financial health should be OK.
Spend no more (including payments, insurance, and maintenance) than these percentages of your income on …
10% Automobiles
25% Housing
Spend at least this percent of your income (from the first paycheck to your last) on:
10-15% Retirement
10% Giving (optional for those so inclined)