1. A Character and Leadership Development Program Learning Objectives Use Dave’s 7 Baby Steps Describe reasons for saving and investing Explain Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Describe various savings and investments alternatives You classify your investment choices as income investment or growth investment Income investment: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Growth investment: A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. You balance the diversity of your portfolio In finance, diversification means reducing non- systematic risk by investing in a variety of assetsriskinvestingassets http://www.da veramsey.co m/specials/w elcome?ectid =gaw.davera msey- brand1&gclid =CKKYzMPB k8ICFWIA7A odsH0AaQ Dave Ramsey’s Investment Philosophy Graded Exercise #1

2. A Character and Leadership Development Program http://www.daveramsey.com/special s/welcome?ectid=gaw.daveramsey- brand1&gclid=CKKYzMPBk8ICFWI A7AodsH0AaQ Learning Objectives Use Dave’s Investing Calculator Describe reasons for saving and investing Describe how time, money, and rate of interest relate to meeting specific financial goals Explain Describe effect of investing saving from giving up soda Explain Describe basic investment principles Describe various savings and investments alternatives You classify your investment choices as income investment or growth investment Income investment: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Growth investment: A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. You balance the diversity of your portfolio In finance, diversification means reducing non- systematic risk by investing in a variety of assetsriskinvestingassets Dave Ramsey’s Investment Philosophy Graded Exercise #1

3. A Character and Leadership Development Program Learning Objectives Use Dave’s 7 Baby Steps Describe reasons for saving and investing Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Explain Describe various savings and investments alternatives You classify your investment choices as income investment or growth investment Income investment: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Growth investment: A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. You balance the diversity of your portfolio In finance, diversification means reducing non- systematic risk by investing in a variety of assetsriskinvestingassets http://www.daver amsey.com/spe cials/welcome?e ctid=gaw.davera msey- brand1&gclid=C KKYzMPBk8ICF WIA7AodsH0Aa Q Dave Ramsey’s Investment Philosophy Graded Exercise #1

4. A Character and Leadership Development Program http://www.daveramsey.com/special s/welcome?ectid=gaw.daveramsey- brand1&gclid=CKKYzMPBk8ICFWI A7AodsH0AaQ Learning Objectives Use Dave’s Advice Describe reasons for saving and investing Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Describe various savings and investments alternatives Explain You classify your investment choices as income investment or growth investment Income investment: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Growth investment: A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. You balance the diversity of your portfolio In finance, diversification means reducing non- systematic risk by investing in a variety of assetsriskinvestingassets Dave Ramsey’s Investment Philosophy Graded Exercise #1

5. A Character and Leadership Development Program My Personal Budget PercentMy realistic take home monthly income $1,500 Monthly Budget Charity10%$150 Savings/ Investments 10%$150 Housing25%$375 Utilities5%$75 Food Transporta- tion 10%$150 Clothing Medical/ Health 7%$105 Personal Recreation Debts - New Car Insurance Total Forecast Personal Savings & Investments CriteriaMy Investment Plan 1. 2. 3. 4. 5. 6. 7. Personal Investment Plan Graded Exercise #2

6. A Character and Leadership Development Program CriteriaMy Investment Plan 1. You select at least five products for your investment plan 1. 2. 3. 4. 5. 2. You outline your investment strategy (amount to invest, how often, and when to invest) Give one example: $____ = Starting balance %___ = Rate of return $____ = Monthly contribution 3-years = Years plan to contribute 3. You predict the potential value of your investments three years from now Use above example: $____ How much investment will be worth 4. You classify for investment choices as income investment or growth investment See criteria #1, it clearly classifies my investment choices as: Income investment and/or Growth investment 5. You balance the diversity of your investments See criteria #1, it clearly demonstrates that I balance the diversity of my investments 6. Your plan is realistic for your near-term and intermediate-term goals Explain near-term goal: Explain intermediate-term goal: 7. You explain how your investing plan aligns with your intermediate-term and long-term financial goals Explain intermediate-term (3-12 months) goal: Explain long-term (1-year and beyond) goal: Personal Investment Plan Graded Exercise #2