1. National Association of Black Accountants, Inc. Savings M ney $ense

2. Savings

3. What is saving? Money set aside for short term goals

4. Saving and Investing: The Difference Saving is to put aside or reserve Investing is earning a return on your money

5. Saving Goals Pay yourself first Pay yourself first Resolve to spend less Resolve to spend less Create an emergency fund Create an emergency fund Make saving a priority Make saving a priority

6. Saving Your Money Any good financial plan includes two types of savings plans: A set-aside account which serves two purposes: A set-aside account which serves two purposes: 1. Providing a safe place to set the money aside that you know you will need for future payments. 2. It makes that money work for you by earning interest. A “nest egg” account: savings plan for the purpose of accumulating the money needed to achieve your financial goals A “nest egg” account: savings plan for the purpose of accumulating the money needed to achieve your financial goals Provides a certain degree of comfort that money will be available if some unexpected expense should occur in the future. Provides a certain degree of comfort that money will be available if some unexpected expense should occur in the future.

7. Saving Strategies Start small Start small Contribute to your retirement plan Contribute to your retirement plan Save through payroll deduction plans Save through payroll deduction plans Set up an automatic investment plan Set up an automatic investment plan Round up your mortgage Round up your mortgage

8. Saving Strategies Bank your raises Bank your raises Keep paying off a loan Keep paying off a loan Pay off your credit cards Pay off your credit cards Keep track of where the money goes Keep track of where the money goes

9. Saving for a Purpose Retirement Retirement Education Education Home Ownership Home Ownership Supplemental Income Supplemental Income The “Rainy Day” Fund The “Rainy Day” Fund

10. Saving Options Passbook Savings Account Passbook Savings Account Certificate of Deposit and Money Market Accounts Certificate of Deposit and Money Market Accounts Mutual Funds and 401(k) Plans Mutual Funds and 401(k) Plans Holiday and Vacation Clubs Holiday and Vacation Clubs

11. Any successful financial plan includes a regular savings plan, no matter how small. Any successful financial plan includes a regular savings plan, no matter how small. Getting into the habit of saving is just as important as how much you save. Getting into the habit of saving is just as important as how much you save. After your financial situation is more stable, you will be in the habit of saving. After your financial situation is more stable, you will be in the habit of saving. Remember, if you can just find a way to save just $20 per week, every week for a year, you will have saved $1,040 after one year! Remember, if you can just find a way to save just $20 per week, every week for a year, you will have saved $1,040 after one year! After five years you will have saved $5,200! After five years you will have saved $5,200! SAVING YOUR MONEY

12. The amount saved is not as important as saving on a regular basis! The amount saved is not as important as saving on a regular basis! The more time you have to save, the more savings you will have at the end of the time period. The more time you have to save, the more savings you will have at the end of the time period. The more income you choose to save, the more savings you will have at the end of the time period. The more income you choose to save, the more savings you will have at the end of the time period. The higher the interest rate the more savings you will have at the end of the time period. The higher the interest rate the more savings you will have at the end of the time period. Remember

13. Activity Getting Started with Your Savings Habit (See handout)

14. Final Point

15. Financial literacy isn’t just a matter of knowing what you have and knowing your options. It is a matter of planning for life’s milestones.

16. Thank You! National Association of Black Accountants, Inc. M ney $ense For more information visit www.nabainc.org

17. 360 Degrees of Financial Literacy 360 Degrees of Financial Literacy is a national effort of the CPA profession to improve the financial understanding of Americans. It provides a comprehensive approach to financial education, focusing on the information Americans need at every life stage, from childhood to retirement. CPAs volunteer their time and expertise to educate members of their communities about financial issues. 360 Degrees of Financial Literacy is a national effort of the CPA profession to improve the financial understanding of Americans. It provides a comprehensive approach to financial education, focusing on the information Americans need at every life stage, from childhood to retirement. CPAs volunteer their time and expertise to educate members of their communities about financial issues. Visit www.360financialliteracy.org for tools to help you make sound financial decisions. Visit www.360financialliteracy.org for tools to help you make sound financial decisions.www.360financialliteracy.org