1. Real Skills  Real Experiences  Real Life www.bestprep.org The NCCEE and the Financial Planning Associations of Charlotte and Raleigh gratefully acknowledge BestPrep and The Foundation for Financial Planning for making the Financial Matters initiative available in North Carolina.

2. Budgeting Matters Real Skills  Real Experiences  Real Life www.bestprep.org

3. Why Budget?  See where your money comes from  See where your money is going  Plan for long term goals  Save for unexpected emergencies  Have more spending money!

4. Needs versus Wants  How do you feel about money?  Are you spending more than you have?  Is what you’re buying a need or a want? “Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.” -Benjamin Franklin

5. How much do Americans save?

6. How much do YOU save?

7. What’s an emergency fund?  Money saved for unexpected emergencies  Ideally, the amount should be 6-12 months of expenses

8. Budgeting Expenses  What expenses are included in a monthly budget? “I have enough money to last me the rest of my life...unless I buy something.” – Jackie Mason, comedian

9. TRUE OR FALSE? Only 14 out of 50 states in the U.S. require students to take a financial course to graduate. TRUE Most high schools offer personal finance as an elective course.

10. How much do you cost???  It costs $291,570 to raise a child in the United States to age 17. Source: U.S. Dept of Agriculture.  This doesn’t even take into account the costs of college education!

11. TRUE OR FALSE? 54% of American homes are paid for. FALSE-only 10% are Source: WikiAnswers

12. What are your short term and long term goals? SHORT-TERM GOALS  Buy a cell phone  Save for vacation  Buy new clothing  iPod LONG-TERM GOALS  Purchase a car  Save $10 each week  Pay for college

13. What Can You Do NOW? Be a smart spender  Shop around for the best deals  Don’t buy on impulse  Use coupons or wait for sales se the good student discount  Substitute- choose off brands  Negotiate on large items  Talk to other who have experience

14. Debit vs. Credit Cards What’s the difference? Debit cards deduct money from your bank account Credit cards loan you money which you have to pay back. After 30 days, interest accrues.

15. TRUE OR FALSE? It is always bad to use credit cards. FALSE

16. Credit Cards  How do I choose a credit card? Low interest rate No annual fee No start up fee Incentive programs  www.bankrate.org helps you choose a card that is right for you.

17. Credit Cards  How can you use credit cards wisely? Pay entire amount off each month ○ This builds your credit score Use for emergencies ○ Car repairs ○ Medical expenses

18. Let’s review  WHAT to spend? Budgeting allows you to decide how much money can be spent on what items.  WHY to spend? Determining needs versus wants helps decide why you are buying an item.  HOW to spend? Deciding if you can pay for an item now or if you need to put it on credit.

19. Helpful Web Sites  www.fool.com/teens  www.fool.com/teens discussion boards and detailed information  www.moneyopolis.org  www.moneyopolis.org interactive game simulations  www.creditunionsrock.org  www.creditunionsrock.org wide range of content  www.themint.org  www.themint.org mock situations of budgeting, saving, investing, etc.

20. Thank You! ©2007 BestPrep NCCEE gratefully acknowledges the Foundation for Financial Planning for providing financial support to fund this project. We also are indebted to the BestPrep for sharing materials with NCCEE and to the Financial Planning Associations of Raleigh and Charlotte for their help in recruiting volunteers for this program.