1. Welcome to our Financial Literacy Workshop Presented by: Maribel Castaneda Kimberly Diaz Brandon Galeano Lucia Machorro Diego Martinez Marbella Pleitez And Stephanie Tobar

2. Budgeting Presented by: Maribel Castaneda Kimberly Diaz Brandon Galeano Lucia Machorro Diego Martinez Marbella Pleitez And Stephanie Tobar

3. What is Budgeting? Way of planning and keeping track of your money. Budgeting can help you: - See how much money you expect to have for the month - And plan for how you can spend it

4. Why Should I Budget? Budgeting can help you: Get back in control of your money Prepare for financial emergencies Get out of or prevent debt Save money for your future: Retirement, college etc… Reduce stress

5. Having Needs  Needs are things you have to have  4 Essentials to Survival: Shelter, Food, Water, Clothes etc… All of which are considered needs.

6. Having Wants/Desires  Wants are things that you WOULD LIKE to have  Wants include: Designer clothes Expensive Cars Etc…

7. Quick Tips to Keep in Mind Spend less than you earn! Stay within your budget, pay yourself first, and you will always be in control of your Money

8. Activity time ! http://www.moneyandstuff.info/budgetworksheet.htm

9. Credit Presented by: Maribel Castaneda Kimberly Diaz Brandon Galeano Lucia Machorro Diego Martinez Marbella Pleitez And Stephanie Tobar

10. What is Credit? The ability of a customer to obtain goods or services before payment, based on the trust that payment will be paid back in the future. Someones “Borrowing Power” APR: Annual Percentage Rate; the interest someone can pay based on their initial borrowed amount.

11. What is APR?  Stands for: Annual Percentage Rate  It’s a percent that tells you how much more money you will pay/gain in addition to the original amount.  If you invest: Your APR will determine the amount of extra money you receive  If you borrowed money: Your APR will determine how much MORE money you wil pay

12. Credit Scores  Represented by a numerical score that can range from: 0-750 or up  Lets banks know how reliable you are in paying back money they lend you.

13. The Effects of Good and Bad Credit Scores Good CreditBad Credit -Better Rates and less fees/interest -Better chance for credit card and loan approval -More negotiating power -Get approved for higher limits -Higher interest rates -Can not shop around for deals. -Approved for a small, if any, amount

14. Credit Cards Plastic cards issued by banks Used instead of cash The main disadvantage to credit card usage is it’s cost to you in interest and fees. Repay your credit card bill in full when it comes due each month to avoid fees.

15. Pop Quiz http://www.investopedia.com/university/beginner/beginner5.asp 1)Credit is someone’s “_________ Power” 2) If you have good credit you have higher rates and fees? True or False? Why?

16. Activity time ! Our scenario…

17. Debt Presented by: Maribel Castaneda Kimberly Diaz Brandon Galeano Lucia Machorro Diego Martinez Marbella Pleitez And Stephanie Tobar

18. What is Debt?  Something, typically money, that is owed or due to a person, bank, or other source.  Money or item borrowed should be payed back or returned or else it will become your liability or in other words part of your debt.

19. Good Debt VS. Bad Debt -Accquiring debt on items that you need but can not afford to pay for. Ex. House, College tuition -Acquiring Debt on items that you do not need and can neither pay for Ex: Credit card debt can be considered bad debt.

20. Pop Quiz #2 http://www.investopedia.com/university/beginner/beginner5.asp 1.) Which debts should you pay off first? a) Debts to which you owe the most money to b) Debts with the highest interest rates c) All debts in any order. Because in the end you still pay back the same amount you borrowed 2.) True or false. Debt can ruin a persons credit score? 3.) What debts are considered Good debt?

21. Investing Presented by: Maribel Castaneda Kimberly Diaz Brandon Galeano Lucia Machorro Diego Martinez Marbella Pleitez And Stephanie Tobar

22. 3 Things to invest In  Definition: to put money to use, in something offering potential profitable returns like interest, income, or appreciation in value.  Stocks  Bonds  Mutual Funds  Savings account

23. Stocks  Stock is a share in the ownership of a company and receive profits (dividend)  Stocks provide higher returns because they are riskier  Better for long distance investing ✖ Stocks can change in value at anytime in any amount of time. ✖ When you buy a stock you aren’t guearanteed anything

24. Bonds  Bonds: When you purchase a bond, you are lending out your money to a company or government  The issuer of a bond must pay the investor something extra for the privilege of using his or her money.  INTEREST ✖ If interest rates rise, bond prices will fall ✖ Invest in bonds when your time is limited or short.

25. Mutual Funds  Mutual funds are companies that bring together a group of people and invests their money  This money goes to a professional who decided how to invest your money in the most effiecient way.

26. Saving Accounts  An account usually kept with a bank that lets you set aside money for a certain period of time  Each month you can add an X amount of money into your account  Banks will give you an interest rate that allows your money to grow in value overtime

27. Activity time ! http://www.investopedia.com/university/beginner/beginner5.asp