Financial Literacy CFA Society of Buffalo Introduction 1 Guess - - PowerPoint PPT Presentation

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Financial Literacy CFA Society of Buffalo Introduction 1 Guess - - PowerPoint PPT Presentation

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Financial Literacy CFA Society of Buffalo Introduction 1 Guess ss their net worth: $320 Million Guess ss their net worth: $440 Million Guess ss their net worth: $3.2 Billion https://www.youtube.com/watch?v=ib-0_N9G0Lo Guess ss their

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SLIDE 1 1

Financial Literacy CFA Society of Buffalo Introduction

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SLIDE 2

Guess ss their net worth:

$320 Million

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SLIDE 3

Guess ss their net worth:

$440 Million

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SLIDE 4

Guess ss their net worth:

$3.2 Billion

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SLIDE 5

Guess ss their net worth:

$0

https://www.youtube.com/watch?v=ib-0_N9G0Lo
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SLIDE 6

76% of Americans live paycheck to paycheck 55% of Americans DID NOT save a penny last year 97% of Baby Boomers HAVE NOT saved enough to retire $1 TRILLION in Credit Card Debt Outstanding $1.2 TRILLION in Student Loans Outstanding $11.6 TRILLION in Total Consumer Debt Outstanding

Wh Why is is Fin Finan ancial L ial Lit iter erac acy im importan ant? t?

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SLIDE 7

Wh What w t we h e hope y e you will lear will learn…

What is debt? Is all debt bad? What is interest? How do you compare loans? What is investing? When should you start investing? How should you build a budget?

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SLIDE 8

Ga Gameplan

Session 1: Net Worth Interest Compounding Debt Investing Session 2: Income Expenses Budgeting Tips Tools

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SLIDE 9

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Assets Liabilities Net Worth

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SLIDE 10

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Assets

House Car Savings Investments Money

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SLIDE 11

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Liabilities

Mortgages Car Loans Credit Card Debt Student Loans Unpaid Bills

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SLIDE 12

Assets Liabilities Net Worth

House Savings Investments Car Mortgages Car Loans Credit Card Debt Student Loans Unpaid Bills

Bu Building Bl Bloc

  • ck: Net Wor
  • rth
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SLIDE 13

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with cash, how does that impact your net worth?

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SLIDE 14

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with cash, how does that impact your net worth?

Cash $250 Liabilities $0 Net Worth $250

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SLIDE 15

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with cash, how does that impact your net worth?

Cash $250 Liabilities $0 Net Worth $250

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SLIDE 16

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with cash, how does that impact your net worth?

Cash $250 Liabilities $0 Net Worth $250

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SLIDE 17

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with cash, how does that impact your net worth?

TV $250 Liabilities $0 Net Worth $250

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SLIDE 18

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with cash, how does that impact your net worth?

TV $250 Liabilities $0 Net Worth $250

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SLIDE 19

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with cash, how does that impact your net worth?

TV $250 Liabilities $0 Net Worth $250

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SLIDE 20

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with a credit card, how does that impact your net worth?

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SLIDE 21

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with a credit card, how does that impact your net worth?

TV $250 Credit Card $250 Net Worth $0

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SLIDE 22

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with a credit card, how does that impact your net worth?

TV $250 Credit Card $250 Net Worth $0

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SLIDE 23

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You pay for a $250 TV with a credit card, how does that impact your net worth?

TV $250 Credit Card $250 Net Worth $0

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SLIDE 24

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example:

You buy a $150k home, paying $30k down and taking a $120k

  • mortgage. Does purchasing the home increase your net worth?
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SLIDE 25

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example: Cash $30k Liabilities $0 Net Worth $30k

You buy a $150k home, paying $30k down and taking a $120k

  • mortgage. Does purchasing the home increase your net worth?
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SLIDE 26

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example: Home $150k Liabilities Net Worth

You buy a $150k home, paying $30k down and taking a $120k

  • mortgage. Does purchasing the home increase your net worth?
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SLIDE 27

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example: Home $150k Mortgage $120k Net Worth

You buy a $150k home, paying $30k down and taking a $120k

  • mortgage. Does purchasing the home increase your net worth?
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SLIDE 28

Bu Building Bl Bloc

  • ck: Net Wor
  • rth

Example: Home $150k Mortgage $120k Net Worth $30k

You buy a $150k home, paying $30k down and taking a $120k

  • mortgage. Does purchasing the home increase your net worth?
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SLIDE 29

Bu Building Bl Bloc

  • ck: Interest

Is interest good or bad?

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SLIDE 30

Bu Building Bl Bloc

  • ck: Interest
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SLIDE 31

Bu Building Bl Bloc

  • ck: Interest

Credit Card Interest

good or bad?

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SLIDE 32

Bu Building Bl Bloc

  • ck: Interest

Credit Card Interest

good or bad?

BAD

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SLIDE 33

Bu Building Bl Bloc

  • ck: Interest

Savings Interest

good or bad?

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SLIDE 34

Bu Building Bl Bloc

  • ck: Interest

Savings Interest

good or bad?

GOOD

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SLIDE 35

Bu Building Bl Bloc

  • ck: Interest

Interest can work for you

  • r

against you

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SLIDE 36

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

Credit Card Interest – 20% Rate $0 Year 0 Year 1 Year 2 Year 3

  • $1,000
  • $1,000
  • $200
  • $1,200
  • $1,000
  • $200
  • $240
  • $1,440
  • $1,000
  • $200
  • $240
  • $1,728
  • $288
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SLIDE 37

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

Investment Interest – 10% Rate $0 Year 0 Year 1 Year 2 Year 3

$1,000 $1,000 $100

$1,100

$1,000 $100 $110

$1,210

$1,000 $100 $110 $121

$1,331

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SLIDE 38

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

5% Savings vs 5% Debt $0

$1,000 $1,000 $1,000 $1,000

  • $1,000
  • $1,000
  • $1,000
  • $1,000
  • $50
$50 $50
  • $50
$50
  • $50
  • $52.50
  • $55.13
  • $52.50
$52.50 $52.50 $55.13

$1,050 $1,102.50 $1,157.63

  • $1,050
  • $1,102.50
  • $1,157.63
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SLIDE 39

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

5% Savings vs 5% Debt $0

$1,000 $1,000 $1,000 $1,000

  • $1,000
  • $1,000
  • $1,000
  • $1,000
  • $50
$50 $50
  • $50
$50
  • $50
  • $52.50
  • $55.13
  • $52.50
$52.50 $52.50 $55.13
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SLIDE 40

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

5% Savings vs 5% Debt $0

$1,000

  • $1,000
$50
  • $50
  • $55.13
  • $52.50
$52.50 $55.13

$1,157.63

  • $1,157.63

Assets

Liabilities

Net Worth

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SLIDE 41

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

5% Savings vs 5% Debt

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SLIDE 42

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

5% Savings vs 5% Debt $0

$1,000

  • $1,000
$50
  • $50
  • $55.13
  • $52.50
$52.50 $55.13

$1,157.63

  • $1,157.63

Assets

Liabilities

Net Worth

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SLIDE 43

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

5% Savings vs 5% Debt

+1,157.63 Liabilities +1,157.63

Assets

  • 1,157.63
  • 1,157.63

Interest can work for you or against you.

When it works for you it builds your net worth, when it works against you it destroys your net worth.

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SLIDE 44

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

Example:

Would you rather get a $1,000,000 cash today or a penny per day doubled each day for 30 days?

OR

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SLIDE 45

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding

Example:

Penny per day doubled each day for 30 days:

$10,737,418.23

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 Day 1 Day 5 Day 10 Day 15 Day 20 Day 25 Day 30
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SLIDE 46

Bu Building Bl Bloc

  • ck: Comp

Compou

  • unding
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SLIDE 47 95

Financial Literacy CFA Society of Buffalo Debt

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SLIDE 48

What is debt?

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SLIDE 49

Wh What is t is d deb ebt? t?

Debt is when you borrow money and then have to pay it back at a later date. Debt is also known as a liability. Examples of Debt: Credit Cards, Mortgages, Student Loans, Personal Loans

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SLIDE 50

What is the purpose of debt?

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SLIDE 51

Wh What is t is th the p e purpose o e of d deb ebt? t?

Debt enables you to purchase things you wouldn’t otherwise be able to afford.

H
  • u
s e s College Education Emergencies C a r s
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SLIDE 52

What is the cost of debt?

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SLIDE 53

Wh What is t is th the c e cost o t of d deb ebt? t?

The cost of debt is…

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SLIDE 54

Wh What is t is th the c e cost o t of d deb ebt? t?

Guess the interest rate on an average car loan?

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SLIDE 55

Wh What is t is th the c e cost o t of d deb ebt? t?

Guess the interest rate on an average car loan?

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SLIDE 56

Wh What is t is th the c e cost o t of d deb ebt? t?

Guess the interest rate on an average mortgage?

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SLIDE 57

Wh What is t is th the c e cost o t of d deb ebt? t?

Guess the interest rate on an average mortgage?

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SLIDE 58

Wh What is t is th the c e cost o t of d deb ebt? t?

Guess the interest rate on an average student loan?

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SLIDE 59

Wh What is t is th the c e cost o t of d deb ebt? t?

Guess the interest rate on an average student loan?

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SLIDE 60

Wh What is t is th the c e cost o t of d deb ebt? t?

Guess the interest rate on an average credit card?

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SLIDE 61

Wh What is t is th the c e cost o t of d deb ebt? t?

Guess the interest rate on an average credit card?

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SLIDE 62

Ho How im w importan ant is t is th the in e inter eres est r t rate? e?

Let’s say you take out a $120k mortgage at the average mortgage rate – 4.38%. How much does that mortgage cost in total, interest included?

Principal $120,000.00

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SLIDE 63

Ho How im w importan ant is t is th the in e inter eres est r t rate? e?

Let’s say you take out a $120k mortgage at the average mortgage rate – 4.38%. How much does that mortgage cost in total, interest included?

Principal $120,000.00 Interest $95,816.58

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SLIDE 64

Ho How im w importan ant is t is th the in e inter eres est r t rate? e?

Let’s say you take out a $120k mortgage at the average mortgage rate – 4.38%. How much does that mortgage cost in total, interest included?

Principal $120,000.00 Interest $95,816.58 Total $215,818.65

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SLIDE 65

Ho How im w importan ant is t is th the in e inter eres est r t rate? e?

Let’s say you take out that same $120k mortgage at the credit card rate – 16.71%. How much does that mortgage cost in total, interest included?

Principal $120,000.00

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SLIDE 66

Ho How im w importan ant is t is th the in e inter eres est r t rate? e?

Let’s say you take out that same $120k mortgage at the credit card rate – 16.71%. How much does that mortgage cost in total, interest included?

Principal $120,000.00 Interest $485,730.42

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SLIDE 67

Ho How im w importan ant is t is th the in e inter eres est r t rate? e?

Let’s say you take out that same $120k mortgage at the credit card rate – 16.71%. How much does that mortgage cost in total, interest included?

Principal $120,000.00 Interest $485,730.42 Total $605,730.42

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SLIDE 68

While this is an unrealistic scenario (you would never buy a house on a credit card), it shows the importance of the interest rate.

Ho How im w importan ant is t is th the in e inter eres est r t rate? e?

4.38% 16.71% Total $215,818.65 $605,730.42 Difference 389,911.77

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SLIDE 69

Is debt good or bad?

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SLIDE 70
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SLIDE 71

Taking out a loan to finance the purchase of a $30,000 Rolex to look cool and impress your friends

Good or bad use se of f debt?

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SLIDE 72

Taking out a loan to finance the purchase of a $30,000 Rolex to look cool and impress your friends

Good or bad use se of f debt?

BAD

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SLIDE 73

Taking out a car loan to purchase a reliable Toyota Camry car so you can make it to and from work

Good or bad use se of f debt?

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SLIDE 74

Taking out a car loan to purchase a reliable Toyota Camry car so you can make it to and from work

Good or bad use se of f debt?

GOOD

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SLIDE 75

Taking out a mortgage to buy a house in a nice neighborhood at a reasonable price

Good or bad use se of f debt?

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SLIDE 76

Taking out a mortgage to buy a house in a nice neighborhood at a reasonable price

Good or bad use se of f debt?

GOOD

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SLIDE 77

Using a credit card to buy a new 60” TV for your man cave to watch Buffalo Bills games

Good or bad use se of f debt?

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SLIDE 78

Using a credit card to buy a new 60” TV for your man cave to watch Buffalo Bills games

Good or bad use se of f debt?

BAD

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SLIDE 79

Ho How d w does es d deb ebt im t impac act n t net w t worth th?

Assets Liabilities Net Worth

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SLIDE 80

Ho How d w does es d deb ebt im t impac act n t net w t worth th?

Assets Liabilities Net Worth

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SLIDE 81

A good use of debt enables a purchase of an asset that retains value or adds to your net worth long after the debt has been paid off. For instance, a home retains value for many years. A college education enables you to earn more money and build your net worth. That pair of shoes you bought on a credit card is going to be worth almost nothing after just a few uses! This is destructive to your net worth.

Wh What m t mak akes es a a go good us use e of deb debt? t?

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SLIDE 82 130

Financial Literacy CFA Society of Buffalo Investing

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SLIDE 83

What is investing?

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SLIDE 84

By definition investing is the purchase of an asset with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit.

Wh What is t is in inves esting ting?

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SLIDE 85

Stocks Bonds Houses Businesses

Wh What ar t are e in inves estm tmen ents ts?

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SLIDE 86

10% 10% An Annualized Return

1990 - 2014
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SLIDE 87

Ho How m w much d do y you h have t e to in inves est t to to buy buy a ho hous use e in in 10 10 years?

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SLIDE 88

Ho How m w much d do y you h have t e to in inves est to to buy buy a ho hous use in 10 years? s?

$150,000 home

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SLIDE 89

Ho How m w much d do y you h have t e to in inves est to to buy buy a ho hous use in 10 years? s?

$150,000 home 20% Down Payment = $30,000

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SLIDE 90

Ho How m w much d do y you h have t e to in inves est to to buy buy a ho hous use in 10 years? s?

$150,000 home 20% Down Payment = $30,000 Average return on investment = 10%

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SLIDE 91

Ho How m w much d do y you h have t e to in inves est to to buy buy a ho hous use in 10 years? s?

$150,000 home 20% Down Payment = $30,000 Average return on investment = 10% $1,882 per year

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SLIDE 92

Ho How m w much d do y you h have t e to in inves est to to buy buy a ho hous use in 10 years? s?

$150,000 home 20% Down Payment = $30,000 Average return on investment = 10% $1,882 per year $156 per month

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SLIDE 93

Ho How m w much d do y you h have t e to in inves est to to buy buy a ho hous use in 10 years? s?

$150,000 home 20% Down Payment = $30,000 Average return on investment = 10% $1,882 per year $156 per month $36 per week

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SLIDE 94

Ho How m w much d do y you h have t e to in inves est t to to be a

mi millionaire?

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SLIDE 95

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
$1,219,630 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 25 30 35 40 45 50 55 60 65 Start at 25, save $2,500/year
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SLIDE 96 $1,219,630 $454,859 $272,954 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 25 30 35 40 45 50 55 60 65 Start at 25, save $2,500/year Start at 35, save $2,500/year Start at 40, save $5,000/year

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
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SLIDE 97 $1,219,630 $454,859 $272,954 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 25 30 35 40 45 50 55 60 65 Start at 25, save $2,500/year Start at 35, save $2,500/year Start at 40, save $5,000/year

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
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SLIDE 98

Average Annual Personal Income in the United States:

$31,099

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
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SLIDE 99

Average Annual Personal Income in the United States:

$31,099

So to save $2,500/year, that’s just

8%

  • f the average income.

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
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SLIDE 100

If If you u can n make e the the av aver erage age income, , invest 8% 8% of

  • f you
  • ur paycheck, and earn the av

aver erage age ra rate of return,

YO YOU CAN BE A

mi millionaire

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SLIDE 101

$2,500/year is equivalent to:

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
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SLIDE 102

$2,500/year is equivalent to: $208 per month

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
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SLIDE 103

$2,500/year is equivalent to: $208 per month $48 per week

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
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SLIDE 104

$2,500/year is equivalent to: $208 per month $48 per week $7 per day

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?
slide-105
SLIDE 105

$2,500/year is equivalent to: $208 per month $48 per week $7 per day

Ho How m w much d do y you h have t e to in inves est to to be a mi million

  • naire?

$2 $5

slide-106
SLIDE 106

If If you u ski skip out on your daily y Tim Horton’s s and Ch Chipot

  • tle -

YO YOU CAN BE A

mi millionaire

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SLIDE 107 174

Financial Literacy CFA Society of Buffalo Income & Budgeting

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SLIDE 108

Re Review: Net Worth

Assets Liabilities Net Worth

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SLIDE 109

Bu Building Bl Bloc

  • ck: Income
  • me

Investments Paycheck Secondary Income Tax Refunds

Income

slide-110
SLIDE 110

Bu Building Bl Bloc

  • ck: Expenses

Utilities Rent/Mortgage Phone Cable Groceries Subscriptions Car Payments Loan Payments

Expenses

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SLIDE 111

Bu Building Bl Bloc

  • ck: Income
  • me & Expenses

Assets Liabilities

Net Worth

Income Expenses

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SLIDE 112

Bu Building Bl Bloc

  • ck: Income
  • me & Expenses

Assets Liabilities

Net Worth

Income Expenses

Your income goes towards paying your bills (expenses). The money left over can be saved, invested, or spent which builds your assets (and net worth).

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SLIDE 113

Ho How c w can an y you g grow y w your as assets ts?

Income Expenses Assets

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SLIDE 114

Ho How c w can an y you g grow y w your as assets ts?

Income

Expenses

Assets

  • 1. Increase income
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SLIDE 115

Ho How c w can an y you g grow y w your as assets ts?

Income

Expenses

Assets

  • 2. Reduce Expenses
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SLIDE 116

Ho How c w can an y you g grow y w your as assets ts?

  • 3. Both!

Income

Expenses

Assets

slide-117
SLIDE 117

Re Remember?

$1,219,630 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 25 30 35 40 45 50 55 60 65 Start at 25, save $2,500/year
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SLIDE 118

Ho How d w do y you m mak ake s e sure y e you h have th e the e $2, $2,500/y 500/year r to

in inves est?

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SLIDE 119
slide-120
SLIDE 120

Wh What is t is a b a budget? t?

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SLIDE 121

A budget is simply a plan.

Wh What is t is a b a budget? t?

Assets Liabilities

Net Worth

Income Expenses

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SLIDE 122

A budget is simply a plan. A plan on how much you will make,

Wh What is t is a b a budget? t?

Assets Liabilities

Net Worth

Income Expenses

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SLIDE 123

A budget is simply a plan. A plan on how much you will make, and how much you will spend.

Wh What is t is a b a budget? t?

Assets Liabilities

Net Worth

Income Expenses

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SLIDE 124

Ho How d w do y you m mak ake a b e a budget? t?

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SLIDE 125

Let your SAVING dictate your SPENDING

Don’t let your spending dictate your savings.

Ho How d w do y you m mak ake a b e a budget? t?

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SLIDE 126

Think about saving as your number one expense.

Ho How d w do y you m mak ake a b e a budget? t?

Expenses #1 Savings #2 Housing #3 Groceries #4 Other Bills

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SLIDE 127

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Rent $800 Shopping $200 Utilities $50 Groceries $150 Total $1200

What’s wrong?

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SLIDE 128

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Rent $800 Shopping $200 Utilities $50 Groceries $150 Total $1200

What’s wrong? No savings!

slide-129
SLIDE 129

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Rent $800 Shopping $200 Utilities $50 Groceries $150 Total $1200

What’s wrong? No savings! Savings - $100 $1300

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SLIDE 130

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Rent $800 Shopping $200 Utilities $50 Groceries $150 Total $1200

How about now? Savings - $100 $1300

slide-131
SLIDE 131

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Rent $800 Shopping $200 Utilities $50 Groceries $150 Total $1200

How about now? We have more expenses than income! Savings - $100 $1300

slide-132
SLIDE 132

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Rent $800 Shopping $200 Utilities $50 Groceries $150 Total $1200

How about now? We have more expenses than income! Savings is #1 expense, so something else must go… Savings - $100 $1300

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SLIDE 133

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Rent $800 Shopping $200 Utilities $50 Groceries $150 Total $1200

How about now? We have more expenses than income! Savings is #1 expense, so something else must go… Savings - $100 $1300 $ 1 2 $100

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SLIDE 134

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Savings $100 Rent $800 Shopping $100 Utilities $50 Groceries $150 Total $1200

Now we have:

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SLIDE 135

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Savings $100 Rent $800 Shopping $100 Utilities $50 Groceries $150 Total $1200

Now we have:

  • 1. Included Savings in our budget
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SLIDE 136

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Savings $100 Rent $800 Shopping $100 Utilities $50 Groceries $150 Total $1200

Now we have:

  • 1. Included Savings in our budget
  • 2. Reduced our Expenses
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SLIDE 137

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Savings $100 Rent $800 Shopping $100 Utilities $50 Groceries $150 Total $1200

Now we have:

  • 1. Included Savings in our budget
  • 2. Reduced our Expenses
  • 3. Balanced our budget
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SLIDE 138

Ex Exampl ple: Bu Budgeting

Income Paycheck $1200 Expenses Savings $100 Rent $800 Shopping $100 Utilities $50 Groceries $150 Total $1200

Now we have:

  • 1. Included Savings in our budget
  • 2. Reduced our Expenses
  • 3. Balanced our budget

What do we do next?

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SLIDE 139
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SLIDE 140

“A budget tells us what we can’t afford, but it doesn’t keep us from buying it.”

William Feather
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SLIDE 141

Wh Wher ere d e did id M Mik ike T e Tyson g go wr wrong?

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SLIDE 142

Wh Wher ere d e did id M Mik ike T e Tyson g go wr wrong?

Did not understand net worth Did not understand compounding Did not budget Did not save Did not invest

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SLIDE 143

Wh Wher ere d e did id M Mik ike T e Tyson g go wr wrong?

Mike Tyson went broke because he was not Financially Literate.

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SLIDE 144

To Tools to apply what you have learned:

Build and track your budget throughout the month with this easy to use mobile app. Save the “spare change” automatically from debit card transactions. Check your credit score for free and get tips on how to better manage credit. Invest in stocks and ETFs commission-free. Bring all your accounts together with this app that can track all of your expenses. Create budgets, track bills, check your credit score – a great personal finance tool.
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SLIDE 145 241

Thank You!