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SHIFT Garage Managing Finances Class

Your Money Values and Influences

September 2018

Money Smart for Adults

Values and Money

See page 1 in your Participant Guide

September 2018

Money Smart for Adults

Key Takeaway

Understanding your values can help you set achievable financial goals.

    September 2018

    Money Smart for Adults

    What Are Values?

    • People, things, and places that are important to you and guide how you make decisions
    • Values shape how you prioritize time, energy, and money

    Money Smart for Adults

    September 2018

    Apply It: My ValuesSee page 1 in your Participant Guide

    September 2018

    Money Smart for Adults

    Module 1: Your Money Values and Influences

    Try It: Values and Financial ChoicesSee page 2 in your Participant Guide

    September 2018

    Money Smart for Adults

    Module 1: Your Money Values and Influences

    Remember the Key Takeaway

    Understanding your values can help you set achievable financial goals.

      September 2018

      Money Smart for Adults

      Module 1: Your Money Values and Influences

      Section 2: Goals and Money

      Goals and Money See page 3 in your Participant Guide

      September 2018

      Money Smart for Adults

      Module 1: Your Money Values and Influences

      September 2018

      Money Smart for Adults

      Module 1: Your Money Values and Influences

      Key Takeaway

      Setting SMART goals helps you achieve your hopes and dreams for the future by providing a realistic plan to follow.

        10

        September 2018

        Money Smart for Adults

        Module 1: Your Money Values and Influences

        What are Goals?

        • What kind of future do you want?
        • These are your hopes and dreams
        • Goals are your desired results
        • Set goals:
        • To prioritize how you use money
        • To measure and track progress

        11

        September 2018

        Money Smart for Adults

        Module 1: Your Money Values and Influences

        Setting SMART Goals

        • Goals should be:
        • Specific
        • Measurable
        • Action-oriented
        • Reachable
        • Time-bound
        "I will [specific & measurable outcome] by doing [action-oriented steps], [ensuring it is reachable with available resources or support], and I will accomplish this by [specific deadline or within a specific number of months]."

        September 2018

        Money Smart for Adults

        Module 1: Your Money Values and Influences

        12

        SMART Goals

        13

        September 2018

        Money Smart for Adults

        Module 1: Your Money Values and Influences

        SMART Goal Examples

        1. Build a Basic Emergency Fund • Goal: Save $1,000 for an emergency fund. • SMART Format: "I will save $1,000 by setting aside $100 each month over the next 10 months to create a financial safety net for unexpected expenses." 2. Pay Off Credit Card Debt • Goal: Eliminate high-interest credit card debt. • SMART Format: "I will pay off $3,000 in credit card debt by making $300 monthly payments for the next 10 months, using a spendi to reduce discretionary spending." 3. Save for My Next Car • Goal: Pay cash for my next car. • SMART Format: "I will save $4,800 by contributing $200 monthly into a high-yield savings account over the next 24 months."

        14

        September 2018

        Money Smart for Adults

        Module 1: Your Money Values and Influences

        Apply It: My SMART Goals See page 4 in your Participant Guide

        September 2018

        Money Smart for Adults

        Module 1: Your Money Values and Influences

        15

        Remember the Key Takeaway

        Setting SMART goals helps you achieve your hopes and dreams for the future by providing a realistic plan to follow.

          16

          September 2018

          Money Smart for Adults

          Module 1: Your Money Values and Influences

          Section 3: External Influences

          External Influences See page 5 in your Participant Guide

          17

          September 2018

          Money Smart for Adults

          Module 1: Your Money Values and Influences

          September 2018

          Money Smart for Adults

          Module 1: Your Money Values and Influences

          Key Takeaway

          External influences impact financial choices. Use strategies to stay focused on your goals.

            18

            September 2018

            Money Smart for Adults

            Module 1: Your Money Values and Influences

            Influences on Choices about Money

            • Advertisements
            • Media
            • Celebrities
            • Peers/friends

            September 2018

            Money Smart for Adults

            Module 1: Your Money Values and Influences

            19

            Influences Can Be…

            • Productive
            • Helping you achieve your goals
            • Unproductive
            • Getting in your way

            20

            September 2018

            Money Smart for Adults

            Module 1: Your Money Values and Influences

            External Influences: Group Activity

            • Advertisements
            • Media
            • Celebrities
            • Peers/friends

            21

            September 2018

            Money Smart for Adults

            Module 1: Your Money Values and Influences

            Social Pressure and Advertising

            • It’s human nature to want what others have
            • Advertisers spend money to influence how we spend our money
            • Impulse purchases can make it harder to achieve goals

            22

            September 2018

            Money Smart for Adults

            Module 1: Your Money Values and Influences

            Strategies for Staying Focused on Your Goals

            • Recognize tactics used by advertisers
            • Notice when and where you’re tempted
            • Control your environment
            • Build in a pause

              23

              September 2018

              Money Smart for Adults

              Module 1: Your Money Values and Influences

              More Strategies for Staying Focused on Your Goals

              • Talk yourself out of it
              • Calculate hours or days an item is worth
              • Think about your hourly wage
              • Divide cost of item by hourly wage
              • Quantify purchase in terms of a very valuable thing  your time

              $ hourly wage

              $ cost of item

              Hours you have to work to pay for item

              24

              September 2018

              Money Smart for Adults

              Module 1: Your Money Values and Influences

              Apply It: Staying Focused on My GoalsSee page 8 in your Participant Guide

              25

              September 2018

              Money Smart for Adults

              Module 1: Your Money Values and Influences

              Remember the Key Takeaway

              External influences impact financial choices. Use strategies to stay focused on your goals.

                26

                September 2018

                Money Smart for Adults

                Module 1: Your Money Values and Influences

                Module 3: Your Income and Expenses

                Your Income and Expenses

                September 2018

                27

                Module 3: Your Income and Expenses

                September 2018

                Money Smart for Adults

                Section 1: Income

                Income

                See page 9 in your Participant Guide

                Module 3: Your Income and Expenses

                September 2018

                Money Smart for Adults

                September 2018

                Money Smart for Adults

                Module 3: Your Income and Expenses

                28

                Key Takeaway

                Understand your income. That is the first step to using it to meet your needs.

                  29

                  Module 3: Your Income and Expenses

                  September 2018

                  Money Smart for Adults

                  What is Income?

                  • Income is money you receive
                  What are some types of income?

                  30

                  Module 3: Your Income and Expenses

                  September 2018

                  Money Smart for Adults

                  Gross and Net Income

                  • Gross income
                  • Total income without deductions
                  • Net income
                  • Gross income minus deductions
                  • What you have to save, share, and spend
                  • Your take-home pay

                    31

                    Module 3: Your Income and Expenses

                    September 2018

                    Money Smart for Adults

                    Garnishment

                    • Wage garnishment
                    • Account garnishment
                    • Treasury offset

                    32

                    Module 3: Your Income and Expenses

                    September 2018

                    Money Smart for Adults

                    More Than One Job or a Paid “Hobby”

                    • Understand how you are being paid
                    • May have to pay taxes yourself
                    • Consider putting money aside for the future
                    • Keep accurate records!

                    33

                    Module 3: Your Income and Expenses

                    September 2018

                    Money Smart for Adults

                    Tracking Your Income

                    • Regular income
                    • Unpredictable income
                    • Seasonal income
                    • One-time income

                    34

                    Module 3: Your Income and Expenses

                    September 2018

                    Money Smart for Adults

                    Apply It: My Monthly Income LogSee page 10-11 in your Participant Guide

                    35

                    Module 3: Your Income and Expenses

                    September 2018

                    Money Smart for Adults

                    Remember the Key Takeaway

                    Understand your income. That is the first step to using it to meet your needs.

                      Module 3: Your Income and Expenses

                      September 2018

                      Money Smart for Adults

                      36

                      Section 2: Expenses

                      Expenses

                      See page 12 in your Participant Guide

                      37

                      Module 3: Your Income and Expenses

                      September 2018

                      Money Smart for Adults

                      September 2018

                      Money Smart for Adults

                      Module 3: Your Income and Expenses

                      Key Takeaway

                      Understand your expenses.That will help you decide how to save, share and spend your income.

                        38

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Ways to Use Your Money

                        • What do people do with their money?

                        39

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Think About How You Use Your Money

                        • Saving it
                        • Sharing it
                        • Spending it

                        “On the first day of every week, each one of you should set aside a sum of money in keeping with your income, saving it up…” (1 Corinthians 16:2)

                        “Whoever sows sparingly will also reap sparingly… God loves a cheerful giver” (2 Corinthians 9:6-7)

                        “The plans of the diligent lead to profit as surely as haste leads to poverty” (Proverbs 21:5)

                        40

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Ways to Think About Expenses

                        • Needs: Things you must have to live
                        • Wants: Things you desire and can live without
                        • Obligations: Debts you owe
                        Can you:
                        • Find less expensive ways to meet needs?
                        • Use less money for wants?
                        • Negotiate lower payments for obligations?

                        41

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Tracking Your Expenses

                        • Helps you understand if you are using your money in line with your value and goals
                        • Uncovers where you can make changes
                        AND … it can help you spend less

                        42

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Apply It: My Saving, Sharing, and Spending Diary See page 13-14 in your Participant Guide

                        43

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Apply It: My Monthly Expense LogSee page 15-16 in your Participant Guide

                        44

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Managing Your Expenses

                        • Helps you avoid:
                        • Late fees
                        • Interest on unpaid balances
                        • Negative credit report entries
                        • Loss of services
                        • Additional charges associated with loss of services

                        45

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Ways to Pay Bills

                        • In person
                        • By mail
                        • Electronically
                        • Through financial institution
                        • Credit card website
                        • Through entity you owe money to
                        • Bill paying service
                        • Via mobile app

                        46

                        Module 3: Your Income and Expenses

                        September 2018

                        Money Smart for Adults

                        Remember the Key Takeaway

                        Understand your expenses.That will help you decide how to save, share and spend your income.

                          Module 3: Your Income and Expenses

                          September 2018

                          Money Smart for Adults

                          47

                          Module 4: Your Spending and Saving Plan

                          Your Spending and Saving Plan

                          ‹#›

                          48

                          September 2018

                          Money Smart for Adults

                          Module 4: Your Spending and Saving Plan

                          September 2018

                          Section 1: Making a Monthly Spending and Saving Plan

                          Making a MonthlySpending and Saving Plan See page 19 in your Participant Guide

                          49

                          Money Smart for Adults

                          Module 4: Your Spending and Saving Plan

                          September 2018

                          September 2018

                          Money Smart for Adults

                          Module 4: Your Spending and Saving Plan

                          Key Takeaway

                          Use a monthly spending and saving plan to guide how you use your money.

                            50

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            Building Blocks of aSpending and Saving Plan

                            • Compare income andexpenses
                            • Understand where your money is going
                            • Make adjustments

                            Income: Money you receive

                            Expenses:How you use your income

                            51

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            Filling Out My Spending and Saving Plan

                            • Three sections:
                            • My Net Income
                            • My Expenses
                            • Comparison
                            • Steps to fill it out:
                            • Complete Past Monthly Amount
                            • Complete Planned Monthly Amount
                            • Compare total net income and total expenses
                            • If needed, make changes

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            52

                            When You Compare

                            My Total Net Income minus My Total Expenses

                            • If the Difference is:
                            • Zero -- your income equals your expenses
                            • Positive -- you have more income than expenses
                            • Negative -- you have more expenses than income

                            53

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            Try It: Making a Spending and Saving PlanSee page 20-23 in your Participant Guide

                            54

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            Daily and Weekly Ideas

                            • Daily Ideas
                            • Record your saving, sharing, and spending
                            • Collect your change
                            • Other ideas?
                            • Weekly Ideas
                            • Envelope system
                            • Weekly money check-in
                            • Other ideas?

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            55

                            Monthly Ideas

                            • Monthly Ideas
                            • Conduct a monthly review
                            • Have a monthly goal-setting session
                            • Celebrate successes
                            • Prepare for taxes
                            • Other ideas?

                            56

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            Apply It: Using My Spending and Saving PlanSee page 24-26 in your Participant Guide

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            57

                            Increasing Income

                            • Can help you cover expenses, save, or share
                            • Once (sell something)
                            • Occasionally (a few garage sales)
                            • Ongoing (part-time second job)
                            • Long-term (workforce development)

                            What are other ways to increase your income?

                            58

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            Decreasing Expenses

                            • Think about needs, wants and obligations
                            • Conserve:
                            • What can you get cheaper, or use less of?
                            • Adjust:
                            • What can you renegotiate?
                            • Do without:
                            • What can you eliminate?

                            59

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            Conserve with Needs

                            • Food:

                            60

                            September 2018

                            Money Smart for Adults

                            Module 1: Your Money Values and Influences

                            Conserve with Wants

                            • Beverages:

                            61

                            September 2018

                            Money Smart for Adults

                            Module 1: Your Money Values and Influences

                            Do Without

                            • Streaming Service Subscriptions:
                            • Average cost of top 8 streaming services: $11.50 per month

                            62

                            September 2018

                            Money Smart for Adults

                            Module 1: Your Money Values and Influences

                            Try It: Adjusting a Spending and Saving PlanSee page 28 in your Participant Guide

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            63

                            Apply It: Making My Spending and Saving PlanSee page 29-33 in your Participant Guide

                            64

                            Money Smart for Adults

                            Module 4: Your Spending and Saving Plan

                            September 2018

                            Remember the Key Takeaway

                            Use a monthly spending and saving plan to guide how you use your money.

                              65

                              Money Smart for Adults

                              Module 4: Your Spending and Saving Plan

                              September 2018

                              Section 2: When Money is Short

                              When Money Is Short

                              66

                              Money Smart for Adults

                              Module 4: Your Spending and Saving Plan

                              September 2018

                              September 2018

                              Money Smart for Adults

                              Module 4: Your Spending and Saving Plan

                              Key Takeaway

                              Prioritize which bills to pay first when money is short.

                              67

                              Money Smart for Adults

                              Module 4: Your Spending and Saving Plan

                              September 2018

                              How Does It Happen?

                              • Even with careful planning, money can run short

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                              Money Smart for Adults

                              Module 4: Your Spending and Saving Plan

                              September 2018

                              What Can I Do?

                              • Increase income
                              • Decrease expenses
                              • Contact your creditors
                              • Reach out for help
                              • Prioritize what to pay first

                              69

                              Money Smart for Adults

                              Module 4: Your Spending and Saving Plan

                              September 2018

                              Prioritizing Based on What Might Happen

                              • Make choices about which bills to pay in full, pay partially, or pay late
                              • Pay attention to consequences that:
                              • Prevent you from earning income
                              • Jeopardize your shelter
                              • Impact health or ability to live independently
                              • Could result in loss of your assets

                              70

                              Money Smart for Adults

                              Module 4: Your Spending and Saving Plan

                              September 2018

                              Remember the Key Takeaway

                              Prioritize which bills to pay first when money is short.

                                71

                                Money Smart for Adults

                                Module 4: Your Spending and Saving Plan

                                September 2018

                                Take Action

                                • What will I do?
                                • How will I do it?
                                • Will I share my plans withanyone? If so, who?

                                  Visit fdic.gov/education to learn more

                                  Money Smart for Adults

                                  Module 4: Your Spending and Saving Plan

                                  September 2018

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