who 16 areyouaspenderorsaver generally most of us can

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Unformatted text preview: Why with money??? with What are the characteristics of people What who are good with money??? who 16 Are You A Spender or Saver?? Generally Most of Us Can Be Characterized Generally As Spenders, or Savers 17 Many Americans Have Trouble Saving Money S avings Rate in 2013 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Savings Rate… 18 This Course Covers Your Entire Adult Life Cycle College money issues Getting a job Starting on a solid financial foundation Controlling your money and debts Marriage & birth of a child Marriage Buying/financing a house and cars Investing money Saving for retirement & college Estate planning 19 Every Decision Has An Opportunity Cost (Trade­off) Opportunity cost is what you give up by Opportunity making a choice making The cost, referred to as the trade-off of a The trade-off decision, cannot always be measured in dollars. Consider lost opportunities that will Consider result from your decisions result 20 Do Simple Math in Your Head You should be able to You Calculate 50%, 25%, 10% and 1% of Calculate any number in your head any Understand incremental cash flows Check the reasonableness of any Check number dealing with your money number 21 Some Thoughts on Risk It’s hard to measure, but critical to It’s evaluating financial decisions evaluating Even Wall Street doesn’t fully Even understand risk understand 22 Every Financial Decision Involves Evaluating Types of Risk Inflation risk Rising prices, lost buying power Caused by over heated economy or supply Caused shortages, easy money policies shortages, Lowers corporate profits, bad for stocks, good Lowers for commodities (gold) for Deflation risk Falling prices, discourages borrowing and Falling spending, sending a bad economy even lower lower 23 What You Should Know...
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This document was uploaded on 02/12/2014.

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