MoneyWi$e
Money Management Training
Welcome
MoneyWi$e is a joint financial
education project of Consumer
Action and Capital One
MoneyWi$e: Money Management
The Money Management
course will give you...
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An understanding of what good
money management is and why
it is important
Skills and ideas to help you
better manage your money
MoneyWi$e: Money Management
Money Management
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Session One
(Two hours)
MoneyWi$e: Money Management
Course objectives
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This seminar will help you
understand:
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How to prepare a budget
How to balance your accounts
How to cut back on expenses
Ideas for increasing your income
How to save more
How to set financial goals
MoneyWi$e: Money Management
In participants’ folders
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Manage Your Money Wisely (brochure)
Checkbook Balancing Activity
(worksheet)
Money Management Self Evaluation
Three Sample Profiles (class exercise)
Financial Goals Worksheets
Take-home Budget Worksheet
Money Management Seminar
Evaluation Form
MoneyWi$e: Money Management
Money management
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What is money management?
– Knowing how to save, spend and
invest your money so that you and
your family can successfully work
toward your financial goals
MoneyWi$e: Money Management
Money management activities
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What activities go with money
management?
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Tracking your spending.
Making a budget.
Balancing your checkbook.
Using credit wisely.
Setting long- and short-term goals.
Earmarking money for savings.
MoneyWi$e: Money Management
Be a wise money manager
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Wise money management can
help you:
– Pay your bills on time.
– Make it through times when you are
not working.
– Save money.
– Plan for short- and long-term goals.
MoneyWi$e: Money Management
Budgeting
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What is a budget?
– A spending plan to help you
forecast and control your expenses.
MoneyWi$e: Money Management
Making a budget
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How do you make a budget?
– You need to figure out how much
you spend each month and
compare that amount to your takehome pay.
– Track your spending for a set
period of time, like a month, in
order to figure out how much
money you spend.
MoneyWi$e: Money Management
Tracking your spending
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What are some ways to track
how much money you are
spending each day, each week,
or each month?
MoneyWi$e: Money Management
Ways to track spending
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Keep a notebook handy and
write down everything you buy
and every bill you pay.
Keep all your receipts in an
envelope or shoe box.
Create a computer file for
entering your income and
expenses.
MoneyWi$e: Money Management
Your budget
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What are some of the things that
should be included in your
budget?
MoneyWi$e: Money Management
Your budget may include:
– Housing
– Food (groceries, restaurants,
snacks)
– Automobile (payments, gas,
repairs, insurance, commuting
expenses)
– Clothing & personal grooming
– Utilities (electric, gas, water, cable)
– Credit card payments
MoneyWi$e: Money Management
Your budget may include:
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Student loan payments
Child care
Insurance payments
Entertainment (movies, concerts,
books)
– Medical bills
– Vacations
– Income taxes
MoneyWi$e: Money Management
Making your budget work
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Does your income cover your
expenses?
If not, you need to figure out how
to spend less or earn more.
MoneyWi$e: Money Management
Bank accounts
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A bank account is an important
money management tool.
How can a bank account help
you manage your money wisely?
MoneyWi$e: Money Management
Bank accounts
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A bank account helps you keep
track of your spending and how
much money you have available.
Use your checkbook register to
write down and deduct:
– Every check you write
– Every ATM or debit card transaction
or purchase
– Any bank fees you pay
MoneyWi$e: Money Management
Benefits of a bank account:
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Money is safe.
Each account is insured.
Canceled checks prove you paid
a bill.
Having a bank account can save
you money.
MoneyWi$e: Money Management
Let’s take a break
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Please come back in 15 minutes.
MoneyWi$e: Money Management
Let’s balance a sample
checkbook
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Take out the checkbook
balancing activity from your
folders:
– Review the sample bank statement.
– Balance the sample checkbook
register.
– Balance the sample account using
the checkbook balancing
worksheet.
MoneyWi$e: Money Management
Cutting back on expenses
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What are some ways to cut back
on expenses?
MoneyWi$e: Money Management
Ideas to help you cut back
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Shop around and compare
prices.
Make a shopping list and stick to
it.
Prepare meals and bag lunches
at home.
Don’t shop recreationally—you
could be tempted to buy things
you don’t need
MoneyWi$e: Money Management
More ways to cut back
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Use the public library for books,
magazines, videos.
Join a buying co-op.
Lower your thermostat when
away or sleeping.
Walk instead of drive.
Look for a free bank account.
MoneyWi$e: Money Management
Increase your income
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Ways to earn extra money:
– Part-time or weekend job.
– Take advantage of income tax
programs, such as the Earned
Income Tax Credit.
– Start a home-based business.
– Rent out a room.
MoneyWi$e: Money Management
Setting financial goals
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Short-term goal (1-2 years) —
buying a new car, getting a
degree or planning a wedding.
Long-term goal (5-10 years or
more) — owning a home, starting
a family, paying for college or
retiring.
MoneyWi$e: Money Management
Working toward your goals
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A savings plan allows you to
work steadily toward your
financial goals.
The take-home ‘Financial Goals
Worksheet’ will help you figure
out a savings plan that works
with your particular goals.
MoneyWi$e: Money Management
Take-home activity
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The Financial Goals Worksheet
and Chart can be found in each
of your folders.
Complete the worksheets at
home.
Bring the completed worksheet
back for the second session.
See you next time!
MoneyWi$e: Money Management
Money Management
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Session Two
(Two hours)
MoneyWi$e: Money Management
Money Management
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Welcome back!
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In this session we will focus on
saving, investing, insurance,
credit and debt
MoneyWi$e: Money Management
Saving & investing
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Let’s review your Financial Goals
Worksheet.
Saving and investing can help
you to reach your short-term and
long-term goals.
MoneyWi$e: Money Management
How to save more
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“Pay yourself first” by
scheduling automatic deposits
on pay day that go into your
savings account or IRA
(individual retirement account)
MoneyWi$e: Money Management
Retirement accounts
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Does your employer offer a
retirement savings plan, such as
an IRA. An IRA can help your
retirement savings grow faster
because you do not have to pay
taxes on the earnings until you
are eligible to withdraw from the
account, at age 59 1/2.
MoneyWi$e: Money Management
Saving - CDs
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A CD (certificate of deposit) is a
safe way to save.
– Like savings accounts, CDs are
insured by the government.
– CDs often earn a higher interest
rate than savings accounts do.
– However, CDs require that you
leave your money for a set period of
time, such as six months or a year.
MoneyWi$e: Money Management
Investing
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An investment is the use of
money to create more money
Stocks, bonds and mutual funds
are all types of investments
Consider an investment advisor.
Be cautious—investments are
not government-insured and you
could lose your money.
MoneyWi$e: Money Management
Insurance
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What are the benefits of having
insurance?
Insurance protects you against
financial ruin as a result of an
unforeseen catastrophe like fire,
theft or medical emergency.
MoneyWi$e: Money Management
Kinds of insurance
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What are the most important
types of insurance for you and
your family?
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Automobile insurance
Health insurance
Homeowner’s or renter’s insurance
Life insurance
MoneyWi$e: Money Management
Saving money on insurance
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Always ask if you are eligible for
any insurance discounts.
Internet sites can help you
compare premiums:
– QuoteSmith (www.quotesmith.com)
– Quicken Insurance
(www.insuremarket.com)
MoneyWi$e: Money Management
Credit
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Good credit can help you:
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Rent an apartment
Purchase a home
Get a job
Set up phone and power service.
Buy ‘big-ticket’ items without cash
Borrow money
Obtain a credit card
Rent a car
MoneyWi$e: Money Management
To build good credit...
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Pay your bills on time.
If you carry a balance, pay as
much as you can each month.
MoneyWi$e: Money Management
Rebuilding credit
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If you have damaged your credit,
try applying for credit with local
businesses or for a secured
credit card (a bank credit card
backed by money you deposit in
a bank account)
MoneyWi$e: Money Management
Home equity loans
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Home equity loans can be used
to consolidate debt.
Be very careful before taking out
a loan secured by your home (a
home equity loan or line of
credit).
If you fail to make a payment,
you risk losing your home.
MoneyWi$e: Money Management
Good credit
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Try to avoid these expensive
credit options:
– Pawn shops, pay day loans, and car
title pawn shops
– Offers to buy things on credit with
deferred interest
– Credit cards with rates higher than
the national average (currently
about 13.50%)
MoneyWi$e: Money Management
Overwhelmed by debt?
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The National Foundation for
Consumer Credit - (800) 388-2227
or www.nfcc.org can refer you to
a credit counselor in your area.
Low- or no-cost services help
you establish a repayment plan.
Debtors Anonymous (781) 4532743; debtorsanonymous.org
MoneyWi$e: Money Management
Let’s take a break
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Please come back in 15 minutes.
MoneyWi$e: Money Management
Money management activity
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Break into small groups.
Review sample profiles.
Discuss how the people in the
sample profile can get back on
track.
Select a spokesperson from
each group to present your
ideas.
MoneyWi$e: Money Management
Take-home budget worksheet
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In your folder you’ll find a budget
worksheet.
Track your spending for a while
and then complete this
worksheet at home.
Keep yourself focused on
creative ways to save money.
MoneyWi$e: Money Management
Questions?
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Let’s try to answer some of your
questions about money
management.
MoneyWi$e: Money Management
Now you can grade us!
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Please fill out the seminar
evaluation form and leave it with
me on your way out.
MoneyWi$e: Money Management
Congratulations!
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Congratulations on completing
the Money Wi$e “Manage Your
Money Wisely” seminar!
You’ve taken a big step toward
wise money management.
Put what you’ve learned into
practice—you can do it!
MoneyWi$e: Money Management
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MoneyWi$e Money Management Training