Transcript NABA Money Sense - National Association of Black Accountants

National Association of Black
Accountants, Inc.
M ney $ense
Managing Money for Youth
Sources of Income
 Allowance
 Gifts
 Baby
sitting
 Summer job
 Scholarships
 Other people’s money
 Starting a business
Realize Your Full Earning Potential
Am I satisfied
with the
amount of
money I
currently have
or make?
Higher Learning Higher Earnings
Education Level
Annual Earnings
Lifetime Earnings
Professional Degree
$109,600
$4.4 million
Doctoral Degree
$ 89,400
$3.6 million
Master’s Degree
$ 62,300
$2.5 million
Bachelor’s Degree
$ 52,200
$2.1 million
Associate’s Degree
$ 38,200
$1.52 million
Some College
$ 36,800
$1.47 million
High School Graduate
$ 30,400
$1.2 million
Source: U.S. Census Bureau, Current Population Surveys, March 1998, 1999 and 2000. Tabulations reflect the
average annual earnings of full-time, year-round workers 25 to 64 years old.
Traditional Way to Earn Money
Strong
GPA
Scholarship
Opportunities
College of
Choice
Employment
Opportunities
Career of
Choice
Desirable
Starting
Salary
Who’s Really Making the Money?
Your House
$$$
AT&T’s House
Who’s Really Making the Money?

Fixed monthly minute
plan
 Text message
 Downloads



Ring tones
Images (screen
savers)
Internet use
AT&T’s House
Ownership
 Investor
mentality
 Stash your cash
Cash Flow Equation
(+) Revenue or Source of Income
(-) Less: Expense or Use of Income
_____________________________
(=) Net Cash Flow
Where Does Money Go?
 Cell
phone
 Movies
 Video games
 Food
 Clothes (Hats, Shoes, Jeans)
 Cosmetics (Hair & Nails)
$$$
$
$
$
$
How You Play the Money Game
 Are
you playing to get ahead?
 Are you playing to come out even?
 Are you going for broke?
Set Savings Goals
 End
of each school year?
 At beginning of senior year?
 After college graduation?


Consistency
Open an institutional account
Give Your Savings a Boost
 Invest


Grow it faster
Seek assistance
• Money coach/mentors
• Help keep you on track
Rule of 72 Exercise
$100 Today. Goal = $200.00
Investment
Type
ROR
6 Yrs
9 Yrs
12 Yrs
18 Yrs
3%
x
4%
x
6%
x
8%
12%
24 Yrs
x
x
List of Resources
ONLINE RESOURCES
 www.MyMoney.gov
 www.BankingonourFuture.org
BOOK RESOURCES


Raising Money Smart Kids: What They Need to Know
about Money and How to Tell Them (Kiplinger's
Personal Finance) by Janet Bodnar
The Kids' Allowance Book by Amy Nathan and Debbie
Palen
Thank You!
National Association of Black Accountants, Inc.
M ney $ense
For more information visit www.nabainc.org
NABA - Money $ense