Transcript It is all about the Money: Finances

Meghan L. Oster
Leah Smith
Baylor University
 Number
a piece of paper from 1-20
 Write down the letter that you think you
would do or most agree with
 Just for fun but will hopefully help you in
the long run
Excerpted from the book It's More Than Money-It's Your Life: The New Money
Club for Women Candace Bahr, CEA, CDS and Ginita Wall, CPA, CFP®, CDS
You lucky devil! Upon arriving in Las Vegas
for a week-long vacation, you win $1,000 on
your first bet. What do you do?
A. Wire the money to your tax-free bond fund
immediately and stick to your pre-arranged
spending plan for the rest of the trip.
B.
Put it all on the next turn of the wheel or luck of the
draw.
C. Spend it all on shows, restaurants, and spa
treatments before you leave town.
When shopping at your favorite store, you
spot the perfect pair of pants. They suit you
to a T! Only one problem: they are way out
of your budget. What do you do?
A. Mutter under your breath about the store's
outrageous prices and wait for the pants to go on
sale.
B.
Buy them before your conscience says no. Plastic is
power!
C. Buy them, agonize over your purchase all night
long, and then take them back the next day.
Good news arrived in today's mail! You
have inherited $10,000 from crazy old
Aunt Minnie, whom you have never even
met. You:
A. Increase your pre-tax contributions to your
retirement plan.
B. Start booking your vacation to Tahiti.
C. Put it in your checking account to pay bills.
When it comes to saving money, you:
A. Have set up a system that works for you.
B. Can't do it to save your soul.
C. Make (and break) a new savings plan every
other month.
Honestly, how do you drive your car?
A. Cautiously and safely-you are a defensive
driver.
B. Quickly and aggressively-you don't let anyone
get in your way.
C. Anxiously and hurriedly-there are a lot of crazy
drivers out there.
If you could choose any one of the
following occupations, regardless of
income, it would be:
A. Supreme Court Justice.
B. Stuntwoman.
C. Best-selling poet and novelist.
Regarding money, your best wish for your
children is that:
A. They have a good education. They'll need to
work hard to find a good profession.
B. They learn to control their spending.
Someone's got to.
C. They have good luck. That's what it really takes
to make it in this world.
Money-wise, what do you look for in a
mate?
A. A stable income and a conservative investment
style.
B. A hot car in his driveway and a lot of shiny
plastic in his wallet.
C. A lack of concern for material things.
When you think of your retirement, you:
A. Hope your investment plans work out.
B. Can't wait for the party to begin-I hear the
weather is lovely in Florida this time of year!
C. Cross your fingers, close your eyes, and begin
to pray.
Your worst money problem is your:
A. Procrastination.
B. Shopaholic tendencies.
C. Lack of financial education.
Your worst fear about money is:
A. A tremendous stock and real estate market crash
reducing your net worth by 90 percent.
Being awakened by the sound of creditors
underneath your bedroom window, baying for
blood.
B.
C. Realizing that you are 55 and have no assets other
than your car.
If asked how much is in your bank account
right now, you'd say:
A. "Do you want me to include the outstanding
checks not yet posted to the account?"
B. "I'm not sure of the exact balance."
C. "I hope I didn't bounce any checks this week."
When you get a bank account statement,
you:
A. Check it over very carefully.
B. Toss it in a drawer and assume the company
must be right.
C. Give up trying to figure it out after a few
minutes.
A quality that you admire in yourself is:
A. Punctuality-you're always on time.
B. Vivacity-you're the life of the party.
C. Spirituality-you're not a money-grubber
The reason you don't have as much money
as you want is:
A. You're too cautious. You miss out on great
investments because you don't want to take a
risk.
B. You throw it away. You keep buying things you
don't really need.
C. You're not really sure why you don't have as
much money as you want.
Guests are arriving for Thanksgiving dinner
in one hour. In the kitchen, you're:
A. Organized, fast, and clean-everything's in the oven
already and you just setting up a few last minute
details.
B.
Frantic, messy, and creative-you're trying to perfect
a new recipe you created just for this occasion.
C. Disorganized, frustrated, and slow-you know that
the turkey is around here somewhere!
When entertaining, you like:
A. Well-planned parties for your monthly dinner
group.
B. Spontaneous bashes with a few hundred of
your closest friends.
C. Informal get-togethers with friends in the great
outdoors.
Your attitude toward life is best summed up
with the phrase:
A. A stitch in time saves nine.
B. He who laughs last laughs best.
C. Ignorance is bliss.
When tipping in a restaurant, you:
A. Tip in accordance with the quality of the
service. You reward good servers and punish
bad ones.
B. Tip lavishly. You expect to get the best service
in the house next time.
C. Tip well even if the service is mediocre. You
don't want to embarrass the server.
What you don't know about money:
A. Can be learned.
B. Can't hurt you.
C. Will catch up with you one way or another.
1.
Count the number of As, Bs, and Cs
1. Majority As=Hoarder
2. Majority Bs=Splurger
3. Majority Cs=Avoider
Hoarder
• Saver
• Doesn’t
take risks
• Worry
about
money
Splurger
• Retail
Therapy
• Likes
credit
cards
• Hates
being
restricted
Avoider
• Fear of
money
• Ignore the
issue
• Not
inclined to
keep
records
Living on campus
experience
• All one bill
• You may not
even pay the bill
• Parents might be
taking care of it
• You might be
taking care of
with loans
This is the time to
develop effective
money strategies
• Try to live on a
budget
• Track how much
you spend
• Pay credit cards
off every month
Try to be saving
money at this time
• Eating at home is
cheaper than
going out
• Shop around for
items
• Compare prizes
• Develop the
habit of putting
some money
away every
month
Student Loans
• Keep good records
• Consolidate when
possible
• Loan calculator
Insurance
• Car, Renters/Home,
Life, Health
• Shop around!
• Combine when you
can
• Health:
• Through employer
or personally
• Pieces are optional
Cost of Living
• CNN Money
• salary. com
Gift Planning
• Easy to forget,
important to
remember!
Unanticipated
Expenses
• Keep enough
money in your
checking
account to
cover at least
three months
of your
expenses
• Credit Cards
Real
money
Credit
Cards
Cold hard cash
Get a monthly
bill
Easier to
spend? Harder
to Spend?
Get charged
though when
you don’t pay it
off
Credit card
debt is bad
debt
Debit
Cards
Taking out of
your bank
account
“immediately”
Finding a bank
Online Banking
• Is there an ATM
close you?
• Is there an actual
bank close to
you?
• Weigh the pros
and cons
• Benefits
• Fees
• Movingnational
locations?
• Learn it.
• Saves you time
and money (NO
STAMPS)
• For reoccurring
bills
• Electricity,
credit cards,
cable, internet
Unexpected Paper
Bills
• Medical bills
• Deductible
• Magazine
subscriptions
Stocks, over the long term=
Stocks, short term=
Risky investments pay more (Think “is this too good to be
true?”)
Diversification is important
Invest early if your company offers it
*http://money.cnn.com/magazines/moneymag/money101/lesson4/
Planning
• Difference
between
worrying and
planning
• Puts you in
control
Saving
• Aim for 10%
Living
within
your
means What does
that even
mean?
• "Money does seem to meet our
needs in the short term. It buys us
food, shelter, vehicles, and
experiences. It does not, however,
meet any of our deeper, long-term
needs....“ Dr. Richard Swenson
• "Possessions are to be used, not
loved”
• The answer... Contentment
Swenson, R. A.(2010). Margin: Restoring emotional,
physical, financial, and time reserves to overloaded
lives. Colorado Springs: NavPress
Always
overestimate
Keep it
flexible
Be patient
with yourself
 The Unexpected Bill
• You are driving to work on a beautiful Monday
morning. The radio’s playing E.T. and top’s
down on your convertible. Out of the blue, a
noise that you’ve never heard before emanates
from under the hood of your car. Within minutes,
your engine’s smoking and it’s obvious that your
baby needs some TLC. You take the car in for a
check-up and the mechanic says the repairs will
cost over $900. As a wise and knowledgeable
money manager, what do you do?
 Bonus
Question
• You’re at work on a beautiful Tuesday morning
and you get a surprise call from your boss
asking you to drop by her office when you get a
minute. Not knowing exactly what she wants, you
quickly find a minute to spare. To your delight,
she tells you that you’ve single-handedly turned
the company around and have a healthy bonus
coming your way. As a self-controlled and
disciplined money manager, what do you do?
Leah
Smith
[email protected]
Meghan
Oster
[email protected]