HERE’S WHAT: Money management today matters for your tomorrow

Startling Stats: Results from the FINRA Foundation’s 2012 State-by-State Financial Capability Survey reveal that:

Fewer than half (41%) of Americans surveyed reported spending less than their income. Over a quarter (26%) reported having unpaid medical bills. More than half (56%) do not have rainy-day savings to cover three months of unanticipated financial emergencies.

Over a third (34%) reported paying only the minimum credit card payment during the past year.

On a test of five basic financial literacy questions, the national average was 2.88 correct answers.

[FINRA Investor Education Foundation, FINRA Foundation Releases Nation's State-by-State Financial Capability Survey, May 29, 2013, http://www.finra.org/Newsroom/NewsReleases/2013/P268095, http://www.usfinancialcapability.org/]

So What? “Your money and how you manage it are some of the most important things in your life, since they influence where you live, what you drive, and almost everything you do. Therefore, it is very important that you manage your money properly.”

-Andy Hough, US News & World Report

DISCUSSION

HOW DO YOU SPEND YOUR MONEY?

As a class or in groups, share three ways you primarily spend your money.

HOW DO YOU GET YOUR MONEY?

As a class or in groups, list on the board any ways you earn/receive money.

Savings/Spending Success Strategies •Save 10% of every bit of money you get

• Create a spending plan – Having a plan helps you avoid credit card debt

Sample Spending PlanDescription Income (+) Expense (-) $ Available

Part-time job $215.00 $215.00

Allowance from parents $20.00 $235.00

College fund $25.00 $210.00

Cell phone bill $40.00 $170.00

Snack money $20.00 $150.00

Savings for a used car $50.00 $100.00

Entertainment $35.00 $65.00

Time IS money•Understand the time value of money – “The time value of money refers to the relationship among time, money, and rate of interest.“ [ecampustours.com, five basic personal finance lessons every high school student should learn, July 31, 2013, http://www.ecampustours.com/for-students/college-planning/outside-the-classroom/five-basic-personal-finance-lessons-every-high-sch.aspx#.VDRW96Pn_g8]

• Begin saving/investing your money as soon as possible so it has more time to accrue interest.• Save/invest as much as possible as your current budget allows (and make

adjustments as your situation changes).• Opt for saving/investing avenues that offer higher rates of interest.

Now What? What can some next steps be for you?

◦ Who in your Seminar class currently has a job?◦ Who has already started applying for scholarships?◦ Who knows what kind of a part-time job they want to get?

Investing time now could pay off later.

Shop around! – Hunting for bargains can pay off in the long run◦ Talk with an elbow partner/as a class about various ways to save

money

START applying for scholarships NOW! Check out the scholarship listings on lctigers.com, college and career tab, or on your Naviance account.

Helpful Hints as you look toward college:

Compare college costs, graduation rates, loandefault rates, average monthly loan payments, and employment prospects by using the "College Scorecard" at collegecost.ed.gov/scorecard.

HomecomingFriday, October 24:

Roar Rumble Rally Tailgate Party- 6:00 p.m. @ Joe Albi Stadium◦ Visit www.lcseniors.org and click on the “Fundraising” tab to purchase tickets.

$10/adult and $5/student All LC families are invited!

Homecoming Football Game- 7:30 p.m. @ Joe Albi Stadium

Saturday, October 25:

Homecoming Dance- 8:00-11:00 p.m. @ LC Field House◦ “Dancing in the Rain” tickets are on sale this week in the main hall. $25/couple and

$15/single. Don’t procrastinate because ticket prices double if you try to buy them at the door!