National Association of Black National Association of Black Accountants, Inc.Accountants, Inc.

M ney M ney $$enseense Managing Money for Youth

Sources of IncomeSources of Income

AllowanceAllowance Gifts Gifts Baby sittingBaby sitting Summer jobSummer job ScholarshipsScholarships Other people’s moneyOther people’s money Starting a businessStarting a business

Realize Your Full Earning PotentialRealize Your Full Earning Potential

Am I satisfied with the

amount of money I

currently have or make?

Higher Learning Higher EarningsHigher Learning Higher Earnings

Education LevelEducation Level Annual EarningsAnnual Earnings Lifetime EarningsLifetime 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 MoneyTraditional Way to Earn MoneyStrong GPA

Scholarship Opportunities

College of Choice

Employment Opportunities

Career of Choice

Desirable Starting Salary

Who’s Really Making the Money?Who’s Really Making the Money?

AT&T’s House

Your House

$$$

Who’s Really Making the Money?Who’s Really Making the Money?

Fixed monthly minute Fixed monthly minute planplan

Text messageText message Downloads Downloads

Ring tonesRing tones Images (screen Images (screen

savers)savers)

Internet useInternet use

AT&T’s House

OwnershipOwnership

Investor mentalityInvestor mentality Stash your cashStash your cash

Cash Flow EquationCash Flow Equation

(+) Revenue or Source of Income(+) Revenue or Source of Income

(-) Less: Expense or Use of Income(-) Less: Expense or Use of Income

__________________________________________________________

(=) Net Cash Flow(=) Net Cash Flow

Where Does Money Go?Where Does Money Go?

Cell phoneCell phone MoviesMovies Video gamesVideo games Food Food Clothes (Hats, Shoes, Jeans)Clothes (Hats, Shoes, Jeans) Cosmetics (Hair & Nails)Cosmetics (Hair & Nails)

$$$

$

$$

$

How You Play the Money GameHow You Play the Money Game

Are you playing to get ahead?Are you playing to get ahead? Are you playing to come out even?Are you playing to come out even? Are you going for broke?Are you going for broke?

Set Savings GoalsSet Savings Goals

End of each school year?End of each school year? At beginning of senior year?At beginning of senior year? After college graduation?After college graduation?

ConsistencyConsistency Open an institutional accountOpen an institutional account

Give Your Savings a BoostGive Your Savings a Boost

InvestInvest Grow it fasterGrow it faster Seek assistance Seek assistance

• Money coach/mentorsMoney coach/mentors• Help keep you on trackHelp keep you on track

Rule of 72 ExerciseRule of 72 Exercise

Investment Type

ROR 6 Yrs 9 Yrs 12 Yrs 18 Yrs 24 Yrs

3% x

4% x

6% x

8% x

12% x

$100 Today. Goal = $200.00

List of ResourcesList of Resources

ONLINE RESOURCES www.MyMoney.gov www.BankingonourFuture.org

BOOK RESOURCESBOOK RESOURCES Raising Money Smart Kids: What They Need to Know Raising Money Smart Kids: What They Need to Know

about Money and How to Tell Them (Kiplinger's Personal about Money and How to Tell Them (Kiplinger's Personal Finance) by Janet BodnarFinance) by Janet Bodnar

The Kids' Allowance Book by Amy Nathan and Debbie The Kids' Allowance Book by Amy Nathan and Debbie PalenPalen

Thank You!Thank You!

National Association of Black Accountants, Inc.National Association of Black Accountants, Inc.

M ney $enseM ney $ense

For more information visit www.nabainc.orgFor more information visit www.nabainc.org

NABA - Money $enseNABA - Money $ense