
Current Personal Finance Education
- Change the thought Process of personal finance
- When you hear personal finance what do you think of?
- Where do you get your financial questions answered?
- Typical student case Study
- How much debt & approximate income
- avoiding big expenses when starting to make money
Financial Language/Terms
- Net Worth, Cash Flow, rate of return, time-value of money, compounding interest,
Inflation, tax deduction, Tax Free, Tax Deferred Growth, Stock, Bond, Mutual Fund,
Interest Rate, Diversification, Fixed Income, Liquidity, Principal
Benchmarking - Budget vs. Cash Flow (spending less then you earn; building wealth)
- create good spending habits
- identify where your money is going
- set some goals on where adjust cash flows
- track your cash flows to maintain path to goal
- Why Budget? (can you afford your life)
- How People Budget? Purpose of Budget?
- Guidelines/Benchmarking
- Goals
- Short Term next 1-2 years, Medium Term 2-10 years, Long Term 10+ years
Debt Management (know your personal net worth)
- How banks make money
- Borrowing money the right way
- Renting vs. Owning (spreadsheets)
- Total cost of owning a car (spreadsheets)
- Cost of raising a child (spreadsheets)
- Total Cost of Moving (Spreadsheets)
- planning for a wedding
- School loans
- 6 month deferral option, Low interest rates, interest paid typically tax deductible
- Total Cost of Borrowing, is it worth it?
- paying off debt vs. Saving (have an emergency fund)
Tools – (how to equate your personal finance position)
- Cash Flow spreadsheet
- CM3 Score
- (Lifetime Earnings/Net Worth) = Wealth Score
Asset Development/Investing (make money work for you)
- Compounding Interest
- Time Value of Money
- If you have a dollar today, it is worth more than having a dollar next year
- Beating Inflation
- Protecting against taxes
- Average Returns vs. Actual Returns
- Not what you average but how you got there
- Investing the same dollar amount over a specific time frame
Investments
- Different types of Investments
- Different Investment Vehicles
- Social Security
- Economics and how it affects your investments
- Valuating potential investments
Insurance (be prepared for the unexpected)
- You work hard to build a financial foundation, protect it
- Financial Planning Pyramid
- Income Protection
- Asset Protection
Income vs. Wealth
Our goal is to Educate, Empower & Equate an individual’s ability to handle their financial future
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Capital Movement Core Curriculum