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One Step Closer To Personal Wealth

Presented by

Tchasky Mentor

My Brother’s Keeper 2020/2021 Fellow

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What is Financial Literacy?

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  • To be able to understand how money works,and how to save it.
  • To be capable of making better and financially wiser choices with money.

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Why is Financial Literacy important?

  • Emergencies
  • Generational wealth
  • Post Retirement lifestyle
  • Business opportunities or financial freedom.
  • Let your money make money for you!

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Poll #1

Do you have a weekly or monthly budget plan in place?

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Budget

  • A smart plan on how to pay your bills.
  • Income - The money you bring home from your job.
  • Expenses - The money you spend on goods and services.
  • Your expenses should not be greater than your income.

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Fixed Expenses

  • Rent
  • Electricity
  • Transportation to and from work
  • Meals
  • Car Payments
  • Credit Cards

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Sample Budget Breakdown

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Saving and Checking Accounts

Saving accounts

A saving account is a safe place to put your money while it gains interest.(which is less than 1%)

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Checking accounts

A place where you can access your money easily for everyday purposes.It is directly connected to your bank account .

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Credit vs Debit Cards

Credit Cards

A form of borrowing money from your bank . If not paid on time you will have to pay it with interests.

  • Help with your credit history
  • You are able to make big purchases easier
  • It forces you to be responsible because you must make ontime payments

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Debit Cards

  • It uses directly the money from your bank account. No cash needed for purchases
  • Useful for everyday purposes
  • The amount you can spend is equal to what you have in your bank account.

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Poll #2

Do you know your Credit Score?

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Why is Your Credit Score Important?

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  • Helps banks and other lenders of money to determine your trustworthiness in paying your bills.

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  • It determines your interest rate on new loans.

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  • A good credit score makes it easier to receive loans for college for your children, make car and home purchases.

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  • Employers also check credit scores of potential employees before hiring.

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  • Some landlords request certain credit scores from their prospective tenants.

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What’s a Credit Score?

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Credit Score – a number that is assigned to you based on how reliable you are at paying your bills on time.

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What is a Good Credit Score?

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  • 700 or above is considered a good credit score
  • 620 or above is needed for most mortgages

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Poll #3

What is a stock?

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What is a Stock?

  • It’s another way to make money

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  • A stock is a share in the ownership of a company.

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  • When you buy stock you become part of the ownership of the company and you receive a share of the company’s profits.

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Financial Investments

  • Stocks /Bonds(Amazon, Facebook , Coca Cola)
  • Real Estate

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Important Ways To Save Money

  • You must cut costs when necessary so that your expenses are not greater than your income and you are able to save some money
  • Easy ways to save include unplugging phone chargers and other items not used continuously
  • Fix leaky pipes and toilets
  • Use free GoodRx cards to save on prescriptions
  • Use coupons in the supermarket when buying groceries.
  • Cook at home instead of eating out in restaurants.

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Have A Second Job You Control

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Conclusion

  • It is important to save your money.
  • Let your money work for you.
  • There are many ways to invest your money.
  • Know your options for saving money and make smart decisions.
  • Your expenses must never be greater than your income.

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