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Money, Credit, and Retirement

By Emily Stanich and David Barlow

Money

How Money Works

• Earning: Salary, investments, and business income.
• Spending: Purchasing goods, services, and paying bills.
• Saving & Investing: Building wealth through savings accounts, stocks, and other assets.
• Borrowing & Lending: Credit, loans, and borrowing money to finance major purchases.

Explanation:�Money moves through various stages in our lives. Understanding how to manage it effectively is key to financial security.

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Money

The Role of Money in the Economy

• Facilitates Trade: Money allows for easy exchange of goods and services.
• Drives Growth: Investment in businesses and infrastructure fuels economic development.
• Wealth Distribution: Governments use taxes and welfare programs to redistribute money and address inequality.

Explanation:�Money is the engine that powers the global economy, driving both local markets and international trade.

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Money

Managing Money Wisely

• Budgeting: Track income and expenses to avoid overspending.
• Saving: Set aside money for emergencies and future goals.
• Investing: Grow your wealth over time through stocks, bonds, and real estate.
• Avoiding Debt: Be mindful of borrowing money and the long-term costs of interest.

Explanation:�Financial literacy is essential for managing money and building wealth responsibly.

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Money

The Psychology of Money

• Emotions & Spending: People often make financial decisions based on feelings rather than logic.
• Scarcity vs. Abundance Mindset: How our beliefs about money affect our financial decisions.
• Money & Happiness: Research shows that beyond a certain point, more money doesn't necessarily lead to greater happiness.

Explanation:�Our relationship with money is not just about numbers—it’s influenced by emotions, culture, and personal beliefs.

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What is Credit?

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The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

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How Can You Earn Credit

Credit can be earned in many different ways, the easiest way is to apply for a credit card. By paying the card of monthly you earn credit with the bank. You need to pay a minimum of 15 dollars a month, so you need to atleast make small purchases on the card. The more you spend and pay off the card the more credit you make.

How To Know What Your Credit Is

Your personal bank will score you on your credibility. This is called a credit score. Most banks have a website or a mobile app, that allows you to check and monitor your credit score.

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Credit Score Ranges -

Why Credit Is Important

High credit is important because it enables you to buy necessities.

High credit shows the bank that you will pay off your debts.

So if you go out and buy a car, the dealership will check your credit score to make sure that you will pay off the car. If you have a high credit score your insurance will also be cheaper than it would be for someone who has a lower credit.

This also applies for a house, loans, etc…

When Should You Retire?

For the U.S. the average age of retirement is 63; however, you can retire at any point, if you have the savings.

The Average savings for retirement

for American households is $87,000.

It is never too early to start saving

for retirement.

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How To Successfully Retire

You want to start saving for retirement early about 15% of your income per year. This will make sure that after retirement you live financially comfortable because if not then you will have to return to the workforce. You need to make sure your savings last you about 30 years.

Thank You!