Financial Planning
Goals that are Specific, Measurable, Attainable, Realistic and Time-Bound
What are SMART Goals
Money set aside for short term and some long term goals
What is Savings?
When someone is willing to loan you money because you promise to pay it back
What is credit?
A plan to help you achieve your financial goals usually composed of categories and percentages allocated to the categories.
Ex- Needs 50%
Wants 30%
Savings/Tithing 20%
What is a Budget or Spending Plan?
A financial contact that protects you from losses. In exchange for a fee you receive compensation from covered events like, an accident, theft, or illness.
What is Insurance?
Expenses that are essential for you to live and work.
Examples: food, clothing, housing, transport etc.
What are needs?
Expenses that are essential for you to live and work.
Examples: food, clothing, housing, transport etc.
Money set aside for future income, benefit, or profit to meet long term goals.
What is investing?
The amount you pay to use someone else’s money
What is Interest?
Fees placed on income, property or goods to support government programs.
What are Taxes?
The money you pay to an insurance company in exchange for protection and help.
What is an insurance premium?
Things you buy for fun or leisure.
Examples- travel, entertainment, Starbucks/Dutch Bros Drinks.
What are wants?
Earning interest on interest
Tells lenders how good you are at managing borrowed money.The higher the score the better (range is from 580-800+)
What is a Credit Score?
The money you have coming in.
What is income?
The amount you must pay out of your own pocket before the insurance begins to reimburse you.
What is a deductible?
The patience and willingness to give up something you want not for something better later.
Bonds, stocks, mutual funds, exchange traded funds (ETFs)
What are types of investments?
Access to funds in an emergency, safety and convenience, the ability to use it now.
What are some advantage of using credit cards?
If you are spending more than 50% of your income on your needs.
What is living outside my means?
Previous accidents/tickets, cost of repairs for the vehicle you drive, age, gender, mileage driven.
What are factors that can affect your car insurance rates?
The feeling that buying the newest, latest, and greatest gadget, face mask, or clothes is key to a happier life.
What is Consumerism
Spreading out your money across different investments in case one doesn’t do well.
What is diversification?
When you are charged a very high interest rate on any balances and late charges on top of that (the current average interest on a credit card is 20.10%)
What is missing a credit card payment?
A recommended % for things you are buying that are fun.
What is 30%
Liability, collision, medical payments, uninsured motorist.
What are types of car insurance coverage?