Taking Control of Yourself
 

Methods for taking control of forces outside yourself

Summarize Some of the Main Points in the
Video on Personal Finance
 

The video breaks financial planning into four parts.  Place the following in the correct order in the green area to the right: Set goals      Analyze     Develop a plan     Know the basics
Provide an example of saving a specific amount monthly, within a compound interest rate, which can earn you a million dollars.	Monthly Savings Compound Interest Rate Number of Years
List the major items on a student's income statement.  Then discuss which items on a student's income statement needed rearranging, so that savings could be obtained.
Describe an appreciating asset for which paying interest may be acceptable. Describe a depreciating asset for which paying interest should be minimized.
What are the respective amounts of money which can be earned by high school graduates, by college graduates, and by professionals during their lifetimes?
The video suggests that short term goals last _____ year(s) into your future; medium term goals should be achievable in ____ years; long term goals have a time frame that begins in _____ years.
List the three allies you have in arriving at your goals. List the three enemies you have to overcome in arriving at your goals.	Allies   Enemies

Label the rungs in the investment pyramid.  Which rungs have lower risk; which have higher risk?

Class Activities

B.  Diversifying one's assets is an important means of reducing risk. Some risk is associated with age, that is, with the inability to recoup losses after one's earnings years pass.  The second handout suggests that based upon one's age, most people eventually move from higher allocations of risk-based stocks to higher allocations of bonds and cash.  You'll use this handout called the "Life-Cycle Investment Guide" during Module 13.1 also.