Either learn to mange money and do it.... or the lack of it will manage you!!
Compound Interest:
Last month Dave explained compound interest. If you get nothing else from this course, I hope you will at least understand how compound interest works. Watch these videos and explain compound interest and why it is called a mathematical EXPLOSION!
Dave Ramsey's Explanation
Penny a day vs. a million dollars: which would you choose?
Kahn Academy Explanation
Consider the following and write your answer. Be prepared to discuss:
Why are people not saving in todays society?
As you get older and begin making money, or if you are already making money, how much do you plan to save?
If someone gave you $5,000.00 today, how would you put it to use?
What sacrifices are you willing to make to save money? Why do you think the sacrifices are worth it?
Name an item you wish to purchase in the near future and your goal for buying it with cash.
Read the following case studies and what you would tell the following individuals if you were their financial counselor.
Mark has just received $10,000 from a bonus at work. He currently has $7,500.00 in credit card debt. The car he currently drives is costing him quite a bit in monthly repairs. He figures he can buy a nice car and put the money that he saves on monthly repair bills towards his credit card debt it off. What would you tell Mark to do?
Diane is about to get a $200.00 per month raise. She wants a new television set and DVD player and would also like to do some home repairs with the extra money. She has $500.00 in her savings account and figures with her raise she can accomplish her purchases and repairs easily within a few months. She also has $1000.00 in credit remaining on her credit card that she can use and is considering using the credit card to buy it all now. What would you tell Diane in this situation?
A sign of maturity is when we stop doing what feels good and we make decisions based on sound principles. Explain what this means in regards to financial decisions. (Discipline and consistency vs. immediate gratification)
Two articles to read:
We Buy Things Based on Emotion
Stuff-itis
Master Book:
So, this month there isn't really a "master class", but I would like to encourage you all to read this book!! We talked last month after we read "The Power of Positive Thinking" and concluded that the world can be dark and heavy, and the weight of today's issues are causing some pretty bleak outcomes: depression, hopelessness, etc. I love the idea of us all being armed with tools; effective tools to combat the darkness. That's exactly what this book is about. Jesus Christ is the source of light that will prevail over the darkness.
