5/20/15 – BR- Of the 4 savings (investing) options mentioned on page 8 which one are you mostly...

©2012 National Endowment for Financial Education | Lesson 3-5 Plan for Change1

5/20/15 –

BR- Of the 4 savings (investing) options mentioned on page 8 which one are you mostly likely to use? Why?

- Test, grades, etc- Ambassadors and this Saturday.4


To do – Yesterday

• Pick up new book.• Read pp. 3-8• Define: Interest, principal, saving,

investing, windfall• Complete activities 4.1 and 4.2• On page 8, analyze the 4 types of popular

savings options. What is it? Where can you get it? What are the pros and cons of the option


To Do (Today)

• Read pp. 9-11• Complete activity 4.3


Dips in IncomeTeen Income Challenges

• Irregular work hours

• Part-time hours• Low-paying jobs• Seasonal work• Temporary work

More Income Flow Challenges

• Reduced hours• Commission work• Job change• Interruption in work

situation:– Layoff– Fired– Disability leave– Unpaid leave– Military duty– Sabbatical– Personal choice– Incarceration


Preview

Today we will answer these questions:• How will my work situation impact my financial

status?• How do I manage my spending when my income

isn’t predictable?• How can I improve my chances of being hired

and keeping a job?• What is an entrepreneur?

Use what you learn todayto prepare for changes in your job status.


Dig the well before you are thirsty.

--Chinese Proverb


An Offensive StrategyFill your well• Build an emergency fund for a “rainy day”

• Control your debt load

• Have adequate insurance

• Be a valued employee

• Grow relationships rather than burn bridges

• Build a network personal references

• Watch for opportunities for additional income

• Build up skills; keep learning


Dealing with Down Times• Know and plan for the bottom line

– Determine minimal needs– Resist urge to blow the whole paycheck now

• Anticipate dry periods by setting aside money in advance– Average out occasional costs over the long-term– Spread seasonal income out all year

• Have emergency reserve to cover several months of expenses– Use only for emergencies– Make it #1 priority to replenish when dry spell is over

• Consider additional sources of income

• Have long-term savings goals in place so necessary big-ticket purchases don’t sneak up on you


Facts About Unemployment

• Job loss can’t be your fault

• Employer must approve unemployment benefits

• Collect weekly check up to 26 weeks if approved

• Check amount depends on state formula, usually no more than half of average weekly earnings

• Unemployment benefits are taxable income


LACE Up if Losing Your Job• Listen

– Reason for termination– Final instructions about pay and any benefits

• Ask– Assistance to help land another job– Final employee paperwork

• Confirm– Where to send final paycheck and year-end W-2 form– Any unemployment claim

• Elaborate– Inform creditors if challenged to pay bills during transition


Mind the Gap

Never lie

Never blame someone else

Keep learning and growing


7 Super Skills for Any Career

• Effective oral and written communication

• Critical thinking and problem-solving

• Collaborating and leading by influence

• Agility and adaptability

• Initiative and entrepreneurialism

• Accessing and analyzing information

• Curiosity and imagination


Jumpstart the Journey• Part-time or temporary jobs

• Training camps and courses

• Skill and career assessments

• Interview or shadow people

• Professional associations

• Career-related clubs

• Your own business

• Internships and volunteer work


Internships and Volunteer ExperiencePotential Earning Power:• Build skills and accomplishments for your

resume• Relevant work experience• Impressive references• Valuable connections• College credit• Perks• Full-time job


Entrepreneur:

A person who takes the riskto start up and run a new

business

5/20/15 – BR- Of the 4 savings (investing) options mentioned on page 8 which one are you mostly...

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