2. Writing Prompt Write one paragraph about the kind of
lifestyle you would like to have when you retire. Include ideas on
how much you think it will cost to maintain this lifestyle. (Do you
want to live on the amount of money you have been used to, more
than they are used to, or less then they are used to?) Write a
second paragraph on where their income will come from after
3. How much money will you need when you retire? Many people
stay healthy and active for 20 years or more after they retire. If
you start planning and investing soon enough, you can spend those
years enjoying yourself instead of worrying about paying the
4. How much money will you need when you retire? One of the
basic sources of retirement income is Social Security. Social
Security Benefits Calculator Could you live comfortably on Social
Security benefits only?
5. How much money will you need when you retire? How do you
react to those you say,Ill just live on Social Security.
6. How much money will you need when you retire? What are the
eligibility requirements to receive Social Security? What is the
difference between a traditional IRA and a Roth IRA? What is the
difference between a 401(k) and a 403(b).
7. Other sources of retirement income:Pension plans 401(k),
403(b) Traditional IRA Roth IRA Keogh plan Social Security
8. Interactive Game
9. Planning for retirement is your responsibility! Traditional
employer-funded retirement plans are disappearing. Social Security
benefits may not insure a comfortable lifestyle. Without a
retirement plan, you could face a future of financial uncertainties
10. Compound Interest Interest which is calculated not only on
the initial principal, but also the accumulated interest of prior
11. Would You Rather Have, AMillion Dollars Today, Or APenny
That Doubles Every Day For Thirty Days?
12. I Hope You Chose The Penny!
13. Albert Einstein was so impressed with the principle
ofcompounding that he said
14. It is the greatestmathematicaldiscovery of all time.
15. IN 2009$121,96,709,346.21
16. Figure out Compound Interest $300, 4% interest, 3 years How
much interest?Beginning of Year 1 $300 $300 x. 04 + 12 $12 $312 End
of Year 1
17. Figure out Compound Interest $300, 4% interest, 3 years How
much interest?Beginning of Year 2 $312 $312.00 x. 04 + 12.48 $12.48
$324.48 End of Year 2
18. Figure out Compound Interest $300, 4% interest, 3 years How
much interest?Beginning of Year 3 $324.48 $324.48 x. 04 + 12.98
$12.98 $337.46 End of Year 3
19. Figure out Compound Interest $300, 4% interest, 3 years How
much interest? Total $337.46 -Principal -300.00Total Interest
20. Figure out Compound Interest$100, 2% interest, 3 years How
much interest? Year 1: $100 at 2% = $2 $100 + $2 = $102 Year 2:
$102 at 2% = $2.04 $102 + $2.04 = $104.04 Year 3: $104.04 at 2% =
$2.08 $104.04 + $2.08 = $106.12 (Total) $106.12 (Principal) $100 =
21. Rule of 72 Tells you how long it takes your money to double
in value. Divide 72 by the interest rate to determine number of
years to double. Divide 72 by years to determine rate needed to
double your money in a given time period.
22. Try It! Apply the Rule of 72 to Find the Time or Rate
Assume you can earn 6% on your money. How long will it take $100 to
grow to $200? 72 6% = 12 years
23. Try It! Apply the Rule of 72 to Find the Time or Rate If
you have $200 today and need $400 in eight years, what interest
rate do you need to earn?72 8 years = 9% interest
24. The key is toSTARTEARLY!
25. Assessment Create a childrens story promoting saving.
26. AssessmentAnswer each question then share you answers with
the class in the form of a role play.3. Norma is considering buying
a certificate of deposit with the $500 she has in a regular savings
account. Explain to her what factors she could consider when
choosing a certificate of deposit.
27. AssessmentAnswer each question then share you answers with
the class in the form of a role play.2. You were visiting your
Grandpa and you happened to find $5000 stashed in an old shoe box.
He told you that he had been saving this money for over 20 years.
a. Explain to him other options he has. b.Explain and demonstrate
the principles of compounding interest.
28. AssessmentAnswer each question then share you answers with
the class in the form of a role play.3. Your friends, Jim and Joey
(16) are twin brothers and just received a $1000 inheritance from a
wealthy aunt. Jim wants the two of them to put their money together
and buy a 4- wheeler. Joey says he wants to put his money in a
savings account. Jim comes to you to ask you to help persuade Joey
to buy the 4- wheeler. What is your best financial advice?
29. AssessmentAnswer each question then share their answers
with the class in the form of a role play.4. Youve been working for
a while, but your sister just got a job and is excited to have some
of her own spending money. Money burns a hole in her pocket and you
need to give her some ideas on how to save some money.
30. Lets Wrap It All Up and Play Savings & Investment Fly
31. Future Compounding Rule of 72 Value InterestCertificate of
Education Quarterly Deposit (college) Interest True 9 years False
Principal Shorter Savings 12 years Emergency Account