I am Responsible For My Financial Future Created by: Maribel Burgos Section:12345 Instructor: Natalia Fofanova University of Houston.

I am Responsible For My Financial Future

Created by: Maribel BurgosSection:12345

Instructor: Natalia FofanovaUniversity of Houston

Table of Contents: Responsibility of My Financial Future

• What is Financial Responsibility• The Fundamentals of Financial Responsibility• How to be financially responsible• Personal Financial Responsibilities

Introduction

My name is Maribel Burgos, and I am a Human Development and Family Studies (HDFS) major. I hope you can reach your financial goals and have financial freedom with the aid of this presentation.

What is Financial Responsibility?The definition of financial

responsibility is:1. The process of managing

money and other assets in a manner that is considered productive and in the best interests of the individual or family.

2. To live within your means and spend less than what you make.

Click image to play

The Fundamentals of Financial Responsibility

• Credit Cards and Debt– Having a credit card to make ends meat is not a good

reason to have a credit card.– Responsible use of a credit means paying the credit

card in full each month.• Acting in Your Own Best Interest– Know the difference between a luxury and necessities

• Paying Yourself First– Spending every dime you earn is irresponsible– A good goal to save is 10% each paycheck

The Fundamentals of Financial Responsibility

• Emergency Fund– Be prepared for the unexpected.– You should be able to support yourself for the next 6

months without an income• Don’t Worry About the Neighbors– Financial responsibility means doing what you have to

do to take care of you and your family.– The neighbors aren’t paying your bills, so don’t let

them dictate your spending habits.• Budgeting– Know where your money is going

The Fundamentals of Financial Responsibility

• Very Personal Definition– Purchase items you know you are able to afford.

Not everyone can live like the rich and famous.

• Arriving at “Responsible”– Financial responsibility means living within your

means, regardless of the level of those means.

When you have money, be smart with it!

Don’t go money crazy, just because you received

a paycheck

How to be Financially Responsible

How to be Financially Responsible

How to be Financially Responsible

TAKE WHAT UNCLE SAM TAKE WHAT UNCLE SAM GIVES YOUGIVES YOU

Tax Deferrals

+401(k)

+403(b)

+Flexible Spending AccountsRoth IRAs

Slide taken from http://www2.tech.purdue.edu/ols/courses/ols364/FINANCIALPLANNING.ppt •This slide makes a great statement to take advantage of Tax Deferrals and Roth IRAs

Personal Financial Responsibilities

• A friend told me that opening up store credit cards are the worse cards to open. – One of my goals would be to close the store credit

card that I have, and never open one up again

• Find a secure job– Post graduation, my goal would be to find a job

that will pay the bills.

Personal Financial Responsibilities

• Being a college student equals accumulating debt. – Maybe it’s the high tuition prices or the expensive

books, but student=broke. – Another goal of mine would be to pay off debt.

• Start SAVING!– My ultimate goal would be to save $10 dollars a week.

• Leave my savings alone– In order to secure my financial future, I need to break

my habit of touching my savings.

Lifestyles of the Rich and Famous

Suze Orman• Personally acclaimed financial expert. • I like to follow the guidelines of Suze, in order to be

financially responsible in the future.• Author of The Money Book for the Young, Fabulous &

Broke• Check out her show Can I Afford It? Refer to video link

Suze OrmanSuze Orman – Can I Afford It?

References• http://www.investopedia.com/articles/pf/09/financial-responsibility.asp• http://www.investopedia.com/articles/pf/09/financial-responsibility.asp?viewed=1• http://media.cnbc.com/i/CNBC/Sections/CNBC_TV/CNBC_US/Shows/_Documentaries

_Specials/IAM_CNBC/CNBC_ANCHORS/S_Orman/orman_Bio.jpg• www.pastemagazine.com/.../money%20large.jpg• www.blogs.nyu.edu/blogs/mj11/businessofart/money.jpg• www.economicpopulist.org/.../money_tree02.jpg• http://admin.moguling.com/Upload/www.oprahsschool.com/oprah%20winfrey.jpg• http://i.dailymail.co.uk/i/pix/2006/09/pdiddy080906_228x297.jpg• http://img.thisismoney.co.uk/i/pix/2007/12/ParisDiamonds_203x150.jpg• http://www.cosmoloan.com/wp-content/uploads/2009/08/athlete-cars.jpg• http://media.herald-dispatch.com/blog/tuned/uploaded_images/John-Rich-in-fur-coa

t-737520.jpg• http://www.babble.com/CS/blogs/famecrawler/beyonce-marriage-confirmed.jpg• http://www.hotelsoftherichandfamous.com/images/layout/burf-al-arab-rolls.jpg• http://twistedsifter.com/wp-content/uploads/2009/09/lifestyle-of-the-rich-and-

famous.jpg• http://www2.tech.purdue.edu/ols/courses/ols364/FINANCIALPLANNING.ppt• http://www.youtube.com/watch?v=NkVecOtB9Iw

• “Take a close look at your financial situation, evaluate your earning and spending habits, and make the necessary adjustments to put yourself on responsible financial footing.” – Lisa Smith

• I hope this presentation gave you an insight on how to be responsible for your financial future and how I plan to be responsible for mine.