Money Management 1
Dec 31, 2015
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Money Management Proper Money Management is necessary so that you
have the money to invest.
Here are some facts…
In 2013, American consumers carried about $11,285,000,000,000 in consumer debt.
Credit card debt alone averages $15480 per household.
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Money Management In 2014, there
were over 1.2 million personal bankruptcies filed.
2% are age 25 and younger who started their lives in financial failure.
20% are age 55 or older.
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Money Management
Here are some more facts…
Teens are more likely to have a cell phone (74%) than a savings account (60%).
Only 7% of teenagers balance their check book, even fewer save regularly.
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Money Management
And more facts…
A majority of Americans in
households with incomes of $35,000
or less believed that they are more
likely to accumulate a $500,000 nest
egg by winning a lottery or
sweepstakes (40%) than by patient
saving and investing of relatively
modest sums (30%).
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And more facts… Household money management is one of the
most common sources of disagreement in marriages. One USA Today article reported that 70 percent of married couples argued about money issues, with the use of credit and shopping and spending habits topping the list.
Only 5% of adults learned about vital money management skills in high school.
Money Management
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Top 3 Environmental Causes of Stress (out of 63 stress triggers)
1. Financial Problems - Lack of money, debts, credit card payments, mortgage, rising costs of education, etc.
2. Workplace Stress – Your boss, up-coming promotion, office politics.
3. Personal Relationships – Children, relatives, arguments with spouse or children, etc.
Money Management
Source: Study by Thomas H. Holmes and Richard H. Rahe, from the University of Washington
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Individuals surveyed put themselves in one of four financial categories…
1. Wealthy
2. Financially Comfortable
3. Paycheck-to-paycheck
4. In Debt
Source: Merrill Lynch Survey 2009
Money Management
5%
26%54%
15%
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Personal Budget Categories:
Income
- Fixed Expenses
- Savings and Investments
- Variable (Living) Expenses
Cash Shortage or Surplus
Money Management