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Dr. Helen K. Simon, CFP State Farm Financial Literacy Lab April 7, 2011

FIU Employee Financial Literacy Program

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Dr. Helen K. Simon, CFP State Farm Financial Literacy Lab April 7, 2011. FIU Employee Financial Literacy Program. Schedule of Events. April 21 st :Credit & Banking April 28 th : Investing Basics May 5 th : Personal Financial Planning. What Is Stress?. - PowerPoint PPT Presentation

Text of FIU Employee Financial Literacy Program

  • Dr. Helen K. Simon, CFPState Farm Financial Literacy LabApril 7, 2011

  • Schedule of Events April 21st :Credit & BankingApril 28th: Investing BasicsMay 5th: Personal Financial Planning

  • What Is Stress?

    Stress affects most people in some way Its a combination of emotional and physical pressures It almost always involves a feeling you have little control over the situation (s) and/or you just cant finish anything

  • Dealing with StressYou cant deal with it, until you name it!What is causing stress in your life?

  • Leading Cause of Stress?*#1 = FinancesAccording to a poll by LifeCare, Inc.(2005), 23% of respondents named finances as the leading cause of stress in their lives. Financial stress has led the list in many other polls. Just GOOGLE it!Some who name finances as the leading cause of stress cite major purchases they have to make, such as a home or car. Others are stressed by a loss of income, or mounting credit card debt. For some, financial stress will eventuate in bankruptcy. While college students stress over paying for an education, Baby Boomers and older senior citizens find that retirement income can be a major cause of stress.*downloaded from: http://ezinearticles.com/?7-Leading-Causes-of-Stress&id=473303

  • We have become a culture of what we have instead of who we are

  • Happy to help us..

  • CREDIT CARDSTurn from victims into victors!High APRs-Cash Back!Excessive spending -Budgeting tool

  • Resources

    Find the right credit card for you:http://www.bankrate.com/credit-cards.aspx.Check your credit report often!https://www.freecreditreports360.com/freecreditreport/lp/437-dc4c/. Use Quicken:http://quicken.intuit.com/.

  • Be a Frugalista !!People who keep up with fashion trends without spending a lot of money. Frugalistas stay fashionable by shopping through alternative outlets, such as online auctions , secondhand stores and classified ads. They also reduce the amount of money spent in other areas of their lives, such as by growing their own food and reducing entertainment expenses. This is a popular term during recessions. Downloaded from http://www.investopedia.com/terms/f/frugalista.asp?partner=TOD01.

  • SAVY SPENDINGwww.Couponheaven.com. Your credit card www.discovercard.comwww.chaserewardsplus.comOnline bill payingwww.froogle.comThe Sunday newspaper Organized shopping tripsHave your cocktail at homeGrouponFL restaurants run great specials in the off seasonBreakfast is a bargain!

    The Latte Factorhttp://www.wisegeek.com/what-is-the-latte-factorreg.htm. The Millionaire Next DoorDont always think that bigger is better! The warehouse shopping paradoxSometimes Publix BOGO is way better!


    FSA (Flexible Spending Account)Deferred savingsTuition reimbursementDisability insuranceChances of becoming disable pre 65 is 5 Xs greater than dying Life insuranceDo you have enough? Or too much?Discounted Services:http://www.bcbsfl.com/DocumentLibrary/DiscountPrograms/BlueComplementsBrochure_20032.pdf

  • FSA - example45 Zyrtec tablets cost $25 at drugstore.com Thats .55 per pill or $202.78 per year after tax - $ 259.56 before tax dollars = $202.78 in after tax dollars (in the 28% tax bracket) On this one small item, the FSA saves $56.78 per year!

  • Some FSA eligible expenses

  • Some possible FSA eligible expensesIRS publication 969

    Health Insurance deductibles and co-paymentsAdult day careAcne treatmentsBody ScansSunscreenHand SanitizerMedically necessary vitamins (need Rx)

  • How much do you spent per year in FSA eligible expenses?If you are in the 28% margin tax bracket:$500? save $140$1000 ? save $280$2000? save $ 560

  • Retirement Savings403b457Roth IRA

  • Tuition ReimbursementThe best investment you can make is in yourself!Education = higher salaries, better jobs, better quality of lifeYou are NEVER too old or too busy to take a classAnd we can do it for FREE!!!!


    Plan for savings first?How much cash should you keep in your emergency fund?Where should you keep your emergency fund?http://home.ingdirect.com/

  • INVESTMENT MISTAKES Listening to too many financial expertsInvesting in things you dont understandThinking there is a free-lunchThinking you know more than the expertsTaking too much riskUsing insurance as an investment

  • TIAA CREF Investment Results over the last decade (average annual return 12/31/1999 12/31/2009*)Equity Index Fund - 0.56%Growth Fund - 4.66%Bond Fund + 5.84%Fixed Account + 6.62%

    Downloaded on 1/8/2010 from https://www3.tiaa-cref.org/perfview/performance

  • Fixed savings example$10,000 per year in a 403B (in the 28% tax bracket)Immediate tax savings of $2800 $135,706 in 10 years



  • Be a good parent but not too good!Are you stressed out about your childs college education?Have you sacrificed your own retirement savings planning to pay for your childs education?Does your child have a job?Is your child employable?

  • Available on the FIU library or used on Amazon for
  • In closingWhat would you like us to cover?

    Thanks to Kate Kominars for her assistance with this program.