Savings Behavior (I)

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http://research.stlouisfed.org/fred2/data/PSAVERT.txt http://www.ehow.com/about_4618296_average-retirement-ag e-america_.html http://www.census.gov/prod/2010pubs/ac sbr09-2.pdf http://www.tribbleagency.com/wp-content/up loads/2008/12/the-great-depression.jpg http://library. thinkquest.org/C005121/data/Germany_files/image007.jpg http://www.canadianheritage.org/images/large/21729.jp g http://images.wikia.com/lostpedia/images/0/0e/Safety_ deposit_box.jpg

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Your Financial Future By: Daniel Rock:

Your Financial Future By: Daniel Rock Core Content Topic: Financial Literacy, PL-HS-3.2.1 Students will apply financial management practices, including budgeting, banking (e.g., check writing, balancing a checking account), savings and investments (e.g., advantages and disadvantages of savings accounts, stocks, bonds, mutual funds, certificates of deposit, IRAs, 401Ks) and credit (e.g., responsible use of debit and credit cards, establishing and maintaining good credit, cause and effect of bankruptcy) and explain their importance in achieving short and long-term financial goals. DOK 3 Part I

If you don’t save… who will do it for you?:

If you don’t save… who will do it for you?

If hard times hit… are you prepared?:

If hard times hit… are you prepared?

Think About This… 2009 Median Household Income = $50,221 The average person in the U.S saves 5.8% of their income per year Average U.S. Retirement Age = 62 Average Length of Retirement = 18 years :

Think About This… 2009 Median Household Income = $50,221 The average person in the U.S saves 5.8% of their income per year Average U.S. Retirement Age = 62 Average Length of Retirement = 18 years

Suppose… “Average Saver” starts working at 22 years old & makes $50,221 per yr. Earnings grow 4% per yr. Works until the age of 62 Saves 5.8% per yr. Savings grow 5% per year. :

Suppose… “Average Saver” starts working at 22 years old & makes $50,221 per yr. Earnings grow 4% per yr. Works until the age of 62 Saves 5.8% per yr. Savings grow 5% per year.

The Financial Future for Average Saver with an 18 yr retirement: Savings after 40 years = $290,632 $16,146 per year for living expenses :

The Financial Future for Average Saver with an 18 yr retirement: Savings after 40 years = $290,632 $16,146 per year for living expenses

Will you be able to live off of that amount 40 years from now…:

Will you be able to live off of that amount 40 years from now…

Estimated % of people who wish they saved more… 100%:

Estimated % of people who wish they saved more… 100%

Some people save:

Some people save and some don’t

Your Financial Future depends on how much you save Not how much you spend:

Your Financial Future depends on how much you save Not how much you spend