Training Purpose
• To help you plan how to get, manage and use
your money now and in the future so you can
have the life you envision for yourself.
Visual Aid 1.1
Training Goal
• To give you keys to your financial future so you
can be financially independent and financially
capable.
Visual Aid 1.2
Session Titles and Dates
• Module 1: Asset Building: Unlocking the door to longterm benefits
• Module 2: Good Credit: Your score in the game of life
• Module 3: Money Management: Cashing in on financial
success
• Module 4: Education and Training: The power of
knowledge for work and college
• Module 5: Housing: Reality in realty
• Module 6: Transportation: Enjoy the ride
• Module 7: Saving and Investing: Making the change by
keeping it
Visual Aid 1.3
Key Elements of the Workbook
•
•
•
•
•
Quotes
Key Questions
Key Activity
Key Concept
Keys to Your Financial Future Step #
– They are numbered by module and in the order they come within
a module. For example, “Keys to Your Financial Future Step
2.2”would be the second “assignment” in module 2.
Visual Aid 1.4
Tips for Taking the Pre-Training
Assessment
• Answer from your gut. Don’t over think the
questions.
• If you don’t know how to answer, just do the
best you can.
• If you have any questions, just let me know.
• You will have about 10 minutes to complete
this.
• Please be sure to write your name and today’s
date on the top of the form.
Visual Aid 1.5
Visioning Questions
–
–
–
–
–
–
–
–
–
–
What is most important to you?
What do you dream about for yourself?
What do you want to be doing with your time?
What career do you envision for yourself?
Do you plan to run your own business?
Do you hope to have a partner/spouse?
Do you hope to have children?
Do you want to own a home?
Or do you want to travel the world?
What legacy do you want to leave?
Visual Aid 1.6
SMART Goal Framework
• Specific—this means your goals are focused, not
general.
• Measurable—this means that you can tell whether
your goal has been achieved; there is some way to
measure your results.
• Achievable—realistic; goals should be challenging and
cause you to reach, but they should be attainable.
• Results-oriented—written about the end you are
trying to get to
• Timebound—there is a specific time by which the goal
will be reached; they are not open-ended
Visual Aid 1.7
Identify the SMART Goal
SMART
Not SMART
I will save more money.
Not specific
Not measurable
Not achievable
Not results-oriented
Not timebound
I will be healthier.
Not specific
Not measurable
Not achievable
Not results-oriented
Not timebound
I will complete my LPN (Licensed Practical Nurse)
certification by January of next year.
Not specific
Not measurable
Not achievable
Not results-oriented
Not timebound
I will buy a car.
Not specific
Not measurable
Not achievable
Not results-oriented
Not timebound
I will save $1000 in my match savings account
during the next 12 months for a car.
Not specific
Not measurable
Not achievable
Not results-oriented
Not timebound
I will research three apartment options by the
end of this week.
Not specific
Not measurable
Not achievable
Not results-oriented
Not timebound
Visual Aid 1.8
Turning SMART Goals into Savings
Targets Example
SMART Goal
I will save
$1000 for
college
during the
next six
months.





Resources
Money
Needed
Months
to Save
Monthly
Savings
Target
(Money
Needed ÷
Months to
Save)
Optional:
Weekly
Savings
Target
(Monthly
Savings ÷ 4
Weeks)
Savings
account
(Federally
insured)
Identification
to open
savings
account
Income
Budget
$1000
$1000
6
months
$166.67
or $170
$42.50
Visual Aid 1.9
Revising Goals
• Prioritize your goals: some goals may have hard
deadlines; some are most important to your reaching
your vision. Focus on those goal first.
• Find other resources: before saving your own money,
see if there are other resources for the goal.
• Change the time frame: with goals for which there is
no hard deadline, consider changing the timeframe.
This will mean you will reach these goals a little later.
You will also have to save for a longer period of time,
but you will save less each month or week.
Visual Aid 1.10
LaTonya’s Revised Goal
Instead of saving $1,000 for 6 months, LaTonya
is going to save $1,000 over 12 months.
$1,000/12 months = $85/month
$85/4 week = $21.25/week
Visual Aid 1.11
Internal versus External Obstacles
• Internal obstacles—not caused by others;
created by you or your reaction to an outside
event.
• External obstacles—caused by something or
someone else
Visual Aid 1.12
Contingency Planning
• Thinking what could go wrong before it does
go wrong can help you be better prepared—
anticipating obstacles and having plans to
handle those obstacles is called contingency
planning.
• Contingency planning is a critical life skill and
key to becoming financially capable.
Visual Aid 1.13
Obstacle Course Roles
• Goal seeker will:
– Be working/walking toward this goal (the one hanging at the end of the path).
– Encounter obstacles along the way.
– Identify strategies to get rid of each obstacle. Everyone else can provide
assistance—offer other ideas or strategies.
• Obstacles:
– As the goal seeker approaches you, step into path and read your obstacle.
– The goal seeker will then have to figure out how to get rid of you as an
obstacle.
– Once you think they have come up with a realistic strategy or strategies to get
around you step out of the path.
– Be discerning. In other words, if you think the strategy won’t work, don’t step
out of the way.
• All other participants:
– Provide ideas to the goal seeker in getting rid of obstacles.
Visual Aid 1.14
Physical
Financial
Productive
Not an
Asset
computer
credit card
Where is
the
Asset?
social work degree
inventory in a business
good credit history
lunch at a restaurant
an apartment
on-the-job experience
savings account
cell phone
a house
cable television
health insurance
Visual Aid 1.15
What is Social Capital?
• “Social relations that have productive benefits.”
• One goal of the Opportunity Passport™ is to
ensure you have supportive relationships in your
community that can help you reach your goals.
This is another definition of social capital.
• Having social capital means you are connected to
other people. Sometimes those connections are
strong.
Visual Aid 1.16
How Social Capital Builds Assets
– Social capital can help connect you to other assets.
– Information and support you need to find a safe and
affordable place to live, access to grants and
scholarships for post-secondary education and
training or a referral to a good auto mechanic to
help you take care of your car.
– And your social capital can help you build more
social capital.
Visual Aid 1.17
How Assets Build Social Capital
– Having assets or building assets can help you develop
new relationships.
• Going to a training program or college will open up a whole
new set of people—other students, teachers/professors,
advisors—as part of your social capital.
• Owning a business can help you develop new
relationships—your customers.
• Living in a safe and affordable apartment can help you
expand your social network through your neighborhood.
• And reliable transportation can help you stay connected to
your existing social capital.
Visual Aid 1.18
Balanced Asset Building Portfolio
Physical
Assets
Financial
Assets
Productive
Assets
Social
Capital
Portfolio = a grouping of assets.
Your asset building portfolio is basically the assets you have and
are working towards.
Visual Aid 1.19
Assets, Liability and Equity
• Asset: something that you own that has value
• Liability: something you owe. When people buy assets they often borrow
money to afford the asset. This creates debt. Debt is money you owe to
another person, a business or the government. Debt is a liability.
• The difference between the value of an asset and the liability owed on
that asset is the equity of the asset.
• $5,000 (Asset value) - $4,500 (Liability or loan amount) = $500 (equity)
• Equity: the part of the asset’s value that would be left after a loan is paid
in full.
Visual Aid 1.20
Preventing Negative Equity
• Understand whether value is likely to increase
or decrease
• Avoid borrowing the FULL value of the asset
• Understand what you CAN afford
• Consider less than you can afford—60 to 80%
Visual Aid 1.21
1. What are the costs of saving?
Visual Aid 1.22
2. What are the benefits of saving?
Visual Aid 1.23
3. How can you find money to save in
your budget?
Visual Aid 1.24
4. Where can you put the money you
save?
Visual Aid 1.25
Savings Options Risks and Rewards
Jar, shoebox or under
the mattress
Risks
Rewards
Family member or
friend
Risks
Account at a federal
insured bank or credit
union
Rewards
Risks
Rewards
Visual Aid 1.26
Mara’s Emergency Budget
• Airplane ticket (roundtrip bereavement fare) =
$250
• New outfits and shoes = $75
• Flowers for her grandmother’s funeral = $75
• Other expenses ($25/day for 4 days) = $100
Visual Aid 1.27
Emergency Savings
$750 balance
No additional costs.
Must save to replace the
$500 she is withdrawing to
cover the emergency
Visual Aid 1.28
Payday loan
$15 per $100 borrowed for two
weeks
$500 + $75 fee for 2 weeks
However, since she has missed work,
she does not have income to cover
the loan. It takes her 3 months to
repay the loan, so she owes:
$500 (amount borrowed)
+
$475 (total fees)
Visual Aid 1.29
Credit Card
$1,000 credit limit
20% APR
Paying a 5% minimum on the
balance each month, she will
have paid $205 in interest over
2 years and still owe $80.
Visual Aid 1.30