Personal Management Merit Badge

a. Prepare a budget...

Track it for 13 CONSECUTIVE weeks!

b. Compare expected income with expected expenses

1. If expenses exceed income, determine steps to balance your budget.

2. If income exceeds expenses, state how you will use the excess money (new goal, savings, etc.)

Discuss 5 of the following...

c. Explain buyers remorse...How do you feel when you buy something new? How do you feel 3 months later?

d. How does hunger affect you when shopping for food?

g. Charitable giving. Purpose? Thoughts?

#3 f. What happens when you put money into a savings account?

#3 h. What can you do to better manage your money?

b. How does the amount of money you have with you affect your spending habits?

6e. US Savings Bond

An investment in the US Government

Advantages

No risk of loss

Exchange for cash anytime

Disadvantages

Low interest rate

6b. Mutual Funds

Investment that is a

collection of individual stocks

Advantages

Some Personal Choice

Balanced Risk

Professional Management

Disadvantages

Risk of loss

Investment Fees

Borrowing $$

Personal Management

Merit Badge

A Scout is Thrifty

Managing Your Money

Managing Yourself

Don't be this guy!

Avoid Time Sinks...

What are some examples of time wasters?

How can you be sure to accomplish what you set out to do?

$aving

Requirement #6

Inve$ting

Pretend you have $1,000.00 to save, invest and help prepare for the future. Explain the advantages or disadvantages of saving or investing in each of the following...

Earning &

Managing $$

Investing is saving money with the purpose of making more money.

#4 b. Explain the concepts of return on investment (ROI) & Risk...

Saving is putting money aside for a future purpose.

Requirement #8

Requirement #2 Do the following...

• Write a “to do list” of tasks or activities, such as homework assignments, chores, personal projects, that must be done in the coming week. List these in order of importance.
• Make a 7 day calendar or schedule with your activities and then plan when you will do your “to do list”
• Follow the one week schedule. Keep track to see if completed.
• Review and discuss what worked and what might be done differently next time.

This is NOT a plan!

#4 a. What's the difference between Saving & Investing?

Why save?

Why invest?

6c. Life Insurance

Payments to a company with the agreement that they will pay your family a certain amount of money at your death

Advantages

No risk of loss

Helps family after you die

Disadvantages

No income while alive

No getting money back if you cancel before your death

6a. STOCK

The investment in a business

Advantages:

If the business makes money, you make money

Greater earnings potential

Personal choice

Can buy or sell anytime

Disadvantages:

Can lose all of your original investment

You must research and watch closely

Requirement #5

Requirement #9

Select 5 publicly traded stocks & explain the importance of :

a. Current Price

b. how much the price changed from the previous day

c. The 52-Week high and the 52-Week low prices.

Prepare a written project plan

Plan a project on “paper”

(not completing a real-life project)

• Define the project.
• What is the goal?
• Develop a timeline for the project that shows the steps you must take from beginning to completion.
• Describe your project
• Develop a list of resources. Identify how these resources will help you achieve your goal.
• Develop a budget.

6d. Certificates of Deposit

An investment at a bank for defined time at a guaranteed interest rate

Advantages

Guaranteed income

No risk of loss

Disadvantages

Money held to maturity

Low interest rate

4c. Compound interest is investing a set amount of money and interest earned is added to the original investment to earn even more interest.

4c. Simple Interest is investing a set amount of money and the interest earned does not increase the base original investment.

No interest or growth is like keeping your money in a piggy bank.

$pending

Requirement #7.

Explain to your counselor the following:

Of Emotions & Money

a. What a loan is;

What interest is;

How the annual percentage rate (APR) measures the true cost of a loan

Requirement #3

What is "Impulse Buying" and what impact does it have to our budgets and plans?

What Diffrence Does It Make?

a. How do you feel when you receive money?

How can I manage it?

Banks are For Profit Financial Institutions

So much plastic, so little money...

Requirement 7. C.

7e. Ways to eliminate debt...

• What are the differnces between...
• Charge Cards
• Debit Cards
• Credit Cards
• What are the costs and pitfalls of using these financial tools?
• Explain why it is unwise to make only the minimum payment on your Credit Card?

Requirement #1

a. Choose an item that your family might want to purchase that is considered a major expense.

b. How would your family save money for the purchase

• Discuss the plan with your merit badge counselor.
• Discuss the plan with your family
• Discuss how family needs must be considered

c. Develop a written shopping strategy

• Determine the quality of the item
• Comparison Shop: Sales, Competitors, Coupon

Save for a Rainy Day

MASTER YOUR MONEY!

Provide for your family!

C.U.'s are typically not for profit

Become Financially Free

They exist to serve their members like a co-op