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THE COMPLETEMONEYWORKBOOKCREATED BY THEFINANCIAL LITERACY COMMITTEENEW YORK STATE SOCIETY OF CPAsNASSAU CHAPTER Jarred R. Berman January 2015
THE COMPLETE MONEYWORKBOOKTHANK YOU TO OURSPONSORS:Tenenbaum Law, P.C. has focused its practice on the resolution of tax controversies forover nineteen years. We offer comprehensive services to businesses and individualswith respect to their Federal and New York State tax matters.534 Broadhollow Road, Suite 301Melville, New York 11747info@litaxattorney.com631-465-5000Sanders Thaler Viola & Katz, LLP believes in the value of relationships. We view everyclient relationship like a partnership, and truly believe that our success is a result of yoursuccess. As a full service accounting firm, we take pride in giving you the assurancethat the personal assistance you receive comes from years of advanced training,technical experience and financial acumen.Long Island Office:350 Jericho Turnpike, Suite 1Jericho, New York 11753516-938-5219New York City Office:275 Madison Avenue, Suite 1711New York, New York 10016212-370-3743st@st-cpas.comIf your company is interested in sponsorship opportunities with the Financial LiteracyCommittee, please contact the author. Jarred R. Berman January 2015i
THE COMPLETE MONEYWORKBOOK1INTRODUCTION . 12GRADES 1-4 . 22.1W HY TO HAVE THE CONVERSATION. 22.2W HAT IS MONEY . 42.2.1What Money Is Not . 42.2.2How To Make Money . 52.3CAREERS VS. JOBS . 62.4W ANTS VS. NEEDS . 62.4.1Questions to Think About . 72.4.2Game . 82.52.5.12.6ALLOWANCE . 9Allowance Guidelines . 9SPENDING PLANS. 92.6.1Examples of Spending Money. 102.6.2Examples of Spending Time . 102.7OPPORTUNITY COSTS . 102.8SAVING AND HOW IT IS DONE . 112.8.1What It Is and Why It’s Important . 112.8.2How Much Money Should Be Saved? . 122.8.3Where Can Money Be Saved? . 122.8.4How To Begin . 133. GRADES 5-7 . 143.1 DECISION MAKING . 143.1.13.23.2.1Coach . 14GET A JOB! . 14Passive Income . 153.3THE ART AND SCIENCE OF BUDGETING . 153.4TYPES OF BANKING SERVICES OFFERED . 153.4.1FDIC Insurance . 153.4.2Bank Services. 163.5GOOD LOANS VS. BAD LOANS . 163.5.1Good loans . 163.5.2Bad loans . 17 Jarred R. Berman January 2015ii
THE COMPLETE MONEYWORKBOOK4GRADES 8-12 . 184.1WORD FIND . 184.2BUDGETING. 184.2.1First Rule of Budgeting . 194.2.2Structure . 194.2.3Sample Monthly Budget . 194.3PAYCHECKS . 204.3.1Introduction . 204.3.2Example . 204.4YOUR INCOME AND HOW IT’S AFFECTED . 214.4.1Introduction . 214.4.2Factors . 214.4.3Ensure your success . 214.5SIMPLE INTEREST VS. COMPOUND INTEREST . 224.5.1Simple Interest Definition . 224.5.2Compound Interest Definition . 224.5.3Simple Interest Examples . 234.5.4Compound Interest Example . 234.6WEALTH ACCUMULATION . 234.6.1Time . 234.6.2Fees . 244.6.3Consistency . 244.7WHAT IS CREDIT AND USING IT WISELY. 254.7.1Definition . 254.7.2Credit Card Terms . 254.7.3Types of Credit . 264.7.4Sources of Credit . 264.7.5The DOs and DON’Ts of Using Credit Cards . 264.8BASICS OF INVESTING. 274.8.1The Difference Between Saving and Investing . 274.8.2The Rule of 72 . 274.8.3Investment Options . 284.8.4The Stock Market . 284.8.5Asset Allocation and Diversification . 284.8.5.1 Asset Allocation . 29 Jarred R. Berman January 2015iii
THE COMPLETE MONEYWORKBOOK4.8.5.2 Diversification . 294.8.64.95YOUR FUTURE, YOUR CAREER . 30COLLEGE PLUS . 325.1LOVING YOUR JOB AND CAREER . 325.2LIVING ON YOUR OWN . 335.2.1Due-Diligence . 335.2.2Your First Apartment . 335.2.3Your First House. 355.2.4Plan for the unexpected: A Healthy Reserve . 385.3CARS (LEASING VS. PURCHASING) . 385.4RENT AN APARTMENT VS. BUY A HOME . 405.5YOUR FUTURE . 415.5.16Stock Market Resources . 30Family Fun Finances . 41CLOSING REMARKS . 426.1TAKE AWAYS . 426.1.1Take Aways For Kids . 426.1.2Take Aways For Adults . 427AUTHORS . 448APPENDIX . 459OTHER RESOURCES. 539.1ALL AGES . 539.2PRE-TEEN THROUGH TEEN . 549.3YOUNG CHILDREN . 54 Jarred R. Berman January 2015iv
THE COMPLETE MONEYWORKBOOK1INTRODUCTIONOur mission is simple at the Financial Literacy Committee1 of the New York StateSociety of CPAs:To reach out to children in order to guide them on their journey towardfinancial literacy and fiscal responsibility. We will expose them to engagingand instructional mate
THE COMPLETE MONEY WORKBOOK Jarred R. Berman January 2015 iii 4 GRADES 8-12 . 18File Size: 1MBPage Count: 59
