Basic money lecture

Updated 10 Jan 14, this is version 4:

• Target time: 15 mins before questions
• Target audience: Average high school kids in U.S.

• 1.  Money isn’t mysterious; you can learn a lot about it. You need to manage your ownmoney, and this should be a regularly scheduled activity. You should spend a few minutes every month doing this, just like cleaning your house, changing the oil in your car, or taking your dog to the vet.
•  a. I will give you a lot of advice below – it isn’t perfect, and you will need to adapt it to yourself and situation, and change your plan over time as you and your life change. This part of what you should be doing every month when you look at your own money. 

• 2. With every dollar you make, save some of it.

• 3. Have a three ring binder or book where you keep all your financial records – along with a thumb drive or hard drive separate from your computer.

• 4. See the fiduciary pledge. If someone is trying to give you advice and sell you something and won’t sign it, walk away.

• 5. You should definitely be saving for retirement; you should probably get a Roth IRA with a lifecycle or target date fund.

• 6. Stocks and bonds.

• a. Risk versus reward.

• b. RISK ISN’T ALWAYS BAD; in fact, sometimes it’s necessary. You should get paid to take risks.

• 7. Risk as compared to time in your life and what a lifecycle fund does.

• 8. You should probably get a 529 plan. This is for saving money for college.

• 9. You should probably get a credit card as soon as possible and use it a minimal amount –buy yourself dinner once a year on your birthday and pay off the card immediately, then put that card in your safe deposit box. This will build your credit score.

Fiduciary Pledge

I, the undersigned, pledge to exercise my best efforts to always act in good faith and in the best interests of my client, and will act as a fiduciary. I will provide written disclosure, in advance, of any conflicts of interest, which could reasonably compromise the impartiality of my advice. Moreover, in advance, I will disclose any and all fees I will receive as a result of this transaction and I will disclose any and all fees I pay to others for referring this client transaction to me. This pledge covers all services provided.

Client ____________________________________________________

Fiduciary / Financial Advisor __________________________________

Date and Signature of fiduciary / advisor: