ContentsIntroduction xiii1 The Difference in Finances between the BabyBoomers and Gen Y 11. The Evolution of Personal Finances 12 Give Your Parents the ""Money Talk"" 51. Topics to Discuss with Your Parents 61.1 Values 61.2 Education 71.3 Returning to the family home after graduation 73 Steps for Students 111. Course Selection Leading to Success 112. Part-Time Work and the Student 143. Volunteer Work 164 From School to Workplace 191. What Employers Want from You 192. Decide What You Want from the Employer 215 From Your Parents' Basement to Your FirstApartment 251. Begin with a Savings Plan 262. Selecting an Apartment 28iv No More Mac 'n' Cheese!6 Set Goals 311. Set Your Goals 321.1 Step 1: Visualization 321.2 Step 2: Goals, Position, and Strategy (GPS) 351.3 Step 3: Dangers, Opportunities,and Strengths (DOS) 371.4 Step 4: Treasure it, recycle it, trash it 372. Examples of Goal Setting 387 Create a Budget 471. Needs and Wants 471.1 Control your spending 482. Budgeting to Live within Your Means 502.1 The lifestyle your income will support 502.1a A simple life 502.1b A simple comfortable life 512.1c A bove average 512.1d Luxury 522.1e Prestige 522.2 Create and follow a budget 532.3 Typical budget 562.3a Financial obligations 562.3b Needs 572.3c Wants 583. Seize Savings Opportunities 624. Examples of Financial Lifestyles 624.1 Cassie's financial life plan 634.2 Matt's financial life plan 654.3 Sam's financial life plan 678 Calculate Your Net Worth 711. Examples of Net Worth 712. Your Most Valuable Asset 733. Calculating Your Net Worth 76Contents v9 Create a Safety Net: Insurance 791. Consider What You Should Insure 801.1 Prioritize your insurance purchases 801.1a Vehicle insurance 801.1b Disability insurance 811.1c Life insurance 821.1d Health insurance 821.1e Property insurance 831.1f Critical illness insurance 831.1g Travel insurance 831.1h Other insurance 842. Learn by Example 843. A Typical Employer's Benefit Plan 874. Tips for Choosing an Insurance Provider 884.1 Life and health insurance advisor 894.2 Property insurance advisor 9010 Debt 911. The Difference between Good Debt and Bad Debt 922. U nderstand What Your Lender Is Saying 933. Helpful Credit Tips 934. What to Do When Things Go Wrong 9511 Saving and Investing 991. The Four Principles for Building Your Foundationof Wealth 1001.1 Debt control 1001.2 Delayed gratification 1011.3 Diversification 1021.4 Dollar cost averaging 1022. Priorities for Your Savings and Investments 1022.1 Priority 1: Emergency fund 1032.2 Priority 2: Where you should invest your savingsfor mid-term goals 104vi No More Mac 'n' Cheese!2.3 Priority 3: Investing for long-term goals 1043. Talk to a Financial Planner 1064. Know Your Money Style and Avoid the Pitfalls 10712 Get Financial Help 1111. Do-It-Yourself and Group Learning 1112. Hiring an Advisor 1122.1 Selecting an advisor who can meet your needs 1132.2 Choosing your financial advisor 1173. Review Your Financial Plan Annually 11913 Buying a Vehicle 1211. Do Your Research before Buying a Vehicle 1222. Should You Buy a New or Used Vehicle? 1233. Should You Buy or Lease? 1233.1 Buying 1243.2 Leasing 12514 Buying a Home 1291. Terms You'll Need to Know 1302. Types of Housing 1322.1 Single-family home 1322.2 Townhouse 1332.3 Condominium 1333. Borrowing to Buy Your New Home 1334. The Importance of Location 1365. Get What You Want without Overpaying 13715 Tips for Couples 1431. How to Reconcile Your Money ManagementDifferences 1452. Solutions for Who Pays for What 1462.1 Pool all the money into one account 1472.2 Equal contribution 1472.3 Contribute a proportional percentage of earnings 1482.4 Keep separate accounts 148Contents vii3. Planning for Happiness While Protecting Yourself 1494. Getting Married 1504.1 Talk to your parents 151Conclusion 153Samples1 Differences between the Baby Boomersand Generation Y 42 Comparing a Job with Benefits versus a Jobwithout Benefits 233 Cassie's Cash Flow Statement 274 Cassie's Net Worth 285 Setting Goals 326 Matt's GPS Exercise 407 Matt's DOS Analysis 418 Matt's Treasure It, Recycle It, Trash It Exercise 429 Sam's GPS Exercise 4510 Sam's DOS Analysis 4611 Matt's Net Worth 7212 Cassie's Net Worth Projection 7313 Cassie's Lifetime Income Potential 7414 Matt's Lifetime Income Potential 7515 Sam's Lifetime Income Potential 7516 Mortgage Comparison 134Exercises1 Visualization 342 Goals, Position, and Strategy (GPS) 363 Dangers, Opportunities, and Strengths(DOS) Analysis 384 Treasure It, Recycle It, Trash It 395 Cash Flow Statement: Income 546 Cash Flow Statement: Expenses 557 Simple Lifestyle Budget 59viii No More Mac 'n' Cheese!8 Simple Comfortable Lifestyle Budget 609 A bove Average Lifestyle Budget 6110 Calculating Your Net Worth 7811 Questions to Ask a Potential Financial Advisor 11912 Steps for Purchasing Your First Home 139Quizzes1 What Is Your Latte Score? 492 What Type of Investor Are You? 1083 What Type of Financial Advisor Suits Your Needs? 1154 Should You Buy or Lease a Vehicle? 127
