Saving and Investing on Your Own — slides
Financial Literacy Club
Money After High School · Lesson 10
Saving and Investing on Your Own
Putting what you've learned into practice with your first paycheck.
12-minute lesson · learnwithflc.org
Saving and Investing on Your Own · 1 / 19
Financial Literacy Club
Money After High School · Lesson 10
Saving and Investing on Your Own
Putting what you've learned into practice with your first paycheck.
12-minute lesson · learnwithflc.org
Today's goals
By the end of class, you'll be able to…
- Follow a common order of priorities for your money
- Automate saving and investing
- Plan what to do with a raise
Warm-up
Your first full-time paycheck arrives. What are the first three things you'd do with it?
Think, then write your answer.
The big idea
Saving and Investing on Your Own
Putting what you've learned into practice with your first paycheck.
Money After High School · Lesson 10
When the paychecks start, the question becomes: what goes where, and in what order? Here's a commonly used sequence. It's a general guideline — your situation may call for a different order.
Money After High School · Lesson 10
- 1
Budget and a starter emergency fund
A few hundred to $1,000 so surprises don't become debt.
- 2
Get any employer retirement match
If your employer matches contributions, that's an instant return.
- 3
Pay off high-interest debt
Credit cards at 20%+ APR cost more than most investments earn.
- 4
Build a full emergency fund
About 3–6 months of essential expenses.
- 5
Invest more for retirement
Through a workplace plan or an IRA.
- 6
Save for other goals
A car, a home, travel — with savings or investments matched to the timeline.
Money After High School · Lesson 10
Automate it. Split your direct deposit, or schedule transfers on payday. Decisions you make once beat decisions you have to make every month.
Money After High School · Lesson 10
Avoid lifestyle creep
When your income rises, raise your savings rate before your spending. Save half of every raise, and you'll barely notice.
See it
First a budget and starter emergency fund, then any employer retirement match, then paying off high-interest debt, then a full emergency fund, then more retirement investing, then other goals.
Starter emergency fund
Employer match
High-interest debt
Full emergency fund
More retirement
Other goals
Real example
Nadia's first real job
Nadia starts a job paying $3,000 a month take-home. She has a $1,200 credit card balance at 24% APR, and her employer matches 401(k) contributions up to 4% of pay.
- Month 1: builds a $1,000 starter emergency fund and signs up for the 401(k) at 4% to get the full match.
- Months 2–4: puts an extra $400 a month toward the credit card until it's gone.
- After that: $400 a month builds her emergency fund to 3 months of expenses, then shifts to investing.
Try it together
Try it: what $200 a month could become
Hypothetical returns only. Try 40 years, then 30, to see what a decade of waiting costs.
Your numbers
Real returns vary year to year and can be negative.
Results
Hypothetical balance after 40 years
$524,963
Compounded monthly at a constant 7% a year
You contributed
$96,000
Hypothetical growth
$428,963
Growth share
82%
of the final balance
- Your contributions
- Hypothetical growth
Show year-by-year tableHide table
| Year | Contributed | Growth | Balance |
|---|---|---|---|
| 1 | $2,400 | $79 | $2,479 |
| 2 | $4,800 | $336 | $5,136 |
| 3 | $7,200 | $786 | $7,986 |
| 4 | $9,600 | $1,442 | $11,042 |
| 5 | $12,000 | $2,319 | $14,319 |
| 6 | $14,400 | $3,432 | $17,832 |
| 7 | $16,800 | $4,800 | $21,600 |
| 8 | $19,200 | $6,440 | $25,640 |
| 9 | $21,600 | $8,372 | $29,972 |
| 10 | $24,000 | $10,617 | $34,617 |
| 11 | $26,400 | $13,198 | $39,598 |
| 12 | $28,800 | $16,139 | $44,939 |
| 13 | $31,200 | $19,466 | $50,666 |
| 14 | $33,600 | $23,207 | $56,807 |
| 15 | $36,000 | $27,392 | $63,392 |
| 16 | $38,400 | $32,054 | $70,454 |
| 17 | $40,800 | $37,225 | $78,025 |
| 18 | $43,200 | $42,944 | $86,144 |
| 19 | $45,600 | $49,250 | $94,850 |
| 20 | $48,000 | $56,185 | $104,185 |
| 21 | $50,400 | $63,795 | $114,195 |
| 22 | $52,800 | $72,129 | $124,929 |
| 23 | $55,200 | $81,239 | $136,439 |
| 24 | $57,600 | $91,180 | $148,780 |
| 25 | $60,000 | $102,014 | $162,014 |
| 26 | $62,400 | $113,805 | $176,205 |
| 27 | $64,800 | $126,621 | $191,421 |
| 28 | $67,200 | $140,538 | $207,738 |
| 29 | $69,600 | $155,634 | $225,234 |
| 30 | $72,000 | $171,994 | $243,994 |
| 31 | $74,400 | $189,711 | $264,111 |
| 32 | $76,800 | $208,882 | $285,682 |
| 33 | $79,200 | $229,613 | $308,813 |
| 34 | $81,600 | $252,015 | $333,615 |
| 35 | $84,000 | $276,211 | $360,211 |
| 36 | $86,400 | $302,329 | $388,729 |
| 37 | $88,800 | $330,509 | $419,309 |
| 38 | $91,200 | $360,899 | $452,099 |
| 39 | $93,600 | $393,660 | $487,260 |
| 40 | $96,000 | $428,963 | $524,963 |
Educational calculator, not financial advice. Results are hypothetical estimates based on the numbers you enter.
Activity · pairs · 10 min
Order of Operations
- Give pairs six cards: build a starter emergency fund, get the full employer retirement match, pay off high-interest debt, build a 3–6 month emergency fund, invest more for retirement, save for other goals.
- Pairs put the cards in order and explain each step.
- Compare with the order in the lesson and discuss any differences.
- Pairs apply the order to a new graduate with a $900 credit card balance at 24% and an employer match.
Check for understanding · 1 of 3
You have a credit card balance at 25% APR and $1,000 in an emergency fund.
Following the common order, what's usually next after capturing any employer match?
- AInvest in individual stocks
- BPay off the 25% APR credit card
- CBuy a new car
- DSave for a vacation
B. Pay off the 25% APR credit card
Paying off 25% debt is like earning a guaranteed 25% — hard to beat.
Check for understanding · 2 of 3
Setting up automatic transfers on payday makes saving more likely to happen.
- True
- False
True
Automation turns saving into the default instead of a monthly decision.
Check for understanding · 3 of 3
You get a $300-a-month raise.
What's a smart way to avoid lifestyle creep?
- ASpend all of it immediately
- BRaise your savings by part of the raise — say $150 a month — before adjusting spending
- CStop saving
- DUpgrade your car
B. Raise your savings by part of the raise — say $150 a month — before adjusting spending
Saving part of every raise grows your savings rate without feeling like a cut.
Remember
Key takeaways
- Starter fund → match → high-interest debt → full fund → invest → goals.
- Automate on payday.
- Save part of every raise.
- It's a guideline — adjust to your life.
Discuss
Talk it over
- Which step in the order would be hardest for you? Why?
- Why do you think lifestyle creep is so common?
Exit ticket
Why does the employer match usually come before paying off other debt?
Answer on your exit ticket before you leave.
Nice work today.
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learnwithflc.org/courses/money-after-high-school/saving-and-investing
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