INFLATION How you lose money without realizing it

INFLATION : How you lose money without realizing it www. dividendcake. com | Email us | info@dividendcake. com 1

What did you learn last time ? Let’s see what …you remember from the 2017 Financial Education classes. THE FINANCIAL PYRAMID www. dividendcake. com | Email us | info@dividendcake. com 2

Exercise 2 : Let’s repeat Compound Interest 10. 000 Euro – 7% during 10 years 1. You get each of you 10 k from me 2. Your money grows 7% each year 3. How much money do you have in year 10 ? 4. What happens with your monthly amount? 5. What can you conclude ? 6. Ask questions if you need help… www. dividendcake. com | Email us | info@dividendcake. com 3

Answer to exercise 2 www. dividendcake. com | Email us | info@dividendcake. com 4

Key Principles of Compound Interest 1. ANNUAL RATE OF RETURN or GROWTH RATE (How fast you can grow your money…) 2. TIME 3. ADDITIONS TO YOUR AMOUNT PER YEAR www. dividendcake. com | Email us | info@dividendcake. com 5

DO You Remember Your Financial Pyramid Name all the FOUR layers and what is the purpose ? STEP 4 -> LAYER 4 STEP 3 -> LAYER 3 STEP 2 -> LAYER 2 FIRST STEP -> LAYER 1 www. dividendcake. com | Email us | info@dividendcake. com 6

ANSWER: Your Financial Pyramid Your Investments At first your investment in dividend stocks or other activa will be small but apply the right strategy and this pyramid will turn Your Savings for (grand)kids or Save money for a specific goal or dream that you have. You can other goals also save money for your kids or grandchild. You decide. Your Pension Saving Plan Save a defined amount for your pension. This can be done through a pension fund, pension insurance plan or through your employer if they offer it. Your Financial buffer Establish your financial buffer of 6 to 18 months of your current salary and don’t touch it. Put it on a savings account for unexpected financial setbacks www. dividendcake. com | Email us | info@dividendcake. com 7

Why Financial Education is important … Your school will NOT teach you financial literacy… www. dividendcake. com | Email us | info@dividendcake. com 8

Financial Class 2 : WHAT IS INFLATION YOUR WHOLE LIFE WILL BE IMPACTED BY INFLATION !! www. dividendcake. com | Email us | info@dividendcake. com 9

How Banks work with Your Money… YOU PUT MONEY ON YOUR SAVINGSACCOUNT AND EARN 0, 11% OR LITTLE MORE THE BANK GIVES A LOAN TO A PERSON. COMPANY OR GOVERNMENT AT 3% OR MORE www. dividendcake. com | Email us | info@dividendcake. com 10

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DEFINITION OF INFLATION www. dividendcake. com | Email us | info@dividendcake. com 13

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Losing Buying Power… www. dividendcake. com | Email us | info@dividendcake. com 15

The evolution of the price of bread www. dividendcake. com | Email us | info@dividendcake. com 16

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What is the % inflation today in Belgium? PRICES DID GO UP WITH WHAT % in JULY 2018 ? www. dividendcake. com | Email us | info@dividendcake. com 18

What is the impact on your Savings Account ? YOU LOSE PURCHASING POWER YEAR OVER YEAR ! AFTER 10 YEARS YOU LOSE 2000 EURO WITHOUT DOING ANYTHING ! YOUR 10. 000 IS NOW ACTUALLY 8. 000 EURO… www. dividendcake. com | Email us | info@dividendcake. com 19

In Venezuela they have HYPERINFLATION What is hyperinflation, you think ? www. dividendcake. com | Email us | info@dividendcake. com 20

Let’s find out your financial attitude … Which one do you choose? WRITE DOWN ON YOUR PAPER THE REASONS WHY YOU WOULD PICK AN OPTION PICK YOUR FAVORITE LET’S DISCUSS www. dividendcake. com | Email us | info@dividendcake. com 21

Final feedback WHAT DID YOU LEARN ? TELL ME YOUR KEY LEARNINGS OF TODAY www. dividendcake. com | Email us | info@dividendcake. com 22

TIME FOR A PRESENT www. dividendcake. com | Email us | info@dividendcake. com 23

KEEP ON LEARNING EVERY DAY… www. dividendcake. com | Email us | info@dividendcake. com 24