Calculating Your Future: Personal Finance

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Calculating Your Future Personal Finance
New Module on Financial Literacy
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Session Agenda

• Welcome and Rationale
• Calculating Your Future Module Overview
• Sample Session from Activity 4 Borrowing for the
  Future Managing Credit and Debt
• Panel Discussion Highlights and Challenges from
  Calculating Your Future Pilot Teachers and
  Students

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• The financial preparedness of our nation's
  youth is essential to their well-being and of
  vital importance to our economic future." 
• Ben Bernanke, Chairman of the Federal
  Reserve

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Making The Case For Calculating Your Future

• Finance knowledge and skills are now included in
  many state and national business education
  standards
• Three states now require at least a one-semester
  course devoted to personal finance. (Tennessee,
  Missouri, Utah)
• Fifteen other states require personal finance
  instruction incorporated into other subject
  matter.

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Calculating Your Future Module Overview

• Twelve-to-eighteen week (semester-long) module
  for grades 11 and 12 (may also be suitable for
  grade 10)
• Academic Areas Business, Mathematics, Economics

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Content Focus

• Essential concepts in financial planning
  opportunity cost, gross and net income, savings
  and interest, credit and debt, investment and
  risk, insurance
• Fluency in reading and comprehending financial
  documents, including paystubs, credit card
  statements, and contracts
• Mathematical operations and reasoning applicable
  to financial decision-making

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Mathematics Learned and Applied

• Basic Computation and
• Estimation
• Functions
• Data Analysis and Probability
• Problem Solving

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Ongoing Project Financial Living

• Each Financial Living team receives a profile
  of a fictional character and
• Sets financial goals for their character and
  creates a financial plan to meet those goals
• Develops spreadsheets to create and manage a
  monthly budget and spending plan for character
• Adjusts spreadsheets to manage debt, savings, and
  investments as well as to respond to unexpected
  events

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Calculating Your Future Activities at a Glance
Activity 1 The Value of Money Activity 2
Dollars and Sense Introduction to Money
Management Activity 3 For Safekeeping The
Growing Interest in Banking Activity 4
Borrowing for the Future Managing Credit and
Debt Activity 5 Risk and Reward Activity 6
Planning Ahead
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What Would You Do?
Marcella is a senior in high school. The prom is
one week away, and she still doesnt know what
shes going to wear. Shes saved up 150 to buy
her outfit. She goes to the popular Paymor
Boutique and sees an outfit that is perfect,
except that it costs 225. The store manager
tells Marcella that if she applies for the
stores credit card and uses it for this
purchase, she can get 20 off the price. What
should Marcella do? What would YOU do? Would you
apply for the credit card and buy the outfit? Or
would you keep shopping? Why?
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What Does Marcella Do?
Marcella decides to go ahead and apply for the
credit card and purchase the outfit. And while
shes at the boutique, she figures its
convenient to also buy some shoes and accessories
with her new credit card. A week later, she goes
to the prom and has a blast. (And she looks
fabulous, too!) As shes busy enjoying her last
summer before college, Marcella doesnt bother to
read her mail. Finally, at the end of July, her
mom asks Marcella to clear up a pile of mail that
shes neglected to open. In that pile are two
credit card statements.