Title: Calculating Your Future: Personal Finance
1(No Transcript)
2Calculating Your Future Personal Finance
New Module on Financial Literacy
3Session 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
4- 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 -
5Making 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.
6Calculating 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
7Content 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
8Mathematics Learned and Applied
- Basic Computation and
- Estimation
- Functions
- Data Analysis and Probability
- Problem Solving
9Ongoing 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
10Calculating 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
11What 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?
12What 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.