barb flowers federal reserve bank of st ... - about the acfe€¦ · ©2016, minnesota council on...

70
Barb Flowers Federal Reserve Bank of St. Louis [email protected] Jeannette Bennett Federal Reserve Bank of St. Louis – Memphis Branch [email protected] April 2017

Upload: others

Post on 26-Jun-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Barb Flowers

Federal Reserve Bank of St. Louis

[email protected]

Jeannette Bennett

Federal Reserve Bank of St. Louis – Memphis Branch

[email protected]

April 2017

Page 2: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Disclaimer

The views expressed in the presentation are those of the presenters and not the views of the Federal Reserve Bank of St. Louis or the Federal Reserve System.

Page 3: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

3

Courtesy of Woodrow Wilson Presidential Library; Painting by Wilbur G. Kurtz

Page 4: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

How many Federal Reserve Districts were established?

1. Eight

2. Nine

3. Ten

4. Eleven

5. Twelve

Page 5: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 6: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Know Your Currency

Page 7: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Where is U.S. currency printed?

Washington, D.C.

Fort Worth, TX

www.uscurrency.gov

Page 8: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Who am I? What bill am I on?Was I a U.S. President?

1

Page 9: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 10: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Ben Franklin: Highlighting the Printer

Students will learn that money is an

invention. They will read and analyze an

essay focusing primarily on one aspect of

Ben Franklin's life—his work as a printer—

and how he was an inventor and entrepreneur who also

promoted the use of currency in the United States. Students

will cite specific textual evidence regarding problems and

solutions and will answer questions and complete a timeline.

By using evidence and information gleaned from text, students

will write a fictitious social-media post defending the selection

of Ben Franklin's portrait for the $100 note.

http://www.stlouisfed.org/education_resources/assets/les

son_plans/BenFranklin.pdf

Page 11: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

And There’s More. . .Much More!

Page 12: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Making Personal Finance DecisionsCurriculum Unit

• 10 themed units

• Each unit contains two lessons

©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Minnesota Council on Economic Education.

Page 13: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Unit One: Thinking Economically

Lesson 1A:

The Wealth Game—Factors for Success

Page 14: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

• Concept: Determinants of wealth—natural abilities, effort, motivation, and luck

• Compelling Question: How do personal characteristics and skills affect a person’s financial wealth?

• Objective: Students will be able to describe personal characteristics and skills important for financial success.

Page 15: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Unit Two: Planning and Tracking

• Lesson 2A:

• The Inventory Game—Net Worth and Cash Flow

Page 16: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

• Concepts: Assets, Cash flow, Expenses, Flows, Income, Liabilities, Net worth, Stocks

• Compelling Question: How do cash inflows and outflows affect a person’s net worth?

Page 17: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

• Objectives: Students will be able to

• distinguish between stock and flow concepts,

• describe net worth as the value of a person’s assets minus the value of the individual’s liabilities at a point in time,

• provide examples of assets and liabilities,

• describe cash flow as the difference between a person’s income and expenses over a given period, and

• provide examples of income and expenses over a given period.

Page 18: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

• National Standards for Financial Literacy• Voluntary National Content Standards in

Economics

Standards and Benchmarks

Page 19: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

And There’s More. . .Much More!

Page 20: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 22: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

• National Standards for Financial Literacy• Voluntary National Content Standards in Economics• Common Core State Standards

Standards and Benchmarks

Page 23: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

• NEW!! Advertising: Dollars and Decisions• Insurance: Managing Risk and Balancing

Responsibility with Affordability • Income Tax: Facts and Filings • Financing Businesses and Public Projects with

Stocks and Bonds*• Soft Skills: Success May Depend on Them • The Smart-Chip Credit Card: A Current Solution • Peer-to-Peer Lending • From Coins to Big Bucks: The Evolution of General

Purpose Reloadable Prepaid Cards

Page 24: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Income Tax: Facts and Filings

Page 25: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

“The hardest thing in the world to understand is the income tax.”

—Albert Einstein

Page 26: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

16th Amendment to the U.S. Constitution (1913)

The Congress shall have the power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration. SOURCE: http://www.ourdocuments.gov/doc.php?flash=true&doc=57.

Page 27: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

NOTE: Original images ©Tax Foundation.SOURCE: IRS; http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Income-Tax-Rates-and-Tax-Shares. Tax Foundation. “Summary of the Latest Federal Income Tax Data, 2015 Update.” November 19, 2015; http://taxfoundation.org/article/summary-latest-federal-income-tax-data-2015-update.

Page 28: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

NOTE: Original images ©Tax Foundation.SOURCE: IRS; http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Income-Tax-Rates-and-Tax-Shares. Tax Foundation. “Summary of the Latest Federal Income Tax Data, 2015 Update.” November 19, 2015; http://taxfoundation.org/article/summary-latest-federal-income-tax-data-2015-update.

Page 29: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 30: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 31: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

In 1913, the income tax form was four pages and included one page of instructions. Go to https://www.irs.gov/pub/irs-utl/1913.pdf to view the original form. Work with a partner to analyze the form. Identify at least two facts from the form that you find interesting.

Question:

Page 32: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Explain the difference between a tax deduction and a tax credit.

Question:

Page 33: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 34: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

“Mass demand has been created almost entirely through thedevelopment of advertising.”

—Calvin Coolidge, October 27, 1926

Source: Coolidge, Calvin. Address Before the American Association of Advertising Agencies. Washington, DC. October 27, 1926;http://www.presidency.ucsb.edu/ws/?pid=412.

Page 35: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 36: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Question 1

How many advertisements are consumers exposed to each day?

Page 37: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Answer:Consumers are bombarded with

as many as 4,000 to 10,000 advertisements each day!

Page 38: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Question 2

Who is the world's largest advertiser?

Page 39: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Answer:

Procter & Gamble

Page 40: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Question 3

40

In 2016, on average, how many

hours per day did American

adults watch television?

Page 41: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Answer:

41

5 hours

Page 42: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Question 4

Advertisers paid as much as _______ for a 30-second commercial for the

2017 Super Bowl.

42

Page 43: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Answer:$5.2 million

43

Page 44: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Question 5

In 2015, how many minutes of each hour of programming were commercials on the

Fox News Channel?

44

Page 45: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Answer:

17 minutes

45

Page 46: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Question 6

Which day of the week is television watched the most?

46

Page 47: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Answer:

Sunday

47

Page 48: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Question 7

What was the total cost for the first official paid television ad broadcast in

the United States in 1941?

48

Page 49: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

The first official paid television ad in the United States was broadcast in 1941 as a short and simple ad for a Bulova watch. Broadcast before a baseball game in New York, the total cost for the ad was less than $10.

49

Answer:

Page 50: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 51: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

The first self-service grocery store, Piggly Wiggly, was opened on September 6, 1916 at 79 Jefferson Street in Memphis by Clarence Saunders. It was unlike any other contemporary grocery store. There were shopping baskets, open shelves, and no clerks to shop for the customer – all of which were previously unheard of! (Prior to this innovation, customers gave orders to clerks to fill.)

Source: Wikipedia

Answer:

Page 52: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 53: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 54: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 55: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Top Objectives:

Page 56: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Instruct the students to select an ad from a magazine and write an analysis of the ad that includes the following:• Name of the product• Technique(s) used in the ad• Target audience(s) of the ad• Benefits of buying or using the product• Price of product• Reasons for consumers to buy the product

Extension Activities:

Page 57: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 58: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Changing Credit Card Payments

• Smart-chip credit cards

• Unintended consequences

Source of graphic: http://www.discovernetwork.com/chip-card/images/BestPracticesforEMVEducationTraining.pdf

Page 59: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Problem

• Concerns regarding fraud involving card-present (CP) transactions included credit card counterfeiting, skimming of personal and financial data, and fraudulent transactions made with lost or stolen credit cards. In each case, fraudulent transactions are made with an altered, stolen, or cloned card.

Page 60: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Problem• In 2013 and 2014, more credit card data thefts

including the theft of 40 million Target customer credit card details brought more attention to the problem.

Page 61: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Solution

• Smart chip cards generate a new security code for each transaction and the specifications make cloned, stolen, or skimmed data useless to fraudsters. The unique and changing security code is the key for addressing CP fraud and providing a more secure payment system.

Page 62: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

• October 2015 deadline known as the 'liability shift.

• Whenever card fraud happens, whichever party has the lesser technology will bear the liability.

• Not a law; voluntary compliance

Liability Shift

Page 63: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

Liability Shift

If a merchant is still using the old system, they can still run a transaction with a swipe and a signature. But they will be liable for any fraudulent transactions if the customer has a chip card.

If the merchant has a new terminal, but the bank hasn't issued a chip and PIN card to the customer, the bank would be liable.

Either way, liability no longer falls on the consumer.

Page 64: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

But…in the Meantime

Page 65: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

But…in the Meantime

• Liability-shift dates are set for October 2017 for fuel pumps. This extended time allowance was granted because of the increased cost and complexity of the transition.

Page 66: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

• October 2017 deadline given to update pumps with EMV technology because of time and money required. Gas pumps are highly regulated objects. After the new technology is installed, local authorities must inspect and re-certify every single pump. The industry will spend $3.9 billion retooling the country's 800,000 fuel pumps.

Source: http://www.creditcards.com/credit-card-news/year-of-gas-station-skimmer-1282.php/?a_aid=e38bc565

Skimming

Page 67: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

The Expected

Page 68: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

The Expected

Page 69: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St
Page 70: Barb Flowers Federal Reserve Bank of St ... - About the ACFE€¦ · ©2016, Minnesota Council on Economic Education. Developed in partnership with the Federal Reserve Bank of St

What do you think?

Comments? Questions?