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TRANSCRIPT
Barb Flowers
Federal Reserve Bank of St. Louis
Jeannette Bennett
Federal Reserve Bank of St. Louis – Memphis Branch
April 2017
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.
3
Courtesy of Woodrow Wilson Presidential Library; Painting by Wilbur G. Kurtz
How many Federal Reserve Districts were established?
1. Eight
2. Nine
3. Ten
4. Eleven
5. Twelve
Know Your Currency
Where is U.S. currency printed?
Washington, D.C.
Fort Worth, TX
www.uscurrency.gov
Who am I? What bill am I on?Was I a U.S. President?
1
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
And There’s More. . .Much More!
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.
Unit One: Thinking Economically
Lesson 1A:
The Wealth Game—Factors for Success
• 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.
Unit Two: Planning and Tracking
• Lesson 2A:
• The Inventory Game—Net Worth and Cash Flow
• 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?
• 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.
• National Standards for Financial Literacy• Voluntary National Content Standards in
Economics
Standards and Benchmarks
And There’s More. . .Much More!
Teacher Edition (pdf)
Student Edition (pdf)
Middle School Teacher Edition
• National Standards for Financial Literacy• Voluntary National Content Standards in Economics• Common Core State Standards
Standards and Benchmarks
• 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
Income Tax: Facts and Filings
“The hardest thing in the world to understand is the income tax.”
—Albert Einstein
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.
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.
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.
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:
Explain the difference between a tax deduction and a tax credit.
Question:
“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.
Question 1
How many advertisements are consumers exposed to each day?
Answer:Consumers are bombarded with
as many as 4,000 to 10,000 advertisements each day!
Question 2
Who is the world's largest advertiser?
Answer:
Procter & Gamble
Question 3
40
In 2016, on average, how many
hours per day did American
adults watch television?
Answer:
41
5 hours
Question 4
Advertisers paid as much as _______ for a 30-second commercial for the
2017 Super Bowl.
42
Answer:$5.2 million
43
Question 5
In 2015, how many minutes of each hour of programming were commercials on the
Fox News Channel?
44
Answer:
17 minutes
45
Question 6
Which day of the week is television watched the most?
46
Answer:
Sunday
47
Question 7
What was the total cost for the first official paid television ad broadcast in
the United States in 1941?
48
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:
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:
Top Objectives:
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:
Changing Credit Card Payments
• Smart-chip credit cards
• Unintended consequences
Source of graphic: http://www.discovernetwork.com/chip-card/images/BestPracticesforEMVEducationTraining.pdf
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.
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.
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.
• 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
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.
But…in the Meantime
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.
• 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
The Expected
The Expected
What do you think?
Comments? Questions?