Fostering Financial Literacy for Youth
Workshop Series, Fall 2016
The Fostering Financial Literacy for Youth workshop series is designed to equip afterschool program staff
with the knowledge, tools and resources to teach their youth to become financially savvy and in control
of their financial futures.
The workshops in the 4-part series include:
Credit cards, October 5, 2016
Presented by: Douglas Young, The Wiser Choice
Budgeting and Saving, October 25, 2016 Presented by: James Gurney and Cameron LeBlanc, Futures and Options
Going to College Debt-Free: Is it Possible?, November 1, 2016 Presented by: Clemente Diaz
Youth Entrepreneurship, November 29, 2016 Presented by: Greg Valentine, Council for Economic Education Use of Materials
These materials are a part of the Fostering Financial Literacy for Youth Series provided by the
Partnership for After School Education. They serve as reference materials and can support your work
with youth around financial literacy.
Fostering Financial Literacy for youth is funded by Morgan Stanley.
Fostering Financial Literacy for Youth
Youth Entrepreneurship
Resource List
1. PowerPoint Presentation
1
Fostering Financial Literacy for Youth: Entrepreneurship
Gregory Valentine, Ph.D.Consultant, Council for Economic Education
122 E. 42nd Street
New York, NY 10168
P-E3
736 Greenfield Road – Suite 203
Evansville, IN 47715
ENTREPRENEURIAL READINGS1. Theodore Geisel (Dr. Seuss)/Stan and Jan Berenstain #
2. Lawn Boy – Gary Paulse
3. The Toothpaste Millionaire – Jean Merrill
4. Arthur's Pet Business – Marc Brown
5. Lemonade Stand – Geof White
6. Teen Entrepreneur Success Secrets: The Essential Guide To Starting And Growing A Business – Shonika Proctor
7. Teen Business Blasts Off! -- Andrea Davis Pinkney and Amy Rosen.
8. Kidpreneurs: Young Entrepreneurs with Big Ideas! -- Adam Toren.
2
ENTREPRENEURIAL READINGS
9. Upstarts: How Gen Y Entrepreneurs Are Rocking the World of Business and 8 Ways You Can Profit From Their Success – Donna Fenn.
10. Business Model Generation -- Alexander Osterwalder and Yves Pigneur.
11. The Young Entrepreneur’s Guide to Starting and Running a Business – Steve
Mariotti.
12. The New Totally Awesome Business Book for Kids – Authur and Rose Bochner.
13. Bitten by the Business Bug: Common Sense Tips for Business and Life from a Teen Entrepreneur – Jason O’Neil
14. Reallionaire: Nine Steps to Becoming Rich from the Inside Out – Farrah Gray
ENTREPRENEURIAL READINGS
15. You Call the Shots: Succeed Your Way-- and Live the Life You Want-- with the 19 Essential Secrets of Entrepreneurship -- David Bach
16. The Richest Kids In America: How They Earn It, How They Spend It, How You Can Too – Mark Victor Hansen
17. The 7 Habits of Highly Effective Teens: The Ultimate Teenage Success Guide –Sean Covey
# 18. Theodore Geisel “Dr. Seuss “ – The Sneetches, The Seven Lady Godivas, Bartholomeu and the Ooblick, If I ran the Circus, Horray for Diffendoofu Day.
#19. Stan and Jan Berenstain – Trouble with Money, Fly It, The Missing Watermelon Money, Mama’s New Job, The Summer Job.
3
When You Think of Entrepreneurs –Do You Imagine
When You Think of Entrepreneurs –Do You Imagine
YOUR SELF ?
4
Do You Have What It Takes To Be AnEntrepreneur
Activity 1
On Line Entrepreneur Quiz
1. http://www.bizmove.com/other/quiz.htm (10)
2http://testyourself.psychtests.com/bin/transfer?req=MnwzMDExfDQyNzUwODh8MXwxfDE=&refempt (37)
3. http://www.forbes.com/2010/08/02/entrepreneur-personality-quiz-thomas-harrison-entrepreneurs-management-serial-startups-10-quiz.html (31)
BENEFITS OF ENTREPRENEURS – ACTIVITY 2*
http://www.econedlink.org/tool/357/Entrepreneur-Video
Those who benefit from Entrepreneurial Activities:
1. The entrepreneur
2. Those who purchase the entrepreneur’s product
3. Those who provide resources to the entrepreneur
4. Those who are employed by the entrepreneur
5. Society as a whole
* Entrepreneurship Economics – CEE (2012)
5
CHARACTERISTICS OF ANENTREPRENEUR
1. Passion & Motivation2. Risk Taking3. Self-belief, Hard Working, Disciplined and Dedicated4. Adaptability & Flexibility5. Understand Offering – And Its Market6. Money Management7. Planning (But not Over-planning)8. Networking Abilities9. Being Prepared to Take the Exit10. Entrepreneurs Doubt Themselves – But Not Too Much
From Rags to Riches – ACTIVITY 3*
• Sam Walton
• William Durant
• Henry Ford
• Warren Buffett
• Amadeo Giannini
• Bank of America
• Berkshire Hathaway
• Walmart
• Ford Motor Co.
• General Motors
6
Born in 1918, I was an Eagle Scout at age 13. I played basketball at my Missouri High School and was a quarterback of the state champion football team. I earned a degree in economics at the state public university. My first taste of the retail world was a job with J.C. Penny in Des Moines, Iowa. I opened my first store in 1962 in Rogers, Arkansas.
Who am I? What Company Did I Start?
SAM WALTON
7
At age 6, I bought a six-pack of Coca Cola for $.25 and then sold each bottle for a $.05, earning a 5-cent profit on each six-pack. I bought my first stock at age 11, three shares at $38 that I later sold at $40. By age 17, I had earned $5,000 delivering newspapers. I went to college and became a stockbroker in Omaha.
Who am I? What is My Company?
WARREN BUFFETT
BERKSHIRE HATHAWAY
8
I quit high school to work in my grandfather’s lumberyard. At age 24 I started a horse-drawn carriage firm, “The Flint Road Cart Co.” I organized another company in 1908 which was taken by the bank in bankruptcy in 1910. Just one year later, I was able to regain this company. I did not want my daughter to ride in one of these stinky, loud, and dangerous contraptions.
Who am I? What is My Company?
WILLIAM DURRANT
GENERAL MOTORS
9
I started as a vegetable seller and started my own bank in 1904 to help fellow immigrants get their start in the U.S. When the San Francisco earthquake struck, I walked 17 miles to my bank, I found it relatively unharmed; but with fires raging I became concerned. I removed the gold and money from the vault and disguised it in orange crates and carted the vault contents to my home. This move kept my bank in business while others had to close.
Who am I? What is My Company
AMADEO GIANNINI
BANK OF AMERICA
10
I grew up on a farm and left home at the age of 16 to become an apprentice machinist. When I returned home, I worked on steam engines and farm equipment. I began experimenting on internal combustion engines and after two failed attempts began a successful company in 1903. Today many of the most successful companies have utilized my idea.
Who am I? What Company Did I
HENRY FORD
FORD MOTOR CO.
11
Entrepreneurial Web SitesAlternative Resources to Use in
Rags to Riches --Activity 3
1. www.History.com/shows,men-who-built-america
2. www.Ranker.com – in search engine type “entrepreneurs”
3. www.retireat21.com – listing of the top 20 young internet entrepreneurs under 21
4. www.incomediary.com – list of top entrepreneurs under 40
5. www.biography.com – search engine type “entrepreneurs”
6. www.hispanictrending.net – listing of top Hispanic entrepreneurs
7. www.blackentrepreneursprofil.com – listing to top African-American entrepreneurs
Choosing The Right Business Model
Sole ProprietorPartnerships
Corporation Franchise
12
Cost/Benefit Analysis Of : ? -- Activity 4*
Costs
1.
2.
3.
4.
5.
6.
Benefits
1.
2.
3.
4.
5.
6.
Finding the $ For Your Enterprise
13
THE IMPORTANCE OF CREDIT TO THE ENTREPRENEUR
http://www.econedlink.org/tool/360/Credit-Score-Video -- Videohttp://www.econedlink.org/tool/345/Earning-Credit -- On line Survey
The Five C’s of Credit:
1. Character -- The general impression you make on the prospective
lender or investor.
2. Capacity -- The ability to repay
3. Capital -- The money you personally have invested in the business
4. Collateral -- Additional forms of security you can provide the
lender
5. Conditions -- The intended purpose of the loan
YOUR FICO SCORE
14
F I C O NUMBERS
Excellent Credit: 750+Good Credit: 700-749Fair Credit: 650-699Poor Credit: 600-649
Bad Credit: below 600
Activities 5http://www.whatsmyscore.org/
Activity 6http://howmanyofme.com/
Thumbs Up/Thumbs Down -- Activity 7*
1. Patrice has had a credit card for three years. She took out a student loan four years ago, and she applied for and received a car loan last year. The balance on her student loan is $5,000, and her balance on the car loan is $6,000. She pays her credit card off each month. She has never been late on a payment on either of her loans or on her credit card.
2. Jerold has had two credit cards for three years. He also has a couple of student loans totaling $5,000, all of which he received last year. He applied for four credit cards last year, but was turned down. He was hoping to get at least one of those cards because his balances are up there – totaling $5,000 on the two cards. But his $10,000 in debt is only around 45 percent of his limit, and he’s never missed a payment, so he’s feeling pretty good about his money management skills.
3. Celia applied for and received her first credit card one year ago as she was entering college. She regularly carries a $2,000 balance on that card, which is 50 percent of her $4,000 credit limit. She’s never missed a payment; she’s never even been late.
15
RISK MANAGEMENT
PURE VS SPECULATIVE
CONTROLLABLE VS UNCONTROLLABLE
INSURABLE VS UNINSURABLE
WHAT TYPE OF RISK AM I ? – ACTIVITY 8*Pure/Speculative – Controllable/Uncontrollable – Insurable/Uninsurable
SHOPLIFTING __________________________________________________
DAMAGE FROM A STORM ______________________________________
CHANGE IN CUSTOMER DEMAND _________________________________
CYBER HACKING ________________________________________________
INCREASES IN BUSINESS REGULATIONS _____________________________
CREDIT CARD FRAUD _____________________________________________
EMPLOYEE THEFT ________________________________________________
CHANGES IN TECHNOLOGY ________________________________________
BOUNCED CHECK _______________________________________________
16
Controlling
Risk
AVOID
REDUCE
SHIFT
ASSUME
SUPPLY CHAIN AKA CHANNELS OF DISTRIBUTION
Raw
Material
Manufacturer
WholesalerService
Provider
Retailer
17
Supply Chain – Activity 9*
1. Copper Core is a mining company and one of the world’s largest suppliers of copper. Copper Core sells the Copper it mines to manufacturers across the globe at a competitive price. __________
2. Makro’s is a regional home improvement store that sells lumber, tools, garden supplies, appliances, etc. to residential and commercial clients across the United States.___________
3. Easy Air is a company the produces heating and air conditioning units. The company purchases some of its components from other manufactures. However, the majority are produced from scratch in-house.__________
4. H&C is a company that purchases heating and air conditioning units in large quantities that are then sold in smaller quantities to other stores at an increased price.__________
5. SureFreight is a shipping company whose core clientele consists of electronics and home improvement manufacturers and retailers.__________
TARGETING THE MARKEThttps://www.extension.purdue.edu/extmedia/ec/ec-730.pdf
PRODUCT PRICE
PROMOTIONPLACEMENT
18
THE BUSINESS PLAN
http://www.econedlink.org/tool/361/Business-Plan-Video
Why create a business plan?
1. Framework for developing a profitable business2. Business’s vision and goals3. Management Style & Structure4. Financial Plan 5. Strategies for building their business 6. Timelines for critical decision-making
The business plan is a living document that accommodates changes to the business over time and requires ongoing planning, development, implementation, and evaluation.
QUESTIONS
THANK YOU