financial literacy for middle school university school at university of tulsa presenters: katie...
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Financial Literacyfor Middle School
University School at University of Tulsa
Presenters: Katie Abercrombie, Kelly O’Neil-Brown, Marilyn Howard, and Cyndie Yocham
Income
Living Expenses
Jobs and Careers
Investments
Credit
History Lessons
Savings TaxesCharity FDIC & Banks
Checking Accounts
Income Spending Needs Money for Saving and Investments
Spring SemesterFall Semester
THE BIG PICTURE
Income
Living Expenses
Jobs and CareersInvestments Credit
History Lessons
Savings
Taxes
Charity
FDIC & Banks
Checking Accounts
Interest CalculationsBUDGETBUDGET
INCOME
What Is The Source of My Family’s Income
Income
JobsInterest and dividendsAsset appreciationGiftsBenefit paymentsRetirement payments
Jobs and CareersIncome
The best way to start….Self-InventoryMiddle School Self-AssessmentLearning Styles, Study Tips, and Career Key Assessment
Who Am I?
Jobs and CareersIncome
What is a job versus a career? Does education really pay?Family Career TreeCareer Clusters Interest Survey Job Application Resume using templates from Microsoft Word or Publisher
Income Spending Needs Money for Saving and Investments
THE BIG PICTURE
BUDGET
What Are Spending Needs?
How Does My Family Spend Money
Spending Needs
Fixed ExpensesHousingCarsTaxesInsuranceEmergency Fund
Variable ExpensesUtilities / FuelFood / ClothingHousehold itemsEntertainmentCharity My child said to
me , “Thank you, I had no
idea….”.
Checking AccountsSpending
Needs
Terminology Write a Check Void a Check Endorse a Check Deposit a Check Keeping a Ledger Excel Project: Create a Ledger
Mortgages and Loans Spending Needs
Mortgage Amount = $150,000 with a 5% rate of interestMonthly Principal & Interest
Extra Payment per month
Pay-Off Date
360 payments ($)
Total Interest Paid
$805.23 --- Jan 2041 $289,883.68 $139,883.68$100 Aug 2034 $255,278.48 $105,278.48
$200 Jul 2030 $235,035.40 $85,035.40
Cost of Credit CardsSpending Needs
Example: If you had a credit card balance of $2,000, an 18% APR, stopped using your card and made only the minimum monthly payment, which was based on 2% of the outstanding balance or $20, whichever was greater, how long would it take to pay off your debt and how much was the total payout? 19.3 Years for $5,862
Lesson learned: Always pay more than the minimum monthly payment!!!
TaxesSpending Needs
What are taxes and how are they used?
FederalStateLocal (City/Country)
Government BudgetsSpending Needs
RevenuesIncome TaxProperty TaxSales TaxFees / LicensesFICA
ExpendituresDifferences between private and public services
Income
Spending Needs
Money for Saving
and Investme
nts
THE BIG PICTURE
BUDGET
What Are Investment Needs?
Loan and OwnSavings and Investing
Interest Bearing Accounts & Bonds
StocksPropertyCollectibles
Interest Inco
me
Capital Gains/Loss
Dividends
What Are Savings?Savings and Investing
Criteria:Lower risk for lossPrincipal more stableLower return
Types:Bank accountsCertificates of depositsU.S. government bonds
The Magic of CompoundingSavings and Investing
When you save, you earn interest.
When you take the interest out and spend it, it stops growing.
But if you leave the interest in your account so it can grow, you start to earn interest on the interest you earned previously. This is called compounding.
Interest on interest is money you didn’t work for. It is money your money makes for you!
The Magic of CompoundingSavings and Investing
• Molly starts saving at age 25 and adds $2080 annually to her account and draws interest at a rate of 4.25% per year. • After 20 years, she has accumulated $104,900.72 with the compounding interest. She then leaves the money in the account for 20 years without adding any more money to the accumulated amount. • She lets the compounding work for her and after 20 more years she has accumulated $241, 156.93!• Marcus decides to wait for 20 years to start his savings and begins with the same amounts and rate-of-growth as Molly did 20 years earlier. •Only he is 45 years old when he begins his savings. At age 65, he has only $104,900.72.
Lesson: Start Early and Give Your Money Time To Grow
What Are Investments?Savings and Investing
Criteria:Higher risk for loss = can lose principalHigher potential return = can gain principal
Types:Private businessStocksCorporate/municipal bondsMutual fundsReal estateCollectibles
FDIC and BanksSavings and Investing
What is the FDIC?When and why?What are the current levels of protections?
BondsSavings and Investing
Government BondsFederalMunicipal (Muni’s)
Corporate Bonds
Interest CalculationsSavings and Investing
Rule of 72
Years to double investment = 72 / Rate of Return
Rate of Return Amount of Time to Double 3% 24 Years 9% 8 Years 12% 6 Years 6% 12 Years 8% 9 Years
StocksSavings and Investing
What are stocks?Brokers / exchanges/ indexesMacro-economic concepts: inflation / recessionPortfolio diversificationHow to research a stock
Mutual FundsSavings and Investing
What are mutual funds?Advantages and disadvantagesTypes of mutual fundsHow to research mutual funds
OCEE Stock Market GameSavings and Investing
Online student team competitionTeacher training seminars availableFall and Spring games 10 weeks
J.A. Investor ChallengeSavings and Investing
Simulated stock market trading floorTeam competition
History Lessons
• How Money Is Made videos series from Modern Marvels on History.com
• The Great Depression• The Oregon Trail Simulation• Current News Events
Links
General:http://www.moneyinstructor.com/ Lesson plans, templateshttp://finance.yahoo.com/http://money.cnn.com/magazines/moneymag/money101/ 23 Financial Life Lessonshttp://www.econisok.org/ http://www.councilforeconed.org/ Online teacher training, lesson plans, Gen-I gamehttp://tulsa.ja.org/ Junior Achievement programs, interactives
Budget:http://www.jumpstart.org/reality-check.html Interactive budget/life game
http://www.personalbudgeting.com/
Links (cont.)
Jobs and Careers:http://www.educationplanner.org/education_planner/discovering_article.asp?sponsor=2859&articleName=Self-Assessment_Quizhttp://www.educationplanner.org/education_planner/discovering_article.asp?sponsor=2859&articleName=Middle_School_Checklist
http://www.breitlinks.com/careers/career_pdfs/familytreews.pdfhttp://www.careerclusters.org/ccinterestsurvey.phphttp://education.yahoo.com/http://www.bls.gov/emp/ep_chart_001.htm
Credit Card:http://www.studentpirgs.org/truth-about-credit/
http://www.controlyourcredit.gov/#frontdesk/00 The Bad Credit Hotel Game
Links (cont.)
Savings and Investment:http://ocee-ok.net/ OCEE Stock Market Gamehttp://www.fdic.gov/about/learn/learning/index.html FDIC Learning Bank for studentshttp://www.sec.gov/investor.shtml SEC Education
Taxes:http://www.irs.gov/individuals/students/index.html Tax information for students
History Lessons:How Money Is Made (5 part series) by WealthyAmbitionsCom: http://www.youtube.com/watch?v=_ICXBNynyTU
PASS Objectives
http://www.moneyisok.org/index.html
• This site is designed for classroom teachers implementing HB 1476: Oklahoma’s Passport to Financial Literacy. Included on this site is a listing of teacher resources for the 14 areas of instruction required for high school graduation.
• The web site is provided by the Oklahoma Council on Economic Education (OCEE).
• OCEE is designated by the State of Oklahoma to provide training, materials and support for teaching personal financial literacy in our state. We work closely with the State Department of Education and other organizations to ensure teachers are prepared to help students learn how to make good choices that impact their financial success, today and tomorrow.
