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

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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

Greg.Valentine@aol.com

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.

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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.

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When You Think of Entrepreneurs –Do You Imagine

When You Think of Entrepreneurs –Do You Imagine

YOUR SELF ?

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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)

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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.

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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 _______________________________________________

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Controlling

Risk

AVOID

REDUCE

SHIFT

ASSUME

SUPPLY CHAIN AKA CHANNELS OF DISTRIBUTION

Raw

Material

Manufacturer

WholesalerService

Provider

Retailer

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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

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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