4-H Future Millionaires

Presented by:

Neal Smith, Tonya Bain

and Nancy Rucker

4-H Future Millionaires

• Background– NASD Investor Education Foundation Grant

– Partnership with Tennessee, Kentucky, Michigan and Virginia

– Educational Modules related to Investing

– Youth Investor Clubs

– Interactive Website

– Targets High School Students

4-H Future Millionaires

• Educational Objectives:– Savings vs. Investing– Importance of Starting Early– Rule of 72– Goal-setting– Need vs. Wants– Credit– Stock market

Educational Modules

• Module 1 – “Buy into the Lottery”

• Module 2 – “Invest the Money”

• Module 3 – “The Value of Starting Early”

• Module 4 – “Rule of 72”

• Module 5 – “Personal Crest”

• Module 6 – “Making Choices”

• Module 7 – “Credit Card Secrets”

“Buy into the Lottery”

• Playing vs. Investing

• Attraction of the Lottery

• Risks Involved

• Advertised Winnings vs. Take-Home Amount

“Invest the Money”

• Return on Investment

• Advantages to Starting Early

• Initial Investment vs. Yield of Return

• Website Calculators Used to Show the Value of Compounding Interest

“The Value of Starting Early”

• Activity with rolls of pennies and jars

• Illustrates how money doubles over time

• Advantages of starting early

• Challenges of starting early

• “Where will I get the money to invest?”

“Rule of 72”

• Used to Calculate:– The number of years it will take to reach a

financial goal, based on a given interest rate– The amount of interest needed to reach a financial

goal during a certain amount of time

Money will Double (No. of Yrs.) =

72

Interest Rate

Rule of 72 Practice Chart

If $ _______, earning _____% per year, is invested

until age ____, beginning at age 18:

At age It will double By age 65, it will grow to

times about $

times about $

200 1065

2 800

60 7 12,80032

“Personal Crest”

• Identifies Goals:– Short-term– Intermediate– Long-term

• Possible Sacrifices

• Effect on Others

• “Put Your Thoughts into Writing”

“Making Choices”

• Needs vs. Wants

• Choices between:– Consuming– Saving– Investing

• Budgeting

“Credit Card Secrets”

• Credit Card Traps

• Credit Card Terms

• Video – “Charge It! Credit Card Secrets”

• Scenarios – “What Do You Do?”

“What’s Next?”

• Curriculum Release Date

• Planning Team

• Youth Investor Clubs

• Youth Financial Camp

• Interactive Website

• New NEFE High School Financial Planning Curriculum

Questions?