© Copyright All Rights Reserved William K. Busch/Kala Publishing 2017

Financial Literacy Solution

Resource Material User Notes

The files listed below are contained in the Toolbox folders on this CD. These are the most popular/often used by other TRiO programs to support and supplement your financial literacy offerings. The files are organized into two categories: General Resources (GR) and Learning Activities (LA). All of the files are in Adobe pdf format except for the Power Point presentation.

GENERAL RESOURCES FOLDER 1. MONEY RIDE “Financial Self Reliance” POWERPOINT SLIDE PRESENTATION This is the complete presentation. This was originally designed as a slide-by-slide complete curriculum guide to provide a visual bookmark from session to session. It can also be used for single/limited topic discussions by using one or a few slides. Slide #1 is a blank slide which you can use to create your own slide(s) to customize your introduction. Do not alter/edit presentation slides. MONEY RIDE POWERPOINT NOTES PAGES The slide presentation includes notes and script for each page. The notes and scripts pages are intended for study/training for presenters. Slide with bold white letter titles indicate a learning activity. Learning activity slides notes pages give concept and intro script…the actual activity details can be found in specific activity pdf in the Learning Activities folder on this CD. 2. MONEY RIDE TALK NOTES These are designed to support your Power Point Presentation and contain in outline format, the main talking points from the slides. Print these (two sided if possible) on 5x8 note cards and l suggest you laminate the cards for repeated use. 3. MONEY RIDE MONTHLY BUDGET SYSTEM This is a simple yet effective budgeting system which can be used as an extra “real world” project or a semester-long project. There is also a budget worksheet blank included which provides a format for tracking monthly budget results on an annual basis. 4. MONEY RIDE HANDOUTS These are the worksheets from the back of the teacher’s guide. 5. PRE-WORKSHOP SURVEYS -- Student & Parent Versions These are designed to collect participant data to help “customize” presentation content and/or to create “before & after” comparisons to gauge workshop impact. 6. YOUR FINANCIAL FUTURE DIAGRAM This is designed for TRiO staff to create a “big picture” perspective on the financial journey through life we all face and the various financial planning concerns and strategies that can come into play along the way. This is suitable for 12th grade and above…don’t try to cover the detail, just give students the big picture and let them research the detail on their own.

LEARNING ACTIVITIES FOLDER

There are nine learning activities positioned throughout the Power Point presentation. There is a separate explanation in this folder for each of the activities EXCEPT the “Bank of You” activity which is fully explained in the Power Point slide notes page.

Personal Finance Workshop

Student Survey

Your responses to this survey will help us provide you with valuable information on

managing your personal finances and achieving financial goals. Your answers help us present the information in a way that is relevant to both your situation and

higher education goals. Your identity will remain confidential…please do not write you

name on this survey.

1. What is your age group?. (check one box) 15 ___ 16___ 17___ 18___ 19 and over ___

2. What is your gender?

Male ___ Female ___

3. What is your current year in school?

7-8 ___ 9 ___ 10___ 11 ___ 12 ___

4. Have you ever had a job where you earned a wage?

No ___ Yes ___

5. What is the highest hourly wage level you have been able to earn?

(check one) Less than minimum wage ___ Minimum wage ___

More than minimum wage ___

6. Are you currently employed?

No ___ Yes ____

7. Do you have a bank account? (check all that apply)

No ___ Yes/checking ___ Yes/savings ___

8. Do you pay your own monthly living expenses (food, car, rent, etc.)?

(check one) No ___ Yes/some of my expenses ___ Yes/all of my expenses ___

9. How confident are you in your ability to manage monthly

household finances (e.g. bank accounts, budget, etc.) (check one)

Not Confident ____ Fairly Confident ____ Very Confident ____

10. How many immediate family members have attended college?

(check all that apply) None ___ One Parent ___ Both Parents ___

One brother/sister ___ More than one brother/sister ___

11. Have you discussed with your parents the challenges, options and the

responsibilities for paying for college?

Yes____ No____

Student Survey (cont.)

12. Do you personally currently owe money on any of the following forms of

debt? (check all that apply)

Car loan ___ Credit card ___ Personal loan (family member/friend) ___

13. How confident are you about your knowledge of how college/student loans

work financially (e.g. amounts, available, interest, payments)? (check one)

Not Confident ___ Fairly Confident ___ Very Confident ___

14. Have you previously completed or are you now enrolled in school course on

economics or personal finance?

No ___ Yes ___

15. How strong of an influence has each of the following sources been on what

you know about money and financial matters? (Rate each source 0-5

with 0 being the weakest and 5 being the strongest).

Family members ____ Employer ____

School courses ____ Media (TV, Radio, Newspapers) ____

Friends ____ Internet Sites ____

16. To what degree would you say you know the approximate total cost to

attend college for four years? (check one)

I have: A very good idea of the cost ___

Somewhat of an idea of the cost ___

No idea of the cost ___

17. How confident are you about your knowledge of the application process for

college/student loans? (check one)

Not Confident ____ Fairly Confident ____ Very Confident ____

18. How interested are you in the general topic of money & finance? (check one)

Not Interested ___ Somewhat Interested___ Very Interested ___

19. How often do you discuss money/financial topics/issues/concerns with your

parents? (check one)

Often ___ Occasionally___ Never ___

20. Which of the following financial topics would you like to learn more about?

Budgeting ___ Saving ___ Investing ___ Credit Cards ___ Taxes ___

Car Loans ___ Home Loans ___ Stocks ___ Real Estate ___

Thank you for your participation.

We look forward to seeing you at the workshop!

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© Copyright All Rights Reserved William K. Busch/Kala Publishing 2000-2016

®® Financial Literacy Solution

Presentation Outline Notes

1. HAVE YOU BEEN TO DISNEYLAND?

BIG BOX BUILDING / “IN” & “OUT” DOORS

ROLLER COASTER / WIND TUNNEL / TRILLIONS $

YOU GET TO KEEP ALL THE MONEY YOU CAN GRAB!

2. THE RIDE RULES

THE “GRABBING RULES”

H.S. DROP OUT -- HANDS IN POCKET

H.S. GRAD -- HANDS OUT OF POCKET

COLLEGE -- SMALL NET / BIGGER NET / BIGGEST NET

3. THE RIDE RULES TELL YOU WHAT?

FORMAL EDUCATION VS. INCOME (U.S. KEEPS TRACK)

LIKE GETTING PAID TO GO TO SCHOOL

DO YOU REALLY GET PAID TO GO TO SCHOOL?

DEFERRED VS. CURRENT INCOME -- PRO ATHLETES /EXECS

DROP OUT & LOSE $350,000

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© Copyright All Rights Reserved William K. Busch/Kala Publishing 2000-2016

6. THE OPPORTUNITY VEST

PLACE TO STASH CASH- CUSTOM FITTED

SPEND/SAVE/INVEST/PROTECT/BORROW

5 DOMAINS OF FINANCIAL CHOICES & DECISIONS

POCKETS ARE INTERACTIVE & DYNAMIC -RIPPLE EFFECT

FORMAL EDUC. & WEALTH – NO CORRELATION

MONEY I.Q. IS THE MISSING LINK

GAME OF ADD/SUBTRACT/MULTIPLY/DIVIDE

MONEY DECISIONS HAVE SHORT & LONG TERM IMPACT

SAVINGS /OPPORTUNITY COST/GROWTH

7. SPEND POCKET

“TO SPEND OR NOT TO SPEND”- SHAKESPEAR ECONOMIST

PAW & MAW / SPEND LESS THAN YOU EARN

BUD WILL HELP YOU GET FROM PAW TO MAW

BUDGET IS A “WEALTH BRIDGE” ACROSS THE CHASM CFD

BUDGET = D2

8. SAVE POCKET

SPEND POCKET OVERFLOW - FIRST MAW DOLLARS

SAVE=SAFE LOW RISK / HIGH LIQUIDITY

SAFTEY NET DOLLARS / EMERGENCIES & OPPORTUNITIES

HOW MUCH/HOW SOON/HOW LONG/WHERE

FV=P(1+i)N

MOBILITY MONEY - 6 MONTH CUSHION

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© Copyright All Rights Reserved William K. Busch/Kala Publishing 2000-2016

9. INVEST POCKET

PRIMARY MAW WEALTH-BUILDING POCKET

MORE RISK LESS LIQUIDITY / TIME MITIGATES RISK

OWNERS VS. CONSUMERS - ECONOMIC PARTICIPATION

OWNERS VS. LOANERS - 2 WAYS TO INVEST

HOW MUCH /HOW SOON/HOW LONG/WHERE

10. PROTECT POCKET

THIS POCKET “HAS YOUR BACK”

EVERYBODY IS 100% COVERED - WHO’S THE INS. CO.?

LIKE FLIPPING A COIN.

SHIFTING RISK OF LOSS - PURCHASING INSURANCE

FULL REPLACEMENT COST

CO-PAY’S & DEDUCTIBLES = SHARED RISK & LOWER PRICE

11. BORROW POCKET OPM – OTHER PEOPLE’S MONEY

HOW BANKS “MOVE MONEY”--FROM DEPOSITS TO LOANS

GOOD DEBT VS. BAD DEBT- 3 CRITERIA

ECON. ADVANTAGE / AFFORD PMTS./ PAY OFF CAPACITY

BAD DEBT $ WRAPPED IN A BRICK- DEBT VS. MOBILITY

STUDENT LOANS - GOOD DEBT OR BAD DEBT?

YOUR FICO SCORE-LIFETIME MONEY SAT TEST

Name: _______________________________________C

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The Money Ride Opportunity Vest

Career: _______________________________________________

Salary: ____________________ Tax rate (%): _________ Monthly Take-Home: _____________________

SAVE

PROTECT

BORROW

INVEST

SPENDGONE

2

© Copyright 2000-2017 William K. Busch/Kala Publishing All Rights reserved

Your Budget System in Action Now, let’s look at how to put your budget system to work building your “Wealth ridge” from PAW to MAW. This is a manual system by design. Computers, smart phones and websites are convenient and useful for organizing and analyzing financial data. However, initially tracking your money activity by hand will help you develop the discipline needed to make budgeting a habit. One exception to this is managing your bank account if you use checks… this is discussed at the end of the budgeting process. Remember the formula: Budget=D2…the success of your BUDGET will EQUAL your ability to exercise DISCRETION in your spending choices and your ability to develop the DISCIPLINE to stick with the system. Follow the system exactly as it is described below for 90 days before you consider making any personal changes. Here are the budgeting steps: 1. Place your “Bill Board” in a high traffic area where you will see it at least a couple of times every day as you come and go….kitchen counter, bed room dresser, etc. a.) Save every source document from every transaction you do, no matter how small

the transaction amount. Keep every credit and cash receipt, ATM and bank deposit slips and pay check stubs…every piece of paper for every dollar earned, saved, spent and invested. b.) Stick each source document on the appropriate nail on you Bill Board as follows:

1. CASH nail -- Receipts from transactions where you paid with cash, check, debit card, prepaid credit cards, gift cards or any other cash equivalent. 2. CREDIT nail -- Receipts from transactions where you paid with a credit card, or any form of loan. 3. BANK nail -- Deposit and ATM slips, but not checks For any transaction where you do not receive a source document, create one using a small piece of paper listing the amount, and type (cash/credit/bank) . Additionally, if it is not obvious from the source, it will be helpful if you take time to note on each document the specific category for a transaction such as “food”, “car”, “gift”, etc. 3. At the end of the month, using your monthly budget sheet:

a.) Take the receipts from your Bill Board and list the category and amount for each source document in the appropriate quadrant on your budget sheet. b.) Calculate the total for items in each quadrant and enter total at the bottom of the section. Calculate the total for the two NEEDS (fixed & variable) quadrants and enter at the bottom left column. Calculate the total for the two WANTS (fixed & variable) quadrants and enter at the bottom right column c.) Enter your “take-home” pay for the month on the first line at the top of the sheet right of the sheet: “TOTAL NET PAY”.

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© Copyright 2000-2017 William K. Busch/Kala Publishing All Rights reserved

Calculate the combined total for NEEDS and WANTS from the bottom of the sheet and enter on the second line at the top of the sheet at : “TOTAL EXPENSES”. Subtract TOTAL EXPENSES from TOTAL NET PAY and enter result on the third line at the top of the sheet :”SURPLUS/SHORTAGE +/--“. If your NET is positive, you have generated a SURPLUS for saving and investing. If your NET is negative you have generated a SHORTAGE and have insufficient money to pay all expenses. Now, you either msut borrow to pay expenses or reduce expenses . 4. Using your Monthly Budget Folder:

a.) Enter the amounts for TOTAL NET PAY, TOTAL EXPENSES and SURPLUS/SHORTAGE in the appropriate columns on the outside of the folder.

b.) Put all of your source documents in the monthly receipts envelope and place the envelope along with your monthly budget sheet in the folder.

CONGRATULATIONS!...you have now completed your first monthly budget cycle and taken your first big step towards financial self-reliance! You can now continue to use the system comparing your money behavior from month to month. This structure and process will enable you to chart your progress toward reaching your personal financial goals” Managing Your Bank Account Managing your bank accounts is not, by itself, the same thing as budgeting, but it does play an important role in the budgeting process. In order for a budget to work, you must always know how much cash is actually available in your bank account and it’s called your “bank balance”. There are two separate views of your bank balance: your digital view from your computer or smart phone and the bank’s view from the monthly bank statement. Internet banking is useful for tracking you bank balance in real time, but be aware that there is typically a timing difference between the account value/balance you see on your smart phone or computer compared to how much money is really in your bank account. The timing difference occurs because there is a time delay from when you use a check or debit card or make a deposit to when the bank records/posts the transaction data. With check deposits, the deposit amount may or may not be immediately available for you to spend because the check amount must be s actually paid to your bank by the bank from which it is written…called “clearing a check”. These unrecorded transactions are called “outstanding items”. The delay in recording outstanding items can all cause your bank account to be temporarily overdrawn/out of money. This typically happens when people use checks, debit & ATM cards and recent deposit amounts to spend money falsely assuming that the bank balance they see on their smart phone or computer is accurate.