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Financial Literacy for Financial Literacy for TeensTeens

WhyWhy Teach Financial Teach Financial Literacy?Literacy?

One third of high school seniors already use One third of high school seniors already use credit cards.credit cards.

65% of college students carry credit card debt…with 65% of college students carry credit card debt…with more than half of those students charging their cards more than half of those students charging their cards to the limit.to the limit.

College presidents tell us that they lose more students to College presidents tell us that they lose more students to credit card debt than to academic failure.credit card debt than to academic failure.

The number of 18 to 24-year-olds declaring bankruptcy The number of 18 to 24-year-olds declaring bankruptcy has increased 96% over the past 10 years. has increased 96% over the past 10 years.

Global Financial Crisis of Global Financial Crisis of 2008 2008

How Did This Happen?How Did This Happen?

Who are these people Who are these people making so many horrible making so many horrible

financial decisions?financial decisions?

They are the parents of the students They are the parents of the students who walk into your schools every who walk into your schools every day!day!

They are the ‘financial choices’ role-They are the ‘financial choices’ role-models for your students.models for your students.

They are what your students will They are what your students will become if financial education isn’t become if financial education isn’t part of every student’s learning part of every student’s learning process.process.

The global financial crisis The global financial crisis

of 2008 will certainly repeat of 2008 will certainly repeat itself if we do not break the itself if we do not break the cycle of financial cycle of financial illiteracyilliteracy! !

Financial Literacy for TeensFinancial Literacy for Teens

Curriculum ResourcesCurriculum Resources

Student BookStudent Book

Teacher’s GuideTeacher’s Guide

DVDDVD

Pre/Post TestPre/Post Test

Financial Literacy for Teens – Pre/Post AssessmentFinancial Literacy for Teens – Pre/Post Assessment

Test Time!

Making MoneyMaking MoneyThe average career will last The average career will last approximately how many hours of approximately how many hours of

your lifetime?your lifetime?

A.A. 86,000 hours86,000 hours

B.B. 18,000 hours18,000 hours

C.C. 8,600 hours8,600 hours

D.D. 32,000 hours32,000 hours

The average Social Security The average Social Security payment a person currently payment a person currently receives per month is _______.receives per month is _______.

A.A. $1,280$1,280

B.B. less than $1,000less than $1,000

C.C. 28% of their monthly expenses28% of their monthly expenses

D.D. enough to cover 75% of their bills enough to cover 75% of their bills

Teenagers spend Teenagers spend approximately __________ total approximately __________ total dollars every year.dollars every year.

A.A. $100 million$100 million

B.B. $750 million$750 million

C.C. $175 billion$175 billion

D.D. $220 billion $220 billion

Approximately how long will it take to Approximately how long will it take to pay off $1,000 in credit card debt if pay off $1,000 in credit card debt if your interest rate is 18% and you only your interest rate is 18% and you only make the ‘minimum payment’ each make the ‘minimum payment’ each month? month?

A. 30 yearsA. 30 years

B. 8 yearsB. 8 years

C. 20 yearsC. 20 years

D. 10 years D. 10 years

The money you make at your job The money you make at your job every day is called _________.every day is called _________.

A. unearned incomeA. unearned income

B. earned incomeB. earned income

C. disposable incomeC. disposable income

D. limited incomeD. limited income

How long does it take most How long does it take most

lottery winners to go broke?lottery winners to go broke?

A.A. 10 years10 years

B.B. 18 months18 months

C.C. 5 years5 years

D.D. 2 years2 years

What percentage of bankruptcies What percentage of bankruptcies

are filed as a result of medical are filed as a result of medical bills?bills?

A.A. 40%40%

B.B. 20%20%

C.C. 35%35%

D.D. 9%9%

If you think someone is trying to If you think someone is trying to scam scam

you on the internet, you should you on the internet, you should contact contact

the __________. the __________.

A.A. FDAFDA

B.B. DEADEA

C.C. FTCFTC

D.D. IOC IOC

What is the number one common What is the number one common denominator of financially denominator of financially successful people?successful people?

A.A. a college degreea college degreeB.B. rich parentsrich parentsC.C. straight A’s in high school straight A’s in high school D.D. worked part-time as teenagers worked part-time as teenagers

FICA is deducted from your FICA is deducted from your paycheck before you get it. FICA paycheck before you get it. FICA stands for _________.stands for _________.

A.A. Federal Insurance Contribution ActFederal Insurance Contribution Act

B.B. Federal Institute of Capital AssociationFederal Institute of Capital Association

C.C. Federal Interest Collection ActFederal Interest Collection Act

D.D. First Interest Capitalization AssociationFirst Interest Capitalization Association

Making MoneyMaking Money

Four ways to get it…$$$$ Four ways to get it…$$$$

Earn It Earn It

Marry It Marry It

Inherit ItInherit It

Steal It!Steal It!

Managing MoneyManaging Money

SpendSpend

SaveSave

GiveGive

Multiplying MoneyMultiplying Money

Make Money While You SleepMake Money While You Sleep

Protecting MoneyProtecting Money

Insurance EssentialsInsurance Essentials

Have You Ever Been Have You Ever Been Busted?Busted?

Learning OutcomesLearning Outcomes

Students will understand:Students will understand: The difference between needs and wantsThe difference between needs and wants The realities and dangers of credit card debtThe realities and dangers of credit card debt How Medicare and Social Security workHow Medicare and Social Security work The power of saving money at an early ageThe power of saving money at an early age The concept of making money while asleep The concept of making money while asleep A general concept of income taxesA general concept of income taxes Common traits of financially successful peopleCommon traits of financially successful people Insurance essentials – renters, health, and autoInsurance essentials – renters, health, and auto The importance of giving backThe importance of giving back How to develop good spending habits How to develop good spending habits

Questions Regarding Speaking Questions Regarding Speaking Presentations…Presentations…

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