Calculating Your Future: Personal Finance

Calculating Your Future: Personal Finance

New Module on Financial LiteracyNew Module on Financial Literacy

Session AgendaSession Agenda

• Welcome and Rationale

• Calculating Your Future Module Overview

• Sample Session from Activity 4: Borrowing for the Future: Managing Credit and Debt

• Panel Discussion: Highlights and Challenges from Calculating Your Future Pilot Teachers and Students

• Welcome and Rationale

• Calculating Your Future Module Overview

• Sample Session from Activity 4: Borrowing for the Future: Managing Credit and Debt

• Panel Discussion: Highlights and Challenges from Calculating Your Future Pilot Teachers and Students

“The financial preparedness of our nation's youth is essential to their well-being and of vital importance to our economic future." 

—Ben Bernanke, Chairman of the Federal Reserve

“The financial preparedness of our nation's youth is essential to their well-being and of vital importance to our economic future." 

—Ben Bernanke, Chairman of the Federal Reserve

Making The Case For Calculating Your FutureMaking The Case For

Calculating Your Future

• Finance knowledge and skills are now included in many state and national business education standards

• Three states now require at least a one-semester course devoted to personal finance. (Tennessee, Missouri, Utah)

• Fifteen other states require personal finance instruction incorporated into other subject matter.

• Finance knowledge and skills are now included in many state and national business education standards

• Three states now require at least a one-semester course devoted to personal finance. (Tennessee, Missouri, Utah)

• Fifteen other states require personal finance instruction incorporated into other subject matter.

Calculating Your Future Module Overview

Calculating Your Future Module Overview

• Twelve-to-eighteen week (semester-long) module for grades 11 and 12 (may also be suitable for grade 10)

• Academic Areas: Business, Mathematics, Economics

• Twelve-to-eighteen week (semester-long) module for grades 11 and 12 (may also be suitable for grade 10)

• Academic Areas: Business, Mathematics, Economics

Content FocusContent Focus

• Essential concepts in financial planning: opportunity cost, gross and net income, savings and interest, credit and debt, investment and risk, insurance

• Fluency in reading and comprehending financial documents, including paystubs, credit card statements, and contracts

• Mathematical operations and reasoning applicable to financial decision-making

• Essential concepts in financial planning: opportunity cost, gross and net income, savings and interest, credit and debt, investment and risk, insurance

• Fluency in reading and comprehending financial documents, including paystubs, credit card statements, and contracts

• Mathematical operations and reasoning applicable to financial decision-making

Mathematics Learned and Applied Mathematics Learned and Applied

• Basic Computation and Estimation

• Functions

• Data Analysis and Probability

• Problem Solving

• Basic Computation and Estimation

• Functions

• Data Analysis and Probability

• Problem Solving

Ongoing Project: Financial Living

Ongoing Project: Financial Living

Each Financial Living team receives a profile of a fictional character and:

Sets financial goals for their character and creates a financial plan to meet those goals

Develops spreadsheets to create and manage a monthly budget and spending plan for character

Adjusts spreadsheets to manage debt, savings, and investments as well as to respond to unexpected events

Each Financial Living team receives a profile of a fictional character and:

Sets financial goals for their character and creates a financial plan to meet those goals

Develops spreadsheets to create and manage a monthly budget and spending plan for character

Adjusts spreadsheets to manage debt, savings, and investments as well as to respond to unexpected events

Activity 1: The Value of MoneyActivity 2: Dollars and “Sense”:

Introduction to Money Management

Activity 3: For Safekeeping: The Growing Interest in Banking

Activity 4: Borrowing for the Future: Managing Credit and Debt

Activity 5: Risk and RewardActivity 6: Planning Ahead

Calculating Your Future Activities at a Glance

Calculating Your Future Activities at a Glance

Marcella is a senior in high school. The prom is one week away, and she still doesn’t know what she’s going to wear. She’s saved up $150 to buy her outfit. She goes to the popular Paymor Boutique and sees an outfit that is perfect, except that it costs $225. The store manager tells Marcella that if she applies for the store’s credit card and uses it for this purchase, she can get 20% off the price. What should Marcella do? What would YOU do? Would you apply for the credit card and buy the outfit? Or would you keep shopping? Why?

What Would You Do? What Would You Do?

Marcella decides to go ahead and apply for the credit card and purchase the outfit. And while she’s at the boutique, she figures it’s convenient to also buy some shoes and accessories with her new credit card. A week later, she goes to the prom and has a blast. (And she looks fabulous, too!) As she’s busy enjoying her last summer before college, Marcella doesn’t bother to read her mail. Finally, at the end of July, her mom asks Marcella to clear up a pile of mail that she’s neglected to open. In that pile are two credit card statements.

What Does Marcella Do? What Does Marcella Do?