Personal Finance

1. Help! I’m out of money! Personal Finance Created by Camille Krum

2. Activity: How Much Do They Make?

3. Earning Spending Credit Income Credit Cards Careers Expenses Variable Fixed Differential

4. Earning Careers

5. Learn and Earn

6. How much is your time worth?

7. Earnings • The average earnings of college graduates in 1996 were 55% higher than those of high school graduates. • The average income for a family headed by a high school graduate declined 4.5% between 1973 and 1996. • During that same time (1973-1996), the income of families headed by college graduates grew 13.8%. • During that same time, the earnings of families headed by a parent who went to school beyond a college degree rose 38.8%.

8. Activity How Much is Class Attendance Worth? Do you get tired of going to class every day? Complete the assignment and see what the value of a day’s education is over a 40-year work life. How much is attending each class really worth?

9. Millionaire Game Hold up a true or false card. Include a Millionaire Card if you are sure your are correct. • Most Millionaires are college graduates. • Most millionaires work fewer than 40 hours a week. • More than half of all millionaires never received money from a trust fund or estate.

10. Millionaire Game • More millionaires have American Express Gold Cards than Sears cards. • More millionaires drive Fords than Cadillac's. • Most millionaires work in glamorous jobs, such as sports, entertainment, or high tech. • Most millionaires work for big Fortune 500 companies. • Many poor people become millionaires by winning the lottery.

11. Millionaire Game • College graduates earn about 65 percent more than high school graduates. • If an average 18-year-old high school graduate spends as much as an average high school dropout until both are 67 years old, but the high school graduate invests the difference in his or her earnings at eight percent annual interest, the high school graduate would have $5,500,000.

12. Millionaire Game • Day traders usually beat the stock market and many of them become millionaires. • If you want to be a millionaire, avoid the risk stock market. • At age 18, you decide not to by fountain drinks and save $1.50 a day. You invest the $1.50 a day at eight percent annual interest until you are 67. At age 67, your savings from not drinking soda are almost $300,000.

13. Millionaire Game • If You save $2,000 a year from age 22 to age 65 at eight percent annual interest, your savings will be over $700,000 at age 65. • Single people are more often millionaires than married people.

14. Spending Income Expenses Variable Fixed Differential

15. Lifestyle costs • Where you live • Clothes • Food • Transportation • Entertainment • Vacations • Other costs-car repairs insurance

16. Reality Check Take the reality check quiz online to see what your life style choice requires you to earn per hour. URL: http://www.jumpstart.org/madmoney/pgv_money_rc_main.html

17. Activity: Cookie Monster • Select student to be employee • Select student to be State Tax collector • Select student to be Social Security Tax collector • Select student to be Federal Tax collector • Select student to be Health Insurance collector • Select student to be Life Insurance collector • Select student to be Donation collector

18. REALITY BITES Do you know where your money goes? Identify your spending traps— For the next two days keep a spending log. Record everything you spend.

19. Financial Goals Short term goal—pay for immediate needs such as school, entertainment, clothes, etc. Medium term goal—college education, cars, vacation. Long term goal—retirement plans, change in career, travel

20. Activity: Road Map to Spending • Divide into groups of three. In two minutes list as many items as they can in the following categories: • Fixed Expenses • Variable Expenses • Differential Expenses • Each student completes A Road Map For Spending

21. Budget Go to computers in groups of three—if not enough computers for all students. Go to web site and select career and salary from list. Go to “Where does your salary go” and complete the activity.

22. Credit Credit Cards

23. Three C’s of Credit • Character—borrower’s willingness to pay you based on past history paying back loans • Capability—ability to pay back money borrowed • Collateral—property used to cover amount owed if fail to pay back money • Group students to do scenarios

24. A Credit Check Perhaps you have not developed a personal credit history, but you do have a personal education performance history that reflects similar behavior patterns. On a piece of paper, answer the following questions: • Number of times you have missed class this semester. • Number of times you have been tardy this semester. • How many times have you turned in late assignments this semester.

25. How many times have you turned in incomplete assignments this semester? • How many times have you not turned in an assignment at all this semester? • How many times have you been asked by the teacher to change or improve your behavior in class this semester? • How many times have you forgotten to bring the required materials (pencil, disk, notebook, etc.) to class this semester?

26. TOTAL (Add the numbers listed for 1-7 above) How did you do? 4 or less…………… Credit Granted!! 5o-7 ……………… You are going to need a cosigner 8 or more………… CREDIT DENIED!

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37. Credits and Referencs www.themint.org www.jumpstartcoalition.org