Financial Literacy Institute August 2013

1. Financial Literacy Institute August 2013 Melissa Groves mgroves@towson.edu Debbie Batchelor dbatchelor@towson.edu

2. Topics for Today Morning: Standards 3 & 4 Afternoon: Standard 6 Technology MSDE Credits Quiz Technology Training

3. Standard 3 HighlightsPlan and Manage Money Spending Plans Financial Services Develop Age-Appropriate Financial Goals Taxation Contracts

4. Standard 3 Develop Age-Appropriate Financial Goals WHAT ARE YOUR FINANCIAL GOALS ?

5. Drew Plans a Budget Decision-Making Spending Plan Goods/Services

6. Allowance Day Coins in my pocket dance around As I walk about the mall. Today was payday for my chores And I am walking tall. It seems the coins are pleading In their jingly, jangly voice: “Let’s buy a toy!”“Let’s buy some food!” How will I make a choice?

8. Be a Wise Consumer Financial Services

9. Financial Product Services offered at financial institutions such as CDs, Money Market Accounts, Savings Accounts, Loans, Mortgages, Credit Cards, Insurance, etc….

10. CD? Piggy Bank? Savings Account? Ari adds up all of the money that he receives for his birthday. Happily he finds that he has a total of $100, which is enough money for the bike that he plans to buy tomorrow.

11. CD? Piggy Bank? Savings Account? Every year for her birthday, Lakesha’s grandparents give her $100 to save for her future education. She wants to earn as much interest as she can on her money.

12. CD? Piggy Bank? Savings Account? Rachel receives $100 for her high school graduation. She plans to buy a television, but it will cost $200. Rachel figures that, with the money she earns at the her summer job, it will take her 2 months to save enough money for the TV.

13. Contracts Agreement between two or more people to do or not do something (Add “legally binding” when age-appropriate) Behavior Contract Student Name: Vinny BarbarinoRoom: 222 Vinnie Barbarino will demonstrate good behaviors each day at school. Vinnie is expected to follow the teacher's directions the first time she asks him to do something. He is expected to do so promptly and with a good attitude. Each time that Vinnie does not meet these expectations, he will receive a tally mark for the day on the tracking sheet. These tally marks will determine the rewards and consequences that Vinny receives, as shown below. Zero = A chance to roll the die after school for one of the rewards listed belowOne = Does not get a chance to roll the die that dayTwo or more = Loss of recess the next day and/or other consequences as determined by Mr. Kotter Die Rolls: 1 = One table point for his table2 = One raffle ticket for monthly class drawing3 = One piece of candy4 = Gets to be first in line for the next school day5 = Gets to help teacher after school that afternoon6 = Five marbles for the class marble jar We agree to the terms of this behavior contract as set forth above. Gabe Kotter Maria Babarino Vinnie Barbarino

14. What Are Taxes? History of taxes Meaning and purpose of taxes How taxes affect individuals Reasons for taxes

15. Standard 3Plan and Manage Money Lessons 6, 8, 15, 16 Lessons 4, 5, 6, 14, 15

16. Standard 4 HighlightsManage Credit and Debt Why Borrow? Sources of Credit Interest Payment Methods Credit Worthiness

17. Why Learn about Credit?

18. How Would You Like to Pay?Lesson 8 Sources of credit Payment methods

19. Credit is Based on TrustLesson 12 Credit Worthiness

20. Standard 6 HighlightsManage Risks and Preserve Wealth Insurance Advertising Fraud Identity Theft

21. Be a Wise Consumer Advertising

22. Advertising Techniques HUMOR: The ad makes a person smile so they are more likely to feel like buying the product. BANDWAGON: The ad states that “everyone” of any importance is buying the product therefore others should too. TESTIMONIAL: The ad uses a famous person or expert to convince people that a product is better than other products.

23. A Bonus Question!What advertising technique was used in this advertisement?

24. Federal Reserve Standard 1: Decisions Standard 2: Income Standard 3: Spending Plan ORDER NOW! https://www.newyorkfed.org/publiations/

25. A Kid’s Guide to Money Reinforces Standard 1: decision-making, opportunity cost, goal Addresses Standard 2: Relationships between skills and income (page 3) and Sources of income (page 3) To order go to: http://www.clevelandfed.org/learning_center/online_activities/great_minds_think/

26. Fun with Building WealthPiggy Bank Craft A shoe box Some pink paper Scissors Glue/tape Creativity

27. Lists standard Lists objectives Recommends materials to meet each objective The Matrix: How Does it Work?

28. http://www.mdfinancialskills.org/ • Click on: “Educational Resources” • Click on: Lessons Correlated to Objectives of MSDE • Personal Finance Standards (Grades 3-5) The Matrix: Where Can I Find It?

29. MSDE Credit Forms Must be filled out in ink Do NOT indicate credit on the form Enter information shown on the screen

30. …an online educational simulation that teaches about: the importance of saving and investing (Standard 5) • Participants develop skills in mathematics, language arts, research and critical thinking, while building and maintaining a stock portfolio. • Common Core connections! • Grades 4-12 (Materials are grade-band leveled.) http://www.youtube.com/playlist?list=PLkftEU1eG079xAfaSeAFpwWZXhd3o5RCJ

31. Coming Down the Home Stretch Part 1: Room 310 Complete quiz. Turn in ScanTron sheet MSDE Credit Form and Envelope Part 2: T. Rowe Price Finance Lab: Meet on 1st floor after quiz Please spread the word about the next class.