Laura Ewing President/CEO 1801 Allen Parkway, Houston, TX 77019 P: 713.655.1650 F: 713.655.1655 laura@econ

1. Helping young people learn to think, choose, and make better • economic and financial choices in a global economy Cindy Manzano Director of Smarter Texas 1801 Allen Parkway, Houston, TX 77019 C: 713.503.5338 F: 713.655.1655 cindy@economicstexas.org Laura Ewing President/CEO 1801 Allen Parkway, Houston, TX 77019 P: 713.655.1650 F: 713.655.1655 laura@economicstexas.org • www.economicstexas.org • www.smartertexas.org

2. Financial Fitness For Life • Spiraled Curriculum • Kindergarten – Grade 2 • Grades 3 – 5 • Grades 6 – 8 • Grades 9 – 12

4. Free lessons for grades 2-8 • Coming June 2014: Lessons for grades 2-3 funded by • Lessons for grades 4-6 funded by • Lessons for grades 7-8 funded by • www.smartertexas.org under Resource tab

5. St. Louis Federal Reserve

6. The TCEE programs are made possible by the following TCEE partners. EnviroChem Services, Inc. John Anderson Trout Foundation Less B. Fox RBC Wealth Management copyDR.

7. Personal Financial Literacy is making thoughtful, well-informed decisions about important aspects of finances. Why do we need it?

8. Nationwide Financial Capability Study Financial Industry Regulatory Authority in 2012: • 39% of individuals in Texas used a form of non-bank borrowing, i.e. an auto title loan, pay day loan, pawn shop loan, or other high interest uneconomical source of debt • 54% of individuals in Texas broke even or spent more than their annual income • 57% of individuals in Texas did not have enough money saved to cover expenses for three months • 67% of individuals in Texas scored 60% or less on a financial knowledge test, which comprised of questions regarding basic economics and finance concepts encountered in everyday life

9. Student Loan Debt • Average student loan debt • 2010 – $24,000 • 2011 – $25,250 • 2012 –$33,000 • Total student loan debt: • 2010 – 850 billion dollars • 2012 – over 1 trillion dollars

10. 2013 Student Loan Debt as Reported by Forbes • The total outstanding student loan balance is $1.2 trillion. • Reasons for rising student debt: • Rising cost of education • Students with little to no credit history are being approved for thousands of dollars • Students don’t understand the terms of getting a loan • Students did not save or plan for the cost of college • After graduation: • Loan debt exceeds annual salary • Many can’t find a job • Graduates are delaying buying a home or car • Unable to start a business • Unable to save for the future

11. . . . then why get a higher education? • The demand for higher education in the job market is increasing. • The potential to earn more increases as the level of education increases. • The percent of unemployment decreases as educational attainment increases. Higher education is still the best investment in your future.

12. TCEE: Grade 5, Lesson 1 The Case of the Disappearing Paycheck

13. TCEE created lesson Grade 5, Lesson 1 • PFL Math 5.10A: define income tax, payroll tax, sales tax, and property tax • PFL Math 5.10B: explain the difference between gross income and net income The Case of the Disappearing Paycheck

14. Write any word or phrase or draw a picture on each chart paper to show what you know about each tax. Word Splash

15. Create a tax flipbook • Number 1-4 The Case of the Disappearing Paycheck

16. Group 1 will become experts on income tax. • Group 2 will become experts on payroll taxes. • Group 3 will become experts on sales tax. • Group 4 will become experts on property tax. The Case of the Disappearing Check

17. Read the section about your tax category. • Discuss the important points about your tax category. • Create a visual on chart paper that communicates the important information about your assigned tax. • Plan your presentation. The Case of the Disappearing Paycheck

18. What points will you write in your flipbook? • Now that you know more about taxes, where does the money come from that one uses to pay taxes? The Case of the Disappearing Paycheck

19. Here’s what Mr. Cash made in a one week period. He worked 40 hours and made $14.50 per hour. This means that he earned $580.00 that week. His federal withholding tax was $47.00, Social Security tax paid was $35.96, and his Medicare tax contribution was $8.41. The Case of the Disappearing Paycheck

20. How much did Mr. Cash pay in taxes that week? • What was his final net income? • How did you determine his net income? The Case of the Disappearing Paycheck

21. TCEE: Grade 5, Lesson 3 Where Does All My Money Go?

22. TCEE created lesson Grade 5, Lesson 3 • 5.10D: develop a system for keeping and using financial records Where Does All My Money Go?

23. What is income? • What do adults do with their income? • How can a 5th grader earn income? Income

24. Income Expenses

26. A budget is a plan that shows how income will be used for expenses. When people plan how to use their income, they make better decisions that lead to financial success. Before people make a budget, they have to track their earnings and spending. Financial Records

27. 7 ways kids can earn money themint.org/kids

29. What can you do if the expenses are greater than the income? • Why is it a good idea for consumers to keep a record of their spending? Check for Understanding

30. What can you do if the expenses are greater than the income? • Why is it a good idea for consumers to keep a record of their spending?

31. People have unlimited wants but they have limited money. People cannot have everything they want. So they have to make choices. Scarcity

33. Creating Spending Diary

34. TCEE: Grade 5, Lesson 4 Money In, Money Out

35. TCEE created lesson Grade 5, Lesson 4 • PFL Math 5.10E: describe actions that might be taken to balance a budget when expenses exceed income • PFL Math 5.10F: balance a simple budget Money In, Money Out

36. Handsonbanking.org