Mike Raymer Program Manager

1. Mike RaymerProgram Manager Investor Education Financial Fitness for Lifeand

2. The Mission To help teachers teach those students, K-12, in the public and independent schools of Georgia Georgia Council on Economic Education w w w . g c e e . o r g

3. Productive Workers Informed Consumers Involved Citizens Prudent Savers Wise Investors Sound lifelong decision makers in a globally interdependent world The Vision Students leaving school prepared for their roles as: Georgia Council on Economic Education w w w . g c e e . o r g

5. The Problem of Economic and Financial Literacy… Georgia Council on Economic Education w w w . g c e e . o r g

6. Saving is a very fine thing. Especially when your parents do it for you.--Sir Winston Churchill Georgia Council on Economic Education w w w . g c e e . o r g

7. About 8 of 10 Americans are comfortable with the level of financial planning they are currently doing. Source: Federal Reserve Bank, St. Louis Georgia Council on Economic Education w w w . g c e e . o r g

8. 34% have not begun to prepare for retirement. 23% save nothing for long term goals. 25% do not know how much they are saving. Georgia Council on Economic Education w w w . g c e e . o r g

9. On average, Americans expect to retire at age 61 and live to 83. Georgia Council on Economic Education w w w . g c e e . o r g

10. Overall levels of economic understanding are low. (Average score of 23.85 out of 40 in recent national tests.) Many young people and their teachers hold stereotypes about the wealthy. Georgia Council on Economic Education w w w . g c e e . o r g

11. (Failed to plan for his financial future) Georgia Council on Economic Education w w w . g c e e . o r g

12. Personal Bankruptcies Source: Federal Reserve Bank, St. Louis Georgia Council on Economic Education w w w . g c e e . o r g

13. Bankruptcy Rates, 2009

14. Georgia Bankruptcy Rates by County, 2009

15. Personal Bankruptcy Filings, 2009 Georgia Council on Economic Education w w w . g c e e . o r g

16. Foreclosure Rates are Way Up Georgia is 6th in the Nation Georgia Council on Economic Education w w w . g c e e . o r g

17. National Foreclosure Rates, 2009

18. Mortgage Delinquency Rate

19. Mortgage Delinquency Rates

20. Consumer Debt Source: Federal Reserve Bank, St. Louis Georgia Council on Economic Education w ww . g c e e . o r g

21. Credit Card Use Source: Federal Reserve Bank, St. Louis Georgia Council on Economic Education w w w . g c e e . o r g

22. Credit Card Use in Atlanta Source: Federal Reserve Bank, St. Louis • Average Atlanta – 3 open credit cards (down from 4 in 2007), but total balance on cards is higher • Across 20 metro areas – • Atlanta is #1 with avg balance at $6,753 • In 2007 it was $7,114 • Credit Scores in Georgia below the national average Georgia Council on Economic Education w w w . g c e e . o r g

23. Credit card companies have been marketing aggressively to young people. 11.1 % of teens have a credit card. (JA, 2005) High School Students and Credit Cards Georgia Council on Economic Education w w w . g c e e . o r g

24. College students report having an average of 4.6 credit cards. Half have four or more. Seniors graduate with more than $4,100 in credit card debt, up from $2,900 in 2004. Only 17% said they regularly paid off all the cards each month. The remaining 82% carried balances and incurred finance charges each month. 84% said they need more education on financial management topics. College Students and Credit Cards (Sallie Mae, 2009) Georgia Council on Economic Education w w w . g c e e . o r g

25. Unbanked Households(Federal Reserve Bank of Chicago) About 10 million households are unbanked. Over 57% of unbanked households are minority households. Georgia Council on Economic Education w w w . g c e e . o r g

26. What Does It Mean to be “Unbanked?” Georgia Council on Economic Education w w w . g c e e . o r g

27. Where Do the Unbanked Go For Financial Services? Georgia Council on Economic Education w w w . g c e e . o r g

28. Unemployment Georgia Council on Economic Education w w w . g c e e . o r g http://abcnews.go.com/Business/fullpage?id=9549471

29. So What Can We Do About All of This? Option #1 Georgia Council on Economic Education w ww . g c e e . o r g

30. Option #2 Georgia Council on Economic Education w w w . g c e e . o r g

31. Financial Fitness for LifeTable of Contents Theme 2 Why Education Pays Off: Learn Something 4. Job Application Process 5. Making a Job 6. Why Some Jobs Pay More than Others 7. Uncle Sam Takes a Bite Theme 1 Why There is No Such Thing as a Free Lunch? 1. How to Really Be a Millionaire 2. An Economic Way of Thinking 3. Decision-Making Georgia Council on Economic Education w w w . g c e e . o r g

32. Financial Fitness for LifeTable of Contents Theme 3 Getting to the End of the Rainbow 8. What’s the Cost of Spending and Saving?* 9. There is No Free Lunch in Investing 10. Investment Bingo Georgia Council on Economic Education w w w . g c e e . o r g

33. Financial Fitness for LifeTable of Contents Theme 4 Spending and Saving are Serious Business 11. What is Credit? 12. Making Credit Choices 13. Applying for Credit 14. All About Interest 15. Shopping for a Credit Card 16. Shopping for a Mortgage 17. Shopping for an Auto Loan 18. Consumer Credit Protection 19. Scams and Schemes Georgia Council on Economic Education w w w . g c e e . o r g

34. Financial Fitness for LifeTable of Contents Theme 5 Get a Plan: Get a Grip on Life 20. Managing Your Money 21. Banking Basics 22. The Good News About Insurance Georgia Council on Economic Education w w w . g c e e . o r g

35. Lesson Components 1. Fitness Focus Lesson Description Objectives Time Required 2. Equipment Visuals Student Exercises 3. Workout Warm Up (Purpose) Exercise (Instruction) Cool Down (Closure) 4. Parent Connection Georgia Council on Economic Education w w w . g c e e . o r g

36. How to Really Be a Millionaire(lesson 1) Georgia Council on Economic Education w w w . g c e e . o r g

37. The Millionaire Game 1. Most millionaires are college graduates. T 2. A majority of millionaires work fewer than 40 hours a week. F 3. More than half of all millionaires never received money from a trust fund or estate. T 4. More millionaires have American Express Gold Cards than Sears credit cards. F 5. More millionaires drive Fords than Cadillacs.T Georgia Council on Economic Education w w w . g c e e . o r g

38. The Millionaire Game 6. Most millionaires work in glamorous jobs such as sports, entertainment, or high tech. F 7. Most millionaires work for big Fortune 500 companies. F 8. Many poor people become millionaires by winning the lottery. F Georgia Council on Economic Education w w w . g c e e . o r g

39. The Millionaire Game 9. College graduates earn about 65% more than high school graduates. T 10. If an average 18-year-old high school graduate spends as much …his or her earnings at 8% annual interest, the high school graduate would have $5,500,000. T 11. Day traders usually beat the stock market and many become millionaires. F Georgia Council on Economic Education w w w . g c e e . o r g

40. Rules for Improving Your Financial Life • Save early and often • Invest in common • stocks for the • long term • Gather information • before making • decisions • Get married and stay • married • Get a good education • Work long, hard, and smart • Learn money-management skills • Live below your means • Buy a home (you can afford) Georgia Council on Economic Education w w w . g c e e . o r g

41. Georgia Council on Economic Education w w w . g c e e . o r g

42. Begins- January 31, 2011 Ends- April 8, 2011 Georgia Council on Economic Education w w w . g c e e . o r g

43. The Basics Stock-An ownership share, or shares of ownership, in a corporation. Georgia Council on Economic Education w w w . g c e e . o r g

44. Can You Buy Stock in or Georgia Council on Economic Education w w w . g c e e . o r g

45. Key Terms Common Stock A security that represents ownership in a corporation. Common stockholders are on the bottom of the priority ladder for ownership structure. Georgia Council on Economic Education w w w . g c e e . o r g

46. Preferred Stock A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock. Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights. Georgia Council on Economic Education w w w . g c e e . o r g

47. Buying on the Margin Borrowed money that is used to purchase securities. This practice is referred to as "buying on margin". Georgia Council on Economic Education w w w . g c e e . o r g

48. The Different Markets New York Stock Exchange The oldest stock exchange in the United States, founded in 1792 and stocks are still traded on the floor. Traditionally for large corporations with large volumes of shares. Georgia Council on Economic Education w w w . g c e e . o r g

49. NASDAQ An electronic marketplace enabling buyers and sellers to get together via computer to trade stocks. Traditionally high-tech firms that are very active. Created in 1971. Georgia Council on Economic Education w w w . g c e e . o r g

50. American Stock Exchange (AMEX) Located in New York, handles about 10% of all securities exchange. Has mostly small-cap stocks, exchange-traded funds and derivatives. Georgia Council on Economic Education w w w . g c e e . o r g