Financial Wisdom Game®. Personal Finance – Knowledge, Understanding and Skill Development . Financial Education and Economic Transformation Center. FEET Center Financial Wisdom Game® Presented by David L. McConico, CFP® FWG®. Financial Wisdom Game®.
Personal Finance – Knowledge, Understanding and Skill Development
Financial Education and Economic Transformation Center FEET Center Financial Wisdom Game® Presented by David L. McConico, CFP® FWG®
Financial Wisdom Game® What: A Team Competition, a financial planning game, with financial incentives awarded to the teams who build the highest positive account value. Why: To educate youth for more informed financial decisions Financial Wisdom Game Philosophy is 3tt = FUNt Event Based: Personal Finance Game Identifying Concepts, Words, Terms, Exhibits and Diagrams. Introduced in 2011: Education through Engagement Event Play: Playing time 60 - 90 minutes.
Financial Wisdom Game® Time Frame: Six Rounds - 5 minutes Two halves- 30 minutes Break Between halves - 5 minutes End of Half and Final Question with Investment opportunity - 3 minutes each Teams: 4 Teams – four to six members Must be member of Finance Club to play All members must play in event competition
Financial Wisdom Game® Rules Eligible member of Finance Club Team Name Team order determined by coin toss There are six rounds of four questions (for player) and there is one question (for team) at the end of rounds three and six.
Financial Wisdom Game® *Point values can be double in rounds three and six (Must be indicated by player on wisdom seat before the question is asked). Point values are half if player seeks wisdom while on the wisdom seat. Team can indicate value invested (up to current account value) for questions at the end of rounds 3 and 6.
Financial Wisdom Game® Player Player order must be determined by team before game starts. Player on the wisdom seat has 30 seconds to respond with answer, seek wisdom, or pass. If player does not provide indicated respond within 30 seconds point value is subtracted from account value. Only player on the wisdom seat can ask for the question to be repeated or asked differently (10 seconds is added to the response time). Facilitator has discretion as to whether question can be asked beyond twice. No player can be on the wisdom seat for more than two opportunities to answer questions (except in seeking wisdom situation) during the six rounds of competition. Player has unlimited opportunity to respond in seek wisdom option.
Financial Wisdom Game® If the player answers, team is awarded full point value to account if correct and subtracted if incorrect. If player seeks wisdom, player must select from team member to answer within initial 30 second time frame. If selected team member answers team is awarded half point value to account if correct and subtracted if incorrect. Player on the wisdom seat still has option to answer after seeking wisdom, within the 30 second time limit (half point value). If player passes, other teams in order of turn (and player) have the option to answer question that was passed. Teams point value is not affected if player passes. The next player on the next ordered team has 15 seconds to answer, seek wisdom or pass. Team is awarded full or half point value if correct and subtracted if incorrect.
Financial Wisdom Game® Team Question Teams will answer questions at half end (Round 3) and game end (Round 6) with the possibility to increase point value. Team must indicate desire to respond to question. Then team must indicate the amount of points they are investing in their response. The response to the question must be in writing and it must be provided within 3 minutes after the question is asked. Points invested in response will be added or subtracted from account value if written response is correct or incorrect. Team question: Ask Question Respond (Y/N) Determine Investment Provide timely written response
Financial Wisdom Game® Financial Incentives: Financial Incentives are awarded to the teams with positive account point values at game end, allocated proportionally relative to total point value of teams with positive account values. Total Incentives available: $$$$$$ “Financial Wisdom is obtained in the Finance Club through attendance, financial education and asset development activities.”
Financial Wisdom Game® Round One 100 Points
Financial Wisdom Game® Round One – 100 Points
Financial Wisdom Game® The Process of setting spending priorities, defining goals and developing a plan to achieve them, and then putting the plan into action. The long-term process of wisely managing your finances so you can achieve your goals and dreams, while at the same time negotiating the financial barriers that inevitably arise in every stage of life.
Financial Wisdom Game® Financial Planning
Financial Wisdom Game® Things we must have to survive; for example, food, clothing, water, shelter.
Financial Wisdom Game® Needs
Financial Wisdom Game® Things that make life more interesting and fun but that people can live without if they have to.
Financial Wisdom Game® Wants
Financial Wisdom Game® The beliefs, qualities, or standards that you consider important or desirable.
Financial Wisdom Game® Values
Financial Wisdom Game® A statement of something a person wants or needs to do.
Financial Wisdom Game® Goal
Financial Wisdom Game® A goal to be achieved within the next three months.
Financial Wisdom Game® Short-Term Goal
Financial Wisdom Game® A goal that is set for three months to a year.
Financial Wisdom Game® Intermediate-Term Goal
Financial Wisdom Game® A goal that will take more than a year to achieve.
Financial Wisdom Game® Long-Term Goal
Financial Wisdom Game® The willingness to give up something you want now in order to get something better in the future.
Financial Wisdom Game® Delayed Gratification
Financial Wisdom Game® Movement of the money you receive and the money you spend.
Financial Wisdom Game® Cash Flow
Financial Wisdom Game® The value of what is given up when you choose one option over another.
Financial Wisdom Game® Opportunity Cost
Financial Wisdom Game® Smaller Decisions that can result from a major decision.
Financial Wisdom Game® Satellite Decisions
Financial Wisdom Game® SMART Goal. What does SMART stand for?
Financial Wisdom Game® Specific Measurable Attainable Realistic Time-bound
Financial Wisdom Game® Five Step to financial Planning.
Financial Wisdom Game® 1. Set Smart Goals 2. Analyze Information 3. Create A Plan 4. Implement The Plan 5. Monitor and Modify The Plan
Financial Wisdom Game® 1. Identify your goal 2. Establish your criteria 3. Examine your options 4. Weighs the pros and cons 5. Make your decision 6. Evaluate results
Financial Wisdom Game® Making Decisions Financial Planning requires making many decisions, and making decisions about money can be particularly challenging because so many things come into play. For one the facts of the situation and many other things—your mood, values, culture, habits, and opinions of your friends and parents.
Financial Wisdom Game® Step 1 Identify the problem or issue. Step 2: Gather and evaluate information. Step 3: Consider the costs and benefits of various alternatives. Step 4: Make a decision and take action. Step 5: Modify the decision and action as conditions change.
Financial Wisdom Game® Decision-Making Process
Financial Wisdom Game® A branch of psychology concerned with mental processes (perception, thinking, learning, and memory) that are connected to sensory stimulation and the overt expression of behavior.
Financial Wisdom Game® A spending plan. A record of projected and actual income and expenses over a period .
Financial Wisdom Game® Budget
Financial Wisdom Game® An assertion, claim or expectation about reality that is false. Unbalanced and based solely on our judgments and opinion.
Financial Wisdom Game® Irrational Belief
Financial Wisdom Game® An assertion, claim or expectation about reality that is accurate and true.
Financial Wisdom Game® Rational Belief
Financial Wisdom Game® Step 1: Create financial goals Step 2: Create a current income and expense record Step 3: Create an insurance plan Step 4: Create a savings and investing plan Step 5: Create a budget
Financial Wisdom Game® 5-steps involved in creating your financial plan
Financial Wisdom Game® Theory that an increasing consumption of goods is economically beneficial.
Financial Wisdom Game® Consumerism
Financial Wisdom Game® The cost of goods and services, including those that are fixed (such as rent, and auto loan payments) and those that are variable (such as food, clothing, and entertainment).
Financial Wisdom Game® Expenses
Financial Wisdom Game® Money earned from investments and employment.
Financial Wisdom Game® A risk management tool that protects an individual from specific financial losses under specific terms and premium payments, as described in a written policy document. Major types include: Auto, Health, Homeowner, Life.
Financial Wisdom Game® Insurance
Financial Wisdom Game® The act of purchasing securities such as stocks, bonds, and mutual funds with the goal of increasing wealth over time, but with the risk of loss.
Financial Wisdom Game® Investing
Financial Wisdom Game® A measure of the likelihood of loss or the uncertainty of an investment’s rate of return.
Financial Wisdom Game® Risk
Financial Wisdom Game® The process of calculating risk and developing methods to minimize or manage loss, for example, by buying insurance or diversifying investments.
Financial Wisdom Game® Risk Management
Financial Wisdom Game® The process of setting income aside for future spending. Saving provides ready cash for emergencies and short-term goals, and funds for investing.
Financial Wisdom Game® Saving
Financial Wisdom Game® When people compare their personal attributes and abilities with those of others who are deemed to be socially better off.
Financial Wisdom Game® Social Comparison
Financial Wisdom Game® Round Two – 200 points
Financial Wisdom Game® A reciprocal relation between two or more things.
Financial Wisdom Game® Correlation
Financial Wisdom Game® Earnings from corporate stock or credit union share accounts.
Financial Wisdom Game® Dividends
Financial Wisdom Game® Earnings from employment, including commissions and tips.
Financial Wisdom Game® Earned Income
Financial Wisdom Game® Wages or salary before deductions for taxes and other purposes.
Financial Wisdom Game® Gross Pay
Financial Wisdom Game® The amount of income after all deductions and taxes are paid. Often known as “take-home pay”
Financial Wisdom Game® Net Pay
Financial Wisdom Game® Earnings from sources other than employment, including investment returns and royalties.
Financial Wisdom Game® Unearned Income
Financial Wisdom Game® A form of insurance that provides compensation medical care for employees who are injured in the course of employment.
Financial Wisdom Game® The pleasurable emotional reaction of happiness in response to a fulfillment of a desire or the fulfillment of a goal.
Financial Wisdom Game® Gratification
Financial Wisdom Game® 1. A source of supply, support, or aid, especially one that can be readily drawn upon when needed. 2. Available source of money; a new or reserve supply that can be drawn upon when needed.
Financial Wisdom Game® Resources
Financial Wisdom Game® Insufficient to meet a demand or requirement; in short supply.
Financial Wisdom Game® Scarce
Financial Wisdom Game® Another name for a budget.
Financial Wisdom Game® Spending Plan
Financial Wisdom Game® Translation of a consumer product price into the cost per standard size or weight. Unit price helps the consumer to make price/value comparisons between brands. Unit prices are usually displayed on supermarket shelf tags along with the package price.
Financial Wisdom Game® Unit Price
Financial Wisdom Game® The four most common tax deductions on a pay stub.
Financial Wisdom Game® 1. Federal Income tax 2. State Income tax 3. Medicare tax 4. Social Security tax
Financial Wisdom Game® A tax that a person who owns a business typically also pay.
Financial Wisdom Game® Self-Employment Tax
Financial Wisdom Game® The federal government calculates your tax deductions from the information on this form you fill out when you start your job.
Financial Wisdom Game® Form W- 4
Financial Wisdom Game® 5 Methods available for making sure you stay on track with your budget.
Financial Wisdom Game® Envelope System Tally System Track with Checking Account Register Budget Spreadsheet Personal Finance Software
Financial Wisdom Game® Round Three – 300 Points
Financial Wisdom Game® The idea that money today is worth more than the same amount of money in the future due to its potential earning capacity. Refers to the relationship among time, money and rate of interest.
Financial Wisdom Game® Time Value of Money
Financial Wisdom Game® A rise in the cost of goods and services. An overall rise in the price of goods and services; the opposite of the less common deflation.
Financial Wisdom Game® Inflation
Financial Wisdom Game® The payment your receive for allowing a financial institution or corporation to use your money.
Financial Wisdom Game® Earned Income
Financial Wisdom Game® The idea of earning interest on interest. Interest credited daily, monthly, quarterly, semi-annually, or annually on both principal and previously credited interest. One of the most powerful principles in personal finance.
Financial Wisdom Game® Compounding or Compound Interest
Financial Wisdom Game® You earn $200 in financial incentives from the finance club and want to start saving for your own car, if you put you money in an account that earns six percent interest per year, how long will it take to grow to $400.
Financial Wisdom Game® 72 ÷ 6 % = 12 Years Rule of 72 says that you can see how long it will take you to double your money simply by dividing 72 by the interest rate. 72 ÷ 4 years = 18% The Rule of 72 can also tell you the interest rate you need to earn to double your money in a certain amount of time.
Financial Wisdom Game® The place where stocks are bought and sold.
Financial Wisdom Game® Stock Market
Financial Wisdom Game® The difference between the purchase price and the selling price when an investor buys a stock and sells it later at higher price.
Financial Wisdom Game® Capital Gain
Financial Wisdom Game® The difference between the purchase price and the selling price when the investor sells a stock at a lower price than the purchase price.
Financial Wisdom Game® Capital Loss
Financial Wisdom Game® The amount of earned on an investment, expressed as a percentage of the total investment. The percentage of gain or loss on an investment over a period of time.
Financial Wisdom Game® Return or Rate of Return
Financial Wisdom Game® The amount of the likelihood of loss or the uncertainty of an investment’s rate of return. The probability that injury, damage, or loss will occur.
Financial Wisdom Game® Risk
Financial Wisdom Game® The degree of uncertainty an investor can handle in regard to a negative change in the value of his or her portfolio.
Financial Wisdom Game® Risk Tolerance
Financial Wisdom Game® Generally, people chose to invest for one of two reasons: Income or Growth Income means they get paid –in cash- for owning the account or investment. Growth means they buy and hold an investment with the hope that it will increase in price, over time.
Financial Wisdom Game® Income Investments: Savings account Bonds (U.S. Savings, Corporate, and Government), Certificates of Deposits Money Market Deposit Accounts Money Market Mutual Funds. Growth Investments: Stocks Real Estate Mutual Funds Collectibles.
Financial Wisdom Game® A strategy for reducing investment risk by selecting a wide variety of investments. (putting money in several different types of investments). By spreading your money around, you’re reducing the impact that a drop in any one investment value can have on your overall investment portfolio.
Financial Wisdom Game® Diversification
Financial Wisdom Game® The practice of investing a fixed amount in the same investment at regular intervals, regardless of what the market is doing. It another key investment principle to know because it eliminates having to worry about investing at the “right” or “wrong” time.
Financial Wisdom Game® Dollar Cost Averaging
Financial Wisdom Game® A person who provides financial information and advice. Example include employee benefit staff, bank and credit union employees, credit counselors, brokers, financial planners, accountants, insurance agents, and attorneys.
Financial Wisdom Game® Financial Professional
Financial Wisdom Game® The quality of an asset that permits it to be converted quickly into cash without loss of value. For example, a mutual fund is more liquid than real estate.
Financial Wisdom Game® Liquidity
Financial Wisdom Game® An amount of money originally invested, excluding any interest or dividends. An amount borrowed, or an outstanding loan balance.
Financial Wisdom Game® Principal
Financial Wisdom Game® When it comes to taking care of your basic financial needs, the first step is finding a financial institution. Name two of types of financial institutions that take care of basic financial services.
Financial Wisdom Game® A bank is a for-profit company, owned by investors in its stock. or Credit union is a non-profit company, are owned by their customers, who are also called members. Both provide a variety of basic financial services , including savings and checking accounts, issuing credit and debit cards, and providing loans for cars, homes, and other purposes.
Financial Wisdom Game® A financial institution deposit account that pays interest and allows withdrawals. And A financial institution deposit account that allows withdrawals by writing checks
Financial Wisdom Game® Savings or Share Account and Checking or Share Draft Account
Financial Wisdom Game® A savings which is a certificate representing a debt. A U.S. Savings Bond is a loan to the government. The government agrees to repay the amount borrowed, with interest, to the bondholder.
Financial Wisdom Game® Series EE Savings Bond
Financial Wisdom Game® Interest calculated periodically on loan principal or investment principal only, not on previously earned interest.
Financial Wisdom Game® Simple Interest
Financial Wisdom Game® Certificates representing the purchaser’s agreement to lend a business or government money on the promise that the debt will be paid – with interest- at a specific time.
Financial Wisdom Game® Bonds
Financial Wisdom Game® Mutual funds that sell shares of ownership and uses the proceeds to purchase short-term, high-quality securities such as Treasury bills, negotiable certificates of deposit, and commercial paper.
Financial Wisdom Game® Money Market Funds
Financial Wisdom Game® I investment companies that pool money from shareholders and invest in a variety of securities, including stocks, bonds, and short-term assets.
Financial Wisdom Game® Mutual Funds
Financial Wisdom Game® An investment that represents shares of ownership of the assets and earnings of a corporation. An investment that makes the investor a part owner of a company.