1 MONEY MATTERS Financial Planning Management

2 MONEY MATTERS “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights with any questions you have.

MONEY MATTERS3 Nature of money and insight into its functions and uses Financial Knowledge & Understanding Apply knowledge and understanding of financial matters across contexts Financial Skills & Competencies Understand how decisions can impact individuals, family, and community Financial Responsibility

MONEY MATTERS4 F INANCIAL C APABILITY Managing Money Planning Ahead Choosing Products Staying Informed

MONEY MATTERS5 F INANCIAL C APABILITY Managing Money Be making ends meet Keep track of their finances Plan for predictable future expenses Planning Ahead Have some provisions to cover a loss of income Be able to meet a major expense without borrowing Have made provisions for anticipated major expenses Be making adequate provisions for their retirement Choosing Products Shop around to get the best value financial products Take steps to ensure they get the products that were most suitable for them Make sure they know what is in the “small print” Staying Informed Keep abreast of things likely to impact their finances Know key features of the products they hold Be able and willing to deal with problems or complaints should they arise

MONEY MATTERS6 Managing Money People who are financially capable will: Be making ends meet Keep track of their finances Plan for predictable future expenses Planning Ahead People who are financially capable will: Have some provisions to cover a loss of income Be able to meet a major expense without borrowing Have made provisions for anticipated major expenses Be making adequate provisions for their retirement Staying Informed People who are financially capable will: Keep abreast of things likely to impact their finances Know key features of the products they hold Be able and willing to deal with problems or complaints should they arise Choosing Products People who are financially capable will: Shop around to get the best value financial products Take steps to ensure they get the products that were most suitable for them Make sure they know what is in the “small print” Source: Adapted from Atkinson et al. (2007) Financial Capability

E CONOMY What are some ways the economy can affect your personal financial success? MONEY MATTERS7

Events can affect personal financial success MONEY MATTERS8 Historically Great Depression Pearl Harbor 9/11 More Recent Housing fall Unemployment trends Stock market changes Government Taxes Retirement funding Interest rates Inflation

The economy can affect your personal financial success… MONEY MATTERS9 The Government can change how much you need in terms of retirement The Government can change how much taxes they will levy Interest rates can rise which affects payments

MONEY MATTERS10 What do you know about financial planning and management? What do you think you know about financial planning and management? What don’t you know yet about financial planning and management? Review/Summary

MONEY MATTERS11 Economy System on managing the resources of a country, state, or community Financial capability The ability to understand finances Financial planning A process of setting goals, developing a plan to achieve them, and putting the plan into action Financial responsibility Being accountable for your future financial well being KEY TERMS