Welcome to Financial Literacy! Ms. Petty Attendance. Hand out candy, notecard and disclosure to each student. Explain that they may eat this now or decide to wait, and receive a second candy. Introduce self and go over disclosures. Fee due by the end of next week. Bring receipt from office to me. Discuss items you need for this class. Watch kid pep talk. (5/61) Pep Talk From Kid President

Any appropriate answer will do Name I was… I am… I think… I wonder… I wish… I save… 6-10/56, collect I always… I can’t imagine… I want to learn…

Perceptions about Money Grab at least 5 post it notes Move around the room answering the prompts on your sticky note and post them on the paper Move so that there are only 3-4 people at each poster. Introduce yourself to your classmates and share one interesting thing from your summer. Summarize and Discuss responses 11-38/28

Values strongly influence our spending habits Values strongly influence our spending habits. We don’t usually spend our money on things we do not feel are important. Typically, the more important something is, the more we are willing to spend on it. 39/27

Values The beliefs and practices in your life that are very important to you. Family Friends Work Honesty Self Reliance Independence Religion The Financial Values Inventory is available at FinanceInTheClassroom.org Or paste the following URL into your browser http://financeintheclassroom.org/student/print.shtml#financialbehavior and scroll down to Financial Behavior. ** Financial Values Inventory

40-43/23 Make a t-chart on the board 40-43/23 Make a t-chart on the board. What are examples of wants and needs? Define want. (something that makes us happier) Define need. (something essential for survival) jeans? Brand name jeans? Being able to differentiate between wants and needs will be on your quiz and test. If you need to write it down to remember or review later – please do so. What is scarcity?

Scarcity “Scarcity is an economic principle stating that because of limited resources, an economic system cannot possibly produce all the goods and services that people want; therefore, choices must be made about how the limited resources will be used.” -Consumer Economics & Education, Glencoe, 2003 44/22

"If you don't know where you are going, ANY ROAD will take you there." (45-48/18) Explain bell work. Play clip. Ask students how this saying applies to financial planning. Cheshire Cat, Alice In Wonderland

What road are YOU on? DFGDF (49-54/12) Can we relate any of these road conditions to financial situations? What is your best guess? What planning could we have done in each of these instances to make the trip more pleasant?  Pass out second candy to students who waited. Discuss results of the study and compare with the class. Many times we want things now even if it costs us more. (delayed gratification)  What are the costs of this behavior? (pay interest on credit card to buy something you can’t afford, pay more because you don’t want to make another stop (milk at gas station) Lack of planning can lead to poor financial decisions and increased costs, what we give up to get something else is referred to as our opportunity cost – you hit snooze 5 times so you have to skip breakfast

Financial Planning More than budgeting More than investing Financial planning is a thinking process that helps achieve goals. A blueprint or plan for managing all components of a person’s money. Arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals. (55-57/9)Grab 4 posts its of different colors. These are your notes for today. Stick them on a page of your financial literacy notebook or binder

Components of a Financial Plan Goals Net Worth Statement Budget Insurance Plan Savings Plan Investment Plan 58/8

Benefits of Having a Financial Plan You have more money and financial security. You know where to use money to achieve your goals. You have less chance of going into debt you cannot handle. 59/7

Steps in Financial Planning Posters will be evaluated on Quality of information (4) Originality - don’t just copy from the slide (1) Ability to function as a group and involve EVERYONE (2) Quality examples of step implementation (3) Aesthetic appeal (2) Explanation of Step (4) (60-66 / share tomorrow if needed) This is your first grade to go in the gradebook. Have groups create posters for each of the steps of financial planning – share, write down steps on the last post it

Concepts/Terms Delayed Gratification Opportunity Cost Scarcity Want Need Steps in Financial Planning process