Welcome to Financial Literacy

“What does it mean to be financially responsible?”

Choices Living Shelter Food Transportation

Financial Responsible or not When you were Make sure bills paid Make sure my needs are met Saved after paying bills Saved in a savings account Giving up a night out to pay bills When you were not Spent all the money AI had with me at the mall Buy food Not paying rent and lost everything New phone needed ? Bought new video games Gift money spent not saved Giving money to friends or family Buying stuff without planning Excess buying endulgence No emergency Not paying a fine Bought clothes not a car

Assignment Feed back Of the 65 people that completed the assignment only 5 responses where not present or lacking enough content to give credit 40 response where general and not specific enough (example: Saving money and not spending money and making the right choices) 15 responses did not have enough information. Example: The time I was financially responsible was when I had to make some decisions… Several responses used sentence stems and did not finish the responses. I know how to save money… I know what it means to spend money wisly…

Practice: What does it mean to be financially responsible… Financial responsibility starts with the choice’s people make with their money and their financial obligations. Responsible people evaluate their income and their expenses and they choose to take care of their needs before their wants and desires including, but not limited to saving money, investing money, and using their money to fulfill their values. Write 2/3 sentences about a time when you where or were not financially responsible. Not: As a teenager I received a ticket for going 95 in another state and because I was leaving the country the following month I chose to let the ticket go. Was: I love dance parties and I also wanted to go to college I knew the entrance fee for the dance was $20 and my college application fee was due ($40) I had a difficult choice to make; however, I know if I gave up this dance it would mean I could pay the application for college.

Teacher feed back Help students understand Ask them if they need help Don’t pick on students Patience Show support Help struggling students

Explaining things better “I'm not quite sure I understand what you are saying.” “I don't feel clear about the main issue here.” “When you said ........ what did you mean?” “Could you repeat ...?” Read more at: https://www.skillsyouneed.com/ips/clarification.html

Steps of Economic Reasoning People Choose (determine the choices) All choices involve costs People respond to incentives in predictable ways People gain when they trade voluntarily People’s choices have consequences which lie in the future.

Opportunity cost: Opportunity cost: The value of the second-best alternative that a person gives up when making one choice instead of another.

Incentives vs disincentives Disincentive: A factor or disadvantage that discourages people from doing something. Incentive: Any reward or benefit that motivates people to do something.

Jones Family Activity Starburst separation: Jones family 1

PACED Decision Making problem P =State the problem A = List the Alternatives C =Identify the CRITERIA E = EVALUATE THE OPTIONS, BASED ON THE CRITERIA D = Make a decision

The Power of You!! If it’s YOU who got you to where you are NOW, it’s also YOU who can get you to where YOU WANT TO BE!

SUMMARY: E + R = O (EVENT + Response = OUTCOME

E+R+0 continued If you Don’t like your outcomes Change Your response. You can blame the event (E) for your lack of results (0) You can instead change your responses ( R) to the Events (E) --- The way things are ---until you get the outcomes (0) you want If you Don’t like your outcomes Change Your response.

Can’t buy me Love

Theme 1 The Economic Way of Thinking Please complete the worksheet Activities Limited time Limited space Limited money

Why it pays to be financially responsible How have your values affected your personal financial priorities and goals? How has your culture affected your personal Financial Priorities and goals? How has your economic forces affected your personal financial priorities and goals?

Money In your life

Have students think about their first experiences with money Have students think about their first experiences with money.  Discuss how the influences and people around us can determine our habits and attitudes about money.  Point out that people can consciously change negative spending behavior to positive spending behavior.