“Today’s financial world is highly complex when compared with that of a generation ago. Forty years ago, a simple understanding of how to maintain a checking and savings account at local banks and savings institutions may have been sufficient. Now, consumers must be able to differentiate between a wide range of financial products and services, and providers of those products and services. Previous, less- indebted generations may not have needed a comprehensive understanding of such aspects of credit as the impact of compounding interest and the implications of mismanaging credit accounts.  Allen Greenspan

We have all asked ourselves these questions at one point in our lives. Can I afford a mortgage? What pension should I choose? Will it be enough for retirement? What if I loose my job? How can I reduce my debts?

As the U.S. economy emerges from the global recession, more than ever our young consumers need to understand the necessity of having a realistic budget and non-retirement savings in case of job loss in addition to their retirement savings. Beginning early is the key to success.

TCEE has long supported the teaching of economics and financial literacy in the social studies, career/technical, language arts, science and math classes from kindergarten through grade 12. TCEE offers staff development opportunities and hands-on student activities through the Stock Market Game™, the Economics Challenge, and now the Personal Financial Literacy (PFL) Challenge.

While TCEE supports the teaching of economic and financial literacy principles at the high school level, students have already established spending practices that may not be healthy to their pocket books and will be difficult to correct and change as adults. The causes of and slow recovery from the recent recession indicate that our students need to spend smarter if they are going to reduce their dependency on credit to spend beyond their means.

An important goal of Smarter Texas is to encourage healthier spending so that students can save for college or technical school and to have the financial resources needed for important and/or emergency purchases. Smarter spending means smarter saving for smarter financial health now and in the future.

Smarter Texas means introducing financial literacy concepts and skills at the elementary level, reinforcing and increasing understanding and practice in middle school, and enhancing knowledge and skills in high school. Smarter Texas launches a healthier financial tomorrow for Texas and the U. S. one teacher, student, classroom and school at a time.

Lets see what you know.

Areas of Instruction: A. understanding interest, avoiding and eliminating credit card debt B. understanding the rights and responsibilities of renting or buying a home C. managing money to make the transition from renting a home to home ownership D. starting a small business E. being a prudent investor in the stock market and using other investment options F. beginning a savings program and planning for retirement G. bankruptcy H. the types of bank accounts available to consumers and the benefits of maintaining a bank account I. balancing a check book J. the types of loans available to consumers and becoming a low-risk borrower K. understanding insurance L. charitable giving

Hands on Banking by Wells Fargo Financing Your Future by Citi Foundation Financial Fitness for Life by Bank of America Foundation

Hands on Banking includes free, downloadable Instructor Guides designed to provide everything you’ll need to guide participants through real-life scenarios, group discussions, and valuable activities. The lessons for school-aged children are aligned with national and state educational standards for economics, financial literacy, mathematics, and English language arts, making it easy to integrate the Hands on Banking program into the classroom.

The Hands on Banking program is available in English or Spanish and offers many benefits, such as: Free, 24/7 access to online financial courses that are self-paced Free instructor guides with multiple activities and handouts Courses and guides available online and CD-ROM School-age lessons aligned with national and state standards for mathematics, English language arts, financial literacy, and economics Easy classroom integration No commercials or endorsements Available in Spanish and English

The Hands on Banking program provides the essentials of financial education, real-world skills, and knowledge every student can use, including how to: Identify "needs" vs. "wants“ Plan early for the future Earn more money by learning more skills Build their own budget to control their money Become an entrepreneur by starting their own business venture Control spending with a spending plan Build credit wisely and avoid debt Invest in higher education and find the money to pay for it

Activity 1

Use the six squares depicting the cycle of money to match with the correct situation

Money has value, and individuals can make choices about how, when and where to spend their money to receive the most in return. Open a discussion using the following points.

Use the example to find the best solution

Financial Fitness for Life®(FFFL) is a comprehensive personal finance curriculum for K-12 students that teaches students how to make thoughtful, well-informed decisions about important aspects of personal finance, such as earning income, spending, saving, borrowing, investing, and managing money. Economic concepts form the foundation of all lessons, providing students with a decision-making framework for the real world. Content is based on national standards, and correlates to standards in economics, personal finance, mathematics, and language arts. With engaging, hands-on instructional activities, FFFL materials engage students of all ages in active learning.

Lesson 2

Remember: Take a practical approach to dealing with the key financial decisions – such as saving, borrowing, pensions, long-term planning – with an understanding of the broader economy and how you fit into it. So you can understand not just how interest rates go up and down, and why.

Recent global economic events have brought the issue of Personal Financial Literacy to our doorsteps. How can help prevent this economic calamity from happening again? Where should our emphasis be in the classroom and out?