Ice Breaker 1. Name 2. Affiliation with Be A Mentor 3. If mentoring, the age of child(ren) you mentor 4. If money were no object, what one thing would you buy? 2

What is Financial Literacy? The President's Advisory Council on Financial Literacy defines personal financial literacy as "the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being." (2008 Annual Report to the President). Personal financial literacy is more than just being able to balance a checkbook, compare prices or get a job. It also includes skills like long-term vision and planning for the future, and the discipline to use those skills every day. In the US, we make great efforts to teach children to read and write, but we don't give their financial literacy the same attention. As a result, few young people know how to manage their personal financial lives. 3

Did You Know…? Young people 18 and under will spend and influence the spending of more than $1 trillion dollars this year. Young adults (25 and under) are now one of the fastest growing segments filing for bankruptcy. Average credit card debt per U.S. household is nearly $9,000. Average after tax U.S. savings rate has plummeted to 0.2%. College students have on average 4 credit cards and $3,000 of credit card debt. Children today spend FIVE times more money (adjusted for inflation) than their parents did at the same age. Source: ShareSaveSpend 69 percent of people cite money as a top stressor. College graduates today are averaging nearly $30,000 in student debt. 32 percent of U.S. adults recognize their lack of financial knowledge has led them to make poor financial decisions, 43 percent feel they have missed out on good financial opportunities for this reason. Source: Bank of America/Harris Interactive 2013 Poll 4

What can we do? Where do we start?

Elementary School

School-Aged Children Elementary Economic Way of Thinking ◦ Ask what he/she plans to do with his/her money Money Management ◦ Talk about what it takes to prepare a personal budget Saving ◦ Discuss the value of saving ◦ Deliberate some savings goals ◦ Help your mentee develop a plan to accomplish his/her savings goals 7

Middle School

School-Aged Children Middle School Financial Planning ◦ Examine short, mid and long term goals Budgets ◦ Discuss budgeting deficits/surpluses Accounts & Services ◦ Review different banking accounts and services Risk vs. Reward ◦ Talk about risks and rewards (your mentee lends you $25, what are the risks and rewards for him/her?) Spending ◦ Help your mentee understand his/her consumer rights and responsibilities ◦ Discuss ways to prevent identity theft 10

High School

School-Aged Children High School Credit ◦ Discuss the importance of building a good credit history, it is an essential part of sound financial planning. Philanthropy ◦ Make a list of 3 ways that you and your mentee could give time, money, or something else to help people in your community Insurance Needs ◦ Consider the various types of insurance that you and your mentee might need Career Planning: ◦ Discuss career goals ◦ Consider the financial impact of going to college versus getting a high school diploma, over the course of a lifetime 13

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Bank of America Better Money Habits School-Aged Children – This program was created in partnership with Network for Teaching Entrepreneurship (NFTE) to build a strong foundation of better money habits among school-aged children. It’s designed to provide the basics of personal finance. Young Adults – Financial choices that young adults make today directly affect their future opportunities and success in school, career and beyond. This program emphasizes to young adults the importance of making the right choices about money. ◦ Banking ◦ Smart Credit ◦ Budgeting ◦ Investing ◦ Identity Theft ◦ Borrowing Money ◦ Paying for College 18

Bank of America Better Money Habits Adults – Journey to Financial Security provides advanced financial-management skills for adults — a roadmap for consumers in their journey to become financially secure. ◦ Building Savings ◦ Creating Wealth ◦ Credit Reports and Credit Scores ◦ Identity Theft ◦ Important Papers ◦ Keeping Debt Under Control ◦ Managing Income and Expenses ◦ Managing Student Loan Debt ◦ Setting Goals and Priorities ◦ Using Credit Wisely ◦ When the Income Decreases, but the Bills Don’t Seniors – Savvy Saving Seniors provides older adults with money-management skills that further their economic security. The three modules of this lesson plan were developed in partnership with the National Council on Aging. ◦ Becoming Resource-FULL ◦ Steps to Avoiding Scams ◦ It’s in the Cards 19

Additional Resources Financial literacy is an incredibly important skill for your mentee’s future. Mentoring Partnership Minnesota’s site is filled with resources for teaching financial literacy to children of all ages.filled with resources Mint is a free online resource that allows you to track your budget and create a savings plan. Mint Practical Money Skills has free online games that teach money management skills. Practical Money Skills Mortgage Calculator and Finance In the Classroom have financial literacy lesson plans for grades K-12. These can easily be adapted or serve as a guideline for use with your mentee. Mortgage CalculatorFinance In the Classroom Hands on Banking created interactive online curricula for both teenagers younger children to learn the basics of finance and money management. Hands on Banking 20

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