1 NEFE High School Financial Planning Program® Patrice Dollar,CFP Family Financial Management Specialist-University of Georgia

2 Why Financial Planning?

3 Teens Have A Lot of Money and They Spend It! $155 billion in 2000 $172 billion in 2001

4 Did you Know? How much does the average teen spend per year? What percentage carry 4 or more credit cards? What percent of young adults between are delinquent on credit card balances? $4,368 20% 9%

5 Did you Know? The average student loan debt is _____. What is the avg. credit card balance for undergraduates? More than ___ of U.S year olds have savings accounts. In 1996, ___ percent of the 1.1 million bankruptcy filers were younger than 25. $ $2,226 2/3 8.7%

6 Jump$tart Results th graders answered 50.2% questions correctly, average scores were 51.9% in 2000 and 57.3% in Students from the South scored (48.6%). Students who participated in stock-market game scored better (52.4%). Almost two-thirds of students felt very sure or somewhat sure about their ability to manage their own finances.

7 Jump$tart Results 2002 Students using credit cards declined (67.8%), (69.1%) 2000, (70.8%) More students have their own credit cards (12.1), 9.2% in 2000, 7.7% in Nearly 75% of students have savings/checking account with a bank. Slightly more one-third knew retirement income is called a pension. One-third thought such income was Social Security.

8 Jump$tart Results 2002 Almost 60% of students knew sales tax make things more expensive to buy. 21.1% national sales tax. 17% respond federal government deduct it from paychecks. 3.7% respond no tax sales was paid in cases of low income.

9 Signs of Increasing Financial Vulnerability  More consumer credit delinquencies  Sky-rocketing personal bankruptcies  Inadequate retirement savings  Decreasing personal savings rate  Lost workplace productivity due to financial problems

10 How can WE help provide some stability to our nation? Support through Financial Education

11 Developed by by the National Endowment for Financial Education® The NEFE High School Financial Planning Program ®

12 Partners Cooperative Extension System

13 Mission: To help individuals acquire the information and skills to take control of their financial destinies.

14 Colorado-based non-profit foundation Evolved from College for Financial Planning Sold college in 1997 More at

15 Community-based educators Partnership of: –USDA's Cooperative State Research, Education and Extension Service –105 land-grant universities –More than 3,500 county/city offices

16 Mission: To help people improve their lives and communities through learning partnerships that put knowledge to work.

17 Credit Union National Association, Inc. (CUNA)

18 Mission: To provide affordable financial services to people from all walks of life.

19 What is the HSFPP? Fully developed personal finance curriculum Materials include instructor's manual, student guide for each student Easily integrated into math, social studies, economics, or family and consumer education classes

20 Purposes of HSFPP Teach the financial planning process what it is what it can do for students Help students apply the process stimulating exercises realistic assignments Encourage students to take control of their finances—beginning now!

21 HSFPP Curriculum is...  comprehensive  flexible  easy to implement  educational  all materials free!

22 Easy Implementation Can be completed in as few as 10 class periods Suitable for block or traditional class schedule

23 Results of National Evaluation After completing HSFPP  54% saved money  38% achieved financial goals  35% tracked expenses  31% used spending plan  27% compared prices  IT WORKS! Source: NEFE High School Financial Planning Program, Boyce and Danes, 1998

24 What’s New in 2001? A brand new, revised edition!! New Instructor’s Manual New Student Guide

25 New Instructor’s Manual Unit DescriptionUnit Description Learning ObjectivesLearning Objectives Concept LessonsConcept Lessons (1-3 per unit) Exams & AnswerExams & AnswerKey

26 National Standards Learning ObjectivesLearning Objectives Cross referenced to National StandardsCross referenced to National Standards –Family and Consumer Economics –Mathematics –Social Studies-Economics National Standards/Benchmarks Jumpstart CoalitionPersonal Financial LiteracyNational Standards/Benchmarks set by Jumpstart Coalition for Personal Financial Literacy

27 NEFE High School Financial Planning Program ® Standards-Based Instruction and Standards-Based Instruction

28 Standards-Based Instruction Problem/Issue Core Question Student Work Learning Activities Assignments Standards Content Performance Proficiency Assessment Rubrics Portfolio Exams Adapted from materials developed by the National Center on Education and the Economy, Washington, D.c., 1997

29 Interview Questions Rubric Group Performance Not Quite(1)Okay (2)Excellent (3) All group members participated Only a fewMostAll Number of questions Quality of questions Basic, yes/noSome basic, some in-depth In-depth, meaningful Breadth of questions Only one aspect2-3 aspects4+ aspects Other:

30 Lesson Plans Step-by-Step Plan outlines and visuals Learning by Doing 4-phase process Optional Unit Projects Service Learning Opportunities

31 Brain Compatible Learning 1. Relevant through personal context 2. Dependent on motivation 3. Reinforced through hands-on experience 4. New information linked to prior knowledge

32 Brain Compatible Learning 5. More efficient when information is “chunked” 6. Enhanced with time for reflection 7. Retained when associated with senses and emotions 8. Best when environment favors various ways of knowing 9. Is a high-energy activity

33 EnergizerEnergizer InquireInquire GatherGather ProcessProcess ApplyApply Learning By Doing

34 New Student Guide More Content, More Colorful Can You Believe? Assignments Action Steps Personal Portfolio

35 Three Action Steps: 1.Learn 2.Apply 3.Take Control Student Guide

36 NEFE High School Financial Planning Program ® 6 Units

37 NEFE High School Financial Planning Program ® Unit 1 Financial Planning: Your Roadmap Setting Financial Goals Effective Decision Making Financial Planning Process

38 Instructions Unit 1 – Lesson 3 – Inquire “Mind Over Mind” Choose a fun name for your group Pick one person to play the role of the teacher The rest of the group will be students Turn to page 28 in the Instructors Manual Follow instructions in the Instructors Manual You team has 10 minutes to percent to the entire group

39 Instructions Unit 1 – Lesson 3 – Gather “Lapsus Lingo” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 29 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

40 Instructions Unit 1 – Lesson 3 – Process “Fund Raising Fundraisers” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 30 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

41 Instructions Unit 1 – Lesson 3 – Apply “Putting the Plan into Action” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 31 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

42 Reflection How did it feel to try and communicate an abstract concept with pictures? How did working in a small group change or expand your ideas about financial planning? Is financial Planning a product or a process or both?

43 Reflection How does having a phrase or concept explained from different perspectives help you better understand that phrase or concept? When you talk to people about financial planning, how can you be sure they really understand what you’re trying to communicate? How does learning about financial planning compare to learning to a foreign language?

44 Reflection How are the financial planning process and decision-making process different? How are they similar? Which length goals are you more likely you achieve (short term, intermediate term or long term)? Why? What have you learned about the financial planning process that will be most helpful to you?

45 Reflection How realistic is my plan? How accurately do my goals fit their time categories (short, immediate, and long term)? What suggestions do you have to help me accomplish my goals? What recommendations do you have for more appropriate goals?

46 NEFE High School Financial Planning Program ® Unit 2 Career: Labor You Love Successful Careers Education and Training Pays

47 Instructions Unit 2 – Lesson 2 – Inquire “Money Money Money” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 87 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

48 Instructions Unit 2 – Lesson 2 – Gather “Help Wanted” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 89 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

49 Instructions Unit 2 – Lesson 2 – Process “Education Life” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 91 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

50 Instructions Unit 2 – Lesson 2 – Apply “Training for a Career” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 93 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

51 Reflection How close were your estimates to the actual occupations salaries and educational requirements for these occupations? Which occupations revealed information that surprised you? How would you described the relationship between education and salaries?

52 Reflection What jobs had training or education requirements that surprised you? Why? What would you say to someone who says, “I’m going to be in a dead-end job for the rest of my life”? How has seeing the training and education requirements for jobs you want affect your future plans?

53 Reflection What were you thinking about during the campaign activity? What do you say to someone who says, “School is a waste of time”. I could be working a full-time job right now making lots of money”? How have your feelings and thoughts about high school, vocational programs, and college changed as a result of your campaign?

54 Reflection How were your expectations of the training and education required for certain jobs affected during this activity? How has this unit affected your feelings and attitudes toward education? How would you describe the relationship between education/training and job satisfaction?

55 NEFE High School Financial Planning Program ® Unit 3 Budget: Don’t Go Broke Budgeting Process Consumer Spending

56 Instructions Unit 3 – Lesson 2 – Inquire “Spin City” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 165 in the Instructors Manual Follow instructions in the Instructors Manual Use overheads to role play lesson discussion and reflection* with the entire group REMEMBER: Your team has 15 minutes to present to the entire group!! *reflection overheads were created in PowerPoint for training demonstration

57 Instructions Unit 3 – Lesson 2 – Gather “Climbing the Product Ladder” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 167 in the Instructors Manual Follow instructions in the Instructors Manual Use overheads to role play lesson discussion and reflection* with the entire group REMEMBER: Your team has 15 minutes to present to the entire group!! *Reflection overheads were created in PowerPoint for training demonstration

58 Instructions Unit 3 – Lesson 2 – Process “Shoppers ‘R Us” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 169 in the Instructors Manual Follow instructions in the Instructors Manual Use overheads to role play lesson discussion and reflection* with the entire group REMEMBER: Your team has 15 minutes to present to the entire group!! *reflection overheads were created in PowerPoint for training demonstration

59 Instructions Unit 3 – Lesson 2 – Apply “Shop ‘til You Drop” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 171 in the Instructors Manual Follow instructions in the Instructors Manual Use notepaper to create matrices and write a short essay REMEMBER: Your team has 15 minutes to present to the entire group!! Role play instructions and classroom discussion for entire group

60 Reflection 1.Which is more important: high quality or low price? Why? IM p How did your teammates influence your perceptions and your final choice? 2. How did your perceptions of the companies behind the product/service affect your final choice?

61 Reflection 1.Where do you get reliable information about the product quality and service? 2.How do you know if the source is reliable? 3.How did analyzing your product/service as a group affect your ability to be a smarter consumer? IM p.168

62 Reflection 1.When you see an ad, how do you know the product’s a good deal? 2.What’s the purpose of advertising? 3.What did you learn about advertising from this exercise that is new to you? 4.Is advertising good or bad for consumers?

63 NEFE High School Financial Planning Program ® Unit 4 Savings and Investments Time Value of Money Investing Savings

64 Instructions Unit 4 – Lesson 2 – Inquire “Psst, Wanna Buy a Sure Thing?” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 225 in the Instructors Manual Follow instructions in the Instructors Manual Use overheads to role play lesson discussion and reflection* with the entire group REMEMBER: Your team has 15 minutes to present to the entire group!! *Reflection overheads were created in PowerPoint for training demonstration

65 Instructions Unit 4 – Lesson 2 – Gather “Investment Investigators” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 227 in the Instructors Manual Follow instructions in the Instructors Manual Use overheads to role play lesson discussion and reflection* with the entire group REMEMBER: Your team has 15 minutes to present to the entire group!! *Reflection overheads were created in PowerPoint for training demonstration

66 Instructions Unit 4 – Lesson 2 – Process “Investment Analogies” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 229 in the Instructors Manual Follow instructions in the Instructors Manual Use overheads to role play lesson discussion and reflection* with the entire group REMEMBER: Your team has 15 minutes to present to the entire group!! *Reflection overheads were created in PowerPoint for training demonstration

67 Instructions Unit 4 – Lesson 2 – Apply “Investment Interviews” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 231 in the Instructors Manual Follow instructions in the Instructors Manual Use overheads to role play lesson discussion and reflection* with the entire group REMEMBER: Your team has 15 minutes to present to the entire group!! *Reflection overheads were created in PowerPoint for training demonstration

68 What are some examples of investments you know about? Are investments more like gambling at a casino or buying fresh vegetables at a roadside stand? Why?

69 Reflection What interesting facts did you learn about ________? Which sources of information were most helpful to you? How do you know if a source was reliable? How did you find those sources? How could you help other students who are having difficulty finding information they need, regardless of the topic?

70 Reflection What new insights have you gained about investments? 2. What misconceptions have you had about investments?

71 Reflection What similarities did you notice among the various analogies? Differences? 3.What are the risks and rewards of investing? 2. What has changed in your definition of investing?

72 NEFE High School Financial Planning Program ® Unit 5 Credit: Buy Now, Pay Later How Credit Works Managing Debt

73 Instructions Unit 5 – Lesson 1 –Inquire “Give Me Credit” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 299 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

74 Instructions Unit 5 – Lesson 1 –Gather “Credit Masquerade” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 301 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

75 Instructions Unit 5 – Lesson 1 –Process “Let’s Break Down a Deal” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 303 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

76 Instructions Unit 5 – Lesson 1 –Apply “Loan Ranger” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 309 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

77 Reflection What did you learn that surprised you about how credit works? How do you feel about using credit? What advice would you give to someone who is about to use credit for the first time?

78 Reflection How does it feel to be “in the dark” when you are trying to get a particular piece of information? What strategies did you learn about asking questions? How can an activity like this help you learn to investigate credit offers you will receive after you graduate?

79 Reflection Which variable carried the most weight in your group’s decision-making process? Why? How can you use a credit analysis process like this in your own life? How would feel about committing yourself to two, three or four years of monthly payments? Which is more important to you: a smaller payment or paying less interest?

80 NEFE High School Financial Planning Program ® Unit 6 Insurance: Your Protection Understanding Risk Types of Insurance

81 Instructions Unit 6 – Lesson 1 – Inquire “Student Paranoia” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 359 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

82 Instructions Unit 6 – Lesson 1 –Gather “Lowering the Odd” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 361 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

83 Instructions Unit 6 – Lesson 1 – Process “Managing the Possibility of Loss” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 363 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

84 Instructions Unit 6 – Lesson 1 – Apply “Real-Life Jeopardy” Choose a fun name for your group Pick one person to play the role of the “teacher” The rest of the group will be “students” Turn to page 369 in the Instructors Manual Follow instructions in the Instructors Manual You group has 10 minutes to present to the entire group.

85 Reflection Which risks so you feel are likely to happen to you? What are the different ways you handle these risks? How do you feel knowing there is risk in living every day?

86 Reflection How likely are you to put into practice some of the suggestions made today about handling risk? Why? How do you motivate other people to take steps to reduce their exposure to risks in their lives? How has your perception of risk changed?

87 Reflection What would you say to someone who says, “I’m not going to buy property insurance for my stuff” in case it might be stolen or damaged because that will never happen to me? Based on your situation, what practical but inexpensive actions can you take to lower your risk of a loss? What do you feel are the chances you will experience a loss of some type within the next five years?

88 The NEFE High School Financial Planning Program ® Helping Students Make Their Dreams a Reality!!

89 Invite You To— “Catch the Vision: Join the Journey”

90 Working together to increase the financial literacy of America’s youth!!