The Millionaire Game  In your groups- you need 1) a recorder –2) a decision maker –3) a card holder

 Your group will answer each question “True” or “False”. Each correct answer is worth +5, each incorrect answer -5

 After discussing the question- your decision maker will make a final decision. The card holder will hold up the “T” or “F” card, depending on how you answer the question.

 The recorder will number their paper 1-15 and record the true or false answer for the group.  But there’s more……..

 If you are REALLY sure of an answer you can hold up the millionaire card with your answer. If you are correct +10, incorrect –10.  You can only use it 5 times, so use it wisely

 Ready????

Question 1  Most millionaires are college graduates.  True or False?

Question 2  Most millionaires work fewer than 40 hours a week.  True or False?

Question 3  More than half of all millionaires never inherited money.  True or False?

Question 4  Most millionaires attended private schools.  True or False?

Question 5  Most millionaires drive expensive new cars.  True or False?

Question 6  Most millionaires work in glamorous jobs, such as sports, entertainment, or high tech.  True or False?

Question 7 Most millionaires work for very large public companies. True or False?

Question 8  Many poor people become millionaires by winning the lottery.  True or False?

Question 9  A college graduate earns almost double the annual income of a high school graduate.  True or False?

Question 10  If an average 18 year old HS grad spends as much as an average HS dropout until both are 67, but the graduate invests the difference in earnings at 8% annual interest, the grad would have $5,500,000.

Question 11 Investors who buy and hold stocks for the long-term have better long-term stock returns than those who buy and sell stocks more frequently.  True or False?

Question 12 Millionaires tend to avoid the stock market.  True or False?

Question 13  At age 18, you decide not to drink soda from the vending machine and save $1.50 a day. You invest this $1.50 a day at 8% annual interest until you are 67. At age 67, your savings from not buying soda from the vending machine are almost $300,000.  True or False?

Question 14  If you save $2,000 a year from age 22 to age 65 at 8% annual interest, your savings will be over $700,000 at age 65.  True or False?

Question 15  Single people are more often millionaires than married people.  True or False?

 Get ready to score your group’s papers.  If it is correct = + 5  If it is incorrect = -5  If you bet with your “M” card and was correct = +10  If you bet with your “M” card and was incorrect = -10

Question 1  True  4/5 millionaire are college grads, 18% have Master’s degrees 8% have law degrees, 6% medical degrees, 6% PhD’s.

Question 2  False  2/3 of millionaires work hours a week

Question 3  True  19% received any wealth or income of any kind from a trust fund or estate  Fewer than 10% inherited 10% or more of their wealth

Question 4  False  Most millionaires attended public schools. Fewer than 20% of female millionaires attended private schools.)

Question 5  True  Most millionaires spend under $30,000 for a car.  Only 23 percent of millionaires drive a current-year [new model] car.)

Question 6  False  Most millionaires work in ordinary industries and jobs. They become wealthy because they make good use of identifying opportunities.

Question 7  False  About three out of four millionaires are self-employed and consider themselves to be entrepreneurs. Most of the others are professionals, such as doctors, accountants, and lawyers.)

Question 8  False  Chances of winning the lottery are 1 in 12 million- playing every day- Have to be 33,000 years old to win once.  1 in 1.9 million chance of being struck by lightning twice  A pregnant woman has a 1 in 750,00 of delivering quads  How many quads do you know?

Question 9  True  In recent years, the average college graduate earned nearly double [$51,206] the yearly income of the average high school graduate [$27,915]. People with professional degrees earned an average income of $74,602, or over 250 percent more than the average high school graduate. The average worker without a high school degree earned $18,734 [2004 census figures].)

Question 10 True  Value of High School Diploma  The difference in earnings between a high school graduate and a high school dropout is $8,000 at age 18. The illustration assumes that the difference increases by 1.5 percent each year and that the difference is invested at eight percent interest each year.)

Question 11  False  Studies show that individuals who buy and hold stock versus turning stock over more quickly have greater net gains. The costs related to hypertrading [buying and selling stock with great frequency] in terms of time and money can reduce the gains of even the luckiest investor.)

Question 12  False  Millionaires know that over a long time period [starting in 1926 and including the Great Depression], the Standard & Poor’s 500 Stock Index has increased at about a 10 percent compound annual rate of return, exceeding the return on most other investments. Another way of looking at this is that $1.00 invested in the S&P 500 in 1927 was worth about $3,286 by the end of One dollar invested in long-term government bonds during the same period was worth about $76 on December 31, 2007.

Question 13  True  Because of the power of compound interest, small savings can make a difference. It pays to live below your means. Find a balance between spending now and saving for the future.)

Question 14  True  Because of the power of compound interest, the earlier you begin saving, the better. Regular saving can make you a millionaire, even if your salary is modest.)

Question 15  False  Most millionaires are married and stay married. By contrast, divorce is expensive; it is potentially a gateway to poverty, especially for women. Financially speaking, divorce is something you want to avoid.)

 How did you do??  Calculate your scores  +5 = correct  -5 = incorrect  +10 correct Millionaire  -10 incorrect Millionaire

RULES FOR IMPROVING YOUR FINANCIAL LIFE  Get a good education.  Work long, hard, and smart.  Learn money management skills.  Spend less than you could.  Save early and often.  Invest in common stock for long term.  Gather information before making decisions.

Debriefing the Millionaire Game  Pass out a copy of the quiz.  Ask the students in pairs or threes to decide which rule for improving your financial life each statement illustrates.