Financing Your Future

This conference is made possible by: Council for Economic Education University of Illinois Extension COUNTRY ® Financial U.S. Department of Education Office of Innovation and Improvement

Instructors Dr. Angela Lyons Associate Professor, University of Illinois (217) ; Debra Bartman Extension Educator, Quad Cities Center (815) ; Patricia Hildebrand Extension Educator, Effingham Extension Center (217) ;

Financing Your Future 5 videos 15 lesson plans – 3 for each video Glossary of terms Test bank (pre- and post-test questions) Table of correlations to learning standards for economics, mathematics, and personal finance

Financing Your Future Website

Table of Contents

Sample Videos & Lessons

Workshop Leader’s Guide

Glossary

10 Video Summaries 1.Get a Financial Life (setting financial goals and building wealth) 2.Get Smart (decisions have consequences) 3.Get Banked (developing banking relationships) 4.Get the Credit You Deserve (understanding credit and debt) 5.Get a Financial Plan (financial planning and saving early and often)

17 September 2015 FINANCING YOUR FUTURE © NATIONAL COUNCIL ON ECONOMIC EDUCATION, NEW YORK, N.Y. 11 National Standards - Economics

17 September 2015 FINANCING YOUR FUTURE © NATIONAL COUNCIL ON ECONOMIC EDUCATION, NEW YORK, N.Y. 12 National Standards - Mathematics

13 National Standards – Personal Finance

14 Video 1: Get a Financial Life

15 Video 1 – Get a Financial Life 3 Lesson Plans Lesson 1.1: What is a Financial Life? Lesson 1.2: Setting Financial Goals Lesson 1.3: Spending Less Than You Earn

16 Video 1 - Key Concepts Building wealth Net worth and savings Setting financial goals Short, medium, and long-term goals Opportunity costs Spending less than you earn Income and expenditures

17 September Video 1 – Visuals and Activities

18

19

20 Video 1 Activity Financial Scenarios Divide students/clients into groups. Assign a financial scenario to each. Discuss whether saving and investment habits will lead to wealth accumulation, and why or why not. List factors that add to wealth. List factors that detract from wealth. Consider factors not spelled out in the scenario that might change the groups opinion. Assign someone in each group to report back.

21

22

23

24 Video 2: Get Smart

25 Video 2 – Get Smart 3 Lesson Plans Lesson 2.1: Why Can’t I Have Everything I Want? Lesson 2.2: Decisions About My Human Capital – What Is It, and How Do I Get Some? Lesson 2.3: Learning is a Lifetime Investment – Constructing a Career Roadmap

26 Video 2 - Key Concepts Decision-making and problem solving Decisions have consequences Trade-offs Opportunity costs Alternatives Criteria Cost/benefit analysis Human capital

27 Video 2 – Visuals and Activities

28

29

30

31

32

National Center for Education Statistics

Bureau of Labor Statistics (BLS) Occupational Outlook Handbook (OOH) Edition

BLS Employment Projections Program (EPP) Tables, Tables, and More Tables!!!

BLS State Sources

Illinois Department of Employment Security lmi.ides.state.il.us/

Teacher’s Guide to OOH

Exploring Career Information from the BLS ( Edition)

41 Video 2 – Activity Career Decision Process Step 1: Define the P roblem. Step 2: List your A lternatives. Step 3: Identify your C riteria. Step 4: E valuate your alternatives based upon the criteria. Step 5: Make a D ecision.

What Do You Want to Be When You “Grow Up?” Criteria Alternatives Criterion 1 Criterion 2 Criterion 3 Criterion 4 TOTAL Career Option 1 Career Option 2 Career Option 3

Directions Divide students into groups. Distribute 3 different career alternatives to each group. Use the first column on the decision grid to identify the 3 “career options.” Have the students brainstorm a list of criteria that are important to them in making a career choice (e.g., hours, salary, benefits, personal interests, educational requirements, vacation benefits, adventure, helping others, working conditions, safety, promotion and advancement, stress).

Have the students write the most important “criteria” in the appropriate columns of the decision grid. For each career option, the students should then rate each criterion with a number from “1” to “5.” “5” indicates the career option rates most favorably according to that criterion. “1” indicates the option rates least favorably. When students have finished, they should add up the total for each career and enter it into the last column. Students should place a “star” next to the career best suited to them.

Have students discuss in their groups why they chose a particular career. Does that career require post-high school training? How much additional education is needed to attain their chosen career? What types of training and education will they need? Discussion Questions

46 Additional Activities Assessing My Skills My Career Roadmap

Session 1 Finding Your Calling – Career Planning and Life Skills Simulation Brittney Richards Prairieview-Ogden Jr. High School

Session 2 The Changing Employment Scene – Gearing Up for New Opportunities Panelists Jennifer Goveia, State Farm® Mark Guzzardo, Caterpillar® Sue Herriott, OSF HealthCare

1. Current Economy and Jobs How has the economy affected current employment opportunities within your company, your industry, and the local community in general?

2. Future Employment Opportunities What is your outlook for future employment opportunities? What employment challenges do you see in the next few years? What can individuals do to prepare themselves?

3. Job Skills and Training In the future, what will employers be looking for? What types of hiring needs will they have? What types of job skills and training will future employees need to have?

4. Workplace Financial Issues What types of financial issues are on employees minds right now? How can financial educators potentially help employees to be less stressed and in more control of their finances?

53 Video 5: Get A Financial Plan

54 Video 5 – Get A Financial Plan 3 Lesson Plans Lesson 5.1: Why Should I Pay Myself First? Lesson 5.2: How to Create a Financial Plan Lesson 5.3: Risks and Rewards?

55 Video 5 - Key Concepts Saving early and often Compound interest Rule of 72 Income, expenses, and budgeting Fixed vs. variable expenses Assets, liabilities, and net worth Types of investment instruments Risk vs. return Diversification

56 Video 5 – Visuals and Activities

57

Time Value of Money The earlier you save, the more $$’s you will have.

59

60

61

62

Savings accounts: provide a small but steady return. Certificates of deposit: very safe, but instant access carries a penalty. Bonds: lending money to a corporation or government, with a promise of higher returns than those offered by bank savings accounts and CDs. Stocks: part ownership in a company, offering higher risks and, potentially, higher returns than some other investments. Real estate: the risks and benefits of being a landlord. Forms of Saving and Investing: Benefits and Costs

Very High Risk Junk bonds, options High Risk Growth stocks, growth funds, aggressive-growth mutual funds Moderate Risk Income funds, balanced mutual funds, bond funds, municipal bonds, corporate bonds, blue-chip stocks Very Low Risk Treasury bills, CDs, money markets funds, savings accounts Risk Pyramid

Video 5 (Lesson 5.3) Activity – Trade-Off Between Risk and Return (Learning, Earning, and Investing) Floor Markers: Mattress Savings Accounts CDs Bonds Stocks Mutual Funds Real Estate

Investment Situations: Which Form Will You Choose? You have $5,000 to invest. No other information is available. You have $4,000 that you’ll need six months from now. You inherited $10,000 from your great-aunt; she has suggested that you save it for use in your old age. You are just starting a career and can save $50 per month for retirement. A new baby arrives, and Mom and Dad plan to save $100 a month for the child’s college education.

67 Activity Building A Budget to Build Wealth Part 1

Is there anything you think Anya left out of her budget? Do any of Anya’s expenses seem too high or too low to you? Discussion Questions

69 Activity Building A Budget to Build Wealth Part 2

What reductions did Anya make in her spending? What categories did she add to her budget? How is she handling the periodic expense – car insurance? What is still missing from her budget? What is the major problem with Anya’s budget now? What recommendations would you make to help correct the problems with her budget? Discussion Questions

71 Activity Building A Budget to Build Wealth Part 3

What changes did Anya make? Why are these good changes for Anya? What type of expense is car maintenance? Discussion Questions

Session 3 A Financial Check-Up – Preparing for Job and Employment Transitions Brad Wurth and Rick Kline COUNTRY ® Financial

Session 4 Landing Your Dream Job – Smart Strategies for Competing in the Job Market Pat Hildebrand University of Illinois Extension

Session 5 Building Your Future – The Ultimate in Career Roadmapping Pamela Daniel Illinois workNet™

U of I Center for Economic and Financial Education

FINANCING YOUR FUTURE

LINKS

Other Resources Council for Economic Education Econ Illinois University of Illinois Extension Consumer and Family Economics

NCEE Council for Economic Education

Questions