1. Assignment 6 Lesson 58 Lesson Plan by Dennis Tabbal General Financial Literacy Standard 3 Objective 1 and 2

2. GFL Standard 3 Objective 1  Explain the role of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Association (NCUA).  Define the following:  FDIC  NCUA  See next slide for more information

3. VENN Diagram Banks Savings Certificate of Deposits (1 Year) Certificates of Deposits (5 Years) Credit Unions For Profit Not for Profit

4. GFL Standard 3 Objective 1 Part 1  Compare the roles of financial institutions and their services, such as banks, credit unions, investment or brokerage firms, insurance companies, and loan agencies.  Challenge students to figure out the Dow Jones (pdf) company by a simple description.Dow Jones  Assign reading partners

5. GFL Standard 3 Objective 1 Part 2  Demonstrate how to manage checking/debit and saving accounts, both manually and/or electronically, including reconciliation.  View Damon Williams: 14 Year Old Investor on Track to Become Millionaire! video (4:44) Ask students to share how they felt while watching the video. Discuss whether it motivates them, gives them hope, makes them jealous, etc. Have them silently identify aspects of their lives that could develop into money making opportunities. Damon Williams: 14 Year Old Investor on Track to Become Millionaire!  Use graphic organizers

6. GFL Standard 3 Objective 1 Part 3  Describe available consumer banking technologies.  View Investing Isn’t Just for Rich People video (5:56) Ask students to discuss why they think most people think that investing is for rich people. Discuss the idea that it isn’t how much you have, but what you do with what you have that matters most.Investing Isn’t Just for Rich People  Use Think-Pair-Share

7. GFL Standard 3 Objective 2 Part 1  Explain how paying yourself first (PYF) early and often influences positive progress toward long-term, financial goals.  View Saving Money in Plain English video (3:49) to learn how compound interest works. A simple explanation of how money saved in a bank grows, thanks to compound interest.Saving Money in Plain English  Read Alexander Who Used to be Rich Last Sunday to the class. Have students complete the Alexander Worksheet (pdf) and discuss his ability to save his money.Alexander Who Used to be Rich Last SundayAlexander Worksheet  Use Think-Pair-Share

8. GFL Standard 3 Objective 2 Part 2  Identify and understand basic saving options such as savings accounts and Certificates of Deposit. Understand that savings are designed to preserve principal.  View Time Value of Money video (3:17) After viewing, give students ten minutes to free write about any thoughts, feelings, and experiences they have pertaining to the clip. Ask if anyone would like to share what they wrote, then discuss.Time Value of Money video

9. GFL Standard 3 Objective 2 Part 3  Identify and understand investment options, including retirement planning, long- and short-term investments, and dividend re-investment plans. Understand that investments put principal at risk.  Read the stock market section of the business page of a newspaper for three days. Identify five terms or ideas you do not understand which seem important to understanding how the stock market works. Share these unknowns with your classmates and teachers so everyone can help one another understand key ideas while learning about the stock market.  Use Think-Pair-Share

10. GFL Standard 3 Objective 2 Part 4  Identify types of long-term retirement investments, such as IRA, Roth IRA, 401(k), and 403(b), as well as reasons to invest.  Create an action plan for completing the steps you need to start building wealth in the next one to three years and beyond. Create a visual timeline on a calendar.

11. GFL Standard 3 Objective 2 Part 5  Demonstrate time value of money (TVM) principles by using the rule of 72 and by manipulating the five variables used in basic TVM calculations.  Emphasize the importance of starting early in retirement planning by using the Time Value of Money Excel spreadsheet (xls). Click on the narrative tab at the bottom of the screen to understand how to demonstrate using the spreadsheet.Time Value of Money Excel spreadsheet

12. GFL Standard 3 Objective 2 Part 6  Discuss the long-term investment potential associated with the stock market, focusing on fundamentals such as diversification, risk/reward, and investor behavior.  Read Uncle Mort's Money, from the lesson Why Study the Stock Market(pdf). See pages 7-8. Decide what you and your group think Jody should do with the money. Discuss the potential costs and benefits of each alternative.Why Study the Stock Market

13. GFL Standard 3 Objective 2 Part 7  Identify and define the types of financial risks, including inflation, deflation, and recession.  What are financial risks?  What are the effects for inflation, deflation and recession play on wealth preservation?

14. Extra Credit work  Write a one page paper on your thoughts regarding these two links:  http://money.usnews.com/money/personal- finance/articles/2012/10/09/why-most-high-schoolers-dont-know-how-to- manage-their-money http://money.usnews.com/money/personal- finance/articles/2012/10/09/why-most-high-schoolers-dont-know-how-to- manage-their-money   http://business.time.com/2012/11/20/why-so-many-americans-dont-have- bank-accounts/ http://business.time.com/2012/11/20/why-so-many-americans-dont-have- bank-accounts/

15. What is your plan for retirement?  Write a four page paper regarding your proposed retirement plan.  This paper is to be double spaced.  May include the following:  Excel worksheets  PowerPoint slides

16. Questions?  If there are any questions regarding this paper, please come and see me for discussion.

17. The End