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

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

3.  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.

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

5.  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

6.  Ready????

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

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

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

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

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

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

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

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

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

16. 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.

17. 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?

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

19. 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?

20. 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?

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

22.  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

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

24. Question 2  False  2/3 of millionaires work 45-55 hours a week

25. 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

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

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

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

29. 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.)

30. 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?

31. 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].)

32. 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.)

33. 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.)

34. 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 2007. One dollar invested in long-term government bonds during the same period was worth about $76 on December 31, 2007.

35. 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.)

36. 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.)

37. 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.)

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

39. 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.

40. 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.