2. Wynne Lum – Philanthropy Manager, Bank of America
Doug Young – Director, Center for Economic and Financial Education at The Council for Economic Education
Brian Page, Teacher, Reading Community Schools, Reading, Ohio

3. Benefits of Financial Fitness For Life
K – 12 curriculum
Correlated with national standards
Emphasizes skills for life
Will be tied to Common Core Standards
Lessons stress decision making
Critical Thinking Skills as the Program Progresses
Utilizes active learning strategies
Parent guide (K-5, 6-12)

4. D C B A Rigor/Relevance Framework 6 5 4 3 2 1 1 2 3 4 5
Comparing the costs of your federal student loans given the 6 options available to you with no job.
Having your credit card stolen in a foreign country.
Being denied a lease on an apartment due to a bad credit report.
Paying bills after a cutback in pay, with a mortgage, car loan and college loans due in two weeks.
Understanding inflation and deflation.
Understanding diversification and asset allocation .
Difference in actual cash value versus replacement value in a renters policy. .
Knowing the pros and cons of the “Five Plastics.”
Compound interest and the Rule of 72. D C 5 4 3
Knowing the standard deductions in a paycheck.
Identify the various types of payment methods.
Knowing the basics of banking and savings .
How to setup a budget and calculate net worth.
How much $100 in a 2% savings account would earn in one year.
Your net gain or loss if savings is1% a year and inflation is 2% a year
If Interest rates rise, what will happen to your bond investments.
Figuring the opportunity cost of a 15 yr. fixed mortgage versus a 30 year fixed. 2 A B 1 1 2 3 4 5

5. The Economic Way of Thinking
Productive resources are limited.
People cannot have everything they want.
People must make choices
Every choice involves a cost
People’s choices have consequences
People respond to incentives

6. FFFL: 6-8
Lessons are linked to: National Standards in Economics National Standards in Personal Finance National Standards in Mathematics

7. 5 FFFL Themes for FFFL (K-2)
Theme 1: Earning Income
Lesson 1 – A Good Day for Money Lesson 3 – What is Money?
Lesson 2 – Working for Income
Theme 2: Saving
Lesson 4 – Money Lets Us Choose Lesson 6 – How We Save
Lesson 5 – Why We Save Lesson 7 – Saving Makes Us Wait
Theme 3: Spending
Lesson 8 – We Are Consumers Lesson 10 – We Plan for Spending
Lesson 9 – We Decide to Spend Lesson 11 – Ads make Us Spend
Theme 4: Credit
Lesson 12 – We Are Borrowers Lesson 14 – We Owe Money
Lesson 13- We Are Lenders
Theme 5: Money Management
Lesson 15 – We Make a Budget
Lesson 16 – We Manage Our Money

8. 5 FFFL Themes for FFFL (3-5)
Theme 1: Earning Income
Lesson 1 – Resources are Scarce Lesson 3 – People Pay taxes
Lesson 2 – Urban Mouse and Rural Mouse
Theme 2: Saving
Lesson 4 – That Grasshopper and the Ant
Lesson 5 – Saving Starts with Wanting More
Theme 3: Spending and Credit
Lesson 6 – Consumers Want More Goods Lesson 10 – Why Do I Want All That Stuff?
Lesson 7 – To Choose Is to Refuse Lesson 11 – This One or That One
Lesson 8 – How Would You Like to Pay? Lesson 12 – Credit Is Based on Trust
Lesson 9 – More About Methods and Payments Lesson 13 – Buddy, Can You Spare a Dime?
Theme 4: Money Management
Lesson 14 – Managing Money
Lesson 15 – It’s a Balancing Act

9. 5 FFFL Themes for FFFL (6-8)
Theme 1: The Economic Way of Thinking
Lesson 1 – Resources are Scarce Lesson 3 - The Economic Way of Thinking
Lesson 2 – Making Decisions
Theme 2: Earning Income
Lesson 4 - Why Stay in School? Lesson 6 - Productivity
Lesson 5 - Choosing a Career
Theme 3: Money Management
Lesson 7 - Managing Cash Lesson 9 - What Taxes Affect You?
Lesson 8 - Choosing and Using a Checking Account
Theme 4: Saving
Lesson 10 - Why Save? Lesson 13 - Who Pays and Who Receives?
Lesson 11 - Let Lenders and Borrowers Be Lesson 14 - Stocks and Mutual Funds
Lesson 12 - Types of Savings and Investments
Theme 5: Spending and Credit
Lesson 15 - Cash or Credit? Lesson 17 - Comparison Shopping
Lesson 16 - Establishing Credit Cards

10. 5 FFFL Themes for FFFL (9-12)
Theme 1: The Economic Way of Thinking:
Lesson 1 – How to Really Be a Millionaire Lesson 3 - Decision Making
Lesson 2 – The Economic Way of Thinking
Theme 2: Earning Income:
Lesson 4 - Looking for a Job Lesson 6 - Why Some Jobs Pay More Than Others
Lesson 5 - Making Your Own Job Lesson 7 – Uncle Sam Takes a Bite
Theme 3: Money Management:
Lesson 8 - Managing Your Money Lesson Managing Risk
Lesson 9 - Banking Basics
Theme 4: Spending and Credit:
Lesson 11 – What is Credit? Lesson 16 – Shopping for a Mortgage
Lesson Making Credit Choices Lesson 17 – Shopping for an Auto Loan
Lesson Applying for Credit Lesson 18 – Consumer Credit Protection
Lesson 14 - All About Interest Lesson 19 – Scams and Schemes
Lesson Shopping for a Credit Card
Theme 5: Saving and Investing:
Lesson 20 – What’s the Cost of Spending Lesson 22 – Internet Tools and Investing
Lesson 21 – There is No Free Lunch in Investing

11. Components Teacher guide—17 lessons Student workbook Parent guide
Online support

12. Types of Savings Plans and Investments
Lesson 12
Financial Fitness For Life

13. Presentation Goal
Provide attendees with tools, resources, and activities correlating with Lesson 12 in the middle school Financial Fitness For Life curriculum.
Lesson 12 focuses on “Type of Savings Plan and Investments”

14. Best Practices
Stress concepts and tools that allow students to make wise and informed financial choices for themselves
Examples as it relates to savings…
The power of compound interest and time
“Save First – Spend Second” or “Pay Yourself First”
Make saving automatic
Risk vs. Reward; Time Horizon; Risk Tolerance; Liquidity
It’s not necessary to demand the memorization of arbitrary numbers

15. Why Save?
Emergencies
Opportunities
Future Purchases
Freedom

16. Role Play Attendees will play the role of a middle school student.
You will need
Paper
Something to write with
Phones out but screens down
…and no, you do not get to throw paper airplanes to test my classroom management techniques.

17. Objective: Identify and explain the opportunity cost associated with saving and investing.
Step 1: Write down everything you have bought in the last week. (For kids, it could be with their allowance, or anything their parents have bought them beyond basic necessities)
Step 2: Create an ‘In Out’ list, and complete the list based on regrettable and satisfying spending choices.
Step 3: Illustrate with a financial calculator the opportunity cost of their spending choice if their ‘out list’ would have been saved at 2% for 5 years. (For kids, what could they buy as juniors in high school?)
Variation – plug in higher interest rates over longer time
Compound Interest (Key Concept) Calculator:

18. Objective: Identify types of risk associated with various savings plans and investments.
It’s a Wonderful Life Bank Run
Differences between saving and investing
Risk & Reward
Liquidity
Insured
FDIC
NCUA

19. Objective: Explain why it is important to shop around for savings instruments.
Think: If you only had $5 and needed to grab something to eat, where would you go? What are your options? Why would you make that choice?
Pair: Pair up with someone. You have to make a collective choice.
Share: What did you choose and why?
Key point: Shopping for the right savings instrument is similar. What may be a good fit for one person may not be a good fit for another. Considerations: Minimum balance requirements, liquidity, insurance (FDIC/NCUA), time horizon, location, interest rates

20. Objective: Identify the advantages and disadvantages of various savings instruments.
Simple Savings Account
1% Interest
No minimum balance requirements
No fees
3 Year Certificate of Deposit
3% interest
$1,000 minimum
10% penalty for early withdraw
Money Market Deposit Account
2% interest
$500 minimum balance
$25 below minimum balance fee
5 Year U.S. Savings Bond
4% interest
$2,000 minimum
Can’t be redeemed early without loss
Based on what you have learned, write down the advantages and disadvantages of each of the savings instruments above.

21. Objective: Select a savings instrument suited to a given set of needs at a particular time.
Simple Savings Account
1% Interest
No minimum balance requirements
No fees
3 Year Certificate of Deposit
3% interest
$1,000 minimum
10% penalty for early withdraw
Money Market Deposit Account
2% interest
$500 minimum balance
$25 below minimum balance fee
5 Year U.S. Savings Bond
4% interest
$2,000 minimum
Can’t be redeemed early without loss
Connect each scenario with the appropriate saving instrument & explain why
Julie: 16 years old. Less than $25 saved. Makes around $30 a week. Saving
for prom in 3 months.
Dan: 13 years old. Just received a $2,000 check for his birthday for college.
Susie: 25 years old. Has a full-time job but has trouble saving for future
purchases. She knows she will need a new computer in a few years and
wants to put money aside for the future expense.
Brian: 28 years old. Is looking for a new house. Has around $10,000 saved.
Wants to grab a deal if he finds one.

22. It’s Hard To Save, To Wait For Something You Want
Marshmallow Study
Make saving automatic
Save First – Spend Second
Direct Deposit
Piggy Bank