1. Financing Your Future

2. 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

3. Instructors Dr. Angela Lyons Associate Professor, University of Illinois (217) 244-2612; anglyons@illinois.edu Debra Bartman Extension Educator, Quad Cities Center (815) 875-3183; dbartman@illinois.edu Patricia Hildebrand Extension Educator, Effingham Extension Center (217) 347-5126; phildebr@illinois.edu

4. 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

5. Financing Your Future Website http://financingyourfuture.councilforeconed.org/

6. Table of Contents

7. Sample Videos & Lessons

8. Workshop Leader’s Guide

9. Glossary

10. 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)

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

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

13. 13 National Standards – Personal Finance

14. 14 Video 1: Get a Financial Life

15. 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. 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. 17 September 2015 17 Video 1 – Visuals and Activities

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20. 20 Video 1 Activity 1.1.2 - 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.

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24. 24 Video 2: Get Smart

25. 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. 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. 27 Video 2 – Visuals and Activities

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33. National Center for Education Statistics www.nces.ed.gov

34. Bureau of Labor Statistics (BLS) Occupational Outlook Handbook (OOH) 2008-2009 Edition www.bls.gov/oco/

36. BLS Employment Projections Program (EPP) www.bls.gov/emp/#tables Tables, Tables, and More Tables!!!

37. BLS State Sources www.bls.gov/oco/oco20024.htm

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

39. Teacher’s Guide to OOH www.bls.gov/oco/teachers_guide.htm

40. Exploring Career Information from the BLS (2008-2009 Edition) www.bls.gov/k12/index.htm

41. 41 Video 2 – Activity 2.3.1 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.

42. 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

43. 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).

44. 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.

45. 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. 46 Additional Activities 2.3.2 Assessing My Skills 2.3.3 My Career Roadmap

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

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

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

50. 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?

51. 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?

52. 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. 53 Video 5: Get A Financial Plan

54. 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. 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. 56 Video 5 – Visuals and Activities

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

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63. 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

64. 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

65. 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

66. 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. 67 Activity 5.2.1 Building A Budget to Build Wealth Part 1

68. 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? 5.2.1 Discussion Questions

69. 69 Activity 5.2.2 Building A Budget to Build Wealth Part 2

70. 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? 5.2.2 Discussion Questions

71. 71 Activity 5.2.3 Building A Budget to Build Wealth Part 3

72. What changes did Anya make? Why are these good changes for Anya? What type of expense is car maintenance? 5.2.3 Discussion Questions

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

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

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

76. U of I Center for Economic and Financial Education http://www.cefe.illinois.edu/

77. FINANCING YOUR FUTURE http://www.cefe.illinois.edu/tools/fyf.html

78. LINKS http://www.cefe.illinois.edu/links/

79. Other Resources Council for Economic Education http://www.councilforeconed.org/ Econ Illinois http://www.econed-il.org/icee/ University of Illinois Extension Consumer and Family Economics www.ace.uiuc.edu/cfe

80. NCEE www.ncee.net Council for Economic Education http://www.councilforeconed.org/

81. Questions