Personal Finance for the Next Generation

Dr. Sherry J. Roberts2009 OATFACS Summer Conference

• Did you know it is estimated of teens age 12-17: – 47.4% have a savings account;– 11.6% have a checking account;– 15% have an ATM card;– 3.5% have a credit card in their own

name.

*PR Newswire, Jan 7, 2008

• Over thirty percent of high school students use a credit card and more than 80 percent of undergraduate college students have at least one credit card.

• Did you know that the estimated 24.8 million people age 12-17 represent a total yearly income of $80 billion for marketers?

• They are now the prime target for: ”plastic”—debit, credit, and gift cards.

• Of teens ages 14-19, 95 percent have either bought or received a gift card!

Activity 1

• Monopoly Activity

Activity 2

• Think, Write, Pair, Share– How to do the activity

• Review vocabulary

• Review chapter content

• Review for testing

– Handout

• Did you know that teenagers agree it is important to have a lot of money?

• Did you know 73 percent of teenagers believe they will earn “plenty of money” when they are out on their own?

“Optimistic Teens May Need Financial Reality Check, Schwab Survey Shows.” PR Newswire (March 27, 2007):

NA. General OneFile. Gale. Middle Tennessee State University. 10 Apr. 2008 <http://find.galegroup.com/itx/start.do?prodId=ITOF>.

• One recent survey found that teenagers believe that they will earn an average annual income of $145,500.

• Of this group, boys think they will earn $173,000, while girls estimate their salary at $114,200 per year.

• Just five percent of the U.S. population earns a six-figure salary.

• Approximately $40,000 is the national average wage.

How we spend our moneyAccording to the Department of Labor, consumers had the following spending patterns for 2006:

Food 12.6%

Housing 33.8%

Apparel and service 3.9%

Transportation 17.6%

Healthcare 5.7%

Entertainment 4.9%

Personal insurance and pensions 10.9%

Other 10.6%

Source: http://www.bls.gov/news.release/cesan.nr0.htm

Activity 3

• Newspapers in the Classroom– How to do the activity

• Use for Vocabulary review

• Use to reinforce terms and knowledge

• Use to promote discussion of current events– Local, regional, state, national, and global

– Handout

• Less than half the states have state standards for Personal Finance

• Less than 10 have Personal Finance required for high school graduation

• The majority of states list Personal Finance as a course that is taught.

– As an Economics, Social Studies, finance curriculum, math, career education, consumer education, FACS, Business Education, and stand-alone

Activity 4

• Budgeting– Open Response

• Good writing activities

• Scoring guide is included

– Budgeting activity

• Both make a connection with math

Where to find information on Careers:• For information on the fastest growing

occupations and occupations projected to have the largest number of increases in employment between 2006 and 2016 go to the Occupational Outlook Handbook— http://www.bls.gov/oco/home.htm .

• If you want to know how much money certain professions pay, go to www.careerjournal.com and type in a job title.

• The United States government also publishes pay information at www.bls.gov.

More web resources:

http://finance.yahoo.com/banking-budgeting

http://moneycentral.msn.com/home.asp

Let’s end

• Many of the activities you have been given are in the workbook, teacher resources, or textbook:– Personal Financial Literacy

• Madura/Casey/Roberts

• Pearson

Questions and Answers

• Contact information:

Dr. Sherry J. Roberts.

sjrobert@mtsu.edu

615.904.8250

Middle Tennessee State University

Murfreesboro, TN