PFL - Financial Fitness for Life

PFL - Financial Fitness for Life

Germaine Gray – Texas Southern University

June 12, 2012 – Austin, Texas

The Lone STARR State in a Global Economy

All lessons are based on real-world concepts, and are presented in a manner that reinforces learning through practice.

Features common to all grade levels include the following:

•FFFL materials are based on national standards. A matrix at each of the four grade levels shows how lesson content

correlates to standards in economics, personal finance, mathematics (K-8), and language arts (K-5).

•FFFL materials engage students in the economic way of thinking. Concepts from economics provide the organizing

framework and logic by which students learn how to make good decisions, and, equally important, how to avoid poor ones.

The emphasis on economics concepts and the economic way of thinking distinguishes these materials from others used to

develop personal financial literacy.

•FFFL materials call for active learning. Lesson procedures describe engaging, hands-on instructional activity designed to

reinforce students' understanding through applications and practice.

•FFFL materials address concepts in a developmentally appropriate manner. Lessons for younger students frequently

emphasize narrative, drama, and physical representations of economics and personal finance concepts. Lessons for older

students illustrate certain uses of more abstract representations. The developmental approach to learning has been a

hallmark of Council for Economic Education materials for several decades.

•FFFL materials emphasize a variety of teaching methods compatible with different learning styles. Role playing, group

discussions, gathering information from the Internet, reading materials, interviewing individuals, drawing pictures, and

analyzing case problems are some of the many teaching methods found in the materials. Additional resources are available

online at http://fffl.councilforeconed.org

•FFFL materials are reinforced by assessments. Assessments are provided at the end of each theme.

•FFFL materials invite parents to play a role. Parents can play an important role in developing their children's personal

financial literacy. FFFL lessons for each level are accompanied by a parent guide. These guides provide background

information and activities, linked to the lessons, which parents may use to reinforce and extend their children's

understanding of topics in personal finance.

http://fffl.councilforeconed.org/

Select a

lesson

http://fffl.ncee.net/book-overview.php?gradeLevel=9-12

Visual

http://fffl.councilforeoned.org/6-8/lesson 13

MATERIALS

• A transparency of Visual 13.1, 13.2A, 13.2B, 13.3A, 13.3B, 13.4, 13.5 and 13.6 • A copy for each student of Introduction and Vocabulary sections of Lesson 13 from the Student Workbook

http://fffl.councilforeconed.org/9-12/lesson



Lesson 13 Objectives

At the end of this lesson, the student will be able to:

• Calculate simple and compound interest.

• Explain the opportunity cost of allowing interest to compound.

• Explain the opportunity cost of taking interest as it is earned.

• Analyze the difference between simple and compound interest.

• Explain the factors that affect how money grows.

• Apply the Rule of 72.

•Visual

MATERIALS

• A copy for each student of Theme 3

Introduction from the Student Workbook

• Five copies of Exercise 8.1 from the Student Workbook

• A copy for each student of Exercise 8.2A, 8.2B, and 8.3 from

the Student Workbook

http://fffl.councilforeconed.org/9-12/lesson8

Lesson 8 Objectives

1. Identify and explain the meaning of key terms such as disposable income, family budget, variable expense, fixed expense, occasional expense, and net worth.

2. Identify the elements of a typical monthly family

budget including income, expenses, and savings.

3. Make spending recommendations for a fictional

young family, taking account of the costs and benefits involved

Lesson 8 Overview

• Role play exercise identifying budgeting related terms.

• Budgeting exercise for a typical family identifying monthly income and expenditures.

• Additional budgeting exercise involving adjusting monthly budget to meet a financial goal.

•Visual

MATERIALS

• A copy for each student of Exercise 17.1, 17.2, 17.3, and 17.4 in the Student Workbook


•Visual


Lesson 17 Objectives

At the end of this lesson, the student will be

able to:

• Compare costs of different loans and choose the loan with the lowest cost.

• Demonstrate how to shop for a loan online.

• Explain the factors that reduce the cost of a loan.

Lesson 17 Overview

ECONOMIC AND PERSONAL FINANCE CONCEPTS

• Annual percentage rate (APR)

• Auto loan

• Credit

Visual


MATERIALS

• A copy of the Introduction and Vocabulary sections from Lesson 3 of the Student Workbook for each student • A copy for each student of Exercise 3.1, 3.2, and 3.3 from the Student Workbook




Lesson 3 Details

ECONOMIC AND PERSONAL FINANCE CONCEPTS

• Consequence

• Incentive

• Opportunity cost

OBJECTIVES

At the end of this lesson, the student will be able to:

• Identify the costs and benefits of a choice.

• Identify and evaluate incentives.

• Analyze choices and predict consequences

Visual


MATERIALS

• Visual 15.1, 15.2, and 15.3 • A copy for each student of Introduction to Theme 5 and Introduction and Vocabulary sections of Lesson 15 from the Student Workbook • A copy for each student of Exercise 15.1, 15.2, and 15.3 • A copy for each student of Lesson 15 Assessment




Personal Financial Literacy TEKS

Grade 6 Personal Financial Literacy TEKS Student Expectation

The student is expected to:

Financial Fitness for Life,

Grades 6-8

Hands on Banking - Teens

www.handsonbanking.org

6.14A compare the features and costs of a checking

account and a debit card offered by different

local financial institutions;

Lesson 8: Choosing and Using a Checking

Account

Teens: Saving and Checking Guide

6.14B distinguish between debit cards and credit

cards;


Account

Lesson 15: Cash or Credit

Teens: Credit and You

Young Adults: All About Credit

6.14C balance a check register that includes

deposits, withdraws, and transfers;


Account

Teens: Savings and Checking Guide

6.14D explain why it is important to establish a

positive credit history;

Lesson 16: Establishing Credit Teens: Credit and You


6.14E describe the information in a credit report

and how long it is retained;



6.14F describe the value of credit reports to

borrowers and to lenders;



6.14G explain various methods to pay for college

including through savings, grants,

scholarships, student loans, and work-study;

Young Adults: School & $

6.14H compare the annual salary of various

occupations requiring various levels of

postsecondary education or vocational

training and calculate the effects of various

annual salaries on lifetime income.

Lesson 4: Why Stay in School

Lesson 5: Choosing a Career

Lesson 6: Productivity

Young Adults: School & $

Young Adults: Earning

Grade 6 Personal Financial Literacy




Grades 6-8



7.15A calculate the sales tax for a given purchase

and calculate income tax for earned wages;

Lesson 9: What Taxes Affect You? Young Adults: Earning

7.15B identify the components of a personal

budget, including income, planned savings

for college, retirement and emergencies,

taxes, and fixed and variable expenses, and

calculate what percentage each category

comprises of the total budget;

Lesson 7: Managing Cash

Lesson 10: Why Save?

Teens: Budgeting

7.15C create and organize a financial assets and

liabilities record and construct a net worth

statement;

7.15D determine the minimum household budget and average hourly wage needed for a family to meet its basic needs in the student’s city or another large city nearby;

7.15E calculate and compare simple interest and

compound interest earnings;

Lesson 13: Who Pays and Who Receives? Teens: Savings and Checking Guide

7.15F analyze and compare monetary incentives

including sales, rebates and coupons.

Lesson 3: The Economic Way of Thinking Teens: You and Your Money




Grades 6-8



8.12A solve real-world problems comparing

how interest rate and loan length affect

the cost of credit;

Lesson 13: Who Pays and Who Receives? Young Adults: All About Credit

8.12B calculate the total cost of repaying a loan, including credit cards and easy access loans such as payday loans under various rates of interest and over different periods using an on-line calculator;

Lesson 15: Cash or Credit Teens: Credit and You


8.12C explain how small amounts of money invested regularly including money saved for college and retirement over time grows;

Lesson 13: Who Pays and Who Receives?



8.12D calculate and compare simple interest and compound interest earnings;

8.12E identify and explain the advantages and

disadvantages of different payment

methods;


Account


8.12F analyze financial situations to determine

if the situation is a financially responsible

decision and identify the benefits of

financial responsibility and the costs of

financial irresponsibility;

Lesson 2: Making Decisions

Lesson 15: Cash or Credit



8.12G estimate the cost of a 2-year and 4-year college education including family contribution and devise a periodic savings plan for accumulating the money needed to contribute to the total cost of attendance for at least the 1st year of college

Young Adults: Spending Smart

FFFL Lesson:

Grade 6 Grade 7 Grade 8

Current Math TEKS Current Math TEKS Current Math TEKS

1

2

3 6.2B, 6.2C, 6.11A, 6.11B,

6.11C, 6.11D,

7.2B, 7.2D, 7.2F, 7.2G,

7.3B, 7.13A, 7.13B, 7.13C,

7.13D

8.2A, 8.2B, 8.2C, 8.3B,

8.14A, 8.14B, 8.14C, 8.14D

4

5 6.3B 7.1B 8.3B

6

7 6.11A, 6.11B, 6.12A 7.13A, 7.13B, 7.14A 8.14A, 8.14B, 8.15A

8 6.2B 7.2B 8.2B

9 6.2B 7.2B 8.2B, 8.2B

10 6.2A, 6.2B, 6.2C, 6.2D,

6.2E, 6.11A, 6.11B, 6.12A

7.2B, 7.2F, 7.2G, 7.13A,

7.13B, 7.14A

8.2A, 8.2B, 8.2C, 8.14A,

8.14B, 8.15A

11

12 6.3C 7.3A, 7.3B 8.3B

13 6.2A, 6.2B, 6.2C, 6.4A 7.2B, 7.3A 8.3A, 8.3B, 8.4A

14

15 6.2C, 6.3C, 6.4A, 6.11A,

6.11B, 6.12A

7.2A, 7.2B, 7.3A, 7.13A,

7.13B, 7.14A

8.2B, 8.3B, 8.4A, 8.14A,

8.14B, 8.15A

16 6.3B 7.3A 8.3B

17

Current 6-8 Mathematics TEKS Correlation


Grades K - 5

Grade K Personal Financial Literacy TEKS Student Expectation



Grades K-2

Hands on Banking


K.4 The student is expected to identify U.S.

coins by name, including pennies, nickels,

dimes, and quarters.

Lesson 3: What is Money?

K.9A identify ways to earn income; Lesson 1: Earning Income Kids: You and Your Money

K.9B differentiate between money received as

income and money received as gifts;

Lesson 1: Earning Income Kids: You and Your Money

K.9C list simple skills required for jobs; Lesson 1: Earning Income

K.9D distinguish between wants and needs and

identify income as a source to meet one’s

wants and needs.

Lesson 7: Savings Makes Us Want

Lesson 8: We are Consumers

Kids: Budgeting




Grades K-2

Hands on Banking


1.4A identify U.S. coins, including pennies, nickels, dimes, and quarters, by value and describe the relationships among them;


1.4B write a number with the cent symbol to describe the value of a coin;


1.4C use relationships to count by twos, fives, and tens to determine the value of pennies, nickels, and dimes

Lesson 9: We Decide to Spend

1.9A define money earned as income; Lesson 1: Earning Income Kids: You and Your Money

1.9B identify income as a means of obtaining

goods and services; oftentimes making

choices between wants and needs;

Lesson 2: Working for Income


Lesson 9: We Decide to Spend

Kids: You and Your Money

1.9C distinguish between spending and saving; Lesson 4: Money Let’s Us Choose


Lesson 16: We Manage Our Money

Kids: Savings and Checking Guide

1.9D consider charitable giving Lesson 15: We Make a Budget

Lesson 16: We Manage Our Money




Grades K-2

Hands on Banking


2.5A determine the value of a collection of

coins up to one dollar; Lesson 3: What is Money?

2.5B use the cent symbol, dollar sign, and the

decimal point to name the value of a

collection of coins.


2.11A calculate how money saved can

accumulate into a larger amount over

time;

Lesson 5: Why We Save Kids: Savings and Checking Guide

2.11B explain that saving is an alternative to

spending;

Lesson 5: Why We Save

Lesson 7: Savings Makes Us Want

Kids: Savings and Checking Guide

2.11C distinguish between a deposit and a

withdrawal;

Lesson 6: How We Save Kids: Savings and Checking Guide

2.11D identify examples of borrowing and

distinguish between responsible and

irresponsible borrowing;

Lesson 12: We Are Borrowers Kids: Credit and You

2.11E identify examples of lending and use

concepts of benefits and costs to

evaluate lending decisions;

Lesson 13: We Are Lenders Kids: Credit and You

2.11F differentiate between producers and

consumers, and calculate the cost to

produce a simple item.

Lesson 1: Earning Income

Lesson 2: Working for Income





Grades 3-5

Hands on Banking


3.9A explain the connection between human

capital/labor and income

Lesson 1: Earning Income

3.9B describe the relationship between the

availability or scarcity of resources and

how that impacts cost

Lesson 7: To Choose Is to Refuse

Lesson 10: Why Do I Want All This Stuff

3.9C identify the costs and benefits of planned

and unplanned spending decisions

Lesson 4: The Grasshopper and the Ant

Lesson 6:Consumers Want More Goods

and Services

Lesson 11: This One or That One?

Lesson 13: Buddy, Can You Spare a Dime?

3.9D explain that credit is used when wants or

needs exceed the ability to pay and that

it is the borrower’s responsibility to pay it

back to the lender, usually with interest

Lesson 8: How Would You Like to Pay?

Lesson 9: More About Methods of

Payment

Kids: Credit and You

3.9E list reasons to save and explain the

benefit of a savings plan including for

college

Lesson 4: The Grasshopper and the Ant

3.9F identify decisions involving income,

spending, saving, credit, and charitable

giving

Lesson 5: Saving Starts with Wanting

More






Grades 3-5

Hands on Banking


4.10A distinguish between fixed and variable

expenses;

Lesson 15: It’s a Balancing Act

4.10B calculate profit in a given situation Lesson 2: Urban Mouse and Rural Mouse

4.10C compare the advantages and disadvantages

of various savings options

Lesson 5: Saving Starts with Wanting More Kids: You and Your Money

Teens: You and Your Money

4.10D describe how to allocate a weekly allowance

among spending, saving including for

college, and sharing

Lesson 14: Managing Money


Kids: Budgeting

4.10E describe the basic purpose of financial

institutions including keeping money safe,

borrowing money and lending money


Teens: You and Your Money

Grade 5 Personal Financial Literacy TEKS

Student Expectation



Grades 3-5

Hands on Banking


5.10A define income tax, payroll tax, sales tax, and

property tax

Lesson 3: People Pay Taxes

5.10B explain the difference between gross income

and net income

Lesson 3: People Pay Taxes

5.10C identify the advantages and disadvantages of

different methods of payment including

check, credit card, debit card, and electronic

payments


Lesson 9: More About Methods of Payment

Teens: Credit and You

5.10D develop a system for keeping and using

financial records


Lesson 5: Saving Starts with Wanting More


5.10E describe actions that might be taken to

balance a budget when expenses exceed

income

Lesson 14: Managing Money


Kids: Budgeting

Teens: Budgeting

5.10F balance a simple budget Lesson 14: Managing Money


Kids: Budgeting

Teens: Budgeting

Current 3-5 Mathematics TEKS Correlation

FFFL Lesson:

Grade 3 Grade 4 Grade 5

Current Math TEKS Current Math TEKS Current Math TEKS

1

2

3 3.3A, 3.3B, 3.14A, 3.14B,

3.14C, 3.14D, 3.15A, 3.15B,

3.16B

4.3A, 4.14A, 4.14B, 4.14C,

4.14D, 4.15A, 4.15B, 4.16B

5.3A, 5.14A, 3.14B, 3.14C,

3.14D, 5.15A, 5.15B, 5.16B

4 5.3A

5 3.3A, 3.3B, 3.4A, 3.4B,

3.14A, 3.14B, 3.14C, 3.14D

4.3A, 4.4A, 4.4B, 4.14A,

4.14B, 4.14C, 4.14D

6

7

8 3.3A 4.3A 5.3A

9

10

11

12

13 3.15B, 3.16B 4.15B, 4.16B 5.15B, 5.16B

14

15

Lesson correlations for elementary


Grade 3-5 - Lesson 4 The Grasshopper and the Ant In reading and discussing an adaptation of Aesop's fable 'The Grasshopper and the Ant,' the students learn about the trade-off between satisfying wants today and planning for the future. Grade 3-5 - Lesson 2

They read an adaptation of the fable 'City Mouse, Country Mouse,' here titled 'Urban Mouse and Rural Mouse.' They use the story to learn about entrepreneurs, opportunity recognition, income, costs of production, and profit.

Grade 3-5 - Lesson 14 Managing Money The students examine cases in which income is limited and people must therefore make choices about how to manage their money.

Grade 3-5 – Lesson 11 This One or That One? The students learn about comparison shopping, considering prices and other factors that shoppers might use in making comparisons.

Lesson correlations for elementary

Personal Financial Literacy TEKS cont’d

Grade K-2 - Lesson 10 We Plan for Spending The students explore planned and unplanned spending. They construct traffic lights and use them as props in describing consumers' spending decisions as planned or unplanned. They discuss the costs and benefits of spending decisions.

Grade K-2 - Lesson 4 Money Lets Us Choose The students listen to a short story that introduces difficulties involved in making choices. Using a grid, the students discuss costs and benefits as they make choices. (The class uses an apron as a prop in making decisions, here and in future lessons.) The lesson introduces the concept of opportunity cost, defined as the best alternative given up when a choice is made.

PFL - Financial Fitness for Life

Germaine Gray - Texas Southern University

[email protected] – 713.313.6877

The Lone STARR State in a Global Economy

June 12, 2012 – Austin, Texas

mailto:[email protected]

PFL - Financial Fitness for Life

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