1. Financial Literacy for Middle School University School at University of Tulsa Presenters: Katie Abercrombie, Kelly O’Neil-Brown, Marilyn Howard, and Cyndie Yocham

2. Income Living Expenses Jobs and Careers Investments Credit History Lessons Savings TaxesCharity FDIC & Banks Checking Accounts

3. Income Spending Needs Money for Saving and Investments Spring Semester Fall Semester

4. Income Living Expenses Jobs and Careers InvestmentsCredit History Lessons Savings Taxes Charity FDIC & Banks Checking Accounts Interest Calculations

6. Income  Jobs  Interest and dividends  Asset appreciation  Gifts  Benefit payments  Retirement payments

7. Income  The best way to start….Self-Inventory  Middle School Self-Assessment  Learning Styles, Study Tips, and Career Key Assessment Who Am I?

8. Income  What is a job versus a career?  Does education really pay?  Family Career Tree  Career Clusters Interest Survey  Job Application  Resume using templates from Microsoft Word or Publisher

9. Income Spending Needs Money for Saving and Investments

11. Spending Needs Fixed Expenses  Housing  Cars  Taxes  Insurance  Emergency Fund Variable Expenses  Utilities / Fuel  Food / Clothing  Household items  Entertainment  Charity My child said to me, “Thank you, I had no idea….”.

12. Spending Needs  Terminology  Write a Check  Void a Check  Endorse a Check  Deposit a Check  Keeping a Ledger  Excel Project: Create a Ledger

13. Spending Needs Mortgage Amount = $150,000 with a 5% rate of interest Monthly Principal & Interest Extra Payment per month Pay-Off Date 360 payments ($) Total Interest Paid $805.23---Jan 2041$289,883.68$139,883.68 $100Aug 2034$255,278.48$105,278.48 $200Jul 2030$235,035.40$85,035.40

14. Spending Needs Example: If you had a credit card balance of $2,000, an 18% APR, stopped using your card and made only the minimum monthly payment, which was based on 2% of the outstanding balance or $20, whichever was greater, how long would it take to pay off your debt and how much was the total payout? 19.3 Years for $5,862 Lesson learned: Always pay more than the minimum monthly payment!!!

15. Spending Needs What are taxes and how are they used?  Federal  State  Local (City/Country)

16. Spending Needs Revenues  Income Tax  Property Tax  Sales Tax  Fees / Licenses  FICA Expenditures  Differences between private and public services

17. Income Spending Needs Money for Saving and Investments

19. Savings and Investing Interest Bearing Accounts & Bonds Stocks Property Collectibles Interest Income Capital Gains/Loss Dividends

20. Savings and Investing Criteria:  Lower risk for loss  Principal more stable  Lower return Types:  Bank accounts  Certificates of deposits  U.S. government bonds

21. Savings and Investing  When you save, you earn interest.  When you take the interest out and spend it, it stops growing.  But if you leave the interest in your account so it can grow, you start to earn interest on the interest you earned previously. This is called compounding.  Interest on interest is money you didn’t work for. It is money your money makes for you!

22. Savings and Investing Molly starts saving at age 25 and adds $2080 annually to her account and draws interest at a rate of 4.25% per year. After 20 years, she has accumulated $104,900.72 with the compounding interest. She then leaves the money in the account for 20 years without adding any more money to the accumulated amount. She lets the compounding work for her and after 20 more years she has accumulated $241, 156.93! Marcus decides to wait for 20 years to start his savings and begins with the same amounts and rate-of-growth as Molly did 20 years earlier. Only he is 45 years old when he begins his savings. At age 65, he has only $104,900.72. Lesson: Start Early and Give Your Money Time To Grow

23. Savings and Investing Criteria:  Higher risk for loss = can lose principal  Higher potential return = can gain principal Types:  Private business  Stocks  Corporate/municipal bonds  Mutual funds  Real estate  Collectibles

24. Savings and Investing  What is the FDIC?  When and why?  What are the current levels of protections?

25. Savings and Investing  Government Bonds Federal Municipal (Muni’s)  Corporate Bonds

26. Savings and Investing Rule of 72 Years to double investment = 72 / Rate of Return Rate of ReturnAmount of Time to Double 3%24 Years 9% 8 Years 12% 6 Years 6%12 Years 8% 9 Years

27. Savings and Investing  What are stocks?  Brokers / exchanges/ indexes  Macro-economic concepts: inflation / recession  Portfolio diversification  How to research a stock

28. Savings and Investing  What are mutual funds?  Advantages and disadvantages  Types of mutual funds  How to research mutual funds

29. Savings and Investing  Online student team competition  Teacher training seminars available  Fall and Spring games  10 weeks

30. Savings and Investing  Simulated stock market trading floor  Team competition

31. How Money Is Made videos series from Modern Marvels on History.com The Great Depression The Oregon Trail Simulation Current News Events

32. General: http://www.moneyinstructor.com/http://www.moneyinstructor.com/ Lesson plans, templates http://finance.yahoo.com/ http://money.cnn.com/magazines/moneymag/money101/http://money.cnn.com/magazines/moneymag/money101/ 23 Financial Life Lessons http://www.econisok.org/ http://www.councilforeconed.org/http://www.councilforeconed.org/ Online teacher training, lesson plans, Gen-I game http://tulsa.ja.org/http://tulsa.ja.org/ Junior Achievement programs, interactives Budget: http://www.jumpstart.org/reality-check.htmlhttp://www.jumpstart.org/reality-check.html Interactive budget/life game http://www.personalbudgeting.com/

33. Jobs and Careers: http://www.educationplanner.org/education_planner/discovering_article.asp?sponsor =2859&articleName=Self-Assessment_Quiz http://www.educationplanner.org/education_planner/discovering_article.asp?sponsor =2859&articleName=Middle_School_Checklist http://www.breitlinks.com/careers/career_pdfs/familytreews.pdf http://www.careerclusters.org/ccinterestsurvey.php http://education.yahoo.com/ http://www.bls.gov/emp/ep_chart_001.htm Credit Card: http://www.studentpirgs.org/truth-about-credit/ http://www.controlyourcredit.gov/#frontdesk/00 http://www.controlyourcredit.gov/#frontdesk/00 The Bad Credit Hotel Game

34. Savings and Investment: http://ocee-ok.net/http://ocee-ok.net/ OCEE Stock Market Game http://www.fdic.gov/about/learn/learning/index.htmlhttp://www.fdic.gov/about/learn/learning/index.html FDIC Learning Bank for students http://www.sec.gov/investor.shtmlhttp://www.sec.gov/investor.shtml SEC Education Taxes: http://www.irs.gov/individuals/students/index.htmlhttp://www.irs.gov/individuals/students/index.html Tax information for students History Lessons: How Money Is Made (5 part series) by WealthyAmbitionsCom: http://www.youtube.com/watch?v=_ICXBNynyTU http://www.youtube.com/watch?v=_ICXBNynyTU

35. http://www.moneyisok.org/index.html This site is designed for classroom teachers implementing HB 1476: Oklahoma’s Passport to Financial Literacy. Included on this site is a listing of teacher resources for the 14 areas of instruction required for high school graduation. The web site is provided by the Oklahoma Council on Economic Education (OCEE). OCEE is designated by the State of Oklahoma to provide training, materials and support for teaching personal financial literacy in our state. We work closely with the State Department of Education and other organizations to ensure teachers are prepared to help students learn how to make good choices that impact their financial success, today and tomorrow.

36. For additional information, please email kelly-oneil-brown@utulsa.edu