Volunteer Guide. Curriculum made possible by: Updated 1/22/18

Transcription

1 Volunteer Guide Curriculum made possible by: Updated 1/22/18

2 Volunteer Overview Welcome! Thank you for joining us at Lincoln Finance Park for what promises to be an exciting learning experience. For several class periods, students have been learning about financial institutions, careers, taxes, budgeting, credit, and more. JA Finance Park, the simulation, gives students a hands-on opportunity to put this learning into action. Before students arrive at Lincoln Finance Park, a JA staff member will conduct an on-site volunteer training to review the day s procedures and instructions. Prior to this training, please familiarize yourself with this guide. Don t hesitate to ask questions during training or during the simulation day. We are here to help you, which in turn, will help students have a more successful and enjoyable day. When students arrive, they will gather in the center of the Park for a brief orientation and then will move to their assigned business for their day s activities. Students will receive an ipad, which will link to a program they will utilize for the simulation experience. The ipad will give them a persona for the day. This persona details their gross annual salary, family situation, existing debt and savings, credit score, etc. Students will convert their gross annual income to a net monthly income and then plan for and implement a monthly budget. Your role is to be a group facilitator and student mentor, working with 6 to 12 students, in your assigned business. During the day, your group of students will work through the initial Set-Up, Research, Budget, Shopping, and Payment phases where specific activities will take place. Thank you for assisting the students. Without parents and volunteers, this program could not successfully operate. Remember to ask as many questions as necessary during the volunteer training. We want this to be the best day possible for you and your students. Have a super day! Page 2

3 Expectations Volunteers Provide guidance and assistance to students. Facilitate scheduled group discussions. Monitor and verify students work progress. See that a JA Finance Park ipad is signed out to each student and collected at the end of the day. Food and drinks must remain in the snack/dining area. At the end of the day, please leave this Volunteer Guide in the business area. Please remain in the Lincoln Finance Park space until after student departure. Students Students must remain inside the Park area for the entire day. All food and drink must remain in the snack/dining area. No gum or candy is allowed in Lincoln Finance Park. Students must consider their assigned family when making all budget and shopping decisions. Students should handle ipads with care and caution. ipads should remain in the assigned business during lunch and restroom breaks. Important Information Evacuation routes are posted on the walls of Lincoln Finance Park. Questions or concerns you aren t equipped to answer should be referred to a JA Finance Park staff member. Page 3

4 Sample Daily Schedule (15 minutes) Opening and Student Orientation Students gather for a brief welcome and overview of the day. Students are dismissed to their assigned business where they join their adult volunteer. (45 minutes) Set-Up and Savings Volunteers sign out an ipad to each student. Students complete Login screen on ipad and answer six Lifestyle Goals questions. (Account Number/PIN is located on the back of the ipad). Volunteers lead a discussion in which students share highlights of their assigned persona (income, job title and education background, family members, etc.) Students select their personal avatar. Students calculate their Household NMI. Volunteers lead a discussion on saving and students decide what amount they will set as a monthly savings goal. Students then allocate that savings to three saving funds. Select a student Peer Leader from your group for the research phase of the day. (one Peer Leader for every 6 students) (60 minutes) Research and Lunch Break Students visit each business/budget category to unlock and research all expense categories on the students ipads. Volunteers will remain in their business to discuss that expense category with each group of students as they come around. (30 minutes) Budget Students build a monthly budget, informed by their research and volunteer discussion. Students allocate 100% of their Household NMI during this phase and record their budget plan in the software. (40 minutes) Shopping In their assigned business, students make shopping selections for all budget categories on their ipads. Students discover how close they came to budgeting accurately, based on their wants and needs. They may spend more in a category than they budgeted, but overall they may not spend more than their income, nor may they dip into existing savings. (30 minutes) Payment Students pay for all their shopping selections at business kiosks. Note: Some items are paid for with a debit card (groceries, gas and maintenance for their car(s), entertainment, etc.) and other items are paid electronically by making an online payment from their banking account. Volunteer reviews Student Budget Review screens with students, highlighting student outcomes. (20 minutes) Closing Procedures/Debrief Volunteer checks in the student ipads. Volunteer facilitates student clean-up of business. JA staff leads a group debrief prior to student dismissal. Page 4

5 INTRODUCTIONS To do: SET-UP & SAVINGS Total time for this phase is approximately 45 minutes. After dismissal from the student orientation, the group Time of students assigned to you will join you in your business. 3-4 minutes o Introduce yourself, sharing your name and a little bit about yourself. o Ask each student to introduce themselves, sharing their name and grade. Discuss Model Budget Sign out ipad Calculate Household Net Monthly Income (NMI) Set savings goal Important lessons: Pay yourself first Have an emergency fund Plan your spending DISCUSS MODEL BUDGET Time 2-3 minutes Point out the Model Budget samples located on each table. o Remind students they will be building a family budget today. o Let students know that these percentages help provide some guidelines but personal budgets vary a lot depending on resources, personal preferences, and values. o Ask if there are things they or their families do or do not include in their budgets that others do (examples: cable TV, vacations pets).. Page 5

6 Students: Sign out ipads on the sign-out/sign-in sheet Enter the JA Finance Park app by pressing enter Complete the login process - ipad number, account number and PIN are located on the back of the ipad. Answer the 6 lifestyle questions Volunteer allow students to BRIEFLY share a few facts from their Life Scenario such as income, job title, marital status, children, etc. Time 5 minutes Time 5 minutes Students: STOP AND SHARE THIS INFORMATION Volunteer will facilitate the discussion Time 10 minutes Select Avatar once selected, it cannot be changed Calculate Net Monthly Income o Swipe taxes to the left o Total monthly Taxes are calculated automatically o Tap the Click to Calculate to subtract Total Monthly Taxes from Gross Monthly Income. REMEMBER to press the = sign o Press green Calculate button to finalize the Household NMI calculation. If a student is married, his/her spouse will work either full-time or part-time, therefore contributing to the household income. When students press the green calculate button, their spouse s income will automatically be included in their final Household NMI calculation STOP! ipads will stop after Household NMI is calculated, requesting a 3 digit unlock code to move on. Begin the savings discussion AFTER ALL STUDENTS have reached this unlock screen. The unlock code should be given AFTER the following savings discussion is completed. Page 6

7 Volunteer Lead the following group discussion on savings AFTER the Savings Discussion, provide the students with the ipad unlock code SAVINGS Tell students the first budget decision they are going to make is on savings and that you will be discussing a savings plan as a group before moving on. The JA Finance Park savings plan is called Pay Yourself First. SAVINGS DISCUSSION PROMPTS Why do we save money? To buy things that we can t afford to buy today. Time 8-10 minutes What kinds of things do we save money for? A home, car, vacation, emergency funds, children s education, retirement, etc. What does it mean to Pay Yourself First? To set aside a percentage of money into savings each month before you pay for and/or buy anything else. Why do we pay ourselves first? To ensure that we have set aside the necessary income for the important things we want down the road. Savings Strategy: Many experts recommend that individuals save at least 10% each month. Saving paying yourself first helps keep your priorities in order and helps assure your financial security. Do you think it would be easy to set aside this amount? Do you think having a saving goal or goals would make it easier to save? How much do you want to plan on saving this month? Whatever you save each month, the total is divided into multiple things you are saving for. Let s talk about how you may want to divide your savings into the following categories: Page 7

8 Emergency Funds Many financial experts recommend having 3 to 6 months income in savings for emergencies. Emergency funds assist families in the event of income loss due to loss of employment, a major medical emergency, etc. What are other reasons a family might need emergency funds? car accident, car repairs, home repairs, new appliances, etc. Do any of you have 3 months of savings in your emergency fund? The answer is no students will not have this much in their savings. Retirement Savings Retirement savings account is money you are setting aside to use for your living expenses after you leave the workforce, usually around age 65. Time is on your side. Saving even a little each month will mean growth of your money 30, 40, or more years down the road. Other Savings Do you think you want to own a home some day? Do you know how much lenders typically want for a down payment before approving a home loan? 20% down is the standard. Do you know how to estimate how much house you can afford? Many financial experts recommend spending no more than three (3) times your annual income on a home. To determine what price you can pay for a home multiply your NMI times 36 (3 years = 36 months). What are other things that you would like to save for? Vacation, boat, technology, etc. CODE TO UNLOCK ipad Give students the 3 digit code to unlock their Savings Budget: 846 Students will be prompted to answer a question about Retirement Savings. Page 8

9 Savings Goal Calculations: SET SAVINGS GOAL Time 5 minutes Household NMI x 5% (.05) Household NMI x 10% (.10) Household NMI x 15% (.15) Students Calculate 5%, 10% and 15% of your Household NMI Set savings goal encourage students to save between 5-15% of their household NMI - a minimum of 2% must be saved each month. Allocate their savings into 3 accounts Retirement Savings, Emergency Savings and Other Savings Additional Savings Talking Points: o If students want to save a very large amount (example 50% of NMI), let them know it might be difficult to do, but they can try. Students have the ability to change savings amount during the Budget phase and again during Shopping, if necessary. o Share with students that tracking savings and investments is easier today than ever. There are several apps that can be downloaded to mobile devices that help track progress. Page 9

10 STOP! ipads will stop after Savings Budget is calculated, requesting a 3 digit unlock code to move on to Research Master. The unlock code will be given by JA Staff after everyone completes the savings phase. *Volunteer Please select a Student Peer Leader for each group of 6 students that you have. There is a Peer Leader lanyard for them to wear during the research phase of the day. The Peer Leader will lead the discussion at the kiosks when no volunteers are present. Peer Leader responsibilities: (please share with the peer leader you select) Kiosk with no volunteer o Read the questions on the computer screen to your group. Discuss possible answers. o Have yourself and your group tap on the matching icon on the ipads. Give your group the unlock code on kiosk screen and enter it on your ipads. The answers to the questions will pop up. Read them to your group. Then have the group click OK on ipad. Read the information that comes up about that expense. o Talk about this expense, tap unlock more then move onto the next open kiosk area. Page 10

11 RESEARCH AND LUNCH BREAK Total time for this phase is approximately 60 minutes. In this phase of the day, the students will be moving from business to business in the Park to unlock expense categories on the students ipads and conduct research as they travel around the Park. You, as a volunteer, will remain in your business and talk to each group as they come around about your expense category. To Do: Unlock 26 all expense categories Research each expense category and review shopping options Apply for 3 Loans: Bank Mortgage, Bank Auto and Transportation Visit the Business Ethics Center and Spin the Healthcare Wheel Important Lessons: Real cost of living understand the cost of monthly household expenses Understand the many different options for each expense INTRODUCE RESEARCH Explain to students that during the next part of the day they will conduct budget research so that they can build a budget that allows them to live within their means. Time 5 minutes What does living within your means mean? Simply stated it means spending no more than you earn. o Before students can build a budget, they need to do some research and be sure they understand the basics of each spending choice. o During Research, all students are required to visit every business. Make sure students take their ipad with them as they complete their research. o Later, when building a budget, some expense categories will be required, while others are not. Example: Child Care - those who have children will have a child care expense; families without children will not have this expense in their budget. RESEARCH ALL BUSINESSES Volunteer: Remain in your business and talk with each group of students as they visit your expense category (business). Page 11

12 Time 40 minutes o Read and ask each group the questions on the computer kiosk screen when they come to your business. o Let the students discuss their answers for each question. o Students will tap on the corresponding expense category icon on their ipad. A box will come up on the ipads to enter the Business ID Code. You can find this code in the kiosk screen. The answers to the questions will pop up on the ipad after they enter the unlock code. (refer to volunteer guide pages for the answers to the questions). Read the answers to the students. Look under your specific category for answers/additional information o Press Ok then specific information will appear. Have the peer leader read the specific information about this expense. o Make sure they unlock all the categories on the kiosk screen in your business. (some have more than 1) o The business computer will also alert students if they need to apply for a loan while they are there. There are 3 loans to apply for: Bank Auto, Bank-Mortgage and Transportation. o Have the students select the Unlock More box in the upper right corner and proceed to the next available business. o At the end of the Research phase, students should receive business unlock codes from the volunteer for any categories that have not been unlocked during the Research phase. A Business Unlock Code key can be found at the back of the Volunteer Guide. ipad Screen Business Kiosk Screen Page 12

13 ipad Screen NOTE: Formative questions will appear on the student s ipads throughout the day. They will have to answer the multiple choice questions before they can move to the next step. o Students will not be able to select items to purchase during Research. They are only looking at future options. o If the students are not able to tap the green Create Budget button at the bottom of the screen once all expenses are unlocked, then they missed applying for one of the 3 loans. If this happens, check Bank Auto, Bank Mortgage and Transportation for loan application. *There will be additional time during the Budget and Shopping phases to conduct further research. Page 13

14 Transportation Transportation Gas & Maintenance Personal Investment Investment Clothing Clothing Phone/cable/internet Entertainment Phone Housing Housing Home Improvement Home Improvement Better Business Bureau (view charity no unlock code for ipad) Bank: Mortgage, Bank: Auto Loan Credit Card Financial Institution Grocery Grocery Furniture Furniture That s Life Insurance- Auto & Home and Renters Child Care Training Room Healthcare Philanthropy Health Insurance Education Dining Out Utilities- Water/Sewer/ Trash Utilities- Electric Coat Restaurant Education Page 14

15 RESEARCH SCRIPT AND DISCUSSION PROMPTS The following detail provides insight into the decisions students will be making during the Budget and Shopping phases. Use the Research Scripts below to follow along as students conduct their research. Financial Institution Auto Loan/Mortgage Loan/Savings/Credit Card: Bank - Auto Loan Kiosk question answer Most banks and dealerships offer loans to car buyers. It is good to compare interest rates on both loan types. Did you know that longer-term loans have smaller monthly payments? However, these loans can cost more over the longterm because you are paying interest for a longer time. Did you know that the average new car loan is $30,000 and the average cost of a new car is $33,500? Source: USA Today (Apply for Loan) Bank - Mortgage Loan Kiosk question answer Factors that affect loan approval are credit score, amount of debt, income and savings. In order to be approved for a mortgage you will need to be in the "medium to low risk" credit range. This range includes credit scores of 650 or more. A high credit score can mean big interest savings. An increase of 20 points in your credit score means a lower interest rate. On the purchase of a $300,000 home, that means a savings of $6,400 on a 30-year loan! An excellent credit score is 720 to 850. A bad credit score is 300 to 599. Scores between 600 and 719 are in the fair to good range. (Apply for Loan) Bank - Saving Kiosk question answer Pay Yourself First means setting aside a specific amount in savings before making any other spending choices. Saving is a key money management principle. It's never too early to start saving for college, a home down payment, or retirement. People who have a savings plan and stick with it have money for the things they need and want. Saving today allows you to have more for what you really want tomorrow. Pay yourself first. Build an emergency fund for unexpected expenses. Save for long-term and short-term goals. JA Finance Park savings must be at least 2% of NMI. Credit Cards Kiosk question answer Paying off credit card debt quickly will help you to pay less in interest on the credit card balance. A credit card balance in JA Finance Park means that you made a past purchase or purchases and have not yet paid off the debt. If you have a large debt and can t pay the bill in full, make more than the minimum payment to pay it off faster. Page 15

16 Child Care Kiosk question answers 1. The average cost for full-time childcare for 2 children is $750 per month 2. A professional childcare is typically in a child-like school setting with a higher number of children. Home daycare is at a person s home and usually with fewer children and less expensive. It is a personal decision for what type of daycare you want for your family. Having children can be wonderful. The real cost of child care, however, is often surprising to families. In JA Finance Park, child care expense applies to all families with children 11 and under. If your family situation does not include children, you won't need to budget for this line item. In many states, the average cost is more than 10 percent of family income. All students research child care, even if their persona has no children. This category is often a surprise to students. What are the advantages and disadvantages of a professional childcare setting versus a home daycare and how will those differences influence the cost? All children, for all personas, will need childcare. When a persona is single, full-time child care is needed. For married households, part-time child care is needed when the spouse works part-time. Full-time child care is needed when the spouse works full-time. Clothing Kiosk question answers 1. Clothing is a need. 2. The average family of 4 spends $228 per month on clothing 3. Families can help control clothing cost by shopping at discount stores and sale racks, avoiding designer and name brands. Also use hand-me-downs from older children. Every member of your family needs clothing, and you have a wide range of items and prices to choose from. Clothing is a need but it can become a want, especially when you already have a closet full of clothes but continue buying new items. Dining Out Kiosk question answers 1. Student answers will vary on how many times. The average American spends $3,000 a year (that's about $250 a month) eating out. 2. It is more expensive for a family of 4 to eat out (average dining out $55) and cheaper to eat a home cooked meal. (average $25, includes food waste and water used) Eating out is fast and convenient, especially when you are tired or too busy to go grocery shopping. But it can be expensive. How often will you choose to dine out? Keep in mind that the money you spend on dining out, including tips, increases if you have children or if you plan a night out with your spouse and will need child care. Page 16

17 Education Kiosk question answers 1. There are many options for after high school join the military, get a job, earn a college degree, trade school or on the job training/certification. 2. Many jobs encourage or require ongoing education and many employers will even pay for it. This can help you get a promotion or earn a higher income. Advanced education, be it a technical certificate or college degree, opens up additional career opportunities and usually leads to higher income. If your JA Finance Park life scenario indicates you have education beyond high school, you have a student loan on which you must make a payment. Did your persona today only complete high school? You will have a chance to further your education. You may also want to take a course for fun, perhaps a class in photography, writing or art? There are many options! Any student who has education beyond high school will be making a student loan payment. In addition, encourage students to look at the advancement opportunities section of their persona. Do they need to consider taking a continuing education class? Is another degree required for promotion? If yes, they should budget for the additional classes they need to take. They also have the option of a fun education class and may choose to budget for a personal interest topic. Entertainment Kiosk question answers 1. Entertainment choices are personal and flexible, based on your interests and family size. 2. The average family of 4 spends about $200 and often includes travel, movie tickets, music and game apps, tickets to sporting events and concerts, gym fees, and amusement park admission. Did you know that pet ownership also is considered an entertainment expense? Pet owners spend, on average, about $112 a month on their pet. This includes food and vet expenses. Students may choose any number of activities. At least one choice should include all family members. If they choose an activity that is adults only but have children, then they need to include babysitting expense in their budget plan. Furniture Kiosk question answers 1. Furniture doesn't typically have a monthly cost because you don't replace it every month. You can buy furniture a piece at a time or as a complete set for a specific room. 2. Furniture stores offer a store credit for purchases, but it is best to pay cash up front if possible. Classic contemporary? Modern? Shabby-chic? Traditional? What's your favorite furniture style? It's fun to add to or upgrade furniture for your living space. It can also be an expensive proposition! This budget item is optional. Purchases are made to a store credit card and the first month s payment will be due during Shopping. Page 17

18 Grocery Kiosk question answers 1. Student answers will vary. 2. The average cost for a family of 4 is $750 per month. 3. You can use coupons, shop sale items, and use the store app for additional discounts. As you research your options, you'll want to pay attention to the costs of generic versus brand name products and the cost of basic starches like pasta, rice, and potatoes versus prepared foods. All households need groceries. You'll need to view the choices you have as you think about the amount of cooking you plan to do and the types of meals you want to eat. The amount you pay each month for groceries will vary depending upon family size, age of family members, and the type of food they like. The U.S. Department of Agriculture recently determined that a family of two typically spends $379 to $750 a month on groceries, depending on whether they are thrifty or not. The most expensive ingredients for most families are meat, dairy, and fruits/vegetables. Health Insurance Kiosk question answer 1. Prices for an ambulance ride start at $1,000 and go up from there depending on ambulance service, equipment used and distance traveled. 2. Insurance provides protection against the unexpected injuries and illnesses many people face. It also helps cover costs of annual physicals and well-child care. Everyone needs to see a doctor once in a while, even if you're generally healthy,. What happens if you catch the flu, break an arm, or sprain an ankle? An affordable health care insurance policy is sometimes defined as 9.5% or less of a family's household income. Students select an option based on their family size single, couple, or family. Single parents with one child must select the family option. Talk with students about high level differences between a silver and gold policy. (Silver may limit the doctors or medical facilities you can choose from/limit the events or conditions they will pay for.) What is the risk of not having health insurance? Home Improvement Kiosk question answer 1. Roof, heating and cooling systems, appliances and flooring are all things in your home that are expensive to improve/replace. 2. All properties need occasional repairs or replacements. Even renters take on home improvement projects, such as when they paint a room. Many families take on a home improvement project at some point, or they need supplies and equipment to help maintain or improve their living space. Whether your JA Finance Park family owns a home or rents, you have a decision to make about a home improvement project. Today, any purchase you make will be charged to a store credit account - and you'll need to make the first month's payment. Page 18

19 Housing Kiosk question answer 1. In addition to location, you have lots of choices when deciding where to live. Do you want a house, apartment, condo? Do you want to rent or to buy? Can you qualify for a home loan? 2. Housing is often the largest expense for most households. Home ownership costs involve more than just your monthly payment. Those costs include: property taxes, utilities, insurance, and maintenance. Lenders usually want a 20% down payment on home purchases, your savings balance and a good credit score are important to qualify for a loan. A high credit score can mean big interest savings. If you rent a house, apartment, or condo, the owner will want to know your income and credit score. Students have the choice of renting or buying (assuming their mortgage is approved). Some students with a high credit score will not be approved for a home loan because their existing savings is too low. Students should recognize that credit history, current financial situation steady income, savings, and other debt affects their ability to be approved for a home mortgage. Insurance Auto/Home & Renters Kiosk question answer 1. Protect what is valuable to you such as your car and home. 2. Example: during an electric storm you have a power surge that fries your large screen TV and your computer. A cash value policy pays you what the items are worth today say $400 for the TV and $0 for the computer because you ve had them for a while. A replacement value policy actually pays you to replace your TV and computer with an equivalent item perhaps $1,000 for the TV and $700 for the computer 3. Without insurance, the entire cost of replacement/repair is your responsibility Auto Insurance Auto insurance is smart planning and helps protect the investment you've made in your car. If you own a car you need auto insurance. It's the law and it's the smart thing to do. Accidents, even if they aren't your fault, can be costly. High deductibles reduce the cost of monthly premiums, but means that you pay more out of pocket if you make a claim. Insurance rates are affected by: what you drive, your age, gender, marital status, your driving record and the number of miles you drive. On average, auto insurance premiums are lower for older, basic transportation and more expensive for a newer car or high-end vehicle. Home and Renters Insurance You probably can't buy a house or rent an apartment without insurance, as most mortgage holders and rental property owners require it. Home and renters insurance provides protection against loss from fire, theft, and accidents. What kind of insurance will you need? That depends on your personal situation. Will you live in a single-family home, a condominium, or a rental property? We do not include deductibles at JA Finance Park, but students may want to know that deductibles also affect insurance premiums. Page 19

20 Investment Kiosk question answer 1. The key to investing is starting early. You should start investing for retirement in your 20 s. 2. Some examples of ways to invest your money are mutual funds, stock market, high yield savings and bonds. Investing is a way to grow money. Typically young people can afford to be more aggressive with their money since they are a long way from retirement. How you invest is totally up to you. How much will your investments make in the future? Financial advisers typically project a 10 to 12% return from the stock market over the long haul. Return from a specific year may be much higher (or lower), but investors count on growth over time. Philanthropy Kiosk question answer 1. Philanthropy is charitable giving and your desire to give back to your community. 2. In every community, businesses and individuals support a variety of worthy causes. You can make a cash donation to your church or synagogue, a health foundation, your favorite college, or a social service agency. Or you can donate your time and talent by coaching a sports team, being a reading mentor, working at a soup kitchen, or volunteering for JA. Will you donate gently used clothing to those in need? Are you passionate about people? Do you see a need and wish to fill it? People give their money and their time to worthy causes that align with their values and interests. The average household monthly charitable contribution is $100. Point out to students the importance of philanthropy in our communities.. How have you, your family, or community received a benefit from philanthropy? Give some local examples of philanthropists and philanthropic organizations. Encourage students to give; if not financially, then through their time and talent. Phone/Internet/Cable Kiosk question answer 1. Phone bills differ because families select different services to meet their needs. All add-ons are an additional expense on top of your monthly bill. 2. A recent Harris Interactive survey indicates that nearly half of Americans with mobile phones pay $100 or more per month and more than 1 in 10 pay $200 or more monthly. 3. Cable and internet are a want, not a need. Phone There are many choices when it comes to connectivity. Selecting a plan that meets your needs can be confusing and services can be expensive if you want more than basic talk service. Many phone providers allow you to choose individual services such as messaging or Web browsing or bundle multiple services together. Internet There are many choices for Internet service. The higher the Internet speed, the higher the bill will be. The average Internet monthly cost is about $50 to $60, but varies depending on whether you have cable, or satellite Internet. Companies offer high-end Internet service with super-fast connections for video streaming. (Cable information next page) Page 20

21 Cable You will need to decide if television programming is a source of news and entertainment you plan to include in your house. Companies typically offer a variety of cable packages ranging from very basic to multi-level packages and special service add-ons for movies and sports. Standard-level packages can cost $60 or more per month. Very basic packages with high quality reception on local channels can run as low as $15 a month. Internet and cable are an optional expense. Student may choose to not budget or shop for cable TV services. That's Life Research Script Kiosk question answer 1. Some examples are birthday/wedding gifts, replacing broken item, child s school field trip, etc. As you go through life there are expenses that don't necessarily happen monthly but extra expenses do come up and the bill must be paid. This month something will come up that you didn't anticipate. It's always a good idea to set aside some money to help cover the unexpected. Will something break that needs to be repaired? Maybe a friend is getting married and you want to buy a nice gift. How much will you budget? This item represents those expenses that may not fall easily into another budget category. It is the surprise that people don t think about. All students will have a scenario that will involve an unexpected expense. Transportation/Gas & Maintenance Transportation Kiosk question answer 1. Ownership costs to consider are car maintenance, repairs, insurance, fuel, registrations, licenses, inspections, parking, and tolls. Whether you get to work and activities by car or public transportation, this is a necessary living expense for families to consider. Transportation is usually the second largest expense for most households after housing. If you own an automobile, you'll have a monthly loan or lease payment. What should be taken into consideration before buying a car? If the student persona is married and their spouse works, they will need to budget and shop for two transportation options. (Apply for Loan) Transportation - Gas and Maintenance Kiosk question answer 1. The cost of gas varies depending on where you live. It can cost $2.30 per gallon and higher. The cost of gasoline and regular maintenance drive up the real cost of owning a car or truck. The amount you will spend on gasoline will vary based on the miles per gallon your vehicle gets, how many miles you drive, and the cost of each gallon of gas. Maintenance costs include oil changes, tires, tune-ups, etc. Costs vary depending on the type and age of the car. On average, car owners spend $100 a month per vehicle on typical maintenance expenses. The cost of gas and maintenance is based on the car or cars they purchase. Help students to recognize that older cars are generally more expensive to maintain. Maintenance costs include oil changes, new tires, tune-ups and expected and unexpected repairs. Page 21

22 Utilities - Electricity Kiosk question answer 1. Electricity powers many things in our lives: our home's cooling, refrigerators, lights, TVs, computers, cell phone chargers, and depending on your location, your home's heating system. That power comes at a significant cost. 2. There are many ways to save on your electric bill: First, turn off your air conditioner or cut down on its use. Use energy efficient light bulbs. If you use electricity to heat your water for your house, wash your clothes in cold water. You can also add weather-stripping around doors and windows. Electric expenses can take a big chunk of your income. Your bill could average $40 to $160 (or more) each month depending on the size of your home and the climate you live in. Monthly electric bills are tied to each home or apartment based on the size of the living space. Utilities - Water/Sewer/Trash Kiosk question answer 1. The average family uses 6,500 gallons of water per month. The top 2 uses of water is your house are flushing the toilet and taking a shower or bath. 2. You may also choose to pay an extra fee to have recycling picked up. Trash and recycling will cost an average of $25 to $30 a month. Cooking, bathing, washing clothes, and maintaining a lawn and trees all require water. Consumers pay a monthly fee for clean water and for treating and disposing of wastewater. The average monthly water bill in the United States is $51 but varies widely depending on where you live and how many people are in your household.. Would the size of a family make a difference for this bill? Why? Water bills will be based on the number of people in the household. Trash removal is a flat rate per household. Page 22

23 BUDGET Total time for this phase is approximately 30 minutes. Please wait for JA Staff announcement before moving forward. Following the conclusion of Research, the student will select Create Budget from the bottom of their ipad screen. In this phase of the day, students allocate their Household NMI to each budget category. To Do: Budget 100% of Household NMI. Stay within the Minimum and Maximum Important Lessons: Balanced Budget Don t spend more than you make! Budget enough in BIG ticket items Housing and Transportation JA staff will give the unlock code after Budget Phase Introduction. Page 23

24 Students will allocate their NMI based on the research they just conducted and the minimum and maximum recommendations on the Budget screen. Time 30 minutes Savings, minimum credit card payment, and minimum education debt payments are pre-filled in the budget. Students can adjust the amounts, if desired, though savings cannot be less than 2% of NMI and credit card/education debt payments cannot be less than the minimum required. As a group, work through major decisions: housing, transportation, child care and grocery. 100% of their income must be allocated. As budgeting amounts are input, the screen will indicate how much the student has left to allocate. NOTE: Remind students to scroll down their screen to view all budget categories. Hints and reminders to share with students as they plan their budget: o The budget guidelines provided are national averages students may choose to budget more or less than the guidelines indicate. Use the Model Budget on the tables to demonstrate how budgets vary for families with and without children. o As students enter a budget amount, they can refer back to the information shared during Research by clicking the Research button at the top of the ipad page or clicking the budget category name. o For more information on individual expense categories, refer to pages o Be sure students scroll down and fill in every budget category. The last category on the list is That s Life. Page 24

25 When students have allocated 100% of their budget and confirmed they have considered all budget categories, they will press Save at the bottom of their screen. NOTE: Once the budget is saved it cannot be changed. However, students will only use the budget as a guideline and may shop above or below their budget during the next phase. STOP! JA staff will give the code after Shopping phase introduction is completed. Page 25

26 SHOPPING Total time for this phase is approximately 40 minutes. In this phase of the day, students will go shopping and discover how easy, or difficult, it may be to make spending choices that stay within their budget. Students and volunteers should remain in their assigned business during the Shopping phase. BEGIN THE SHOPPING PHASE BY DISCUSSING THE FOLLOWING: Please wait for JA Staff announcement before moving forward. To Do: Shop for BIG expenses first Housing, Transportation and all things that go with both. Distinguish needs and wants Important Lessons: DICE Dining Out, Internet, Cable and Entertainment are all optional expenses Manage Credit Card debt if you have money left over after shopping in all categories, add that to your credit card payment. Students will shop on their ipad in their assigned business. NOTE: Consider their family size when looking for housing. o If a student s mortgage is approved, they may buy a home OR they may choose to rent. If they are denied a mortgage, they must rent. o Other expenses associated with housing that must be included in Shopping home/renters insurance, utilities (electric, water/sewer/trash). NOTE: If married, students must budget for two vehicles or plan to use public transportation. o If they have children and purchase a vehicle, at least one vehicle must be large enough to accommodate their entire family. o Other expenses associated with buying a car gas/maintenance and auto insurance. o If using public transportation, there are no additional, related transportation expenses. Students must consider their assigned family situation when making shopping decisions. Shopping decisions may fall above or below their budget plan, depending on what information they discover during shopping. Time 40 minutes Page 26

27 Savings: Students may reduce savings if necessary, but total savings cannot fall below 2% of NMI. (Do not share this with students unless or until they have no other options that require them to spend more than their NMI.) Students may NOT spend more than their Household NMI this month. BEGIN SHOPPING Housing and Transportation and their associated costs (Home and Renters Insurance, Utilities-Electric, Utilities-Water/Sewer/Trash, Auto Insurance) must be shopped FIRST. The ipad will display the Shopping options and pricing. Selections can be made by tapping the choice or choices desired. The graphic near the top of the application page will indicate the Shopping amount compared to the amount budgeted. As students shop a category, they can refer back to the information shared during Research by clicking the Research button at the top of the application page. Page 27

28 Business Shopping Hints: Child Care If there are two children in the family, they must budget for child care expenses for both children. Entertainment Students must plan to include all family members in at least one entertainment outing during the month. If they have children and do not include them in the outings, they must budget for babysitting. Education If they have an education loan, a minimum monthly payment is required. If their career requires continuing education or certification, they should budget for that. If career advancement requires additional education, they could consider including that in their budget. Credit card Students can choose the amount they pay toward balance, but must pay at least the minimum required. Philanthropy Students are required to donate time, talent, or treasure to the Non- Profit of their choice. Students may choose to not spend money in the following categories: Entertainment, Cable, Internet, or Dining Out. All others are required. If students choose not to spend money in Entertainment, Cable, Internet or Dining Out, they must open the category and confirm they are not making a purchase. Please wait for JA Staff announcement before moving forward. Page 28

29 PAYMENTS Total time for this phase is approximately 30 minutes. In this phase of the day, students will visit each business kiosk to record their shopping choices and make payments. *JA Staff will make the announcement when it is time move on to the payment phase. Volunteers should remain in their assigned business during the Payment phase. DEBIT CARDS Each student s Debit Card with their associated Account Number (last five digits of the card number) is attached to their ipad. JA Finance Park o Remind students that they can find their PIN on the Life Scenario screen and on the back of their ipad. Page 29

30 MAKING PAYMENTS Students will move from business to business, processing the payments they have recorded during the Shopping phase. Students visit each business to record payments. o Time 30 minutes Upon entering a business they will tap on the business icon on the ipad. o They will enter the 3 digit Business ID code displayed on the kiosk computer in the business. Page 30

31 o Some businesses require debit card payments, others require online payments. On-line payments once students enter the kiosk Business ID, they will receive confirmation of payment on the ipad screen. Debit payment student must click the business category icon on kiosk computer AND tap the corresponding icon on ipad. When prompted, swipe Debit Card in reader and enter PIN on the kiosk computer. Businesses requiring a Debit Card payment will have a Debit Card icon displayed on the payment button. Page 31

32 LIFESTYLE GOALS AND VERIFYING PAYMENTS Once students have completed all payments they will answer the six Lifestyle Goals questions again. Students view their Student Budget Review on their ipad and verify that all payments have been made. As your assigned students complete the payment phase, review your assigned students Student Budget Review reports highlighting outcomes such as amount saved, amount paid to credit cards, amount given to philanthropy, etc. Student Budget Review reports will be ed to the classroom teacher for review and follow-up at school. Page 32

33 VOLUNTEER DEBRIEF (IF STUDENTS FINISH EARLY) A JA Staff person will advise when there is ten minutes remaining in this section. If your assigned students finish early, ask the following questions for further discussion: Was the cost of daycare surprising to you? What additional options or solutions might families consider for child care? Possible answers may include: Parents could change shift so that one of them is home with children while the other one work; live near grandparents or other family members who might be able to help with child care sometimes; consider having one parent quit working to stay home full-time, especially if one parent is only working part-time. Did you budget for additional education over and above your existing loan? Did you pay the minimum monthly payment on your credit card or make a larger payment? Did you increase your debt load by making a purchase in furniture or home improvement? Why or why not? Did your credit score make it difficult to buy a home or car? What causes a credit score to be low? Possible answers may include: Too many credit cards, too much debt, being late on payments, not having enough income compared to debt. Compliment students on their work.and close with Remember you owe it to yourself to PAY YOURSELF FIRST! Page 33

34 CLOSING PROCEDURES/DEBRIEF Total time for this phase is approximately 20 minutes. Time 20 minutes After making all payments, the students should return to their assigned business. At that time: Volunteers check in the student ipad. Verify that the number on the back of the ipad matches the number assigned to the student. Have the student initial the ipad Sign-In form to indicate they returned the ipad. Follow JA Finance Park staff directions about accounting for and returning all ipads to a staff member. Volunteers remind students to clean the business. o Place ipads in numeric order in the shopping basket. o The business should be returned to its original condition. o Pick up trash; straighten chairs. o Gather all personal belongings. Students, teachers and volunteers gather for a final wrap-up and debrief when announced by JA staff. Thank you for volunteering today! Page 34