Additional Online Resources scholastic.com/mck/volunteers. Here are additional resources that you may find useful during your classroom visits:

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1 VOLUNTEER S GUIDE A supplement to Money Confident Kids high school magazine presented by Supplement to Scholastic Magazines. SCHOLASTIC and associated logos are trademarks and/or registered trademarks of Scholastic Inc. All rights reserved MONEY CONFIDENT KIDS is a registered trademark of T. Rowe Price Group, Inc., 2014-US-6695 DEAR VOLUNTEER, Welcome to this special supplement to Money Confident Kids high school magazine from T. Rowe Price. This edition is designed for students in grades 9 12 as an easy-to-use tool to help you show them how to make well-informed financial decisions. Here s how it works: 1. Read the lesson instructions and the high school magazine at scholastic.com /MCK/volunteers. 2. Depending on your personal style and how much time you spend in the classroom, choose the activity you will share. 3. Read the Tips and Strategies on pages 2 and 3 and watch the video at scholastic.com /MCK/volunteers. Have fun! If you re interested in what you re talking about, students will be too. We hope that these materials will be a catalyst for great discussions about making wise spending choices. Enjoy! Additional Online Resources scholastic.com/mck/volunteers Here are additional resources that you may find useful during your classroom visits: DOWNLOADABLE PDFs Money Confident Kids high school magazine Language of Money glossary Costly Crossword puzzle Amazing Money Maze activity Spending Tracker tool STAR BANKS ADVENTURE Engage students in this exciting game that teaches positive financial behaviors. RESOURCES 30 Days of Financial Fitness family activity VIDEOS What Kids Say About Money videos This Volunteer s Guide and the Money Confident Kids high school magazine are also available at scholastic.com/mck/volunteers. 1

2 GENERAL TIPS AND STRATEGIES FOR A CLASSROOM PRESENTATION MAKE LEARNING FUN Use humor. Use silly anecdotes to emphasize a point or develop a concept. Use the names of students in the class and/or humorous names of companies (e.g., Boy Band Banjo Company) to illustrate a point. Or kick off the lesson with a game show like challenge such as: Put three products in order by price from lowest to highest (e.g., a can of peas, a candy bar, and a toothbrush). Have students jot down the retail price of a product that you ve brought to class (e.g., a cell phone). Who gets closest to the actual price? a contextual definition within your discussion. Here s a glossary of terms that could be helpful to you: For example, when describing the impact of rising and falling interest rates, you might begin by simply reminding students that interest is the amount of money earned when people put money in the bank. Then continue with your discussion about rising and falling rates. Alternately, you can take a quick survey and ask students to raise their hands if they know what the word interest means. Then call on a student to briefly define it. Guess the result of investing $1,000 at 1% interest (compounded monthly) for five years ($1,051.25) compared with investing $1,000 at 10% interest for five years ($1,645.31). 2 SETTING THE GROUND RULES From the very beginning of your presentation, establish your expectations: Mutual respect The students are not talking when you are talking and vice versa. Respect for one another Students are not allowed to criticize ideas or responses. Effort State that you value students attempts to give answers even if they are unsure and to take part in activities even if they are not completely confident about their ideas and responses. ASSUME NOTHING Unless you have been told otherwise by the classroom teacher, assume students have no understanding of even basic financial terminology, including words such as finance, bank account, interest, and stocks. Whenever you are using financial terms, be sure to include MAINTAINING ORDER Keeping students engaged and busy will prevent most routine discipline problems. Use wait time. If one or more students are not giving you the attention that you need, simply say nothing and wait. It may eat up a few moments of time, but it is often much more effective than constantly reminding students to pay attention or trying to talk over them.

3 ENGAGE THE STUDENTS There are several ways to keep students actively engaged throughout your presentation: When presenting a question, provide three possible answers and ask students to indicate their answers by raising their hands. Or provide a true/false question and have students raise their hands in response. Ask a question, then have students share their responses with a partner. For example, What do you think is the difference between interest and dividends? (Note: keep the pacing fast tell the students they will have 20 seconds to discuss their ideas with their partners.) Then call on a few volunteers to share their responses. Ask the students to jot down on paper a response to a question that you have asked. Again, keep the pacing brisk. Tell them they have seconds to quickly write their ideas. Assure them this is not a test; they are challenging only themselves. Monitor the timing of any partner or small group work. Tell students how much time you will allow. Give them a 30-second warning before the end of the time. Then do a countdown for the final 10 seconds before telling them to turn their attention back to you. USE VISUALS The use of visuals pictures, charts, diagrams is very important to maintain students interest and engage students in learning. Most people learn best by seeing and doing, as opposed to just listening. PRAISE EFFORT Praise students for attempting to answer questions and show appreciation for their involvement, even when their answers are incorrect or their ideas are not completely valid. Studies have shown that students are more likely to accept greater challenges when their efforts are praised. HOW TO SAY NO When students are told no or that they are incorrect when giving a verbal response, they are less likely to risk answering another question. Encourage their willingness to try by using language such as, That s close, but not quite on target, or Not exactly, but I appreciate your answer. TIME MANAGEMENT Lesson plans have been designed to last approximately 45 minutes. Your lesson plan should include approximate times for each section of the lesson. It is not uncommon to overplan and have too much material to cover within the allotted time. Plan ahead to determine which sections of the lesson can be cut or handled more simply if time constraints become an issue. COMMUNICATION WITH THE TEACHER It is advisable to communicate with the classroom teacher before presenting a lesson. Questions for the teacher may include: What goals/objectives would you like to have achieved as a result of my lesson? Also, discuss the established T. Rowe Price goals and objectives for the lesson(s) that you will be presenting. What specific background knowledge do students have in the area of financial literacy? What other lessons have been presented to the students that tie in to the goals and objectives of the lesson(s) that I will be presenting? Are there any accommodations that I will need to make for students with special needs? How much time is allotted for the lesson? What is the availability of any special equipment that I might need for my lesson, such as access to a whiteboard, outlet for a computer, scissors, pencils, etc.? 3

4 LESSON ONE THE CHOICE IS YOURS OBJECTIVE Students will: recognize the role of advertising in making purchasing decisions. identify critical criteria for making wise purchasing decisions. use identified criteria to develop an action plan for reaching short-term financial goals. TIME: one class period MATERIALS: Money Confident Kids high school magazine (pages 2 3), paper, pencil, whiteboard or chalkboard INTRODUCTION Ask students to name things that they consider (e.g., purchasing criteria such as price, brand, and/or style) when they decide to shop for something they want, such as a cell phone, video game, or laptop. Ask them if they ever consider whether the purchase is a want or a need before making the purchase. Explain the difference between wants and needs as related to these types of purchases. Tell students to write down a number from 1 10 to indicate how much they think their buying decisions are influenced by advertising (1: advertising has very little influence; 10: advertising greatly influences buying decisions). Have students share their responses. Ask students to identify places where they may see or hear advertisements (e.g., billboards, store windows, in-store displays, online banner ads, social media sites, magazines, etc). Then ask them to explain what they feel the role of advertising is in influencing the decisionmaking process for making purchases. THE LESSON Have the students read the articles on pages 2 and 3 of Money Confident Kids high school magazine. best deal on this product? Can I use this money toward something else that I need or would rather have?). Have students share their ideas and write them on the board. Then have the students vote on which consideration they think is the most important. At this point, you can present information on how to develop an action plan for making significant purchases. The action plan may include criteria that the students have identified along with other financial considerations such as the source of the money for the purchase and the role of short-term goal setting. Write the plan on the board. WRAP-UP Have students refer to the infographic on page 3 of the magazine. Based on the discussion and lists that the class has developed, ask the students to vote on which vehicle they would purchase, the new or used car. Ask the students to justify the reasons for their votes. (This may be a good opportunity to challenge the validity of some of their ideas by deliberately arguing the opposite point of view in order to foster a more solid understanding of the factors that influence purchasing decisions.) SUMMARIZE Ask the students to write down one sentence that states the main idea of this lesson (e.g., Creating an action plan is a great way to make wise buying decisions ; Be aware of how advertising influences buying decisions ; People should always think about whether a purchase is a want or a need before making a buying decision ). Have the students share some of their main ideas. Ask for examples of how students might actually apply the concepts from this lesson in future real-life purchasing decisions. After reading the article, have the students write down three critical questions they think consumers should ask themselves before making any significant purchase, such as a cell phone, gaming system, laptop, musical instrument, or even a car (e.g., is this purchase a want or a need? How long will I keep this product? How often am I likely to use this product? Which store offers the 4

5 LESSON TWO SAVINGS GROWTH OVER TIME OBJECTIVE Students will: explore the concept of compound interest in setting financial goals for retirement. TIME: one class period MATERIALS: Money Confident Kids high school magazine (page 4), student access to online compound interest calculator, paper, pencils, whiteboard or chalkboard, visual aids for explaining investment tools (provided by the volunteer) Note: An online compound interest calculator can be found at INTRODUCTION Ask the students to define the word retirement. Clarify any misconceptions. Ask them how people who retire get money to live. Then ask them how much money they think they will need to have saved for retirement by the time they are 65 years old. List their responses on the board. List and briefly describe the basic types of income that retirees use to live after retirement, such as savings, investments, and Social Security income. THE LESSON Have the students read the articles on page 4 of Money Confident Kids high school magazine. Discuss the concept of interest: Tell the students that they are being challenged to create a 30-year financial plan for their retirement that must have a value of at least $1,000,000. Have students use an online compound interest calculator to discover the required monthly savings amount as well as the rate of interest that is necessary to achieve their goal. You can choose to have the students work in pairs or individually. (An online compound interest calculator can be found at 4First have students calculate the final value of investing $100 every month at an interest rate of 4% annually for 30 years. (Result: $67,626.27) 4Then have the students explore various combinations of monthly deposits and interest rates to yield a value of at least $1,000,000. Put a cap of 18% on possible interest rates to be used. Have students write down the results of their findings. 4(Optional) Then have students create a 40-year financial plan designed to reach the same million-dollar result. Have them compare their 30-year and 40-year plans. 4Ask students to share their results. What conclusions can they make? Explain to students that current savings account interest rates are generally less than 1%. In order to reach the $1,000,000 goal within 40 years at a 1% rate of return, a person would be required to save about $1,700 per month! (Note: If $1,700 had been invested in stocks at an average rate of 5% for 40 years, the final amount would be over $2,400,000!) Draw the financial risk pyramid chart below on the board. Then discuss the major types of saving and investment tools that are used in financial planning, including the risks and rewards that are associated with each. FINANCIAL RISK PYRAMID 4Interest is earned when you lend money. An example is when you have money in a savings account at a bank and the bank lends your money to someone else. The loan is paid back plus an additional amount, which is interest. This interest is passed on to you as income. Increasing potential for higher returns. Increasing risk. STOCKS, REAL ESTATE MUTUAL FUNDS, INDEX FUNDS Investment Tools 4Interest is paid when you borrow money. An example is if you borrow money from a bank, you will have to pay back the loan amount plus an additional amount of interest. This interest is an expense to you. BONDS Define compound interest as money that is periodically added to the initial principal amount, which in turn also earns interest. It s interest earning interest. Discuss the benefits of compound interest, particularly emphasizing the power of compound interest over an extended period of time. CHECKING ACCOUNT, SAVINGS ACCOUNT, MONEY MARKET DEPOSIT ACCOUNT, CERTIFICATE OF DEPOSIT, SAVINGS BOND Saving Tools BOND: a certificate of debt issued by the government or a company that promises repayment of the debt plus interest at a specified future date. Continued on next page 5

6 CERTIFICATE OF DEPOSIT: a savings certificate that usually earns a higher amount of interest than a basic savings account. The certificate matures at the end of the set amount of time. The saver may pay penalties if money is withdrawn before the maturity date. CHECKING ACCOUNT: a bank account that allows the depositor to withdraw money by writing checks. INDEX FUNDS: a type of mutual fund that follows specified investment rules. MONEY MARKET DEPOSIT ACCOUNT: a type of savings account that usually earns a higher amount of interest than a basic savings account. This account usually requires a higher minimum deposit and minimum balance than a basic savings account. MUTUAL FUNDS: a professionally managed investment program that brings together a large group of investors that trades in diversified holdings. REAL ESTATE: property consisting of land and/or buildings. SAVINGS ACCOUNT: a bank account that earns interest. SAVINGS BOND: a certificate of debt issued by the United States Treasury that promises repayment of the debt plus interest at the end of a specified period of time. STOCKS: shares of ownership of a company. WRAP-UP (Optional) Ask students how longer periods of time affect the compounded interest growth of savings and investments. Considering the slow growth of funds in a typical savings account, ask students to explain why stock and bond investments may be necessary for them to reach long-term retirement goals as adults. SUMMARIZE Ask the students to write down one sentence that states the main idea of this lesson (e.g., Compound interest makes your money grow quickly ; Invest now for your future ). Have the students share some of their main ideas. LESSON EXTENSION (Optional) Bonus question for the students: If you want to have $1,000,000 by the time you are 50 years old, how much will you need to save beginning this year? Have students use the online investment goal calculator at LESSON THREE CREDIT AND WHAT IT S GOOD FOR OBJECTIVE Students will: Evaluate the role of credit in making purchases and learn the importance of maintaining a good credit score. TIME: one class period MATERIALS: Money Confident Kids high school magazine (page 5) INTRODUCTION Ask students to share their ideas on why consumers use credit cards to make purchases. Ask: What advantages and/or disadvantages, if any, do you perceive in the use of credit cards? THE LESSON Tell students that currently the average American household has almost $6,000 in credit-card debt. At an average credit-card interest rate of 15% and making a monthly payment of $120, it would take more than six years to pay off, and the amount of interest paid would be more than $3,000! Have students read the articles on page 5 of Money Confident Kids high school magazine. After reading the articles, ask the students if their view of the use of credit cards has changed. What things might they consider before making a credit-card purchase? Share these tips for obtaining and using credit cards: 4Shop around for the type of credit card that is right for you. Read the details. Don t be fooled by low introductory interest rates that soar after a few months. 4Be wary of credit cards that offer rewards or cash back. If you don t pay off your balance every month, the cost of the interest is almost always greater than the value of the rewards or cash back. 4Before using a credit card to make a purchase, ask yourself if you will still have the item that you purchased by the time you pay off the credit card. 4Pay off the credit-card balance on time every month. 4Don t trust anyone with your card and keep all personal information secure. 4Ask students to add their own tips for wise credit-card use to this list. 4Share this list for helping students improve their credit scores: 6

7 FIVE THINGS YOU CAN DO TO IMPROVE YOUR CREDIT SCORE DO: Pay your bills on time. Payment history affects about 35% of your score. DON T: Open too many new accounts DO: Check your credit report annually. At annualcreditreport.com, the reports are available for free once a year. DON T: Close old, unused credit-card accounts. A card that you ve had for a few years is better for your score than one you ve just obtained. DO: Develop a credit history by getting at least one credit card and using it responsibly so that credit bureaus can begin to follow your credit history. Use the card to make a small purchase each month and pay off the balance immediately when the bill is due. This helps establish good credit. DON T: Sign up for store credit cards just to get a discount on a purchase. Each credit report request can have a negative impact on your credit score. DO: As you get older, mix up the types of credit that you use over time. Lenders like to see that you can manage different types of debt such as major credit cards, store credit cards, and loans, such as a car loan. DON T: Max out your credit card. Keep credit balances at 25% or below your total credit limit. LESSON ACTIVITY Tell students that landlords often use credit scores before leasing an apartment to a prospective tenant to evaluate the tenant s financial responsibility and the likelihood that the tenant will pay his or her rent on time. TENANT A: Has a large amount of debt greater than $5,000. Has never been late on a bill payment. Has opened five new credit-card accounts within the past six months. TENANT B: Has a moderate amount of debt less than $5,000. Has been late (more than 90 days overdue) on about 10% of bill payments within the past year. Has opened one new credit-card account within the past six months. TENANT C: Has a small amount of debt less than $1,000. Has been late (more than 90 days overdue) on three bill payments within the past year. Has opened two new credit-card accounts within the past six months. For further information on how a FICO credit score is determined, have students go to -education/whats-in-your-credit-score/. WRAP-UP After completing the lesson, again ask students to share their ideas on the advantages and/or disadvantages, if any, of using credit cards. SUMMARIZE Ask students to identify their number-one tip to remember when it comes to obtaining and using a credit card. Write the synopsis of each tenant below on the board. Put the students in small groups of three or four. Have the groups discuss and evaluate the financial responsibility of following three prospective tenants. Ask the groups to identify to whom they would rent the apartment and why. (Note: Each of the prospective tenants have pros and cons. There are arguments to be made for each potential tenant. The purpose of this activity is to engage the students in reasoning and discussing the factors that make up a person s creditworthiness. As long as students can reasonably support their ideas, each of the listed tenants is a possible right answer.) 7

8 LESSON FOUR DON T GET HOOKED OBJECTIVE Students will: Explore and critically evaluate marketing strategies that are used to entice high school students and young adults to purchase products. TIME: one class period MATERIALS: Money Confident Kids high school magazine (page 2), materials to create a visual advertisement, real-life examples of advertisements that exemplify the marketing strategies listed in The Lesson below (provided by the volunteer) INTRODUCTION Ask students to identify, on a scale of 1 to 10 (with 1 being not very much and 10 being greatly influenced), the influence they think advertising and marketing have on their purchasing decisions. Ask students to explain the reasoning behind their scores. After discussing these marketing strategies, divide students into small groups of three or four. Have each group develop an advertisement for a real or fictitious product. (Consider using T. Rowe Price s Star Banks Adventure game as one of the products. Popular food items, clothing apparel, cars, phones, and other electronics are all possibilities as well.) Assign each group a different type of medium for which to develop their advertisement: print, television commercial, street or billboard ad, online banner ad, Instagram, YouTube, etc. If time is limited, all of the advertisements can be drawn or storyboarded on paper instead of being fully produced. WRAP-UP Have students share their advertisements with the rest of the class. Ask the students to identify the marketing strategies they observe in the advertisements. SUMMARIZE Ask the students to write three sentences of advice to elementary school students to make them aware of how advertising can influence their buying decisions so that they won t be misled into making unwise choices. 8 THE LESSON To develop background understanding, have students read the article on page 2 of Money Confident Kids high school magazine. Then share and discuss the following marketing strategies used by companies to appeal to high school students and young adults (use real-life advertising examples, if possible): 4FAMILY TOGETHERNESS Young consumers respond well to images of families spending time together and having fun. 4CELEBRITY Young consumers, as well as most people, are attracted by the style and choices that are made by athletes and other celebrities. 4BANDWAGON EFFECT Many advertisements imply Everybody is doing it, even though it is not stated outright. Young people are influenced by wanting to have what everyone else has and what everyone else is doing. 4MUSIC Catchy and/or popular music makes products more appealing. It creates an emotional connection between the product and the consumer. 4COOL FACTOR Advertisers develop a cool factor in their product advertising that makes consumers feel that they fit in and are part of something greater. 4SLOGANS Advertisers create catchy slogans and taglines to help customers remember a product, brand, or company.