A TEEN LEADER'S FINANCES

Transcription

1 SESSION SESSION A TEEN LEADER'S FINANCES You can only become truly accomplished by doing something you love. Don t make money your goal. Instead, pursue the things you love doing, and then do them so well people will pay you for it. MAYA ANGELOU

2 A TEEN LEADER'S FINANCES Background Reading: Sarah Breedlove aka Madam C. J. Walker - First female African American millionaire. INTRODUCTION Session : A Teen Leader's Finances is designed to examine the relationship TL's have with money, identify financial management strategies, increase their financial intelligence and stress the importance of stewardship. SESSION PURPOSE To equip TL's with tools they need to formulate a financial management plan, understand basic financial terms, and empower them with financial strategies that will allow them to save, invest and become more financially savvy. SESSION OBJECTIVES Teen Leader's will Examine TL's personal feelings about money. Learn about credit, investing, and saving. Examine giving and stewardship. Examine a personal budget and spending plan. Learn to set long and short term financial goals. MATERIALS NEEDED Name tag for each TL TLC Instructor/Student Manuals Flip Chart/Marker Calculator Sign-in Sheets/Refreshments MEETING ROOM LAYOUT The meeting room should be set up with tables and chairs. Each place should include a pencil, bottled water, paper and blank (or printed) name tag. Place two bowls of mints at opposite sides of the table. One or two calculators should also be made available. TIME 1 ½ to 2 Hours 62 Suggested Agenda Suggested Time Agenda Minutes Welcome 10 Minutes Session Introduction 1 Minutes Financial Intelligence 10 Minutes Money Motives 1 Minutes Money Streams 10 Minutes Spending Patterns 1 Minutes Practical Application 1 Minutes Question/ Answer 10 Minutes Closing

3 Leader Preparation LEADER PREPARATION Read over the entire session and identify key areas of discussion. Review the session in the Student Manual to correlate planned activities and discussion. Leadership should arrive early and set up the room accordingly. Print all handouts prior to class. WELCOME TEEN LEADERS Greet each TL as they enter the room. Once everyone is gathered, welcome everyone and open the meeting. After the opening, ask TL's to recite their affirmation quote and expound on their background reading of Sarah Breedlove. Ask them to take out their weekly questionnaire and review the who, what, when and where. INSTRUCTOR After the meeting is opened, explain the purpose of the session. Explain to TL's the importance of understanding money. Explain Sarah Breedlove was the first African American female millionaire. Background Reading Important Points... - First African American millionaire. - Made her money selling hair products. - Trained beauticians on hair care. - Invented hair products because she was experiencing hair loss. Sarah Breedlove, also known as Madam C.J. Walker was a pioneer in black hair care and a prominent leader in the African American community. Those who desire to lead have to not only know how to make money, but to empower others as well. Madam C.J. Walker's leadership impacted black women for many generations. Leader Preparation Key Areas of Discussion Review the session Prepare session handouts/power point or flip chart Prepare the TLC table with refreshments, door prizes, etc. Financial Intelligence Financial Beliefs Money Motives Income Streams Types of Spenders Giving...It's Important SAVE NOW FOR LATER This session is designed to teach Teen Leaders the importance of financial management. 63

4 Session : A Teen Leader's Finances Instructor After the Introduction and Background reading discussion, explain the focus of A Teen Leader's Finances. Session focus areas include: Increasing TL's Financial Intelligence Encourage TL's to be a good steward over their blessings Teach TL's to save and prepare for the future Summarize the Introduction or ask TL's to summarize. Ask TL's to turn to Session in their TLC Student Manual. SESSION A Teen Leader's Finances INTRODUCTION "If a person gets his attitude straight toward money, it will straighten out almost every area in his life." Billy Graham 64 8 oney is an inanimate object. It is people who give it life, direction and purpose. The monetary system places value on goods which consumers buy in order to conduct business and live life. In other words, money doesn t have power or value until a person gives it to it. How you feel about money will determine your discipline in spending, saving and being a good manager over your credit and possessions. As a young leader, you give money its power; therefore, you are very instrumental in driving the economy of both your home and world. This session is designed to help you become a good money manager, investor and saver.

5 Instructor Ask TL's to take a few moments to write down how they feel about money, its purpose and place in their lives. I. MY FINANICAL INTELLIGENCE Session : A Teen Leader's Finances In the following blanks, discuss how you feel about money. In the following blanks, describe why you feel the way you do about money. Response Examples: Give TL's examples. I feel I am nothing without it. I feel safe when I have it, and lonely when I don t," etc. Ask TL's to share their responses. After they discuss, explain their feelings and understanding about money are shaped by how they are raised, how they were taught to understand money, and the influence of others. Ask them what factors contribute to their financial beliefs. Jot their responses on the flip chart while they write in their TLC Student Manual. 6

6 II. SHAPING MY FINANCIAL BELIEFS church Session : A Teen Leader's Finances personal desires parents society/media FACTORS Shaping My Financial Beliefs peers self-worth One s belief system, what momma taught you, and what church taught you, all play an important role in how one feels and handles their finances. These contributing factors can lead to you becoming a responsible, financially savvy person, or drive you off the cliff of debt. Either way, being aware of what you believe about money and why will help you avoid financial mistakes. Instructor After discussion on financial contributors, turn discussion to their Financial Intelligence. Explain to TL's how financially savvy they are could either set them up for life, or trap them into a long-term financial noose. Financial Intelligence is the understanding of financial terms, strategies and methods of doing business. After discussion, ask TL's to complete the Financial Terms Handout. Give TL's 10 minutes to complete. III. FINANCIAL TERMS Take a few moments to define the following Basic Financial Terms. Money - A commodity, asset, or (most commonly) currency that may be exchanged for goods and services. Stewardship - How one takes care of the resources entrusted them. Annuity - A product offered by an insurance company or an employer to which one makes contribution(s) and immediately or later begins receiving payments, which usually last the remainder of the annuitant's life. An annuity usually refers to a retirement account into which the annuitant makes payments over his/her working life. The payments are then invested and the annuitant begins to receive the principal plus earnings after retirement. Credit Report A detailed report of an individuals credit history prepared by a credit bureau and used by a lender in determining credit worthiness. Saving - The amount left over when the cost of expenditure are deducted. 66

7 Session : A Teen Leader's Finances Mutual Fund - An investment company that continually offers new shares and buys existing shares back at the request of the shareholder and uses its capital to invest in diversified securities of other companies. Debt - Any money owed to an individual, company, or other organization. One acquires debt when one borrows money. Expenses - The cost required for something. Giving - Freely transfer the possession of something to someone. Dividends - A portion of a publicly-traded company or fund's earnings that is distributed to shareholders. Bonds - Bonds are debt securities issued by corporations and governments. Stocks - A portion of ownership in a corporation. The holder of a stock is entitled to the company's earnings and is responsible for its risk for the portion of the company that each stock represents. Interest - the percentage of the value of a balance or debt that one pays or is paid each time period. For example, if one holds a bond with a face value of $1,000 and a 3% interest rate payable each quarter, one receives $30 each quarter. Charge off - Debt from a credit sale that the creditor is unable to collect. Debt becomes bad debt when the creditor has made all reasonable efforts to collect the debt but has been unable to do so. Credit - An agreement between a buyer and a seller in which the buyer receives the good or service in advance and makes payment later, often over time and usually with interest. Credit Score - An agreement between a buyer and a seller in which the buyer receives the good or service in advance and makes payment later, often over time and usually with interest. Prosperity Having success, flourishing. Broker - A person or firm that conducts transactions on behalf of a client. Equity - Ownership interest in a firm. Blessed - Held in veneration, revered. Annual Percentage Rate - The cost of funds or interest rate for an entire year expressed as a single percentage. Poverty - Describing persons who earn less than, or at least not significantly more than, the poverty level. Bankruptcy - A legal declaration that one is unable to pay one's debts and thus needs to have debts forgiven or reorganized. Instructor Although not all inclusive, the terms listed are the most commonly used financial terms, and having knowledge about each will help you conduct business from a place of understanding rather than confusion. Explain these terms are a general overview of terms they should know. Select a few terms to discuss specifically if time permits. After Financial Terms discussion, turn TL's attention the class assignment. 67

8 Session : A Teen Leader's Finances After discussing, explain the exercise to TL's. Ask TL's to turn to their financial worksheets and review directions. Teresa just graduated from college. She s a second grade teacher at Carson Elementary School. This is her first time having a real job with real bills. Help Teresa balance her budget for one month. Below is a list of Teresa's monthly bills and their due dates. Teresa is paid two times monthly on the 1 st and the 1 th. After Teresa receives her pay check use the blank forms, checks and debit card to help Teresa pay her bills. There will be a few surprises throughout the month, so be sure to budget correctly. Leader Lead the TL's through each page of their assignment and make sure they know how to write a check and balance the registry for all their transactions. Monthly Expenses Amount Rent $00.00 Energy Company Car Payment Furniture Bill 7.00 Cable Bill 0.00 Student Loan 0.00 Health Insurance Food 0.00 ATM Withdrawal 0.00 Toiletrees 0.00 Gas New Tires (Unexpected Expense) (1/18/xx) Entertainment 0.00 Savings 0.00 Friend doesn t pay back money she owes you (Until 1/23/xx) Clothes (Optional) Nails and Hair (Optional) 68

9 Session 4: A Teen Leader's Finances NOTE: Below are Teresa s monthly checks less the $ monthly amount she pays for medical insurance and taxes. Carson Elementary School Warren St. Anywhere, USA 7932 Date January 1, xx Pay to the order of Teresa Miller $900.00/xx Nine Hundred Dollars and no/ Pay period ending 12/31/xx Justin Green Carson Elementary School Warren St. Anywhere, USA 7932 Date January 1, xx Pay to the order of Teresa Miller Nine Hundred Dollars and no/ $900.00/xx Pay period ending 1/1/xx Justin Green Mastercard Valid Thru 09/11 Teresa Miller 69

10 Session : A Teen Leader's Finances The following are invoices for all of Teresa s monthly bills. Make sure to write paid, once you pay the bill. And make sure you are keeping your eye on due dates, you don t want to be charged any late fees. See U Energy Company Bill To: Teresa Miller Due Date 1/13/ xx Pay this Amount: $ This is a bill. If you don t pay by due date you will be charged a % late fee. If not paid by due date you will be subject to disconnection. For questions call who cares. Drive Me Pay for Me Car Payment Bill To: Teresa Miller Pay this Amount: $10.00 Due Date 1/30/ xx This is a bill. If you don t pay by due date you will be charged a % late fee. If not paid by due date you will be subject to repossession. For questions call who cares. Sit on me Furniture Bill Bill To: Teresa Miller Due Date 1/8/ xx Pay this Amount: $7.00 This is a bill. If you don t pay by due date you will be charged a % late fee. If not paid by due date you will be subject to repossession. For questions call who cares. Watch T.V. Cable Bill Bill To: Teresa Miller Pay this Amount: $0.00 Due Date 1/23/ xx This is a bill. If you don t pay by due date you will be charged a % late fee. If not paid by due date you will be subject to disconnection. For questions call who cares. 70

11 Session : A Teen Leader's Finances Cell Phone Company Bill To: Teresa Miller Pay this Amount: $80.00 Due Date 1/13/ xx This is a bill. If you don t pay by due date you will be charged a % late fee. If not paid by due date you will be subject to disconnection. For questions call who cares. Live in me Rent Bill To: Teresa Miller Pay this Amount: $00.00 Due Date 1/1/ xx This is a bill. If you don t pay by due date you will be charged % your rent as a late fee plus five dollars a day until rent paid in full. If not paid by due date you will be subject to eviction. For questions call who cares. Keep livin Health Insurance Bill To: Teresa Miller Due Date 1/17/ xx Pay this Amount: $ This is a bill. If you don t pay by due date you will be charged a % late fee. If not paid by due date you will be subject to cancellation. For questions call who cares. Pay for school Student Loan Bill To: Teresa Miller Pay this Amount: $0.00 Due Date 1/21/ xx This is a bill. If you don t pay by due date, you will be charged a % late fee. If not paid by due date you will be subject to default. For questions call who cares. 71

12 Session : A Teen Leader's Finances Keep up with your spending and income with the registry below. Date Transaction Memo/Check or Debit Debit Credit Balance 1/1/ xx Deposit Carson Elementary School $ $ /1/xx Nikki s Loan $

13 Session : A Teen Leader's Finances Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of 73

14 Session : A Teen Leader's Finances Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of Memo Signature Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of 74

15 Session : A Teen Leader's Finances Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of Teresa Miller Jones Day Avenue Anywhere, USA 7932 Date Pay to the order of 7

16 Session : A Teen Leader's Finances BASIC FINANCIAL TERMS WORKSHEET Take a few moments to define the following Basic Financial Terms. Money Stewardship Annuity Credit Report Saving Mutual Fund Debt Expenses Giving Dividends Bonds Stocks 76

17 Session : A Teen Leader's Finances Interest Charge off Credit Credit Score Prosperity Broker Equity Blessed Annual Percentage Rate Poverty Bankruptcy 77

18 Session : A Teen Leader's Finances Instructor After completing the budget, ask TL's to describe ways Teresa can mess up her budget and not have enough money to meet her financial obligations. Close the session by thanking TL's for their participation. Remind TL's of their backgroundr eading for next week and make yourself available for questions if needed. Distribute the evaluation form and take up the sig-in sheet. { Class Wrap Up Make sure you have Reviewed the Financial Terms Reviewed Streams of Income Reviewed Short and Long-Term Financial Goals Discussed Financial Assignment } 78