Created by: A Complete Step-by-Step Program for Learning Money Management. Instructors Guide

Transcription

1 TM Created by: A Complete Step-by-Step Program for Learning Money Management Instructors Guide

2 Program Overview The FamilyMint Money Management Certification program is designed to allow you to connect in a fun educational way with kids in the classroom and engage both children and their parents. The award winning program combines a 60-page step-by-step workbook with a fun online money management application for kids that simulates online banking and promotes goal setting. Kids that complete the program develop key money habits that will benefit them the rest of their lives. Target age: 9-14 (grades 5 through 9) Program Schedule Week 1: Kick-off & Overview of all chapters Week 8: Celebration/sign certificates/prizes Resource requirements (take these with you): YFL introduction letter for parents Money Snippet to send home to parents Workbooks Quarters (money fun fact visual aid) could bring roll to hand out quarters to kids answering questions. 5 blank envelopes (budgeting exercise visual aid) 10 $1 bills (budgeting exercise visual aid) 2 rolls of pennies (optional interest exercise visual aid) Connect, Engage, and Have Fun Page 2

3 Script: WEEK 1 (Program Kick-off) Approx. 1 Hour The program kick-off consists of an introduction to the basics of banking and to the certification program. Most importantly, make it a fun and engaging experience. Ask lots of questions. I. Welcome a. Welcome everyone and thank you for participating in the Money Management Certification program. Over the next few weeks you re going to learn; i. how to track and budget your money ii. about interest and how it works iii. how to create and achieve financial goals iv. and most importantly you re going to form sound money habits that will benefit you for the rest of your lives v. those of you completing the program will get (prizes/drawing/pizza party/etc ) II. A bit-o-humor start off some funny money jokes or a funny story to get the kids attention a. Funny money jokes i. What s the quickest way to double your money? Fold it in half. ii. Farmer: What would you do if a bull charged you? Mary: I d pay whatever it charged. iii. Three animals were having a drink in a cafe, when the owner asked for the money. I m not paying, said the duck. I ve only got one bill and I m not breaking it. I ve spent my last buck, said the deer. Then the duck ll have to pay, said the skunk. Getting here cost me my last scent. iv. How did the man feel when he got a big bill from the electric company? He was shocked. v. Where can you always find money? In the dictionary. vi. Why are diapers like $20 bills? Because you have to change them. vii. Why is the moon like a dollar? It has four quarters. viii. What did the duck say after he went shopping? (Put it on my bill!) b. Funny story i. There were these two roofers, Sam and George, who were laying a new roof on a barn. After lunch, they climbed back up to the roof and as George was the last to get off the ladder, he slipped and kicked the ladder, which fell to the ground. Sam and George looked at each other and Sam said how the heck are we to get down? George replied, I m sure someone will be along shortly and they can put the ladder back in place. So Sam and George resumed their roofing, keeping a wary eye out for any passerby s that could help with the ladder. Around 5 o-clock, both Sam and George were both very tired and worried as they had seen no one all afternoon. They both walked around the barn roof looking for any other possible way down, while yelling for help at the same time. George spotted a big pile of manure at the backside of the barn and suggested they could jump into the manure pile, which would break their fall. Sam was not so keen on the idea. He suggested they keep trying to call for help and sooner or later someone would have to come help. It was now around 10:00 o-clock and it was dark and getting quite cool. Since nobody had heard their call for help, Sam suggested they go with George s idea and jump into the pile of manure. As it was George s idea, Sam insisted George go first. So George leapt from the barn and a second later Sam heard a thwaap. Page 3

4 George! Sam called, did you make it? No answer. Again Sam yelled, hey George, are you alright? Sam heard some sputtering and spitting and then George yelled up he was alright. How deep is it? yelled Sam. It s ankle deep, replied George. So Sam took a deep breath, and then leaped off the roof. He went twammp and was up to his neck in manure. Hey George, I thought you said it was ankle deep. It is I dove in head first! ii. Question the kids 1. What do you think the moral of the story is? 2. How can this story relate to money? III. IV. iii. Moral of the story Many people find themselves neck deep in manure or debt due to unforeseen events. Some people like to dive right in, while others find themselves up to their necks in debt over time often due to circumstances beyond their control. The most important lesson is through good planning, you can avoid taking the leap all together. Hand out workbooks to kids a. Turn to the table of contents. Today we re going to be talking about tracking your money, goal setting and creating SMART goals, budgeting and growing your money through interest. b. Now turn to the introduction and be sure to show this to your parents. This provides an overview of how the program works. c. On page 3 and 4 are the instructions. These are probably the most important pages because they tell you what to do at home over the next few weeks. Money a. So let s talk start off talking about money. Who in here likes money? b. Who can tell me what money is? i. Definition: Coins or paper banknotes having a specific value that can be exchanged for goods and services. ii. Fun fact: Why do dimes, quarters and half dollars have ridges on them? (A: Not too long ago, these coins were made of silver. To prevent people from shaving bits of the coin off, which they would melt and sell, the Federal Reserve had the coins stamped with ridges as to identify tampering. Today, our coins have no precious metal in them. c. Raise your hand if you would consider yourself a spender? Spend everything you have. d. Raise your hand if you would consider yourself a hoarder? Don t spend anything. e. Money is nothing more than a tool. Like any tool, such as a hammer, you need to know how to use it. Proper money management is all about knowing how to use the tool. Having a plan for savings, spending and of course giving. f. Earning money most of us will not find ourselves winning a lottery, so we have to work in order to earn money. Of course we can also get money as a gift for birthdays or special occasions. This is all called Income (money received). i. Talk about the different ways we can earn money jobs, interest, allowance 1. How many of you receive an allowance? Page 4

5 V. Goals 2. How many of you do extra chores around the house or help out neighbors with lawns or other odd jobs to earn extra money? g. Expenses everyone has needs and wants and most of these come at a cost. These are called Expenses (cost required for something). i. Talk about needs vs. wants. 1. What are some examples of needs (required or necessary to live)? (food, housing, clothing) 2. What are some examples of wants? (ipod, Xbox, entertainment) h. Who can tell me exactly how much money you have right now? i. Who can tell me how much money you spent over the last month? a. Knowing both of these things is important to being able to properly manage your money and financial goals. That s why it s important to track your money. j. Tracking money Transactions are when you make a deposit or a withdrawal at the financial institution or receive money for doing a job or pay money for something. In order to keep track of everything your money is doing, you keep track of these transactions in a Register. Turn to page 7 in your workbook for an example. (Walk through register with students) k. If you are diligent at tracking your money, you will always know how much you have at any given time. It s when we fail to keep track of our money that we can get into trouble. l. QUESTIONS??? a. What is a goal? i. Something you want to achieve that requires effort on your part b. Raise your hand if you d like to be in the top 3%? i. If you learn how to and practice setting goals, both personal and financial, you will be ahead of 97% of the population who do not take the time to set goals. ii. The most successful people in the world set goals. Whether it s inventing the next great video game or to become an Olympian. Will this happen over night? Probably not. Persistence and dedication are key. You might fail once or a hundred times, but if you want it bad enough, you will keep working towards your goal and eventually achieve it. c. What are some things you would like to have? (go to the movies with friends, video game, cell phone, car, college education) i. For each of the things you ve identified, you can create a savings goal and begin saving for and achieving these goals. Some things though, may take longer than others to save for. ii. What about charity? Should giving some of our money to causes that are important to us be a savings goal? Why is this important? iii. Of the things the kids identify as things they d like to have, have them identify which ones would be considered long term goals and short term goals. Page 5

6 d. QUESTIONS??? VI. Budgeting a. Once you have an idea of how much income you have coming in and what your expenses and financial goals are, the real fun begins. In order to help you achieve your goals, you re going to set up a budget. A budget is simply setting aside money for a purpose. b. The best way for a budget to work is to make it visual. One of the simplest methods is known as the envelope system. Turn to page 17. i. Show the kids a few blank envelopes. Now take a couple of the goals they mentioned earlier and with a marker, write down one goal for each envelope. Make one of the envelopes General Savings for misc. needs and another Charity to help reinforce giving back. ii. Now we have to decide how much of our income we want to allocate to each of our envelopes. 1. Ask the kids to provide a percentage for each envelope. iii. When we receive money, we insert a percentage of that money into each envelope. 1. Use 10 $1 bills to show how this works. iv. When you have finally saved enough money for your goal, it s time to celebrate! c. QUESTIONS??? VII. Interest, Growing Your Money If time is getting short, you can talk about interest during the Week 8 (Celebration) a. Our last topic for today is interest. b. Who likes free money? c. Well, in the simplest terms, that is what interest is. You receive money every month for just keeping it in a savings account. Why you ask? Well, you are loaning your money to the financial institution so they can in turn use that money to loan out to other people for things like buying a house, car, or even to start a new business. The financial institution is paying you interest on your money for this privilege. So, you are earning money for doing nothing more than keeping your money in the financial institution. Pretty cool, huh? d. Similarly, let s say you want to buy a new car, but don t have enough money for it. The financial institution will then loan you the money you need and you will pay interest to the financial institution on money borrowed until it is paid back. e. There are two types of interest, simple and compound. Compound interest is the most commonly used in banking and is the best way to grow your money. i. Simple interest is where you earn money based only on the starting principal. ii. Compound interest works like magic, with your money constantly feeding on itself to grow larger and larger. How does it work? It s easy really. Interest is earned and paid not just on your principal, but also on all the previous interest earned. Your total balance grows faster and faster without you doing a thing! Page 6

7 iii. Which interest would you prefer to get? f. Optional activity i. Use stacks of pennies to visually show how compound interest works. Start with 10 pennies in a stack. This is your starting principal and you will earn something close to 10% interest per year. We are not using fractions of pennies. The idea of this exercise is to give the students a visual of the growth over 11 years. See chart below for each stack. Year Tot. Pennies ii. After 11 years notice how you have more than doubled your money! iii. How tall would the stack of pennies be after 20 years? (67!!!) That s almost 7 times what you started with. g. QUESTIONS??? VIII. Assignment/Next Steps/Wrap Up a. Now we know the best way for someone to learn something and make it stick is by doing it over and over until a habit is formed. Over the next few weeks you are going to practice all that we learned today. b. Hand out Letter to Parents and Money Snippet to students. c. Now take the workbook home, show it to your parents and start working on Chapter 1. d. QUESTIONS??? Page 7

8 WEEK 8 (Program Wrap-UP) - CELEBRATION/PRIZES This is where everyone comes back together to get certificates signed and receive prizes. Have the kids share what they learned and what goal they achieved. Refer to the Money Management Certification Program FES rep. checklist for Celebration to-dos. Page 8