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ASSETS MATTER
Your Financial Road Trip
High School Financial Education Training
March 14-15, 2011
Washoe County School District
ASSETS MATTER
Assets Matter
Assets enable families to: Weather economic crisis
Make choices
Invest in their futures
Plan for retirement
Transfer wealth to future generations
Bottom Line: Income helps people get by, assets help people to get ahead.
ASSETS MATTER
Assets Build Better LivesFamilies without savings and assets are more likely to experience:
• Divorce• Increased health problems for themselves and
their children• Less stable housing• Greater job turnover• Higher drop-out rates for their children• Less connection to their community
ASSETS MATTER
What is Asset Poverty?
• A household is asset poor if it has insufficient net worth to support itself at the federal poverty level for three months in the absence of income.
• Federal poverty line for a family of four is $22,350 year (or, $430 per week)
• In Nevada, 34% of those earning $44,801-$68,800 are asset poor.
ASSETS MATTER
Asset Poverty by Race/Ethnicity
56.5
43.5
26.3
19.4
34
27
12
16
0
10
20
30
40
50
60
AfricanAmerican
Latino Caucasian Asian PacificIslander
Asset Poverty
Income Poverty
Source: http://scorecard.cfed.org/
ASSETS MATTER
Asset Poverty by Education
37.3
29.6
19.221.3
0
5
10
15
20
25
30
35
40
HighSchool
SomeCollege
BachelorDegree
AdvanceDegree
Asset Poverty 33%
Source: http://scorecard.cfed.org/
ASSETS MATTER
Financial Education Matters
• Nearly one-third of teens owe money to a person or company, with an average debt of $230.
• Average debt of young adults ages 22-29 is $16,120.
• People in the 18 to 24 age bracket spend nearly 30% of their monthly income just on debt repayment - double the percentage spent in 1992 (10% of net income is a recommended amount for debt obligation).
• The number of 18 to 24-year-olds declaring bankruptcy has increased 96% in 10 years.
ASSETS MATTER
Financial Education Matters
• While 71% agree that the best way for teens to learn about money is from guided, hands-on experience or their own example, only 20% involve their teen in the family’s budgeting and spending decisions.
• Americans shelled out more than $24 billion in credit card fees in 2004, an 18% increase over the previous year.
• In 2005, savings rates dipped to minus 0.5 percent, something that hasn't happened since the Great Depression in 1932 and 1933. A negative savings rate means that Americans spent all their disposable income and dipped into past savings or increased their borrowing.
Collected from Jumpstart Coalition as of April 2010
ASSETS MATTER
Question for You
Do you think financial education is a stand-alone subject (like a physics course), or is it like reading – a skill to be learned and applied throughout life?
ASSETS MATTER
1. Review NEFE HSFPP material2. Review Recommended Curriculum Flow3. Walk through a lesson4. Review additional supplemental materials,
including tests5. Brainstorm – ideas, tips, deficits,
outstanding issues to be covered.
Roadmap of Today’s Trip
ASSETS MATTER
Recommended Resources
Building Wealth – Federal Reserve Bank of Dallashttp://www.dallasfed.org/ca/wealth/index.cfm
Practical Money Skills for Lifehttps://www.practicalmoneyskills.com/foreducators/lesson_plans/teens.php
Money Guide for Teenshttp://moneytalks4teens.ucdavis.edu/
Hands On Banking – Wells Fargohttp://www.handsonbanking.org