I CARE about my financial future.

Student Name:

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A credit education program for Kentucky high school students delivered in the classroom by attorneys

The Kentucky Bar Foundation funds and directs the CARE Program throughout Kentucky.

Attorneys CARE about credit education for Kentucky teens.

Visit the CARE Web site for attorneys, teachers, and students at www.careinky.org.

What?

Who?

Why?

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The Background and History of the CARE Program

The Credit Abuse Resistance Education (CARE) Program was created in 2002 by the Honorable John C. Ninfo II, retired United States bankruptcy judge for the Western District of New York. CARE is a personal finance literacy education outreach program that provides interested and caring judges, trustees, attorneys, and court staff members from the legal com-munity as speakers to high schools. The presenters share their unique knowledge and experiences and provide students with lessons, tactics, and techniques they need in order to help them lead a financially respon-sible, debt-free life. The CARE Program has a presence in all 50 states and the District of Columbia.

The American media has dubbed this program a “scared straight” credit program for students. CARE is honored to be a national partner of the Jump$tart Coalition and a member of the National Financial Education Network.

In 2007, the Kentucky Bar Foundation (KBF) took the lead in bringing the CARE Program to central Kentucky. KBF invited Judge Ninfo to come to Kentucky and formally introduce the program to Louisville and Lexing-ton. The Louisville Bar Association and the Fayette County Bar Association initially led the way with providing attorneys to visit high school classrooms to make CARE presentations to members of the senior class.

Since the inception of the CARE Program in Kentucky, it has grown to reach more than 20,000 students annually. CARE continues to attract program partners like Forward in the Fifth serving eastern Kentucky counties.

The KBF has made a significant financial commitment to CARE for the past several years to enable schools to have professional presentations, high-quality student materials, and an online clearinghouse for credit edu-cation information and resources.

The KBF acknowledges Jefferson County Public Schools (JCPS) for the original graph-ic design of the CARE student booklet and for yearly revisions and updates.

For More Information:

Kentucky Bar Foundation Todd S. Horstmeyer, Executive Director

514 West Main Street, Frankfort, KY 40601-1883 Phone: 1-800-874-6582 • Fax: (502) 564-3225 thorstmeyer@kybar.org

Copyright 2012 Kentucky Bar Foundation

These educational materials were originally developed by the CARE Program founder, the Honorable Judge John C. Ninfo II, and were adapted for use in JCPS. These materials were edited with permission by the JCPS Materials Production Department.

MindsetMoney matters, so get the best value on every dollar you spend or borrow.

Are You Dealing With Money in Your Life? ............................................ 4Can You Believe This? ........................................................................... 5

Budgeting Know-How Don’t make wants and wishes “false needs.”

Making a Spending Decision .................................................................. 6Top Five Financial Tips ......................................................................... 7Simple Budget Idea ............................................................................... 8Develop a Budget and Live by It ............................................................ 9

Credit Sense Don’t use credit to buy stuff you can’t afford.

Cards and Plastic ................................................................................ 10Why People Use Credit Cards .............................................................. 11The True Cost of Credit Cards ............................................................. 12A Sample Credit Card Bill ................................................................... 13Consequences of Credit Abuse ............................................................. 14Your Credit Report ............................................................................. 15

Credit Used by Teens The only good debt is what you can afford to repay.

Like It or Not ..................................................................................... 16Common Forms of Credit .................................................................... 17 How to Dig Out of Debt ....................................................................... 18It’s the Law ........................................................................................ 19Tips for Car Loans .............................................................................. 20Payday Lending .................................................................................. 21Rent-To-Own Contracts ........................................................................ 22Cyber Credit Dangers .......................................................................... 23

Heading to College? Save if you want to do priceless things and live richly.

The Real Cost of College ...................................................................... 24Making It in College ............................................................................ 25

Wrap UpNow I Get It, I Think ........................................................................... 26Talk to Parents ................................................................................... 27Glossary ............................................................................................. 28

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EARNING money?

____√ here if you have a part-time job or another regular source of income.

MANAGING money?

____√ here if you have a written bud-get and/or balance your checking ac-count with debit card transactions.

SAVING money?

____√ here if you have a savings ac-count, bonds, a certificate of deposit (CD), or other forms of savings.

BORROWING money?

____√ here if you use a credit card(s) or have a car loan or retail store credit account, etc.

• The cost of using an ATM machine not tied to your bank is $4.50.

• 78 percent of NFL players and 60 percent of NBA players are broke when they retire.

• One out of five young adults has “debt hardships.”

• In 2014, the average credit card debt carried by undergraduate college students was $3,173.

• 47 percent of graduating high school students receive financial aid.

• Bankruptcy for females is on the rise.

CARE stands for:

C _______________

A _______________

R _______________

E _______________

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Making a Major Spending Decision

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Get the Best Value for Every Dollar You Spend or Borrow

CAUTION:Watch out

for impulsive spending.

It’s a Process:• Identify what you want or need.

• Determine how much you can spend.

• Consider which alternatives would satisfy you.

• Choose the features/criteria you value most.

• Compare each alternative to your criteria.

• Make your decision based on the results of your comparison.

There are +s (good things) and –s (bad things) about each alternative.

So, You Want a Cell Phone

Criteria Cost Apps Minutes Text Contract

Alternatives

Galaxy — + — + —

Nokia + — + + —

Apple — + + + —

Cricket + — — — +

What seems to be your best choice?

Create a budget with income/expenses.

Use cash, bank debit cards, or checks for your purchases. List some of your recent purchases.Find ways to save

money. What could you do?

Open a bank account. Check out three banks or credit unions in your community.

Pay bills on time. What do you owe?

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