Learning Circle 8: Financial Literacy · 2010-06-08 · the previous flip chart, facilitator writes SKILLS across the top. Facilitator writes “Savings” then crosses it out.) •

LearningCircle8:FinancialLiteracyTotalrunningtime:3hours,55minutes

©2010MissionSFCommunityFinancialCenter,ChristenGray,CelinaRamos‐Castro,YouthWorker:Collective,DepartmentofChildren,Youth,andTheirFamilies

Goalstatement:

Bytheendofthistraining,participantswillexperience,understand,andbeabletoapplytheprinciplesofinvestmentcyclesandhowtoimplementsuchprincipalspracticallyinthelivesofyouths;astrategyforinterruptingthedivestmentcyclefromcommunities;andfinancialliteracytips

Wewillaccomplishthisby:

− Reflectingonourpersonalrelationshiptomoneyandfinancialeducation− Listeningtothestoriesoftwoyouthwithtwodifferentfinancial

experiences− Learningaboutinvestmentcyclesofthreetypesoffinancialinstitutions:

checkcashingbusinesses,banks,andcreditunions− Usingtheatertodeconstructtheyouths’storiesandfindingwaysto

increasetheirfinancialliteracy− Workinginsmallgroupstoshareknowledgeandresources− Visuallydreamingofafinanciallyliterateworld

AgendaOverview:

Welcome and Arrival (20 minutes)Reflect (30 minutes): Self-Assessment Listen (30 minutes): Youth Stories Inquire (60 minutes): (Re)play, Interrupt, Change Connect (35 minutes): Small Group Work (Financial Literacy Education, Policy, Program Practices, Personal Finance) Dream (45 minutes): A Possible Financially Literate World Act (15 minutes): Act Worksheet and Evaluations

MaterialsNeeded:

− Markers− Flipcharts− Butcherpaper− 200$5Monopolycashorotherplaymoney− Twoimitationcheckswith$200writtenonthem− Theinvestmentcyclechartonflipchartpaper− Handouts:

o “TwoSisters,TwoStories”handouto FinancialLiteracySelf‐Assessmento Actworksheeto Evaluations

Context:



Giventheconstrainedeconomicrealitiesofmanyorganizations,theneedtoconnectlarger,sometimesabstractdiscourseaboutstrategiesrelatedtosustainabilitywithwhatisrealisticandrelevanttoindividualpracticeisvital.Youthworkers,inparticular,areoftenchargedwithtransferringknowledgeandgoodworkingpracticesaroundfinancialmanagementtotheyoungpeopleintheirprogramswithoutmuchregardfortheimplicationsorimportanceoftheirownlearningaroundthesesameissues.Theneedforatrainingthattakesintoaccountbothindividualcontextaswellasshiftingsocioeconomicvariables(likegentrificationandlocaleconomicstability)isastimelyasitiscriticaltobasicskilldevelopmentofyouthworkers.

DetailedAgenda:

Welcome–20minutesMaterialsNeeded:Flipchart,markers

Directions:WelcomeparticipantstotheLearningCircle/Training.Inviteallparticipantstointroducehim/herself.

Reviewgroundrules/groupagreements/rightsandresponsibilities.Ifyoudonothavegroundrules/groupagreementsalreadyset,youcaneitherhavethegroupbrainstormgroundrules/groupagreements/rightsandresponsibilities.Oryoucanusetheonesprovidedbelow.Itisimportantthatallparticipantsactivelyagreetothegroupagreementsatthebeginningofthetraining,andunderstandwhatthegroupagreementslooklike.

Example:IfrespectisagroundruleASK:Howdoyouknowwhenyouarerespected?Howdoyourespectothers?

Establishboundariesandconsequencesifanyonebreaksagroupagreement.

Example:Ifaparticipantbreaksanagreement,theyhavetoparticipatesilentlyfor10minutes.

Example:Ifsomeoneisfeelingunsafe,theycansay“Ouch”,andthatisacuefortheleadertoaskwhytheysaid“Ouch”anddealwiththesituationdirectly.

ExamplesofGroupAgreements

− Speakfromyourownexperience.− Seektounderstand.− Listenactively.− Challengeself.− Acknowledgeboundaries.− Stepup;stepback.− Celebratediversity.



Reflect–SelfAssessment–30minutesMaterials:FinancialSelfAssessmentcopies,pens

SettingContext:Thepurposeofthisactivityistogetparticipantstoreflectontheirownlifeinrelationtofinancialliteracy.

Directions:Handout“FinancialSelf‐Assessment.”Saysomethinglike,“FinancialLiteracyisnottaughtinschoolsasapartofastandardcurriculum.Itisnotonanystandardizedtestsoronanyentrance/exitexamsoranybasiccompetencyexams.Yet,financialliteracyandthebenefitsofhavingknowledgeofthesubjectariseseverydayinthelifeofpeopleofallages.Asyouunderstandandfindyourroleinthissubjectinrelationtoyoungpeople,wefirstwanttobeginwithareflection.PleasereadandwriteYorN(yesorno)tothequestionsonthehandout.You’llhaveaboutfiveminutes.Whenyourdone,pleasefindapartneranddiscussthefollowupquestions.”

Giveparticipantsfiveminutesforindividualwork.Attheendoffiveminutes,encourageparticipantstofindapartner.

Giveparticipants15minutestodiscusstheworksheetinpairs.

Attheendoffifteenminutes,reconvenethelargegroupanddebriefusingthefollowingquestions:

− Whatstoodoutforyou?− Whattoolsdidyouhaveatage12and16thatsupportedyourgrowthin

financialliteracy?− Whatdidyouwishyouhadatage12and16?− HowdidyouallgetfrompointAtopointB(possiblebrainstormposter)

o Possibleanswersinclude:1. Parentstaughtme2. College3. Mademistakes,learnedthehardway4. Didownresearchonsubjects

Atthewrapupofthedebrief,saysomethinglike,“Ifouryoungpeopleareinasituationwherealotofthesethingsaren’tpossible,howandwhenwillouryouthgetknowledgearoundthesubject?Wherewilltheygetthisinformation?Whoisresponsibleforprovidingthisinformation?”Donotanswerthesequestions.Rather,encourageparticipantstoholdthesequestionsthroughouttherestoftheLearningCircle.

Listen–YouthStories–20minutes



Materials:200$5Monopolycashorotherplaymoney,twoimitationcheckswith$200writtenonthem;“TwoSisters,TwoStories”handout;flipchartpaper,markers,theinvestmentcyclechartonflipchartpaper

SettingContext:ThepurposeofthisactivityistoshowparticipantshowmoneyiseitherinvestedordivesteddependingonHOWfinancialliteracyhappenswithinyouthprograms.

Directions:Invitetwoparticipantstothefrontoftheroom.OneparticipantisCarla.OneparticipantisElsa.Handoutfour$5toallparticipants(ifthereare20peopleormore.Iftherearelessthan20people,handoutsixbillsperperson).Inviteaparticipanttobeataxcollector/cityagencyrep.Inviteaparticipanttobeapaydaylender.Inviteaparticipanttobeabanker.Handout“TwoSisters,TwoStories”toallparticipants.

Have“Carla”standononesideofthemainfacilitator.Have“Elsa”standontheothersideofthemainfacilitator.BeginCarla’sstory.Readthebulletsandinstructparticipantsto“do”theactionsintheparenthesis.

CARLA

• CarlaparticipatesinayouthleadershipprogramtwotimesaweekatherneighborhoodyouthcenterthatisfundedbyaCityAgency.TheCityAgencyreceivesitsmoneyfromthetaxpayers.(Havethetaxcollectorcollect$5fromeither40participantsOR$10from20‐39participantsOR$15from10‐19.Havethetaxcollectorcountout$200andhandittothefacilitator.)

• Shereceivesa$200stipendcheckeachmonth.(FacilitatorhandsimitationchecktoCarla.)

• Onpayday,CarlatakesherchecktotheMoneyMartcheckcashieraroundthecornerfromtheyouthcenter.(HaveCarlahandthechecktothepaydaylender.Havethepaydaylendercountout$190andhandittoCarla.)

• Shewalksoutwith$190cashinherpocket.Onherwayhome,shebuysherfastpass.(HaveCarlacountout$15andgiveittothefacilitator.)ShealsostopsatMcDonaldsforaquickbite.(HaveCarlacountout$10andgiveittothefacilitator.)Then,shestopsatFootLockeroranotherstoreandbuysafewthings.(HaveCarlacountout$100andgiveittothefacilitator.)Shearriveshomewith$75.

• Athome,Carlausuallygiveshermother$50(HaveCarlahandthefacilitator$50)andkeepstherestforspendingthroughtherestofthemonth.

• Carlalovesherpaydayritualandbringshersisteralongsometimes.ShefeelsproudtobeearningmoneyandtobeinapositiontotreathersistertoMcDonald’s.

• Carla’smotherusedtobringheralongonpaydaywhenshewouldshopforgroceries,clothes,andotherthingsfortheirhome.Foranafternoontheywouldfeelliketheycouldbuyanything.(HaveCarlaholduphowmuchmoneyshehasleft.)



FASTFORWARDtoa23or24‐year‐oldCarla

IMPACT:Financial

• Bytheendofhighschool,Carlahadspent$480oncheckcashingfees.(Facilitatorwrites$480largeonapieceofflipchartpaper.)

• Whenshewas18,shestartedCityCollegeandgotafull‐timejobearning$30,000topayherexpenses(Facilitatorwrites$30,000largeonapieceofflipchartpaper).ShekepttakingherchecktoMoneyMart—nowshepays$1,500peryearinfees.(Facilitatorwrites$1500underneath$30,000.Thensubtracts$1500from$30,000foratotalof$28,500.)

• Twicewhensheneededextracash,onceforacarrepairandonceforbooksforschool,shegotapaydayadvancefromMoneyMart.Shedidn’thaveenoughtopayitoffbythenextpaychecksoshepaidthefeesagain.Bythetimeshecouldpayitoffthefees,shepaidback$800toborrow$325,bothtimes,foratotalof$950infeesontopofhercheckcashingfees.(Facilitatorwrites$950largeunderneath$28,500.Subtract$950from$28,500foratotalof$27,550.)

• BecauseshewalkshomewithlotsofcashwhensheleavesMoneyMartandstoresitinherroom,thereisachanceCarla’smoneycouldbestolen,misplacedorlost.(Facilitatorwrites$2000largeunderneath$28,550torepresentstolen,misplaced,orlostmoney.Subtract$2000from$28,550foratotalof$26,550.)

IMPACT:Knowledge,practices0

• Carlahasneverhadasavingsaccount,sosheisnotfamiliarwithdealingwithbanksorcreditunions.(Onaseparatesheetofflipchartpaperhungnexttothepreviousflipchart,facilitatorwritesSKILLSacrossthetop.Facilitatorwrites“Savings”thencrossesitout.)

• Carlahasneverhadacheckingaccount,sosheisnotfamiliarwithbalancingacheckbookorusinganATMcard.(Facilitatorwrites“BalancingaBudget”thencrossesitout.)

• Carlaisnervousaboutgettingacreditcardandworriesthathercreditisn’tgoodanywaybecauseshewasdeniedcreditonce.(Facilitatorwrites“Credit”thencrossesitout.)

• Carlaoperatesonacashbasis,soshecannotmakereservationsonlineusingacreditcard.Shecan’tbuyanairplaneticketonlineandshecan’trentacar.(Facilitatorwrites“Access”thencrossesitout.)

• Carladoesn’thavesavingsgoalsbecauseshewasneverexposedtosaving,trackingexpenses,orfinancialgoal‐setting.Sheismorefocusedonstretchinghermoneythroughthemonth.(Facilitatorwrites“Goalsetting”thencrossesitout.)

Facilitatorthanks“Carla”andhashersitdown.ThenmovesontoElsa’sstory.

ELSA



• Carla’syoungersister,Elsa,participatesinayouthleadershipprogramthatprovidesfinancialtraining.ThisprogramisalsofundedbyaCityAgency.TheCityAgencyreceivesitsmoneyfromtaxpayers.(Havethetaxcollectorcollect$5fromeither40participantsOR$10from20‐39participantsOR$15from10‐19.Havethetaxcollectorcountout$200andhandittothefacilitator.)

• Aspartofthisprogram,Elsalearnedaboutfinancialissuesandnowtrainsotheryouthfromtheneighborhoodaboutsaving,budgeting,spending,andfinancialinstitutions.

• Elsa’sprogramgaveherasavingsaccount,andtheydeposither$200monthlystipenddirectlyintoheraccount,soshedoesn’tgetacheck.(FacilitatorpresentsthechecktotheaudienceandElsa.ThenfacilitatorhandsthechecktotheBanker.)

• Atfirstshedidn’tlikeitbecausehersisteralwayshadacheckandsheusedtogowithhertocashitandthenspendmoneyonthewayhome.ThatishowElsathoughtitwouldbeforher.

• Theytake10%outofherstipend,andputitintoalong‐termaccountthatshecan’ttouchuntiltheendoftheprogramyear.(Havethebankercountout$20andsetitaside.)

• Attheendofherfirstyear,shehad$240savedupandhadearned$10ininterest.Sheusedthemoneytobuyacamera.(BankershouldhandElsa$250dollars.)

FASTFORWARDtoa23or24‐year‐oldElsa

IMPACT:Financial

• Bytheendofhighschool,Elsahadsaved$500duetoheragency’sstipendpaymentpolicy.Afterthefirstyearseeinghowthesavingsaddedup,Elsasavedmoreofherstipendtogetabettercamera.(Facilitatorwrites$500onflipchartpaper.Facilitatorwrites$20INTEREST.Facilitatoradds$500and$20foratotalof$520.)

• Whenshewas18,shestartedCityCollegeandgotafull‐timejobearning$30,000topayherexpenses.Sheaskedheremployerfordirectdepositandestablishedasavingsaccountsosomeofhercheckwouldgodirectlyintothesavingsaccount.Shesetagoalofsaving$2,000soshecouldbuyausedcar.(Facilitatorwrites$2000onflipchartpaper.Facilitatorwrites$80INTEREST.Facilitatoradds$2000and$80foratotalof$2080.)

• Elsahadanemergencyexpenseandshecovereditwithheremergencysavingsfund.

IMPACT:Knowledge,practices

• Elsawasaccustomedtohavinganaccountsoitwaseasyforhertosetupdirectdepositandtwoaccountsforhersavingsgoals.(Onaseparatesheetofflipchartpaperhungnexttothepreviousflipchar,facilitatorwritesSKILLSacrossthetop.Facilitatorwrites“Savings”.)



• Elsahadneverhadacreditcard,butshewasfamiliarwithbudgetingandtrackingherexpensessoshewasn’tworriedshewouldn’thaveenoughtopayherbillorwouldn’tknowhowtoreadthestatementandfigureouthowitworked.(Facilitatorwrites“Budgeting”.)

• Elsaknewitwasimportanttobuildcreditsosheappliedforacreditcardthroughherfinancialinstitution.Sheusedittobuyherfamilyairlinetickets,makereservationsforGreatAmerica,andotherthings.Elsaalwayspaidthebalanceinfulltomaintainhercreditandavoidpayingmoreinterest.(Facilitatorwrites“Credit”and“Access”.)

• Onceshehadaportionofhersavingsforthecar,Elsaputitina6‐monthCDbecausesheknewitwouldearnmoreinterest.(Facilitatorwrites“GoalSetting”and“Investment”.)

Facilitatorthanks“Elsa”andhashersitdown.FOLLOWINGTHEMONEY:WHEREDOFEESANDDEPOSITSGO?

Askforthepaydaylendertocomebackup.Askforthreevolunteers.HaveoneparticipantbetheDollarFinancialCorpandstandasfarawayfromthegroupaspossible.Haveoneparticipantbealobbyist.Havethefinalparticipantbeapolitician.HavethelobbyistandpoliticiansaunterovertotheDollarFinancialCorprep.

Whathappenstothe$10feeCarlapaysMoneyMarteachmonth?

• Theother$10endsupinBerwyn,PA—homeoftheDollarFinancialCorp,whichownsMoneyMart,LoanMart,andmore.LoanMartistheirpaydaylender.(HavepaydaylendertakemoneyawayfromthecircleandgiveittotheDollarFinancialCorprepstandingontheothersideoftheroom.)

• TennesseeisthebirthplaceofpaydaylendingandisstillhometoCheckIntoCash,thethirdlargestpaydaylenderinthecountry.Itsfounder,W.AlanJones,isalongtimefriendof,andcontributortoBobCorker,TennesseeSenatorandmemberoftheSenateBankingCommittee.(HavetheDollarFinancialCorprepgive$5tothepolitician.)

• CorkerwasresponsibleforsecuringanexemptionforpaydaylendersfromoversightoftheConsumerFinancialProtectionAgencyinthebillthatCommitteeChairSenatorDoddreleasedlastweek.(Havethepoliticianpocketthemoney.)

• Inshort,theserelativelynewcompanies(mostwerefoundedintheearly1990s.CashintoCheckwasestablishedin1993)usetheirprofitstobuypoliticalinfluenceandregulationexemptions.(HavetheDollarFinancialCorprepgive$5tothelobbyist.Havelobbyistpocketthemoneyandlobbythepolitician.)

Thanktheparticipantsandhavethemtakeaseat.

Example:DifficultyGettingRateCapsforPaydayLoansPassed



• A36%ratecapforactive‐dutymembersofthemilitaryandtheirfamilieswaspassedin2006andwentintoeffectonOctober1,2007.Itwasaprovisionburiedinalargemilitarybill.TheDepartmentofDefensesoughttoregulatepaydaylenderratesformilitarypersonnelfordeploymentreasons.Highdebtcanmeanlossofsecurityclearanceordischarge.

• SenatorRichardJ.Durbin,DemocratofIllinoishasproposedextendingthiscaptoallborrowersin2008and2009.

• Currently12stateshave36%ratecaps,plusDC.InCalifornia,Lenoauthoredabillin2008thatdiedaftertwoweeks.In2009,financialbillswerefocusedonmortgageissues.

THEINVESTMENTCYCLE

WhatHappenstotheDepositsMadeatFinancialInstitutions?

WhathappenstoElsa’sdeposits?Atabank?AtaCreditUnion?

• Atabank,herdepositsarepooledwiththeentirebank’s,depositsandareinvestedinlargerenterprises—businesses,investments,maybelocally,butnotnecessarily.

• InaCU,Elsa’sdepositscirculateinlocaleconomy(ortheassociationmembership)—hermoneygetsloanedouttoanotherlocalpersontobuildtheircredit,theirbusiness,theirhome.

Whobenefits?

• Atabank,ifthebankdoeswell,thestockholdersbenefit.• AtaCU,iftheCUdoeswell,Elsagetsabetterreturnonhersavingsaccount

and/orlowerfees—becausesheisastockholder.Whodecides?

• Atabank,itistheshareholdersorboardthatmakesdecisions,notthecustomer.

• AtaCU,thememberselecttheboardofdirectors.Infact,Elsacouldrunfortheboard.Eachmemberhasinfluenceoverpoliciesandproductsoffered.

Showtheflipchartwiththeinvestmentcycleonit.

Inquire–(Re)play,Interrupt,Change–60minutesMaterials:paperremotecontrols,“TwoSisters,TwoStories”handout

SettingContext:ThepurposeofthisactivityistodeconstructCarlaandElsa’sstoriestounderstandHOWyouthworkerscaninterruptthedivestmentcycle.

Directions:Breakthegroupintosixsmallergroups.HavehalfthegroupdissectCarla’sstory.HavetheotherhalfofthegroupdissectElsa’sstory.Tellthegroups



thattheirtaskforthenextfifteenminutesistoidentifyWHEREinthestoriesYOUTHWORKERScanmakeanimpactbyINTERRUPTINGthecycleoffinancialilliteracyandHOWtheycanINTERRUPTthestorytoCHANGEthelong‐termoutcomes.Instructthegroupthattheywillbe“performing”thesestoriestothegroup,sotheyshouldbeconcretewithactualwords,phrases,andACTIONSthatYOUTHWORKERScanuse.

Givethegroups15minutestocraftthestories.

Reconvenethegroup.Providethefollowinginstructions:

− WeareusingtheprinciplesofaDVDREMOTECONTROLduringthesestories.Whatarethoseprinciples?(Havetheparticipantsbrainstorm.Makesuretheyinclude:Rewind,Pause,FastForward,SkipAhead,StartOver,MainMenu).

− WewillbestartingwithCarla’sstory,andonegroupwillstartthingsoff.Pleasegivethefirstgroupaminuteorsotoestablishthestory.Thentakeoutyourremotecontrol.

− Asyouwatchthestoryunfold,youareincontroloftheremote.IfyouseeanopportunitytoINTERRUPTthecycleoffinancialilliteracy,yellPAUSE!Then,instructthegroupwhereto,eitherrewindorfastforwardto,tapsomeoneout,andtaketheirplace.(NOTE:EncouragetheothergroupstoINTERRUPTwiththeirbrainstormedstrategies.)

− Aftersomeonehasbeenreplaced,thefacilitator“clicks”PLAY.− ThestoryunfoldsuntilsomeoneintheaudienceyellsPAUSE.− ContinuePLAYINGuntilthestorycomestoanend.− Then,ifanothergroupwithCarla’sstorywouldliketostartthestoryover

theymay.Ifnot,moveontoElsa’sstoryRepeattheprocess.

AfterbothCarlaandElsa’sstoryhasunfolded,debrieftheexerciseusingtheORID1debriefquestionsbelow.

− OBJECTIVE:Whatphrasesandwordsdidyouhearduringthisexercise?Whatactionsandinteractionsdidyounoticebetweenparticipants?Whatbehaviorschangedandhowdidtheychange?(Stayspecificandobservational.)

− REFLECTIVE:Howdiditfeelwatchingthesestoriesunfoldinfrontofyou?Aseither“Carla”or“Elsa,”whatemotionscameupforyouduringthedifferentstrategiesbeingused?Asayouthworker,whatemotionsorfeelingscameupforyouasyouweretryingdifferentstrategies?Weretheremomentsoffrustration?Whatwerethey?Werethemomentsofclarityoran“ahamoment”?Whatwerethey?

1ORIDisaspecificdebriefingtechniquedevelopedbytheInstituteforCulturalAffairs.



− INTERPRETIVE:Whataretheessentialmessagesand/orthemesofthesestories?Lookingbackattheopeningexercise,theself‐assessment,wherewereyouinCarlaandElsa’sstory?HowcanyouuseyourstorytoeducatecurrentandfutureCarlasandElsas?

− DECISIONAL:Whatisonethingyouaregoingtododifferentlyasaresultofthesestoriesandexercises?

Connect(35minutes):SmallGroupWorkMaterials:None

SettingContext:Thepurposeofthissectionistobreakintotwogroupstoexploreandfindresourcesthatcanbuildyouthandyouthworkersfinancialliteracy.

Directions:Instructtheparticipantsthatyouwillbebreakingupintotwosmallgroups.Onegroupwillfocusonfinancialliteracyeducationforyouth.Theothergroupwillfocusonincreasingthecapacityofthosethatworkwithyouthtounderstandfinancialliteracy.Giveparticipantsabouttwominutestodecidewhichgrouptheywillbeapartof.Then,breakintotwosmallgroups.

Afterabout30minutes,bringthesmallgroupsbacktogetherandhaveeachgroupsummarizewhattheydiscussedforaboutfiveminutes.

FinancialLiteracyEducationforYouth:

Materials:None

SettingContext:Thepurposeofthisactivityistohaveafocusedconversationonfinancialliteracyeducationforyouthinanefforttobrainstormstrategies,tools,andresourcestobuildyouths’financialliteracyskills.

Directions:Askparticipants,“Whatcurrentfinancialeducationisavailabletoyouth?”Someexamplesinclude:

− GovernmentStandards− Schools− Contentstandards− Onlineresources− Communityorganizations

Askparticipants,“Whatistheroleofcommunity‐basedorganizationsinraisingfinanciallyliterateyouth?”Someexamplesinclude:

− Providingfinancialeducationforstaffandyouth− Integratingaprocesstodirectlyconnectyouthtofinancialservices(e.g.

banks,creditunions)toallowforassetbuilding− Encouragingdirectdeposit



Askparticipants,“Whatresourcesareavailableforyouthworkers,organizations,andyouthtotapintorelatedtofinancialliteracy?”Examplesinclude:

a. MissionSFCommunityFinancialCenterb. FeedthePig(onlinecurriculum)c. JumaVentures

WorkingwithAdultsWhoWorkwithYouth:

Materials:None

SettingContext:Thepurposeofthisactivityistoexplorehowtoeducatetheadultsaroundyoungpeopleaboutfinancialliteracy.

Askparticipants,“Whatdoyouthinkthebiggestbarrierisbetweenyouthworkersdoingfinancialliteracyworkandtheadultsthatareinthelivesofouryouth(parents,otherfamilymembers,guardians,etc)?”Someexamplesinclude:

− Notunderstandingresponsiblemoneymanagementthemselves− Theyfeelyouthdonotneedtoknowtheinformation− Feelitisobtrusive− Havebadfeelingstowardmoneyestablishments− Culturalbarriers

Askparticipants,“Howcanweovercomethesebarriers?”Someexamplesinclude:

− Holdmoneymanagementclassesforadults− Providestatisticsandstoriesaboutyoungpeopleandmoney

managementforparents− Haveparentsbeinvolvedinplanningthecurriculum

Askparticipants,“Whatsupportwillweasstaffpeopleneedinordertosupportourfamiliesinobtainingthisinformation?”Someexamplesinclude:

− Professionaldevelopment− Youthfriendlycurriculumthatisadaptabletoparents− Parentsupport

Dream–APossibleFinanciallyLiterateWorld–45minutesMaterials:Longbutcherpaper(NOTflipchartpaper),markers,coloredpencils,etc.

SettingContext:Thepurposeofthisactivityistoimaginethepossibilitiesoffinanciallyliteratecommunities.

Set–up:Spreadoutonelongstripofbutcherpaperalongawalloracrossthefloormakingsureitislongenoughforparticipantstostandorsitnexttoeachother.



Directions:Instructtheparticipantsthatinamomenttheywillbegoingtothewall/floortodraw,doodle,orwritedownwhattheyimagineafuturewouldlooklikewithfinanciallyliterateyouth,families,programs,andcommunities.Theycanuseanymaterialavailabletothemtocreatethisimage.Theywillhavefiveminutestostartthisvisualization.Thentheywillbegivenanothersetofinstructions.

Attheendoffiveminutes,instructtheparticipantstomovetoadifferentpartofthegraffitiwallandfindthebeginningofsomeoneelse’svisualization.Theywillhavefiveminutestoexpandonthatvisualization.

Attheendoffiveminutes,instructtheparticipantstomovetoanotherpartofthegraffitiwallandfindadifferentvisualization.Oncetheyareatadifferentspot,havethemfindapartner.Theirtaskistoconnectthetwovisualizationstogether.Theywillhavefiveminutestojointhevisualizations.

Attheendoffiveminutes,haveparticipantsswitchspotsagain.Thistimehavethemgetinquadsandconnectthevisualizations.Theywillhavefiveminutestomergethevisualizations.

Haveparticipantsstandbackandlookatthewholegraffitiwall.Givethemthreeminutestotakeitin.ThendebriefusingORID.

− OBJECTIVE:Whatdidyouinitiallyseewhenyoubeganthisexercise?Whatwordsand/orphraseswereusedwhenyoubeganconnectingvisualizations?Whatconnectionsdoyounoticeonthegraffitiwall?

− REFLECTIVE:Howdiditfeelmovingfromvisualizationtovisualization?Whatemotionscameupforyoulookingatthepossiblefuture?

− INTERPRETIVE:Whatistheimportanceofvisualizingwhatispossible?Howcanwerealizetheimages,words,andemotionscontainedinthisvisualization?

− DECISIONAL:Whatisonethingyouarecommittingtotherealizationofthisimage?

Act–ActWorksheet–15minutesMaterials:Actworksheet,evaluations

SettingContext:Thepurposeofthissectionistogetparticipantsthinkingabouthowtheywillapplywhattheyjustlearnedintheirprogram.

Directions:HandoutActWorksheettoallparticipants.Givefiveminutestocompleteworksheet.Attheendoffiveminuteshaveparticipantsshare,“OnethingIamtakingawayfromtodayis...”AND“OnethingIappreciatedabouttodayis…”.

Handoutevaluationsandthankthemforattending.



ACTWorksheetTodayIlearned…

OfthethingsIlearned,whatisconfirmedbypastlearningcircles,personalexperiences,formaleducation,and/orothertrainings?

OfthethingsIlearned,whatisdissonantwithpastlearningcircles,personalexperiences,formaleducation,and/orothertrainings?

WhatdoIneedtolearnmoreabout?

OfallthatIhavelearned,themostcriticalthingIneedtoapplytomyprogramis…

Thiscriticalpieceofinformation,knowledge,learningwillchangemyprogramby…

Inorderforthischangetohappen,Ineedto…

IwillknowIamsuccessfulwhen…

WhatIneedtocommunicateaboutthislearning,growth,andchangetoothersis…



StepOne:Thinkbacktowhenyouwere12.Wherewereyouliving?Whowasinyourhousehold?Whowereyourfriends?Whatwasmostimportanttoyou?Whatwasyourfavoritepasttime?Now,reflectonthefollowingstatementsbasedonyour12‐year‐oldself.

1. Ihavemoneycomingfromaspecificprovideronacontinuousbasis.

2. IknowwhatabudgetisandIdothemanytimemyfinancialsituationchanges.

3. Iknowwhat“bills”are.

4. Iknowwhatitmeanstohave“goodcredit”.

5. Iwantacreditcard.

6. Iknowthedifferencebetweenaneedandawant.

7. Iknowthatit’simportantnottospendmorethanIhave.

8. Iknowthedifferencebetweengrossincomeandnetincome.

9. Isaveanimpactfulpercentageofmyincomeeachmonth.

10. Iborrowand/oraskformoneymorethanIearnit.

11. Iknowwhatitmeanstogetthemostoutofmymoney.

12. Ioftensavemoneytowardsasavingsgoal.

13. Ioftencomparisonshop.

14. Igetpulledinbycleveradvertising.

15. Iknowwhatdebtisandknowhowtoavoidit.



16. Iknowaboutinvestmentsandhowtheywork.

17. Iknowandunderstandwhypeoplegetpaiddifferently.

18. Iknowandunderstandhowtaxesareimplementedandhowtheyaffectme.

19. Icanspeakintelligentlyabouttheglobaleconomy.

20. Iknowaboutbasicbankprocessesandprocedures.

StepTwo:Thinkbacktowhenyouwere16.Wherewereyouliving?Whowasinyourhousehold?Whowereyourfriends?Whatwasmostimportanttoyou?Whatwasyourfavoritepasttime?Now,answertheabovequestionsbasedonyour16yearoldself.

StepThree:Thinkbacktowhenyouwere21(ifyou’renotyet21,answerfortheageyouarenow).Wherewereyouliving?Whowasinyourhousehold?Whowereyourfriends?Whatwasmostimportanttoyou?Whatwasyourfavoritepasttime?Now,answertheabovequestionsbasedonyour21yearoldself.

StepFour:Reflectontheageyouarenow.Whereareyouliving?Whoisinyourhousehold?Whoareyourfriends?Whatismostimportanttoyou?Whatisyourfavoritepasttime?Now,answertheabovequestionsbasedontheageyouarenow.

StepFive:Findapartnerwhoisdone.Pleasepickafewquestionsthatinterestyoubelowanddiscussandyouranswers.Onyourowntime,reflectonalltheanswers.

1. Afterreviewingyouranswers,whatsticksouttoyoumost?2. Didmostofyouranswerschange,orstaythesameacrosstheages?Whydoyouthink

thishappened?3. Ifmostofyouranswerschanged,reflectwithyourpartneronthemomentthey

changed.4. Fortwoanswersofyourchoice,giveexamplesoftoolsyouusedatage12andage16.5. Fortwoanswersofyourchoice,giveexamplesoftoolsyouwishyouhadatage12and

age16.6. Pickaquestionwhoseanswerchangedfromage21totheageyouarenow(or16to

yourcurrentage).Whatcausedthischange?7. Whatanswersdoyouseeonthelastlinethatyouwishweredifferent?Areproudof?8. Howdidcultureandlifecircumstancesplayintoyouranswers?Ifthosethingswere

different,whatanswersdoyouthinkwouldhavechanged?9. Whatareyourtakeawaysfromthisexercise?



TWOSISTERS,TWOFINANCIALSTORIES

CARLA

• CarlaparticipatesayouthleadershipprogramtwotimesaweekatherneighborhoodyouthcenterfundedbyaCityAgency.TheCityAgencygetsitsmoneyfromtaxpayers.

• Shereceivesa$200stipendcheckeachmonth.• Onpayday,CarlatakesherchecktotheMoneyMartcheckcasheraroundthe

cornerfromtheyouthcenter.Shewalksoutwith$190cashinherpocketandusuallyhasabout$75leftwhenshegetshome.Shebuysherfastpass,stopsatMcDonald’s,stopsatFootLockeroranotherstoreasshemakesherwayhome.Sheusuallygiveshermother$50andkeepstherestforspending.

• Carlalovesherpaydayritualandbringshersisteralongsometimes.ShefeelsproudtobeearningmoneyandtobeinapositiontobuyhersisterMcDonald’s.

• Carla’smotherusedtobringheralongonpaydaywhenshewouldshopforgroceries,clothes,otherthingsfortheirplace,andforanafternoontheywouldfeelliketheycouldbuyanything.

FASTFORWARDto23or24year‐oldCarla

IMPACT:Financial

• Bytheendofhighschool,Carlahadspent$480oncheckcasherfees.Whenshewas18,shestartedCityCollegeandgotafull‐timejobearning$30,000topayherexpenses.ShekepttakingherchecktoMoneyMart—nowshepays$1,500peryearinfees.

• Twicewhensheneededextracash—onceforacarrepairandonceforbooksforschool—shegotapaydayadvancefromMoneyMart.Shedidn’thaveenoughtopayitoffthenextpaychecksoshepaidthefeesagain.Bythetimeshecouldpayitoff,shepaidthemback$800toborrow$325,bothtimes,foratotalof$950infeesontopofhercheckcasherfees.

• BecauseshewalkshomewithlotsofcashwhensheleavesMoneyMartandstoresitinherroom,thereisachanceCarla’smoneycouldbestolen,misplacedorlost.


• Carlahasneverhadasavingsaccount,sosheisnotfamiliarwithdealingwithbanksorcreditunions.

• Carlahasneverhadacheckingaccount,sosheisnotfamiliarwithbalancingacheckbookorusinganATMcard.

• Carlaisnervousaboutgettingacreditcardandworriesthathercreditisn’tgoodanywaybecauseshewasdeniedcreditonce.

• Carlaoperatesonacashbasis,soshecannotmakereservationsonlineusingacreditcard,shecan’tbuyanairplaneticketonlineandshecan’trentacar.



• Carladoesn’thavesavingsgoalsbecausesheneverwasexposedtosaving,trackingexpensesorfinancialgoal‐setting.Sheismorefocusedonstretchinghermoneythroughthemonth.

ELSA

• Carla’syoungersister,Elsa,participatesinayouthleadershipprogramthatfocusesonfinancialtraining.

• Aspartofthisprogram,Elsalearnedaboutfinancialissues,andnowtrainsotheryouthfromtheneighborhoodaboutsaving,budgeting,spendingandfinancialinstitutions.

• Elsa’sprogramgaveherasavingsaccount,andtheydeposither$200stipenddirectlyintoheraccount,soshedoesn’tgetacheck.

• TheprogramElsaparticipatesinisalsofundedbyaCityAgency.TheCityAgencyreceivesitsmoneyfromtaxpayers.

• Atfirstshedidn’tlikeitbecausehersisteralwayshadacheckandsheusedtogowithhertocashitandthenspendmoneyonthewayhome.ThatishowElsathoughtitwouldbeforher.

• Insteadherprogramputsitintoheraccount.• Theytake10%outofherstipend,andputitintoalong‐termaccountthat

shecan’ttouchuntiltheendoftheprogramyear.• Attheendofherfirstyear,shehadover$100savedupandhadearned

interest,too.Sheusedthemoneytobuyacamera.

FASTFORWARDto23or24year‐oldElsa

IMPACT:Financial

• Bytheendofhighschool,Elsahadsaved$500duetoheragency’sstipendpaymentpolicy.Afterthefirstyearseeinghowthesavingsaddedup,Elsasavedmoreofherstipendtogetabettercamera.Whenshewas18,shestartedCityCollegeandgotafull‐timejobearning$30,000topayherexpenses.Sheaskedheremployerfordirectdepositandestablishedasavingsaccountsosomeofhercheckwouldgodirectlyintothesavingsaccount.Shesetagoalofsaving$2,000soshecouldbuyausedcar.

• Elsahadanemergencyexpenseandshecovereditwithheremergencysavingsfund.


• Elsawasaccustomedtohavinganaccountsoitwaseasyforhertosetupdirectdepositandtwoaccountsforhersavingsgoals.

• Elsahadneverhadcreditcard,butshewasfamiliarwithbudgetingandtrackingherexpensessoshewasn’tworriedshewouldn’thaveenoughtopayherbillorwouldn’tknowhowtoreadthestatementandfigureouthowitworked.



• Elsaknewitwasimportanttobuildcreditsosheappliedforacreditcardthroughherfinancialinstitution.SheusedittobuyherfamilyairplaneticketsandtomakereservationsforGreatAmericaandotherthings.Elsaalwayspaidthebalanceinfulltomaintainhercreditandavoidpayingmoreinterest.

• Onceshehadaportionofhersavingsforthecar,Elsaputitina6‐monthCDbecausesheknewitwouldearnmoreinterest.

FOLLOWINGTHEMONEY:WHEREDOFEESANDDEPOSITSGO?

Whathappenstothe$10feeCarlapaysMoneyMarteachmonth?

• Theother$10endsupinBerwyn,PA—homeoftheDollarFinancialCorp,whichownsMoneyMart,LoanMartandmore.LoanMartistheirpaydaylender.

• TennesseeisthebirthplaceofpaydaylendingandisstillhometoCheckIntoCash,thethirdlargestpaydaylenderinthecountry.Itsfounder,W.AlanJones,isalongtimefriendofandcontributortoBobCorker,TennesseeSenatorandmemberoftheSenateBankingCommittee.

• CorkerwasresponsibleforsecuringanexemptionforpaydaylendersfromoversightoftheConsumerFinancialProtectionAgencyinthebillthatCommitteeChairSenatorDoddreleasedlastweek.

• Inshort,theserelativelynewcompanies(mostwerefoundedintheearly1990s,CashintoCheckwasestablishedin1993)usetheirprofitstobuypoliticalinfluenceandregulationexemptions.

Example:DifficultyGettingRateCapsforPaydayLoansPassed

• A36%ratecapforactive‐dutymembersofthemilitaryandtheirfamilieswaspassedin2006andwentintoeffectonOctober1,2007.Itwasaprovisionburiedinalargemilitarybill.TheDepartmentofDefensesoughttoregulatepaydaylenderratesformilitarypersonnelfordeploymentreasons.Highdebtcanmeanlossofsecurityclearanceordischarge.

• SenatorRichardJ.Durbin,DemocratofIllinoishasproposedextendingthiscaptoallborrowersin2008and2009.

• Currently12stateshave36%ratecaps,plusDC.InCalifornia,Lenoauthoredabillin2008thatdiedafter2weeks.In2009,billswerefocusedonmortgageissues.

WhatHappenstotheDepositsMadeatFinancialInstitutions?

WhathappenstoElsa’sdeposits?Atabank?AtaCU?

• Atabank,herdepositsarepooledwiththeentirebank’s,depositsandareinvestedinlargerenterprises—businesses,investments,maybelocally,butnotnecessarily.



• InaCU,Elsa’sdepositscirculateinlocaleconomy(ortheassociationmembership)—hermoneygetsloanedouttoanotherlocalpersontobuildtheircredit,theirbusiness,theirhome.

Whobenefits?

• Atabank,ifthebankdoeswell,thestockholdersbenefit.• AtaCU,iftheCUdoeswell,Elsagetsabetterreturnonhersavingsaccount

and/orlowerfees—becausesheisastockholder.

Whodecides?

• Atabank,itistheshareholdersorboardthatmakedecisions,notthecustomer.

• AtaCU,thememberselecttheboardofdirectors.Infact,Elsacouldrunfortheboard.Eachmemberhasinfluenceoverpoliciesandproductsoffered.



FinancialEducationResources

FinancialEducation:MissionSFCommunityFinancialCenter(415)2060846:Providesfinancialeducationforyouthandadults.Youth:YouthTrainersforEconomicPower(YTEP)providespeer‐to‐peerfinancialtrainingsforyouthgroupsaroundSanFrancisco.Adults:PathwaystoFinancialSecurity,providesone‐on‐onefinancialcounselingforpeopleinthecommunity.JUMAVentures(415)3710727:Engagesyouthinsocialenterprises,collegepreparation,andfinancialliteracywiththeopportunitytoreceivematchedsavingsscholarships.EARN–(415)2173660:Offersfinancialtrainingandsavingsprograms.CurriculumsandResources:CaliforniaJumpStart:Aimistoidentifyhigh‐qualitypersonalfinancematerialsforeducationaluse.Theclearinghouseisadatabaseofpersonalfinanceresourcesavailablefromavarietyofeducationproviderssuchasgovernment,businessandnon‐profitorganizations.http://www.jumpstart.orgAmericanPromiseAlliance:Curriculumfocusedonunderstandingfinancialterms,providesyouthanunderstandinglargerscaleimpactoftheirpersonalspending.http://www.americaspromise.org/financialresponsibilityMoneyTalksforTeens:Providesresourcesforteenstobecomemorefiscallyresponsible,including:appropriatebankingandsavingpractices,propercredituse,andemploymenttips.http://moneytalks4teens.ucdavis.edu/NationalEndowmentforFinancialEducation:Practicalresourcesandmaterialsspeciallycreatedwitheducatorsandfacilitatorsinmind.http://www.nefe.org/HighSchoolFinancialPlanningProgram:Thiscurriculumincludesstudentmanuals,aninstructor’sguide,andanumberofwebpagesthatofferalarge,continuallygrowingcollectionofresources,articles,andfinancialtoolsforteachers,students,andparents.http://hsfpp.nefe.org/home/UnitedforaFairEconomy:TheselinkswilltakeyoutoUFEworkshopmaterialsavailableforfreedownloadaswellasextendeddescriptionsandadditionalresources.Youmayalsoorderhardcopiesofallworkshopmaterials,includingfull‐sizeflipcharts.http://www.faireconomy.org/







MonthlyBudget

MonthlyTakeHomeIncome SecuredDebts(MonthlyPayments)

Salary/Wages/Business Draw Rent

Salary or Wages (Spouse/Partner) 1st Mortgage

Social Sercurity 2nd Mortgage

Pentions/Retirement Land Lease (Trailer Park, other)

Interest on Account Student Loans

Alimony/Child Support Auto Loans

Real Estate Rent (income) Recreation (Boat, ATV, etc)

Investment Dividends Past Due Taxes

Unemployment/Food Stamps Other Debt

Other Other Debt

TotalTakeHomeIncome Other Debt

TotalSecuredDebt

Monthly Living Expenses

Alimony/ Child Support (outgoing) Unsecured Debt

Auto Gas and Repair Credit Card 1

Auto Insurance Credit Card 2

Cable TV/ Satellite Fees Credit Card 3

Charitable Contributions Credit Card 4

Child Care Credit Card 5

Children's Activites Personal Loan 1

Clothing Maintenance (Laundry/ Dry Clean) Personal Loan 2

Clothing Purchases Medical Bill

Electric and Gas Bills Other

Food (In-home/ Groceries) Other

Food (Out of home) Total Unsecured Debt

Water Bill



Health and Dental Insurance

Homeowner/ Condo fees Summary

Homeowners/ Renters Insurance Total Take Home (Income)

Household Items Total Living Expenses (-)

Life and Disability Insurance Total Secured Debt Payment (-)

Personal Care Total Unsecured Debt Payment (-)

Prescriptions Disposable Income

Internet Access

Property Service and Maintenance

Security Service

Subscriptions

Telephone

Cell Phone

Tuition and School Supplies

Pay Yourself First

Other Expenses

Other Expenses

Other Expenses

Total Monthly Living Expenses

Documents

Learning Circle 8: Financial Literacy · 2010-06-08 · the previous flip chart, facilitator writes SKILLS across the top. Facilitator writes “Savings” then crosses it out.) •