NEFE® High School Financial Planning Program (HSFPP) Fahzy Abdul-Rahman Family Resource Management Extension Specialist New Mexico State University HSFPP

NEFE High School Financial Planning Program (HSFPP) Fahzy Abdul-Rahman Family Resource Management Extension Specialist New Mexico State University HSFPP is sponsored by National Endowment for Financial Education (NEFE), Copyright 2007

NMSU Extension Land-grant university mandate teaching, research, & extension. Provides practical, research-based knowledge and programs to improve their quality of life http://extension.nmsu.edu/ http://extension.nmsu.edu/ County extension offices in each county

HS Financial Literacy in NM Governor Bill Richardson has approved financial literacy as a possible subject in fulfilling math high school credit requirement in March 2010. one of the four mathematics units required for high school graduation 46 percent are functionally illiterate Financial functionally illiterate?

Why NEFEs HSFPP? The winner of two national awards : The Institute for Financial Literacy's EIFLE (Excellence in Financial Literacy Education) Award for Institutional Book of the Year Award in the General Children Category was awarded to the HSFPP. The Association for Financial Counseling, Planning and Education also gave its Outstanding Financial Education Program of the Year award to the NEFE HSFPP.

Why NEFEs HSFPP? Complete, money management curriculum Over 6,500,000 student guides sent out to an estimated 200,000 classrooms Tested Teacher Training Program Materials are free Online resources available: For parents For students: Games, quizzes

Online Training Presentation Visuals Data Disk Student Guide Instructor Manual SpanishVersion Certificate of CompletionTake-HomeBrochure Program Materials 6

Modules/Chapters

Student Guide vs. Instructor's Manual

Overview for Instructor Instructors Manual is very detailed Instructors Manual Training provided by NEFE representative In NM, Family Resource Management Extension Specialist Flexible: Focus on selected topics/chapters Supplemental materials suggestions

Unit 1Unit 1 Financial Plan Examine the value of having a process of planning how to use money Create personal financial SMART goals Analyze how money is received and used Use the decision-making process to create a financial plan Identify guidelines to implement a personal financial plan Monitor and modify a personal financial plan

Sample Wants and Needs NEEDS Food for breakfast Food for breakfast Clothes for school Clothes for school Transportation to school or work Transportation to school or workWANTS An iPOD An iPOD DVD Players DVD Players Cell Phone Cell Phone Hot Car Hot Car Don't Buy Stuff on Hulu: http://www.hulu.com/watch/1389

The Five-Step Financial Planning Process 1-B

SMART Goals S pecific.. M easurable T ime-Limited.. R ealistic. A ttainable.. Pay for lodging, transportation, meals for a 5-day trip to Washington, D.C. $300 through fundraising, $50 from birthday money, save $25 a week. If I stick to my plan, Ill have the money when I need it. I still have enough money to live on while I work toward this goal. I need to have all the money by 6 months from now. Step 1: Set up SMART Goals

Unit 2 Unit 2 Budgeting Examine spending habits Benefits of having a spending plan, or budget Identify various sources of income Identify types of expenses Importance of saving (paying yourself first) Constructing a budget [e.g. here]here Record keeping involved with budgeting How a budget will change throughout your life

NEFE High School Financial Planning Program Unit Two Budgeting: Making the Most of Your Money ?

NEFE High School Financial Planning Program Unit Two Budgeting: Making the Most of Your Money

Unit 3Unit 3 Investing A.Differentiate between saving and investing B.Assess the time value of money C.Compare investment options D.Compare the relationship between risks and returns related to saving and investments E.Recommend ways to integrate savings and investing strategies into financial planning

Investing Weekly at 5% Interest 3-B Amount Saved Per Week Value After 10 Years $ 7.00 $ 14.00 $ 21.00 $ 28.00 $ 35.00 $ 4,720 $ 9,440 $ 14,160 $ 18,880 $ 23,600 1

Financial Planning Pyramid Penny Stock Commo- dities Collectibles Speculative Stock / Bonds / Mutual Funds Real Estate Blue-Chip Common Stock Growth Mutual Funds High-Grade Convertible Bonds High-Grade Preferred Stock Balanced Mutual Funds High-Grade Corporate Bonds or Mutual Funds High-Grade Municipal Bonds or Mutual Funds Money Market Accounts or Mutual Funds Certificates of Deposit U.S. Savings Bonds Insured Savings / Checking Accounts Treasury Issues Highest Risk Highest Earnings Lower Risk Lower Earnings 3-J

Unit 4Unit 4 Good Debt, Bad Debt Explain what credit is Compare the advantages and disadvantages of using credit Outline the process of applying for credit Explain what a credit history is and why it is important Explain how to manage credit responsibly Explore the consequences of excessive debt and how to correct it Determine what to do in the event of inaccurate reporting

Unit 5Unit 5 Your Money Examine the various types of financial services providers, especially credit union Explain how a savings account works Practice using a checking account and debit card Explain how a credit card is used to make purchases Explore the features of automated financial services Respond to situations involving identity theft and deceptive practices

Savings Deposit Exercise 5-C, Page 62 Todays date goes here Print Your Name Here Print Your Address Here Sign Your Name Here 33 33 3 33 x 12509 37525 7500 425341 2 3 4 5 10 8 7 6 11 500349 Click the numbers

Todays date Your Name Your Address Here 54 6- 6 78 x 10000 10000 Click Here to Go to the Next Slide 011-32

Check Details 12345987610 This is the Routing Number for your bank (used for electronic transfers of funds from your account to the payees account) This is your Account Number. (Note that sometimes these two numbers are the reverse of what is shown here.) This is just your check number again (see above right). Here is where you write the name of the party you are writing your check to (the payee). Be sure to write or print legibly! On the lower line, write out the amount like this. Legibly print the amount of money this check is for. Enter the date you write each check. Place to add any information you want to related to this check. Put your personal signature here. Make sure your personal information on the check is correct. Here is the number of this Check. 11 January 15, 2009 Best Foods Supermarket 25. 65 Twenty-five and 65/100 - - - - - - - - - - - - - - - - - - - - - - - - Snacks for Party Click the numbers

1001/15 Fine Foods Groceries Deposit Auto1/11 1/11 23 11 Deposit to Checking Charge for Personalized Checks 200 00 20 00 23 11 200 00 156 89 156 89 Keep a Record Click Here 20 00 180 00 180 00WD123

Does It Balance? Reconciling your checking account statements Why reconciling is important Lets you check for mistakes and checks you wrote but did not enter. Gives you a chance to subtract other charges that the financial institution may have added. Lets you add any interest that your checking account may have earned. Not all the checks you have written will always be shown, because they may not have been cleared by your bank or credit union. Uncleared checks will show up on your next statement.

Debit Cards vs. Debit Cards HOW TO USE A DEBIT CARD How to Use The Difference Enter your PIN number Enter the amount of cash back, if desired Signature

The Risks of Identity Theft IDENTITY THEFT VICTIMS COULD: Have any and all of their financial accounts invaded and emptied.Have any and all of their financial accounts invaded and emptied. Be asked to repay debts they did not incur.Be asked to repay debts they did not incur. Lose job opportunities.Lose job opportunities. Lose their good credit rating.Lose their good credit rating. Be refused loans.Be refused loans. Be sued for things they have no part of.Be sued for things they have no part of. Even be arrested for crimes they didnt commit.Even be arrested for crimes they didnt commit.

1 SCAMMED! The news of my father death, and my uncle,s involvement in an air crash in december 2002 while on a business trip to benin republic caused my mother heartfailure and other related complications of which she later died in the hospital After we have spent a lot of money on her. Before our mother died, she told us that our father deposited some money which he made from diamond sales and contracts at this bank here in Ivory Coast and that we should pray and find a trust worthy foreign business partner who would help us to transfer and invest this money in profitable business venture overseas.She told us to do this quickly so that we can leave Ivory Coast and, then settle down abroad. She gave us the bank document to prove the deposit and then told us that my father used my name as the next of kin and beneficiary to the money in the bank in the event of his death. If you are willing to assist us, please let us know immediately so that you will arrange the transfer of the money to your account with the bank. Whats Going on Here? Whats Going on Here? 2

Unit 6Unit 6 Insurance Identify ways to manage risk Describe how insurance is used to protect against financial loss Explain the features and processes related to automobile insurance Examine how insurance needs vary from person to person because of lifestyle and life situation Assess how insurance fits into your financial planning

Avoid it Reduce it Share it Managing the Possibility of Loss Accept it

Factors Affecting Automobile Insurance Costs Your age Make of car Marital status Do you take the car to work? If youre a good student Gender Where you live How much you use the car Credit rating Drivers education Driving record Type of car 6-F

Unit 7Unit 7 Your Career The relationship between career choice and earning power How education and training affect career choices and earning potential The value and costs of career preparation How employee benefits enhance earning potential Factors that affect earning potential and financial planning Pros and cons of working for yourself versus working for others.

Relationship of Career and Earning Power

Key Employee Skills Basic Skills Basic Skills Interpersonal Skills Information Management Information Management Skills Systems Skills Technology Skills Technology Skills Thinking Skills Thinking Skills Personal Skills Personal Skills Resource Management Resource Management Skills

How Much is Class Worth? NEFE High School Financial Planning Program Some high school, no degree High school diploma, or equivalent Associate Degree Professional Degree Doctoral Degree Masters Degree Bachelors Degree Some college, no degree Millions of 2006 dollars Worklife earnings estimates by highest level of educational attainment Source, US Census Bureau, current population survey, educational attainment in the US. 2005 1 1.2 1.5 1.6 2.5 2.1 3.4 4.4

Typical Employee Benefits Hospitalization, Medical, and Disability Insurance Dental and Vision Insurance Accidental Death Insurance Sick Leave Paid Vacation Time and Holidays Parental Leave 1 of 2

Typical Employee Benefits Workers Compensation Insurance Life Insurance Retirement Benefits Retirement Savings Plans Employee Assistance Programs 2 of 2

Factors that Can Affect Your Earning Potential Business Downturn Being Laid Off Life-Changing Situations Changing Careers Promotions Relocation Business Upturn Additional Training What other factors can you think of? A New Job Being Fired Advanced Degrees

Web Site for Teachers All instructional materials All the best from 2001 & 1995 HSFPP Online Ordering Capability Links to Curriculum Resources on the Net Knowledge Sharing Online Training Teachers

Resources Including Suppliments

Supplement Materials Banking Practical: Fake accounts, on-line banking, debit card use, e-payment, writing check. Credit union preferred Junior Achievement (JA) materials Junior Achievement Games Books

Web Site for Students Articles on Financial Topics HSFPP Related Content and Tools Financial Calculators Games NTRBOnline.com Content Monthly Polls Links to Web resources about money Students

Web Site for Parents Tools for Parents to Help Their Kids Financial Ed Tools for Parents Themselves Links Web Resources HSFPP Curriculum Information Information on Financial Education How to get the HSFPP Parents

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NEFE® High School Financial Planning Program (HSFPP) Fahzy Abdul-Rahman Family Resource Management Extension Specialist New Mexico State University HSFPP