DAVE RAMSEY

Copyright © 2011 by Lampo Licensing, LLC

Notice of RightsAll rights reserved. No part of this publication (print or video) may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without written permission from the publisher.

Selected portions taken from Dave Ramsey’s The Total Money Makeover. © 2003, 2007, 2009 by David L. Ramsey III, published by Thomas Nelson. Used by permission.

PermissionsRequests for permission to make copies of any part of the work should be mailed to:

Permissions - Curriculum DepartmentThe Lampo Group, Inc.1749 Mallory LaneBrentwood, TN 37027

Note to the ReaderThis publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. If legal advice or other expert assistance is required, the service of a competent professional person should be sought.

1 2 3 4 5 6 7 8 9 10 11

Printed and bound in the United States of America

978-1-936948-00-0

Notice of Copyright Protection

It is unlawful to copy or reproduce any part of the working textbook

without the written consent of the publisher.

2 F O U N D A T I O N S I N P E R S O N A L F I N A N C E C O L L E G E E D I T I O N

AcknowledgmentsThe Lampo Group, Inc. would like to give special thanks to the following

people for their assistance with this project. This input was essential for

creating a financial literacy curriculum that meets the needs of college

students and empowers them in the area of personal finance.

Curriculum DevelopmentCheryl Brehm

EditingAllen HarrisAmber DillonDana OwenDarcie ClemenGrace ClausingJennifer GingerichJim KingKajsa WhiteMichelle GroomsRachel CruzeRichard SpeightRobert Bruce

Video and Print DevelopmentBobby MarkoBrian Williams Cam CorneliusCollin FatkeDaniel BellDave OglesbyDavid WilkinsonDiana KeyHannah CookJason MillerJennifer SievertsenJessalynn WhyteJessica SloanJon AcuffJon MeltonJosh HancockKatie CrenshawMegan Hill

Website DevelopmentAaron FleckensteinAndrew KallemeynBrett KozimorCorey RobertsonDavid LeedsDino EvangelistaJon FoussKC JonesKelli Hansbauer Kevin PowellLuke LeFevrePhil ThomasScott Chaney

Academic Curriculum Review CommitteeAdele Harrison PhDAssociate Professor of Finance and Accounting Azusa Pacific University, California

Bob Garner MBAAssistant Professor of Business Flager College, Florida

Brad Barnett MS, AFCSenior Associate Director of Financial Aid James Madison University, Virginia

Jeff Guernsey MSAssistant Professor of Finance Cedarville University, Ohio

Kent Ford MAECon

Professor of Economics Onondaga Community College, New York

Robert Ford DMin

Professor of Business Kentucky Christian University, Kentucky

Roger Bingham MBAVice Chancellor for Student Affairs Ivy Tech Community College, Indiana

Ron Beckman MBAProfessor of Business Arkansas Community College, Arkansas

Steve Neilsen MED

Director of Student Retention California Baptist University, California

Professional ContributorsDave RamseyFinancial Expert, Best-selling Author, and National Radio Personality

Jeffrey Zander CiCPresident Brokerage Insurance Agency

Jeffrey Dobyns CFP®, CLU, ChFCPresident and Founding Partner Investment Agency

Chris Hogan FMC, LCTDirector, Wealth Coach Program Dave Ramsey’s Team

Lisa Barber Personal Financial Coach Dave Ramsey’s Team

Eddie WhiteDirector of Financial Aid Higher Education Institution

Kim YorkVice President of Marketing Credit Union

Terry DeSelms CRS, GRiOwner Real Estate Agency

Jennifer Sievertsen MBAChief Marketing Officer Dave Ramsey’s Team

Rick PerryDirector of HR Dave Ramsey’s Team

L.H. “Mike” Hardwick, IIIFounder, Owner and President Mortgage Company

Norman D. RollinsAttorney, Owner and Partner Private Law Firm

Chris LoCurtoVice President Dave Ramsey’s Team

Jon AcuffAuthor and Speaker Dave Ramsey’s Team

I N T R O D U C T I O N 3

Dave Ramsey America’s trusted voice on money and business, Dave Ramsey is a personal money-management expert and extremely popular national radio personality. His three New York Times best-selling books—Financial Peace, More Than Enough and The Total Money Makeover—have sold more than 6 million copies combined.

In 1992, Ramsey founded The Lampo Group, Inc. to provide financial counseling to anyone who wants to better understand the principles of proper money manage-ment. Twenty years later, the company has grown from a card table in his living room to more than 300 team members and has been voted one of the Best Places To Work in Nashville five times in a row. He runs a multi-million dollar company with a nationally recognized brand, but he defines success by the number of lives changed through his message of hope.

Ramsey offers that life-changing message as host of a nationally syndicated radio program, The Dave Ramsey Show, which is heard by 4.5 million listeners each week on more than 500 radio stations throughout the United States.

Rachel CruzeGrowing up as a Ramsey kid, Rachel learned the basic principles of money at an early age. Dave and Sharon Ramsey taught her how to save, spend and give—valuable lessons she uses in everyday life.

Today, she’s passing on those principles to others in her generation. Rachel is an experienced communicator who has been speaking to audiences as large as 10,000 people since she was 15. Since joining Dave’s team full time in 2010, she has trav-eled the country speaking about the dangers of debt at high schools, colleges and youth conferences. She shows teens and young adults how to budget their money, save intentionally for things like cars and college, and give to help others in need.

Rachel has a B.A. in Communication Studies from the University of Tennessee. She lives with her husband, Winston, in Franklin, Tennessee.

4 F O U N D A T I O N S I N P E R S O N A L F I N A N C E C O L L E G E E D I T I O N

Curriculum OverviewDVD Library › Exposes students to the knowl-

edge of 14 field experts covering topics from investments and insurance to marketing and banking

› Incorporates humor and relevant application, taking in-depth per-sonal finance topics to a practical level for college students

› Averages 80 minutes of video material per chapter, broken into segments 10–20 minutes long

Working Textbook › Excerpts from Dave Ramsey’s

New York Times best-seller, The Total Money Makeover and Dave Ramsey’s Complete Guide to Money

› Excerpts from Jon Acuff’s book, Gazelles, Baby Steps And 37 Other Things Dave Ramsey Taught Me About Debt

› Corresponding notes for video material

› Objectives › Key terms › Discussion questions › Graphs › Chapter reviews › Money facts › Case studies › Glossary

Student Website: www.foundationsU.com › Budgeting tools › “Ask Dave” radio calls › Various calculators (investment,

mortgage, retirement, cost of living, etc.)

› Articles relating to college life › Goal Tracker tool

Instructor’s Guide › Lesson plans for up to 75

contact hours › Sample syllabus › Chapter assessments including

quizzes and tests › Three to five activities per chapter

(online, individual and group) › Three case studies per chapter › Answer keys › Blank financial forms

I N T R O D U C T I O N 5

U N I T 1 : M A S T E R I N G T H E B A S I C S

Chapter 1: Savings

Chapter 2: Budgets

Chapter 3: Debt

Chapter 4: College Student Essentials

Chapter 5: Family, Friends and Philanthropy

U N I T 2 : D E V E L O P I N G Y O U R S K I L L S

Chapter 6: Consumer Awareness

Chapter 7: Bargains

Chapter 8: Credit Bureaus

Chapter 9: Insurance

U N I T 3 : C O N S I D E R I N G T H E F U T U R E

Chapter 10: Investments

Chapter 11: Retirement and Savings Plans

Chapter 12: Real Estate

S T U D E N T R E S O U R C E S

Financial Forms

Glossary

8

13

31

65

89

117

133

135

151

167

191

211

213

231

253

273

275

303

Table of Contents

I N T R O D U C T I O N 7

U N I T 1

M A S T E R I N G T H E B A S I C S

1: Savings

2: Budgets

3: Debt

4: College Student Essentials

5: Family, Friends and Philanthropy

C H A P T E R S

1 – 5

8 F O U N D A T I O N S I N P E R S O N A L F I N A N C E C O L L E G E E D I T I O N

IntroductionThe reading excerpt below is taken

from the New York Times best-selling

book, The Total Money Makeover, by

Dave Ramsey. With more than 17 years

of experience counseling people on how

to manage their money, Dave knows

what it takes to get control of your cash.

He designed the seven Baby Steps as

a way to save for emergencies, get rid

of debt, and plan for the future. More than 20 years ago, my wife, Sharon, and I went broke. We lost everything due to my stupidity in handling money, or not handling it, as the case may be. Hitting bottom and hitting it hard was the worst thing that ever happened to me and the best thing that ever happened to me.

We started with nothing, but by the time I was twenty-six years old, we held real estate worth over $4 million. I was good at real estate, but I was better at borrowing money. Even though I had become a millionaire, I had built a house of cards. The short version of the story is that we went through financial hell and lost everything over a three-year period of time. We were sued, foreclosed on, and, finally, with a brand-new baby and a toddler, we were bankrupt. Scared doesn’t begin to cover it. Crushed comes close, but we held on to each other and decided we needed a change.

So after losing everything, I went on a quest, a quest to find out how money really works, how I could get control of it, and how I could have confidence in handling it. I read everything I could get my hands on. I interviewed older rich people, people who made money and kept it. That quest led to a really, really uncomfortable place—my mirror. I came to realize that my money problems, worries, and shortages largely began and ended with the person in my mirror. I realized also that if I could learn to manage the character I shaved with every morning, I could win at money. That quest, the one that ended with me staring at myself in the mirror, led me on a new journey over the last fifteen years: the journey of helping others, literally millions of others, take that same quest to the mirror.1

The stuff we teach in this class represents everything I’ve learned about money since then, from savings and debt to insurance and investing. And I’m excited that my daughter, Rachel, has joined me to get this information to you before you graduate college. Trust me, knowing this stuff then would have saved me a whole lot of trouble!

Together, Rachel and I will teach you practical, relevant skills. Our message is different. We simply challenge the way you view money and empower you to graduate on a solid foundation. I think we can all agree this class is needed. The numbers speak for themselves:

› Nearly 70 percent of college students believe that their colleges and universities need to increase financial literacy initiatives and expand programs that teach students the skills they need to successfully manage their money.2

› Only 46.4 percent of college students reported that they had adequate financial resources to finish college.3

› 84 percent of college students have at least one credit card. Sadly, 68 percent of college students have charged items to their credit cards knowing they didn’t have the money to pay the bill.4

› The average student loan debt has now surpassed $20,000 for an undergraduate degree—a figure that excludes popular “private” loans that may have much higher interest rates.5

During this class, we’ll cover a number of topics on the videos. As you watch, follow along by filling in the blanks listed in your textbook. The answers to the fill-ins always appear on the left side of the video screen.

The videos include a mixture of Dave teaching on stage and an-swering student questions, Rachel emphasizing information that is specific to young adults, experts in the financial profession being interviewed, college students answering common financial questions, and various other interviews.

1. The Total Money Makeover, pgs 2–42. Higher One Survey, 20103. Noel Levitz, 20094. Sallie Mae, 20095. U.S. Dept. of Education National Center for Education Statistics, 2007

1U N I T

I N T R O D U C T I O N 9

Topics Presented in the VideosU NI T 1: M A S T ER IN G T HE B A SIC S

1. Savings

› Describe emergencies that can happen during college and prepare a financial plan for them.

› Explain the three basic reasons for saving money (emergency fund, purchases and wealth building).

2. Budgets

› Design and apply a zero-based budget based on students’ income and expenses.

› List ways to earn money while attending college. › Calculate tax withdrawals and fill out tax forms.

3. Debt

› Describe reasons for avoiding debt. › Demonstrate how to reduce debt by applying the debt

snowball.

4. College Student Essentials

› Summarize how to apply for financial aid. › Explain effective job-search tools, such as cover letters,

résumés and interviews.

5. Family, Friends and Philanthropy

› Compare different personality traits in relation to money management.

› Integrate healthy communication about money with parents, roommates and others.

U NI T 2: DE V EL O P IN G YO U R SK IL L S

6. Consumer Awareness

› Identify marketing strategies that encourage college students to go into debt.

› Summarize and apply the five basic rules for making large purchases.

7. Bargains

› List the seven guidelines of negotiation. › Discuss ways to save money while attending college.

8. Credit Bureaus

› Describe the value of credit reports and credit scores. › Communicate effectively with credit bureaus and other

agencies about collection issues.

9. Insurance

› Identify the types of insurance coverage needed during and after college.

› Explain why insurance is an essential part of a healthy financial plan.

1U N I T

10 F O U N D A T I O N S I N P E R S O N A L F I N A N C E C O L L E G E E D I T I O N

U NI T 3: C O N SIDER IN G T HE F U T U R E

10. Investments

› Compare and contrast various types of investments. › Defi ne the relationship between diversifi cation and risk.

11. Retirement and Savings Plans

› Classify various types of retirement savings options.› Describe savings plans for a child's college fund.

12. Real Estate

› Explain helpful tips for buying and selling homes and properties.

› Compare different types of mortgages.

Discussion Questions: Introduction

› When you think about the phrase "managing money," what thoughts and feelings arise? Are they positive or negative? How do your pre-existing thoughts and feelings about money affect your ability to learn?

› "If you will live like no one else now, later you can LIVE like no one else." What do you think this means? Is it worth the effort? Why/why not?

This is one of the most

important classes you

will ever take. We’re

excited you are joining

us. Now let’s begin!

Directions: Please watch the Introduction

video clip and then discuss

the questions below.

I N T R O D U C T I O N 11