Financial Fitness for LifeTraining ConferenceBecoming a Smart Money Manager University of Illinois at Urbana-Champaign College of Agricultural, Consumer and Environmental Sciences United States Department of Agriculture Local Extension Councils Cooperating University of Illinois Extension provides equal opportunities in programs and employment.
Funding for this workshop is provided by: National Council on Economic Education US Dept of Education University of Illinois Extension
Instructors • Dr. Angela Lyons, Assistant Professor, University of Illinois Urbana-Champaign (217) 244-2612; firstname.lastname@example.org • Debra Bartman, Extension Educator, Quad Cities Center (309) 792-2500 (x217); email@example.com • Patricia Hildebrand, Extension Educator, Effingham Extension Center (217) 347-5126; firstname.lastname@example.org
Objectives • Introduce: (1) Financial Fitness for Life (2) Saving and Investing (3) Budgeting (4) Credit Reports and Credit Scores (5) NEFE HSFPP • Experience activities to use in the classroom • Answer questions about curriculum and other resources
You will receive… • Curricula with lessons and activities to use in the classroom • 6 CPDU’s • Network of colleagues to share experiences • Resources available at U of I Extension
Financial Fitness for Life Overview: • Teacher Guide • Student Workouts • Parents’ Guide • CD-Rom and web links
5 Themes and 22 Lessons: • The Economic Way of Thinking • Earning Income • Saving • Spending and Using Credit • Money Management
Each lesson includes: • Fitness Focus (lesson description and objectives) • Workout (warm-up, exercise, cool down) • Visuals • Student Exercises • Family Activities
Meets national and most state content standards in 4 critical areas: • Economics • Language Arts • Mathematics • Personal Finance
FFFL Part 1(Lessons 1, 3, 8, 10, and 14) How to Really Be a Millionaire
The Millionaire Game The Rules: • For each statement, answer “TRUE” or “FALSE.” • For each correct answer, give yourself 5 points. • For each incorrect answer, take away 5 points. • For any 5 statements, you may use your “Millionaire” card. If you answer correctly, you receive 10 points. If not, you lose 10 points.
Let’s Get Started…. Question 1: Most millionaires are college graduates.
Answer 1: TRUE
Question 2: Most millionaires work fewer than 40 hours a week.
Answer 2: FALSE
Question 3: More than half of all millionaires never received money from a trust fund or estate.
Answer 3: TRUE
Question 4: More millionaires have American Express Gold Cards than Sears cards.
Answer 4: FALSE
Question 5: More millionaires drive Fords than Cadillacs.
Answer 5: TRUE
Question 6: Most millionaires work in glamorous jobs, such as sports, entertainment, or high tech.
Answer 6: FALSE
Question 7: Most millionaires work for big Fortune 500 companies.
Answer 7: FALSE
Question 8: Many poor people become millionaires by winning the lottery.
Answer 8: FALSE
Question 9: College graduates earn about 65% more than high school graduates earn.
Answer 9: TRUE
Question 10: If an average 18-year-old high school graduate spends as much as an average high school dropout until both are 67 years old, but the high school graduate invests the difference in his or her earnings at 8% annual interest, the high school graduate would have $5,500,000.
Answer 10: TRUE
Question 11: Day traders usually beat the stock market and many of them become millionaires.
Answer 11: FALSE
Question 12: If you want to be a millionaire, avoid the risky stock market.
Answer 12: FALSE
Question 13: At age 18, you decide not to smoke and save $1.50 a day. You invest this $1.50 a day at 8% annual interest until you are 67. At age 67, your savings from not smoking are almost $300,000.
Answer 13: TRUE
Question 14: If you save $2,000 a year from age 22 to age 65 at 8% annual interest, your savings will be over $700,000 at age 65.
Answer 14: TRUE
Question 15: Single people are more often millionaires than married people.
Answer 15: FALSE
Lesson 8: Spending vs. Saving The road to wealth…. begins with saving,then investing.
Managing money well means taking things one step at a time.
The factors that affect how much savings grow are: • Time The earlier or longer you save, the more savings you will have. • Investment Size The more you save each year from your income, the more savings you will have. • Rate of Return The higher the interest rate or rate of return, the more savings you will have.
Exercise 8.2A Tale of Two Savers Time Value of Money The earlier you save, the more $$’s you will have.
Cool Million calculator: www.myfico.com/CreditEducation/Calculators/Millionaire.aspx
Other Calculators: Mortgage Auto Loan Debit and Credit Cards Saving Personal Finance Investment Retirement
Exercise 8.3Why It Pays to Save Early and Often Rule of 72: Or, how long it takes for savings to grow to double your money Divide 72 by the interest rate. Example:72 6% 12 years