financial literacy
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FinancialTRANSCRIPT
Federal Reserve Board Chairman Ben Bernanke speech link
The current financial crisis as it relates personal finance
Jump$tart Coalition National K-12 Standards for Personal Finance◦ 20 pages long!◦ Glossary of financial terms
Rule #1 Never spend more than you make or “live below your means”
Save at least 10% of income for long-term savings
Invest in the worldwide economy
Establish an emergency fund (3-6 months of monthly expenses) for unforeseen expenses
Insure your assets, especially your health
Financing college or vocational training◦ Free Application for Federal Student Aid (FAFSA)◦ Applying for scholarships (Fastweb.org)
Choosing your career carefully
Establishing checking and savings accounts◦ Bank of America, Charles Schwab
Establishing credit and your credit report◦ Annualcreditreport.com Bankrate.com
The perils of credit cards…”El Diablo!”
Health Insurance for Students◦ Major medical-Need $3-5 million in coverage◦ On campus student health centers
Purchasing a car, auto insurance Minimizing expenses in college Renting an apartment Retirement Plans
◦ Traditional Pensions◦ Roth IRA’s 401k’s, Mutual Funds
Taxes, Purchasing a Home
Kiplinger Magazine◦ “Starting Out”◦ Erin Burt◦ Kiplinger Quizzes◦ Best of List
Kiplinger magazine is hands down the best online personal finance magazine◦ Search any financial topic within the website
Students write reviews of personal finance articles on a daily basis
Investing Classroom◦ 172 lessons about the capital markets
Stocks Bonds Mutual funds Portfolios (asset allocation)
◦ Quizzes at the end of each chapter if registered at site (free of charge)
Curriculum runs from very basic to MBA level
“Instant X-ray”◦ This tool from Morningstar will diagnose any
portfolio and display its asset allocation or mix of investments
◦ A VERY valuable tool that is free of charge
Graphical results of asset allocation◦ Expenses◦ Industry mix◦ Much more portfolio data
Worldwide Business News◦ Current events◦ More than just business news◦ Much content is free
Personal Finance Section of WSJ◦ “Yoder & Son” column- A WSJ columnist and his son
discuss personal finances, very relevant to high school students
The Wall Street Journal Classroom Edition◦ Geared toward high school students◦ College and Careers, Personal finance, Technology◦ Most content is free
Math that matters…The miracle of compounding interest
Rarely taught in school The rule of 72
◦ Divide a rate of return into 72 to find out how long it takes a lump sum to double
Online personal finance calculators Microsoft Excel’s Future Value (FV) function
◦ Students also use excel to create personal financial statements-Balance Sheet & Income Statement
The Stock Market Game◦ Students teams manage a hypothetical $100,000
portfolio and compete against other teams in California
◦ Game operates like an actual brokerage account◦ Student learn about the capital markets and how
to research investments.◦ Students certainly learned about the riskiness of
stocks in the short term in the last game! “Financial Football” from
practicalmoneyskills.com
Online quiz sponsored by the U.S. Treasury Department to promote financial literacy among high school students
35 multiple choice questions
$1000 college scholarships awarded to students from Charles Schwab if all questions were answered correctly!
Certificates and medals awarded to top performing students
www.finance.yahoo.com www.marketwatch.com www.smartmoney.com www.zillow.com www.financefreak.com www.moneyinstructor.com www.fool.com www.vanguard.com www.jumpstart.org www.nefe.org www.money.aol.com www.morningstar.com www.kiplinger.com www.stockmarketgame.org www.ehealthinsurance.com
www.collegeboard.com www.finaid.org www.californiacolleges.edu www.brokescholar.com www.savingforcollege.com www.scholarships.com www.fastweb.com www.latinocollegedollars.org www.scholarshipsforhispanics.org www.cavhs.org www.uscollegesearch.org www.fafsa.ed.gov
Thank you!