Helping young people learn to think, choose, and make better
economic and financial choices in a global economy
Laura Ewing
President/CEO
1801 Allen Parkway,
Houston, TX 77019
P: 713.655.1650
F: 713.655.1655
laura@economicstexas.org
Cindy Manzano
Director of Smarter Texas
1801 Allen Parkway,
Houston, TX 77019
C: 713.503.5338
F: 713.655.1655
cindy@economicstexas.org
www.economicstexas.org
www.smartertexas.org
1
Financial Fitness For Life
– Spiraled Curriculum
• Kindergarten – Grade 2
• Grades 3 – 5
• Grades 6 – 8
• Grades 9 – 12
2
• Free lessons for grades 2-8
– Coming June 2014: Lessons for grades 2-3
funded by
– Lessons for grades 4-6 funded by
– Lessons for grades 7-8 funded by
– www.smartertexas.org under Resource tab
4
St. Louis Federal Reserve
5
The TCEE programs are made possible by the following TCEE partners.
EnviroChem
Services, Inc.
John Anderson
Trout
Foundation
copyDR.
Less B. Fox
RBC Wealth Management
Personal Financial Literacy is making
thoughtful, well-informed decisions
about important aspects of finances.
Why do we need it?
7
Financial Industry Regulatory Authority in 2012:
• 39% of individuals in Texas used a form of non-bank borrowing,
i.e. an auto title loan, pay day loan, pawn shop loan, or other
high interest uneconomical source of debt
• 54% of individuals in Texas broke even or spent more than their
annual income
• 57% of individuals in Texas did not have enough money saved
to cover expenses for three months
• 67% of individuals in Texas scored 60% or less on a financial
knowledge test, which comprised of questions regarding basic
economics and finance concepts encountered in everyday life
Nationwide Financial Capability Study
8
Student Loan Debt
– Average student loan debt
• 2010 – $24,000
• 2011 – $25,250
• 2012 –$33,000
– Total student loan debt:
• 2010 – 850 billion dollars
• 2012 – over 1 trillion dollars
9
2013 Student Loan Debt as Reported by Forbes
– The total outstanding student loan balance is $1.2
trillion.
– Reasons for rising student debt:
• Rising cost of education
• Students with little to no credit history are being approved
for thousands of dollars
• Students don’t understand the terms of getting a loan
• Students did not save or plan for the cost of college
– After graduation:
•
•
•
•
•
Loan debt exceeds annual salary
Many can’t find a job
Graduates are delaying buying a home or car
Unable to start a business
Unable to save for the future
10
. . . then why get a higher education?
– The demand for higher education in the job
market is increasing.
– The potential to earn more increases as the level
of education increases.
– The percent of unemployment decreases as
educational attainment increases.
Higher education is still the best investment in your
future.
11
TCEE: Grade 5, Lesson 1
The Case of the Disappearing Paycheck
12
TCEE created lesson
Grade 5, Lesson 1
• PFL Math 5.10A: define income tax,
payroll tax, sales tax, and property tax
• PFL Math 5.10B: explain the difference
between gross income and net income
The Case of the
Disappearing Paycheck
13
• Write any word or phrase or draw
a picture on each chart paper to
show what you know about each
tax.
Word Splash
14
• Create a tax flipbook
• Number 1-4
The Case of the
Disappearing Paycheck
15
•
•
•
•
Group 1 will become experts on income tax.
Group 2 will become experts on payroll taxes.
Group 3 will become experts on sales tax.
Group 4 will become experts on property tax.
The Case of the
Disappearing Check
16
• Read the section about your tax category.
• Discuss the important points about your tax
category.
• Create a visual on chart paper that
communicates the important information
about your assigned tax.
• Plan your presentation.
The Case of the
Disappearing Paycheck
17
• What points will you write in your flipbook?
• Now that you know more about taxes, where
does the money come from that one uses to
pay taxes?
The Case of the
Disappearing Paycheck
18
• Here’s what Mr. Cash made in a one week
period. He worked 40 hours and made
$14.50 per hour. This means that he
earned $580.00 that week. His federal
withholding tax was $47.00, Social
Security tax paid was $35.96, and his
Medicare tax contribution was $8.41.
The Case of the
Disappearing Paycheck
19
• How much did Mr. Cash pay in taxes that
week?
• What was his final net income?
• How did you determine his net income?
The Case of the
Disappearing Paycheck
20
TCEE: Grade 5, Lesson 3
Where Does All My Money Go?
21
TCEE created lesson
Grade 5, Lesson 3
• 5.10D: develop a system for keeping
and using financial records
Where Does All My
Money Go?
22
• What is income?
• What do adults do with their income?
• How can a 5th grader earn income?
Income
23
Income
Expenses
24
25
• A budget is a plan that shows how income
will be used for expenses. When people
plan how to use their income, they make
better decisions that lead to financial
success. Before people make a budget,
they have to track their earnings and
spending.
Financial Records
26
•7 ways kids can earn
money
themint.org/kids
27
28
• What can you do if the expenses are
greater than the income?
• Why is it a good idea for consumers
to keep a record of their spending?
Check for Understanding
29
• What can you do if the expenses are
greater than the income?
• Why is it a good idea for consumers
to keep a record of their spending?
30
• People have unlimited wants but
they have limited money. People
cannot have everything they want.
So they have to make choices.
Scarcity
31
32
• Creating Spending Diary
33
TCEE: Grade 5, Lesson 4
Money In, Money Out
34
TCEE created lesson
Grade 5, Lesson 4
• PFL Math 5.10E: describe actions that
might be taken to balance a budget when
expenses exceed income
• PFL Math 5.10F: balance a simple
budget
Money In, Money Out
35
Handsonbanking.org
36
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
37
Column A
Weekly Income
Source
Amount
allowance for
household chores
Column B
Weekly Expenses
Item
Amount
$10.00
38
Column A
Weekly Income
Source
Amount
allowance for
household chores
$10.00
mow the yard
$15.00
Column B
Weekly Expenses
Item
Amount
39
Column A
Weekly Income
Source
Amount
allowance for
household chores
$10.00
mow the yard
$15.00
bathe the dog
$5.00
Column B
Weekly Expenses
Item
Amount
40
Column A
Weekly Income
Source
Amount
allowance for
household chores
$10.00
mow the yard
$15.00
bathe the dog
$5.00
Column B
Weekly Expenses
Item
Amount
dues for Scouts
$2.00
41
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
42
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
43
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
$10
44
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
Total:
$10
$30.00
45
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
Total:
$30.00
Total:
$10
$22.00
46
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
$10.00
saving for basketball
shoes
Total:
$30.00
Total:
$22.00
47
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
48
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
49
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for
household chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
50
• Fixed expenses are those expenses
that remain the same each week or
month.
• Variable expenses are those
expenses that vary from week to
week or month to month.
Expenses
51
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for household
chores
$10.00
dues for Scouts
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
52
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for household
chores
$10.00
dues for Scouts - f
$2.00
mow the yard
$15.00
college savings
$5.00
bathe the dog
$5.00
cell phone
$5.00
Entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
53
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for household
chores
$10.00
dues for Scouts - f
$2.00
mow the yard
$15.00
college savings - f
$5.00
bathe the dog
$5.00
cell phone
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
54
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for household
chores
$10.00
dues for Scouts - f
$2.00
mow the yard
$15.00
college savings - f
$5.00
bathe the dog
$5.00
cell phone - f
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
55
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for household
chores
$10.00
dues for Scouts - f
$2.00
mow the yard
$15.00
college savings - f
$5.00
bathe the dog
$5.00
cell phone - f
$5.00
entertainment - v
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
56
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for household
chores
$10.00
dues for Scouts - f
$2.00
mow the yard
$15.00
college savings - f
$5.00
bathe the dog
$5.00
cell phone - f
$5.00
entertainment - v
$10.00
saving for basketball
shoes - v
Total:
$30.00
Total:
$16.00
$22.00
$38.00
57
Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
allowance for household
chores
$10.00
dues for Scouts – f
$2.00
mow the yard
$15.00
college savings – f
$5.00
bathe the dog
$5.00
cell phone – f
$5.00
entertainment – v
$10.00
$2.00
saving for basketball
shoes – v
$16.00
Total:
$30.00
Total:
Jordan can reduce his
entertainment from $10 to $2 for
5 weeks.
$22.00
$38.00
58
$30.00
59
60
• How would you describe a budget?
• Why is having a budget important?
• What may happen if you do not stick
to your budget?
Check for Understanding
61
We’ve worked on Jordan’s budget
together to make sure he has a balanced
budget. Now it’s your turn to help
Ginger.
Ginger’s Budget
62
• You must have at least $30.00 weekly income. No more
than $15.00 can be allowance. You must show jobs that
you can do and would be willing to do every week.
• You must save at least $5.00 of your weekly income in
a college savings plan.
• You must share/donate some of your income with
others.
• You must spend some of your money. Your spending
must be reasonable for someone your age.
• Your expenses may not exceed your income.
Plan a weekly budget for yourself.
63
• The Mint Kids –
http://themint.org/kids/determiningyour-budget.html
Extension
64
TCEE Grade 6 Lesson 1
Best Payment Option: Debit or Credit
65
The student is expected to:
• Math 6.14B distinguish
between debit cards and credit
cards
66
• Bridgette would like to buy her parents an
alarm clock for their anniversary. How
might Bridgette pay for the alarm clock?
Sorting Activity
67
68
• Create a Venn diagram that represents
the similarities and differences
between a debit card and a credit card.
Venn Diagram
69
70
• Money is withdrawn directly from a
checking or savings account.
• Each purchase is a loan that is repaid later.
• Consumers can purchase items now and
pay for them later.
• Hefty fees may be charged if you spend
more than what is in the account.
Debit or Credit?
71
• Eric purchased a movie ticket with his card.
This money will come straight out of his
checking account. What card did he use?
• Rosa’s gas pump went out as she was driving
her car to work. Since she did not have
enough money to cover the cost to replace the
pump, she used a card that allowed her to pay
later. What card did she use?
Debit or Credit?
72
TCEE Grade 6 Lesson 2
Checks and Balances
73
The student is expected to:
• Math 6.14A compare the features and costs of a
checking account and a debit card offered by
different local financial institutions
• Math 6.14C balance a check register that includes
deposits, withdrawals, and transfers
74
Deposit
Withdrawal
Balance
75
in
Deposit
out
Withdrawal
-
+
Balance
76
Identify the Bank Transaction
 Debbie paid her rent by writing a $400 check
to her landlord.
77
Identify the Bank Transaction
 Money is automatically transferred into
Debbie’s checking account for earnings from
her job.
78
Identify the Bank Transaction
 Debbie went shopping for some treats for
her dog, Bruno, and a new leash at Pet City.
When she checked out, she entered her
personal identification number (PIN) at the
register and paid with the debit card.
79
Identify the Bank Transaction
 Debbie wanted cash to pay for the cost of a
movie ticket and popcorn. She stopped at an
ATM machine, entered a code and took cash
out of the machine.
80
Identify the Bank Transaction
 Debbie received two checks for her birthday.
She went to her bank, filled out a slip and
gave the check to the bank teller.
81
Vocabulary
Transaction: Any activity with money such as a deposit,
a withdrawal, or a transfer.
ATM Surcharge: An Automatic Teller Machine (ATM)
fee financial institutions charge for withdrawing money.
Insufficient Funds: This term describes the
circumstance of not having enough money in a checking
account to make a payment or to withdraw money.
Overdraft fee: This is a fee charged by the financial
institution for making a purchase against your checking
account in which there is not enough money in the
account to cover the payment.
82
83
Overdraft protection example:
• Debbie had $395 in her checking account when
the $400 rent check was processed.
$395 - $400 = -$5
• Bank charges Debbie an overdraft fee of
$25.
-$5 - $25 = -$30
Why is this feature called overdraft
protection?
84
85
Example of no overdraft protection:
• Debbie had $395 in her checking account when the
$400 rent check was processed.
• Check bounces; Debbie is charged a $30 bounced
check fee.
$395 - $30 = $365
• Landlords don’t receive the check; they charge Debbie
a $40 late fee.
• Landlords ask Debbie to pay the return check fee of $25.
What was the cost of this transaction?
86
What is the best
option?
87
SafeMoney Bank Terms:
 Monthly service fee of $15 is
applied if the account falls below
$100
 Monthly debit card fee of $1
 An overdraft fee of $20 for each
overdraft.
 ATM cash withdrawals will be
denied if the account has
insufficient funds.
Activity 6.2-1
ATM Surcharge for Local Financial
Institutions:
 MY Credit Union: $3.00
 Wise Bank: $2.00
88
89
90
My Credit Union Game Rules
Shuffle game cards and place them face down in one stack. Each
player should have a check register to record his or her transactions.
The person with the birthdate latest in the year goes first and the
turn to play passes to the next player. Choose the top card in the
stack. Document the transaction on your check register. For each
transaction, write today’s date. For each check withdrawal write a 2digit check number beginning with 01. Then calculate your balance.
Place this card in the discard pile.
The game ends after all the cards have been drawn or when a player
has filled the check register. The person with the greatest balance is
91
the winner.
SPECIAL RULES:
• If you draw a card that is a check withdrawal and you do
not have enough money for the transaction, you must
subtract the payment as well as an overdraft fee of $20. Use
an additional line to record this overdraft fee if applicable.
• If you use your debit card to purchase a good or service or
to withdraw money and you have insufficient funds, the
credit union will decline the card. Put the card in in the
discard pile. You lose your turn.
• If you withdraw cash using your debit card at a bank or
credit union that is not My Credit Union, subtract an
additional $2.00 for ATM surcharge. Use an additional line to
record this surcharge if applicable.
92
• What happens when your checking account
balance is low?
• Why is it so important to keep a record of your
transactions and balance?
CHECK FOR
UNDERSTANDING
93
• Compare the features and costs of a checking account
and a debit card offered by different local financial
institutions.
ACTIVITY 6.2-3
94
TCEE Grade 6 Lesson 4
Which Job is Best for Me?
95
The student is expected to:
• 6.14H compare the annual salary of
several occupations requiring various
levels of postsecondary education or
vocational training and calculate the
effects of different annual salaries on
lifetime income
96
• What type of job do you want to have as an
adult?
• What types of skills will you need for this job?
• How will you gain those skills? (college, trade
school, on the job training)
• How much do you think this job pays per year?
Engage: T-P-S
97
• Know Your Dough
St. Louis Federal Reserve
98
• Each of you will remain seated to produce
your own name tent, using only one hand,
your non-dominant hand—that is, the hand
with which you do not write—to produce
the name tent. You must keep your
dominant hand behind your back.
Group 1
99
• Each of you will remain seated to produce
your own name tent, using only one hand,
your dominant hand—that is, the hand with
which you write—to produce the name
tent. You must keep your nondominant
hand behind your back.
Group 2
100
• Each of you will remain seated to produce
your own name tent, using both hands.
Group 3
101
• Each of you will produce your own name
tent while standing and using only one
hand—the nondominant hand—to produce
the name tent. You must keep your
dominant hand behind your back. You may
not use the desk, table or chair.
Group 4
102
103
104
105
106
Activity 6.4-1
• Each student will draw a card.
• Each card has a job title, an annual salary, and the
amount of education required for that job
• Student lists the job s/he drew and the annual
salary, hourly wage, and education required in the
top left box.
• Demonstrate how to calculate the hourly rate.
• Complete the remaining eight boxes by circulating
around the room and finding classmates who have
jobs that match the criteria either by salary range or
education level.
107
• Use their data from Activity 6.4-1a to answer the
questions on Activity 6.4-1b.
108
Activity 6.4-2
• Go to
http://www.texascaresonline.com/wowmenu.asp
• Click on Self-Assessment
• Click on I Want To Do The Interest Profiler
• Click on Interest Profiler and follow the prompts
OR
• Choose Career Clusters
109
Closure
• Why should someone look at the projected demand
when choosing an occupation?
• At what level of education is there the best
possibility for higher salaries?
• What is the relationship between salary and
education for the fastest growing occupation?
• What other factors should you consider when you
are choosing a career path?
110