Welcome to Personal Financial
Literacy Workshop!
• Please complete the registration form on
page 2.
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Helping young people learn to think, choose, and make better
economic and financial choices in a global economy
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
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Agenda
 What
is personal financial
literacy and why do we need it?
 Grade 5 – The Case of the
Disappearing Paycheck
 Grade 5 – Money In, Money Out
 Grade 6 – Debit or Credit
 Grade 6 – Checks and Balances
 How to access resources
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Personal Financial Literacy is making
thoughtful, well-informed decisions
about important aspects of finances.
Why do we need it?
4
Nationwide Financial Capability Study
• 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
http://usfinancialcapability.org/results.php?region=TX
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2014 Student Loan Debt
– 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
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. . . 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.
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TCEE: Grade 5, Lesson 1
The Case of the Disappearing Paycheck
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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
9
• Write any word or phrase or draw
a picture on each chart paper to
show what you know about each
tax.
Word Splash
10
• Create a tax flipbook
• Number 1-4
The Case of the
Disappearing Paycheck
11
•
•
•
•
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
12
• 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
13
• 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
14
• 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
15
• 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
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TCEE: Grade 5, Lesson 2
How Will I Pay?
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Grade 5, Lesson 2
• 5.10C: identify the advantages and
disadvantages of different methods of
payment including check, credit card,
debit card, and electronic payments
How Will I Pay?
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TCEE: Grade 5, Lesson 3
Where Does All My Money Go?
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Grade 5, Lesson 3
• 5.10D: develop a system for keeping
and using financial records
Where Does All My
Money Go?
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• I can’t spend more than I make
• I need a plan to buy something I want
• By tracking my spending, I can see if I
spend too much on frivolous items
• I need to track my income and expenses
before I make a budget
Takeaways
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TCEE: Grade 5, Lesson 4
Money In, Money Out
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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
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Handsonbanking.org
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Column A
Weekly Income
Source
Amount
Column B
Weekly Expenses
Item
Amount
25
Column A
Weekly Income
Source
Amount
allowance for
household chores
Column B
Weekly Expenses
Item
Amount
$10.00
26
Column A
Weekly Income
Source
Amount
allowance for
household chores
$10.00
mow the yard
$15.00
Column B
Weekly Expenses
Item
Amount
27
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
28
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
29
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
cell phone
$5.00
bathe the dog
$5.00
30
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
31
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10
Total:
$30.00
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10
Total:
$30.00
Total:
$22.00
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10.00
saving for basketball
shoes
Total:
$30.00
Total:
$22.00
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
Expenses
• Fixed expenses are those expenses
that remain the same each week or
month.
Expenses
• Fixed expenses are those expenses
that remain the same each week or
month.
Expenses
• 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
• 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.
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
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
cell phone
$5.00
bathe the dog
$5.00
college savings
$5.00
Entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
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
cell phone - f
$5.00
bathe the dog
$5.00
college savings
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
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
cell phone - f
$5.00
bathe the dog
$5.00
college savings - f
$5.00
entertainment
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
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
cell phone - f
$5.00
bathe the dog
$5.00
college savings - f
$5.00
entertainment - v
$10.00
saving for basketball
shoes
$16.00
Total:
$30.00
Total:
$22.00
$38.00
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
cell phone - f
$5.00
bathe the dog
$5.00
college savings - 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
$30.00
50
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• 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
52
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
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• 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.
54
TCEE Grade 6 Lesson 1
Best Payment Option: Debit or Credit
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Grade 6 Lesson 1
• Math 6.14B distinguish
between debit cards and credit
cards
Best Payment Option:
Debit or Credit
56
• Bridgette would like to buy her parents an
alarm clock for their anniversary. How
might Bridgette pay for the alarm clock?
Sorting Activity
57
58
• Create a Venn diagram that represents
the similarities and differences
between a debit card and a credit card.
Debit
Card
Venn Diagram
Credit
Card
59
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• 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?
61
• 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?
62
TCEE Grade 6 Lesson 2
Checks and Balances
63
Grade 6 Lesson 2
• 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
Checks and Balances
64
Deposit
Withdrawal
Balance
65
in
Deposit
out
Withdrawal
-
+
Balance
66
Identify the Bank Transaction
 Debbie paid her rent by writing a $400 check
to her landlord.
67
Identify the Bank Transaction
 Money is automatically transferred into
Debbie’s checking account for earnings from
her job.
68
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.
69
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.
70
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.
71
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.
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Overdraft protection example:
• Debbie had $385 in her checking account when
the $400 rent check was processed.
$385 - $400 = -$15
• Bank charges Debbie an overdraft fee of
$25.
-$15 - $25 = -$40
Why is this feature called overdraft
protection?
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75
Example of no overdraft protection:
• Debbie had $385 in her checking account when the $400
rent check was processed.
• Check bounces; Debbie is charged a $30 bounced check fee.
$385 - $30 = $355
• Landlords don’t receive payment; 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?
76
Example of no overdraft protection:
• $30 bounce check fee to bank
• $40 late fee to landlords
• $25 return check fee to landlord
$95 total in fees
Debbie still has to pay her rent.
77
78
What is the best
option?
79
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
80
81
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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
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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.
84
• 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
85
• Compare the features and costs of a checking account
and a debit card offered by different local financial
institutions.
ACTIVITY 6.2-3
86
A Proven Tool that Increases the
Learning in the Classroom
Personal Financial Literacy
Challenge
•
Middle and High School
•
Fall and spring online
challenges will
determine state finalist
candidates
•
“State Play-Offs” in
Austin with cash awards
for two top teams
•
HS national finals at Fed
in St. Louis
•
Bellaire HS Houston 2nd
in nation 2012
The TCEE programs are made possible by the following TCEE partners.
John Anderson
Trout
Foundation
copyDR.
EnviroChem
Services, Inc.
Less B. Fox
RBC Wealth Management