NEFE® High School Financial
Planning Program (HSFPP)
Fahzy Abdul-Rahman
Family Resource Management
Extension Specialist
New Mexico State University
HSFPP is sponsored by National Endowment for Financial Education®
(NEFE®), Copyright 2007
NMSU Extension
• Land-grant university mandate – teaching,
research, … & extension.
• Provides practical, research-based knowledge
and programs to improve their quality of life
– http://extension.nmsu.edu/
• County extension offices in each county
HS Financial Literacy in NM
• Governor Bill Richardson has approved
financial literacy as a possible subject in
fulfilling math high school credit requirement
in March 2010.
– one of the four mathematics units required for
high school graduation
• 46 percent are functionally illiterate
– Financial functionally illiterate?
Why NEFE’s HSFPP?
The winner of two national awards:
The Institute for Financial Literacy's EIFLE (Excellence in
Financial Literacy Education) Award for Institutional Book of
the Year Award in the General Children Category was awarded
to the HSFPP.
The Association for Financial Counseling, Planning and
Education also gave its Outstanding Financial Education
Program of the Year award to the NEFE HSFPP.
Why NEFE’s HSFPP?
• Complete, money management curriculum
• Over 6,500,000 student guides sent out to an
estimated 200,000 classrooms
• Tested
• Teacher Training Program
• Materials are free
• Online resources available:
– For parents
– For students: Games, quizzes
Certificate of
Completion
Instructor Manual
Presentation Visuals
Online Training
Data Disk
Take-Home
Brochure
Spanish
Version
Program Materials
Student Guide
6
Modules/Chapters
Student Guide vs.
Instructor's Manual
Overview for Instructor
• Instructor’s Manual is very detailed
• Training provided by NEFE representative
– In NM, Family Resource Management Extension
Specialist
• Flexible: Focus on selected topics/chapters
• Supplemental materials’ suggestions
Unit 1 – Financial Plan
• Examine the value of having a process of planning
how to use money
• Create personal financial SMART goals
• Analyze how money is received and used
• Use the decision-making process to create a
financial plan
• Identify guidelines to implement a personal
financial plan
• Monitor and modify a personal financial plan
Sample Wants and Needs
NEEDS
• Food for breakfast
• Clothes for school
• Transportation to
school or work
WANTS
• An iPOD
• DVD Players
• Cell Phone
• Hot Car
Don't Buy Stuff on Hulu:
http://www.hulu.com/watch/1389
The Five-Step
Financial
Planning
Process
1-B
Step 1: Set up SMART Goals
SMART Goals
for lodging, transportation, meals for
Specific…….. “Pay
a 5-day trip to Washington, D.C.”
through fundraising, $50 from
Measurable… “$300
birthday money, save $25 a week.”
Attainable….. “IfwhenI stickI needto myit.”plan, I’ll have the money
“I still have enough money to live on
Realistic……. while I work toward this goal.”
“I need to have all the money by 6 months
Time-Limited.. from now.”
Unit 2 – Budgeting
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Examine spending habits
Benefits of having a spending plan, or budget
Identify various sources of income
Identify types of expenses
Importance of saving (paying yourself first)
Constructing a budget [e.g. here]
Record keeping involved with budgeting
How a budget will change throughout your life
NEFE High School Financial Planning Program
Unit Two – Budgeting: Making the Most of Your Money
?
NEFE High School Financial Planning Program
Unit Two – Budgeting: Making the Most of Your Money
Unit 3 – Investing
A.
B.
C.
D.
Differentiate between saving and investing
Assess the time value of money
Compare investment options
Compare the relationship between risks and
returns related to saving and investments
E. Recommend ways to integrate savings and
investing strategies into financial planning
Investing Weekly at 5% Interest
Amount Saved
Per Week
Value After
10 Years
$ 7.00
$ 4,720
$ 14.00
$ 9,440
$ 21.00
$ 14,160
$ 28.00
$ 18,880
$ 35.00
$ 23,600
3-B
1
Financial
Planning
Pyramid
Highest Risk
Highest Earnings
Commodities
Collectibles
Blue-Chip
Common
Stock
Insured Savings /
Checking Accounts
3-J
Speculative
Stock / Bonds /
Mutual Funds
Growth
Mutual
Funds
Real
Estate
Balanced
Mutual
Funds
Money Market
Accounts
or Mutual Funds
Penny
Stock
High-Grade
Preferred
Stock
High-Grade
Convertible
Bonds
High-Grade
Municipal Bonds
or Mutual Funds
U.S. Savings
Bonds
Certificates
of Deposit
High-Grade
Corporate Bonds
or Mutual Funds
Treasury
Issues
Lower Risk
Lower
Earnings
Unit 4 – Good Debt, Bad Debt
• Explain what credit is
• Compare the advantages and disadvantages of using
credit
• Outline the process of applying for credit
• Explain what a credit history is and why it is important
• Explain how to manage credit responsibly
• Explore the consequences of excessive debt and how
to correct it
• Determine what to do in the event of inaccurate
reporting
Unit 5 – Your Money
• Examine the various types of financial services
providers, especially credit union
• Explain how a savings account works
• Practice using a checking account and debit card
• Explain how a credit card is used to make purchases
• Explore the features of automated financial
services
• Respond to situations involving identity theft and
deceptive practices
Savings Deposit
Exercise 5-C, Page 62
6
1
Today’s
date goes here
2Print Your Name Here
3Print Your Address Here
4 Sign Your Name Here
5
3 33 3 3 3 3
Click the numbers
7
8
9
10
11
x
1 25 0 9
375 2 5
5 00 34
75 0 0
425 3 4
Savings Deposit
Exercise 5-C, Page 62
x
Today’s date
Your Name
Your Address Here
1 0 1 - 2 3 4 56 - 6 7 8
Click Here to Go to the Next Slide
1 00 0 0
1 00 0 0
Check Details
Click the numbers
1
2
3
4
5
6
7
8
9
10
11
Enter
Put
Here
your
just
the
personal
date
number
you
check
signature
write
ofNumber.
this
number
each
Check.
here.
check.
again
(see
above
right).
On
Here
This
Legibly
Place
Make
the
isisthe
sure
to
lower
where
the
your
print
add
Routing
your
Account
line,
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any
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personal
amount
information
write
write
Number
out
the
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information
the
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name
for
you
(Note
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your
want
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orthe
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January 15, 2009
25.65
Best Foods Supermarket
Twenty-five and 65/100 - - - - - - - - - - - - - - - - - - - - - - - Snacks for Party
John M. Smith
Keep a Record
Click Here
1
2
3
Deposit 1/11
Auto
WD
100
1/11
Deposit to Checking
Charge for Personalized Checks
1/15 Fine Foods
Groceries
200 00
20 00
23 11
200 00
200 00
20 00
180 00
23 11
156 89
Does It Balance?
Reconciling your checking account statements
Why reconciling is important
• Lets you check for mistakes and checks you wrote but
did not enter.
• Gives you a chance to subtract other charges that the
financial institution may have added.
• Lets you add any interest that your checking account
may have earned.
• Not all the checks you have written will always be
shown, because they may not have been cleared by
your bank or credit union.
• Uncleared checks will show up on your next statement.
Debit Cards vs. Debit Cards
HOW TO USE A DEBIT CARD
• How to Use
• The Difference
– Enter your PIN number
– Enter the amount of cash back, if desired
– Signature
The Risks of Identity Theft
IDENTITY THEFT VICTIMS COULD:
• Have any and all of their financial accounts
invaded and emptied.
• Be asked to repay debts they did not incur.
• Lose job opportunities.
• Lose their good credit rating.
• Be refused loans.
• Be sued for things they have no part of.
• Even be arrested for crimes they didn’t commit.
SCAMMED!
The news of my father death, and my uncle,s
involvement in an air crash in december 2002
while on a business trip to benin republic
caused my mother heartfailure and other
related complications of which she later died in
the hospital After we have spent a lot of
money on her.
What’s
Going
What’s Going
on
Here?
on Here?
Before our mother died, she told us that our
father deposited some money which he made
from diamond sales and contracts at this bank
here in Ivory Coast and that we should pray
and find a trust worthy foreign business
partner who would help us to transfer and
invest this money in profitable business
venture overseas.She told us to do this quickly
so that we can leave Ivory Coast and, then
settle down abroad. She gave us the bank
document to prove the deposit and then told
us that my father used my name as the next of
1 money
2
kin and beneficiary to the
in the bank
Unit 6 – Insurance
• Identify ways to manage risk
• Describe how insurance is used to protect against
financial loss
• Explain the features and processes related to
automobile insurance
• Examine how insurance needs vary from person
to person because of lifestyle and life situation
• Assess how insurance fits into your financial
planning
Managing the Possibility of Loss
Avoid it
Reduce it
Accept it
Share it
How much
you use the
car
If you’re a good student
Make of car
Driver’s education
Credit rating
Factors Affecting Automobile
Insurance Costs
Where you live
Gender
Type of car
Marital status
Driving record
Do you take the car to work?
6-F
Your age
Unit 7 – Your Career
• The relationship between career choice and
earning power
• How education and training affect career choices
and earning potential
• The value and costs of career preparation
• How employee benefits enhance earning potential
• Factors that affect earning potential and financial
planning
• Pros and cons of working for yourself versus
working for others.
Relationship of Career and Earning Power
Key Employee Skills
Basic Skills
Thinking Skills
Personal Skills
Resource Management
Skills
Interpersonal
Skills
Systems
Skills
Information Management
Skills
Technology Skills
NEFE High School Financial Planning Program
How Much is Class Worth?
Worklife earnings estimates by highest level of educational attainment
4.5
4.4
4
Millions of 2006 dollars
3.5
3.4
3
2.5
2.5
2.1
2
1.5
1
1.5
1.6
1.2
1
0.5
0
Some1high
school, no
degree
High
2 school
diploma, or
equivalent
Some
3
college, no
degree
Associate
4
Degree
Bachelor’s
5
Degree
Master’s
6
Degree
Doctoral
7
Degree
Professional
8
Degree
Source, US Census Bureau, current population survey, educational
attainment in the US. 2005
1 of 2
Typical Employee Benefits
• Hospitalization, Medical, and
Disability Insurance
• Dental and Vision Insurance
• Accidental Death Insurance
• Sick Leave
• Paid Vacation Time and Holidays
• Parental Leave
2 of 2
Typical Employee Benefits
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Worker’s Compensation Insurance
Life Insurance
Retirement Benefits
Retirement Savings Plans
Employee Assistance Programs
Factors that Can Affect Your Earning Potential
Promotions
Being Laid Off
Additional Training
A New Job
Relocation
Being Fired
Advanced Degrees
Business Downturn
Changing Careers
Life-Changing Situations
Business Upturn
What other factors can you think of?
Web Site for
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All instructional materials
All the best from 2001 & 1995 HSFPP
Online Ordering Capability
Links to Curriculum Resources on the Net
Knowledge Sharing
Online Training
Teachers
Teachers
Resources
Including Suppliments
Supplement Materials
• Banking
– Practical: Fake accounts, on-line banking, debit
card use, e-payment, writing check.
– Credit union preferred
• Junior Achievement (JA) materials
– Games
– Books
Web Site for
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Articles on Financial Topics
HSFPP Related Content and Tools
Financial Calculators
Games
NTRBOnline.com Content
Monthly Polls
Links to Web resources about money
Students
Students
Web Site for
Parents
Tools for Parents to Help Their Kids
Financial Ed Tools for Parents Themselves
Links Web Resources
HSFPP Curriculum Information
Information on Financial Education
How to get the HSFPP
Parents
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Log-in
46
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