Incorporating Financial Education and Hands-On
Money Management into After School Programs
Laura Ewing, Texas Council on Economic Education,
laura@economicstexas.org
Laura Rosen, Center for Public Policy Priorities, rosen@cppp.org
Out-of-School-Time Initiatives Conference 2014
Fort Worth, TX
July 25, 2014
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Joint statewide initiative of the Center for
Public Policy Priorities and RAISE TEXAS
that invests in innovative programs that
integrate financial and asset building
activities into statewide platforms,
including education, social services, and
the workplace.
Fueling economic mobility for
Texas families and children
Sign up for our email
updates at
www.opportunitytexas.org
“Like” us on Facebook
Initiatives:
– Texas Children’s Savings Partnership
– Tax-Time Savings Project
– Employer-based asset building
Basic needs
Education
Workforce
2
OpportunityTexas
Asset building
Why Connect Financial Education and
Savings Accounts?
• Academic achievement – educational savings
account ownership is associated with higher
scores on math achievement tests
• Improved college aspirations – children with
< $500 in savings for college are 3X more likely to
attend and 4X more likely to graduate from
college
• Financial health - students with a savings account
7 years later were 2X more likely to have a
savings account and 4X more likely to own stocks
3
Existing School-Based Financial Education and
Savings Account Programs
• Offered in a school setting
• Typically involve savings matches and/or other incentives
• Restricted accounts, to be used for higher ed
-San Francisco’s Kindergarten to
College
-KIPP College Account Program
-Propel Schools’ Fund My Future
-Mississippi College Savings Account
Program
-Cuyahoga County (Cleveland), OH’s
College Savings Account Program
-Nevada’s College Kick Start Program
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Assessing Financial Capability
Outcomes (AFCO) Youth Pilot
Study aims to better understand how to provide
children with the financial skills to become
economically successful
• Focus on elementary-age students
• Rigorous examination of financial education
combined with student account access
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Financial Education + In-School
Banking
Eau Claire,
Eau Claire, WI
Wisconsin
Study Timeline & Sample
-Eau Claire, WI
2011-12: 4th & 5th grade
2012-13: 4th grade &
follow-up survey for 5th
graders
Amarillo, TX
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-Amarillo, TX
2012-13: 4th grade
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Research Questions
What is the impact of financial education and in-school
account access, alone and in combination, on students:
– Financial Knowledge
– Attitudes towards savings and financial institutions
– Behavior, e.g. opening and using bank accounts
Credit union or bank in school
No credit union or bank in
school
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Financial education
No financial education
Credit union or bank in school +
Financial education
No credit union or bank in
school + Financial education
Credit union or bank in school +
No financial education
No credit union or bank in
school + No financial education
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Financial Education
• 5 or 6 lessons from Financial Fitness for Life
curriculum (covered nearly all Texas’ new
PFL curriculum)
• Content focused on Savings Account Use
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Defining income, expenses and savings
Wants vs. needs, incentives and goals
Explain budgets and savings plans
Compare savings options and understanding interest
• Teachers trained for 3 to 6 hours on curriculum and
materials (in TX training by TCEE)
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In-School Banking, Amarillo
• Happy State Bank Kids’ Bank
– Account Type: Joint ownership savings
account (also opened minor-only account for
the pilot)
– Frequency: Every 2-3 weeks (once a week
during study period)
– Bank Transactions: Kids can only make
deposits at school branch
– Student Staffing: Student tellers work with
HSB staff (timing of research didn’t allow for
student staffing during the study)
– Show Video
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Amarillo In-School Banking Take-Up
• 38% overall participation
• Same or higher take-up in schools with more
economically disadvantaged students
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Amarillo Teacher Feedback
Students’ Level of Understanding:
• Items discussed in lessons should take into
consideration students’ income levels
Kids’ Bank:
• Nearly all positive feedback from teachers
• Students excited about saving & Kids’ Bank
participation brought concepts taught to life
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Insights and Successful Practices to Operating
an In-school Banking Program
• Present banking program and financial education curriculum
to students and parents as one program
• Have school district market in-school banking program to
students
• Offer accounts that meet the needs of all families
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Overall Results
• Large effects of education on knowledge questions
– Financial education appears to produce a large
improvement in financial knowledge—an increase
in the number of correct questions between 1.8
and 2.0
– No evidence that having a bank branch in the
school has an added effect on learning
• Moderate effects of in-school banking and education
on attitudes about financial institutions and saving
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Overall Results
• Behavior - Financial education and bank access
boost bank account ownership by kids
– Financial education increases the number of
banked students by about 3.5%
– $25 incentive causes about an 18.1% marginal
increase in students opening accounts
• Effects persist … at least for a year
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Texas Children’ Savings Partnership
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Vision
• Every student and parent that
wants to open a college savings
account at school can do so
Delivery
channel
• Public schools through Texas’
new K-8 math personal
financial education curriculum
TCSP’s Quest for “Off-the Shelf”
Product
Core Elements
• No fees
• Restricted for Postsecondary ed.
• Incentivized participation
• Connected to PFL curriculum and K-12 system
• SSN’s not required to open accounts
• Offered in partnership with local financial
institutions
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Texas Children’ Savings Partnership
Phase 1
Phase 2
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• Feasibility study and pilot in 1-2 school districts during 2014-2015 & 20152016 school years
• Purpose: pilot will help us refine program, identify policy barriers, provide
us with evidence of benefits of the program and help us generate support
for statewide program
• Develop toolkit outlining model account features and program
implementation
• Advance policies that support statewide program (e.g. define accounts in
statute, etc.)
• Identify one program administrator and custodian for statewide program
Texas Children’s Savings “Ecosystem”
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Schools/Districts
Financial
Institutions
CommunityBased Orgs
Philanthropy
Resources
Download AFCO Youth pilot report and briefs at:
•
http://cfed.org/knowledge_center/resource_directory/search/financial_education__account_access_among_ele
mentary_students_findings_from_the_assessing_financial_capability_outcomes_youth_pilot_full_report
•
Implementation brief about the Amarillo field study and materials from the pilot
http://opportunitytexas.org/about-us/current-initiatives/smarter-texans-save
•
Treasury Notes blog
http://www.treasury.gov/connect/blog/Pages/Promising-Hands-on-Financial-Education-Strategy.aspx
Texas’ New Personal Financial Literacy K-8 math curriculum
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Curriculum standards
http://smartertexas.org/?page_id=677
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Texas Council on Economic Education’s lessons to teach the standards for most grades
http://smartertexas.org/?page_id=1145
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501(c)3 Texas wide nonprofit
1801 Allen Parkway, Houston, TX 77019
tcee@economicstexas.org
www.economicstexas.org * www.smartertexas.org
P: 713.655.1650
Presenter: Laura Ewing/President
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Jean Walker, MBA
West TX A&M
Steve Cobb, Ph.D.
University North TX
Cheryl McGaughey,
MBA, Angelo State U
Susan Doty, MBA
UT Tyler
Alberto Davila, Ph.D.
UT Pan Am
Nancy Shepherd,
Ph.D.
Stephen F. Austin
State University
Cindy Manzano
Valerie Johse
TCEE Math Specialists
Laura Ewing
TCEE President
TCEE Center Directors and Staff Provide Training All Over The Great State of Texas In
After School Programs, Personal Financial Literacy (PFL), Social Studies Economics Strand, Math PFL,
Career/CTE, Entrepreneurship, Economics, Paying For College
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To Learn More About Personal
Financial Literacy Materials and
Lessons at the CEE Conference
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Resources to be Discussed
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Saving for College
K to 8 Math PFL Lessons
Middle School After School Program
Never Too Young After School Program
Stock Market Game™
Saving For College
The Why, When, and How
• Published by RAISE Texas
• Parent and Student Guides Written by TCEE
• Download Book And Guides at
http://economicstexas.org/?page_id=5703
• http://smartertexas.org/?page_id=1231
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Saving for College Parent/Student
Guiding Questions
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Pre-survey Questionnaire
Parents: To better understand your child’s interests and base knowledge of the
relationship between occupation and
education, ask the following questions.
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•
1. Do you want an occupation (or job) in which you work outside or inside?
2. Younger elementary aged children: Circle the job description that best describes
what you would like to do as an adult.
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Work with computers
Take care of the sick
Build and fix things
Draw pictures
Read and write
Do math and science
Teach children
Play or coach sports
Cook food
Entertain people
Work with animals
Help people
Resources for College
• http://raisetexas.org/resources/collegesavingsresources/
Saving for College
• http://library.cppp.org/files/2/2012_05_JO_Cost_Of_College.pdf
• http://www.tgslc.org/tfaic/
• http://www.aie.org/
• collegeforalltexans.org
• http://library.cppp.org/research.php?aid=1199
The Cost of College: How Texas Students and Families Are Financing College
Education
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SB 290: PFL In K-8 Math
• Will take effect 2014-2015
• Testing begins 2015
• Texas Council on Economic
Education, Opportunity Texas, Raise
Texas, Texas Credit Union
Foundation and others played a
prominent role in the adoption of
the standards
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How?
• TCEE Lessons Are Online and Free to All
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Woodforest Bank Sponsoring Grades 2-3
TCUF Sponsoring Grades 4-6
PlainsCapital Bank Sponsoring Grades 7-8
PlainsCapital Bank Sponsoring After School Lessons
Cornerstone Credit Union Foundation 1 K & 1 First
Seeking Sponsors for Grades K to 1
• Never Too Young: Personal Finance for After
School Learners from Council for Economic
Education
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How to Find the Lessons?
• Smartertexas.org
• Economicstexas.org
• Click on FREE RESOURCES
• Click on Math and PFL Books
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Kindergarten & First Grade
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Grades K-1 Incomplete
• Kindergarten: The Money Making Farm
• First Grade: What Do You Do At The Zoo?
Will be completed with additional funding.
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Grades 2 – 3 Classroom Lessons
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Grade 2 Lessons
Lesson 1: Empty Pockets
Math 2.11B
Lesson 2: A Time to Deposit, A Time to Withdraw Math 2.11C
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Lesson 3: Learning to Squirrel It Away
Math 2.11A
Lesson 4: Whooooo’s the Wise One
Math 2.11D
Lesson 5: Lending is Risky Business
Math 2.11E
Lesson 6: A Producer’s Powers
Math 2.11F
Grade 3 Lessons
• Lesson 1: The Ladder to Success
Math 3.9A
• Lesson 2: Scarcity is Scary
Math 3.9B
• Lesson 3: Savor the Savings
Math 3.9C
• Lesson 4: Flat Broke
Math 3.9D
• Lesson 5: Pooling Our Savings
Math 3.9E
• Lesson 6: Decisions, Decisions, Decisions
Math 3.9F
Social Studies 3.6B Free Enterprise System
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Grades 2 and 3 Vocabulary and
Power Points
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•
•
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Wants and Needs
Goods and Services
Money
Scarcity
Opportunity Cost
Budget
Free Enterprise System
Grades 4 to 6 Book
Classroom Lessons
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Grade 4 Classroom Lessons
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Lesson 1: Not Enough Bucks
Lesson 2: Ideas for Raising Profit
Lesson 3: Saving is Not Just Child’s Play
Lesson 3: Savings Options PowerPoint
Lesson 4: Divide and Conquer
Lesson 5: Smart Cash 4.10E
Grade 5 Classroom Lessons
• Lesson 1: The Case of the Disappearing
Paycheck
• Lesson 2: How Will I Pay?
• Lesson 3: Where Does All My Money Go?
• Lesson 4: Money In, Money Out
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Grade 6 Classroom Lessons
Lesson 1: Best Payment Option: Debit or Credit 6.14B
Lesson 2: Checks and Balances 6.14A, 6.14C
Lesson 3: Credit Reports 6.14D, 6.14E, 6.14F
Lesson 4: Which Job is Best for Me? 6.14H
Lesson 5: Paying for College 6.14G
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Grades 7 and 8 Lessons
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Grades 7 & 8 Classroom Lessons
Middle School After School Lessons
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Grade 7 Classroom Lessons
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Lesson 1: You Can’t Hide From Taxes 7.13A
Lesson 2: Personal Budget 7.13B
Lesson 3: Family Budget Estimator 7.13D
Lesson 4: Know Your Worth 7.13C
Lesson 5: Simple and Compounded Interest 7.13E
Lesson 6: Smart Shopping 7.13F
Grade 8 Classroom Lessons
Grade 8 After School Lessons
Grade 8 Classroom Lessons
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Lesson 1: Saving for My Future 8.12C, 8.12D
Lesson 2: Borrowing Money 8.12A, 8.12B
Lesson 3: Methods of Payment 8.12E
Lesson 4: Financially Responsible Decisions 8.12F
Lesson 5: Devise a College Savings Plan 8.12G
Grade 8 After School Lessons
Lesson 6: How Annual Interest Rate Works 8.12D
Lesson 7: How Does Your Money Grow? 8.12C, 8.12D
Lesson 8: Borrower Beware 8.12A, 8.12B, 8.12 F
Lesson 8: Borrower Beware PowerPoint 8.12A, 8.12B, 8.12 F
Lesson 9: Your Money or Theirs 8.12E, 8.12F
Lesson 10: Savings Plan for College 8.12G
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Presentations Available Online
“Recent Presentations”
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Personal Financial Literacy
After School Program
Explore: Concepts
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Interest Rates:
– calculate and compare simple and compound interest
Saving and Investing:
– regular investments grow over time
Loans and Repayment
– Interest rate and loan length affect cost of credit
– Total cost of repaying a loan
– Analyze situations to determine responsible decision
making
Credit and Debit Cards
– Advantages and disadvantages of payment methods
– Analyze situations to determine responsible and
irresponsible borrowing and costs of irresponsible
borrowing
Saving for College
– Estimate the cost of a 2 and 4 year college or post
graduate education
Explore and Explain: What Are The
Five Parts Of Each Lesson?
• Engage
• Explore
• Explain
• Elaboration
• Evaluate
• Brains Settle
Elaborate
• How do you learn?
Visual:
• read, watch movies or see things on the
computer screen?
Auditory:
• hear such as through lecture, stories,
other
Tactile Kinesthetic
• experience through simulations, online
programs, discussion, building and
making
Elaborate: English Language
Learners (ELL)
• Need understanding and acceptance
• Use think-pair-share
• Ask what the group decided rather than “your”
answer
• Use and practice “sign language”
• Use choral reading/responses so not alone
Settlement Into the File System of
the Brain
• Discussion increases understanding.
• As you concentrate on other things, the brain
will sort through information and file it away.
• Review your notes and the PowerPoint by
tomorrow afternoon to help the brain record,
remember and retrieve the information.
• Revisit the notes and PowerPoint in one week.
Lesson 6: How Annual Interest
Rate Works
• Content:
Interest Rates:
– Calculate and compare simple and compound
interest
• Strategies:
– Interactive Notebook (History Alive strategy)
•
Helps students organize lessons and provides a
take home reminder at the end of the after school
program of the concepts and skills learned
– Role play
• Will these strategies be auditory, visual
and/or tactile kinesthetic?
Lesson 6: How Annual Interest
Rate Works
• PFL Math 8.12D
calculate and compare
simple interest and
compound interest
earnings
What is the difference?
• Interest earned
• Interest paid
Savings and loan simulation
• Saver
• Bank
• Borrower
Lesson 7: How Does Your
Money Grow?
• Content:
– Learn that even small amounts of
money saved regularly grow over
time
– Calculate and compare simple and
compound interest
• Strategies:
– Interactive Notebook
– http://www.bankrate.com/ used to
calculate interest
How can financial institutions help
people save?
• Keeping your savings in a financial
institutions removes the temptation
to spend the money.
• Your money will be safe because
financial institutions are insured.
• Money in a savings account earn
interest.
• Go to
http://www.bankrate.com/
Lesson 8: Borrower Beware
• Content:
– Determine how Interest rate and loan length affect
cost of credit
– Figure the total cost of repaying a loan
– Analyze situations to determine responsible
decision making
• Strategies:
– Calculate different payments and solve real world
problems
– Analyze different financial situations and explain
benefits of financially responsible decisions
– Interactive lecture requires students to problem
solve
Lesson 9: Your $ or Theirs?
• Content:
– Determine advantages and disadvantages
of payment methods for credit and debit
cards
– Analyze situations to determine
responsible and irresponsible borrowing
and costs of irresponsible borrowing
• Strategies:
– Analyze real world situations
– Learn to use a bank register
– Organize characteristics of payment
methods
Credit card and Debit Card
• What is the same?
• What is different?
Federal Trade Commission
Recommendations:
 Don’t give your account number to anyone on the phone unless you’ve made the call to a
company you know to be reputable. If you’ve never done business with them before, do an online
search first for reviews or complaints.
 Carry your cards separately from your wallet. It can minimize your losses if someone steals your
wallet or purse. Carry only the card you need for that outing.
 During a transaction, keep your eye on your card. Make sure you get your card back before you
walk away.
 Never sign a blank receipt. Draw a line through any blank spaces above the total.
 Save your receipts to compare with your statement.
 Open your bills promptly — or check them online often — and reconcile them with the purchases
you’ve made.
 Report any questionable charges to the card issuer.
 Notify your card issuer if your address changes or if you will be traveling.
 Don’t write your account number on the outside of an envelope.
Activity 8.9-3
• Emily is a freshman in college and lives in the
dormitory. Her room and board have been paid
with her college savings and a grant. She will
be working 10-15 hours a week through the
college work study program.
Lesson 10: Savings Plan for
College
• Content:
– Estimate the cost of a 2 and 4 year college or post
graduate education
• Strategies:
– Use a questionnaire to determine vocational
interests
– Use technology to analyze scorecards and
determine cost of college
Visual 8.10-1 & Activity 8.10-1
• Occupational Information for Texas
• Connect to occupational goals.
• On-line tools
– http://www.texasrealitycheck.com/
– http://collegecost.ed.gov/scorecard/index.aspx
– http://www.fafsa.ed.gov/
Never Too Young: Personal
Finance for Young Learners
After School Program for Elementary School
Students in Personal Finance and Economics
Laura Ewing, President
Texas Council on Economic Education
Houston, Texas
Jean Walker, Director
West Texas Center for Economic Education
College of Business, WTAMU
66
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Overview of the Lessons
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Lesson 1 We Have Wants ................................................................... 9
Lesson 2 Scarcity .............................................................................. 23
Lesson 3 Choices, Costs and Benefits ................................................ 30
Lesson 4 Consumers, Producers and Resources ................................ 36
Lesson 5 Entrepreneurs in the Community and Advertising .............. 47
Lesson 6 Entrepreneurship and Problem‐Solving .............................. 63
Lesson 7 Entrepreneurship and Market Day ...................................... 77
Lesson 8 Budgeting ........................................................................... 87
Lesson 9 Saving Your Money ............................................................. 97
Lesson 10 Government‐Provided Goods and Services ...................... 105
Lesson 11 Market Day—Implementation ......................................... 113
Lesson 12 Market Day—Wrap‐up ..................................................... 118
•
•
First Training
Second Training
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I’ve Got Money Lyrics
Tune: Are you Sleeping, Brother John
•
•
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•
•
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I’ve got Money,
I’ve got Money,
What should I do?
What should I do?
I must make a choice,
I must make a choice,
Spend or save,
Spend or save.
68
Why Do We
Have to Make
Choices?
69Lesson 1 – We Have Wants
69
What Are Goods and Services?
• Good
• Service
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ECONObucks
• Use as INCENTIVES:
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–
–
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to increase motivation
for participation
to reward good citizenship
for completing work
• Use for BUYING and SELLING in multiple
lessons.
• Use for DEPOSITS and WITHDRAWALS
in lessons that teach banking skills.
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ECONObuck Register
• Name________ Grade_____ School _______
Check #
Date
Transaction/Description
Subtractions
Amount of Payment
$$$
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Additions
Amount of Deposit
$$$
Balance
$$$$
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This is the logo for . . .
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Match the logos to the product:
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Aflac
American Greetings
AT&T
Ben & Jerry’s
BIC
Froot Loops
Hallmark
HSBC
Kraft Foods
Liberty Mutual
Macy’s
Microsoft
Pillsbury
Purina
Walgreens
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slogans
• What business is identified?
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It’s the cheesiest! (Kraft Macaroni and Cheese)
Just do it! (Nike)
Good mood food (Arby’s)
It’s the real thing (Coca-Cola)
The quicker-picker-upper (Bounty paper towels)
Finger-lickin’ good (KFC – Kentucky Fried
Chicken)
– Melts in your mouth, not in your hand (M&Ms)
75Lesson 5 – Entrepreneurs in the Community and Advertising
75
Who is the target market of the ad?
76
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Closure and Assessment
• Closure:
– What is an entrepreneur?
– How are businesses
interdependent?
– How do businesses affect one
another and the community?
– Why is advertising important for
businesses?
• Assessment:
– Older students: have students
write an answer to the question of
the day.
– Younger students: On Handout
5.4, ask students to circle the
picture of an entrepreneur.
77 Lesson 5– Entrepreneurs in the Community and Advertising
77
Story: – Penny’s New Business
78
78
Market Day Planning
79 Lesson 7 – Entrepreneurship and Market Day
79
Three Student Programs
Directly Reach 27,000 students annually
Stock Market Game™
Economics Challenge
Personal Financial Literacy (PFL) Challenge
80
Texas Regional Competitions
•
•
•
•
•
10 week simulation
Grades 4 through 12
Teams of 2-5: $10/team
Virtual $100,000 to invest
20,000 Texas students
participate annually
• Legislative Challenge
• Research indicates
improved math scores on
standardized tests
81 • $10 per team
El Paso Awards Dinner
InvestWrite
Open to students participating in the
Stock Market Game™
Elementary, Middle and High School Competition
Cash prizes from Texas
High School National Winner visits Wall Street
First and 9th Place National Winners From Texas in 2014
82
Personal Financial Literacy
Challenge
83
•
Teams of 4 compete in
online test for state finals
•
Winning state team and
teacher win cash
•
First place state team
attends regional and
national finals at St. Louis
Federal Reserve Bank
•
Funded by State Farm
•
Bellaire HS Placed 5th in
Nation in 2014
The TCEE programs are made possible by the following TCEE partners.
EnviroChem
Services, Inc.
John Anderson
Trout
Foundation
copyDR.
84
Less B. Fox
RBC Wealth Management
Board of Directors
James Cooper - Chairperson
James C. Cooper, Inc.
Marcus McCue
Guardian Mortgage Co., Inc.
Joe Adams - Treasurer
Texas - Omaha Group LLC
Dawn Moeder
Lane Gorman Trubitt, L.L.P.
Anthony Daddino
Meadows, Collier, Reed, Cousins,
Crouch & Ungerman, L.L.P.
Andrew DeLauro
Citibank
Thomas Fleissner
Houston Information Team, L.LC.
Ed Segner
Retired
Wayne Goettsche
WKG Consulting
Robert Smith
Texas A&M University at
Galveston
John Ivie
Basdin & Ivie P.C.
Pete Villarreal
PlainsCapital Bank
Laura Jaramillo
Wells Fargo
Director Emeritus:
John Anderson
Anderson Investments
Sherry Kiser
Federal Reserve Bank of Dallas
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Donna Normandin
Frost Bank
Director Emeritus:
Carol Trout
Trout Foundation
A FINANCIAL LITERACY PROGRAM SPONSORED BY
Helping young people learn to think, choose, and make better
economic and financial choices in a global economy
www.economicstexas.org
www.smartertexas.org
86
1801 Allen Parkway,
Houston, TX 77019
P: 713.655.1650
F: 713.655.1655
Laura@economicstexas.org
Catherine@economicstexas.org
Cindy@economicstexas.org
Valerie@economicstexas.org
smg@economicstexas.org
Cherry@economicstexas.org
allen@economicstexas.org
www.economicstexas.org****WWW.smartertexas.org
Helping young people learn to think, choose and make better economic decisions.
87