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
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3
• Free lessons for grades 4-8
– Full 5E lesson for each PFL TEKS
– Lessons for grades 4-6 funded by
– Lessons for grades 7-8 funded by
– www.smartertexas.org under Resource tab
4
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
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
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7
What is Personal Financial
Literacy?
Why do we need it?
TCEE
Grade 6
Lesson 1
Best Payment Option: Debit
or Credit
8
9
The student is expected to:
 Math
6.14B distinguish between debit
cards and credit cards
10
TCEE
Grade 6
Lesson 2
Checks and Balances
11
12
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
13
Deposit or Withdrawal
Deposit
Withdrawal
14
Deposit or Withdrawal
in
Deposit
+
out
-
Withdrawal
15
Identify the Bank Transaction
 Debbie paid her rent by writing a $400 check to her landlord.
 Money is automatically transferred into Debbie’s checking account for
earnings from her job.
 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.
 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.
 Debbie received two checks for her birthday. She went to her bank,
filled out a slip and gave the check to the bank teller.
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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 $395 in her checking
account when the $400 rent check
was processed.
$395
- $400 = -$5
 -$5 - $25 = -$30
Why is this feature called overdraft
protection?
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20
What is the best
option?
21
Activity 6.2-1
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.
ATM Surcharge for Local Financial
Institutions:
 MY Credit Union: $3.00

Wise Bank: $2.00
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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
the winner.
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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.

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CHECK FOR UNDERSTANDING
 What
happens when your checking
account balance is low?
 Why is it so
important to keep a record of
your transactions and balance?
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ACTIVITY 6.2-3
 Compare the features and costs of a checking
account and a debit card offered by different local
financial institutions.
FFFL
Grade 6
Lesson 16
Establishing Credit
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29
The student is expected to:
 6.14D:
explain why it is important to
establish a positive credit history
 6.14E: describe the information in a credit
report and how long it is retained
 6.14F: describe the value of credit reports
to borrowers and to lenders
 6.3G: generate equivalent forms of
fractions, decimals, and percents using
real-world problems, including problems
that involve money;
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Vocabulary




Collateral: Property or other valuables used as
security to guarantee the repayment of a loan. The
lender can claim collateral if the borrower fails to
repay.
Credit bureau: A firm that collects borrowers’ credit
histories.
Credit report: A history of a borrower’s use of credit.
You should get a copy of your credit report once a
year to ensure there are no mistakes.
Credit score: A score used to evaluate a borrower’s
credit worthiness and likelihood to repay a loan.
Credit scores are based primarily on a borrower’s
payment history and the amount owed. Other
factors used in determining credit scores include
how long you have had each account, the mix of
types of credit used (credit cards and loans) and
factors related to any new credit account that has
recently been opened.
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Vocabulary
 Debt
to income ratio: A measurement of how
much of your income is being spent on debt.
Many financial advisors suggest that you keep
debt levels below 15 percent of your net
income and that debt levels of 20 percent of
your net income are dangerously high. This limit
does not include mortgage payments.
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Debt to income ratio
example:
 Monthly
net income: $1600
 Monthly loan payment on $12,000 loan is
$200
 Credit card balance of $3000 . Pays $160
per month.
34
Debt to income ratio
example:
 Monthly
net income: $1600
 Monthly loan payment on $12,000 loan is
$200
 Credit card balance of $3000 . Pays $160
per month.
𝑑𝑒𝑏𝑡
𝑖𝑛𝑐𝑜𝑚𝑒
35
Debt to income ratio
example:
 Monthly
net income: $1600
 Monthly loan payment on $12,000 loan is
$200
 Credit card balance of $3000 . Pays $160
per month.
$360
= .1625 𝑜𝑟 16.3%
$1600
36
Debt to income ratio
example:



Monthly net income: $1600
Monthly loan payment on $12,000 loan is $200
Credit card balance of $3000 . Pays $160 per
month.
$360
= .1625 𝑜𝑟 16.3%
$1600
What if borrow wants to borrow
$5,000 with monthly payments of
$100?
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Lenders
 Those
who provide credit are called
“lenders.” Lenders must use caution when
granting credit, for an obvious reason;
they do not want to lose money by making a
bad loan.
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Lenders look for the 3 Cs of
credit.
 “character”
 “capacity”
 “collateral”
Reading 16.1 (pages 138-139)
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Borrowers have rights




The total finance charges for a loan in
question
Eligibility for credit without discrimination
based on gender, religion, race, nationality,
or marital status.
The right to contest charges on your credit
card statement if you think they are wrong.
Protection from abuse by credit collection
agencies if you are late making payments.
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Borrowers
 Borrowers
have what responsibilities?
 Would it be easy or difficult for you to get
approved for a loan today?
 How can young people begin to establish
credit?
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Closure
 When
a lender is considering your
“character”, what does he or she
examine?
 When a lender is considering your
“capacity,” what characteristics does he
or she examine?
 What types of things might serve as
collateral for a loan?
 If you have no credit history, what might
you do to establish credit?
TCEE
Grade 6
Lesson 4
Which Job is Best for Me?
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43
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
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Engage: T-P-S
 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?
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48
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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.
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 Use
their data from Activity 6.4-1a to
answer the questions on Activity 6.4-1b.
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Activity 6.4-2
 Go
to
http://www.texascaresonline.com/wowm
enu.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
52
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?
TCEE
Grade 7,
Lesson 1
You Can’t Hide from Taxes
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TCEE
Grade 7,
Lesson 2
Personal Budget
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58
The student is expected to:
 Math
7.13B identify the components of a
personal budget, including income,
planned savings for college, retirement,
and emergencies; taxes; and fixed and
variable expenses and calculate what
percentage each category comprises of
the total budget
59
Engage - Vocabulary
 Income
 Expenses
 Budget
 Write
a sentence using the 3 terms.
 Share your sentence with a partner and
adjust your sentence as needed.
Theo’s Budget
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CREATE A MONTHLY BUDGET
 Step
1: Calculate the monthly net income.
 Step
2: Categorize monthly expenses.
 Step
3: List categories and their total in
budget worksheet.
61
Step 1: Calculate the monthly net income.
Below is Barney’s semi-monthly net income.
Employee:
Barney Smith
Pay Period:
July 2013
Gross Pay
Deductions:
Federal Income
Tax
Social Security Tax
Medicare Tax
Medical Premium
Total Deductions
Net Income
$1930.00
$289.90
$119.66
$27.99
$100.00
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Step 1: Calculate the monthly net income.
Below is Barney’s semi-monthly net income.
Employee:
Barney Smith
Pay Period:
July 2013
Gross Pay
Deductions:
Federal Income
Tax
Social Security Tax
Medicare Tax
Medical Premium
Total Deductions
Net Income
$1930.00
$289.90
$119.66
$27.99
$100.00
$537.55
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Step 1: Calculate the monthly net income.
Below is Barney’s semi-monthly net income.
Employee:
Barney Smith
Pay Period:
July 2013
Gross Pay
Deductions:
Federal Income
Tax
Social Security Tax
Medicare Tax
Medical Premium
Total Deductions
Net Income
$1930.00
$289.90
$119.66
$27.99
$100.00
$537.55
$1392.45
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Step 2: Categorize Monthly Expenses.
House payment $900
Electricity $122
Clothes $120
Retirement Savings $150
Car payment $240
Gasoline and car maintenance $170
Entertainment $200
Cell phone $89
Emergency savings $100
Water and gas $52
Restaurants $175
Groceries $275
Car insurance $120
Miscellaneous $71
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Step 3: List categories and their total in the
budget worksheet.
Monthly Budget Worksheet
Monthly Net Income:
Expenses
Housing:
Food:
Utilities:
Savings:
Transportation:
Other:
Total Expenses:
Cost
Percentage of
Monthly Net
Income
66
Step 3: List categories and their total in
the budget worksheet.
67
Vocabulary

Fixed expenses are those expenses
that remain the same each month.

Variable expenses are those
expenses that vary from month to
month.
68
BALANCE BETTY’S BUDGET
 Barney’s
girlfriend, Betty, is still in college.
She is determined not to get a loan to
pay for tuition and books. Therefore she
lives at home and works part-time. She
knows that if she can save $300 every
month, she will have enough money to
pay for next semester’s college tuition
and books. Every month Betty spends
more money than she makes. Her father
has been giving her money when she
overspends. He has explained that he will
no longer bail her out.
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BALANCE BETTY’S BUDGET
 How
much does Betty have available to
spend each month?
 How
 How
much did Betty spend in August?
much does Betty need to cut back
each month
70
CHECK FOR UNDERSTANDING
 What
is net income?
 What
are fixed expenses?
 What
are variable expenses?
 What
is purpose of a budget?
71
Texas Reality Check
Now it is time for you to take a reality check. Have you
thought about your future? What will your budget look
like? What type of an occupation do you need to afford
this budget? The following simulation will help you
make these decisions.


Go to the following website:
http://www.texasrealitycheck.com
TCEE
Grade 7 Lesson 4
Know Your
Worth
72
73
The student is expected to:
 Math
7.13C: create and organize a
financial assets and liabilities record and
construct a net worth statement
74
Engage
What
does it mean to be
wealthy?
75
76
Net worth is the value of what
you own minus what you owe.
 $30,000
77
78
Activity 7.4-1a
 Use
the Activity 7.4-1a sheet and the blue
and yellow cards to determine each
families net worth.
79
Using
your laptop read
steps 8 -14 of Grade 7,
Lesson 4.
TCEE
Grade 8 Lesson 1
Saving for My
Future
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81
The student is expected to:
 Math
8.12C: explain how small amounts of
money invested regularly, including
money saved for college and retirement,
grow over time
 Math 8.12D calculate and compare
simple interest and compound interest
82
Saving for your education is an
investment in yourself.
83
ACTIVITY 8.1-1
Spending and Earning
How I spend my money:
Trade-offs I can make:
Other sources of income:
Total Monthly Savings:
Money to Save
Monthly
84
Calculating Interest
TCEE
Grade 8
Lesson 2
Borrowing Money
85
86
The student is expected to:
8.12A: solve real‐world problems
comparing how interest rate and loan length
affect the cost of credit
 Math 8.12B: calculate the total cost of repaying
a loan, including credit cards and easy access
loans, under various rates of interest and over
different periods using an online calculator
 Math
87
When Joaquin sat down to negotiate his
auto loan with the dealership, he was
told that he could borrow $15,000 at 6%
interest for 3 years. His payments would
be $456 per month. Joaquin explained
that he could not afford $456 per month
and he wanted a better deal. The car
dealer agreed to give Joaquin a better
deal. He told him that he could bring
down his monthly payments to $289 per
month for 5 years.
Was this a better deal?
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Activity 8.2-1
90
A Student’s Story
TCEE
Grade 8
Lesson 3
Methods of Payment
91
92
The student is expected to:
 Math
8.12E identify and explain the
advantages and disadvantages of
different payment methods
93
ATM or Debit Card
Online Banking
Credit Card
1: On the 25th of every month, Tamesha
pays her rent by writing the amount on a
small official preprinted note that contains
information about a checking account. She
puts this note in an envelope and drops it
off at the post office.
2: Inga goes to the store to buy groceries.
To pay for the groceries, she slides her card
through a card reader and enters a special
code.
3: On the 30th of every month, Maribel pays
her rent by first driving to bank to make a
withdrawal and then driving to the real
estate agency to make the payment.
Check
4: It’s time for Binh to get the oil changed in
his car. The payment for the oil change
shows up on his monthly bill for the card.
Cash
5: On the 28th of every month, Blake pays
his rent by logging on to the computer. He
goes to his bank’s website and enters his
password for access. Then he types in the
needed information to make the payment.
94
Methods of Payment
Credit Card
A credit card is a small plastic card issued by a financial
company. This card has a magnetic strip on the back. When
the card is swiped through a card reader, the owner of the
card is borrowing money from the financial company to make
the payment. Here’s what happens when the card is swiped:

The amount of the purchase is transferred from the financial
company who issued the credit card to the store’s account.
The owner of the credit card will pay for all purchases
charged to the card soon after the bill or statement arrives.
Purchases using a credit card can also be made on the
Internet. Inputting the credit card information allows the credit
card holder to borrow money from the credit card company to
make the purchase.
95
Methods of Payment
ATM or Debit Card
An ATM or debit card is a small plastic card
issued by a financial institution. This card has a
magnetic strip on the back. The card is swiped
through a card reader and a Personal
Identification Number (PIN) is entered. This
process will allow for the owner of the card to
make a payment or withdraw funds. The money
is immediately transferred from the owner’s
checking account.
96
Methods of Payment
Online Banking
An electronic payment is a process of using the
Internet to make a payment. This process
requires that the account owner input secure
information via the Internet. Accessing his or her
bank account to make a payment means that
the money will be transferred out of the account
for payment.
97
Methods of Payment
 Are
there any other methods to pay for goods
and services?
 How do consumers decide which payment to
use to make a purchase?
98
Vocabulary
 Insufficient
funds - occur when someone tries to
purchase an item using a check or debit card
without having enough money in his or her
bank account.
 Overdraft
fee – can occur when you write a
check, make an ATM transaction, use your
debit card to make a purchase, or make an
automatic bill payment or other electronic
payment for an amount greater than the
balance in your checking account.
99
Visual 8.2-3
100
ACTIVITY 8.3-2
 Read
story.
 Find clues that reveal advantages or
disadvantages about the method of
payment
 Record advantages and disadvantages
in interactive notebook.
 Look for additional clues in Activity 8.3-1
and Visual 8.3-1.
101
Methods of Payment
Cash
102
More about credit cards
 Credit
card companies offer fraud
protection
 Credit card can affect your credit history
103
More about debit cards
 Understand
overdraft protection
 Report unauthorized charges or stolen
card immediately.
104
Visual 8.2-3
105
ACTIVITY 8.3-2
 Read
story.
 Find clues that reveal advantages or
disadvantages about the method of
payment
 Record advantages and disadvantages
in interactive notebook.
 Look for additional clues in Activity 8.3-1
and Visual 8.3-1.
106
Methods of Payment
Cash
107
More about credit cards
 Credit
card companies offer fraud
protection
 Credit card can affect your credit history
108
More about debit cards
 Understand
overdraft protection
 Report unauthorized charges or stolen
card immediately.
109
CHECK FOR UNDERSTANING
 For
which methods of payment is the
consumer using his or her own money?
 For
which method of payment is the
consumer borrowing money?
 What
precautions should a consumer
consider when using a credit card?
 What
precautions should a consumer
consider when using a debit card?
 What
precautions should a consumer
consider when using an online bank?
 What
precautions should a consumer
consider when using cash?