Financial Fitness for Life Training Conference Becoming a Smart Money Manager

1. Financial Fitness for LifeTraining ConferenceBecoming a Smart Money Manager University of Illinois at Urbana-Champaign College of Agricultural, Consumer and Environmental Sciences United States Department of Agriculture Local Extension Councils Cooperating University of Illinois Extension provides equal opportunities in programs and employment.

2. Funding for this workshop is provided by: National Council on Economic Education US Dept of Education University of Illinois Extension

3. Instructors • Dr. Angela Lyons, Assistant Professor, University of Illinois Urbana-Champaign (217) 244-2612; anglyons@uiuc.edu • Debra Bartman, Extension Educator, Quad Cities Center (309) 792-2500 (x217); dbartman@uiuc.edu • Patricia Hildebrand, Extension Educator, Effingham Extension Center (217) 347-5126; phildebr@uiuc.edu

4. Anecdotal Storiesfrom Real Students

5. Objectives • Introduce: (1) Financial Fitness for Life (2) Saving and Investing (3) Budgeting (4) Credit Reports and Credit Scores (5) NEFE HSFPP • Experience activities to use in the classroom • Answer questions about curriculum and other resources

6. You will receive… • Curricula with lessons and activities to use in the classroom • 6 CPDU’s • Network of colleagues to share experiences • Resources available at U of I Extension

7. Financial Fitness for Life Overview: • Teacher Guide • Student Workouts • Parents’ Guide • CD-Rom and web links

8. http://fffl.ncee.net

9. 5 Themes and 22 Lessons: • The Economic Way of Thinking • Earning Income • Saving • Spending and Using Credit • Money Management

10. Each lesson includes: • Fitness Focus (lesson description and objectives) • Workout (warm-up, exercise, cool down) • Visuals • Student Exercises • Family Activities

11. Meets national and most state content standards in 4 critical areas: • Economics • Language Arts • Mathematics • Personal Finance

12. FFFL Part 1(Lessons 1, 3, 8, 10, and 14) How to Really Be a Millionaire

13. The Millionaire Game The Rules: • For each statement, answer “TRUE” or “FALSE.” • For each correct answer, give yourself 5 points. • For each incorrect answer, take away 5 points. • For any 5 statements, you may use your “Millionaire” card. If you answer correctly, you receive 10 points. If not, you lose 10 points.

14. Let’s Get Started…. Question 1: Most millionaires are college graduates.

15. Answer 1: TRUE

16. Question 2: Most millionaires work fewer than 40 hours a week.

17. Answer 2: FALSE

18. Question 3: More than half of all millionaires never received money from a trust fund or estate.

19. Answer 3: TRUE

20. Question 4: More millionaires have American Express Gold Cards than Sears cards.

21. Answer 4: FALSE

22. Question 5: More millionaires drive Fords than Cadillacs.

23. Answer 5: TRUE

24. Question 6: Most millionaires work in glamorous jobs, such as sports, entertainment, or high tech.

25. Answer 6: FALSE

26. Question 7: Most millionaires work for big Fortune 500 companies.

27. Answer 7: FALSE

28. Question 8: Many poor people become millionaires by winning the lottery.

29. Answer 8: FALSE

30. Question 9: College graduates earn about 65% more than high school graduates earn.

31. Answer 9: TRUE

32. Question 10: If an average 18-year-old high school graduate spends as much as an average high school dropout until both are 67 years old, but the high school graduate invests the difference in his or her earnings at 8% annual interest, the high school graduate would have $5,500,000.

33. Answer 10: TRUE

34. Question 11: Day traders usually beat the stock market and many of them become millionaires.

35. Answer 11: FALSE

36. Question 12: If you want to be a millionaire, avoid the risky stock market.

37. Answer 12: FALSE

38. Question 13: At age 18, you decide not to smoke and save $1.50 a day. You invest this $1.50 a day at 8% annual interest until you are 67. At age 67, your savings from not smoking are almost $300,000.

39. Answer 13: TRUE

40. Question 14: If you save $2,000 a year from age 22 to age 65 at 8% annual interest, your savings will be over $700,000 at age 65.

41. Answer 14: TRUE

42. Question 15: Single people are more often millionaires than married people.

43. Answer 15: FALSE

44. Lesson 8: Spending vs. Saving The road to wealth…. begins with saving,then investing.

45. Managing money well means taking things one step at a time.

46. The factors that affect how much savings grow are: • Time The earlier or longer you save, the more savings you will have. • Investment Size The more you save each year from your income, the more savings you will have. • Rate of Return The higher the interest rate or rate of return, the more savings you will have.

47. Exercise 8.2A Tale of Two Savers Time Value of Money The earlier you save, the more $$’s you will have.

48. Cool Million calculator: www.myfico.com/CreditEducation/Calculators/Millionaire.aspx

49. Other Calculators: Mortgage Auto Loan Debit and Credit Cards Saving Personal Finance Investment Retirement

50. Exercise 8.3Why It Pays to Save Early and Often Rule of 72: Or, how long it takes for savings to grow to double your money Divide 72 by the interest rate. Example:72  6%  12 years