Welcome to DKG and TCEE Financial Literacy Workshop. Please help yourself to coffee. Please complete the registration form while we wait. Please tweet and acknowledge our sponsors: SF and PCB. Thank you for being here! Thanks to: Mu Sigma Chapter What Role Does Texas Council on Economic Education Play? The Texas Council on Economic Education (TCEE) Teaches Teachers Who Teach Students Who Are the Future of Texas --John Anderson, TCEE Board Member This workshop and the accompanying materials are made available to teachers through the generous support of State Farm, PlainsCapital Bank, Delta Kappa Gamma/Mu Sigma Chapter and the Texas Council on Economic Education. Staff Development Annually: 2200 Educators and 2.3 million students Playful Economics • Economics • Entrepreneurship • Career/Business • Financial Literacy 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 Catherine Rinhart Program Director Laura Ewing TCEE President Debbie Mackey Stock Market Game™ Director Leonie Karkoviata Stock Market Game™ Coordinator David Pruitt Stock Market Game™ Consultant Cherry Frye Office Manager TCEE Center Directors and Staff Provide Training All Over The Great State of Texas In After School Programs, Personal Financial Literacy (PFL), Math PFL Social Studies Economics Strand, Career/CTE, Entrepreneurship, Economics, Free Enterprise System, Paying for College Allen Reding Web Manager Cindy Manzano Smarter Texas Director Valerie Johse Smarter Texas Consultant TCEE 2015 Summer Conference: • Hotel Contessa, San Antonio Riverwalk • June 18-19, 2015 • Audience: K to 12 Math PFL Teachers K to 12 Economics Strand Social Studies Secondary CTE Economics Teachers • $175 covers registration, 36 sessions, over $200 in materials, the new VE4.5 with 1400 lessons, 4 meals, reception Three Student Programs Directly Reach 22,000 students annually Stock Market Game™ Economics Challenge Personal Financial Literacy (PFL) Challenge Research indicates improved math scores on standardized tests 10 week simulation Grades 4 through 12 Teams of 2 to 5 students Virtual $100,000 to invest 20,000 Texas students participate annually Legislative & Capitol Hill Challenges Greenhill School parents thank TCEE. $10 team fees InvestWrite Open to students participating in the Stock Market Game™ Elementary, Middle and High School Competition Cash prizes from Texas Greenhill High School National Winner visited Wall Street First and 9th Place National Winners From Texas in 2014 Economics Challenge Fall and Spring Online Testing In Micro, Macro and International Economics Bellaire HS placed FIRST in the Nation in the Economics Challenge 2014 Funding provided by State Farm Personal Financial Literacy Challenge • 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 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 How Do You Get These Materials? www.economicstexas.org www.Smartertexas.org Free Council for Econ Ed Resources Online economics and financial literacy lessons Gen I Revolution teaches financial literacy through problem solving 14 Select either Browse Economics Concepts Or Browse Economics Lessons Select Grade Band Selected lesson 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 Grades K to 8 Math PFL Lessons Visit resources: • Economics texas.org • Smartertexas.org • Free lessons for grades K-8 – Lessons for grades 2-3 funded by – Lessons for grades K-1 & 4-6 funded by – Lessons for grades 7-8 funded by www.smartertexas.org under Resource tab 19 After School Programs: Never Too Young: Personal Finance for Young Learners After School Program for Elementary School Students in Personal Finance and Economics Middle School After School tied to PFL Math TEKS 20 Presentations Available Online “Recent Presentations” 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 501(c)3 Texas wide nonprofit 1801 Allen Parkway, Houston, TX 77019 [email protected] www.economicstexas.org * www.smartertexas.org P: 713.655.1650 Presenter: Laura Ewing/President The TCEE programs are made possible by the following TCEE partners. EnviroChem Services, Inc. John Anderson Trout Foundation copyDR. Less B. Fox RBC Wealth Management Board of Directors John Ivie - Chair Basden & Ivie, PC Patricia Hardy State Board of Education, Member District 11 Weatherford ISD Edmund P. Segner III Professor/Civil & Environmental Engineering Rice University Anthony Daddino Meadows, Collier, LLP Laura Jaramillo Senior Vice President Government & Community Relations Group Wells Fargo Robert Smith III President Texas A&M University Galveston Andrew DeLauro Marcus McCue Senior Vice President/Area Director Executive Vice President For Houston/Bryan/College Station Guardian Mortgage Co., Inc Citibank Pete Villarreal EVP, Chief Administrative Officer PlainsCapital Bank Thomas Fleissner President and CEO Houston Information Team, LLC Dawn Moeder Assurance Services Partner Lane Gorman Trubitt, LLP James Cooper - ex officio James C. Cooper, Inc. Aaron Gladstone Associate Hilltop Holdings Inc. Donna Normandin Senior Vice President Frost Bank John Anderson- Director Emeritus Anderson Investments Wayne Goettsche WKG Consult Rob Pivnick Vice President Goldman, Sachs & Co. Carol J. Trout - Director Emeritus Trout Foundation 1801 Allen Parkway, Houston, TX 77019 P: 713.655.1650 F: 713.655.1655 www.economicstexas.org****WWW.smartertexas.org Helping young people learn to think, choose and make better economic decisions. And Your Question IS??? Ask Laura Ewing (TCEE) or Carolyn Keck (Mu Sigma) Financial Fitness for Life • Source: Financial Fitness for Life, Grades 9-12 Spending and Credit • Engage How do you define the term “credit?” How do you define the term “debt?” What Is True About Each Statement? “Hey, it’s only plastic! Lets go for it” Household Debt and Credit Report Federal Reserve Bank of New York City Fourth Quarter 2014 Report Aggregate household debt balances increased in the fourth quarter of 2014. As of December 31, 2014, total household indebtedness was $11.83 trillion, up by $117 billion (1.0 percent) from the third quarter. Overall household debt still remains 6.7 percent below its third quarter of 2008 peak of $12.68 trillion. What is the significance of the statement above? Lenders Analyze 3 C’s • Character: Will applicant repay loan? What does his/her credit history say? • Capacity Does the person have enough income to pay debts? • Collateral Will the loan be secured or guaranteed if the borrower defaults on the loan? Exercise 11.1 • Think: – Read “What Is Credit” and highlight the main points. – Answer the questions that correspond with the reading. • Pair: – Discuss the answers with two other students. • Share: – The class will share the answers. What Is Credit? • To borrow or not borrow: that is the question. • Advantages: – Acquire assets – Obtain goods and services need and want – Helps in an emergency • Disadvantages – Run up debts cannot repay – College student aggregate debt over $1 trillion and average personal debt $29,400 by Dec. 2013 What Role Do Financial Institutions Play? • • • • Hold money May pay interest to use money deposited Lenders recoup loan plus interest Borrowers make purchases not available otherwise Exercise 11.2 • Using Common Forms of Credit, answer these questions in complete sentences: – What are the advantages of home loans and college loans compared to credit card and personal loans? – What are the disadvantages of credit cards and college loans? Closure • What is an advantage of using credit? • What is a disadvantage of using credit? • Who gains from credit transactions and how do they gain? What Will You Do? • You are 30 years old and have a nice job. What do you plan on earning at that age? ____________ • You are determining your purchases and investments. Make a plan as to what you will do about each of the following and explain why. Type of Credit Home Mortgage Car Loans College Loans Personal Loans Credit Cards What Will You Do And Why? Assessment: Essay • Using the chart, “What Will You Do?” to help guide you in writing an essay. You will need introductory and concluding paragraphs. The body paragraphs need to address these points: • How will you use credit over the next 10 years? • What do you plan to buy? • What institutions will you use to make your purchases and why? • What advantages will there be in using credit? • What disadvantages will there be in using credit? Extension: Credit Research • Identify one example of each of the four types of financial institutions listed in the chart on page 88. Find examples of each type in your community or on the Internet. Work with three other students to each contact one of these to determine the answers. It is important to ask what the annual percentage rate (APR) is. Share your answers with your team, and each records the answers while listening.