The lure of credit card offers and check-cashing stores, combined with a lack of money management education, sets many up for financial crises that can last a lifetime.
Refer students to their handout. One way to engage students is to talk about Kelly and John as if you are telling a story. For example , “Kelly learned about financial literacy when she was in high school so she understood the benefits of saving early. As soon as she graduated from college, Kelly started saving. John graduated from college with a huge credit card debt and it took him years to pay off the debt. He didn’t know how important it is to start saving early so he waited until he reached age 35.”
The above example assumes an average annual return of 8% compounded annually . Kelly saves $100 per month for 10 years starting at age 22 . This is a total savings of $12,000 over ten years. By the age of 65, these savings grow to $253,199 . John starts saving $100 dollar per month at age 35, but continues for 30 years , instead of 10 years. John’s total savings amount to $36,000, three times as much as Kelly’s. Still, by the age of 65, John’s savings grow to only $148,015 . Ask students to imagine what they can save if they start now. Additional Discussion Suggestion: The power of 72: To figure out how long it will take your money to double at a given interest rate: Divide the interest rate into 72. Your answer is roughly the number of years needed for your investment to double. Like this: 72/interest rate = years
Go through each item carefully. You have plenty of time for this seminar. Do you have a personal story or experience to share with students? The minimum monthly payment is calculated as 3% of the balance so it will decrease as the balance decreases. The table illustrates what happens if the minimum is paid each month. You may also want to use this as an opportunity to talk about Predatory Lending and other unfair lending practices. Predatory lending is the practice of convincing borrowers to agree to unfair and abusive loan terms. Although predatory lenders are most likely to target racial minorities and the elderly, victims of predatory lending are represented across all demographics. Predatory lending often occurs on loans backed by some kind of collateral, such as a car or house, so that if the borrower defaults on payment, the lender can profit by selling the repossessed or foreclosed property. Other types of lending sometimes also referred to as predatory include payday loans, credit cards, and overdraft loans, when the interest rates are considered unreasonably high.
Caution participants not to be taken by seemingly attractive financing offers from less reputable sources. That is how predatory lending takes place. Stress the difference between high and low scores, especially for total interest paid.
To engage the students in this presentation, ask a few students if they have ever borrowed money from someone else. Ask if they set any terms for repayment or interest. Then ask if they have every loaned money to someone else. Were there any terms for repayment? You can lead this into a discussion about borrowing history. Would these students loan money to that person again?
Introduction To Make A Difference Wisconsin 1
Our Mission The Make A Difference -Wisconsin mission is to enrich our community by empowering students to make sound personal financial decisions.
Times have changed <ul><li>50% of Americans are living paycheck to paycheck </li></ul><ul><li>40% of Americans are living beyond their means </li></ul><ul><li>The average household’s credit card debt is $8,565, up almost 15% from 2000 </li></ul><ul><li>Today, the average 50-year-old has only saved $2,300 for retirement </li></ul><ul><li>– American Bankruptcy Institute, Federal Reserve Board and other national experts </li></ul>
Workplace impact <ul><li>The #1 cause of stress in the workplace is personal finance. - USA Today </li></ul><ul><li>More than 40% of employees say stress over personal finances negatively impacts work productivity . </li></ul><ul><li>- Garman, Leach & Grable </li></ul><ul><li>Employees with credit delinquencies waste 20+ hours a month dealing with personal finances. </li></ul><ul><li>- Study conducted by the Center for Financial Well-Being </li></ul>Employees with financial problems impact attendance, turnover, focus, relationships, and productivity.
Their future . . . our future <ul><li>College graduates with minimal debt </li></ul><ul><li>Responsible renters or home owners </li></ul><ul><li>Capable parents </li></ul><ul><li>Valuable employees </li></ul><ul><li>Prepared retirees </li></ul>Today’s teens are tomorrow’s citizens and workforce…and they need solid personal financial skills to become:
Imagine . . . <ul><li>A generation of Wisconsin residents who are prepared financially to own their first home </li></ul><ul><li>Young entrepreneurs who have the means to start their own businesses </li></ul><ul><li>Hard working adults who are able to weather an economic downturn or a job loss </li></ul><ul><li>And, 45 years in the future, a large majority of people looking forward to a comfortable retirement </li></ul>
The MAD-WI program Three-part course: Bank Your Future Check It Out To Your Credit
Bank Your Future <ul><li>The concept and benefits of budgeting </li></ul><ul><li>How to prepare and use a budget </li></ul><ul><li>What is taken out of your paycheck? </li></ul><ul><li>Ways to save money </li></ul><ul><li>How money can grow </li></ul><ul><li>The benefits of saving early </li></ul><ul><li>Types of savings/investment products </li></ul>
The Benefits of Saving Early <ul><li>Kelly </li></ul><ul><ul><li>Starts at age 22 </li></ul></ul><ul><ul><li>Saves $100 per month for 10 years ($12,000) </li></ul></ul><ul><li>John </li></ul><ul><ul><li>Starts at age 35 </li></ul></ul><ul><ul><li>Saves $100 per month for 30 years ($36,000) </li></ul></ul><ul><li>The interest rate is 8% compounded annually. </li></ul><ul><li>Who will have more money at age 65? </li></ul>
“ Because of this program, I feel better prepared for the future.” Riverside University High School student
Check It Out <ul><li>How to open a checking account </li></ul><ul><li>Bank fees </li></ul><ul><li>Check cashing store vs. a checking account? </li></ul><ul><li>How to write a check </li></ul><ul><li>How to keep records </li></ul><ul><li>Identity Theft - how to protect yourself </li></ul>
“ I believe (this) is a good program for young people because some students don’t receive this at home.” Destiny High School Student
To Your Credit <ul><li>What is credit </li></ul><ul><li>How does a credit card work and what does it cost? </li></ul><ul><li>Using credit responsibly </li></ul><ul><li>What is a credit report & how is it used </li></ul><ul><li>What is a credit score & how it is used </li></ul><ul><li>How your credit score affects your ability </li></ul><ul><li>to buy a car or get a home mortgage </li></ul><ul><li>How to start building a good credit history </li></ul>
Credit Cards – the cost If the minimum payment is made: 6 15 10
“ Thanks for the help because I learned how to use money and credit the right way before I turn 18.” Kilmer High School student
Who we reach <ul><li>Target: </li></ul><ul><li>11 th and 12 th graders </li></ul>
Participating Schools MPS and Affiliated Schools MPS and Affiliated Schools Alliance High School (charter) Assata Alternative High School Bay View High School Bradley Tech High School Carmen HS (Choice School) CITIES Project High School (charter) Custer High School Downtown Institute of Arts and Letters
Participating Schools MPS and Affiliated Schools MPS and Affiliated Schools (cont.) El Puente High School (charter ) Foster & Williams High School Genesis High School (charter) Grandview High School (Seeds of Health) Hamilton High School Kilmer High School Lady Pitts High School Madison High School
Participating Schools MPS and Affiliated Schools MPS and Affiliated Schools (cont.) Marshall Montessori High School Metropolitan High School Milw. Academy of Aviation, Science and Tech. Milw. African American Immersion High School Milwaukee Business High School Milwaukee High School of the Arts Milwaukee School of Entrepreneurship New School for Community Service
Participating Schools MPS and Affiliated Schools MPS and Affiliated Schools (cont.) Northwest Secondary School Professional Learning Institute (charter) Pulaski High School Riverside University High School Ronald Reagan High School (charter) Rufus King High School South Division High School Truth Institute Vincent High School
Participating Schools MPS and Affiliated Schools MPS and Affiliated Schools (cont.) W.E.B. DuBois High School Washington Expeditionary Learning HS Washington IT High School Washington LEAPS High School Wings Academy Wisconsin Career Academy (charter) Wisconsin Conservatory of Lifelong Learning
Participating Schools MPS and Affiliated Schools Other Milwaukee Schools CEO Leadership Academy Destiny High School Hope School Messmer High School Pius Xi High School St. Joan Antida High School Tenor High School (Seeds of Health) Wisconsin Institute of Torah Studies
Participating Schools MPS and Affiliated Schools Suburban Schools Brookfield East High School Franklin High School Greendale High School Kettle Moraine High School Oak Creek High School
Partner Organizations A-B Credit Union ACTS - CDC ALM Realty AT&T Acorn Financial Group Affiliated Mortgage Corp. Affordable Health and More Anchor Bank Anderson Roethle, Inc. Annex Wealth Management Associated Bank Aurora Family Services Bank Mutual Bret Goodman Marketing Brown-Beasley Accounting, LLC CB Richard Ellis Catholic Family Life Insurance Century 21,Herget & Plavsic CFA Society of Milwaukee Chase Bank Citigroup Smith Barney Citizen Bank of Mukwonago City of Milwaukee Coldwell Banker Compass Properties Continental Savings Bank Countrywide Funding, Inc. Craig Realty, Inc.
Partner Organizations (cont.) Deloitte Tax, LLP Devo Properties Digital Measures Eddie Z’s Educators Credit Union Edward Jones Investments Elite Properties EMSBLA Credit Union The Equitable Bank Ferrici & Associates Financial Resource Services First Choice Mortgage First Realty GMAC First Weber Group Foley & Lardner, LLP The Foss Group GE Healthcare Generation Growth Capital Gerdes Investment Strategies Godfrey & Kahn, S.C. Great Lakes Higher Education Corp. Great Midwest Bank Greater Milw. Assoc. of Realtors Guaranty Bank Harley-Davidson Harris Bank Homesale Realty, Inc. Home Vestors
Partner Organizations (cont.) Homebuyer Associates Homes by Towne of Wisconsin Homestead Realty, Inc. Independent Care Health Plan Inland Companies Internal Revenue Service JF & Associates, Inc. Johnson Controls, Inc. Kohlenberg Consulting, LLC LaCausa, Inc. Landaas & Co. Investment Landmark Development Realty Liberty Financial Group Lubar & Company M & I Bank M & I Wealth Management M & M Office Furniture MATC MBO Cleary Advisors MGIC MPS Financial MW Bank Mandel Group Sales Marquette University McSherry Anderson, LLC MidAmerica Bank MillerCoors Milwaukee Bar Association
Partner Organizations (cont.) Milwaukee Development Milwaukee Fire Department Milwaukee Police Department Milw Metro Sewerage District Milw. Univ. Grad. School Coop Minnie Services, LLC Morgan Stanley Mortgage Bankers of WI Mason Wells Northern Oak Capital Northshore Bank Northwestern Mutual Ogden Realty Optique Capital Management PMG Educational Services, Inc Palermos PKWare Inc. Priority Mortgage Promotional Marketing Group Quarles & Brady Realty Executives Integrity Realty Executives Metro Remax Integrity Rockwell Automation Robbins & Lloyd Mortgage RPG Construction Sattell, Johnson, Appel Schaeffler Group USA
Partner Organizations (cont.) Scribner, Cohen & Company Security Insurance Service, Inc. Security Lending Group, LLC Shakespeare Wealth Management Shorewest Realtors Smith Barney Smith Realty State of Israel Bonds Stefaniak Group Stupar, Schuster & Cooper, SC Summit Credit Union SVA Wealth Management TCF Bank Trans Union, LLC Trustworthy Homes Trykor, Inc UBS Financial Services, Inc. US Bank Universal Housing Systems Universal Real Estate Services UW Extension UW-Milwaukee Virchow, Krause & Co. LLP WaterStone Bank Waukesha State Bank We Energies
Partner Organizations (cont.) Wells Fargo Advantage Funds Wells Capital Management Whyte Hirschboeck Dudek, S.C. Wisconsin Mortgage Corp. World Financial Group Ziegler Capital Management
Our accomplishments MPS and Affiliated Schools In our first three years, 555 volunteers have signed on to deliver the program 58 high schools have participated and we have reached more than 10,000 students!
Our accomplishments Proud recipient of the 2008 Governor’s Financial Literacy Award
Our Impact MPS and Affiliated Schools What are students DOING with what they learn? 10 of 41 28 of 58 9 of 14 51 of 58 40 of 58
Our Goals for 2009/2010 <ul><li>Expand programming to more schools </li></ul><ul><li>in the Greater Milwaukee area </li></ul><ul><li>Reach 6,000 students during the </li></ul><ul><li>2009/2010 school year </li></ul><ul><li>3. Engage 200 new volunteers </li></ul><ul><li>Present the opportunity to new </li></ul><ul><li>investors and expand funding sources </li></ul>MPS and Affiliated Schools
Our Generous Contributors MPS and Affiliated Schools
Our Generous Contributors MPS and Affiliated Schools ANON Charitable Trust Ralph Evinrude Foundation EverydayPhilanthropists of Greater Milwaukee
Our Generous Contributors MPS and Affiliated Schools Mosher Family Foundation Stackner Family Foundation Elizabeth A. Brinn Foundation Weiss Family Foundation Helfaer Foundation Steigleder Charitable Trust EverydayPhilanthropists of Greater Milwaukee
MAD-WI Board of Directors MPS and Affiliated Schools Officers: President: Lloyd Levin Vice President: Murray Friedman Associated Bank Secretary: Joseph Schlidt M&I Wealth Management Treasurer: Howard Schnoll RBC Dain Rauscher
MAD-WI Board of Directors MPS and Affiliated Schools Wayne Breitbarth, M&M Office Interiors Robert Bukowski, Alpha Investment Consulting Group Jill Desmond, Milwaukee Symphony Orchestra Linda Edmondson, GE Healthcare William Hotz, Retired Attorney Nina V.A. Johnson, Guaranty Bank Meridee Maynard, Northwestern Mutual Peggy Partenfelder Moede, PPM Capitol Group David Polk, City of Milwaukee
MAD-WI Advisory Council <ul><li>William Andrekopoulos, MPS </li></ul><ul><li>Curt Culver, MGIC </li></ul><ul><li>Eddie Doucette, MACC Fund </li></ul><ul><li>Michael Falbo, Associated Bank </li></ul><ul><li>Jeff Fleming, Kingston Crossing </li></ul><ul><li> </li></ul><ul><li>Frank Gimbel, GRGB Law </li></ul><ul><li>Gerald Levy, Guaranty Bank </li></ul><ul><li>David Mancl, WI DFI </li></ul>Marc Marotta, Foley & Lardner Mark Sabljak, Business Journal Mark Sain, MKE Fire Dept. Carlos Santiago, UW-M Delores Sims, Legacy Bank Dan Steininger, BizStarts MKE Robert Wild, S.J., Marquette U. Anne Zizzo, Zizzo Group