4-H Build a Million - New Mexico

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4-H Build a Million Club is a curriculum and website designed to educate middle and high school-aged youth on investing, budgeting, using credit cards, stocks and other aspects. of personal finance. The program combines guidance for club leaders with Web tools for youth.

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  • Way, W. L. & Holden, K.C. (2009). Teachers’ background and capacity to teach personal finance: Results of a national study. Journal of Financial Counseling and Planning Education, 20(2), 64-78
  • 4-H Build a Million - New Mexico

    1. 1. 4-H BUILD A MILLIONBy Fahzy Abdul RahmanFamily Resource Management Extension SpecialistNew Mexico State University
    2. 2. ECONOMIC EDUCATION - 2011 NM: High School course required to be taken
    3. 3. PERSONAL FINANCE- 2011 NM: Not even included in the K-12 Standard
    4. 4. Surveys on Teachers ….• Teachers recognized the importance of teaching personal finance but few have had formal preparation (Way & Holden, 2009) • 89% of teachers agreed or strongly agreed: Students should be required to take a financial literacy course or pass a literacy test for high school graduation • Few teachers are teaching financial topics (29.7%) • K-12 teachers are acquiring very little formal education • only 37% of teachers had taken a related college course (ever) • only 18.9% had taken a personal finance workshop (last 3 years) • only 11.6% had taken a workshop on teaching personal finance (last 3 years)
    5. 5. NewEconomic Reality?
    6. 6. Characteristics of the “New Normal”An extended period of:-• Slow U.S. economic growth: GDP growth < 2%• Low single-digit average annual stock returns• Stubbornly high unemployment levels: 7.8% (14.7%?) • Precarious job security (public and private sector) • Youth, <25: 53% jobless or underemployed • College debt --- Next financial crisis wave. Averages at $26,500 • March 2012: College Debt > Auto Loans and Credit Card• Tightened credit standards• Declining asset values (e.g., housing)• Increased precautionary household savings and debt repayment• Decreased household spending
    7. 7. Introducing the 4-H Build a MillionCurriculum• Youth Investing Education Curriculum• Two Major Components • Educator/Volunteer Curriculum • Youth Website• In the website: Tools, interactive games and activities • to show them how to save money and discover the basics of investing• Targeted for High School Aged Students• School or Club Based Instruction• Supplement or stand alone program • Combine with other 4-H program – E.g. Goal-setting; Budgeting• It’s Free!!!
    8. 8. History of the Project• Funded by FINRA Investor Education Foundation• Started as a grant to University of Kentucky – Dr. Robert Flashman • In cooperation with Michigan State University, University of Tennessee and Virginia Tech University• June of 2010- Grant was awarded to Michigan 4-H Foundation (Erica Tobe, former Program Leader, Michigan State University Extension, hired as consultant for the project)
    9. 9. Curriculum Development Process:Review and Pilot Stages(Educator/Volunteer Guide)• Original Project Team developed the Curriculum• Reviewed by Dr. Celia Hayhoe (Virginia Tech) and Dr. Dena Wise (Tennessee) and a team of 4-H educators from MSU Extension• Piloted with 11 community sites in Michigan (each unit piloted at least three times) • 4-H Clubs • Schools • Financial Professionals• Material was revised by project consultant and edited by MSU ANR Communications staff
    10. 10. How is the Educators Guide/VolunteerCurriculum laid out?• Made up of six units comprising 16 lessons • Focus is on Investing education…• All but Unit 3 are designed to be completed in one hour• It is recommended that the lessons be completed in the order that they are listed in the curriculum• More advanced groups can skip a lesson if they are already competent in the material
    11. 11. Units and Lessons• Unit 1: Do You Have What it • Unit 4: It’s All About Risk … 121 Takes to be a Millionaire? … 7 • Lesson 12: Personal and Investment • Lesson 1: Picture Your Success Risk • Lesson 2: Making Choices • Lesson 13: Understanding Business • Lesson 3: Do you Want to be a and Economic Risk Millionaire?• Unit 2: Learning the Basics … 35 • Unit 5: Economy and Investing • Lesson 4: Budgeting Your Money … 135 • Lesson 5: Credit Cards 101 • Lesson 14: Investment Allocation • Lesson 6: Investing Your Money Decisions • Lesson 15: How is Our Economy • Lesson 7: Saving Early Doing?• Unit 3: Investment Basics … 75 • Unit 6: Putting it All Together • Lesson 8: Cash and Cash Equivalents and Next Steps … 153 • Lesson 9: Understanding and Investing • Lesson 16: As You Start Your Journey in the Stock Market • Lesson 10: Bonds Basics • Lesson 11: Understanding Mutual Funds
    12. 12. Core Components of the Program• Instructor key concepts• Quick overview handouts• Icebreakers• Discussion questions• Web resources
    13. 13. Core Components of the ProgramEach unit begins by providing the following information:• Learning objectives• Time• Materials needed• Lesson plan overview
    14. 14. Unit One: Do you have what it takes to bea Millionaire?• Lesson 1: Picture Your Success • Explore the concept of goals. • Differentiate between short, intermediate and long-term goals. • Outline the various types of goals. • Practice goal-setting techniques.
    15. 15. Unit One: Do you have what it takes to bea Millionaire?• Lesson 2: Making Choices • Review the decision-making process. • Illustrate the concept of opportunity cost. • Help youth distinguish between wants and needs.• Lesson 3: Do You Want to be a Millionaire? • Familiarize youth with the characteristics of American millionaires. • Demonstrate the advantages of making wise financial decisions.
    16. 16. Unit Two: Learning the Basics• Lesson 4: Budgeting Your Money • Familiarize youth with key concepts such as budgeting and saving. • Provide youth with an opportunity to complete a budget utilizing the “Spartan Dollar$ and Cents” simulation.• Lesson 5: Credit Cards 101 • Familiarize youth with credit card terminology. • Provide basic information about credit card usage. • Discuss using credit responsibly. • Explain how to read and understand credit card statements and agreements.
    17. 17. Unit Two: Learning the Basics• Lesson 6: Investing Your Money • Familiarize youth with key concepts such as: • Investments and Investing • Return on investments • Compounding• Lesson 7: Saving Early • Introduce youth to the benefits of beginning to invest early. • Demonstrate the value of compound interest.
    18. 18. Unit Three: Investment Basics• Lesson 8: Cash and Cash Equivalents • Familiarize youth with various cash and cash equivalent accounts available at local financial institutions. • Provide youth with practice calculating returns and making investment choices based on goals and timelines.• Lesson 9: Understanding and Investigating the Stock Market • Provide youth with a basic understanding of the stock market. • Familiarize youth with the general terminology associated with stocks, types of stocks, and the stock market. • Familiarize youth with the process of buying and selling stocks.
    19. 19. Unit Three: Investment Basics• Lesson 10: Bond Basics • Provide youth with a basic understanding of bonds. • Provide youth with an understanding of how market interest rates affect the selling price of bonds. • Illustrate to youth a simple method of calculating the yield (rate of return) of bonds and the relationship between selling price and yield.• Lesson 11: Understanding Mutual Funds • Provide youth with a basic understanding of mutual funds. • Educate youth on how to evaluate and select a mutual fund. • Educate youth on how to compare mutual funds.
    20. 20. Unit Four: It’s All About Risk…• Lesson 12: Personal and Investment Risk • Introduce youth to the concept of risk. • Have youth consider their personal risk tolerance. • Provide youth with an understanding of the risks associated with various investment vehicles.• Lesson 13: Understanding Business and Economic Risk • Provide youth with an understanding of the risks of investing • Provide youth with the ability to distinguish between business and economic risks.
    21. 21. Unit Five: Economy and Investing• Lesson 14: Investment Allocation Decisions • Encourage youth to think about how to allocate their investments. • Familiarize youth with the concepts of time and the importance of goals in the decision-making process.
    22. 22. Unit Five: Economy and Investing• Lesson 15: How is Our Economy Doing? • Teach youth to identify and think about key factors in our economy. • Explain that these factors should influence investment allocation decisions and investment choices.
    23. 23. Unit Six: Putting It All Together and NextSteps• Lesson 16: As You Start Your Journey... • Review with youth the “Picture Your Success” activity from Unit 1. • Have the youth explore their investing plans for the future. • Review the overall curriculum and discuss next steps for continuing education.
    24. 24. Let’s Explore… Where to Access the Materials? :::• http://campus.extension.org/file.php/498/Millionaires%20F inal/Index.html OR• Internet Search: “4-H Build a Million” • http://www.extension.org/pages/61531/4-h-build-a-million
    25. 25. 4-H BUILD A MILLIONBy Fahzy Abdul RahmanFamily Resource Management Extension SpecialistNew Mexico State Universityfahzy@nmsu.edu; 575-646-2253

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