Financial literacy presentation Empowering Dreamers to Be Achievers” BSCU 2018 Leadership Conference in San Jose, CA #securethebag

1. Financial Literacy
Education
Black Students of California United Conference
March 10, 2018
Presented by Mickelin Burnes-Browne
RE Broker and Educator in Financial Literacy Education

2. Student Introduction
-This is Angie, she has questions about how her
Money,
-Budgeting and managing her Money
-Savings and Checking Accounts
-The use of Credit or Can I handle Credit/Identity Theft
-Investing so my money can Multiply and how to earn money
to invest
Notate your take aways:
_________________________________________________________
_________________________________________________________
_________________________________________________________

3. Budgeting
-Budgeting helps you reach your financial goals — especially if there are big things
you’re planning to buy. — I‘m saving for a computer. But I also like going out with my
friends. How can I save for the big stuff without totally giving up having fun? I need
a budget!
-So let’s get back to what we all want — money. Do you save it? Do you spend it the
minute you get it? it’s hard not to spend it.
-So I try to spend my money on what I really want. Like going out with my friends. To
me that has value. I give up some things to get other things. So what do I do? What is
your take away:
__________________________________________________________________
-Another way of looking at value is the price tag. Do you shop around to get the best
deal? What is your take away?___________________________
__________________________________________________________________

4. In-class Activity
Value and comparing value — Question 1
Pogo sells shirts for $14.99 each. Baja Coast has a
special deal: buy 2 and get the third at 30% off the least
expensive shirt. There are 3 shirts you want to buy. At
Baja Coast, the 3 shirts you want are $16.99, $15.99,
and $15.50. What is the least amount you can pay for
all 3 shirts?
a. 43.38
b. 43.83
c. 46.50
d. 46.48

5. Value and comparing value — Question 2
• You’re having a party and you want to buy some soda. Two different
stores are advertising the same brand and the same size bottles of
soda. You want to buy 2 bottles of soda. At which store will you get a
better buy?
• Choose only ONE answer. Remember to round your answer to the
nearest hundredth.
Store A: 3 bottles of soda for $6.50
Store B: 4 bottles of soda for $8.89

6. Opening a savings account
(Angie’s first step in saving for her computer)
First step is:
• A parent or guardian must accompany a person under 18 and must
bring 2 forms of current photo ID, including:
• Driver’s license or State ID or a Student ID will work
• Plus – Social Security number or individual tax ID number (ITIN)
• Money to deposit — ask if there’s a minimum.
• Go online or visit the bank to help you choose an account. A regular
savings account will probably be what you need, but you can ask the
bank to suggest an account that’s right for you. There may even be a
special account just for teens!
Note any take aways: _______________________________________

7. Making a savings account deposit
• Now that Angie knows how easy it is to open an account, I bet you
want to know how to put money in and get money out, so you can use
it. Don’t worry, banks make it easy.
• First let’s see how to add money, which is called making a deposit. At
the bank, you start by filling out a deposit slip. A deposit slip is a form
that tells the bank to put the money into your account. It’s easy to fill
out!
• Let’s look at Exhibit 1

8. Exhibit 1 - Deposit slip

9. You and Angie will complete
the Deposit slip
• Fill in the date.
• Make up an account number and enter it in the “Checking or savings account number” blocks.
• If you’re depositing cash, put the total amount in the “Cash” block.
• If you’re depositing checks, like, say, a birthday check, enter the check amounts in the “Total Checks”
block. (Be sure to sign the back of each check — that’s called endorsing a check. )
• Now add everything up and enter the amount on the subtotal line.
• If you want to get cash back from your deposit, put that amount in the “Less Cash Rec’d” block.
You’ll need to subtract it from the subtotal.
• Now put the total in the “Total” block — but don’t sign the slip just yet!
• A bank teller has to watch you sign, and you’ll have to show a picture ID to get cash back. Be sure to
keep your receipt.

10. Fill out a check
Angie is not yet ready to write a check for her computer, but she wants
to know how to complete a check. See Exhibit 2

11. Exhibit 2
• Angie has her name and address on the check in the upper left corner.
• The check number is in the upper right corner
• Below the check number is the date she write the check
• Pay to the order of is the person or company she is writing the check to.
• Angie write in the dollar amount of the check and write the numeric amount on the
long line
• Angie makes a memo to remind her what this item is for. In her case it is the
computer she wants.
• Angie signs her full name – Angie Martinez
• The numbers to the bottom left identifies her bank followed by her account number.

12. Using a checking account register
Now that you and Angie have written a check, let’s keep
track of it using my checking account register. It’s just as
easy as filling out a savings account register.

13. Credit and You — Introduction
• What’s the first thing you think of when you hear the word “credit”? Let me
guess…credit cards, right? You hear the word all the time, but did you ever ask what
the word credit really means?
• To put it simply, credit is about borrowing money — you know, like borrowing
money to buy something now if you don’t have the cash yourself. Think loans. Think
credit cards.
• It sounds great, doesn’t it? With credit, you don’t need to have money in your budget
— you can just borrow it, right?
• Sorry, wrong — I mean, halfway wrong. As you’ll see, yes, credit gives you
purchasing power, but only if you respect it. If you do, you’ll have what they call good
credit. But if you go out of control with your borrowing, you’ll have bad credit —
which can seriously affect your future.
• Let’s check out the difference between good and bad credit —

14. Lending and trustworthiness
• When was the last time you borrowed money? Last weekend, I
borrowed money from my friend Alicia, to share a pizza. I think I paid
her back…anyway, she’ll tell me if I didn’t!
• Alicia didn’t hesitate lending me the money because she trusts me to
pay it back. I mean, neither of us has a lot of money, so trust is really
important.
• Imagine if Alicia or I went to the bank to get money for what we really
want — something expensive, like a computer. Banks will lend you
money — but only if you have a good credit history of paying
money back.
• So here’s the question: How can you establish a good credit history?
Where do you start?

15. Credit and spending limits
• One way to begin establishing your credit history is by using credit cards. So
let’s fast-forward a few years. Let’s apply for a credit card!
• Okay, so imagine you and Angie are old enough to get your own credit card.
What will you need to do to show the bank that you can pay their money back?
• First, they’ll want to know the income from your job, and second, they’ll want to
see that you have a history of paying your bills. This information helps the bank
determine whether you’re responsible enough to pay back your debt.
• Let’s say you have a job and pay your bills — and you get a credit card! Life is
good, right? But here’s your first surprise — credit cards have spending limits!
And for your first card, the limit won’t be much, say, a $300 limit. So you only
can spend to your limit.

16. Credit and spending limits
• And remember — with credit cards, you’re borrowing money. Each
month you’ll get a bill for everything you spent. The bank or credit card
company will ask you to pay a certain amount, which is called
the minimum payment. Usually, if you pay the total amount, that’s
fine, and you’re done. But if you don’t pay it, well, here’s the second
surprise about credit cards — you’ll owe the bank interest.
• Remember that word? With credit, interest has another side to it.
Interest is a fee the bank charges you for borrowing their money. If
you’re borrowing money, interest works against you. If you’re saving
money, interest works for you!

17. Credit and spending limits
• The interest rate for credit is expressed as an annual percentage rate,
or APR. The bank may also charge an annual fee or yearly charge. And
there’s another charge you may have to pay. It’s called a late fee, and
you may have to pay it if your payment doesn’t arrive on time. Late
fees can get very expensive!

18. Credit and spending limits — Question
Use the credit calculator to answer the question.
• Amount Borrowed
• 298.95
• Annual rate
• 18%
• Monthly Payment
• $6.75
• Months to Pay
• 74
• Amount Paid
• $495
• Interest Paid
• $196

19. Identity Theft
• Identity Theft is on the rise. The 3 most common types are:
• Phishing—is the attempt to obtain sensitive information such as username
and password and credit cards details by disguising as a trustworthy source
• Farming—looking for a certain demographic, as a vunerable teen as you and
Angie
• Texting—scams can come in your text mail, example, offers of FREE stuff—If it
is too good to be true you are being targeted.
• So be careful and follow these recommendations: Do not give out personal
information over the internet, as Social Security number, credit card
numbers or any information that you would not want a stranger to have.
PROTECT YOUR INFORMATION!!

20. Smart Investing — Introduction
• How would you like to earn money without doing anything? Sounds
good to me!! Angie is serious about learning to invest. You see,
when you invest, your money can work much harder than it does in a
savings account, so you may earn even more than just interest.
• Investing is something you’ll have to wait to do — until you’re an
adult 18 or older. But just learning about investing now can help you
strengthen your skills for future investing.

21. What’s a stock?
• Have you heard people talk about the stock market? People get real excited
about it because stocks are a way to own pieces of big companies. When
you invest, you become a shareholder. Think of a company you know and
imagine owning some of their stock. Now imagine earning some of the
money they earn!
• Now let’s talk about the language of the stock market. Let’s look at the
ANY Company. The stock is referred to using its symbol, which is usually an
abbreviation of the company name. A single stock in company ANY is
called a share, and people usually buy whole shares. A share is a piece of a
company, and its value, or share price, rises and falls based on how much
people will pay for a share. People will pay money for the stock if they think
the company will be successful. If it is, its stock will increase in value.

22. Investing (continued)
• And sometimes the company will also pay its investors
a dividend. That’s when the company pays the shareholders a part of
its profits. The idea behind investing is to pick companies that you
think are going to grow and increase in value. The trick is to buy shares
when the price is low, so you can sell them when the price is high.
That’s how you make money on your money!

23. Stocks and risk
• Do you like riding roller coasters? How about jumping off the high-
dive? That’s taking a risk! When you invest, you’re also taking a risk.
After all, if a company does well, its share price will increase. If the
company doesn’t do well, the company’s stock can lose value.
• What makes an investment risky? Lots of things — and sometimes they
have nothing to do with the company itself. World events and trends
can influence the price. So can government taxes and policies. Even
consumers’ and investors’ optimism about the future of the economy
can affect overall prices.

24. Stocks = Risk
• So before you invest, do your homework! Study a company before you buy their stock. Look
at what’s happening in the U.S. and the world. Ask yourself if those events will affect the
company you want to invest in. Investing isn’t for everyone because there’s so much risk
involved. Plus, you have to be at least 18 years old. Still, it’s good to learn as much as you can
— even now — so that later, if you do invest, you’ll know what you’re doing. And if you ever
need help with investing, you can always talk with an investment advisor.
• Consider these factors of risk
• World events — natural disasters, war, political unrest
• Government — taxes and policy
• Investor optimism — or not…
• Consumer optimism — is consumer confidence up? Are people buying things?

25. Smart Investing — Conclusion
• So now you’ve learned a thing or two about investing, and how
dividends can help you make money for your big goals in life.
• Reaching those goals will take time. The stock market doesn’t increase
every day, but over the last 50 years, stocks have generally gained
value and earned investors more money than if they’d invested in safer
savings accounts.
• The more time your money is invested, the greater your chances to
earn more money. You and Angie can start now with savings accounts,
but when you both turn 18 think about buying stocks and other
investments. Time is definitely on our side!

26. RESOURCES
• FDIC “Smart Money for Teens”
• Career Profile “Where will our Jobs be in 2020”
• www.HandsonBanking.org/teens Wells Fargo
• www.insaneink.com (Students at Piedmont Hills HS – Student ran
business)
• www.stockmarketgae.org (Connect Students to the Global Economy and
Virtual Real World Investing)
• https://youtu.be/WH-wljRmU58 (Credit Stacker--Financial Literacy game
credited by Angel Rich, Young Entreprenuer)
• Dave Ramsey –Financial Peace handout “Start Now Start Now”

27. Presenter: Mickelin Burnes-Browne,
RE Broker
bre01082776