Module Target Learning Outcome

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1 OVERVIEW: LEARNING OUTCOMES AND ACTIVITIES Module 3: Earning Power Module Target Learning Outcome Boost personal earning capability. Lesson 3-1 Invest in Self 3-2 Job Benefits and Costs 3-3 Pay and Taxes 3-4 Lifestyle 3-5 Plan for Changes Target Competencies and Supporting Objectives Activities Pages Explore the payoffs of investing in yourself. Discuss the value of investing in yourself. Identify how education can impact earnings. List strategies to minimize the costs of education. Measure the value of employee benefits. Identify common types of employee benefits. Give examples of hidden costs of employment. List criteria to consider when making decisions about where to work. Assess factors that impact personal tax liability and take-home pay. Calculate net pay. List factors that impact income tax liability. List factors that impact net pay. Start down the path to achieving your lifestyle and financial goals. Identify trends that can potentially impact options in the workplace. Explore how a values and preferences impact career and job choices. Discuss how the cost of living can impact cash flow and lifestyle. Prepare to deal with life and work changes. Give examples of work-related changes that can impact financial status. Discuss ways to deal with irregular income. Identify skills, knowledge, and attitudes that employers value in the workplace. Consider entrepreneurial possibilities. Task: What is it Worth to be in Class? Task: Building a Path to My Career Task: Compare Options Activity 3.1: What do YOU Think? (optional) Activity 3.2: My Interests Activity 3.3: Worth Checking Out Activity 3.4: My Investment in Me (optional) Activity 3.5: What is the Cost? Activity 3.6: Worth the Cost? Activity 3.12: Advice for Kevin (optonal) Assessment Challenge 3-A: Education Options Task: Which Summer Job? Task: Work Settng Preferences (optional) Task: Hidden Costs of Employment Task: Benefits Analysis (optional) Activity 3.9: Compare Employment Benefits Activity 3.10: The Costs of Working Assessment Challenge 3-B: Thumbs Up or Down? Taking it Home: Investigate Job Benefits Task: Figure the Net Pay Activity 3.7: Get the W-4 Right Activity 3.8: Check it Out! Assessment Challenge 3-B: Thumbs Up or Down? Taking it Home: Examine a Paystub Task: Work Setting Preferences Task: My Future Life Task: Should I Stay or Go? Task: Tale of Two Cities Activity 3.11: My Values at Work Assessment Challenge 3-D: Plan for My Career Taking it Home: Interview Success Stories Task: Work for Myself Activity 3.13: Downsizing My Financial Plan Assessment Challenge 3-C: My Accomplishments Assessment Challenge 3-D: Plan for My Career Taking it Home: Interview Taking it Home: Seek Out a Mentor National Endowment for Financial Education Overview: Outcomes and Activities High School Financial Planning Program June 2014 Module 3: Earning Power

2 OVERVIEW: LEARNING OUTCOMES AND ACTIVITIES Module 3: Earning Power Introduction to Lessons Lesson 3-1: Invest in Self Working full time may seem a long time from now. But what you do today can greatly expand or limit the options you will have for many years to come. Every- one has skills and talents to make the most of in a career. Your potential is determined by you. Continuing your education is your best chance for securing a good job so you can live a life you want. Investing in training and education throughout your career can pay off in salary increases and promotions as well as give you fall-back options should you encounter a work interruption such as a layoff. In this lesson, students explore ways to maximize their future earning potential to achieve their dreams. Lesson 3-2: Job Benefits and Costs What do you consider when looking for a job? Pay? Hours? Schedule? Location? If you have a choice between two jobs that pay nearly the same, what criteria do you use for a decision? Although a job provides you with income, working can also impact your spending. When you have choices about job offers, you will want to weigh the benefits of each option with what you are willing to give up. All of this will help you assess job options to make decisions that match your work preferences and financial plan. In this lesson, students assess the benefits and costs of job options. Lesson 3-3: Pay and Taxes If your job pays $8 an hour and you work 20 hours, your paycheck will be $160, right? The reality is, what you earn is not the same as what you actually receive to spend as you wish. After taxes and other items are deducted from your paycheck, you will have less money in hand to save, spend, or invest. In this lesson, students investigate factors that impact take-home pay and learn about choices they have to make the most of their hard-earned money. Lesson 3-4: Lifestyle What is most important to you when deciding where to work? Overall, the more closely your values match your career, the more satisfying your work will be and the easier it will be to succeed on the job and move closer to reaching your financial goals. Decisions you make in the next few years can either give you a jumpstart on living the life you want or create detours which may limit your choices. The course you take will impact your financial goals, both short-term and long-term. In this lesson, students discover strategies to start down the path to achieve the lifestyle and financial goals of their dreams. Lesson 3-5: Plan for Change Your career will have many highs and lows. By creating a plan and continually investing in yourself, you ll get through the low times faster. A little preparation will go a long way when your income takes a dive. Of course, it s easier to prepare if you know in advance that change is coming, such as when you decide to quit a summer job to focus on school or when you move to a new city. Still, there s a lot you can do in advance to ease the stress of a layoff or unexpected work interruption. What students learn in this lesson will help them deal with temporary or unexpected drops in income National Endowment for Financial Education Overview: Outcomes and Activities High School Financial Planning Program June 2014 Module 3: Earning Power

3 TEACHER LESSON PLAN Lesson 3-1: Invest in Yourself OVERVIEW Working full time may seem a long time from now. But what you do today can greatly expand or limit the options you will have for many years to come. Everyone has skills and talents to make the most of in a career. Your potential is determined by you. Continuing your education is your best chance for securing a good job so you can live a life you want. Investing in training and education throughout your career can pay off in salary increases and promotions as well as give you fallback options should you encounter a work interruption such as a layoff. This lesson will help you maximize your future earning potential so you can achieve your dreams and live a life you enjoy. LEARNING OUTCOMES In this lesson students explore the payoffs of investing in themselves through education and by continually developing skills. Along the way they will: Discuss the value of investing in themselves, now and throughout their work lives. Identify how education can impact future earnings. List strategies to minimize the costs of advanced education. Students will use what they learn to outline a career training and preparation plan. PREPARATION Order a Module 3 Student Guide for each student. (The Guide is also available online to download.) Preview the lesson PowerPoint presentation, learning tasks, and Module 3 Student Guide, particularly pages Print or download the Student Learning Plan for this lesson so each student has a copy. WHAT YOU WILL NEED Module 3 Student Guide (pages 3-20) PowerPoint Presentation 3-1 Student Learning Plan 3-1 Task: What is it Worth to Be in Class? Task: Building a Path to My Career Task: Compare Options Internet access Activity 3.2: My Interests Activity 3.3: Worth Checking Out Activity 3.5: What is the Cost? Activity 3.6: Worth the Cost? Challenge 3-A: My Education Options NOTES: Approximate time: 45 minutes (minimum) - 90 minutes (with extension activities) 2014 National Endowment for Financial Education Lesson 3-1: Invest in Yourself High School Financial Planning Program 1 June 2014

4 TEACHER LESSON PLAN Lesson 3-1: Invest in Yourself LEARNING TASKS TEACHING NOTES MATERIALS 1. Make a list of everything you feel you are successful at or have done successfully at some time in your life small things and big things. Include all areas of your life, not just work. PROCEDURE TIME ESTIMATE: 5 minutes Ask students to think about ways they feel they have been successful already in their young lives. Display Slide 2 to prompt students to think about specific successes they have had. Allow two or three minutes for students to quietly think-write (keep the pen or pencil moving on the page) a list of personal successes. Encourage them to think of awards or honors they have achieved; successes in school, in clubs or in sports; personal skills (things they can do better than most people they know); etc. Push students to list as many items as they can, aiming for at least ten items. If students are challenged by this, have them ask friends, family members and others who know them well how they excel. NOTES: This exercise can help students increase their selfawareness. Many times, their successes can translate into transferable job skills. EXTENSION: Extended name tags: Have students consider their list and try to come up with one or two adjectives to summarize their success, skills or talents. Just one catch adjectives have to begin with the same letter as their first names. Students should then write the adjective and first name on a name tag to wear during class. Students should refer to each other by their extended name tags. (Examples: Singing Sam, Bilingual Bob, Entrepreneur Ellie.) Module 3 Student Guide Student Learning Plan SLIDE 2 Your Successes! ACTIVITY (optional) name tags 2. Gina makes good pay in her Uncle s shop but knows it s in her best interest to finish high school. Prove to her she s right! Complete the What is it Worth to be in Class? task to find out how much your time is worthwhile you are in school today. PROCEDURE TIME: 10 minutes Have students complete the What is it Worth to be in Class? task. Use this to transition into the lesson by telling the students that they will explore the payoffs of investing in themselves, which includes continuing their education. [Slide 3] Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to outline a career training and preparation plan. [Slide 4] Introduce Kevin and Gina as the young people featured in the Student Guide. The students will follow Kevin and Gina as they make decisions about their careers and training. STUDENT GUIDE Pages 3-9 SLIDES 3 Preview 4 Meet Kevin and Gina ACTIVITY Task: What is it Worth to be in Class? calculators 2014 National Endowment for Financial Education Lesson 3-1: Invest in Yourself High School Financial Planning Program 2 June 2014

5 TEACHER LESSON PLAN Lesson 3-1: Invest in Yourself LEARNING TASKS TEACHING NOTES MATERIALS EXTENSION: For more advanced students, have them research more current data on annual earnings. Assign the students to calculate out the lifetime earnings based on education level. Have students develop a formula that takes into account the recent average rate of inflation. RESOURCES: US Census, expenditures_poverty_wealth.html Bureau of Labor Statistics, Education Pays, emp/ep_chart_001.htm, the average number of years worked Social Security Administration s Myths & Facts: Raising the Social Security Retirement Age, Resources_files/MythsFactsRetAge.pdf 3. Before you decide on a college, it helps to have a sense of what your first career might be so that any education and training after high school has a purpose and will help you towards your career goal. Think of two different possible careers that sound interesting to you. Complete the Building a Path to My Career task to map out information that will help you plan your path forward. PROCEDURE TIME ESTIMATE: 20+ minutes [Slide 5] Point out the value of continuing education beyond high school. Having a haphazard career and training plan or no plan can delay the potential for future career advances and increases in income. Starting to think about career and education options now can help students take advantage of opportunities available during their teen years. (For example, enrolling in classes for college credit, ensuring coursework is completed to be eligible for entrance requirements.) Planning ahead can also reduce the risk of barriers (such as not enough credits to graduate, insufficient grades or coursework to get into a training/college program) that might impact eligibility requirements. Make sure each student has access to a computer with Internet. Distribute the Building a Path to My Career task. (You may opt to have students work in pairs if computer access is limited. Each student must still complete his or her own worksheet, and students paired together cannot choose the same careers.) Circulate among students to make sure they understand the task directions and are putting accurate information on their task worksheets. NOTES: Before this activity, it would be helpful to have students complete Activity 3.2: My Interests, Activity 3.3: Worth Checking Out, and/or perform a career interest inventory. There are several free inventories available online. O*NET has seven different free assessments available online: STUDENT GUIDE Pages 5-7 SLIDE 5 Plan Ahead for a Career ACTIVITIES Task: Building a Path to My Career Activity 3.2: My Interests Activity 3.3: Worth Checking Out Internet 2014 National Endowment for Financial Education Lesson 3-1: Invest in Yourself High School Financial Planning Program 3 June 2014

6 TEACHER LESSON PLAN Lesson 3-1: Invest in Yourself LEARNING TASKS TEACHING NOTES MATERIALS RESOURCES: O*NET Resource Center, Occupational Outlook Handbook, Exploring Career Information, Bureau of Labor Statistics, American Job Center Network, 4. A college education may be one of the most important (and expensive!) investments you will ever make. Review the Building a Path to My Career task to determine what type of advanced education best fits your needs. Then complete the Compare Options task to compare at least two options that meet your criteria. Use this information to complete Activity 3.5: What is the Cost? and Activity 3.6: Worth the Cost? PROCEDURE TIME ESTIMATE: 15+ minutes [Slide 6] Point out the value of investing in an education as a way to stay current in the job market and to have the skills needed to adapt when work situations change. Student Guide, page 11. [Slide 7] Give a general overview of how four- and two-year colleges, apprenticeship, and military programs prepare people for careers (page 12). Use Kevin s and Gina s stories to feature different routes used to gain education and training for careers. Expand or contract this conversation based on the time available, previous knowledge of your students, and the relevancy to the student grade level. Invite the students to share personal stories about education choices made by family members or friends who entered their careers via a two-year college, apprenticeship, or military program. EXTENSION: This is a good time to invite guest speakers to share details about specific education options. Encourage students to attend a local education fair. Assign students to learn more about each option through an Internet search or in-person visits. [Slides 8-9] Kick off a discussion about the costs of education by guiding the students to study the Cost of College chart on page 13. Point out ways to manage the costs of continuing education beyond high school. More detailed recommendations are provided in the Student Guide, pages Extension: Encourage students to explore these NEFE resources: 40 Money Management Tips for College Students, College CashCourse, (worksheets: Job Priorities, Job Comparison). Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources. STUDENT GUIDE Page SLIDES 6 Education is an Investment in You 7 Education Options 8 How to Manage Education Costs 9 More Ways to Manage Education Costs ACTIVITIES Task: Compare Options Task: Building a Path to My Career Activity 3.5: What is the Cost? Activity 3.6: Worth the Cost? Internet 2014 National Endowment for Financial Education Lesson 3-1: Invest in Yourself High School Financial Planning Program 4 June 2014

7 TEACHER LESSON PLAN Lesson 3-1: Invest in Yourself LEARNING TASKS TEACHING NOTES MATERIALS Make sure each student has access to the Internet. Guide students to review the information from their Building a Path to My Career task to research two options for advanced education (fouryear colleges, community or technical colleges, apprenticeship programs, or military) based on their career interests. Students should document what was listed for comparison criteria using the Compare Options task. Point out web resources on page 12 where students can narrow down options. WEB RESOURCES (available as of September 2012): College Search feature, Community College Finder, Potential apprentices an introduction, Join Armed Forces info, Have students refer back to the Building a Path to My College task and their newly completed tasks to complete Activity 3.5: What is the Cost? and Activity 3.6: Worth the Cost? NOTES: For the sake of consistency, be sure students compare the same length of degree (two-year, four-year, etc.) for each college selected. Students can substitute a two-year degree or a five-year combined degree program for their tasks as long as they are making apples to apples comparisons between their selected colleges. If students choose a shorter degree term (two-years or less), have them change the length of the loan to five years. EXTENSION: You can extend this activity by assigning the students to research financial aid options for the colleges they have selected. Students can also research potential scholarships provided by/for: academic scholarship, athletic capability, artistic talent, employer, parents employers, religious organization, community organization, military, ethnicity, place of residence, noteworthy achievements, etc. RESOURCES: College View, Peterson s, 5. Complete Challenge 3-A: My Education Options. PROCEDURE In- class or out-of-class assignment Assign the students to complete Challenge 3-A: My Education Options to consider their best type of training options(s). SLIDE 10 - Challenge ACTIVITY Challenge 3-A: My Education Options 2014 National Endowment for Financial Education Lesson 3-1: Invest in Yourself High School Financial Planning Program 5 June 2014

8 TEACHER LESSON PLAN Lesson 3-1: Invest in Yourself LEARNING TASKS TEACHING NOTES MATERIALS REFLECTION PROCEDURE In-class or out-of-class Tell students to reflect on the following two questions: What are the three greatest challenges I will face when preparing for my first career? What are the greatest opportunities I might encounter while preparing for my first career? SLIDE 11 - Reflection FURTHER STUDY Investigate the cost of remediation. PROCEDURE In-class or out-of-class assignment PREP: Contact your local community college to see if you can arrange for practice testing. If it is not possible for students to take the Accuplacer or similar placement test, ask the Placement Testing Center staff of a local college or university if you can get old copies of any placement tests they have used in the past. Try to get at least one math test (Algebra) and one English test (Reading Comprehension). RESOURCE: College Board, Describe the difference between admissions tests (such as the SAT or ACT) and college placement exams (such as the Accuplacer). ACTIVITY College information Internet Access to practice or actual college placement test such as the Accuplacer FURTHER STUDY PROCEDURE In-class or out-of-class assignment Internet Explore growing industry career opportunities. Direct the students to independently consider two possible careers to pursue, one that represents their passions and one that would make a good fallback option. Prompt the students to research the two current fastest growing industries and then explain how their chosen career options can apply to each growing industry. Provide students with examples to get them started. For example, a career with plenty of openings, one that would allow for advancement, and one that provides a livable wage, etc.). RESOURCE: FURTHER STUDY: Are you college ready? Check to see how well you perform on a college placement test, and then calculate the cost of remediation, if needed. FURTHER STUDY Consider two possible careers for yourself one that represents your passion and one that would make a good fallback option. Research the two current fastest growing industries. How can you apply your chosen career options to each growing industry? 2014 National Endowment for Financial Education Lesson 3-1: Invest in Yourself High School Financial Planning Program 6 June 2014

9 High School Financial Planning Program Lesson 3-1: Invest in Yourself 2014 National Endowment for Financial Education 0

10 High School Financial Planning Program Lesson 3-1: Invest in Yourself Display this slide as you introduce today s lesson National Endowment for Financial Education 1

11 High School Financial Planning Program Lesson 3-1: Invest in Yourself Ask students to think about ways they feel they have been successful already in their young lives. Display this slide to prompt students to think about specific successes they have had. Allow two or three minutes for students to quietly think-write (keep the pen or pencil moving on the page) a list of personal successes. Encourage them to think of awards or honors they have achieved; successes in school, in clubs or in sports; personal skills (things they can do better than most people they know); etc. Push students to list as many items as they can, aiming for at least ten items. If students are challenged by this, have them ask friends, family members and others who know them well how they excel. NOTES: This exercise can help students increase their self-awareness. Many times, their successes can translate into transferable job skills. EXTENSION: Extended name tags: Have students consider their list and try to come up with one or two adjectives to summarize their success, skills or talents. Just one catch adjectives have to begin with the same letter as their first names. Students should then write the adjective and first name on a name tag to wear during class. Students should refer to each other by their extended name tags. (Examples: Singing Sam, Bilingual Bob, Entrepreneur Ellie.) 2014 National Endowment for Financial Education 2

12 High School Financial Planning Program Lesson 3-1: Invest in Yourself Have students complete the What is it Worth to Be in Class? task. Use this to transition into the lesson by telling the students that they will explore the payoffs of investing in themselves, which includes continuing their education. Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to outline a career training and preparation plan National Endowment for Financial Education 3

13 High School Financial Planning Program Lesson 3-1: Invest in Yourself Introduce Kevin and Gina as the young people featured in the Student Guide. The students will follow Kevin and Gina as they make decisions about their careers and training. EXTENSION: For more advanced students, have them research more current data on annual earnings. Assign the students to calculate out the lifetime earnings based on education level. Have students develop a formula that takes into account the recent average rate of inflation. RESOURCES: US Census, Bureau of Labor Statistics, Education Pays, the average number of years worked Social Security Administration s Myths & Facts: Raising the Social Security Retirement Age, National Endowment for Financial Education 4

14 High School Financial Planning Program Lesson 3-1: Invest in Yourself Student Guide, pages 5-7 Point out the value of continuing education beyond high school. Having a haphazard career and training plan or no plan can delay the potential for future career advances and increases in income. Starting to think about career and education options now can help students take advantage of opportunities available during their teen years. (For example, enrolling in classes for college credit, ensuring coursework is completed to be eligible for entrance requirements.) Planning ahead can also reduce the risk of barriers (such as not enough credits to graduate, insufficient grades or coursework to get into a training/college program) that might impact eligibility requirements. Make sure each student has access to a computer with Internet. Distribute the Building a Path to My Career task. (You may opt to have students work in pairs if computer access is limited. This activity will take more time if students are paired. Each student must still complete his or her own worksheet and students paired together cannot choose the same careers.) Circulate among students to make sure they understand the worksheet directions and are putting accurate information on their worksheets. NOTES: Before this activity, it would be helpful to have students complete Activity 3.2: My Interests, Activity 3.3: Worth Checking Out, and/or perform a career interest inventory. There are several free inventories available online. O*NET has seven different free assessments available online: RESOURCES: O*NET Resource Center, Occupational Outlook Handbook, Exploring Career Information, Bureau of Labor Statistics, American Job Center Network, National Endowment for Financial Education 5

15 High School Financial Planning Program Lesson 3-1: Invest in Yourself Student Guide, pages 9-11 Point out the value of investing in an education as a way to stay current in the job market and to have the skills to adapt to changes in work situations. Study the content on Student Guide, page National Endowment for Financial Education 6

16 High School Financial Planning Program Lesson 3-1: Invest in Yourself Student Guide, pages Give a general overview of how four- and two-year colleges, apprenticeship, and military programs prepare people for careers (page 12). Use Kevin s and Gina s stories to feature different routes used to gain education and training for careers. Expand or contract this conversation based on the time available, previous knowledge of your students, and the relevancy to the student grade level. Invite the students to share personal stories about education choices made by family members or friends who entered their careers via a two-year college, apprenticeship, or military program. EXTENSION: This is a good time to invite guest speakers to share details about specific education options. Encourage students to explore each option by attending a local education fair. Assign students to learn more about each option through an Internet search or in-person visits National Endowment for Financial Education 7

17 High School Financial Planning Program Lesson 3-1: Invest in Yourself Student Guide, pages Kick off a discussion about the costs of education by guiding the students to study the Cost of College chart on page 13. Point out ways to manage the costs of continuing education beyond high school. More detailed recommendations are provided in the Student Guide. (This continues onto the next slide.) Extension: Encourage students to explore additional tips provided in NEFE resources: 40 Money Management Tips for College Students, CashCourse Prep, Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources. - Financial Basics - Paying for College - College Life 2014 National Endowment for Financial Education 8

18 High School Financial Planning Program Lesson 3-1: Invest in Yourself Student Guide, pages (Continued) Point out additional ways to manage the costs of continuing education beyond high school. Make sure each student has access to the Internet. Guide students to review the information from their Building a Path to My Career task to research two options for advanced education (four-year colleges, community or technical colleges, apprenticeship programs, or military) based on their career interests. Students should document what was listed for comparison criteria using the Compare Options task. Point out web resources on page 12 where students can narrow down options. WEB RESOURCES (available as of September 2012): - College Search feature, - Community College Finder, - Potential apprentices an introduction, - Join Armed Forces info, Finally, have students refer back to the Building a Path to My College task and their newly completed tasks to complete Activity 3.5: What is the Cost? and Activity 3.6: Worth the Cost? NOTES: For the sake of consistency, be sure students compare the same length of degree (two-year, four-year, etc.) for each college selected. Students can substitute a two-year degree or a five-year combined degree program for their tasks as long as they are making apples to apples comparisons between their selected colleges. If students choose a shorter degree term (two-years or less), have them change the length of the loan to five years. EXTENSION: You can extend this activity by encouraging the students to research financial aid options for the colleges they have selected. Students can also research potential scholarships provided by/for: academic scholarship, athletic capability, artistic talent, employer, parents employers, religious organization, community organization, military, ethnicity, place of residence, noteworthy achievements, etc. RESOURCES: College View, Peterson s, National Endowment for Financial Education 9

19 High School Financial Planning Program Lesson 3-1: Invest in Yourself In-class or out-of-class Assign the students to complete Challenge 3-A: My Education Options to consider their best type of training option(s) National Endowment for Financial Education 10

20 High School Financial Planning Program Lesson 3-1: Invest in Yourself In-class or out-of-class Tell students to reflect on the two questions about challenges and opportunities National Endowment for Financial Education 11

21 High School Financial Planning Program Lesson 3-1: Invest in Yourself 2014 National Endowment for Financial Education 12

22 STUDENT LEARNING PLAN Lesson 3-1: Invest in Yourself OVERVIEW Working full time may seem a long time from now. But what you do today can greatly expand or limit the options you will have for many years to come. Everyone has skills and talents to make the most of in a career. Your potential is determined by you. Continuing your education is your best chance for securing a good job so you can live a life you want. Investing in training and education throughout your career can pay off in salary increases and promotions as well as give you fallback options should you encounter a work interruption such as a layoff. This lesson will help you maximize your future earning potential so you can achieve your dreams and live a life you enjoy. LEARNING OUTCOMES In this lesson you will explore the payoffs of investing in yourself through education and by continually developing skills. Along the way you will: Discuss the value of investing in yourself, now and throughout your work life. Identify how education can impact your future earnings. List strategies to minimize the costs of advanced education. Use what you learn to outline a career training and preparation plan LEARNING TASKS These tasks match pages 3-20 in Student Guide 3. Make a list of everything you feel you are successful at or have done successfully at some time in your life small things and big things. Include all areas of your life, not just work. Gina makes good pay in her Uncle s shop but knows it s in her best interest to finish high school. Prove to her she s right! Complete the What is it Worth to be in Class? task to find out how much your time is worth while you are in school today. Before you decide on a college, it helps to have a sense of what your first career might be so that any education and training after high school has a purpose and will help you towards your career goal. Think of two different possible careers that sound interesting to you. Fill out the Building a Path to My Career task to map out information that will help you plan your path forward. A college education may be one of the most important (and expensive!) investments you will ever make. Review the Building a Path to My Career task to determine what type of advanced education best fits your needs. Then complete the Compare Options task to compare at least two options that meet your criteria. Use this information to complete Activity 3.5: What is the Cost? and Activity 3.6: Worth the Cost? Consider the best type of training option(s) for you. Complete Challenge 3-A: My Education Options. FURTHER STUDY: Are you college ready? Check to see how well you perform on a college placement test, and then calculate the cost of remediation, if needed. FURTHER STUDY Consider two possible careers for yourself one that represents your passion and one that would make a good fallback option. Research the two current fastest growing industries. How can you apply your chosen career options to each growing industry? 2014 National Endowment for Financial Education Lesson 3-1: Invest in Yourself High School Financial Planning Program June 2014

23 Activity 3.1: What do YOU Think? NAME: DATE: 1. What type of life do you see yourself living the year after high school? 2. Now, jump ahead a few years to your life at age 25. How will your life be different? 3. Finally, what will your life be like when you re the same age as your parents are now? 2014 National Endowment for Financial Education Activity 3.1: What do YOU Think? High School Financial Planning Program June 2014

24 Activity 3.2: My Interests NAME: DATE: Directions: In the space below, write words or draw pictures for 10 things that you like to do in your free time, in school, or on the job. Things I Like to Do 2014 National Endowment for Financial Education Activity 3.2: My Interests High School Financial Planning Program June 2014

25 Activity 3.3: Worth Checking Out NAME: DATE: Directions: 1. Review your interests list from Activity 3.2 and the results of any career interest surveys that you have completed in the past two years. 2. Identify two careers you are interested in learning more about. 3. Choose one that represents your passion and one that might be a good fallback option, or Plan B. Go to the American Job Center Network (jobcenter.usa.gov), a one-stop website where you can do the following: take an interest assessment explore careers research education opportunities plan a job search Plan A: Plan B: 2014 National Endowment for Financial Education Activity 3.3: Worth Checking Out High School Financial Planning Program June 2014

26 Activity 3.4: My Investment in Me NAME: DATE: Directions: List three ways that you have already invested in building skills and planning for a job or career. How else can you invest in yourself over the next one to three years? Already Invested Next Investment Strategies 2014 National Endowment for Financial Education Activity 3.4: My Investment in Me High School Financial Planning Program June 2014

27 Activity 3.5: What is the Cost? NAME: DATE: Directions: Compare the most recently published annual costs to attend and live on campus at three different colleges. Tip: You can find the estimated cost of attendance on college websites. Research costs of a college from each one of the following categories: private nonprofit college in-state public college out-of-state public college College Type Private In-State Out-of-State College Name Annual Costs $ $ $ 2012 National Endowment for Financial Education Activity 3.5: What is the Cost? High School Financial Planning Program April 2013

28 Activity 3.6: Worth the Cost? NAME: DATE: Directions: Look up the average annual salaries for the careers you listed in Activity 3.3: Worth Checking Out. Use the college cost amounts from Activity 3.5: What is the Cost to compare the average salaries with four years of average college costs at private and public schools. Based on your comparison, which school options seem financially reasonable for the careers you are considering? Be prepared to defend your response National Endowment for Financial Education Activity 3.6: Worth the Cost? High School Financial Planning Program June 2014

29 Activity 3-12: Advice for Kevin NAME: DATE: Directions: Imagine that Kevin lives and attends school in your community. Recommend three strategies he can use to learn more about careers in the health care industry National Endowment for Financial Education Activity 3.12: Advice for Kevin High School Financial Planning Program June 2014

30 Task: What is it Worth to Be in Class? NAME: DATE: Directions: Calculate how much getting that high school diploma is worth. Given the average lifetime earnings for i : Professional Degree... $4,159,000 Doctoral Degree... $3,525,000 Master s Degree... $2,834,000 College graduate with bachelor s degree... $2,422,000 Two-year college associate s degree... $1,813,000 High school diploma (or GED)... $1,371,000 Less than high school... $ 936, Figure the difference in potential income between a high school graduate and someone who did not go to school beyond the ninth grade: $ 1,371,000 Average lifetime earnings (high school diploma) $ 936,000 Average lifetime earnings (ninth-grade education or less) = $ (A) Potential additional future earnings for a high school graduate 2. Divide the potential additional future earnings for a high school graduate (A) by the number of years typically spent in high school: $ (A) Potential additional future earnings for a high school graduate (A) 4 years = $ (B) Potential additional future earnings associated with each year of high school 3. Divide the potential additional future earnings per school year (B) by the average number of school days per school year (C): $ (B) Potential additional future earnings per school year (for a high school graduate) (B) 180 days per school year = $ (C) Approximate value of a day s education for a high school graduate i Note: Based on the sum of median 2011 earnings of workers aged 25 to 64 who maintain full-time, year-round employment over a 40-year time period. No allowance is made for the shorter work life resulting from time spent in college or out of the labor force for other reasons. Source: U.S. Census Bureau, 2011 American Community Study. Additional Source: Sandy Baum, Jennifer Ma and Kathleen Payea; Education Pays 2010: The Benefits of Higher Education for Individuals and Society, College Board Advocacy & Policy Center National Endowment for Financial Education Task: What is it Worth to Be in Class? High School Financial Planning Program June 2014

31 Task: What is it Worth to Be in Class? NAME: KEY DATE: Directions: Calculate how much getting that high school diploma is worth. Given the average lifetime earnings for i : Professional Degree... $4,159,000 Doctoral Degree... $3,525,000 Master s Degree... $2,834,000 College graduate with bachelor s degree... $2,422,000 Two-year college associate s degree... $1,813,000 High school diploma (or GED)... $1,371,000 Less than high school... $ 936, Figure the difference in potential income between a high school graduate and someone who did not go to school beyond the ninth grade: $ 1,371,000 Average lifetime earnings (high school diploma) $ 936,000 Average lifetime earnings (ninth-grade education or less) = $ 435,000 (A) Potential additional future earnings for a high school graduate 2. Divide the potential additional future earnings for a high school graduate (A) by the number of years typically spent in high school: $ 435,000 (A) Potential additional future earnings for a high school graduate (A) 4 years = $ 108,750 (B) Potential additional future earnings associated with each year of high school 3. Divide the potential additional future earnings per school year (B) by the average number of school days per school year (C): $ 108,750 (B) Potential additional future earnings per school year (for a high school graduate) (B) 180 days per school year = $ (C) Approximate value of a day s education for a high school graduate i Note: Based on the sum of median 2011 earnings of workers aged 25 to 64 who maintain full-time, year-round employment over a 40-year time period. No allowance is made for the shorter work life resulting from time spent in college or out of the labor force for other reasons. Source: U.S. Census Bureau, 2011 American Community Study. Additional Source: Sandy Baum, Jennifer Ma and Kathleen Payea; Education Pays 2010: The Benefits of Higher Education for Individuals and Society, College Board Advocacy & Policy Center National Endowment for Financial Education Task: What is it Worth to Be in Class? - KEY High School Financial Planning Program June 2014

32 Task: Building a Path to My Career NAME: DATE: Directions: Use the Occupational Outlook Handbook and/or labor market and occupational data from your state to research information for your top two career choices. Then, compare your answers to a classmate s. Two examples are done for you. Occupation Hairdresser* Architect* Employment Outlook better than average (20 percent growth) better than average (16 percent growth) Expected Entry-Level Wage (hourly or annually) Possible Concerns Hiring Requirements about $10 per hour plus tips 44 percent are self-employed competition for higher paying openings is high License, post-high school training About $60,000 per year About 21 percent are self-employed Stiff competition, for jobs in most prestigious firms. Many work more than 50 hours per week To get licensed: 5 yr. professional degree, 3+ years of practical work, training, and pass license exam School or College Where I Can Train Diva Hairdressing Academy XXX State University Length of Training 1,000 hours Minimum 6 years Cost of Training Approximately $11,857 Approximately $132,744 Three Skills I Can Develop Now to Prepare build communication skills learn budgeting develop marketing skills research (Where is new construction?) time/stress management computer-aided drawing *Occupation data is based on 2011 available data National Endowment for Financial Education Task: Building a Path to My Career High School Financial Planning Program June 2014

33 Task: Building a Path to My Career Now it s your turn. Gather information about two careers that are interesting to you. Occupation Employment Outlook Expected Entry-Level Wage (hourly or annually) Possible Concerns Hiring Requirements School or College Where I Can Train Length of Training Cost of Training Three Skills I Can Develop Now to Prepare 2014 National Endowment for Financial Education Task: Building a Path to My Career High School Financial Planning Program June 2014

34 Task: Compare Options NAME: DATE: Directions: Compare at least two post-secondary education or training options based on your future career interests. You may find one of the following websites helpful in your search. College Search feature, Community College Finder, Potential Apprentices An Introduction, Join Armed Forces info, Feature Option A Option B College or Program Name Location (City, State) Internship opportunities Work-study opportunities Study abroad opportunities Job placement rate Cost per year Cost for degree or program (if tuition rates and fees remain stable) Potential cost of 15-year student loan (assume four years of college and a loan with 8 percent interest) Monthly student loan payment Potential career(s) with this degree or certificate Average annual salary Monthly salary Percent of monthly salary required to pay back student loan (if applicable) 2014 National Endowment for Financial Education Task: Compare Options High School Financial Planning Program June 2014

35 Challenge 3-A: My Education Options NAME: DATE: For this challenge task, use what you have learned in Lesson 3-1: Invest in Yourself and other career-related study to make a thoughtful decision about training for a future career. Select the best type of education or training program for you as you prepare for a career that interests you now. For future reference as your life circumstances and interests change, add this decision summary to your personal financial planning portfolio. Directions: 1. Apply what you have learned about criterion-based decision making as you complete this challenge. Review the six DECIDE action steps to guide your work (Page 40 Appendix or Module 1 Student Guide, page 20). Preview the criteria listed in the Scoring Guide to plan for your assessment. 2. Use the chart below or create a separate document to summarize your decision-making process. Take into consideration your current circumstances and values. Ask for input from someone who knows you well enough to help you explore realistic options that are most suitable to your circumstances, values, and preferences. 3. Using the Scoring Guide, self-assess your work, and also ask a classmate to peer assess your work. DECIDE Steps My Situation 1 Define your goal. 2 Establish your criteria. 3 Choose three good options. 4 Identify the pros and cons of the options. 5 Decide what s best. 6 Evaluate the results National Endowment for Financial Education Challenge 3-A: My Education Options High School Financial Planning Program June 2014

36 Challenge 3-A: My Education Options NAME: DATE: Content 1. Required Criteria In one sentence you state what you want to achieve as a result of the decision-making process. acceptable Status not acceptable 2. Outcome involves a major decision related to skill training beyond high school. acceptable not acceptable 3. You justify how the decision and outcome relates to your current circumstances and values. acceptable not acceptable 4. Summary lists at least six criteria for an acceptable outcome, including the features or circumstances you absolutely must have as well as those you would like to have or will not accept. acceptable not acceptable Option Status Rating Key: A = Acceptable / NA = Not Acceptable Option A Option B Option C 5. Summary includes details about three possible options. 6. You devise a way to illustrate how well each option matches your criteria. 7. You point out the option that you have chosen. acceptable not acceptable 8. You justify why the chosen option was selected. acceptable not acceptable General You choice is logical based on the known circumstances, stated criteria, and potential to achieve the desired outcome. You summarize what you do and don t like about your choice and justify any modifications that were made in the purpose, criteria, or options. acceptable acceptable not acceptable not acceptable 11. Content is clearly stated with distinct detail. acceptable not acceptable 12. Documentation is neat and easy to read. acceptable not acceptable 13. Information about the options is accurate or can be verified. acceptable not acceptable Feedback: Score: / 2014 National Endowment for Financial Education Challenge 3-A: My Education Options High School Financial Planning Program June 2014

37 TEACHER LESSON PLAN Lesson 3-2: Job Benefits and Costs OVERVIEW What do you consider when looking for a job? Pay? Hours? Schedule? Location? If you have a choice between two jobs that pay nearly the same, what criteria do you use for a decision? Although a job provides you with income, working can also impact your spending. When you have choices about job offers, you will want to weigh the benefits of each option with what you are willing to give up. All of this will help you assess job options to make decisions that match your work preferences and financial plan. LEARNING OUTCOMES In this lesson students measure the value of employee benefits. Along the way they will: Identify common types of employee benefits. Give examples of hidden costs of employment. List criteria to consider when making decisions about where to work. Students will use what they learn to assess the benefits and costs of job options. PREPARATION Order a Module 3 Student Guide for each student. (The Guide is also available online to download.) Preview the lesson PowerPoint presentation, learning tasks, and Module 3 Student Guide, particularly pages Print or download the Student Learning Plan for this lesson so each student has a copy. WHAT YOU WILL NEED Module 3 Student Guide (pages 25-29) PowerPoint Presentation 3-2 Student Learning Plan 3-2 Task: Which Summer Job? Task: Benefits Analysis (extension) Task: Hidden Costs of Employment (Scenarios) Task: Work Setting Preferences (optional) Activity 3.9: Compare Employee Benefits Activity 3.10: The Costs of Working Challenge Assignment 3-B: Thumbs Up or Thumbs Down? Clock, prize (optional) for Task 4 NOTES: Approximate time: 45 minutes (minimum) - 90 minutes (with extension activities) Additional Resource: College CashCourse, (worksheets: Job Priorities, Job Comparison). Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources National Endowment for Financial Education Lesson 3-2: Job Benefits and Costs High School Financial Planning Program 1 June 2014

38 TEACHER LESSON PLAN Lesson 3-2: Job Benefits and Costs LEARNING TASKS TEACHING NOTES MATERIALS 1. Where have you worked? Why did you choose that particular job and business? PROCEDURE Time Estimate: 5 minutes [Slide 2] Introduce the lesson by asking students to share (either with the whole class or with a partner) where they work or have worked. Gather information about why students choose to work specific jobs or for specific employers. As appropriate throughout the lesson, reference these examples to relate to student situations. [Slide 3] Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to weigh job benefits and costs to assess employment options. Module 3 Student Guide Student Learning Plan SLIDES 2 Your Job Choices 3 Preview 2. Both Kevin and Gina are lucky they already have jobs. Summertime and the holidays often provide teens with their first working experience. Complete the Which Summer Job? task to recommend the best job option for another teen. PROCEDURES TIME: 10 minutes Arrange for students to work in pairs or small groups to complete the Which Summer Job? task. Arrange for students to read about Nicholas s two summer job options. Tell students to be prepared to share the team s recommendation and reason for the recommendation. Compare how many students selected the gym versus the pool. EXTENSION: Have the students create a third job offer for Nicholas at a local fast food restaurant or sit-down restaurant. Students need to consider details for each benefit category. SLIDE 4 Help Nicholas Decide ACTIVITY Task: Which Summer Job? 3. What s it worth? Compare the value of different benefits for two hypothetical job offers with the same salary as you complete Activity 3.9: Compare Employee Benefits. Be ready to share with the class which offer you would take and why. PROCEDURES: TIME: 10 minutes [Slide 5] Provide an overview of typical types of employee benefits and how the benefits add value to the work pay. Consider sharing personal examples of types of benefits you have received on current and past jobs. Invite students to share examples of benefits for their own jobs. Point out that the benefits (compensation package) provided by employers vary from job to job. Facilitate a discussion about why employers do or do not choose to provide benefits to their employees. (Student Guide, pages 25-27) STUDENT GUIDE Pages SLIDE 5 Employee Benefits Add Value to Jobs ACTIVITIES Task: Benefits Analysis Activity 3.9: Compare Employee Benefits calculators 2014 National Endowment for Financial Education Lesson 3-2: Job Benefits and Costs High School Financial Planning Program 2 June 2014

39 TEACHER LESSON PLAN Lesson 3-2: Job Benefits and Costs LEARNING TASKS TEACHING NOTES MATERIALS Arrange for students to work in pairs or small groups to complete Activity 3.9: Compare Employee Benefits. Make sure each pair of students has at least one calculator available. Read the directions to the students. Figure out how each benefit will add to or take away from your annual salary. If you have extra time, see if you can forecast how each benefit could impact your bottom line after ten years. After you consider the different benefits, decide if you would accept Offer A or Offer B. As students work, circulate among the students. Be ready to explain the different benefits and their importance to students. Help any pairs of students who may be struggling with the mathlike word problems. After five minutes or so, ask students to share their answers, explaining which offer is better for each benefit. Ask several students to volunteer which offer they would accept and why. EXTENSION: As a follow-up, ask students to consider the longterm impact (meaning, ten years from now) for each benefit. Some impacts can be measured in dollars; others can be measured by more indirect measures such as quality of life. Or, distribute the Benefits Analysis task for students to predict the long-term impact of various employee benefits. 4. How many hidden costs can you find in an employment scenario? Complete Activity 3.10: The Costs of Working to list any extra expenses you have had due to work. PROCEDURES TIME: 15 minutes Ask students to share what they find inconvenient about working. Note any themes that emerge such as hours or scheduling issues. Select responses as examples of costs related to the job as you transition into the next task. Divide the class into groups and assign each group one of the employment scenarios from the Hidden Costs of Employment scenarios task. Allow three minutes for students to read the scenario and brainstorm as many costs as they can think of that the students in the scenarios might encounter for their respective jobs. When time is up, have the students report back on how many costs they thought of for their scenario. Have students list out the costs to the class; you get final say as to whether a cost is legitimate or not. If you desire, award a group winning status and a fitting prize. STUDENT GUIDE Pages SLIDE 6 What are Hidden Costs of Working? ACTIVITIES Task: Hidden Costs of Employment scenarios Activity 3.10: The Costs of Working Stop watch (optional: prizes) Internet (optional) 2014 National Endowment for Financial Education Lesson 3-2: Job Benefits and Costs High School Financial Planning Program 3 June 2014

40 TEACHER LESSON PLAN Lesson 3-2: Job Benefits and Costs LEARNING TASKS TEACHING NOTES MATERIALS [Slide 6] Give examples of additional costs to fill in gaps that were not addressed during the previous task. Assign students to complete Activity 3.10: The Costs of Working, either in class or out of class. This is a good time to explain that not all costs are monetary. In some cases, opportunity costs involve the next best option that was given up when a choice is made as in the case of Uncle Frank s employee (Student Guide, page 29). EXTENSION: Using the Internet, have students research the actual costs for each scenario. [Optional] Review a list of Work Setting Preferences, and circle the ten that are most important to you. Based on your preferences, write a paragraph that describes what a day working at your ideal job would be like. PROCEDURES TIME: 15 minutes [Optional in this lesson or complete in Lesson 3-4] Have students complete the Work Setting Preferences task to indicate what is important to them when working. Assign the students to write a paragraph that describes their ideal job or employment opportunity. Remind students to use proper writing techniques, such as creating a topic sentence and supporting that sentence with specific examples and details. STUDENT GUIDE Pages ACTIVITY Task: Work Setting Preferences 5. Complete Challenge 3-B: Thumbs Up or Thumbs Down? to identify potential job options that match your preferences. PROCEDURE In- class or out-of-class assignment Assign the students to complete Challenge 3-B: Thumbs Up or Thumbs Down. This Challenge is appropriate to assign with this lesson or after completing Lesson 3-4. Resource: This is a good time to introduce students, particularly students in Grades 11-12, to the college CashCourse website, Here they will find helpful resources such as a Job Priorities worksheet and a Job Comparison worksheet. Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources. STUDENT GUIDE Page 32 SLIDE 7 Challenge Assignment ACTIVITY Challenge 3-B: Thumbs Up REFLECTION What employee benefits are particularly important to you? PROCEDURES In-class or out-of-class assignment Ask students to list the employee benefits that are particularly important to them now. Have them think about the additional benefits they might want when considering future jobs when they are living on their own. SLIDE 8 - Reflection 2014 National Endowment for Financial Education Lesson 3-2: Job Benefits and Costs High School Financial Planning Program 4 June 2014

41 TEACHER LESSON PLAN Lesson 3-2: Job Benefits and Costs LEARNING TASKS TEACHING NOTES MATERIALS TAKING IT HOME PROCEDURES Out-of-class assignment STUDENT GUIDE Pages Ask an adult about any employee benefits s/he receives with the job. Assign the students to talk to an adult about any company benefits he or she may have. Ask if the adult had a choice over any of the benefits and, if so, what influenced his or her final decisions. FURTHER STUDY PROCEDURES In-class or out-of-class assignment Internet Gather information about benefits offered by a company of your choice. Assign students to search company websites (or interview local employers) to gather information about benefits that are offered to employees. Estimate the approximate worth of those benefits. Calculate the total worth of an entry level job (salary plus benefits). Sources of company information: Monster.com, Salary.com About.com s Job Searching TAKING IT HOME Talk to an adult about any company benefits he or she may have. Ask if this person had a choice over any of the benefits and, if so, what influenced his or her final decisions about the job and benefits. REFLECTION What employee benefits are particularly important to you now? When you are living on your own, what additional benefits will you want when considering future jobs? FURTHER STUDY List at least three companies or organizations for which you would consider working. Go online and search for the companies websites (or interview a local employer) to learn about the employee benefits the company provides. Pick the company for which you were able to find the most benefits information and list out those benefits. Estimate the approximate worth of those benefits. Calculate the total worth of an entry-level job (salary plus benefits) National Endowment for Financial Education Lesson 3-2: Job Benefits and Costs High School Financial Planning Program 5 June 2014

42 High School Financial Planning Program Lesson 3-2: Job Benefits 2014 National Endowment for Financial Education 0

43 High School Financial Planning Program Lesson 3-2: Job Benefits Display this slide as you introduce the lesson National Endowment for Financial Education 1

44 High School Financial Planning Program Lesson 3-2: Job Benefits Introduce the lesson by asking students to share (either with the whole class or with a partner) where they work or have worked. Gather information about why students choose to work specific jobs or for specific employers. As appropriate throughout the lesson, reference these examples to relate to student situations National Endowment for Financial Education 2

45 High School Financial Planning Program Lesson 3-2: Job Benefits Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to weigh job benefits and costs to assess employment options National Endowment for Financial Education 3

46 High School Financial Planning Program Lesson 3-2: Job Benefits Arrange for students to work in pairs or small groups to complete the Which Summer Job? task. Arrange for students to read about Nicholas s two summer job options. Tell students to be prepared to share the team s recommendation and reason for the recommendation. Compare how many students selected the gym versus the pool. EXTENSION: Have the students create a third job offer for Nicholas at a local fast food restaurant or sit-down restaurant. Students need to consider details for each benefit category National Endowment for Financial Education 4

47 High School Financial Planning Program Lesson 3-2: Job Benefits Student Guide, pages Provide an overview of typical types of employee benefits and how the benefits add value to the work pay. Consider sharing personal examples of types of benefits you have received on current and past jobs. Invite students to share examples of benefits for their own jobs. Point out that the benefits (compensation package) provided by employers vary from job to job. Facilitate a discussion about why employers do or do not choose to provide benefits to their employees. Arrange for students to work in pairs or small groups to complete Activity 3.9: Compare Employee Benefits. Make sure each pair of students has at least one calculator available. Read the following directions to the students: Figure out how each benefit will add to or take away from your annual salary. If you have extra time, see if you can forecast how each benefit could impact your bottom line after ten years. After you consider the different benefits, decide if you would accept Offer A or Offer B. As students work, circulate among the students. Be ready to explain the different benefits and their importance to students. Help any pairs of students who may be struggling with the math-like word problems. After five minutes or so, ask students to share their answers, explaining which offer is better for each benefit. Ask several students to volunteer which offer they would accept and why. EXTENSION: As a follow-up, ask students to consider the long-term impact (meaning, ten years from now) for each benefit. Some impacts can be measured in dollars; others can be measured by more indirect measures such as quality of life. Or, distribute the Benefits Analysis task for students to predict the long-term impact of various employee benefits National Endowment for Financial Education 5

48 High School Financial Planning Program Lesson 3-2: Job Benefits Student Guide, pages Ask students to share what they find inconvenient about working. Note any themes that emerge such as hours or scheduling issues. Select responses as examples of costs related to the job as you transition into the next task. Divide the class into groups and assign each group one of the employment scenarios from the Hidden Costs of Employment scenarios task. Allow three minutes for students to read the scenario and brainstorm as many costs as they can think of that the students in the scenarios might encounter for their respective jobs. When time is up, have the students report back on how many costs they thought of for their scenario. Have them list out the costs to the class; you get final say as to whether a cost is legitimate or not. If you desire, award a group winning status and a fitting prize. Give examples of additional costs to fill in gaps that were not addressed during the previous task. Assign students to complete Activity 3.10: The Costs of Working, either in class or out of class. This is a good time to explain that not all costs are monetary. In some cases, opportunity costs involve the next best option that was given up when a choice is made as in the case of Uncle Frank s employee (Student Guide, page 29). EXTENSION: Using the Internet, have students research the actual costs for each scenario National Endowment for Financial Education 6

49 High School Financial Planning Program Lesson 3-2: Job Benefits Student Guide, page 32 Assign the students to complete Challenge 3-B: Thumbs Up or Thumbs Down. This Challenge is appropriate to assign with this lesson or after completing Lesson 3-4. Resource: This is a good time to introduce students, particularly students in Grades 11-12, to the college CashCourse website, Here they will find helpful resources such as a Job Priorities worksheet and a Job Comparison worksheet. Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources National Endowment for Financial Education 7

50 High School Financial Planning Program Lesson 3-2: Job Benefits Ask students to list the employee benefits that are particularly important to them now. Have them think about the additional benefits they might want when considering future jobs when they are living on their own National Endowment for Financial Education 8

51 High School Financial Planning Program Lesson 3-2: Job Benefits 2014 National Endowment for Financial Education 9

52 STUDENT LEARNING PLAN Lesson 3-2: Job Benefits and Costs OVERVIEW What do you consider when looking for a job? Pay? Hours? Schedule? Location? If you have a choice between two jobs that pay nearly the same, what criteria do you use for a decision? Although a job provides you with income, working can also impact your spending. When you have choices about job offers, you will want to weigh the benefits of each option with what you are willing to give up. All of this will help you assess job options to make decisions that match your work preferences and financial plan. LEARNING OUTCOMES In this lesson you will measure the value of employee benefits. Along the way you will: Identify common types of employee benefits. Give examples of hidden costs of employment. List criteria to consider when making decisions about where to work. Use what you learn to assess the benefits and costs of job options. LEARNING TASKS These tasks match pages in Student Guide Where have you worked? Why did you choose that particular job and business? Both Kevin and Gina are lucky they already have jobs. Summertime and the holidays often provide teens with their first working experience. Complete the Which Summer Job? task to recommend the best job option for another teen. What s it worth? Compare the value of different benefits for two hypothetical job offers with the same salary as you complete Activity 3.9: Compare Employee Benefits. Be ready to share with the class which offer you would take and why. How many hidden costs can you find in an employment scenario? Complete Activity 3.10: The Costs of Working to list any extra expenses you have had due to work. Complete Challenge 3-B: Thumbs Up or Thumbs Down? to identify potential job options that match your preferences. TAKING IT HOME Talk to an adult about any company benefits he or she may have. Ask if this person had a choice over any of the benefits and, if so, what influenced his or her final decisions about the job and benefits. REFLECTION What employee benefits are particularly important to you now? When you are living on your own, what additional benefits will you want when considering future jobs? FURTHER STUDY List at least three companies or organizations for which you would consider working. Go online and search for the companies websites (or interview a local employer) to learn about what employee benefits the company provides. Pick the company for which you were able to find the most benefits information and list out those benefits. Estimate the approximate worth of those benefits. Calculate the total worth of an entry-level job (salary plus benefits) National Endowment for Financial Education Lesson 3-2: Job Benefits and Costs High School Financial Planning Program June 2014

53 Activity 3.9: Compare Employee Benefits NAME: DATE: Directions: Gina s cousin, Jordan, has just finished college and is trying to decide between two job offers. The salaries are the same, but the benefits are very different. Study each of the offers below to compare the employee compensation packages. Offer A Salary $24,000 a year. $24,000 a year. Offer B Health Insurance Dental Insurance Tuition Assistance Transportation Assistance Retirement Plan Gym Membership Paid Holidays Paid Time Off Employer pays $360 a month. Jordan pays $40 a month. Not offered. Employer will pay 100 percent of tuition costs per year toward a bachelor s or advanced degree, up to a total of $2,000. Jordan gets a $25 discount off the monthly parking fee of $100, or a monthly public transportation pass of up to $50, or $300 a year toward purchase of a bike. Employer matches 50 percent of Jordan s contributions a year, up to six percent of his salary. Jordan gets 30 percent off a $40-a-month membership at the nearby gym. Employer provides 11 paid days off for holidays each year. Employer provides five paid vacation days and three paid sick days the first year. Employer pays $300 a month. Jordan pays $100 per month. Employer pays $15 per month. Jordan pays $5 per month. Employer will pay 50 percent of tuition costs per year, up to a total of $4,000. None. Employer matches 100 percent of Jordan s contributions a year, up to three percent of his salary. Jordan gets a free membership at the gym in the building, which is normally $30 each month. Employer provides nine paid days off for holidays each year. Employer provides 10 days of paid leave the first year which an employee can use for vacation or sick leave. Which package would you choose and why? 2014 National Endowment for Financial Education Activity 3.9: Compare Employee Benefits High School Financial Planning Program June 2014

54 Activity 3.10: The Costs of Working NAME: DATE: Directions: If you have a job now, what extra expenses do you have that you wouldn t have if you weren t working? If you don t have a job, ask family members and those you know who work full time about their workrelated expenses. Extra Expenses Related to Work 2014 National Endowment for Financial Education Activity 3.10: The Costs of Working High School Financial Planning Program June 2014

55 Task: Which Summer Job? Directions: Compare two typical summer teen employment opportunities. Nicholas, who is a senior in high school, is deciding between two summer job offers. Both jobs offer the same salary, $14 an hour, but each offers different benefits. Which offer would you encourage Nicholas to take and why? Summer Job Offers Front Desk at a Local Gym Lifeguard at the Community Pool Membership Free with employment (worth $40 a month). Free with employment (worth $400). Uniform Provided by the gym (uniform worth $30). Commute Work Duties Requirements Expectations Potential For Extra Earnings Training Opportunities Hours Closings Education Support Advancement Opportunities Year-Round Employment Opportunity Ten miles from his house; can use public transportation. Requires standing all day behind the desk and ability to work a cash register. You model a healthy lifestyle inside and outside of the gym. Opportunity for overtime pay ($20 an hour over 40 hours a week). Can assist personal trainers. Can require a start time as early as 7 a.m. and as late as 9 p.m. The gym is open every day. Will pay 10 percent towards a Bachelor s degree in Business or fitness-related degree for employees of 24 months or more. Can train to be assistant manager. Can continue to work reduced hours year round (up to 20 hours a week). Lifeguard shirt and swimsuit; not provided (uniform cost $50). Within five miles of his house; not accessible with public transportation. Requires sitting in the sun for hours at a time and constant vigilance. Red Cross Lifeguard certification (not provided). Opportunity to earn extra money working for pool parties ($100 per 3-hour party once a week). Can assist pool manager. Pool hours are 10 a.m. until 8 p.m. Required to come one hour early to clean the pool or one hour later to reset deck chairs, clean trash and put away pool equipment. Pool is not open during inclement weather. Eligible for one of four $1,000 scholarships offered each year regardless of college major. Can train to be lifeguard supervisor. Pool closes when school starts; eligible for one of two open positions at the local indoor pool (weekends only) National Endowment for Financial Education Task: Which Summer Job High School Financial Planning Program June 2014

56 Task: Work Setting Preferences NAME: DATE: Directions: What is your ideal work situation? Review the list below. Check the ten groups of workplace factors that relate to preferences that are most important to you. Then, based on your preferences, write a paragraph that describes what a day would be like in your ideal job situation. For example, if you don t have a car, you might select #2 Access to public transportation or #5: Commute time (because you will walk or ride a bike) but not #1 Access to parking. 1. Access to parking (If you prefer to drive, is parking reasonable and available?) 2. Access to public transportation (Is public transportation an option and readily available?) 3. Attire (Do you prefer business casual, casual, or business formal work clothes? Or do you prefer to wear a uniform?) 4. Benefits (For your current life situation, are benefits important to you? What about health insurance, paid vacation days, paid sick days, or other typical benefits?) 5. Commute time (How much time are you willing to spend on your commute to and from work?) 6. Company size (Do you prefer to work at a large or small company or organization?) 7. Compensation (Do you prefer a set salary, a lower salary plus tips, or a commission?) 8. Customer contact (Would you prefer a higher level of contact with your customers/clients or to work more behind the scenes?) 9. Deadlines (Do you prefer to have deadlines set for you, or would you rather set your own deadlines for work tasks?) 10. Diversity (Do you prefer to work with a diverse group of coworkers or would you rather work with people who are most like you?) 11. Education assistance (Would you be interested in working for a company that will fund or reimburse classes you take to further your education or job-related knowledge?) 12. Health needs (Do you have health concerns that require accommodations, such as allergies or physical labor limitations?) 2014 National Endowment for Financial Education Task: Work Setting Preferences High School Financial Planning Program June 2014

57 Task: Work Setting Preferences 13. Independence level (Would you prefer to work in a team or on your own?) 14. Onsite amenities (Do you prefer onsite daycare, gym, cafeteria or other amenities?) 15. Overtime (Do you prefer to work overtime in exchange for extra pay or time off later?) 16. Promotion (Do you want to work for a company where you have the opportunity for promotions?) 17. Raises (What is your preference on pay increases automatic? Based on performance?) 18. Relocate (Are you willing to relocate if asked? Or is it important for you to stay where you are?) 19. Self-Employment (Do you want to work for yourself or someone else?) 20. Supervision (Do you prefer little or no supervision or lots of guidance and support?) 21. Training (Do you prefer a company that expects and provides training or one that does not?) 22. Travel (Do you prefer a job that requires you to travel, or do you want assurance that you will not have to travel?) 23. Type of office (Do you prefer a private office or cubical or a desk in a shared space?) 24. Unions (Do you want to belong to an employee union, or would you prefer to not work in a union environment?) 25. Urban proximity (Do you prefer a central location around other commercial development or a remote location away from the city?) 26. Values (Is it important for you to work for a company that reflects your personal values?) 27. Volunteerism (Do you want to work for a company that places a priority on volunteerism?) 28. Work from home (Do you want to be able to work at home either every day or on certain days?) 29. Work location (Do you prefer to work indoors or outdoors?) 30. Work schedule (Do you prefer a set work schedule or one that is flexible and varies? Do you need to limit work to specific days or hours each week?) Description of my ideal day at work: 2014 National Endowment for Financial Education Task: Work Setting Preferences High School Financial Planning Program June 2014

58 Task: Hidden Costs of Employment (Scenarios) Directions: Your teacher will assign one of the scenarios below. How many hidden costs can you find in the employment scenario? Be prepared to report your list to the whole class. 1. Keisha has been able to get a job in the music section of a local bookstore. She is able to catch a public bus to get to work after school and then carpools with a friend who takes her home. Since she works right after school, it s hard for her to pack a lunch and a dinner so she usually buys dinner at a fast food place near the bookstore during her work break. She has control over what she wears for work as long as she wears a collared shirt and doesn t wear jeans or shorts. Keisha gets a 20 percent discount on all books and music in the store, so she is constantly adding new items to her extensive collection. She loves her job, especially since she learns about all of the new music releases before her friends. 2. Jeremy s babysitting business has really started to grow. His high school s early childhood education program gives him a lot of ideas for crafts and educational games he can use with the kids he cares for. The parents love that he helps the children increase their academic skills rather than just watch videos when he is there. Jeremy also makes sure that his CPR and First Aid certifications are up to date. He thinks the real reason for the increase in business is the new website he set up to advertise his skills and to help schedule work opportunities a bargain for only $10 a month. Sometimes his babysitting jobs run late on school nights, but it s well worth it for the money he s making! 3. Fatima and David have teamed up to start a landscaping business. Fatima was able to buy a used truck from her uncle to pull all of their lawn equipment. David is pretty handy with small motors and is able to make most of their repairs as long as he uses the right mix of oil and gasoline in the engines. To save money, they buy their equipment used. Fatima has even been able to use her home computer and printer to create business cards that help spread the word about their business to new customers. They have been able to get a few regular jobs for business clients, and they charge a slightly higher rate for business clients than for their homeowner customers. When winter comes, Fatima and David are still in business, shoveling snow and clearing sidewalks. 4. Sakura feels really lucky to have landed this job at an expensive restaurant. Since her shifts are usually on evenings and weekends, she can use her mom s car to get to and from work. She looks great in the required uniform the jacket is provided for her but she s responsible for her own black slacks and white blouse. (She has learned that she needs at least three sets of each as they need to be cleaned after each shift.) She s on her feet for up to six hours at a time so Sakura has invested in a pair of orthopedic shoes that still meet the restaurant s dress code. She s also smart enough to take some of the great tip money she s earning to invest back into herself by taking a health and sanitation course at a local community college this will help her get a certificate that could increase her wages. Sakura also thinks this is a good investment because she is seriously considering turning this into a career down the road National Endowment for Financial Education Task: Hidden Cost of Employment High School Financial Planning Program June 2014

59 Task: Benefits Analysis NAME: Directions: Compare the value of the benefits offered for two different job offers. DATE: Health Care Retirement Travel Vacation Time Sick/Personal Days Required Attire Bottom Line Offer A: Base Salary $30,000 Offer B: Base Salary $30,000 Covers 100 percent of monthly health insurance premium. Impact: Long-Term (10-year) Impact: 403b: After one year of employment, the company will match 50 percent of your retirement fund contributions up to $1,000 per year. Assume that you maximize your contribution. Impact: Long-Term (10-year) Impact: Requires 10 percent travel; all meals and travel are reimbursed. Impact: Long-Term (10-year) Impact: Offers two weeks of vacation (up to 10 days), three days of which can carry over to the next year. Impact: Long-Term (10-year) Impact: Up to three sick days and three personal days a year. Impact: Long-Term (10-year) Impact: Requires corporate attire that may have to be dry cleaned. Estimated dry-cleaning cost: $40 per month. Impact: Long-Term (10-year) Impact: Covers 80 percent of monthly health insurance premium. Monthly cost: $200. Impact: Long-Term (10-year) Impact: 401k: The company will match your retirement fund contributions up to $2,500 starting in Year 1. Assume that you maximize your contribution. Impact: Long-Term (10-year) Impact: Requires 15 percent travel. Daily meal allowance is $40; travel is reimbursed. Impact: Long-Term (10-year) Impact: Up to two and a half weeks of vacation (13 days). Impact: Long-Term (10-year) Impact: Up to five days a year that can be used for any personal use. Can carry over one unused day into the next year (up to 10 banked days). Impact: Long-Term (10-year) Impact: Requires a company uniform (provided, machine washable) and tools (not provided). Up-front cost: $600. Impact: Long-Term (10-year) Impact: Which Would You Choose? Offer A or B? 2014 National Endowment for Financial Education Task: Benefits Analysis High School Financial Planning Program June 2014

60 Task: Benefits Analysis - KEY Directions: Compare the value of the benefits offered for two different job offers. Offer A: Base Salary $30,000 Offer B: Base Salary $30,000 Which Would You Choose? Offer A or B? Health Care Covers 100 percent of monthly health insurance premium. Impact: no impact Long-Term (10-year) Impact: No additional cost for health insurance Covers 80 percent of monthly health insurance premium. Monthly cost: $200. Impact: $2,400 annual expense for insurance premiums Long-Term (10-year) Impact: $24,000 medical expense Offer A Retirement 403b: After one year of employment, the company will match 50 percent of your retirement fund contributions up to $1,000 per year. Assume that you maximize your annual contribution. Impact: None in the first year Long-Term (10-year) Impact: An additional $1,000 in annual contributions beginning Year 2; over nine years an additional $9,000 will be contributed to the fund plus any potential accumulated earnings. 401k: The company will match your retirement fund contributions up to $2,500 starting in Year 1 of employment. Assume that you maximize your annual contribution. Impact: up to $2,500 additional contributions each year Long-Term (10-year) Impact: Over 10-years an additional $25,000 will be contributed to the fund plus any potential accumulated earnings. Offer B Travel Requires 10 percent travel; all meals and travel are reimbursed. Impact: None* Long-Term (10-year) Impact: None. Requires 15 percent travel; daily meal allowance is $40. Travel is reimbursed. Impact: None* Long-Term (10-year) Impact: None *The need to travel can impact a household budget if the travel causes an employee to take on additional costs such as daycare expenses or kennel costs while away from home. Offer A if employee prefers less travel Offer B if employee likes to travel Vacation Time Offers two weeks of vacation (up to 10 days), three days of which you can carry over to the next year. Impact: None (built into the salary) Long-Term (10-year) Impact: Can take longer vacation the following year if desired. Up to two and a half weeks of vacation (13 days). Impact: None (built into the salary) Long-Term (10-year) Impact: Will lose vacation days if all days are not used in a year; vacation days can t be carried over into the next year. Offer B provides more vacation time each year. Offer A provides more flexibility to decide when vacation days are used National Endowment for Financial Education Task: Benefits Analysis - KEY High School Financial Planning Program June 2014

61 Task: Benefits Analysis - KEY Offer A: Base Salary $30,000 Offer B: Base Salary $30,000 Which Would You Choose? Offer A or B? Sick/ Personal Days Up to three sick days and three personal days a year. Impact: If a person is sick more than three days a year or needs more than three days off for personal business, s/he will need to take any additional days off without pay. Long-Term (10-year) Impact: Will have an impact on salary if there is a need to take days off without pay. Up to five days a year that can be used for any personal use. Can carry over one unused day into the next year (up to 10 banked days). Impact: If a person uses all five days for sick leave and/or personal leave in a year, s/he will need to take any additional days off without pay. Long-Term (10-year) Impact: Will have an impact if there is a need to take days off without pay. Banked days will eliminate the need to take days off without pay when an employee is absent from work for an extended block of time, such as for surgery or an extended illness. Offer A offers one more leave day each year. Offer B provides more flexibility and better value over the long-term because the employee has the opportunity to carry over at least one unused leave day each year. Required Attire Requires corporate attire that may have to be dry cleaned. Estimated dry-cleaning cost: $40 per month. Impact: Estimated annual dry cleaning expenses: $480 Long-Term (10-year) Impact: Approximately $4,800 in expenses Requires a company uniform (provided, machine washable) and tools (not provided). Up-front cost: $600. Impact: First-year expenses for tools: $600 Long-Term (10-year) Impact: Approximate $600 one-time cost plus any costs to replace or repair tools. Offer B Bottom Line Calculations will vary. Year 1: - $480 (dry-cleaning expenses) - any days off without pay Long-Term: + $9,000 (401k contribution) - $4,800 (dry-cleaning expenses) - any days off without pay Calculations will vary. Year 1: - $2,400 (insurance) + $2,500 (401k contribution) - $600 (tools) Long-Term: - $24,000 (insurance) + $25,000 (401k contribution) - $600+ (tools) Student responses may vary depending on what they value for benefits. Encourage the students to defend their responses based on what they assume might be priorities for the job applicant National Endowment for Financial Education Task: Benefits Analysis - KEY High School Financial Planning Program June 2014

62 Challenge 3-B: Thumbs Up or Thumbs Down NAME: DATE: For this challenge task, use what you have learned in Module 3: Earning Power and other career-related study to thoughtfully identify potential job or career options that match your criteria for financial goals and desired lifestyle. Add this decision summary to your personal financial planning portfolio to track your progress towards achieving your educational and career goals. Directions: 1. Apply what you have learned about criterion-based decision making as you complete this challenge. Review the six DECIDE action steps to guide your work (Page 40 Appendix or Module 1 Student Guide, page 20). Preview the criteria listed in the Scoring Guide to plan for your assessment. 2. Use the chart below or create a separate document to summarize your decision-making process. Take into consideration your current circumstances and values. Ask for input from someone who knows you well enough to discuss your likes and dislikes as well as your values, aptitudes, and personality characteristics. 3. Self-assess your work using the Scoring Guide. Consider asking a classmate or family member to peer assess your work. DECIDE Steps My Situation 1 Define your goal. 2 Establish your criteria. 3 Choose three good options. 4 Identify the pros and cons of the options. 5 Decide what s best. 6 Evaluate the results National Endowment for Financial Education Challenge 3-B: Thumbs Up or Thumbs Down High School Financial Planning Program June 2014

63 Challenge 3-B: Thumbs Up or Thumbs Down NAME: DATE: Content 1. Required Criteria In one sentence you state what you want to achieve as a result of the decision-making process. acceptable Status not acceptable 2. Outcome involves a major decision related to a future career path. acceptable not acceptable 3. You justify how the decision and outcome relates to your current circumstances and values. acceptable not acceptable 4. Summary lists at least six criteria for an acceptable outcome, including the features or circumstances you absolutely must have as well as those you would like to have or will not accept. acceptable not acceptable Option Status Rating Key: A = Acceptable / NA = Not Acceptable Option A Option B Option C 5. Summary includes details about three possible options. 6. You devise a way to illustrate how well each option matches your criteria. 7. You point out the option that you have chosen. acceptable not acceptable 8. You justify why the chosen option was selected. acceptable not acceptable General You choice is logical based on the known circumstances, stated criteria, and potential to achieve the desired outcome. You summarize what you do and don t like about your choice and justify any modifications that were made in the purpose, criteria, or options. acceptable acceptable not acceptable not acceptable 11. Content is clearly stated with distinct detail. acceptable not acceptable 12. Documentation is neat and easy to read. acceptable not acceptable 13. Information about the options is accurate or can be verified. acceptable not acceptable Feedback: Score: / 2014 National Endowment for Financial Education Challenge 3-B: Thumbs Up or Thumbs Down High School Financial Planning Program June 2014

64 2014 National Endowment for Financial Education High School Financial Planning Program

65 TEACHER LESSON PLAN Lesson 3-3: Pay and Taxes OVERVIEW If your job pays $8 an hour and you work 20 hours, your paycheck will be $160, right? The reality is, what you earn is not the same as what you actually receive to spend as you wish. After taxes and other items are deducted from your paycheck, you will have less money in hand to save, spend, or invest. In this lesson you will investigate factors that impact your take-home pay and learn about choices you have to make the most of your hard-earned money. LEARNING OUTCOMES In this lesson students examine factors that impact personal tax liability and takehome pay. Along the way they will: Calculate net pay. List factors that impact personal income tax liability. List factors that impact net pay. Students will use what they learn to maximize their pay options. PREPARATION Order a Module 3 Student Guide for each student. (The Guide is also available online to download.) Preview the lesson PowerPoint presentation, learning tasks, and Module 3 Student Guide, particularly pages Print or download the Student Learning Plan for this lesson so each student has a copy. Review government resources to become familiar with current income tax information and social security eligibility requirements. (Info sheets, Gather information from your local state Department of Labor to become familiar with state income tax rates, minimum wage rates, child labor laws, and any requirements for youth work permits. WHAT YOU WILL NEED Module 3 Student Guide (pages 21-25) PowerPoint Presentation 3-3 Student Learning Plan 3-3 Task: Figure the Net Pay Activity 3.7: Get the W-4 Right Activity 3.8: Check it Out! Social Security Administration Publication: Your Retirement Benefit: How It s Figured IRS Form W-4 Instructions and Certificate Student Work Permit (optional if required in local state) Challenge 3-B: Thumbs Up or Thumbs Down? Internet access NOTES: Approximate time: 45 minutes (minimum) - 90 minutes (with extension activities) 2014 National Endowment for Financial Education Lesson 3-3: Pay and Taxes High School Financial Planning Program 1 June 2014

66 TEACHER LESSON PLAN Lesson 3-3: Pay and Taxes Learning Tasks Teaching Notes Materials 1. If Kevin earns $6.50 an hour and worked 60 hours last month, how much did he earn for the entire month? Complete Activity 3.8: Check it Out! to see how much money he actually took home. PROCEDURE TIME ESTIMATE: 10 minutes [Slide 2] Before showing the students Activity 3.8, tell them to calculate how much Kevin earned and compare their answers with a neighbor. Ask the students if he will receive all of that money when he cashes his paycheck. When student responds that he won t receive all of the earnings, ask for reasons why his actual take-home pay is less than what he earned. Reference the responses later in the lesson as you discuss payroll deductions. Wrap up this task by having the students complete Activity 3.8: Check it Out, either individually or as a whole class. Point out that Net Pay is the actual take-home pay that Kevin has available to use as he wishes for saving, investing, or spending. [Slide 3] Transition into the lesson preview by noting that although Kevin is required to pay income taxes on earnings, he does have some control in deciding how much he receives in net pay. Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to investigate factors that impact their take-home pay and learn about choices they have to maximize their pay options. Module 3 Student Guide Student Learning Plan STUDENT GUIDE Page 24 SLIDES 2 Kevin s Paycheck 3 - Preview ACTIVITY Activity 3.8: Check it Out! Calculators (optional) 2. What do you know about taxes? Participate in a discussion on how taxes are paid. Then brainstorm reasons why we need to pay taxes. PROCEDURE TIME: 10 minutes Begin a discussion about income tax deductions. If the students have previous experience with income taxes, ask them to share what they know about the types of income taxes paid by workers and why workers pay taxes. Use Slide 4 and page 21 to introduce or review the types of income taxes and fill in gaps for how the taxes are calculated. Use Slide 5 to differentiate between income taxes and FICA contributions. Point out that the students are already saving for their retirement when they have Social Security and Medicare contributions deducted from their paychecks. This money is pooled in a fund to distribute to eligible retirees, survivors of workers who have died, and people who are disabled. Employers add to the pool by matching employee contributions. Retirement benefits are based on the average indexed monthly earnings during a worker s 35 years of highest earnings before age 62. So, it pays to stay in the workforce and increase earnings over time. Additional information is available at An information sheet is also provided to explain how Social Security benefits are figured. STUDENT GUIDE Pages SLIDES 4 Income Tax for Individuals 5 Social Security & Medicare Contributions ACTIVITIES Social Security Administration Publication: Your Retirement Benefits: How It s Figured (optional) Internet access: National Endowment for Financial Education Lesson 3-3: Pay and Taxes High School Financial Planning Program 2 June 2014

67 TEACHER LESSON PLAN Lesson 3-3: Pay and Taxes Learning Tasks Teaching Notes Materials Ask the students, How do we pay income taxes? Allow one or two minutes for responses before telling them that as workers, they get to choose the method for paying taxes: a little at a time out of each paycheck (withholding) or all at once (after calculating exactly what is owed filing taxes). Point out that having taxes withheld from each paycheck is a way to help workers set aside funds at regular intervals for their tax liabilities, much like when they create a spending plan to regularly set aside funds for savings goals and occasional expenses such as insurance. EXTENSION: If this is a new concept for students, use one of the many lesson plans available on the IRS educator website: 3. Find out the financial decisions you need to address when starting a new job. Make one of your first adult financial decisions when you fill out an IRS Form W-4. PROCEDURE TIME: 10 minutes Ask students to share their experiences about what paperwork they had to fill out when they started new jobs. Fill in gaps by explaining what documentation is often required of new hires, including proof of citizenship, emergency contact information, payroll preferences (i.e. deductions, automatic deposit option), insurance applications or waivers, employee policy/handbook acknowledgement, and in some states, a youth work permit. [Slide 6] Point out financial decisions that will need to be addressed when accepting and starting a new job. As time allows, elaborate on these decisions or share personal stories about the decisions. [Slide 7] Read through the Student Guide text (page 22) with students. Make sure they understand the choices they have to make when filling out an IRS Employee s Withholding Allowance Certificate (Form W-4). Explain that deciding what to claim for allowances is a financial decision they will make every time they fill out the form. What they record in lines 3, 5, 6, and 7 will impact the amount of federal income tax that is deducted from their gross pay. Guide students as they complete Activity 3.7: Get the W-4 Right. Note: IRS Form W-4 (2015) is provided for reference. Ideally, a worker should claim withholding allowances in such a way that a sufficient amount of taxes should be withheld throughout the year to avoid the need to come up with a big chunk of money to pay additional income taxes owed at the end of the year. Reversely, there should not be too much withheld so a large refund is received when filing taxes this is money a person could have had in hand for saving, investing, or spending rather than having it held by the government during the year. (This is a good time to review how the time value of money applies in this situation if you have already covered the concept in Module 4: Investing.) STUDENT GUIDE Pages SLIDES 6 Financial Decisions When Starting a Job 7 W-4 Withholding Certificate 8 Youth Work Permits ACTIVITIES Activity 3-7: Get the W-4 Right IRS Form W-4 with instructions Student Work Permit (if applicable in your state) Internet National Endowment for Financial Education Lesson 3-3: Pay and Taxes High School Financial Planning Program 3 June 2014

68 TEACHER LESSON PLAN Lesson 3-3: Pay and Taxes Learning Tasks Teaching Notes Materials Explanation: Most people who are single and have no children will claim either 0, 1, or 2 allowances on their W-4 form. With a higher number of allowances claimed, a lower amount of income taxes will be withheld from paychecks. Someone who expects to not owe any income tax, such as a student who works short-term in the summer, might claim exempt on the W-4 Certificate to increase the net pay received each paycheck rather than wait for a tax refund at the end of the year. However, an employee needs to make sure to have enough money to cover any taxes owed when taxes are due on April 15. The most convenient way to plan for tax payments is to pay a little at a time from each paycheck rather than all at once at the end of the year. [Slide 8 - optional if your state requires Youth Work Permits] If work permits are required in your state, provide an explanation of how to get a permit. Point out that the purpose of a child labor work permit is to ensure that all parties (student, employer, and parent) comply with minimum age employment restrictions. Additional information about work permits and child labor laws can be found at your state s Labor Department website and the U.S. Department of Labor website, Additional Resources: Department of Revenue video, Teens 'n Taxes What's a W-4 form? (1 minute, 48 seconds). Use either the YouTube TM link, or the DOR website link, IRS W-4 Form, Degrees of Financial Literacy, IRS.gov, a free program of the nation s certified public accountants, Topics/ Taxes/Income-Tax NEFE s CashCourse website, Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources. 4. Congratulations! You are now earning $30,000 a year. Calculate your net, or takehome, pay. PROCEDURE TIME: 10 minutes [Slide 9] Distribute the Figure the Net Pay task and preview the directions for each situation. Arrange for students to work individually or in pairs to complete calculations for each situation. (Note: Retirement fund investing and contributions are covered more in depth in Module 4: Investing, but this is a good time to point out how pre-tax deductions impact net pay and tax liability.) SLIDE 9 What is Your Net Pay? ACTIVITY Task: Figure the Net Pay Calculators (optional) 2014 National Endowment for Financial Education Lesson 3-3: Pay and Taxes High School Financial Planning Program 4 June 2014

69 TEACHER LESSON PLAN Lesson 3-3: Pay and Taxes Learning Tasks Teaching Notes Materials Debrief by asking the students to react to the scenario differences, specifically the tax liability, net pay, and retirement fund contributions. Ask the students what they think is a good course of action when they receive a raise or bonus windfall. Point out that having a plan in advance can help them be in control with how their money is used. Extension: The Federal, Social Security, and Medicare tax information provided for this exercise are the rates for the 2015 tax year. Have students go to the IRS website ( to research the additional information about current tax rates and calculations. The state withholding rate provided is for Colorado. Have students look up the tax rate for their own state. (Try a website like Students can also analyze the impact being married has on tax withholdings. Students can research dues related to their possible career fields and compare the costs of dues. Additional Learning Resources provided by NEFE: articles about taxes and paycheck deductions 5. Complete Challenge Assignment 3-B: Thumbs Up or Thumbs Down? to identify potential job options and payroll options that match your preferences. PROCEDURE In-class or out-of-class assignment Assign the students to complete Challenge 3-B: Thumbs Up or Thumbs Down. This Challenge is appropriate to assign with this lesson or after completing Lesson 3-2 or Lesson 3-4. Resource: This is a good time to introduce students, particularly students in Grades 11-12, to the CashCourse Prep website, Here they will find helpful resources such as a Job Priorities worksheet and a Job Comparison worksheet. Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources. STUDENT GUIDE Page 29 SLIDE 10 - Challenge ACTIVITY Challenge 3-B: Thumbs Up or Thumbs Down 2014 National Endowment for Financial Education Lesson 3-3: Pay and Taxes High School Financial Planning Program 5 June 2014

70 TEACHER LESSON PLAN Lesson 3-3: Pay and Taxes Learning Tasks Teaching Notes Materials TAKING IT HOME PROCEDURE Out-of-class assignment Take a close look at one of your recent paystubs to see how payroll information is recorded. Encourage students who have been or are employed to closely examine one of their recent paystubs to become familiar with the information recorded by the employer. Stress the importance of verifying payroll information to ensure accuracy. Explain that this information should be kept to confirm year-end data when the students receive their W-2 Wage and Tax Statement at the end of each year. It is the employee s responsibility to ensure that all information is documented accurately. REFLECTION PROCEDURE In-class or out-of-class assignment Think about what allowances you might record on a W-4 Form when you life situation changes. Guide the students to reflect on what they might record on an IRS W-4 Certificate in the future when they have a full-time job, if they are married and their spouse works full time, and if they have children. TAKING IT HOME Take a close look at one of your recent paystubs to see how payroll information is recorded. Keep your paystubs to match up data on the W-2 Wage and Tax Statement you receive from your employer at the end of the year. This information is needed when filing your income taxes, and your total wages are also tracked for future Social Security benefits. REFLECTION Think about the number of W-4 allowances you think best reflects your needs right now. Now, imagine into the future and indicate how you would change your number of allowances for each of the following scenarios and why. You accept your first full-time job. You just got married and your spouse also works full-time. Your first child was just born. FURTHER STUDY Practice filling out an income tax form. You can find simulations for several situations on the IRS.gov Understanding Taxes Student Site, National Endowment for Financial Education Lesson 3-3: Pay and Taxes High School Financial Planning Program 6 June 2014

71 High School Financial Planning Program Lesson 3-3: Pay and Taxes 2014 National Endowment for Financial Education 0

72 High School Financial Planning Program Lesson 3-3: Pay and Taxes Display this slide as you prepare to introduce this lesson National Endowment for Financial Education 1

73 High School Financial Planning Program Lesson 3-3: Pay and Taxes Student Guide, page 24 Before showing the students Activity 3.8, tell them to calculate how much Kevin earned and compare their answers with a neighbor. Ask the students if he will receive all of that money when he cashes his paycheck. When student responds that he won t receive all of the earnings, ask for reasons why his actual take-home pay is less than what he earned. Reference the responses later in the lesson as you discuss payroll deductions. Wrap up this task by having the students complete Activity 3.8: Check it Out, either individually or as a whole class. Point out that Net Pay is the actual take-home pay that Kevin has available to use as he wishes for saving, investing, or spending National Endowment for Financial Education 2

74 High School Financial Planning Program Lesson 3-3: Pay and Taxes Transition into the lesson preview by noting that although Kevin is required to pay income taxes on earnings, he does have some control in deciding how much he receives in net pay. Preview the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to investigate factors that impact their take-home pay and learn about choices they have to maximize their pay options National Endowment for Financial Education 3

75 High School Financial Planning Program Lesson 3-3: Pay and Taxes Student Guide, pages Begin a discussion about income tax deductions. If the students have previous experience with income taxes, ask them to share what they know about the types of income taxes paid by workers and why workers pay taxes. Use this slide and page 21 to introduce or review the types of income taxes and fill in gaps for how the taxes are calculated National Endowment for Financial Education 4

76 High School Financial Planning Program Lesson 3-3: Pay and Taxes Student Guide, pages Use this slide to differentiate between income taxes and FICA contributions. Point out that the students are already saving for their retirement when they have Social Security and Medicare contributions deducted from their paychecks. This money is pooled in a fund to distribute to eligible retirees, survivors of workers who have died, and people who are disabled. Employers add to the pool by matching employee contributions. Retirement benefits are based on the average indexed monthly earnings during a worker s 35 years of highest earnings before age 62. So, it pays to stay in the workforce and increase earnings over time. Additional Information: Social Security Administration Publication: Your Retirement Benefit: How It s Figured Ask the students, How do we pay income taxes? Allow one or two minutes for responses before telling them that as workers, they get to choose the method for paying taxes: a little at a time out of each paycheck (withholding) or all at once (after calculating exactly what is owed filing taxes). Point out that having taxes withheld from each paycheck is a way to help workers set aside funds at regular intervals for their tax liabilities, much like when they create a spending plan to regularly set aside funds for savings goals and occasional expenses such as insurance. EXTENSION: If this is a new concept for students, use one of the many lesson plans available on the IRS educator website: National Endowment for Financial Education 5

77 High School Financial Planning Program Lesson 3-3: Pay and Taxes Student Guide, pages Ask students to share their experiences about what paperwork they had to fill out when they started new jobs. Fill in gaps by explaining what documentation is often required of new hires, including proof of citizenship, emergency contact information, payroll preferences (i.e. deductions, automatic deposit option), insurance applications or waivers, employee policy/handbook acknowledgement, and in some states, a youth work permit. Point out financial decisions that will need to be addressed when accepting and starting a new job. As time allows, elaborate on these decisions or share personal stories about the decisions National Endowment for Financial Education 6

78 High School Financial Planning Program Lesson 3-3: Pay and Taxes Student Guide, pages Read through the Student Guide text (page 22) with students. Make sure they understand the choices they have to make when filling out an IRS Employee s Withholding Allowance Certificate (Form W-4). Explain that deciding what to claim for allowances is a financial decision they will make every time they fill out the form. What they record in lines 3, 5, 6, and 7 will impact the amount of federal income tax that is deducted from their gross pay. Guide students as they complete Activity 3.7: Get the W-4 Right. Note: IRS Form W-4 (2015) is provided for reference. Ideally, a worker should claim withholding allowances in such a way that a sufficient amount of taxes should be withheld throughout the year to avoid the need to come up with a big chunk of money to pay additional income taxes owed at the end of the year. Reversely, there should not be too much withheld so a large refund is received when filing taxes this is money a person could have had in hand for saving, investing, or spending rather than having it held by the government during the year. (This is a good time to review how the time value of money applies in this situation if you have already covered the concept in Module 4: Investing.) Explanation: Most people who are single and have no children will claim either 0, 1, or 2 allowances on their W-4 form. With a higher number of allowances claimed, a lower amount of income taxes will be withheld from paychecks. Someone who expects to not owe any income tax, such as a student who works short-term in the summer, might claim exempt on the W-4 Certificate to increase the net pay received each paycheck rather than wait for a tax refund at the end of the year. However, an employee needs to make sure to have enough money to cover any taxes owed when taxes are due on April 15. The most convenient way to plan for tax payments is to pay a little at a time from each paycheck rather than all at once at the end of the year National Endowment for Financial Education 7

79 High School Financial Planning Program Lesson 3-3: Pay and Taxes [Optional if your state requires Youth Work Permits] If work permits are required in your state, provide an explanation of how to get a permit. Point out that the purpose of a child labor work permit is to ensure that all parties (student, employer, and parent) comply with minimum age employment restrictions. Additional information about work permits and child labor laws can be found at your state s Labor Department website and the U.S. Department of Labor website, Additional Resources: - Department of Revenue video, Teens 'n Taxes What's a W-4 form? (1 minute, 48 seconds). Use either the YouTube TM link, or the DOR website link, If you use the DOR website link below, there are two videos, the first on the W-2 form. Go to the second video using the arrow on the right side of the video frame. - IRS W-4 Form, Degrees of Financial Literacy, IRS.gov, a free program of the nation s certified public accountants, Topics/ Taxes/Income-Tax - NEFE s CashCourse website, Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources National Endowment for Financial Education 8

80 High School Financial Planning Program Lesson 3-3: Pay and Taxes Distribute the Figure the Net Pay task and preview the directions for each situation. Arrange for students to work individually or in pairs to complete calculations for each situation. (Note: Retirement fund investing and contributions are covered more in depth in Module 4: Investing, but this is a good time to point out how pre-tax deductions impact net pay and tax liability.) Debrief by asking the students to react to the scenario differences, specifically the tax liability, net pay, and retirement fund contributions. Ask the students what they think is a good course of action when they receive a raise or bonus windfall. Point out that having a plan in advance can help them be in control with how their money is used. Extension: The Federal, Social Security, and Medicare information provided for this exercise are the rates for the 2015 tax year. Have students go to the IRS website ( to research the additional information about current tax rates and calculations. The state withholding rate provided is for Colorado. Have students look up the tax rate for their own state. (Try a website like Students can also analyze the impact being married has on tax withholdings. Students can research dues related to their possible career fields and compare the costs of dues. Additional Learning Resources provided by NEFE: articles about taxes and paycheck deductions 2014 National Endowment for Financial Education 9

81 High School Financial Planning Program Lesson 3-3: Pay and Taxes Student Guide, page 29 Assign the students to complete Challenge 3-B: Thumbs Up or Thumbs Down. This Challenge is appropriate to assign with this lesson or after completing Lesson 3-2 or Lesson 3-4. Resource: This is a good time to introduce students, particularly students in Grades 11-12, to the CashCourse Prep website, Here they will find helpful resources such as a Job Priorities worksheet and a Job Comparison worksheet. Students and Instructors who are not affiliated with a college or university can register as Other to access CashCourse and utilize the site resources National Endowment for Financial Education 10

82 High School Financial Planning Program Lesson 3-3: Pay and Taxes 2014 National Endowment for Financial Education 11

83 STUDENT LEARNING PLAN Lesson 3-3: Pay and Taxes OVERVIEW If your job pays $8 an hour and you work 20 hours, your paycheck will be $160, right? The reality is, what you earn is not the same as what you actually receive to spend as you wish. After taxes and other items are deducted from your paycheck, you will have less money in hand to save, spend, or invest. In this lesson you will investigate factors that impact your take-home pay and learn about choices you have to make the most of your hard-earned money. LEARNING OUTCOMES In this lesson you will examine factors that impact personal tax liability and take-home pay. Along the way you will: Calculate net pay. List factors that impact personal income tax liability. List factors that impact your net pay. Use what you learn to maximize your pay options. LEARNING TASKS These tasks match pages in Student Guide If Kevin earns $6.50 an hour and worked 60 hours last month, how much did he earn for the entire month? Complete Activity 3.8: Check it Out! to see how much money he actually took home. What do you know about taxes? Participate in a discussion on how taxes are paid. Then brainstorm reasons why we need to pay taxes. Find out the financial decisions you need to address when starting a new job. Make one of your first adult financial decisions when you fill out an IRS Form W-4. Congratulations! You are now earning $30,000 a year. Calculate your net, or take-home, pay. Complete Challenge 3-B: Thumbs Up or Thumbs Down? to identify potential job options and payroll options that match your preferences. TAKING IT HOME Take a close look at one of your recent paystubs to see how payroll information is recorded. Keep your paystubs to match up data on the W-2 Wage and Tax Statement you receive from your employer at the end of the year. This information is needed when filing your income taxes, and your total wages are also tracked for future Social Security benefits. REFLECTION Think about the number of W-4 allowances you think best reflects your needs right now. Now, imagine into the future and indicate how you will change your number of allowances for each of the following scenarios and why. You accept your first full-time job. You just got married and your spouse also works full-time. Your first child is just born. FURTHER STUDY Practice filing out an income tax form. You can find simulations for several situations on the IRS.gov Understanding Taxes Student Site, National Endowment for Financial Education Lesson 3-3: Pay and Taxes High School Financial Planning Program June 2014

84 Activity 3-7: Get the W-4 Right NAME: DATE: Directions: When you begin a new job, you will complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. Use the form below to practice filling out a form based on your current situation. You can download a copy of the full IRS Form W-4 from for additional instructions to fill out the withholding allowance information. Keep your Social Security number a secret; use to fill out this form National Endowment for Financial Education Activity 3.7: Get the W-4 Right High School Financial Planning Program June 2014

85 Activity 3-8: Check it Out! NAME: DATE: Directions: Use the information provided to calculate Kevin s net pay. Kevin earns $6.50 an hour and worked 60 hours last month. During the month he received $148 in tips. He also used his employee food discount and chose to have the cost of his meals deducted from his paycheck. If Kevin had $21 deducted last month for meals, what was his net pay? Calculating Your Income Kevin s Monthly Pay Regular Pay + Tips = Gross Pay - Payroll Taxes $ 77 - Other Deductions = Net Pay 2014 National Endowment for Financial Education Activity 3.8: Check it Out! High School Financial Planning Program June 2014

86 Activity 3-8: Check it Out! NAME: KEY DATE: Directions: Use the information provided to calculate Kevin s net pay. Kevin earns $6.50 an hour and worked 60 hours last month. During the month he received $148 in tips. He also used his employee food discount and chose to have the cost of his meals deducted from his paycheck. If Kevin had $21 deducted last month for meals, what was his net pay? Calculating Your Income Kevin s Monthly Pay Regular Pay $ Tips $ 148 = Gross Pay $ Payroll Taxes $ 77 - Other Deductions $ 21 = Net Pay $ National Endowment for Financial Education Activity 3.8: Check it Out! - KEY High School Financial Planning Program June 2014

87 Task: Figure the Net Pay NAME: DATE: Directions: Situation A. Congratulations! You are now getting a regular paycheck. Although your annual salary is $30,000, you know that there are several deductions that will be taken out of your paycheck. Use the data provided in the chart to calculate your net pay (aka take-home pay) for each pay period. Situation B. You just found out that your employer will match a portion of any contributions you make to a retirement fund. To take advantage of this generous benefit, you have chosen the option to automatically have $100 deducted from each paycheck to build up your retirement fund. You can take this as a pre-tax deduction, meaning your income taxes will be calculated after subtracting your retirement fund deduction of $100 per pay period. Calculate how this pre-tax deduction impacts your total taxes and your net pay. Situation C. At your one-year review you received good news you have earned a three percent raise for taking on new responsibilities and being a valued employee! Recalculate your net pay to see how your raise impacts your tax liability and net pay. What is the difference between your original gross pay (A1) and your gross pay after your raise (C1)? Gross Pay: $ after raise per pay period $ after raise over one year If you continue to contribute $100 to your retirement fund each pay period, what is the difference in what you owe in taxes and your net pay comparing Situation A and Situation C? Total Taxes: $ after raise per pay period $ after raise over one year Net Pay: $ after raise per pay period $ after raise over one year 2014 National Endowment for Financial Education Task: Figure the Net Pay High School Financial Planning Program June 2014

88 Task: Figure the Net Pay Filing Status: Single 1 Withholding Allowance Paid semimonthly Situation A Situation B Situation C Difference C-A Difference Over One Year (C-A) 1 Gross Pay $1,250 $1,250 $1, Retirement Fund Contribution Pre-Tax Deduction $0 $100 $100 3 Taxable Pay 4 Federal Income Tax* $ $ $ State Income Tax (4.63% of taxable income, CO rate) Social Security FICA Tax (6.2% of gross income) Medicare FICA Tax (1.45% of gross income) 8 Total Tax Deduction 9 Union Dues $15.71 $15.71 $ Total Deductions 11 Net Pay *The federal income tax has been calculated for you based on filing status and 2015 Tax Tables, IRS pub National Endowment for Financial Education Task: Figure the Net Pay High School Financial Planning Program June 2014

89 Task: Figure the Net Pay NAME: KEY DATE: Directions: Situation A. Congratulations! You are now getting a regular paycheck. Although your annual salary is $30,000, you know that there are several deductions that will be taken out of your paycheck. Use the data provided in the chart to calculate your net pay (aka take-home pay) for each pay period. Situation B. You just found out that your employer will match a portion of any contributions you make to a retirement fund. To take advantage of this generous benefit, you have chosen the option to automatically have $100 deducted from each paycheck to build up your retirement fund. You can take this as a pre-tax deduction, meaning your income taxes will be calculated after subtracting your retirement fund deduction of $100 per pay period. Calculate how this deduction impacts your total taxes and your net pay. Situation C. At your one-year review you received good news you have earned a three percent raise for taking on new responsibilities and being a valued employee! Recalculate your net pay to see how your raise impacts your tax liability and net pay. What is the difference between your original gross pay (A1) and your gross pay after your raise (C1)? Gross Pay: $37.50 increase after raise per pay period $900 increase after raise over one year If you continue to contribute $100 to your retirement fund each pay period, what is the difference in what you owe in taxes and your net pay comparing Situation A and Situation C? Total Taxes: $9.025 less after raise per pay period $ less after raise over one year Net Pay: $ decrease after raise per pay period $1, decrease after raise over one year* *Point out that although there was a decrease in net pay in spite of a raise, Situation C involved contributing an annual total of $2,400 to a retirement fund, which has the potential to increase in value National Endowment for Financial Education Task: Figure the Net Pay - KEY High School Financial Planning Program June 2014

90 Task: Figure the Net Pay Filing Status: Single 1 Withholding Allowance Paid Semimonthly Situation A Situation B Situation C Difference C-A Difference Over One Year (C-A) 1 Gross Pay $1, $1, $1, $37.50 $ Pre-Tax Deduction $0 $ $ $ $2, Taxable Pay $1, $1,150 $1, $1, Federal Income Tax* $ $ $ State Income Tax (Co rate, (4.63% of taxable income) Social Security FICA Tax (6.2% of gross income) Medicare FICA Tax (1.45% of gross income) $ $ $ $ $ $ $ $ $ Total Tax Deduction $ $ $ $ $ Union Dues $15.71 $15.71 $ Total Deductions $ $ $ Net Pay $ $ $ $ $1, *The federal income tax has been calculated for you based on filing status and 2015 Tax Tables, IRS pub. 15. Reflection Discussion/Follow-up to Situation C: Encourage the students to weigh the value of decreasing their net pay to increase their retirement contribution after receiving a raise. Point out that although the $2,400 is not included in their takehome pay, it is money they have available to invest. In essence, it s a built-in way to pay yourself first. Ask the students to think about what they would do if they actually did get the raise. If they were already living on an established budget under Scenario A, how would they apply their raise windfall to improve their financial situation? Would they continue with the same pre-tax contribution, increase their contribution, or stop contributing? Facilitate a discussion to encourage students to provide rational for their decisions National Endowment for Financial Education Task: Figure the Net Pay - KEY High School Financial Planning Program June 2014

91 Challenge 3-B: Thumbs Up or Thumbs Down NAME: DATE: For this challenge task, use what you have learned in Module 3: Earning Power and other career-related study to thoughtfully identify potential job or career options that match your criteria for financial goals and desired lifestyle. Add this decision summary to your personal financial planning portfolio to track your progress towards achieving your educational and career goals. Directions: 1. Apply what you have learned about criterion-based decision making as you complete this challenge. Review the six DECIDE action steps to guide your work (Page 40 Appendix or Module 1 Student Guide, page 20). Preview the criteria listed in the Scoring Guide to plan for your assessment. 2. Use the chart below or create a separate document to summarize your decision-making process. Take into consideration your current circumstances and values. Ask for input from someone who knows you well enough to discuss your likes and dislikes as well as your values, aptitudes, and personality characteristics. 3. Self-assess your work using the Scoring Guide. Consider asking a classmate or family member to peer assess your work. DECIDE Steps My Situation 1 Define your goal. 2 Establish your criteria. 3 Choose three good options. 4 Identify the pros and cons of the options. 5 Decide what s best. 6 Evaluate the results National Endowment for Financial Education Challenge 3-B: Thumbs Up or Thumbs Down High School Financial Planning Program June 2014

92 Challenge 3-B: Thumbs Up or Thumbs Down NAME: DATE: Content 1. Required Criteria In one sentence you state what you want to achieve as a result of the decision-making process. acceptable Status not acceptable 2. Outcome involves a major decision related to a future career path. acceptable not acceptable 3. You justify how the decision and outcome relates to your current circumstances and values. acceptable not acceptable 4. Summary lists at least six criteria for an acceptable outcome, including the features or circumstances you absolutely must have as well as those you would like to have or will not accept. acceptable not acceptable Option Status Rating Key: A = Acceptable / NA = Not Acceptable Option A Option B Option C 5. Summary includes details about three possible options. 6. You devise a way to illustrate how well each option matches your criteria. 7. You point out the option that you have chosen. acceptable not acceptable 8. You justify why the chosen option was selected. acceptable not acceptable General You choice is logical based on the known circumstances, stated criteria, and potential to achieve the desired outcome. You summarize what you do and don t like about your choice and justify any modifications that were made in the purpose, criteria, or options. acceptable acceptable not acceptable not acceptable 11. Content is clearly stated with distinct detail. acceptable not acceptable 12. Documentation is neat and easy to read. acceptable not acceptable 13. Information about the options is accurate or can be verified. acceptable not acceptable Feedback: Score: / 2014 National Endowment for Financial Education Challenge 3-B: Thumbs Up or Thumbs Down High School Financial Planning Program June 2014

93 TEACHER LESSON PLAN Lesson 3-4: Lifestyle OVERVIEW What is most important to you when deciding where to work? Overall, the more closely your values match your career, the more satisfying your work will be and the easier it will be to succeed on the job and move closer to reaching your financial goals. Decisions you make in the next few years can either give you a jumpstart on living the life you want or create detours which may limit your choices. The course you take will impact your financial goals, both short-term and long-term. This lesson will help you discover strategies to start down the path to achieve the lifestyle and financial goals of your dreams. LEARNING OUTCOMES In this lesson students examine factors that impact their decisions about career choices and where they might live. Along the way they will: Identify trends that can potentially impact options in the workplace. Explore how a person s values and preferences impact career and job choices. Discuss how the cost of living can impact cash flow and lifestyle. Students will use what they learn to establish career and lifestyle goals. PREPARATION Order a Module 3 Student Guide for each student. (The Guide is also available online to download.) Preview the lesson PowerPoint presentation, learning tasks, and Module 3 Student Guide, particularly pages Print or download the Student Learning Plan for this lesson so each student has a copy. Before class starts, determine which resource(s) or website(s) you will use to provide students with occupational data. Possible resources, WHAT YOU WILL NEED Module 3 Student Guide (pages 30-36) PowerPoint Presentation 3-4 Student Learning Plan 3-4 Task: Work Setting Preferences Task: My Future Life Task: Should I Stay or Go? Task: Tale of Two Cities Activity 3.11: My Values at Work Challenge 3-D: Planning for My Career Props for the Task 1: U.S. map, state map, colored dot stickers, career cluster posters Internet NOTES: Approximate time: 45 minutes (minimum) - 90 minutes (with extension activities) 2014 National Endowment for Financial Education Lesson 3-4: Lifestyle High School Financial Planning Program 1 June 2014

94 TEACHER LESSON PLAN Lesson 3-4: Lifestyle Learning Tasks Teaching Notes Materials 1. Kevin and Gina think a lot about where they see themselves in ten years. Where do you see yourself in ten years? PROCEDURE TIME ESTIMATE: 5 minutes [Advance Prep] Create 16 career cluster posters that describe various categories of careers. (You can find the list of career clusters, and a description of each at the National Association of State Directors of Career Technical Education Consortium website: Before class starts, hang the maps and career cluster posters around the room. [Slide 2] Provide each student with two colored dot stickers. Review the directions with the students. Tell them to place one sticker on a map to indicate where they see themselves living in ten years and a dot on the career cluster that best represents the type of work they see themselves doing in ten years. If time allows, have students calculate the top responses and the class percentage for each response. (If you do this activity with more than one class, you can compare the preferences of each class.) [Slide 3] Transition into the lesson preview, noting the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to establish short-term and long-term career and lifestyle goals. Module 3 Student Guide Student Learning Plan SLIDES 2 Looking Ahead 3 - Preview PROPS U.S. map State map colored dot stickers career cluster posters 2. The general characteristics of the population are always changing in subtle ways. Learn about these changes to gain insight on the types of businesses and careers that will be hot down the road. PROCEDURE TIME: minutes [Slide 4] Debrief from the opening activity by pointing out the value of investigating job options as students consider where they will live and look for work when they are on their own. By paying attention to population and workplace trends, an individual has the opportunity to increase odds in landing a job and earning income that will support their desired lifestyle. As an example, someone with a dream of working as a golf pro will need to consider not only the demand for workers in this position but also geographic factors. After all, a golf pro who lives in northern Minnesota won t work many hours on a golf course during the winter months. SLIDES 4 Know Before You Go 5 - Population and Work Trends 2014 National Endowment for Financial Education Lesson 3-4: Lifestyle High School Financial Planning Program 2 June 2014

95 TEACHER LESSON PLAN Lesson 3-4: Lifestyle Learning Tasks Teaching Notes Materials [Slide 5] Divide the class into five groups and assign each group a demographic trend to study and predict the impact in the workforce. Source: Six Disruptive Demographic Trends, Frank Hawkins Kenan Institute ( census-2010-trends) Geographic population shift Shift in population change by race and ethnicity Aging population Shift in gender roles in the workplace Growing grandparent-headed households (optional for an additional group topic) Source: 2010 Census Brief: Population Distribution and Change: 2000 to 2010, U.S. Census Bureau ( Regional and metropolitan population distribution and change Make sure there are enough copies of each assigned section (including the Discussion section of the Demographic Trends report) for several group members to refer to it at the same time as they discuss how the population trend impacts the workplace. Assign a group member to report the team s responses to the following questions: List at least three different ways this population trend will impact the workplace. What are the products and services that will be in higher demand because of this trend? Resources: Six Disruptive Demographic Trends: What Census 2010 Will Reveal, January 2011, Frank Hawkins Kenan Institute of Private Enterprise, University of North Carolina, Census Briefs, Population Distribution and Change: 2000 to 2010, March 2011, U.S. Department of Commerce, U.S. Census Bureau, National Endowment for Financial Education Lesson 3-4: Lifestyle High School Financial Planning Program 3 June 2014

96 TEACHER LESSON PLAN Lesson 3-4: Lifestyle Learning Tasks Teaching Notes Materials 3. Identify what is important to you when deciding where to work as you complete Activity 3.11: My Values at Work. PROCEDURES TIME: 10 minutes Poll students about two or three preferences they have related to work environment such as working indoors or outdoors, working a day or evening shift, or working with large equipment or at a desk. If students didn t complete the Work Setting Preferences task during Lesson 3-2, arrange for students to complete the task now. [Slide 6] Facilitate a discussion about taking into account personal work preferences to increase satisfaction with a job. Topic ideas can be found in the Student Guide, pages Allow time for students to complete Activity 3.11: My Values at Work. STUDENT GUIDE Pages SLIDE 6 - Living Your Dream ACTIVITIES Activity 3.11: My Values at Work Task: Work Setting Preferences 4. So, where DO you want to live? Complete the Should I Stay or Go task to compare two places where you might want to live. PROCEDURE TIME: 15 minutes [Slide 7] Reference student responses from the opening activity as a transition into a discussion about things to consider when thinking about moving for a job opportunity. Distribute the Should I Stay or Go task to introduce students to examples of factors to consider when thinking about relocating for work. SLIDE 7 Stay or Go? ACTIVITY Task: Should I Stay or Go? Internet 5. Daydream about your life ten years from now. Visualize all of the details: your family, your home, your career and your neighborhood. Complete the My Future Life task. PROCEDURE In-class or out-of-class [Slide 8] Preview the My Future Life task with the students. Arrange for students to work individually to gather information about their career choice and the job outlook. Either allow time in class or establish a deadline for the students to write down two steps they can take that will move them closer to that chosen career. NOTE: Consider inviting a guest speaker from the local One-Stop Career Center, workforce investment board, or Department of Labor to help direct students to local data sources and information about employment trends. RESOURCES: If needed, use the Occupational Outlook Handbook ( or O*Net Online ( to research salaries and educational requirements for students selected occupations. EXTENSION: Have students create posters of their future lives using pictures they draw, cut out from magazines, or download from the Internet. Each poster should contain four categories of images: family, home, career and neighborhood. SLIDE 8 Your Future ACTIVITY Task: My Future Life Internet Occupational Outlook Handbook, O-Net Online National Endowment for Financial Education Lesson 3-4: Lifestyle High School Financial Planning Program 4 June 2014

97 TEACHER LESSON PLAN Lesson 3-4: Lifestyle Learning Tasks Teaching Notes Materials 6. Write goals to get started on achieving the career and lifestyle you want as you complete Challenge 3-D: Planning for My Career. PROCEDURE In-class or out-of-class assignment [Slide 9] Guide the students to reference their responses for the My Future Life task and Activity 3.11 as they plan their goals for Challenge 3-D: Planning for My Career. Resource: CashCourse Prep website, Here students will find helpful resources such as a Job Priorities worksheet and a Job Comparison worksheet. STUDENT GUIDE Page 39 SLIDE 9 Challenge ACTIVITY Challenge 3-D: Planning for My Career TAKING IT HOME Ask an adult about their work and location preferences. FURTHER STUDY Select two possible cities where you d like to live in ten years. Ask your teacher for the Tale of Two Cities task to compare the benefits and costs about the cities. PROCEDURE Out-of-class assignment Encourage students to interview adults about their work and job location preferences. PROCEDURE In-class or out-of-class assignment Distribute the Tale of Two Cities task. Have each student select two cities to compare. They can always start by comparing their own town or city to another. Instruct students to go to Bestplaces.net to compare cities ( Demonstrate how to enter information to prompt a comparison. Have students type in two cities in the boxes using the following format: City, ST. For example, Denver, CO. If a town or city is not listed, tell students to use a larger city that is closest to them. EXTENSION: Have students expand their comparisons to include their current location, a dream location (within the US) and a location where they are seriously considering moving to after high school. EXTENSION: Have students try to persuade the class to live at their city of choice. Instruct students to create a marketing campaign that includes a media presentation (brochure, power point, poster, etc.) and a 30-second persuasive speech. (This is a typical length for a commercial ad on television.) Direct students to existing sources of information about their chosen city, such as the local chamber of commerce or bureau of tourism. ACTIVITIES Task: Tale of Two Cities Internet FURTHER STUDY PROCEDURE In-class or out-of-class assignment Internet Take the Reality Check Challenge. Demonstrate how to access the Reality Check online budget tool at the Jump$tart Coalition website, The results will give students a general idea of how much income they will need to support the lifestyle they choose for the simulation National Endowment for Financial Education Lesson 3-4: Lifestyle High School Financial Planning Program 5 June 2014

98 TEACHER LESSON PLAN Lesson 3-4: Lifestyle Learning Tasks Teaching Notes Materials EXTENSION Participate in a reality simulation event. PROCEDURE Out-of-class assignment Many teens don t understand complexities of living on their own and supporting themselves. Help them better understand through a simulation event. Credit for Life Fairs and Reality Fairs are simulation events that allow teens to get a sense of the lifestyle they can afford with their chosen profession when they are 25 years old. Consider planning reality simulation for your school. You need three to six months to plan an event as well as assistance from community volunteers. Teens who provided feedback after participating in one of these events said that the experience was eye opening and the most informative event they have even attended. Some also reported that it was a wake-up call for what it takes to live on your own. REALITY SIMULATION RESOURCES: Rather than create an event from scratch, find out if any of the following or similar events are available in your community. Contact your local Jump$tart Coalition, credit union, cooperative extension, or Junior Achievement chapter for assistance in hosting and/or planning the event. Mad City Money Simulation, Credit Union National Association, Credit union representatives may be available to assist with this event. JA Finance Park, Junior Achievement Although targeted to middle grade students, this has been used with high school students. Contact your local JA Office to facilitate classroom activities that compliment this face-to-face or online simulation. Credit for Life Fair, Massachusetts State Treasurer s Office, Reality simulation planning toolkit or guide Community volunteers TAKING IT HOME Interview a family member or close adult to ask the following questions: 1. What do you do for a living and why did you choose this career (or job)? 2. If you could do this same job somewhere else, where would you go? Why? 3. If you could stay here and do a different job, what would you do? Why? 4. What advice would you give someone just starting the path to a first career? FURTHER STUDY Select two possible cities where you d like to live in ten years. Ask your teacher for the handout to compare the benefits and costs about the cities. FURTHER STUDY Take the Reality Check Challenge, an online budget tool that gives you a quick look at what it costs to live on your own. Discover types of jobs support that lifestyle. Find the Reality Check at National Endowment for Financial Education Lesson 3-4: Lifestyle High School Financial Planning Program 6 June 2014

99 High School Financial Planning Program Lesson 3-4: Lifestyle 2014 National Endowment for Financial Education 0

100 High School Financial Planning Program Lesson 3-4: Lifestyle Display this slide as you begin today s lesson National Endowment for Financial Education 1

101 High School Financial Planning Program Lesson 3-4: Lifestyle [Advance Prep] Create 16 career cluster posters that describe various categories of careers. (You can find the list of career clusters, and a description of each at the National Association of State Directors of Career Technical Education Consortium website: Before class starts, hang the maps and career cluster posters around the room. Provide each student with two colored dot stickers. Review the directions with the students. Tell them to place one sticker on a map to indicate where they see themselves living in ten years and a dot on the career cluster that best represents the type of work they see themselves doing in ten years. If time allows, have students calculate the top responses and the class percentage for each response. (If you do this activity with more than one class, you can compare the preferences of each class.) 2014 National Endowment for Financial Education 2

102 High School Financial Planning Program Lesson 3-4: Lifestyle Transition into the lesson preview, noting the Learning Outcomes in the Student Learning Plan. By the end of this lesson, the students should be able to establish short-term and long-term career and lifestyle goals National Endowment for Financial Education 3

103 High School Financial Planning Program Lesson 3-4: Lifestyle Debrief from the opening activity by pointing out the value of investigating job options as students consider where they will live and look for work when they are on their own. By paying attention to population and workplace trends, an individual has the opportunity to increase odds in landing a job and earning income that will support their desired lifestyle. As an example, someone with a dream of working as a golf pro will need to consider not only the demand for workers in this position but also geographic factors. After all, a golf pro who lives in northern Minnesota won t work many hours on a golf course during the winter months National Endowment for Financial Education 4

104 High School Financial Planning Program Lesson 3-4: Lifestyle Divide the class into five groups and assign each group a demographic trend to study and predict the impact in the workforce. Source: Six Disruptive Demographic Trends, Frank Hawkins Kenan Institute ( census-2010-trends) - Geographic population shift - Shift in population change by race and ethnicity - Aging population - Shift in gender roles in the workplace - Growing grandparent-headed households (optional for an additional group topic) Source: 2010 Census Brief: Population Distribution and Change: 2000 to 2010, U.S. Census Bureau ( - Regional and metropolitan population distribution and change Make sure there are enough copies of each assigned section (including the Discussion section of the Demographic Trends report) for several group members to refer to it at the same time as they discuss how the population trend impacts the workplace. Assign a group member to report the team s responses to the following questions: - List at least three different ways this population trend will impact the workplace. - What are the products and services that will be in higher demand because of this trend? 2014 National Endowment for Financial Education 5

105 High School Financial Planning Program Lesson 3-4: Lifestyle Student Guide, pages Poll students about two or three preferences they have related to work environment such as working indoors or outdoors, working a day or evening shift, or working with large equipment or at a desk. If students didn t complete the Work Setting Preferences task during Lesson 3-2, arrange for students to complete the task now. Display this slide as you facilitate a discussion about taking into account personal work preferences to increase satisfaction with a job. Topic ideas can be found in the Student Guide, pages Allow time for students to complete Activity 3.11: My Values at Work National Endowment for Financial Education 6

106 High School Financial Planning Program Lesson 3-4: Lifestyle Reference student responses from the opening activity as a transition into a discussion about things to consider when thinking about moving for a job opportunity. Distribute the Should I Stay or Go task to introduce students to examples of factors to consider when thinking about relocating for work National Endowment for Financial Education 7

107 High School Financial Planning Program Lesson 3-4: Lifestyle Preview the My Future Life task with the students. Arrange for students to work individually to gather information about their career choice and the job outlook. Either allow time in class or establish a deadline for the students to write down two steps they can take that will move them closer to that chosen career. NOTE: Consider inviting a guest speaker from the local One-Stop Career Center, workforce investment board, or Department of Labor to help direct students to local data sources and information about employment trends. RESOURCES: If needed, use the Occupational Outlook Handbook ( or O*Net Online ( to research salaries and educational requirements for students selected occupations. EXTENSION: Have students create posters of their future lives using pictures they draw, cut out from magazines, or download from the Internet. Each poster should contain four categories of images: family, home, career and neighborhood National Endowment for Financial Education 8

108 High School Financial Planning Program Lesson 3-4: Lifestyle Student Guide, page 39 Guide the students to reference their responses for the My Future Life task and Activity 3.11 as they plan their goals for Challenge 3-D: Planning for My Career. Resource: CashCourse Prep website, Here students will find helpful resources such as a Job Priorities worksheet and a Job Comparison worksheet National Endowment for Financial Education 9

109 High School Financial Planning Program Lesson 3-4: Lifestyle 2014 National Endowment for Financial Education 10

110 STUDENT LEARNING PLAN Lesson 3-4: Lifestyle OVERVIEW What is most important to you when deciding where to work? Overall, the more closely your values match your career, the more satisfying your work will be and the easier it will be to succeed on the job and move closer to reaching your financial goals. Decisions you make in the next few years can either give you a jumpstart on living the life you want or create detours which may limit your choices. The course you take will impact your financial goals, both short-term and long-term. This lesson will help you discover strategies to start down the path to achieve the lifestyle and financial goals of your dreams. LEARNING OUTCOMES In this lesson you will examine factors that impact your decisions about career choices and where you might live. Along the way you will: Identify trends that can potentially impact your options in the workplace. Explore how a person s values and preferences impact career and job choices. Discuss how the cost of living can impact your cash flow and lifestyle. Use what you learn to establish career and lifestyle goals LEARNING TASKS These tasks match pages in Student Guide 3. Kevin and Gina think a lot about where they see themselves in ten years. Where do you see yourself in ten years? The general characteristics of the population are always changing in subtle ways. Learn about these changes to gain insight on the types of businesses and careers that will be hot down the road. 3. Identify what is important to you when deciding where to work as you complete Activity 3.11: My Values at Work So, where DO you want to live? Complete the Should I Stay or Go task to compare two places where you might want to live. Daydream about your life ten years from now. Visualize all of the details: your family, your home, your career and your neighborhood. Complete the My Future Life task. Write goals to get started on achieving the career and lifestyle you want as you complete Challenge 3-D: Planning for My Career. TAKING IT HOME Interview a family member or close adult to ask the following questions: 1. What do you do for a living and why did you choose this career (or job)? 2. If you could do this same job somewhere else, where would you go? Why? 3. If you could stay here and do a different job, what would you do? Why? 4. What advice would you give someone just starting the path to a first career? FURTHER STUDY Select two possible cities where you d like to live in ten years. Ask your teacher for the handout to compare the benefits and costs about the cities. FURTHER STUDY Take the Reality Check Challenge, an online budget tool that gives you a quick look at what it costs to live on your own. Discover types of jobs that would support that lifestyle. Find the Reality Check at National Endowment for Financial Education Lesson 3-4: Lifestyle High School Financial Planning Program June 2014

111 Activity 3-11: My Values at Work NAME: DATE: Directions: What is most important to you when deciding where to work? List three criteria you will consider when deciding on a job or career. (If you completed Activity 1.5 in Module 1: Money Management, review your values list before completing this activity.) Criteria I Value in the Workplace Why It s Important 2014 National Endowment for Financial Education Activity 3.11: My Values at Work High School Financial Planning Program June 2014

112 Task: Work Setting Preferences NAME: DATE: Directions: What is your ideal work situation? Review the list below. Check the ten groups of workplace factors that relate to preferences that are most important to you. Then, based on your preferences, write a paragraph that describes what a day would be like in your ideal job situation. For example, if you don t have a car, you might select #2 Access to public transportation or #5: Commute time (because you will walk or ride a bike) but not #1 Access to parking. 1. Access to parking (If you prefer to drive, is parking reasonable and available?) 2. Access to public transportation (Is public transportation an option and readily available?) 3. Attire (Do you prefer business casual, casual, or business formal work clothes? Or do you prefer to wear a uniform?) 4. Benefits (For your current life situation, are benefits important to you? What about health insurance, paid vacation days, paid sick days, or other typical benefits?) 5. Commute time (How much time are you willing to spend on your commute to and from work?) 6. Company size (Do you prefer to work at a large or small company or organization?) 7. Compensation (Do you prefer a set salary, a lower salary plus tips, or a commission?) 8. Customer contact (Would you prefer a higher level of contact with your customers/clients or to work more behind the scenes?) 9. Deadlines (Do you prefer to have deadlines set for you, or would you rather set your own deadlines for work tasks?) 10. Diversity (Do you prefer to work with a diverse group of coworkers or would you rather work with people who are most like you?) 11. Education assistance (Would you be interested in working for a company that will fund or reimburse classes you take to further your education or job-related knowledge?) 12. Health needs (Do you have health concerns that require accommodations, such as allergies or physical labor limitations?) 2014 National Endowment for Financial Education Task: Work Setting Preferences High School Financial Planning Program June 2014

113 Task: Work Setting Preferences 13. Independence level (Would you prefer to work in a team or on your own?) 14. Onsite amenities (Do you prefer onsite daycare, gym, cafeteria or other amenities?) 15. Overtime (Do you prefer to work overtime in exchange for extra pay or time off later?) 16. Promotion (Do you want to work for a company where you have the opportunity for promotions?) 17. Raises (What is your preference on pay increases automatic? Based on performance?) 18. Relocate (Are you willing to relocate if asked? Or is it important for you to stay where you are?) 19. Self-Employment (Do you want to work for yourself or someone else?) 20. Supervision (Do you prefer little or no supervision or lots of guidance and support?) 21. Training (Do you prefer a company that expects and provides training or one that does not?) 22. Travel (Do you prefer a job that requires you to travel, or do you want assurance that you will not have to travel?) 23. Type of office (Do you prefer a private office or cubical or a desk in a shared space?) 24. Unions (Do you want to belong to an employee union, or would you prefer to not work in a union environment?) 25. Urban proximity (Do you prefer a central location around other commercial development or a remote location away from the city?) 26. Values (Is it important for you to work for a company that reflects your personal values?) 27. Volunteerism (Do you want to work for a company that places a priority on volunteerism?) 28. Work from home (Do you want to be able to work at home either every day or on certain days?) 29. Work location (Do you prefer to work indoors or outdoors?) 30. Work schedule (Do you prefer a set work schedule or one that is flexible and varies? Do you need to limit work to specific days or hours each week?) Description of my ideal day at work: 2014 National Endowment for Financial Education Task: Work Setting Preferences High School Financial Planning Program June 2014

114 Task: Should I Stay or Go? NAME: DATE: If you re thinking about moving to get a job, look at three things before you make the leap: Cost of living the average cost of items such as rent, taxes, transportation, insurance, utilities, and food in an area. A $30,000 salary may sound like a hefty amount in the small community of Blue Lake, California. But it may be impossible to live comfortably on that in San Francisco. Average salaries. Areas with a higher cost of living usually offer higher salaries. But the supply of and demand for workers in the local job market play a role, too. A shortage of qualified workers will push salaries higher as employers compete to fill openings while an excess of qualified workers can drive salaries down. Moving costs. Even do-it-yourself movers may need to rent a van, buy boxes, pay deposits for a new place and utilities, and rent storage. Are you considering moving away from family and friends who provided free babysitting services, car maintenance, or house repairs? Better add those expenses into your spending plan. You also need to adjust your budget for the reduced income while you look for a job in the new location. Directions: Kevin doesn t care for cold winters, so he is thinking about moving to a warmer climate in a few years. His brother suggests that Kevin research the cost of living before setting his mind on moving to another city. Search online for a cost-of-living calculator (Examples: or to help Kevin compare the cost of living in Madison, Wisconsin, to living in San Diego, California. Based on the data you find, which city do you think is the better option for Kevin? Why? Current Town Dream Town Name of the Town Name of the Job Position Average Salary Overall Cost of Living % Difference in Cost of Living % Difference in Average Salary Unemployment Rate Future Job Growth Rate Income Tax Rate 2014 National Endowment for Financial Education Task: Should I Stay or Go? High School Financial Planning Program June 2014

115 Task: My Future Life NAME: DATE: Directions: Relax and daydream about your life ten years from now. Visualize all of the details: your family, your home, your career and your neighborhood. Think about as many details as possible. Is the town you live in large or small? Are you involved in your community? Where do you volunteer or contribute to charity? Is your job steady and secure or exciting and risky? Do you travel a lot? Do you have a car; if so, what kind? What do you do for fun? Are you working 9 to 5, shift work, or part-time? A. Gather information for your current career choice: Average starting salary: Education/training required: Job outlook in the city/state of my choice: B. Now, complete the following statements: I plan to work toward a career as a with a beginning salary of $. The type of education or training that is required for my chosen career is. This career typically ( does/ does not) provide benefits. I know I will be able to find work in this career if I live in the town/city of in the state of. C. Write down two steps you can take in the next month to move you closer to your chosen career or occupation: Step 1: Step 2: 2014 National Endowment for Financial Education Task: My Future Life High School Financial Planning Program June 2014

116 Task: Tale of Two Cities NAME: DATE: Directions: Select two possible cities where you d like to live in ten years. Then gather information to compare the benefits and costs about the cities. I am comparing to. Category Which city Answer Data Population has an older population? Average age: Population has more single people? Percentage of single people: Climate gets more rain? Rain fall: Climate gets more snow? Snow fall: Climate is sunnier? Sunny days: Cost of Living has a lower cost of living? Cost of living score: Crime is safer? Violent crime rate: Property crime rate: Economy has the lower unemployment rate? Unemployment rate: Economy anticipates a higher future job growth rate? Future Job growth: Economy has a lower sales tax? Sales tax rate: Economy has a lower income tax rate? Income tax rate: Economy has a higher average household income? Household income: Health has better air? Air quality score: Health has better water? Water quality score: Housing Transportation Transportation has a lower average housing cost? has a longer average commute to work? uses greener commuting methods? Median home cost: Average commute time: Carpool: Mass Transit: Work from home: 2014 National Endowment for Financial Education Task: Tale of Two Cities High School Financial Planning Program June 2014

117 Task: Tale of Two Cities Answer these questions: 1. Identify your two cities and the number of times each one was listed on the worksheet. A. City 1: Number of answers: B. City 2: Number of answers: 2. List, in order of importance, the three questions that are the most important to you. a. b. c. 3. Complete the following statements: A. Of the two cities I researched, I would prefer to live in. B. The three main reasons I would want to live there are: 2014 National Endowment for Financial Education Task: Tale of Two Cities High School Financial Planning Program June 2014

118 Challenge 3-D: Planning for My Career NAME: DATE: Now that you have explored how earning power impacts your ability to earn an adequate income for financial stability and long-term financial health, use what you have learned to start preparing for life on your own after high school. Use the SMART guidelines to write goals that will lead you on the path to achieving the career and lifestyle you want. Your goals should specify what you need to do, starting now, to proactively boost your earning capacity. As you plan, think about actions you can take now and in the future to enable you to cover your expenses, live comfortably, and plan for the future. Add your goals to your personal financial planning portfolio. As your life circumstances change, refer to your goals to check progress, modify the goals, or write new goals. Directions: Apply what you have learned about goal setting as you complete this challenge. Write at least one short-term goal, one medium-term goal, and one long-term goal related to enhancing your ability to earn an adequate income. Be sure to create goals that have meaning to you based on your current circumstances and values. 1. Preview the criteria listed in the Scoring Guide to plan for your assessment. 2. Brainstorm ideas for personal financial goals that can be classified as short-term, medium-term, and long-term. 3. Review the SMART Goals chart to establish goal details. (Module 1 Student Guide, page 15) 4. Write your SMART goals taking into consideration how you will prioritize your actions as you work to achieve all of the goals at the same time. 5. Self-assess your work using the Scoring Guide. Optional: Ask a classmate or family member to peer assess your work using the Scoring Guide to evaluate your work National Endowment for Financial Education Challenge 3-D: Planning for My Career High School Financial Planning Program June 2014

119 Challenge 3-D: Planning for My Career NAME: DATE: Content Required Criteria Status 1. You list one short-term skill-development or career-related goal. (zero three months) acceptable not acceptable 2. You list one medium-term skill-development or career-related goal. (three months one year) acceptable not acceptable 3. You list one long-term skill-development or career-related goal. (more than a year) acceptable not acceptable Status Rating Key: A = Acceptable / NA = Not Acceptable Short Term Medium Term Long Term Each goal states one specific outcome with specific actions to carry out to fulfill the outcome. Each goal states benchmarks and the expected evidence to measure when the goal has been achieved. You justify that each goal is attainable and realistic based on your current circumstances and the resources that you expect to be available. You summarize how each goal is relevant and meaningful to your current life situation and values. Each goal includes a timeline with a target completion date and milestone dates for any significant mid-point actions. General 9. Documentation is neat and easy to read. acceptable not acceptable 10. Your calculations are accurate. acceptable not acceptable Feedback: Score: / 2014 National Endowment for Financial Education Challenge 3-D: Planning for My Career High School Financial Planning Program June 2014

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121 TEACHER LESSON PLAN Lesson 3-5: Plan for Change OVERVIEW Your career will have many highs and lows. By creating a plan and continually investing in yourself, you ll get through the low times faster. A little preparation will go a long way when your income takes a dive. Of course, it s easier to prepare if you know in advance that change is coming, such as when you decide to quit a summer job to focus on school or when you move to a new city. Still, there s a lot you can do in advance to ease the stress of a layoff or unexpected work interruption. What you learn in this lesson will help you deal with temporary or unexpected drops in income. LEARNING OUTCOMES In this lesson students outline a plan to deal with changes in income. Along the way they will: Give examples of work-related changes that can impact financial status. Discuss ways to deal with irregular or temporary drop in income. Identify skills, knowledge, and attitudes that employers value in the workplace. Consider entrepreneurial possibilities. Students will use what they learn today to prepare for changes in income and work status. PREPARATION Order a Module 3 Student Guide for each student. (The Guide is also available online to download.) Preview the lesson PowerPoint presentation, learning tasks, and Module 3 Student Guide, particularly pages Print or download the Student Learning Plan for this lesson so each student has a copy. Preview the Success Stories you will use for Tasks 2, 4, and 5. Have enough copies on hand to read individually, in small groups, or for the whole class. WHAT YOU WILL NEED Module 3 Student Guide (pages 32-39) PowerPoint Presentation 3-5 Student Learning Plan 3-5 Success Stories Task: Work for Myself Activity 3.13: Downsizing My Financial Plan Challenge 3-C: My Accomplishments Challenge 3-D: Planning for My Career Internet access (option for Task 3) NOTES: Approximate time: 45 minutes (minimum) - 90 minutes (with extension activities) 2014 National Endowment for Financial Education Lesson 3-5: Plan for Change High School Financial Planning Program 1 June 2014

122 TEACHER LESSON PLAN Lesson 3-5: Plan for Change Learning Tasks Teaching Notes Materials 1. Brainstorm a list of challenges teens face when it comes to predicting income. PROCEDURE TIME ESTIMATE: 5 minutes Teens typically don t have a regular, predictable income year-round. Ask students (either in small groups or independently) to brainstorm a list of challenges teens face when it comes to predicting their income. Examples: irregular hours and work schedule, few working hours, lower-paying jobs, unfavorable or inconvenient hours that interfere with school and extracurricular activities, lack of transportation, temporary work, or seasonal work. [Slide 2] Invite students to share responses to generate a class list. Point out the reality that there will be dry times when they are either not earning income or earning less than expected to meet their payment obligations and savings goals. As adults, they will encounter similar dips in income due to seasonal work, change in business decisions, and personal choices. [Slide 3] Preview the learning outcomes in the Student Learning Plan. By the end of this lesson, students should be able to outline strategies to cope in times of irregular income. EXTENSION: If applicable and as time allows, use any local news or situations as examples of instances when workers are displaced from their jobs, such as mass layoffs or business closures due to management decisions, disasters that interrupt business operations (i.e. flood, hurricane), or seasonal work (construction, agriculture, tourism). Discuss how the individuals and community are impacted and any procedures that might be in place to assist the displaced workers. Module 3 Student Guide Student Learning Plan SLIDES 2 - Dips in Income 3 - Preview 2. How do you think the Chinese proverb Dig the well before you are thirsty applies to a person s work status and income? Generate a list of strategies to cope with dips in your income. PROCEDURE TIME: 10 minutes [Slide 4] Display the slide and ask students to interpret how this applies to a person s work status and income, particularly when their work situation changes or income source is interrupted. Read (whole class or independently) the first Success Story: From Homeless to Hair Care Billionaire. Debrief by asking students to identify strategies Mr. DeJoria used to cope with low income and changes in work status. [Slide 5 heading] Although teens might not yet be experienced or confident money managers, they are already developing skills to cope with irregular income sources. Similar coping skills can be applied later when they are between jobs as adults. Ask students to share advice or lessons they have learned to deal with irregular income. As ideas are presented, guide students to explain how these strategies might be applied to situations they will run into as adults. [Slide 5] Fill in gaps by presenting offensive strategies to prepare for dips in income. STUDENT GUIDE Page 38 SLIDES 4 - Dig the Well 5 - An Offensive Strategy ACTIVITIES Success Story: From Homeless Activity 3.13: Downsizing My Financial Plan 2014 National Endowment for Financial Education Lesson 3-5: Plan for Change High School Financial Planning Program 2 June 2014

123 TEACHER LESSON PLAN Lesson 3-5: Plan for Change Learning Tasks Teaching Notes Materials (optional) Complete Activity 3.13: Downsizing My Financial Plan. If students completed Challenge 1-C: My Spending Plan while studying Module 1: Money Management, assign Activity 3.13: Downsizing My Financial Plan to adjust their spending plans for a what if situation that may cause them to have a drop in income (i.e. leave a job, work fewer hours). 3. Re-read Tom s story on page 37. What advice would you give Tom in this time of misfortune? PROCEDURE TIME: minutes [Slide 6] Point out strategies to deal with drops in income or uneven income flow. Stress to students the value of living within or below their current means, which includes regularly building up savings to have money on hand for lean times. Someone who lives paycheck to paycheck takes the risk of not being able to meet their payment obligations if their usual expected income drops. A person with irregular or seasonal income can estimate an average monthly income to evenly plan out how their earnings will cover regular monthly expense obligations. Example: A teacher arranges to received equal paychecks over a 12-month time period rather than receive paychecks only during the nine-month school year. Review strategies to deal with downtimes from Slide 6, the Ready, Set, Promotion list on page 35; and/or the Preemptive Strikes for Down Times on page 37. Challenge the students to estimate the income they received from various sources over the past 12 months. Have them calculate how much this averaged per month if they had spread out that amount evenly over the 12 months. This strategy can be used to establish a guide for what they have available each month to spend and save. Arrange students into pairs for this activity. Have students re-read Tom s story on page 37. Establish a time limit for the pairs to plan how they would advise Tom to cope with his situation. If Internet access is possible, have students search for resources available to Tom, including what he might do to collect unemployment benefits and strategies to negotiate payment modifications with creditors. (NOTE: Have students perform state-specific keyword searches, such as apply for unemployment in Texas. ) Use Slide 7 as an option to introduce unemployment benefits. See the slide notes for more details. If time allows, have students share their advice as a role play in small groups or by reporting out to the whole class. [Slides 8-9] Provide strategies to deal with job termination and gaps in employment. Slide 9 includes more detailed notes about strategies to explain gaps in employment. STUDENT GUIDE Pages SLIDES 6 - Dealing with Down Times 7 Facts About Unemployment 8 LACE Up if Losing Your Job 9 Mind the Gap 2014 National Endowment for Financial Education Lesson 3-5: Plan for Change High School Financial Planning Program 3 June 2014

124 TEACHER LESSON PLAN Lesson 3-5: Plan for Change Learning Tasks Teaching Notes Materials NOTES: You may want to bring in a guest speaker from your local One- Stop Career Center or Unemployment Office to review the unemployment application process and employment resources available to students. EXTENSION: This activity can be expanded to include plans for other types of unexpected family disasters or work-place interruptions such as the ones discussed in the previous task. 4. The best offense to having a steady flow of income is to be employable. Compare your skills with what employers want. How can you develop work skills when you are not employed? Complete Challenge 3-C: My Accomplishments to create or update a list of your accomplishments, skills, training, and certification. Be sure to include any details such as dates, places, and title. If you have a resume, update your resume with any new information. PROCEDURE 5-10 minutes Facilitate a discussion about the value of keeping options open rather than closing doors to quickly recover when faced with a change in work status. Your reputation as a valued employee can help open doors to promotions or recommendations for future jobs when it is necessary to change jobs. Use Slide 10 and the slide notes to point out the skills that employers value in an employee. [Slide 11] Provide examples to build a reputation as a valued employee. Reference the Ready, Set, Promotion strategies on page 35 in the student guide and the additional information in the slide notes. [Slide 12] Point out the value of volunteer experiences and college internship opportunities. Share any relevant personal experiences. Read the Success Story: Copy Her Success for an example of how an internship was part of Ms. Burns career journey. See the slide notes for additional notes about the value of internships and volunteer jobs. EXTENSION: Invite someone to speak to the class about his or her internship experiences. EXTENSION: Arrange for students to investigate resources that post opportunities for internships (start at college websites) and volunteer experiences. Volunteer Match, is one place to search for local volunteer opportunities. STUDENT GUIDE Pages SLIDES 10 7 Super Skills for Any Career 11 Jumpstart the Journey 12 Internships and Volunteer Experiences 13 Reflection 14 Challenge 3-C ACTIVITIES Success Story: Copy Her Success Challenge 3-C: My Accomplishments [Slide 13] Tell the students to reflect on the following question: What three things can I do to ensure that my workplace reputation will not hurt me in the future? [Slide 14] Establish a timeline for students to complete Challenge 3-C: My Accomplishments to list their accomplishments, including dates, any titles, and place if relevant. For example: Red Cross First-Aid certificate [date]; Red Cross Babysitting certificate [date]; Boy Scout Eagle Award [date]; College-Level Math Course [date], [college]; Job [job title], [job duties], [employer, city], [date] National Endowment for Financial Education Lesson 3-5: Plan for Change High School Financial Planning Program 4 June 2014

125 TEACHER LESSON PLAN Lesson 3-5: Plan for Change Learning Tasks Teaching Notes Materials If students already have resumes, instruct them to add any new information to their resumes. If resume-writing is new to students, provide an overview of what to include in and how to format a resume. Provide examples. Check online or with the Guidance Department personnel for resume-writing tips and examples. Resource: CashCourse website. Here students will find helpful tips to write a resume and prepare for a job interview One way people deal with job loss is to go into business for themselves. This can also be a great strategy for gaining work experience if you are unable to find a job working for someone else. Find out if you have what it takes to be an entrepreneur. PROCEDURE 10+ minutes [Slide 15] Survey the class to generate ideas for how teens can earn income if they don t have a job working for someone else or they need extra income. As they present ideas, point out that these examples of self-employment are often the result of using their skills and interests to meet a need or solve a problem. Examples: babysitting, pet setting, pet walking, lawn and garden care, snow removal, deliveries, personal shopper, web design, computer set up or tech support, music performance (band, piano accompanist, organist), crafts, resale of unwanted items. As time allows, read any or all of the final three Success Stories: A Natural Success, Minting Money, and Persistence Brews Success to provide examples of individuals who used their skills to make their own business opportunities. Facilitate a discussion to answer these questions: Why did [the individual] pursue the business idea? What support or circumstances help make the business concept a reality? (If multiple stories are read) What do these individuals have in common? Arrange for students to complete the Work for Myself task to think about skills they may have to work for themselves. EXTENSION: Junior Achievement USA, ( provides interactive entrepreneur programs led by local volunteers who share their business experiences with the students. Middle Grade Program: JA It s My Business. Students learn about basic entrepreneurial skills. High School Program: JA Be Entrepreneurial. Students are challenged to start entrepreneurial ventures while in high school. SLIDE 15-Entrepreneurship ACTIVITIES Success Stories: A Natural Success, Minting Money, Persistence Brews Success Task: Work for Myself 2014 National Endowment for Financial Education Lesson 3-5: Plan for Change High School Financial Planning Program 5 June 2014

126 TEACHER LESSON PLAN Lesson 3-5: Plan for Change Learning Tasks Teaching Notes Materials 6. Complete Challenge 3-D: Planning for My Career to create a career plan. PROCEDURE In-class or out-of-class assignment If Challenge 3-D wasn t assigned during Lesson 3-4, guide the students to reference their responses for the My Future Life task and Activity 3.11 as they plan their goals for Challenge 3-D: Planning for My Career. Instruct the students to include strategies to cope with changes in income and work status. Resource: CashCourse website, Here students will find helpful resources such as a Job Priorities worksheet and a Job Comparison worksheet. STUDENT GUIDE Page 39 SLIDE 16 Challenge ACTIVITY Challenge 3-D: Planning for My Career Internet (optional) TAKING IT HOME Interview a family member about his or her work history. FURTHER STUDY Identify one or two adults whom you think would be suitable mentors. PROCEDURE In-class or out-of-class assignment Encourage students to ask a family member about part-time employment and strategies s/he has used to manage changes in income. PROCEDURE In-class or out-of-class assignment Encourage students to consider whom they might ask to serve as their career or entrepreneur mentor. RESOURCE: SCORE ( is national network of experienced business leaders who offer free, valuable advice for small business owners. These volunteer counselors also mentor business professionals who are getting started in their careers as well as reach out to youth entrepreneurs. FURTHER STUDY Interview a local entrepreneur. PROCEDURE In-class or out-of-class assignment Assign or arrange for students to interview local entrepreneurs about their experiences and lessons learned. TAKING IT HOME Ask a family member or close adult the following questions: 1. What types of temporary or part-time jobs did you have when you were a teen or young adult? 2. What money management strategies do you recommend for someone who has a sudden drop in income? 3. What has helped you transition from one job to the next job? TAKING IT HOME Identify one or two adults whom you think would be suitable mentors to provide advice and guidance as you get started in your career. Seek out someone who is successful and has had experiences similar to what you hope to encounter. FURTHER STUDY Interview a local entrepreneur to learn about how s/he got started on his or her business endeavor. Ask what s/he thinks it takes to be a successful entrepreneur National Endowment for Financial Education Lesson 3-5: Plan for Change High School Financial Planning Program 6 June 2014

127 High School Financial Planning Program Lesson 3-5: Plan for Change 2014 National Endowment for Financial Education 0

128 High School Financial Planning Program Lesson 3-5: Plan for Change Display this slide as you begin today s lesson National Endowment for Financial Education 1

129 High School Financial Planning Program Lesson 3-5: Plan for Change Before showing the content of this slide Teens typically don t have a regular, predictable income year-round. Ask students (either in small groups or independently) to brainstorm a list of challenges teens face when it comes to predicting their income. Examples: irregular hours and work schedule, few working hours, lower-paying jobs, unfavorable or inconvenient hours that interfere with school and extracurricular activities, lack of transportation, temporary work, or seasonal work. Invite students to share responses to generate a class list. 1 st click to show Teen list Point out the reality that there will be dry times when they are either not earning income or earning less than expected to meet their payment obligations and savings goals. 2 nd click to show More Challenges list As adults, they will encounter similar dips in income due to seasonal work, change in business decisions, and personal choices. EXTENSION: If applicable and as time allows, use any local news or situations as examples of instances when workers are displaced from their jobs, such as mass layoffs or business closures due to management decisions, disasters that interrupt business operations (i.e. flood, hurricane), or seasonal work (construction, agriculture, tourism). Discuss how the individuals and community are impacted and any procedures that might be in place to assist the displaced workers National Endowment for Financial Education 2

130 High School Financial Planning Program Lesson 3-5: Plan for Change Preview the learning outcomes in the Student Learning Plan. By the end of this lesson, students should be able to outline strategies to cope in times of irregular income National Endowment for Financial Education 3

131 High School Financial Planning Program Lesson 3-5: Plan for Change Display the slide and ask students to interpret how this applies to a person s work status and income, particularly when their work situation changes or income source is interrupted. Read (whole class or independently) the first Success Story: From Homeless to Hair Care Billionaire. Debrief by asking students to identify strategies Mr. DeJoria used to cope with low income and changes in work status National Endowment for Financial Education 4

132 High School Financial Planning Program Lesson 3-5: Plan for Change Student Guide, page 38 Show slide heading Although teens might not yet be experienced or confident money managers, they are already developing skills to cope with irregular income sources. Similar coping skills can be applied later when they are between jobs as adults. Ask students to share advice or lessons they have learned to deal with irregular income. As ideas are presented, guide students to explain how these strategies might be applied to situations they will run into as adults. Click to show the content in this slide Fill in gaps by presenting offensive strategies to prepare for dips in income. Consider sharing any related personal experiences. If students completed Challenge 1-C: My Spending Plan while studying Module 1: Money Management, assign Activity 3.13: Downsizing My Financial Plan to adjust their spending plans for a what if situation that may cause them to have a drop in income (i.e. leave a job, work fewer hours) National Endowment for Financial Education 5

133 High School Financial Planning Program Lesson 3-5: Plan for Change Student Guide, pages 34, 37 As you click through this slide Point out strategies to deal with drops in income or uneven income flow. Stress to students the value of living within or below their current means, which includes regularly building up savings to have money on hand for lean times. Someone who lives paycheck to paycheck takes the risk of not being able to meet their payment obligations if their usual expected income drops. A person with irregular or seasonal income can estimate an average monthly income to evenly plan out how their earnings will cover regular monthly expense obligations. Example: A teacher arranges to received equal paychecks over a 12-month time period rather than receive paychecks only during the nine-month school year. Review strategies to deal with downtimes from this slide; the Ready, Set, Promotion list on page 35; and/or the Preemptive Strikes for Down Times on page 37. Challenge the students to estimate the income they received from various sources over the past 12 months. Have them calculate how much this averaged per month if they had spread out that amount evenly over the 12 months. This strategy can be used to establish a guide for what they have available each month to spend and save National Endowment for Financial Education 6

134 High School Financial Planning Program Lesson 3-5: Plan for Change Student Guide, page 37 Arrange students into pairs for the next activity. Have students re-read Tom s story on page 37. Establish a time limit for the pairs to plan how they would advise Tom to cope with his situation. If Internet access is possible, have students search for resources available to Tom, including what he might do to collect unemployment benefits. (NOTE: Have students perform state-specific keyword searches, such as apply for unemployment in Texas. ) Use this slide to introduce unemployment benefits. If time allows, have students share their advice as a role play in small groups or by reporting out to the whole class. Talking Points: Losing a job is one of the most stressful situations anyone can face. You have to worry about paying your bills and finding a new job. But our jobs are also a big part of our identity. So, finding yourself unemployed can be a serious blow to your self-esteem. Unemployment insurance will replace some of the income you re not earning. But eligibility, benefit amounts and the maximum collection period varies by state, so consult your state unemployment office for specifics. In the meantime, here are five important facts to know: You probably can t collect unemployment if you re fired or quit voluntarily your job loss can t be your fault. Your employer also must approve payment of your unemployment benefits. You can collect a weekly check for up to 26 weeks. In times of high unemployment, the limit is longer. Right now, some states will pay benefits for up to 99 weeks. The amount you receive depends on your state s formula. But it s usually no more than half of your average weekly earnings during the prior year, up to a set limit. Unemployment benefits are considered taxable income and must be reported on your federal income tax return. You can still collect unemployment if you pick up a part-time or temporary job, although the amount of your check will be reduced National Endowment for Financial Education 7

135 High School Financial Planning Program Lesson 3-5: Plan for Change Use Slides 8 and 9 to provide strategies to deal with job termination and gaps in employment. NOTES: You may want to bring in a guest speaker from your local One-Stop Career Center or Unemployment Office to review the unemployment application process and employment resources available to students. EXTENSION: This activity can be expanded to include plans for other types of unexpected family disasters or work-place interruptions such as the ones discussed in the previous task National Endowment for Financial Education 8

136 High School Financial Planning Program Lesson 3-5: Plan for Change While you may think of the clothing store when you see the word gap, employers see a red flag. Once you start working full-time, a long break between recent jobs or since your last job makes potential employers wonder if you re unreliable, or if your skills and knowledge are out of date. On the other hand, it can be nerve-wracking to explain the gap especially if you were fired, in jail or are plain embarrassed about why you stopped working. While that s understandable, smart job hunters will keep three things in mind: Never lie. These days, your skeletons are just an Internet search or background check away. It s far better to fess up to your mistakes and explain what you ve learned from them than make up a story that sounds better. Never blame someone else. Whether your boss was Cruella De Vil, your co-worker was harassing you, or you were unfairly passed you over for promotion skip the tale of woe because no one wants to hire a whiner. It doesn t matter how true the tale is, blaming others for your problems sounds like a whiner to potential employers. Keep learning and growing. Volunteer for a leadership position with a nonprofit group. Take classes to upgrade your skills. Do freelance work for other companies. Start your own business. Go build houses in Central America. All these activities show initiative and help you stand out to employers. List them like you would any other job or education on your resume. How long is too long? If the gap between jobs was within the last few years and more than four months, include a short and sweet explanation in your cover letter. Keep it to two sentences at most and mention that you re eager to return to the workforce. If they ask about it in an interview, give the same brief explanation, adding anything you did during that time that would be relevant to the position you re applying to National Endowment for Financial Education 9

137 High School Financial Planning Program Lesson 3-5: Plan for Change Facilitate a discussion about the value of keeping options open rather than closing doors to quickly recover when faced with a change in work status. Your reputation as a valued employee can help open doors to promotions or recommendations for future jobs when it is necessary to change jobs. Point out the skills that employers value in an employee. Extensive surveys of leading U.S. employers have revealed seven critical skills to master to get and keep a good job in today s economy. They are: Critical thinking and problem-solving. Companies need every employee to critically evaluate products, processes and services to fix weaknesses and make more strategic decisions. Collaborating and leading by influence. Being a good team player helps your performance. So does being able to motivate others to work together toward a common goal instead of just being a dictator. Agility and adaptability. Technology, companies and marketplaces are constantly evolving. So flexibility and a willingness to learn new things are essential to long-term career success. Initiative and entrepreneurialism. Looking for opportunities to take on new responsibilities and give your employer an edge on the competition boosts the company and your career. Effective oral and written communication. Communicating effectively with co-workers, bosses, customers and more is critical to performing virtually any job. Accessing and analyzing information. In this information-hungry world, being able to quickly sort and find the most relevant and credible information for the task at hand is a definite advantage. Curiosity and imagination. It might have killed the cat but employers prefer employees who are interested enough to be curious about issues beyond the scope of their job. Bosses appreciate employees who put their own creative stamp on a task instead of waiting for them to explain exactly how to do it. Notice how these skills apply to all kinds of jobs. So continuing to sharpen these skills will boost your prospects and your income for the rest of your career National Endowment for Financial Education 10

138 High School Financial Planning Program Lesson 3-5: Plan for Change Student Guide, page 35 Provide examples to build a reputation as a valued employee. Reference the Ready, Set, Promotion strategies on page 35 in the student guide. It s never too early to start sharpening your skills and exploring possible careers. Researching a career online is good, but the best insights will come from talking to people who have that job and testing the waters yourself. You may build some resume-worthy skills too. Here are some ways to do that: Part-time jobs that let you build skills and get a foot in the door Internships and volunteer work for a behind-the-scenes look at a career or industry Training camps and courses to test your talents and see if you truly like it Skill and career assessments to pinpoint strengths and possibilities Interview or shadow people who have your dream job Professional societies and associations that provide information about specific careers or industries Career-related clubs that allow you to explore different options Putting your abilities on display by starting your own business Temporary jobs that expose you to a variety of industries and employers 2014 National Endowment for Financial Education 11

139 High School Financial Planning Program Lesson 3-5: Plan for Change Point out the value of volunteer experiences and college internship opportunities. Share any relevant personal experiences. Read the Success Story: Copy Her Success for an example of how an internship was part of Ms. Burns career journey. Although internships and volunteer positions may not deliver an immediate paycheck, they can help you land terrific jobs in the future. That s because they can provide: Demonstrated skills and on-the-job accomplishments for your resume Relevant work experience 41% of hiring professionals consider volunteer work as valuable as paid work experience and 20% have hired someone based on their volunteer experience Impressive references for college applications and future employers Valuable connections for whatever career you decide to pursue College credit, if you arrange the internship through your school Perks like being able to attend special events A full-time job 61% of employers made full-time offers to their interns in 2011 [Source: LinkedIn, LinkedIn adds "Volunteer Experience & Causes" field to Profile, September 7, 2011, National Association of Colleges and Employers (NACE), 2012 Internship & Co-op Survey, Executive Summary, April 2012] So don t discount an internship or volunteer position just because it s free! EXTENSION: Invite someone to speak to the class about his or her internship experiences. EXTENSION: Arrange for students to investigate resources that post opportunities for internships (start at college websites) and volunteer experiences. Volunteer Match, is one place to search for local volunteer opportunities National Endowment for Financial Education 12

140 High School Financial Planning Program Lesson 3-5: Plan for Change REFLECTION: Tell the students to reflect on the following question: What three things can I do to ensure that my workplace reputation will not hurt me in the future? 2014 National Endowment for Financial Education 13

141 High School Financial Planning Program Lesson 3-5: Plan for Change Student Guide, page 35 Establish a timeline for students to complete Challenge 3-C: My Accomplishments to list their accomplishments, including dates, any titles, and place if relevant. Examples: Red Cross First-Aid certificate [date] Red Cross Babysitting certificate [date] Boy Scout Eagle Award [date] College-Level Math Course [date completed], [college] [job title], [job duties], [employer], [city], [dates] If students already have resumes, instruct them to add any new information to their resumes. If resume-writing is new to students, provide an overview of what to include in and how to format a resume. Provide examples. Check online or with the Guidance Department personnel for resume-writing tips and examples. Resource: CashCourse website. Here students will find helpful tips to write a resume and prepare for a job interview National Endowment for Financial Education 14

142 High School Financial Planning Program Lesson 3-5: Plan for Change Survey the class to generate ideas for how teens can earn income if they don t have a job working for someone else or they need extra income. As they present ideas, point out that these examples of self-employment are often the result of using their skills and interests to meet a need or solve a problem. Examples: babysitting, pet setting, pet walking, lawn and garden care, snow removal, deliveries, personal shopper, web design, computer set up or tech support, music performance (band, piano accompanist, organist), crafts, resale of unwanted items. As time allows, read any or all of the final three Success Stories: A Natural Success, Minting Money, and Persistence Brews Success to provide examples of individuals who used their skills to make their own business opportunities. Facilitate a discussion to answer these questions: Why did [the individual] pursue the business idea? What support or circumstances help make the business concept a reality? (If multiple stories are read) What do these individuals have in common? Arrange for students to complete the Work for Myself task to think about skills they may have to work for themselves. EXTENSION: Junior Achievement USA, ( provides interactive entrepreneur programs led by local volunteers who share their business experiences with the students. Middle Grade Program: It s My Business. Students learn about basic entrepreneurial skills. High School Program: JA Be Entrepreneurial. Students are challenged to start their own entrepreneurial ventures while in high school National Endowment for Financial Education 15

143 High School Financial Planning Program Lesson 3-5: Plan for Change Student Guide, page 39 If this Challenge wasn t assigned during Lesson 3-4, guide the students to reference their responses for the My Future Life task and Activity 3.11 as they plan their goals for Challenge 3-D: Planning for My Career. Instruct the students to include strategies to cope with changes in income and work status. Resource: CashCourse Prep website, Here students will find helpful resources such as a Job Priorities worksheet and a Job Comparison worksheet National Endowment for Financial Education 16

144 High School Financial Planning Program Lesson 3-5: Plan for Change 2014 National Endowment for Financial Education 17

145 STUDENT LEARNING PLAN Lesson 3-5: Plan for Change OVERVIEW Your career will have many highs and lows. By creating a plan and continually investing in yourself, you ll get through the low times faster. A little preparation will go a long way when your income takes a dive. Of course, it s easier to prepare if you know in advance that change is coming, such as when you decide to quit a summer job to focus on school or when you move to a new city. Still, there s a lot you can do in advance to ease the stress of a layoff or unexpected work interruption. What you learn in this lesson will help you deal with temporary or unexpected drops in income. LEARNING OUTCOMES In this lesson you will outline a plan to deal with changes in income. Along the way you will: Give examples of work-related changes that can impact financial status. Discuss ways to deal with irregular or a temporary drop in income. Identify skills, knowledge, and attitudes that employers value in the workplace. Consider entrepreneurial possibilities. Use what you learn today to prepare for changes in income and work status LEARNING TASKS These tasks match pages of Guide 3. Brainstorm a list of challenges teens face when it comes to predicting income. How do you think the Chinese proverb Dig the well before you are thirsty applies to a person s work status and income? Generate a list of strategies to cope with dips in your income. (optional) Complete Activity 3.13: Downsizing My Financial Plan. Re-read Tom s story on page 37. What advice would you give Tom in this time of misfortune? The best offense to having a steady flow of income is to be employable. Compare your skills with what employers want. How can you develop work skills when you are not employed? Complete Challenge 3-C: My Accomplishments to create or update a list of your accomplishments, skills, training, and certification. Be sure to include any details such as dates, places, and title. If you have a resume, update your resume with any new information. One way people deal with job loss is to go into business for themselves. This can also be a great strategy to gain work experience if you are unable to find a job working for someone else. Find out if you have what it takes to be an entrepreneur. Complete Challenge 3-D: Planning for My Career to create a career plan. TAKING IT HOME Ask a close adult the following questions: 1. What types of temporary or part-time jobs did you have when you were a teen or young adult? 2. What money management strategies do you recommend for someone who has a sudden drop in income or inconsistent income? 3. What has helped you transition to new jobs? TAKING IT HOME Identify someone you think would be a suitable mentor to provide guidance as you get started in your career. Seek out someone who is successful and has had experiences similar to what you hope to encounter. FURTHER STUDY Interview a local entrepreneur to learn about how s/he got started on his or her business endeavor. Ask what s/he thinks it takes to be a successful entrepreneur National Endowment for Financial Education Lesson 3-5: Plan for Change High School Financial Planning Program June 2014

146 Activity 3-13: Downsizing My Financial Plan NAME: DATE: Directions: If you studied money management skills in Module 1: Money Management, take a look at the spending plan you created for Challenge 1-C. Change your spending plan to show the adjustments you will make if you happen to have a drop in income or irregular income for reasons such as leaving a job, working fewer hours than expected, or working at a job with unpredictable hours. My Income: Original Amounts Adjusted Amounts My Total Income: $ $ My Expenses: Original Amounts Adjusted Amounts My Total Expenses: $ $ 2014 National Endowment for Financial Education Activity 3.13: Downsizing My Financial Plan High School Financial Planning Program June 2014

147 Success Stories: Entrepreneurs FROM HOMELESS TO HAIR CARE BILLIONAIRE John Paul DeJoria spent much of his youth in an East Los Angeles street gang. At 9 years old, he started selling greeting cards and delivering newspapers to help his immigrant mom keep their struggling family together. But it didn t work and he ended up in foster care. A high school math teacher s commented that he d never succeed at anything in life prompted DeJoria to clean up his act. He joined the Navy Reserve after graduation. Two years later, he was honorably discharged and floated through a series of jobs, including encyclopedia salesperson, janitor, and bike mechanic. He was even homeless for a time, cashing in soda bottles to make ends meet. Eventually, he landed an entry-level marketing job with Time magazine. Good performance helped him work his way up to Los Angeles Circulation Manager. But his boss said he wouldn t be promoted again without a college education. DeJoria left and was fired from his next three jobs. Instead of giving up, he and hair designer friend Paul Mitchell borrowed $700 to create a hair care system for salon professionals. DeJoria was totally broke and living in his car again. So he created an innovative door-to-door sales strategy based on his past encyclopedia sales experience to get the company off the ground. Today, the multi-billionaire co-founder and CEO of Paul Mitchell Systems is known for donating millions each year to worthy causes. "I look upon the misfortunes in my life as blessings because they got me to the next step," DeJoria says. "Whatever you do, if you do it better than anyone else, it's amazing how things just start falling your way National Endowment for Financial Education Success Stories: Entrepreneurs High School Financial Planning Program June 2014

148 Success Stories: Entrepreneurs COPY HER SUCCESS Ursula Burns grew up in the projects of New York City s lower East Side. Her mom took in ironing and ran a day care so she could send Burns and her two siblings to better schools. Although she was a math whiz, teachers tried to steer Burns toward nursing. But she researched the top-paying mathrelated fields and decided instead to attend the Polytechnic Institute in Brooklyn for mechanical engineering degree. After a summer internship at Xerox, she accepted an entry-level job and the company helped pay to earn master's degree from Columbia University. Burns was quite content with her engineering career at the printing giant. But that changed in 1990, when her boldness on a companywide panel caught the attention of a Xerox executive. He offered to mentor her. Working alongside him raised her sights to the executive suite. Another high-level mentorship opportunity followed. In 2007, she became company president. Burns made headlines by becoming the first black woman CEO of a Fortune 500 company in She s been on Fortune magazine's Top 50 Most Powerful Women in America every year since 2005 and Forbes Most Powerful Women in the World since When talking about her success, Burns credits her mom for instilling the belief that circumstances shouldn t define you. As she said, Where you are is not who you are National Endowment for Financial Education Success Stories: Entrepreneurs High School Financial Planning Program June 2014

149 Success Stories: Entrepreneurs A NATURAL SUCCESS A big chunk of 19-year-old Jasmine Lawrence s income comes from Walmart. She doesn t work for the retailer though they sell her Eden Body Works line of all natural hair care products in their stores. After a chemical relaxer left her embarrassed and nearly bald at 11 years old, Lawrence vowed to never again put chemicals on her hair. But finding a truly natural product proved impossible. So she started experimenting to make her own. Soon, others were commenting on her gorgeous hair and she decided to help others have naturally beautiful hair, too. A Network for Teaching Entrepreneurship summer camp and $2,000 loan from her parents using her allowance as collateral provided the know-how and funding. Lawrence started selling her hair products to friends and family from her parents basement when she was 13 years old. Next, she asked salons in her Williamstown, New Jersey, hometown to carry her product. Sales were going well. But after she was invited to appear on the Oprah show, sales went through the roof. Big chains like Wal-Mart and Whole Foods called soon after that. By the time Lawrence graduated high school, Eden Body Works was a multi-million dollar business and her mom had become a full-time employee. But years of watching her engineer parents, both military veterans, immersed in technology had sparked her passion in robotics. Determined to follow her dream, she hired a management team to handle daily operations and moved south to earn a degree in computer engineering from Georgia Tech University. As Lawrence likes to tell other teens, Just find your passion and live your dream All you have to do is just stay dedicated, stay focused, and just keep your mind on what you really want to do National Endowment for Financial Education Success Stories: Entrepreneurs High School Financial Planning Program June 2014

150 Success Stories: Entrepreneurs MINTING MONEY Aaron Patzer started earning money when he was 8 years old. After he built intricate, original K NEX models, his dad sold the designs back to the company. At 16, Patzer started selling web development services to local businesses. That money helped finance a computer science and two engineering degrees from Duke University. After graduation, he attended Princeton University for a master s in electrical engineering. Early on, he logged long hours working for IBM and a technology start-up. Tracking his money and spending had always been important to him. But he was frustrated by how much time it took to use traditional personal finance software. Fed up, one day he decided he had to find a faster, easier way. He researched possibilities, created a business plan, quit his day job, and spent seven months building a new solution. In 2007, the 26 year old launched Mint.com the first free, automatic and secure way to manage your money online. It quickly became a hit and more than 7 million people use Mint.com today. In 2009, Intuit (the maker of Quicken) paid Patzer $170 million to buy Mint.com. But even after the big payday, he s maintained his frugal ways. He drove his 1996 Ford Contour until it died and now lives in a 600 square foot apartment near Intuit, where he s currently Vice President of Innovation until he s ready to launch his next big idea. Patzer tells other aspiring entrepreneurs, Solve a real problem and the world is yours. He warns that it ll be long hours and a lot of hard work, But if you have confidence in your product, you will succeed National Endowment for Financial Education Success Stories: Entrepreneurs High School Financial Planning Program June 2014

151 Success Stories: Entrepreneurs PERSISTENCE BREWS SUCCESS An athletic scholarship was the ticket out of a Brooklyn, New York housing project for Howard Schultz, the first in his family to attend college. After graduation, he landed a good sales job with Xerox but found printers boring. Several sales jobs later, he met one of the three founders of a Seattle client Jerry Baldwin and was blown away by the passion he had for coffee. Schultz was determined to find a way to work for their company, which had a few stores selling coffee beans and supplies. He met with Baldwin several times over the next year. Each time, he shared ideas on how the little company could become a nationwide success. After dinner with all the founders one night, Schultz was sure he d won the job. He was crushed when he got the bad news the next day the founders just weren t ready for that much change. He refused to give up. He called Baldwin back and they finally offered him a job two days later. But, it would be a big step-down in title and salary from his current position. He said yes and joined Starbucks anyway. Three years later, the founders refused to back Schultz s vision of bringing the coffee shop concept so popular in Italy home to the U.S. Over the next year, he asked 242 people to invest in his new company 217 people said no. But the ones that said yes provided the money he needed. In 1986, the first location of Il Giornale opened. Even then I had a dream of building the largest coffee company in North America, with stores in every major city, Schultz said. Less than a year later, the Starbucks founders sold him their business. Schultz took over the company, renamed his coffee shops and the rest is history National Endowment for Financial Education Success Stories: Entrepreneurs High School Financial Planning Program June 2014