Certified Financial Education Instructor Training Manual

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2 Certified Financial Educatin Instructr Training Manual

3 Published by the Natinal Financial Educatrs Cuncil Cpyright 2014 by the Natinal Financial Educatrs Cuncil All Rights reserved. N part f this bk may be reprduced. Library f Cngress Catalging-in-Publicatin Data ISBN: Printed in the United States f America Requests fr permissin t make cpies f any part f this bk can be made t the Natinal Financial Educatrs Cuncil at N Earnings Prjectins, Prmises, r Representatins. Yu recgnize and agree that we have made n implicatins, warranties, prmises, suggestins, prjectins, representatins r guarantees whatsever t yu abut future prspects r earnings, r that yu will earn any mney, with respect t yur purchase f this financial educatin curriculum, and that we have nt authrized any such prjectin, prmise, r representatin by thers. Any earnings r incme statements, r any earnings r incme examples, are nly examples fr educatinal purpses. There is n assurance yu will d as well as stated in any examples. If yu rely upn any figures prvided, yu must accept the entire risk f nt ding as well as the infrmatin prvided. This applies whether the earnings r incme examples are mnetary in nature r pertain t advertising credits that may be earned (whether such credits are cnvertible t cash r nt). Due Diligence. Yu are advised t d yur wn due diligence when it cmes t making business decisins and shuld use cautin and seek the advice f qualified prfessinals. Yu shuld check with yur accuntant, lawyer, investment advisr, r ther apprpriate prfessinal befre acting n any investment infrmatin. Yu may nt cnsider any examples, dcuments, r ther cntent n the curse r therwise prvided by us t be the equivalent f legal, accunting, r investment advice. Nthing cntained in the curse r in materials available fr sale r dwnlad n the website prvides legal, investment, r accunting advice in any way. Yu shuld cnsult with yur wn attrney, financial investment advisr, and accuntant with any questins yu may have. We assume n respnsibility fr any lsses r damages resulting frm yur use f any infrmatin r pprtunity cntained within the curse, n the related website, r within any infrmatin disclsed by the wner f the curse and the website in any frm whatsever. Visit t review the cmplete earnings disclaimer and terms & cnditins.

4 Cntents Curse Guide Intrductin 3 Chapter I: The Financial Illiteracy Epidemic 8 Chapter II: The Hlistic Apprach t Teaching Financial Literacy 21 Chapter III: Quantifying Results 31 Chapter IV: Teaching Financial Literacy 36 Chapter V: Presentatin Tips 49 Chapter VI: Curriculum Overview 56 Chapter VII: Persnal Financial Plan 65 Online Learning Center Presentatin Lessn 1: Curse Overview & Benefits f Financial Literacy 67 Lessn 2: Missin and Financial Illiteracy Epidemic 75 Lessn 3: Financial Psychlgy: Decisin Making Prcess 83 Lessn 4: Financial Psychlgy: Emtins 89 Lessn 5: Measurement & Levels f Learning 95 Lessn 6: Quantifying Measurement Results 105 Lessn 7: Teaching Financial Literacy: Learning Styles 107 Lessn 8: Teaching Financial Literacy: Sales Apprach 112 Lessn 9: Participant Experience 118 Lessn 10: Mtivate, Engage, Educate & Mve t Actin 122 Lessn 11: Recap & Hlistic Apprach 129 Hw t Cmplete the Certified Financial Educatin Instructr Prgram Step 1: Watch the nline training vides in each lessn f yur nline learning center. Yu received an just after yur rder that cntains yur lg in infrmatin. Step 2: Cmplete the training manual fund n the first 65 pages f this guide. Step 3: Take the CFEI test. This is fund n the last lessn f yur nline learning center. Step 4: Upn cmpletin we will send ut yur Certificate and lg fr yur use. Step 5: Participate in nging training events We will ntify yu by when required. Step 6: Cmplete yur annual Certificatin requirements. Step 7: Teach financial literacy and make a lasting difference in the lives f thse yu tuch.

5 Intrductin Welcme t the Natinal Financial Educatrs Cuncil s Certified Financial Educatin Instructr Training Curse! Yu must have a passin fr helping peple that s why yu ve decided t spread the message f financial literacy. We at the NFEC share that passin, and we re excited t help yu learn hw t teach financial skills. Our prgram helps yu nt nly t teach the material effectively, but t use fun, interesting methds that keep yur audience engaged and invlved. Yu have a big jb ahead f yu. In this cuntry we re expsed t years upn years f advertisements urging us t Buy, buy, buy! When yu teach financial literacy, that s what yu re up against. But yu re abut t learn hw t mtivate students t take psitive steps tward financial health. The mney skills yu teach will influence every area f their lives. Over time, yu ll hear back frm them calls, letters, and s will start rlling in saying, When I first started the cursewrk, I was in a tugh situatin, I was really struggling. But after taking yur class, I m happier, healthier, and excited t live again. I can sleep thrugh the night! The students respnses will tuch and amaze yu. That s what will keep yu mtivated t fllw yur passin. The NFEC s gal is that yu have fun, yur students have fun, everyne has an experience t remember, and all yur lives are changed fr the better. Abut the NFEC The Natinal Financial Educatrs Cuncil (NFEC) is dedicated t creating a wrld where peple are infrmed t make qualified financial decisins that imprve their lives, the lives f their lved nes, and the lives f peple they reach arund the glbe. The NFEC ffers financial educatin resurces t rganizatins and individuals wrldwide; tailred t any age r sciecnmic backgrund. NFEC prducts and services are credited with revlutinizing hw financial literacy is taught. The rganizatin has develped practical resurces t serve a wide range f needs, including: Turnkey financial literacy slutins Signature large-scale financial educatin events and prmtins Financial literacy curriculum Educatr training Custmized prgrams Camps and wrkshps Multimedia learning centers 3

6 Cmprehensive financial literacy campaigns Financial literacy educatin standards All these resurces are crafted t mtivate participants t take psitive actin tward financial wellbeing. The NFEC places heavy fcus n measurement t ensure that participants achieve lng-term behaviral change fr a psitive future. Our cmmitment is t benefit peple s lives in the lng run. We wrk with tp-ntch financial and educatinal prfessinals t develp ur materials, peple wh understand first-hand the mney pitfalls int which ur cuntry s citizens s ften fall. That way we can shw peple hw t practively address typical mney issues and slve prblems befre they happen. Our cllabratrs are experts in debt cnslidatin, sub-prime mrtgage freclsures, retirement planning all thse tpics that keep peple frm sleeping at night. We believe deeply in cllabratin, partnership, and strategic relatins t guide educatinal materials that participants can truly apply t realwrld situatins. The NFEC Curriculum Advisry Bard cmprises expert members, award-winning educatrs, financial advisrs, authrs, bank auditrs, realtrs, prfessrs, mrtgage prfessinals, debt experts, attrneys, and nnprfit leaders. This expert grup has reviewed financial statements f mre than 50,000 and interviewed mre than 100,000 peple abut their persnal finances. The Bard reaches ver ne millin individuals each year via bks, training prgrams, pdcasts, and mre. Accrding t ur research, n ther rganizatin in the financial literacy space even cmes clse t the NFEC s scpe and utreach. What brings yu here tday? Imagine a yung man 20 years ag. Let s say this yung man bught sme real estate at age 18. By age 23, he had purchased several mre pieces f prperty, made sme stck investments, and started a small business. He wasn t rich, but he lived the lifestyle he wanted at the time. He was able t spend time with family and friends, take small trips, and satisfy his desire fr fun and adventure. Then the yung man made a few mistakes with his mney mistakes that culd easily have been avided if he d pssessed even the mst basic financial knwledge. But this yung man had never received any mney skills training, s he had n financial gals r plan fr the future. He failed t create a savings plan; he gt way ver his head in debt. He sld ff his assets. He was frced t take a lw-paying jb he didn t really want, and he began lying awake at night wrrying abut hw the bills wuld get paid. Cnstant wrry strained his relatinship 4

7 with his girlfriend and eventually she brke it ff. He saw his friends taking fun trips withut him he culdn t affrd t g, and his wrk schedule wuldn t allw it. One day the yung man started studying persnal finance and signed up fr a few free wrkshps. He wasn t sure if he believed in it, but he decided t g. And what he learned there changed his life. He fund ut nt nly hw t climb ut f the hle he was in, but that he culd take psitive actin steps t make sure he never fell dwn that hle again. He learned hw t set realistic financial gals and wrk tward them. He discvered the magic f cmpunding interest and investment skills. The yung man s real estate wrk put him in tuch with thusands f peple ging thrugh struggles f their wn. As he reviewed ne persnal financial statement after anther mving thrugh the hme lan apprval prcess, he realized that his pitfalls were nthing cmpared t what thers were facing. He heard stries that brke his heart: freclsure, crippling debt, bankruptcy, even hmelessness and death. These stries tuched him. He began t think, What legacy d I want t leave behind? Is there sme way I can pay frward what I ve learned? And his passin began t grw the passin t help thers gain thse basic skills that had pulled him ut f his financial pit. He decided t fllw that passin and becme a financial literacy instructr. This is just a stry, but it s based in reality. Each f yu has a stry t. What brings yu t the table t learn hw t teach financial educatin tday? Think abut yur persnal stry, the stry behind yur passin. Yu bring yur wn special backgrund and mtivatin t this training. Yu are unique, but yu re nt alne. Yur stry frms the basis fr yur cre values, beliefs, and identity. Take a mment nw t reflect n why yu re here. Write dwn a few reasns why yu re mtivated t learn hw t teach financial literacy. Why are yu interested in teaching financial literacy? Why is it imprtant t yu? 5

8 Write yur wn persnal stry. What were thse life events that lead yu t this curse and influenced yur desire t help peple imprve their financial capabilities? Here are sme cmmn answers t this questin, answers we at the NFEC have heard many times: 1) I will feel gd knwing I m giving thers the infrmatin I wish I d had. 2) I can make a true and lasting difference in smebdy s life. 3) Knwing hw t manage and invest mney is ne f the mst imprtant tpics peple need t learn. 4) Sharing these skills helps me wrk thrugh my wn mney prblems. The mre mtivatin yu have t teach financial literacy and the deeper yur reasns behind wanting t learn, the mre effective a teacher yu can becme. 6

9 Nw think abut the specific things yu d like t learn during this curse, and write them belw. What d yu want t learn tday? Here are sme answers we ve ften heard as t what peple want t learn frm this curse: 1) Hw t have mre impact when I teach. 2) Hw t teach mre effectively. 3) Hw t teach in a way that my students enjy. 4) Hw t imprve my wn financial situatin. We have tw mre questins t ask yu, questins that will be answered in the next sectin. Write yur answers belw: Why is financial literacy imprtant? What difference d yu think yu can persnally make in the lives f thse yu reach? 7

10 Chapter I: The Financial Illiteracy Epidemic This sectin will take yu deeper int what financial literacy means, the benefits f becming financially literate, the epidemic prprtins financial illiteracy has reached, the prblems a lack f mney knwledge can cause, and what yu can d abut it. Financial literacy defined Financial Literacy (fi-nan-shuhl lit-er-uh-see): Pssessing the skills and knwledge abut financial matters t cnfidently take effective actin that best fulfills ne s persnal, family, and glbal cmmunity gals. In ther wrds, financial literacy means having the skills t becme able t affrd yur gals, lifestyle, and aspiratins. Benefits f financial literacy T be mst effective, instructrs need t shw students hw financial literacy will imprve their individual lives. Peple want t understand the benefits f ding this cursewrk n a persnal level. S let s start with yu. Fllwing is a list f the benefits f financial literacy. Think abut what each f them means fr yu. Ability t live yur desired lifestyle. Imagine that yu culd spend all yur days ding exactly what yu lve. What wuld yu be ding? Hw wuld yu spend yur time? Whm wuld yu see, and what activities wuld yu chse? Free time. Achieving financial freedm means yu can spend mre f yur day ding thse things yu enjy. Independence and self-sufficiency. D yu wish yu didn t have t reprt t wrk every day? Or maybe yu lve yur jb, and just want t wrk a three-day week nce a mnth. Either way, financial literacy helps yu achieve the independence t wrk when and hw yu want. Security. Whether yu re wrking tward getting yur first jb r planning fr retirement, having yur finances secured is critical t yur future success. Making a psitive impact. Once yu becme financially literate, yu can affrd t give back yu can make a real difference in the wrld. Helping family and friends. Many high schl students tell us they want t learn abut mney s they can help ut their families. And lts f adults want t help thers t. Imagine being able t pay a lved ne s rent during a tugh time. Hw gd wuld that feel? 8

11 Fun. Buying tys, traveling, gaining status in the cmmunity all these are benefits f becming financially literate t. S peple want t learn mney skills nt because they want t becme financially literate, but because f what financial literacy will give them. Knwing these benefits and being able t share them with students is an imprtant first step tward becming an effective instructr. The American Dream The American Dream is that dream f a land in which life shuld be better and richer and fuller fr everyne, with pprtunity fr each accrding t ability r achievement. ~James Adams At the NFEC we view the American Dream as a glbal cncept. Whether yu re frm Kenya, Vietnam, Ireland, New Zealand, r Pakistan, yu dream f freedm, independence, happiness, and wellness fr yurself and fr yur lved nes. As stated s elquently by James Adams, the American Dream is a visin the whle wrld can embrace. Yur task is t effectively teach peple hw t live the American Dream. In rder t d that, yu first need t understand the prblems peple are facing. Prblems f financial illiteracy Financial illiteracy is nt an issue unique t any ne ppulatin. It affects everyne: men and wmen, yung and ld, acrss all racial and sciecnmic lines. N lnger can we stand by and ignre this prblem. The ecnmic future f the United States depends n it. ~ President s Advisry Cuncil n Financial Capability As we cntinue t mve twards a mre glbalized ecnmy built upn interdependencies and cperatin, it is clear that imprving the financial literacy f every natin s ppulace will define the wrld s ecnmic future. Ever natin has its wn unique ecnmic prblems. Hwever, many similarities exist amngst natins. Similarly, ever individual r family has a unique set f financial prblems, yet, when taken in aggregate, shw similarities acrss brders and cultures. Here are sme f the prblems financial illiteracy is causing amng Americans right nw: Regardless f their incme, 70% f US citizens are living paycheck t paycheck (The Wall Street Jurnal). One in every 45 husehlds (2,824,674 prperties natinwide) was in mrtgage default in 2009 (RealtyTrac). 9

12 40% f Americans will never gain a net wrth in excess f $10,000 (American Dream Educatin Campaign). In 2010 there were mre than 1.5 millin bankruptcy filings (Natinal Bankruptcy Research Center). Mre than 50% f pre-retirees underestimate their life expectancy; 40% f Americans are cunting n the lttery, sweepstakes, getting married, r an inheritance t fund their retirement (Walter Updegrave, Senir Editr, Mney Magazine). At the NFEC, we knw there s a chance yu may be ging thrugh ne r mre f these prblems yurself. Yu have wrries and cncerns; maybe yu can t sleep thrugh the night. If that s true, yu can turn it arund. The key is t build yur knwledge and skill set gaining financial literacy gives yu the curage t make the right mves. Take a mment t write dwn any financial stresses yu re experiencing right nw: Write dwn the financial stresses and cncerns f thse yu will be serving. If yu re nt exactly sure, take a mment t dwell n pssible circumstances they may be ging thrugh: Example: The kids I serve see their parents ging thrugh challenging financial circumstances. Many f them feel the stress in the husehld and are upset when they aren t able t d things their friends are able t d. 10

13 G ahead and dwell n yur financial stressrs fr a minute and empathize with thse yu will be serving. Nw that yu re dne thinking abut yur wrries, take a deep breath and let them g. This prgram will help yu relieve that stress. Knwledge brings cnfidence, and cnfidence banishes stress. Each sectin f this curse will build a piece f yur cnfidence. The mre we learn abut hw peple get int mney difficulties, the better prepared we are t teach peple f all ages hw t avid r get ut f thse situatins. We ve defined five main financial prblem areas: assets, incme, credit, debt and insurance. Take a lk at the fllwing diagram that illustrates these prblem areas. In the asset area, pr planning causes retirement shrtages, frcing peple t wrk until age 75, even 85; peple lack funds fr cllege r t fall back n in an emergency. Incme prblems stem frm relying n a single incme surce which may be unreliable, living 11

14 paycheck-t-paycheck; many face the burdens f back-wed taxes. Credit issues include late fees, judgment filings, and incrrect infrmatin n credit reprts. Our minimum payments g up because creditrs raise interest rates when we pay late. Heavy debt burdens raise ur payments, make it difficult t btain credit, and reduce ur cash flw. Finally, lack f understanding in insurances pens individuals up t increased liabilities and anxiety. All these prblems wrk tgether in a circle, as the diagram shws. When ur financial health fails in ne area, it affects anther. Let s say yu lse yur jb unexpectedly. Yu have n incme, r yu must live ff the minimal amunt yu receive frm unemplyment. Maybe yu delve int yur assets: cash in yur 401K r raid yur savings accunt. Or yu apply fr lans r credit cards and use them t meet husehld expenses. Perhaps yu brrw frm family r friends a situatin very dangerus t yur relatinships. Yu begin t cut back n insurance premiums; increasing yur liabilities. Yur lack f incme has nw thrwn ff yur debt, credit, asset and insurance areas as well. That s hw the circle wrks. Next think abut it frm a psitive viewpint. Say yu get a big raise, prmtin, r a secnd jb. Yur incme is higher; yu use the extra t pay ff debt, clear up judgments and imprve yur credit scre, and put mney int savings t build assets. Nw the circle is expanding in a psitive way. 12

15 If yu are wrking with adults answer this questin - Hw did the adults yu are serving end up in their current financial psitin? If yu are wrking with kids, teens r yung adults answer this questin What is the current financial psitin f the adults in the cmmunity and demgraphics yu serve and hw did they get there? There are lts f mney mistakes a persn might make, but mst peple tend t fall int a cmmn set f pitfalls. Here s a list f cmmn mistakes peple make with mney: Failing t clearly define hw much mney they need t live their desired lifestyle. Lack f a clear financial plan. N trusted financial mentr, advisr, r cach. Pr financial chices due t lack f financial knwledge (i.e., chices based n fear r greed). Taking advice frm the wrng peple (e.g., salespeple r friends). Prblems snwball ut f cntrl. Unrealistic expectatins f return n investment. Pr financial habits develped at an early age. The value f finding a gd mentr r cach cannt be verstated. When we want t get int physical shape, we hire a persnal trainer. Persnal caching is invaluable t prmting ne s financial health t. Having a knwledgeable financial cach smene yu can trust gains yu cnfidence and prepares yu t make gd decisins n yur wn. When yu lack financial knwledge, yu begin basing decisins n yur emtins. Mst bad financial decisins are made ut f fear (yu get scared when an investment takes a temprary dwnturn) r greed (yu risk everything n an investment that s ging well). When yu get advice abut investments, be sure t find ut yur advisr s backgrund and training. Anyne can take the Series 7 exam and register t trade stcks r a real estate license and sell prperties. But being registered desn t autmatically mean that persn is 13

16 knwledgeable enugh t give yu sund investment advice. What s cvered n the Series 7 and real estate exams is mainly prtcl hw t meet gverning bard standards. Many scalled financial prfessinals have nt been adequately trained t dispense advice yu can trust. Frtunately, mst have made a cmmitment t gain the knwledge n their wn and make recmmendatins with the best interest f their clients in mind. List any financial mistakes that yu have made in the past and what yu wuld d ver if yu knew the prper curse f actin t take then: Wrking with yuth Yung peple ften fail at their first cnsumer purchase, saving, banking, r credit experience, and may cntinue t make bad financial decisins int adulthd. Habits that begin at a yung age may carry n t adulthd and can cause financial prblems unless there is sme type f effective educatinal interventin; and this interventin needs t be in a frmat t which teens will pay attentin and frm which they will learn. ~Assciatin fr Financial Cunseling and Planning Educatin If yur gal is t wrk with yung peple, keep in mind that many yuth already lack cnfidence in their wn decisin-making ability. When they fail at their first big financial decisin, their cnfidence plummets. Mney becmes tied t negative emtins, and the dwnward spiral begins. But if we can intervene with yung peple befre they start tying mney t negativity, blster their cnfidence and back up that cnfidence with knwledge and skill, thse first few mney decisins may be successful and the spiral will trend upward. Yung peple have difficulty envisining their lives in ld age. Accrding t the American Institute f Public Accuntants, nly 11% f wrkers under age 35 currently participate in their cmpanies 401K prgrams. And yung adults lack financial knwledge: a survey cnducted by the Center fr Ecnmic and Entrepreneurial Literacy fund that 81% f yung adults grssly underestimated the length f time it wuld take t pay ff a credit card balance, and 79% fail t pay ff their credit card balances in full each mnth. High schl 14

17 students are unprepared fr the financial real wrld; a KeyBank study fund that less than 25% f students and nly 20% f parents said students are very well-prepared t meet the financial challenges that await them pst-graduatin. Lack f financial preparatin and knwledge has majr impact n ne s higher educatin experience. Here are sme statistics illustrating that impact: The tp reasn students give fr drpping ut f cllege is financial cnstraints (Public Agenda). Of thse cllege drputs, 71% f thse surveyed gave the reasn, I needed t g t wrk and make mney, while 52% stated, I just culdn t affrd the tuitin and fees (Public Agenda). 62% f cllege graduates will have a student lan debt averaging $27,236, ttaling $101 billin natinwide (Student Mnitr). Amng cllege graduate jb seekers in 2009, 80% mved back hme with their parents after graduatin (CllegeGrad.cm Survey). Mre than half f all cllege students have accumulated ver $5,000 in credit card debt while in schl, and ne-third have mre than $10,000 debt n credit cards (Sallie Mae). Part f the prblem is that ur sciety asks yung peple t make decisins abut higher educatin befre they understand the cncept f return n investment. Ask students: Why d yu want t attend cllege? Many will answer, T get X degree. But we need t dig deeper t uncver the real mtivatin again, ur gal is t discver the rt values driving decisins. Why d yu want that degree? The answer is likely t be, T make mre mney. Then we shuld ask, Why d yu want t earn mre? A student will prbably say, Oh, t travel and d the things I lve ding. S the cre value is being able t live ne s desired lifestyle. We need t ingrain the idea f return n investment int yung peple s heads, t help them make qualified decisins. Hw des the expense (and debt lad) f attending cllege balance against ne s ptential earnings upn graduatin? This cncept is extremely imprtant. Help kids d the math and make better decisins. This diagram shws hw yung peple mve away frm financial wellness. In a tugh ecnmy, many cllege grads have truble finding a jb. They lack educatin and have already frmed bad habits (like credit card and student lan debt). Bad decisins made early serve t undermine their cnfidence, and fear f failure makes them reluctant t address financial issues. Their mistakes cmpund and snwball ut f cntrl. 15

18 Practical financial educatin ffers the slutin t all these prblems. And althugh we ve been talking in terms f teens and yung adults, that slutin applies t adult prblems equally well. If yu re planning t instruct adults r senirs, just replace student lan debt with retirement; replace unable t get a jb after cllege with lst ne s jb unexpectedly. The educatinal tls t turn ne s financial situatin arund are the same fr all ages. Cncerns fr the future S far we ve been discussing the past we ve presented a hst f ways that past behavir can affect ne s financial health. Nw let s talk abut the future. T becme a great financial educatr, yu need t understand the future trends that will have an impact n ur lives. Cnsider the fllwing prjectins: The Scial Security Trust Fund is prjected t be exhausted by 2033 (when a 20-year-ld tday reaches age 41). After that, SSA taxes will be sufficient t cver nly abut threequarters f scheduled benefits thrugh 2086 (Scial Security Administratin, 2012). The Medicare Trust Fund faces depletin by 2024 (Scial Security Administratin, 2012). 16

19 Inflatin is prjected at an average rate f 3% per year, and taxes will cntinue t rise (InflatinData.cm). The rad t full emplyment will be substantially lnger. By the year 2050, ne-third f the wrkfrce will have n mney saved in a 401K plan (Gvernment Accuntability Office). Only 46% f wrkers were cvered by a defined benefit (pensin) plan in 2004, and that figure is steadily declining as emplyers replace pensins with cntributry retirement prgrams. Mst wrkers with access t these cntributry prgrams are nt participating sufficiently t allw them t retire in their sixties withut suffering a great decrease in their standard f living (Natinal Assciatin f the State Bard f Educatin). Peple f all ages shuld understand these trends and prepare fr the wrst. If yu have children, figure ut hw ld they ll be when the Scial Security reserves are exhausted. If yu re nearing retirement nw, dn t cunt n Scial Security payments as part f yur retirement incme. These issues are scary, but the upside is that we knw abut them nw which means we can deal with them befre we run int prblems. Write a stry abut the average client yu will be serving. Be sure t identify the areas that are mving the grup yu serve away frm financial wellness. Include the psitive r negative emtins they experience and ther items that help yu cnnect with yur participants. 17

20 Yu can make a difference We ve presented a lt f statistics. Nw lk beynd the numbers, because it s nt the numbers that matter. What really matters is the persnal stries. When yu teach financial educatin, yu will hear these stries yu ll hear abut the single mm with three kids wh s being freclsed and evicted. Yu ll hear hw the sheriff escrted the whle family ut the dr, slammed it shut, and installed a new lck. Yu ll hear stries that haunt yu fr a lifetime. It s never t late t live yur dreams. Stay fcused n that idea, because that s what financial literacy is fr: t help peple live their dreams. Our jb is t empwer peple t live their dreams, avid the stress and agny f financial prblems, and enjy the life experiences they crave. Psychlgist Abraham Maslw develped his Hierarchy f Needs thery in The higher peple climb up the Need Hierarchy, the better their lives will be. But where des a persn fall n the pyramid when he r she is suffering frm heavy financial stress? If yu re abut t lse yur hme, yu re prbably nt thinking abut self-actualizatin. Financial issues place yu in the lwer levels f need, and yu must address them befre yu can make a 18

21 psitive difference in the wrld. Spreading financial literacy is a vital step tward making the wrld a better place. Research has prven that financial literacy des make an impact n peple s behavir. The greater a persn s expsure t financial literacy materials, the mre psitive financial and lifestyle chices he r she is able t make. A recent study by the US Department f Treasury indicated that individuals wh have taken a financial educatin curse have a higher savings rate, larger net wrth, and make greater cntributins t their 401K prgrams. Hw d yu think helping peple get t the pint where their fcus is n self-actualizing needs will benefit the wrld? What yu re ding is much bigger than mney. Think f it this way: if yu save ne single persn frm making a credit mistake, yu ll be saving that persn $10,000 ff their next car purchase. And gd decisins have a snwball effect. As a financial literacy instructr, yu wn t just change peple s financial skills; yu ll imprve their health, their relatinships, and their lives. Yu re ging t make a true difference in the wrld, and that s a reality in which yu can take pride. 19

22 Chapter Questins 1. What are sme ways in which mney affects peple s lives? 2. What are sme f the cmmn financial pitfalls int which peple fall? 3. Name five benefits assciated with pssessing practical financial knwledge. 4. D yu want t help peple avid mney prblems and live rewarding, fulfilling lives? Yes N 20

23 Chapter II: The Hlistic Apprach t Teaching Financial Literacy Yu ve taken a big step frward: yu ve learned the benefits f pssessing financial skills, the cmmn mney pitfalls peple face, and sme future trends fr which everyne shuld be planning. Next we will present the NFEC s hlistic apprach t delivering financial literacy educatin. Hlistic (hh-lis-tik): based n the thery that a whle system has prperties greater than the sum f its parts. Our teaching apprach is hlistic because the different pieces f the prgram, when jined tgether, create a campaign that has mre impact as a whle than wuld the sum f its individual sectins. The NFEC strngly believes in creating sustainable prgrams with maximum utreach. We dn t want t present just ne curse r a single event; ur gal is t cntinue reaching mre and mre peple. We seek t empwer participants with financial literacy, while building cmmunity supprt t sustain the campaign and increase the reach and frequency f its message. Reach, because we want t get the wrd ut t the largest number f peple; and frequency, because peple need t hear smething repeated an average f five times befre it sinks in. The bttm line utcme is t imprve results, raise test scres, and ensure the effectiveness f financial literacy training. Where did yu learn abut mney? Very few peple receive financial educatin in schl. Mst yung peple rely n their parents t teach them mney skills, but unfrtunately nt many parents actually discuss mney with their children. Parents lack the cnfidence in their wn knwledge t pass it alng. Kids learn by watching, s they pick up their parents bad habits. T many f us learned financial lessns at the schl f hard kncks. At the NFEC we ften hear, I wish I had learned abut mney when I was grwing up. When mistakes lead t a credit card being canceled r yur interest rate ges up, yu re frced t learn the hard way. Others seek financial educatin frm the wrng advisrs salespeple r friends. That salesman s cmmissin is based n getting yu t chse his prduct. D yu really trust his mtives? And the guy in the next cubicle at wrk prbably is nt a financial prfessinal. Why wuld yu ask him fr investment advice? 21

24 Primary respnsibility fr receiving a financial educatin rests with the individual. N matter whether a persn is a teenager, adult, r senir, that individual is respnsible fr learning t manage his r her wn mney. But as parents, cmmunity members, and educatrs, we d share that burden f respnsibility. Once individuals knw hw imprtant it is t becme financially literate, we can pint them in the right directin. While we dn t have t shulder their respnsibility, we must take the initiative t shw them hw mney affects their lives. Addressing emtins Mst peple d want t learn abut mney. A 2006 survey cnducted by StrategyOne n behalf f Charles Schwab and Bys & Girls Club f America came up with these findings: 92% f respndents agreed that it is imprtant t have gd mney habits t be successful in life. 93% said it is imprtant t knw hw t manage mney t live within ne s means. 89% agreed that saving and investing can help ne achieve freedm in life. 22

25 In the 2008 Back-t-Schl Survey by Capital One, half f the teens surveyed expressed interest in learning mre abut managing mney; 76% said they want t learn the basics f finance nw t help them make better financial decisins dwn the rad. But as peple grw lder, they becme less interested in learning financial skills. Why? Their egs and emtins becme invlved; they ve made mistakes, they have scars, and they want t avid the stress they ve lived thrugh in the past. When we teach mney, we re nt just teaching practical math. We becme cunselrs wh must vercme the psychlgical barriers peple have built up ver a lifetime. When yu run a class r event, yu need t read peple s bdy language t discver where their barriers lie. While yu teach, yu must als learn dredge up the emtins peple have attached t their past mney experiences. Invlving parents Parents shuld have a strng supprtive rle in their children s financial educatin. As instructrs, hw can we encurage parents t becme invlved? Staging live events that bring parents and students tgether is a pwerful methd with ften amazing results. Assigning hmewrk that requires parental input is anther gd tl: yu might have parents shw kids the phne r electric bill fr three mnths. If they can think f a way t reduce expenses, the whle family will g bwling. Make it fun and rewarding. One way t mtivate parents is t gently remind them that 80% f cllege graduates nw mve back hme. Des that parent really want a sn r daughter living there at age 35? Encurage parents by letting them knw any financial cnversatin is better than aviding the issue. They ve had experiences, and even sharing mistakes has value. Many parents are excited t becme invlved but lack the resurces t d s. Give them educatinal materials and tips fr starting mney cnversatins with their kids. The NFEC makes such resurces available cmplimentary fr educatrs t pass alng. One cl, effective tl is ur guide t team cnversatins ver dinner. It may nt be a cmplete financial educatin, but it helps get families talking and increases message frequency. Invlving the cmmunity The hlistic apprach encurages maximum invlvement frm influential cmmunity members. The mre alliances we frm, the mre peple we have wrking tgether, the greater ur results. We suggest frming partnerships with a crss-sectin f cmmunity leaders and rganizatins. Cmmunity centers, clleges, financial prfessinals, and pliticians all are gd 23

26 partners fr a financial literacy event. Nnprfit rganizatins can help yu build a vlunteer frce, and Chambers f Cmmerce may yield spnsrs r prfessinals willing t dnate time t speak at yur event. We als want t invlve the media. The prblems f financial illiteracy bankruptcy, freclsures, business failures thse tpics make headlines. Yet we have the slutin t thse prblems and n ne hears abut it. It s time t get the wrd ut that financial educatin can make psitive change in peple s lives. Media expsure fr yur initiative nt nly spreads awareness; psitive press cverage als helps yu raise funds and attract partners. Invlving the schls If yu dn t already wrk fr a schl district, bringing lcal schls n bard will be critical t yur initiative. Schls have very tight time cnstraints, s ffer lts f flexibility. Fr example, yu might ffer a menu that includes after-schl prgrams, weekend camps, and/r classrm presentatins. Mst schl districts are struggling financially; find spnsrs willing t supprt yur prgram fr lcal students. The NFEC ideal is that its curriculum is presented by trained instructrs like yu. If the schls decide their wn teachers will deliver the materials, thse teachers may nt feel cnfident with the subject. In that case, set up training prgrams t present what yu ve learned. Share yur passin, belief, and enthusiasm fr the initiative. Just as yu ve gained cnfidence here, thse teachers will build the cnfidence they need t deliver financial educatin effectively. The NFEC s curriculum is designed t meet natinal financial educatin standards as well as cre curriculum requirements. These features, alng with yur passin and cnfidence t teach the material, shuld appeal t yur lcal schl districts and encurage their supprt. With the target market yu are serving, wh will yu enlist in yur financial literacy initiative? 24

27 Hlistic financial literacy prgram verview The hlistic apprach t financial educatin packages refers nt nly t supprt fr the initiative, but als t the cmprehensive nature f the prcess. The chart belw illustrates the NFEC s cmprehensive apprach. This sectin prvides an verview f the steps invlved in planning a financial literacy event and tailring prgrams t yur specific target audience. T start, yu need t set bjectives fr yur financial literacy prgram. Yur wn bjectives persnal, business, and philanthrpic shuld be ne cnsideratin. Then decide what yu hpe t accmplish by sharing the financial educatin materials. Persnal, business, and philanthrpic bjectives. T ensure sustainability fr yur prgram, aligning with yur larger persnal, business and philanthrpic bjectives is critical. Financial literacy prvides an excellent vehicle t generate incme, intrduce new services, build cmmunity gdwill, btain media attentin, build relatinships with ther rganizatins, and enhance the custmer experience. And all these benefits ccur within the cntext f educating yur audience in key skills that will enhance their lives. Actively supprting yur larger bjectives benefits yu as well as the financial literacy prgram. Financial literacy prgram bjectives. What end gals d yu envisin? Financial literacy campaigns prvide an avenue tward accmplishing a variety f gals, and yur bjectives shuld be well-defined during the planning phase t ensure their achievement. 25

28 Essential questins t cnsider early in the prcess include: 1) What specific persnal finance tpics d yu wish t share? 2) What results r utcmes d yu seek, and hw will yu measure success? Setting realistic, measurable gals is imprtant. Fr instance, say yu hst a 60-minute budgeting class. Setting a gal that this class will change lng-term participant behavir is nt reasnable. Examples f achievable bjectives might be: a) mtivate participants t attend anther class; r b) encurage attendees t write dwn their annual budgets. 3) What is yur target demgraphic? Develp a clear demgraphic prfile describing yur desired attendees, with special attentin t sciecnmic and psychgraphic factrs. 4) What are the learning preferences f yur target demgraphic? We have bserved lw attendance at an rganizatin-spnsred live prgram fr middle incme earners n the tpic f financial recvery ; but webinars n the same tpic and serving the same target grup attracted much higher attendance. In respnse t surveys and interviews, participants indicated they were embarrassed t attend live events, yet felt cmfrtable attending a webinar. List yur initial thughts n gals and bjectives yu are lking t acheive: Test the cncept. Be sure t test yur prgram cncept befre spending time and energy in its planning. We recmmend cnducting slid research as a starting pint. While much nline infrmatin is available, ften yur best resurces may be fund in yur persnal r prfessinal netwrk. Talk with friends, c-wrkers, r thers wh interact with the target audience; btain their ideas abut participants and hw best t reach them. Once yur baseline research is cmplete, reach ut t ptential participants via surveys and/r infrmal interviews. Outreach t gather audience input nt nly allws yu t custmize the prgram t best meet the needs f the attendees, but als serves as an early prmtin tl t raise awareness abut yur initiative. When yu design an initiative arund suggestins frm ptential participants, yu imprve the prgram s chances t exceed attendee expectatins and meet their learning 26

29 capabilities. When participants feel a part f the creatin prcess, they supprt the prgram. Cnducting a simple pre-event survey can guide nt nly the infrmatin presented and the delivery methds, but indicates where participants fall in terms f willingness t make psitive financial change. Using the Transtheretical Mdel f Behavir Change (aka Stages f Change Mdel) allws yu t assess participants readiness t apply persnal financial behavirs learned during yur event t making psitive life change. (See Chapter III fr a mre cmplete discussin f the Stages f Change.) If yu develp materials and utreach methds accrding t survey findings, yu will maximize participant learning and mtivatin. Develpment. Once planning and initial market testing are cmplete, the prgram develpment stage may begin. Yu and yur strategic develpment team shuld wrk t build a prgram that reflects the infrmatin cllected during the planning phase, applying creative resurces t develp a unique prgram designed fr lasting, psitive impact. Measurement. All financial literacy initiatives shuld set clear, achievable gals and include a measurement cmpnent t quantify prgram success fr bth participants and the rganizatin. Identifying key utcmes early in the develpment prcess helps ensure that prgram design meets educatinal bjectives. Participants. Using Blm s Taxnmy f Higher-rder Thinking Skills (described in Chapter IV) as an indicatr, yu can mve participants beynd cursry knwledge t framing their wn ideas arund persnal finance tpics. Measure participant impact in three key ways: 1) Pre- and Pst-testing. Testing is critical t measure prgram impact. At minimum, testing shuld measure three areas assciated with financial capability: mtivatin, tpic knwledge, and ability t identify initial actin steps. 2) Surveys. Cnducting participant surveys at the cnclusin f a financial literacy prmtin will teach yu mre abut the participants and guide future prgram imprvements. 3) Behavir Change. A key bjective f an effective financial literacy prgram is t facilitate lng-term behavir change. Behaviral measures shuld be reserved fr cmprehensive financial literacy prgrams that prvide prfessinal-level persnal finance training. Fr example, a prgram that teaches peple t save mney might develp a system t track the amunt f savings participants depsit each mnth upn prgram cnclusin. 27

30 Hw will yu measure the success f yur financial literacy prgram: Organizatin. If yu represent an rganizatin, clear and quantifiable rganizatinal bjectives shuld be established prir t the financial literacy prmtin. Hw many clients des yur rganizatin seek t acquire? What actins wuld yu like current clients t take? Many questins are pssible, but ne remains fundamental: Hw des yur rganizatin measure success? Client experience. Mst financial educatin initiatives are bring. Successful initiatives are thse that maximize the experiences f end-users, spnsrs, and hsts alike. Prgrams designed t be entertaining, engaging, and educatinal help ensure ptimal enjyment and significantly imprve retentin rates. Fllwing are sme qualities t cnsider as yu develp a prgram fr maximum client experience: 1) Lk and Feel. Even the highest-quality educatinal material will fall shrt if it lacks experiential and visual appeal. Strive t cnnect with the end-users. Leverage all five senses when yu hst an event. Create a prgram yur cnstituents will talk abut lng after the prmtin ends. 2) Teaching/Outreach Style. Mtivatin, engagement, and educatin are all imprtant elements f a financial literacy campaign. Each persn learns differently. Use Gardner s Multiple Intelligences Thery (discussed in Chapter IV) t design yur campaign s educatinal prtin. This thery suggests nine learning intelligences tward which students gravitate; wrk t ensure that yur campaign addresses the mst cmmn. 3) Material. Balancing practical and educatinal standards, deliver material best-suited t yur target audience. The mst effective financial educatin material is practical in nature and prvides real-wrld examples t which the audience can relate. Cmbining thery-based educatin with practical infrmatin ensures verall prgram effectiveness. 4) Multiple Tuchpints. Each persn learns differently. Instructinal diversity helps an initiative cnnect with participants wh have varius learning styles, while increasing 28

31 the initiative s reach. An ideal prgram mix might include live events, guidebks, virtual learning centers, sftware prgrams, phne applicatins, games, webinars, and mre. 5) Supprt Grup Training. T expand initiative reach, design additinal material fr prfessinals wh supprt target client develpment. This step is especially imprtant t serve yuth and senirs. Training supprt teams t reach target participants nt nly imprves bth near- and lng-term utcmes, but als helps rganizatins increase prgram reach. Describe the client experience yu envisin fr yur participants: Creating an engaging financial literacy campaign with multiple tuchpints that als invlves thse wh supprt the targeted client helps mtivate and educate yur participants, mving them tward psitive actin. This chapter gave yu an verview f the NFEC s hlistic apprach t presenting financial literacy cursewrk and events. Next we will discuss in mre detail hw t measure prgram impact. 29

32 Chapter Questins 1. What des hlistic mean? 2. Wh is primarily respnsible fr giving an individual a financial educatin? a. The individual b. The parents c. The schls d. The cmmunity 3. Name fur pssible partners with which yu might frm imprtant strategic alliances when yu plan a financial literacy event. 4. What are three ways t measure yur prgram s impact n participants? 5. Are yu ready t learn hw t measure the impact f yur financial literacy initiatives? Yes N 30

33 Chapter III: Quantifying Results Befre yu ever get started presenting financial literacy educatin materials, yu must truly understand the clients yu hpe t serve. The NFEC structures its prgrams arund the actual knwledge needs and demgraphics f the cnsumers. Learning abut the participants befre beginning the instructin gives yu a deeper understanding f: Participant needs Mtivatrs Current knwledge level Challenges they face Willingness t change In this chapter we ll present the Stages f Change Mdel fr determining where participants fall n the willingness t change cntinuum, and describe the measurement tls we recmmend using t quantify and maximize prgram results. Stages f Change Mdel The stages f change prviding the underlying framewrk fr the NFEC s measurement strategies are derived frm the Transtheretical Mdel f Behavir Change develped by James Prchaska and his clleagues in the late 1970s. 1,2 Accrding t this thery peple mve thrugh the fllwing stages in the prcess f making behaviral change: Precntemplatin Cntemplatin Preparatin Actin Maintenance Terminatin Here we will describe the Stages f Change and the strategies the NFEC has identified fr presenting materials at each stage. Precntemplatin. Peple at this stage have n intent t take actin in the near future. Many are unaware even that their behavir is prblematic. Fr adults, the NFEC uses lng-term awareness strategies t help mve them t the next stage. Fr kids, being in this stage is less f 1 Prchaska JO & DiClemente CC (1984). The Transtheretical Apprach: Twards a systematic eclectic framewrk. Hmewd, IL: Dw Jnes Irwin. 2 Prchaska J & Velicer W (1997). The Transtheretical mdel f health behavir change. Am J Health Prmtin, 12:1,

34 a detriment. The NFEC has fund a gd intrductin can be enugh t excite their natural curisity t the next stage. Cntemplatin. Thse in the cntemplatin stage are beginning t recgnize that their behavir may be causing prblems. They ve begun lking at the benefits and drawbacks f their cntinued actins, and are cnsidering the pssibility f change. At this pint the right educatr can influence peple int the next level tward change. The NFEC educatr training leverages Neur-linguistic Prgramming (NLP; described in Chapter IV) and curriculum driven strngly by benefits/cnsequences t influence participants tward taking actin. Preparatin. Peple wh have reached the preparatin stage have develped intentins t act. At this stage, guidance and knwledge prvide the impetus t mve participants frward. Since many peple simply lack directin, the NFEC materials ffer stepby-step instructin aimed at instilling cnfidence in their skills as they wrk tward persnal financial gals. Actin. By the actin stage peple have made sme mdificatins t their behavirs and lifestyles. Once participants reach this stage, cntinued reinfrcement fr their effrts thrugh nging training and supprt is critical. Fllw-up training can be helpful t keep mmentum. Maintenance. Thse wh reach the maintenance stage have changed their behavirs and have a plan t maintain them. Getting peple t this stage is the primary gal f the NFEC materials. Here the main fcus f the educatr is t help participants stay n curse and avid becming vercnfident. Preventing relapse int past negative financial behavir is essential. Terminatin. When peple reach the terminatin stage, psitive behavir change is in place and they ve mved beynd any temptatin t relapse int the negative chices f the past. At this stage the instructin may be cnsidered a success. At what stage d yu think the participants yu will be serving are in? Hw will yu elevate the participants t higher stages? 32

35 Pre-event measures Befre yu ever deliver an instructin prgram r event, the NFEC suggests that yu perfrm three measures: 1) survey abut participant needs and interests; 2) pre-test t measure current knwledge level; and 3) cnsultatin with attendees, either individually r in small grup segments. Survey. When planning a financial literacy initiative, btaining infrmatin abut participant interests directly frm the surce can be invaluable. The survey is aimed at learning what participants are lking fr and the challenges they re currently experiencing. Here are sme sample questins that can frm the basis f a participant survey: What financial tpics wuld yu be mst interested t learn? Hw wuld yu like the infrmatin t be delivered? What days f the week and times f day d yu prefer? Hw far wuld yu be willing t travel t attend a live event? In yur pinin, what wuld be the ideal length f the event, curse, r prgram? With what knwledge r skills wuld yu like t leave the training? Why d yu want t learn this infrmatin? Hw will the prgram specifically benefit yu? Pre-test. The NFEC prvides a detailed pre-test which gives yu a slid measurement tl t demnstrate the results f yur event. Pre-testing is essential t gauge the effectiveness f the cursewrk. The pre-test serves as yur baseline measure acrss three areas: 1) participant mtivatin t learn, 2) knwledge f persnal finance subject matter, and 3) ability t identify the first steps tward imprving ne s financial situatin. The same test is administered after yur financial literacy event t tell yu hw well the prgram wrked. Cmparing pre-test t pst-test results als helps the prgram btain future funding frm fundatin spnsrs. Cnsultatin. The cnsultatin piece can be extremely valuable t infrm and design an effective prgram fr ptimal results. Invlving the actual participants in the planning prcess ensures maximum buy-in and gives them a sense f wnership. Taking this pprtunity t let peple knw they re helping create classes fr themselves and fr future audiences will increase the prgram s value and build their self-esteem. 33

36 Cnsulting with the audience nt nly guides prgram design, but als gives yu persnal infrmatin abut the participants. The mre yu knw in advance abut yur audience demgraphics and mtivatins, the better yu can prepare and tailr the materials t meet their specific needs. Yu can adjust the curriculum and yur delivery methds t gain the best bttm-line results. During the cnsultatin, write dwn a few qutes frm participants abut their current financial dilemmas r cncerns. Each time yu write dwn a qute, ask the participant fr permissin t use it in the NFEC materials. These qutes will cme in handy as a further cmparisn measure t shw ptential spnsrs. Pst-event measurement Immediately after cnducting a financial literacy event, ask participants t cmplete the same test yu administered at pre-test. Cmparing pst-test t pre-test results prvides a quantitative analysis f hw well yur prgram wrked t raise knwledge abut financial tpics, increase mtivatin t change, and encurage participant actin tward imprving their financial situatins. In additin t the written test, take time t ask participants t share their pinins f the presentatin and curriculum. Again, write dwn a few qutes (with permissin) t illustrate the difference this prgram makes in peple s lives. Cmparing the qutes after the prgram with what peple said prir t the prgram may ffer emtinal supprt that ptential funders will find very cmpelling. Quantifying yur results will yield valuable infrmatin t guide the imprvement f future events and presentatins. The NFEC measures are already in place; they are carefully designed t align with the cursewrk, and have been prven accurate and reliable. Be sure t include this very imprtant measurement cmpnent when planning yur event. T this pint in yur training, yu ve been given a lt f infrmatin t digest. Yu ve learned what financial literacy is and why it s imprtant t teach; we ve discussed wh t invlve in the planning prcess and when t measure fr maximum results. Nw it s time t talk abut hw t teach financial literacy. The next sectin will dive int thse tls and strategies that will help yu teach these prgrams fr maximum effect. 34

37 Chapter Questins 1. Name the six stages f change identified by the Transtheretical Mdel f Behavir Change. 2. Getting peple t which stage f change is the NFEC s primary gal? a. Cntemplatin b. Actin c. Maintenance d. Terminatin 3. What are tw questins yu might ask in a pre-event participant survey? 4. What are the three areas measured by the NFEC s pre- and pst-test instrument? 5. Are yu ready t learn hw t teach financial literacy effectively? Yes N 35

38 Chapter IV: Teaching Financial Literacy This sectin builds n what yu ve learned s far, s let s take a mment t review. Yu knw the benefits assciated with financial literacy, and these benefits apply t everything yu ll teach in the prgram. Yu ve develped a belief in the value f financial educatin, and that belief frms the key t helping thers understand the imprtance f acquiring financial skills. And yu knw the mney prblems peple are facing. If yu re educating yung peple, yu can help them practively avid cmmn pitfalls. If yu re wrking with adults, this prgram can prvide the fix they need t get ut f the financial difficulties they face nw. Educatinal philsphy The NFEC s educatinal philsphy is based n fur principles: Mtivate Engage Educate Mve t actin Mtivatin takes tw frms. First we want t mtivate participants t listen; secnd, we want t mtivate them t take actin. After the event is ver, we want them t cntinue t learn, and we want them t take psitive actin steps tward their financial futures. Engagement arund financial educatin is easy that s what makes this tpic s cl. The NFEC cursewrk has built engagement tls right int the curriculum, s if yu fllw the lessn plans yu ll already be n the right track tward engaging yur audience. Educatin is critical t make sure participants can apply the skills they learn t realwrld life situatins. That s why the NFEC has wrked s hard t develp basic cre lessns designed t meet the practical financial demands placed n real peple. Mvement t actin is really the key t teaching financial literacy effectively. What gd are a bunch f lessns unless peple change their behavir? This shuld be yur verarching gal t mtivate participants t take initial steps tward financial wellness. Financial literacy is unique Financial literacy is a unique subject. Each f yur participants has had a different backgrund; every persn sitting in the class has frmed a unique relatinship with mney. Each unique relatinship equates t a specific emtinal cnnectin, and determines the impact f mney n that persn s life. 36

39 Once yu start ut n yur wn, every secnd f every day, either yu are making mney r yu re lsing mney. Fr example, yu might be accruing rent that yu must pay; r yu might be incurring interest n an investment. Yur finances are always either up r dwn they re never stable. S financial literacy has an impact n every day f yur participants lives. Bring this hme t participants by describing the benefits f financial educatin. Health, relatinships, security, independence explain all thse benefits we discussed in the previus sectins. Mney has an impact bth n their current situatins and n their futures. Demnstrate hw financial literacy can imprve every aspect f their lives. Curriculum develpment and results The NFEC lessn plans were created in partnership with educatrs, financial experts, and cmmunity leaders. Over 50,000 peple were interviewed by ur Bard thrugh ne-nne discussins abut their current financial situatins. They ve als reviewed mre than 25,000 persnal financial statements thrugh the curse f their daily business lan brkers, financial advisrs, etc. Our advisry bard cmbines expertise frm the entire scpe f financial tpics including debt cnslidatin, bankruptcy, mrtgages, investment advice, realty, banking, and credit cnsultatin. We cnsulted with educatrs knwledgeable in advanced learning and influence techniques. The resulting prgrams cntain practical, real-wrld financial lessns. While we were cncerned t ensure that curricula met cre educatinal standards, ur key fcus was n relating t the audience. We strve t build lessns peple really can use fr maximum benefit in the real wrld. These prgrams are meant t be fun and engaging nt nly fr the students, but fr instructrs as well. Yu will enjy teaching these materials, and keeping it fun fr yur participants shuld be ne f yur gals. Why are financial educatin prgrams ineffective? Fr yur initiative t succeed, it s helpful t understand where ther prgrams fail. Mst financial educatin is dry and bring. Prgrams get bring when they fcus n therybased teaching that lacks practical applicatin. If peple can t see a direct benefit t them, they ll quickly lse interest. Pr-quality curriculum als becmes bring fast. If the materials are utdated and incrrect, r are nt written by expert prfessinals, the quality suffers and participant interest 37

40 will wane. T little time spent teaching the lessns is anther cmmn mistake; yu wn t learn skills t imprve yur life frm a single-hur presentatin. Sme prgrams fail because the presenter frms n cnnectin with the audience. The NFEC can recmmend ways fr instructrs t build such cnnectins, and the materials are designed t cnnect with peple t. Many prgrams fail t measure their effectiveness. If yu dn t knw whether yur prgram wrks, hw can yu cnvince thers t adpt it? The bttm line is mving peple t take actin, and that s the biggest difference between the NFEC prgram and ther available cursewrk. Teaching techniques The NFEC bases its apprach t teaching financial literacy n fur theries: Persuasin (sales) technique Neur-linguistic Prgramming (NLP) Gardner s Thery f Multiple Intelligences Blm s Taxnmy f Higher-rder Thinking Skills Persuasin (sales) technique. Methds prven effective t sell prducts wrk very effectively t teach financial literacy as well. Often we have limited time with ur participants, s we must fcus what little time we have fr maximum impact. Think abut it: salespeple are the backbne f a capitalist sciety. Gd sales require uncvering a persn s needs and gals, building relatinships, prpsing slutins, and mtivating the persn t take actin. Educatrs make very gd salespeple. They re already experts in their fields. They already understand the needs and desires f their clients (students); learning t be an educatr requires fcus n hw t build audience rapprt. Gd educatrs align presentatins with benefits that mtivate the class. They share stries t make tpics real and relate cntent t the audience. They mtivate students t take specific actin steps, and gather cnstructive feedback t imprve future lessns. The persuasin r sales apprach t teaching financial literacy includes five phases: preparatin, listening and rapprt, ffering slutins, taking actin, and feedback and resurces. Phase I: Preparatin. The first key t being prepared is belief. Yu must believe in what yu re teaching, just as the best salesmen believe in the value f their prducts. We hpe 38

41 the benefits cvered in the first sectin cnvinced yu hw valuable financial educatin can be. Financial literacy can really help everyne in yur class. Knwing yur material is the secnd part f preparatin. If yu re unsure abut the presentatin, the audience will read lack f cnfidence and wn t trust the material. Take the time yu need t cmprehend what yu re teaching and anticipate questins yur audience may ask. Yu dn t have t knw everything; if yu dn t knw an answer, say, Hey, I dn t knw, but I ll find ut and get back t yu! Yur audience will appreciate yur hnesty and sincere desire t help. Knw yur audience: get as much infrmatin as pssible abut each grup t which yu present. Nt nly will it help yu prepare apprpriate material and stries, but yu can mentally prepare fr the tugh questins and attitudes an audience may thrw yur way. Set clear gals fr yur presentatin. Make them specific, achievable, and realistic. Fr example, yu might say, My participants will imprve their test scres by 25% and graduate the curse wanting t learn mre abut persnal finance. Phase II: Listening and Rapprt. The secnd phase f the sales apprach invlves listening. Listening is critical t making a sale and we re talking abut active listening, where yu keep prbing t get the whle picture f yur audience s mtivatin. Yur gal is t learn the audience psychgraphics. Psychgraphics give us an understanding f attitudes, values, lifestyles, and pinins. The marketing wrld uses the term IAO (Interests, Activities, and Opinins). This audience understanding prvides directin n hw t shape yur presentatin. Obviusly this phase requires sme give-and-take with the audience. Ask students why they re there. What d they want t get ut f the presentatin? Listen t what they tell yu and fllw up with prbing questins why, when, where, hw? Each persn is different, but the mre yu knw abut yur participants the better. Build rapprt with the audience. Rapprt can be defined as building trust and getting in sync with thers. Engage in small talk abut tpics and invite the audience t give pinins. Share persnal stries, be real; engage the grup by letting a spirit f fun shine thrugh yur presentatin. Shw participants that yu really care abut their wellbeing. Hw will yu build a rapprt with yur audience? 39

42 Phase III: Offering Slutins. This phase builds n earlier phases. Yu can t ffer slutins until yu truly understand where yur participants are nw, and their future gals. Educate with benefits, nt features. Fr example, say yu re selling a health drink. A feature f the drink might be, Prvides 100% RDA f Vitamin D. That wn t sell smene the drink. Instead, fcus n its benefits: Makes yu feel energetic and healthy. Translate that example t financial educatin. Learn abut credit, is a feature f the prgram. That wn t appeal t anyne. Fcus n the benefits: Save $10,000 ff yur next car purchase. Benefits are what mtivate peple t take actin. Subject differentiatin wrks t. Shw students hw financial literacy is different frm ther subjects. Fr example, this tpic will affect every aspect f their lives. The subject relates directly t their ability t live desired lifestyles. Phase IV: Taking Actin. If yu ve dne the first three phases right, mving them t take actin will fllw naturally. Watch yur audience s reactins, ndding heads and facial expressins. Time the presentatin f actin steps t ccur when emtins are high. Assume that yu ve clsed the sale yu ve mtivated them t take psitive actin tward financial health. Ask, Nw that yu knw saving and investing $100 a mnth can grw int a millin dllars, what first step will yu take? Strive t get a cmmitment. Yu knw I want what s best fr yu. I am 100% sure this infrmatin will make yur lives easier and mre fun. Raise yur hand t prmise me that yu ll cntinue t learn abut mney. Here s anther apprach: ffer them alternatives. Either yu can have bad credit and g thrugh the embarrassment f being denied a lan, r yu can have gd credit, n wrries, and an extra ten thusand in yur pcket. S hw will yu start building yur credit? Ask hw their visin f the future has changed. Nw that yu ve learned this infrmatin and plan t learn mre, hw d yu think yur life will be different in five years? What will yu d this week t make sure yu succeed? What actin d yu want yur participants t take? What techniques will yu emply t get them t take actin? 40

43 Phase V: Feedback and Resurces. After yu re dne presenting, slicit audience feedback. What did they like? Which pieces didn t resnate with them? Ask hw yu culd imprve yur presentatin. Try t uncver their bjectins t the material. Answer bjectins using the feel, felt, fund methd. Maybe a participant says, But I need my Starbucks cffee every mrning. Yu might respnd, I understand hw yu feel. A lt f my friends felt the same way abut their mrning cffee. But ne f my friends fund that, by cutting expensive cffee ut f his rutine, he was able t save enugh mney fr a dwn payment n a car. Then fllw up with a clse: S will yu start buying cffee at a less expensive shp, r make it at hme? Using the feel, felt fund methd t describe hw yu can smene that represents yur target audience t vercme their statement f I ll never have enugh mney. Nearly everything we d can be viewed as selling, educating, and sharing with peple. Brushing up n yur sales skills nt nly will help yu becme an excellent instructr, but will imprve yur everyday lives as well. We recmmend the fllwing resurces: Tm Hpkins (2011). Hw t Master the Art f Selling. Mundelein, IL: Writers f the Rund Table Press. Brian Tracy (2006). The Psychlgy f Selling: Increase yur sales faster and easier than yu ever thught pssible. Nashville, TN: Thmas Nelsn Publishing. Neur-linguistic Prgramming (NLP). Neur-linguistic Prgramming, r NLP, may sund like a cmplicated cncept, but in fact it s quite simple. NLP creates change by manipulating the main influencers in ur lives: neurlgy, language, and prgramming. This thery describes the dynamics between ur brains and language, and hw ur minds influence (prgram) ur behavir. The bttm line is that human beings tend t mve away frm pain and tward pleasure. In earlier chapters we ve illustrated hw peple may cnnect with pain arund mney issues either current pain r pain they anticipate experiencing in the future. But if we 41

44 present them with a pleasurable alternative, they ll gravitate in that directin. Fr example, imagine that yu walked int a rm with a bed f nails n ne side and a massage chair n the ther. If we asked yu t chse ne t lie in fr an hur, which wuld it be? Chances are yu d chse the massage chair. S in any situatin we present t the audience, if we can shw them thse extremes f pleasure and pain they ll mve tward the pleasurable ptin. The mre pprtunities we have t teach peple, the mre ften, and the mre resurces we can prvide them, the mre likely they ll be t view financial literacy as the massage chair. NLP is successfully emplyed by salespeple, presenters, and educatrs t mve peple t take psitive actin. It s als a great persnal develpment tl. As yu teach, emphasize the pain and pleasure pints thrughut yur presentatin. Shw the benefits f learning financial skills and the cnsequences f ignrance. 42

45 Nw write dwn the identity yu seek and fill in the ther steps dwn the pyramid: Examples: Identity. I live in the places arund the wrld where I am needed mst and am dedicated t significantly reducing pverty. Values and Beliefs. My belief in helping the less frtunate mves me t actin. Capabilities. I am a passinate expert in micr-lending but need t imprve my knwledge f ther alternatives. Behavir. I fcus n my daily interactins n helping the pr and ding advcacy wrk fr numerus rganizatins. Envirnment. I grew up pr and that gives me daily mtivatin. Identity. Values and Beliefs. Capabilities Behavir. Envirnment. Yu can apply the NLP Pyramid prcess t any aspect f yur life. Knwing wh yu are and what mtivates yur skills and behavir is a valuable lessn. Think f ways t incrprate this activity int yur financial literacy presentatins. NLP advcates questining techniques t get peple thinking abut the values and beliefs that drive their actins. Gardner s Thery f Multiple Intelligences. In 1999 psychlgist Hward Earl Gardner published his bk Frames f Mind laying ut a thery f multiple intelligences that has been embraced by a range f educatrs and educatinal therists. Gardner s Thery challenged classical theries f learning and develpment, and identified nine types f intelligence that students use t learn: spatial, naturalistic, linguistic, lgical, musical, bdily, interpersnal, intrapersnal, and existential. Gardner claimed that these multiple intelligences rarely wrk independently, but are used at the same time and cmplement each ther as peple develp skills r slve prblems. Linguistic intelligence these students learn well thrugh the spken and written wrd and have ability t use language t express themselves. Lgical-mathematical intelligence these peple have ability t analyze prblems lgically, are gd with math, and can deductively slve prblems. Musical intelligence these students are skilled at recgnizing musical pitches, rhythms, and tnes. 43

46 Bdily-kinesthetic intelligence these peple actively use their bdies t slve prblems. Spatial intelligence these students can recgnize and use the patterns f space. They are skilled at transfrming mental images int reality. Interpersnal intelligence these students have the capacity t understand the intentins, mtivatins, and gals f thers. Intrapersnal intelligence these peple pssess capacity t understand themselves and their feelings, and can regulate their wn lives. Naturalistic intelligence this type f intelligence has t d with nurturing and relating t ne s natural envirnment. Existential intelligence existential intelligence describes the ability t cntemplate phenmena beynd thse gathered by the senses, such as infinity r philsphical questins. Gardner s Thery helped guide the NFEC t develp its financial literacy curriculum. Specifically, Gardner s wrk suggests a brad apprach t educatin, as peple need all nine intelligences t live life well. His thery als influenced ur use f practical perfrmance, explratin, and creativity t develp flexible prgrams tailred t the lcal audience. The NFEC s curriculum helps students use their wn intelligences t assciate learning with persnal financial gals r situatins. Students learn accrding t their wn preferred learning style. What type f learner are yu? Describe hw yu will teach yur target audience t save mney using the multiple intelligences described abve: 44

47 Peple learn in many different ways, and it s ur jb as instructrs t incrprate as many learning styles int ur presentatins t frm real cnnectins with the majrity f the participants. Blm s Taxnmy f Higher-rder Thinking Skills. Benjamin Blm ( ) was an educatinal psychlgist whse wrk made imprtant cntributins t hw we set educatinal bjectives. Blm s Taxnmy f Higher-rder Thinking Skills, first published in 1956, divides educatinal gals int dmains. The gal f his wrk was t encurage teachers t classify learning bjectives t assess learning within a given skill set. Blm s Taxnmy levels are as fllws: evaluatin, synthesis, analysis, applicatin, cmprehensin, and knwledge. Evaluatin the ability t make infrmed judgments abut infrmatin. Synthesis bringing infrmatin tgether in different ways. The ability t frm slutins based n knwledge. Analysis the ability t break dwn infrmatin, prvide further insight int causes, and identify relatinships. Applicatin the ability t apply knwledge in different ways. Cmprehensin demnstrated understanding f cncepts and facts by being able t cmpare, rganize, and interpret main cmpnents. Knwledge recalling the basic terms, facts, theries, and cncepts f previuslylearned infrmatin. This thery supprts the hlistic nature f the NFEC prgrams and their fcus n encuraging gal-driven behavir. The NFEC curriculum applies Blm s thery t ensure that students g beynd cursry knwledge f finances t actually building their wn thughts abut financial tpics and relating the infrmatin t their wn experiences. These cncepts are imprtant because, as we discussed very early in this training, peple make mst financial decisins based n their emtins. Our gal as instructrs is t take students t the evaluatin stage the tp level n Blm s Taxnmy. This prcess takes time. But if yu cnduct pre- and pst-tests t measure what yur participants learn, yu shuld be able t determine whether they ve mved up the ladder f thinking skills in regards t financial literacy. If yu hsted a 1 hur class n credit what stage d yu think yu culd get an inexperienced audience t? If yu hsted a 12 hur class n credit what stage d yu think yu culd get an inexperienced audience t? 45

48 Blm further applied his thery t evaluate peple s emtinal reactins t infrmatin, peple, and the wrld arund them. He psited that they d s in the fllwing ways: Characterizing: develpment f a lng-term value r belief system that influences a persn s behavir. Valuing: internalizing and attaching value t the infrmatin. Organizing: cmbining values and infrmatin internally t frm a cnsistent set f values. Respnding: shwing interest and actively participating in the learning prcess. Receiving: being willing t participate and pay attentin (at least passively). Blm s methd f evaluating hw peple react emtinally t the learning prcess pulls tgether the entire system f teaching the NFEC curriculum. In fact, all these theries tie and cnnect tgether. Start at the bttm and wrk yur way up. If yu walk int a classrm and see that the students are sitting up and seem pen, yu can tell they re ready t receive infrmatin. Next yu ask them questins (and yur presentatins shuld include a lt f questins) and they respnd. The next level is rganizatin, and here NLP cmes int play remember, NLP is abut getting dwn t cre values. Then cmes valuing, where they begin t attach cre values t the infrmatin yu re sharing. The tp and ptimum level is characterizing: yur participants start t incrprate their changing values and translate what they ve learned int actual behavir. Putting it all tgether Cmbining all these guiding educatinal theries tgether, yu can see hw imprtant it becmes t address nt nly the different ways in which peple learn; but als t cnsider the wide variance in persnal experience and emtins that students bring with them. These theries help us deliver material in a way that resnates with the audience and truly draws them in t pay attentin. Nw let s review the simple framewrk within which t teach the NFEC financial educatin lessns: Establish clear gals. Build rapprt using narrative stries delivered in a cnversatinal tne. Ask prbing questins t help yu understand participants values, beliefs, and mtivatrs. Uncver the real prblems r issues they re trying t reslve. Offer slutins and fcus n the benefits. 46

49 Clse and ask fr a cmmitment t take actin. If participants dn t accept the call t actin, use the feel-felt-fund methd and clse again. The ultimate gal f financial literacy educatin is t help peple cnnect with their values and successfully integrate mney management skill sets int their cre value system and, finally, int hw they live their day-t-day lives. The framewrk is already built int the curriculum, but understanding the theries behind it helps yu becme a mre effective, dynamic, and passinate instructr. 47

50 Chapter Questins 1. Name the fur principles behind the NFEC s educatinal philsphy. 2. Which f the fllwing are imprtant cncepts f Neur-linguistic Prgramming (NLP)? a. Decisins based n greed and fear b. Frming an identity c. Peple mve away frm pain and tward pleasure d. Bth b and c 3. Name fur f the multiple intelligences identified by Gardner s Thery. 4. In Blm s Taxnmy f Higher-rder Thinking Skills, which f the fllwing represents the tp (ptimum) level? a. Knwledge b. Applicatin c. Synthesis d. Evaluatin 5. D yu believe understanding the thery behind financial literacy educatin will help yu becme mre effective and dynamic as an instructr? Yes N 48

51 Chapter V: Presentatin Tips S far we ve cvered the scpe f the financial illiteracy epidemic and the many prblems it s caused. We ve described the risks f nt learning abut mney and the benefits f getting a slid practical financial educatin. We ve explained the theries behind the NFEC prgrams. Nw we d like t get dwn t the details, and ffer yu sme tips t enhance the quality f yur presentatin and delivery. The NFEC curricula are unique amng financial educatin packages in that the events spark tremendus behavir change. Yu will really see first-hand that participants are inspired t take psitive actin steps tward imprving their lives. The results are exciting, and yu can bring that excitement with yu int every classrm. Let s review the NFEC s educatinal philsphy, which defines the steps in yur teaching prcess: Mtivate Engage Educate Mve t actin Next we re ging t give yu sme tips n hw t make each f these steps happen as yu teach financial educatin. Mtivate The mst effective instructin relates the tpic being presented t the deepest desires f the audience. Mtivatin is easy t build when we re talking abut mney. Peple feel very emtinal abut their finances. Mney knwledge is pwerful and cmpelling. Mtivate the Hk The hk refers t hw yu will initially capture the audience s attentin. Hw will yu peek their interest in what yu have t say. Here are a few ways: Why. Start by helping yur audience recgnize why they need a financial educatin. Remember that yu re empwering yur audience. Peple f all ages enjy learning when they have strng reasns fr ding s. Share yur persnal reasns fr wanting t teach financial literacy why is this imprtant t yu? Yu will begin building relatinships and rapprt with yur audience, and help them define what mtivates them. 49

52 Benefits. Fcus n the benefits f mney skills thrughut yur presentatin. Ask questins that help yur students identify benefits specific t them. Fr example, Having gd credit will save yu mre than ten thusand dllars n yur next car purchase. What will yu d with the mney yu save? Advertisers use benefits t sell prducts. Yu shuld use benefits t prmte financial literacy. Lifestyle. Peple dn t want t learn abut mney per se. Mney is just paper. What truly mtivates peple t learn abut persnal finances is the lifestyle they want t live. Discver yur classes lifestyle gals, and shw them hw mney management skills can help them reach thse gals. Fcus the prgram n the lifestyle advantages that mney skills can bring. Be real. Peple knw whether yu re being real with them r nt. Open up and share yurself with the class. It s been prven that narrative stries teach material much mre effectively than dry, bring presentatin f facts. Talk abut yur wn vulnerabilities arund mney issues. Being real builds trust, and the mre yur audience trusts yu the mre effectively they learn. Relate. Mst f us can relate t the experiences and feelings the audience is ging thrugh. Be empathetic. Keep yur ears pen; strive t understand yur audience s current psitin. Reflect back n yur wn experience and relate it t theirs. Stryline: Develp a stryline that develps thrugh the class perid. This can be an educatinal lessn r a stry that prgresses alng the lessns. Mdel a televisin script and yu will gain students interest. Opener: Let yur audience knw frm the utset that this isn t they typical bring class they are use t. Peple have been cnditined that learning is hard and bring. Creating a strng pener lets them knw this class is different. Mtivate Creating an Emtinal Respnse Creating an emtinal respnse in yur participants will help them understand hw imprving their financial capability will imprve their lives. It gives them cmpelling emtinal reasns t listen and retain what yu are saying. Envisin. Help yur participants envisin the practical impact f financial educatin n their real-wrld futures. Leverage the psitive and negative utcmes in an encuraging way. Fr example, yu might say, Because yu knw hw t handle credit, yu will avid paying high interest and late fees. Or, Nw that yu understand the magic f cmpunding interest, 50

53 yu can watch yur mney grw. Find ut their dreams fr the future. Encurage them as yu ffer practical tips fr achieving their persnal gals. Inspire. True inspiratin can nly be based n ne s underlying mtivatrs. Everyne s mtivatin is different; try t uncver what drives yur participants. Learn as much as yu can abut the demgraphic befre yu present, and ask questins t learn mre during the presentatin. Pay attentin and really listen t the stries they share. Take ntes s yu can relate yur presentatin t what yur audience finds imprtant. Emtin. Remember that mst peple tie financial decisins t their emtins. Rebelliusness, embarrassment, hpe, desire these are just a few f the emtins that can prvide pwerful leverage fr driving the message f financial literacy hme. Yur gal as an instructr is t elicit an emtinal respnse frm yur students, then fcus thse emtins int a psitive directin. Encuragement. News f financial disasters like freclsures and market crashes make headlines daily. In this climate f bad news, it s imprtant t spread a message f hpe. Encurage yur participants by shwing them hw cntinued mney educatin helps them believe in their wn abilities; and self-belief helps them achieve their desired financial status. Yu can d this, shuld be yur cnstant message. Hw will yu emply mtivatinal techniques int yur presentatin? Engage Once yu understand yur audience s mtivatin, the next step is t engage participants in the learning prcess. Many engagement features are built int the curriculum, but yu have a rle in keeping the tpic fresh, the activities fun, and peple s attentin fcused. Interact. Interactin nt nly keeps the class engaged, it helps yu understand the participants better. Yur presentatin shuld be give-and-take. Interact with yur students using large-grup and small-grup activities, asking and fielding questins, rle-playing, asking fr pinins, multimedia, and sharing stries. 51

54 Mve. Keep in mind that many peple spend 6 hurs r mre f the day sitting. Take breaks, mve arund, d exercises and deep breathing make yur presentatin different than the ther thusands f classes they re likely t sit thrugh. Entertain. Yu dn t have t sing r juggle t be entertaining. Mve arund the rm, vary yur vice mdulatin int different pitches, pull ut a few jkes, play music, r use party tricks t keep participants n their tes. Be flexible. Directing the class is part f an educatr s rle. But engaging an audience means smetimes having t g with the flw. Fr example, maybe yu ve scheduled a presentatin abut basic investment ptins. But nce in the classrm yu learn the participants are really interested in building their credit. Keep enugh flexibility t adjust yur gals t meet students needs. Prps. Using a variety f prps t get yur message acrss increases the fun factr, and fun builds engagement. We have a wide assrtment f tls t break up the mntny f a class sessin. Make the class interesting by interspersing vides, music, handuts, and games. Give specific examples n hw yu will engage yur audience: Educate Yur bttm-line gal is t teach participants sme gd mney management skills. But educatinal methds make all the difference between zer recall (in ne ear and ut the ther) and mving participants t take life-changing actin. Practical. Fcus instructin n the practical applicatin f subjects rather than n definitins, histry, r thery. Yur participants are mst interested in hw they can change their real-wrld situatins; leave the thery fr later. Stries. As we ve said many times, persnal stries give infrmatin in a way that the audience will truly remember. Use yur wn stries r draw upn third-party stries abut 52

55 yur friends, celebrities, sprts stars anyne yu feel will cnnect with and mtivate yur audience. Cntent. Chse high-quality curriculum with relevant, up-t-date cntent. Be sure the materials relate well t yur audience. Times change quickly, and yu need t keep pace. Select stries, tpics, and anecdtes that reflect current trends and the interests f yur audience demgraphic. Knwledge. If yu lack a strng grasp f the tpics yu re teaching, yur audience will knw. That desn t mean yu have t knw everything. If yu can t answer a questin, say, I dn t knw, but I ll find ut fr yu. Yur audience will appreciate yur candr and hnesty and yu ll win their respect. Cntinue t study; strive t learn and grw. Prepare. Stay prepared and practice yur presentatin befre yu step int the classrm. Besides knwing the material, fcus n hw yu ll mtivate, engage, and mve yur class t actin. Relax. Especially when yu re starting ut, yu may feel nervus abut presenting t a class. Remember that yu re there with gd intentins t imprve participants lives, and they re there t listen t yu. Relax, breathe, and have fun. Yur presentatin desn t have t be perfect. And the mre times yu g thrugh it, the mre relaxed and effective yu ll becme. Time. Learn t manage class time effectively. The curriculum is a guide t help yu get thrugh the lessns. Hwever, if students shw strng interest in cvering a specific tpic in mre depth, yu have the freedm t spend mre time n that subject and eliminate ther prtins. Cnsidering yur persnality, what tips abve will best help yu ensure yu are successful at educating yur audience: 53

56 Mve t actin Nw that yu ve engaged, educated, and increased yur audience s mtivatin, what d yu want them t d? We dn t want all thse mtivated peple wandering arund withut directin. As instructrs, ur jb is t pint them tward actin. We want every participant t cmmit t taking at least ne actin step tward a gal. Actin steps. Give yur students clear actin steps they can fllw t mve them clser t achieving their specified gals. Cmmitment. When we leverage the benefits t inspire peple tward actin, the results can be tremendus. Yur gal shuld be t mve every student t cmmit t at least ne actin. Resurces. Offer cntinuing educatin resurces t leverage the students mtivatin t learn mre. Accuntability. Financial literacy training shuld include a cmpnent f accuntability. Remember, the main respnsibility fr mney management lies with the individual. Hw will yur students apply what they have learned t the real wrld? Clsing. The clsing techniques we described in the last chapter are really a way t gain participant cmmitment t actin. All yur clsing techniques are a way t mve students t say, Yes, I will take that actin. It s imprtant in my life. Hw will yu mve yur audience t take psitive actin, thus ensuring their future finances and life will be better because f yu? All these strategies are designed t help yu becme mre cmfrtable presenting financial educatin in frnt f a class. Yur cnfidence will build as yu practice and learn. The mre yu can shw yur persnal excitement abut the tpics, the better yur participants will retain the infrmatin and feel inspired t learn mre. 54

57 Chapter Questins 1. What is the mst cmpelling reasn why peple want t learn abut mney? 2. Which f the fllwing are gd ways t keep an audience engaged? a. Mving arund b. Interacting with the audience c. Using a variety f prps d. Ging with the flw e. All f the abve 3. What shuld yu d if a participant asks yu a questin t which yu dn t knw the answer? 4. Name tw educatinal methds that will help yur participants remember and relate t the curriculum tpics. 5. What is the ultimate gal f yur clsing techniques? 55

58 Chapter VI: Curriculum Overview We ve cvered a lt f material s far. Yu shuld feel much mre cmfrtable presenting in frnt f a class, and are gaining cnfidence in yur ability t read an audience and deliver material effectively. Yu ve learned sme methds t help students retain infrmatin and mve them tward actin. But we have yet t prvide any specifics abut the actual tpics yu ll be presenting. In this sectin, we ll present an utline f the tpics cvered in the NFEC curriculum, and then summarize the lessns we ve develped fr each tpic. Althugh sme f the tpics may seem advanced, we start building the fundatin fr all these tpics starting at the pre-kindergarten level and they prgress with the participants age. The NFECs Financial Literacy Pyramid The US Treasury has called fr input frm rganizatins and cncerned citizens t develp the financial educatin pyramid. The NFEC applauds the US Treasury fr their effrts and their cllabrative apprach. Their dedicatin t helping peple are empwered with practical financial capability skills is cmmendable and the NFEC ffers ur supprt. Shwn belw is the NFEC suggestin and ratinal behind ur financial literacy pyramid. 56

59 The Financial Literacy Pyramid prvides a framewrk fr all ages f the NFEC cursewrk. Yu can present this diagram at the beginning f each class yu teach. The idea is t encurage students t begin thinking abut why these tpics are imprtant. Ask, fr example, Why d we want t learn abut accunts and budgeting? Get students thinking in the right directin thinking abut hw these subjects apply t their real lives. The bttm layer f the pyramid is the fundatin. These tpics are basic, cre fundatin pieces fr a financial educatin. The tpics becme mre cmplex the farther yu mve up the pyramid. One pint t make with students is that we re nt teaching financial literacy. We re teaching financial success. And ur definitin f success desn t invlve becming a billinaire. By success we mean being able t live a desired lifestyle, enjy and experience life, feel a sense f well-being and cmfrt, and supprt rganizatins and causes abut which we feel passinate. Since 2011 the NFEC has received feedback frm thusands f individuals and rganizatins. Thrugh demand- and supply-side surveys, research and think tanks the NFEC updated these categries t prvide the financial literacy industry the latest best practices data. The new NFEC areas f cre cmpetency that are replacing the ld financial literacy pyramid are: Financial Psychlgy Budgeting Accunt Management Credit Prfile Lans & Debt Jbs & Career Risk Management & Insurance Ecnmic & Gvernment Influences Investing Entrepreneurship It is imprtant t nte that the NFEC is in a cnstant state f beta meaning we seek t imprve cnsistently. Adpt this philsphy and embrace change. As yu gather mre knwledge, data and build yur skill sets update yur presentatins and any cntent yu prduce t reflect yur grwing expertise. 57

60 Financial Psychlgy Many financially successful peple credit their mental state, emtinal cntrl, and financial psychlgy fr their success. The mental aspect f mney issues is ne f the mst imprtant elements f financial wellness. In the financial psychlgy sectin f the curriculum frm PK thrugh adult, we cver many lessns that help participants have a better understanding f emtins, psychlgy and the mental aspect f mney. At every age level we have the fllwing lessns: 1) Relatinship with mney 2) Identifying yur dreams Relatinship with mney. This lessn addresses an issue that affects peple s lives daily: their spending habits. Each participant will have develped his r her mney habits befre cming int the classrm. This activity helps peple understand their current spending behavir. Many financial literacy prgrams and instructrs try t frce peple int becming penny-pinchers. But what if yu have a student whse mtt is Carpe Diem? This strategy will cause them t tune ut and reject the lessns. Our gal in this lessn is nt t change a persn s spending habits instantly. We want t influence them and prvide tls t make their wn decisins. Students cmplete a quiz t characterize their spending behavir. After the quiz cmes the imprtant pint f the lessn: Let the students knw it s all right t lean ne way r anther we are all unique. Hwever, if yu find yurself at ne end r the ther, yu may be missing ut. If yu were really cheap and never spent a dime but had a lt f mney saved, what might yu miss ut n? If yu spent all yur mney frivlusly, what might yu miss ut n? Dreams. This activity helps build excellent rapprt and teaches yu abut yur participants mtivatins. Here students relate mney t becming able t live a desired lifestyle, and make plans fr accmplishing their gals. The dreams activity ffers an excellent pprtunity t apply yur NLP skills. Ask questins t prbe deeper and mve students up the NLP pyramid t understand their values and beliefs and begin defining their identities. Here s an example cnversatin: 58

61 Student: I want t travel. Instructr: Why? Student: Because I m interested in ther cultures. Instructr: Why? Student: I think I culd learn a lt abut life. Instructr: Is learning abut life imprtant t yu? Student: Yes. Instructr: What will learning first-hand abut ther cultures d fr yu? Student: It ll help me be a better persn. Instructr: (Ask mre prbing questins until yu think yu understand the student s reasning.) OK, what steps will yu take t get there? The instructr shuld take detailed ntes abut the students dreams, gals, and aspiratins, and refer t them frequently while delivering the remaining cursewrk. Credit and Debt In the Credit and Debt sectin, students explre these tw cncepts and hw they relate t each ther. The materials are designed t prvide an in-depth understanding f credit cards, debit cards, lans, and hw credit histry affects ne s finances. Sme f the cmmn lessns discussed at each grade level include: 1) Credit histry 2) Credit card debt 3) Gd versus bad debt 4) Lan manager Credit histry. Having gd credit can save a persn mre than $100,000 in a lifetime. This lessn relates a cmplex tpic t a framewrk participants already understand the grading system in schl. Instead f asking students t memrize the details f a credit reprt, the lessn fcuses n the actin steps that build gd credit. The credit histry lessn seeks t leverage fear emtins fr participants wh d nt yet have a credit backgrund by strategically drilling in the cnsequences f being turned dwn fr a lan. Fr participants wh may already be suffering credit prblems, the exercise encurages psitive actin t rebuild credit histry, keeping the tne light-hearted and fun. Credit card debt. This lessn illustrates all the csts assciated with accruing credit card debt. The fcus is n the psitive instead f telling students, Dn t use credit cards, the instructr asks, Hw will yu spend the $500 interest yu save? Students are presented with prf that interest earned is mney they didn t have t wrk fr. Participants learn the prper way t use credit cards as a tl t build a gd credit rating. Instructrs are cautined t emphasize that a persn shuld never cnsider getting a 59

62 credit card until he r she has an emergency fund in place, a wrking budget, and the ability t cntrl spending. Students shuld cme away with the knwledge that credit cards are dangerus, while als having a specific game plan t fllw. Gd versus bad debt. After the credit card debt sectin, many participants will think all debt is bad. This lessn will teach them which kinds f debt are gd, and is designed t pique their curisity abut investment and entrepreneurship. Cntrary t ppular belief, purchasing a hme can be a bad investment. This sectin will help participants understand hw peple have been affected by the current real estate market. The lessn als cvers hw much yu lse when yu buy a brand-new car. Lan manager. Mst peple have n idea hw lenders qualify them fr lans. This hands-n lessn teaches the cncepts assciated with brrwing mney and pints up the advantages f financial educatin when btaining a lan. The lan manager activity has participants rle-play as brrwers and lenders. The lessn engages an emtinal reactin in many students, as the lenders may empathize with the brrwers situatins. Instructrs shuld relate the imprtance f knwing the lan qualificatin prcess t things the participants want: Wh s planning n ging t cllege? Wh wants t purchase a car r a hme? Own a business? Accunts and Budgeting In this sectin participants learn the principles f budgeting and savings, and hw they relate t spending habits. Using practical scenaris, students learn t create mnthly budgets and savings plans based n given incmes and lifestyles. Participants are intrduced t the banking prcess, learning t lcate a bank r credit unin with which they want t d business, what accunts they shuld pen, and hw t handle accunts prfessinally. Sme f the lessns include: 1) Banking essentials 2) Budget game Banking essentials. Much financial literacy cursewrk cvers the banking prcess in detail but leaves ut the framewrk that helps peple manage their mney. The NFEC, in cntrast, fcuses n practical skills fr prper accunt management. The instructr s gal here is t get all audiences t autmate their finances. Step-bystep guidance tward accunt autmatin will save time and mney, plus help avid cmmn prblems like missed payments and verdrafts. 60

63 Budget game. Befre we ask peple t build their wn budgets, we ask them t practice n fictinal characters. Why? Because mst adults feel a sense f stress when addressing their persnal budget issues. This activity helps lsen them up. And fr yung peple, the budget game ffers a glimpse int the future. The NFEC s gal is fr each participant t cmplete at least ne actin step befre leaving the prgram. Thus cmpleting a persnal budget in class is a must. Mst peple dn t have wrking budgets and this activity helps them cnsider all the financial cnsequences f their chices. Incme This unit gives participants knwledge abut varius ways t earn mney and fcuses them n fllwing their passins. The single lessn, Career Changes, imparts the skills t get hired, get prmted, and transitin t ther careers. The activity leverages emtins assciated with having jbs r bsses peple dn t like, and shws hw mney gives freedm t change ne s emplyment situatin. Participants actively search fr ptential careers and investigate the skills they need t get their dream jb. Just as in the budget game, this activity leaves participants with smething f persnal value a career plan. Skill Grwth This sectin builds n the Incme lessn by helping students understand the ptential fr lifelng learning t supprt career grwth and increase incme. Participants develp prficiency in skills develpment thrugh cntinued educatin, identifying dreams and gals, and learning t stand ut in the career marketplace. Sme f the lessns included fr all ages are: 1) Invest in yur future 2) Preparing fr yur dream jb tday Invest in yur future. This lessn examines higher educatin frm a return n investment perspective. The cursewrk emphasizes the imprtance f keeping student debt lw and presents activities t figure the cst/benefit rati f btaining an advanced degree. Preparing fr yur dream jb tday. The mst imprtant wrd in this title is tday. This is even true fr ur pre-kindergarten students! Mst peple never plan fr, and thus never attain, their dream jbs. This lessn, cmbined with the finding yur passin activity, help create a radmap t develp skill sets aligned with what participants mst enjy ding. Yur instructr gal fr this lessn is fr every participant t leave understanding hw skill sets are related t incme. 61

64 Risk Management and Insurance In this sectin, participants learn t understand insurance and hw t manage risk. Fr kids the instructin is fcused n identifying risk and the basics f insurance. Fr lder students, the instructin teaches abut the varius types f insurance: medical, aut, hme, and renter s; and helps participants cmprehend why purchasing insurance is necessary. The What is My Risk? lessn plan cvers hw insurance wrks and the dangers and ptential csts f living uninsured, within a decisin-making game framewrk. Business Relatins In this cmpnent students develp knwledge f netwrking and business relatins. They will learn the imprtance f netwrking t build business relatinships, cntacts, and ptential jb pprtunities. Participants learn hw netwrking ges beynd simply meeting peple, t building relatinships based n trust and mutual respect. Sme f the lessn plans prvided include: 1) Netwrking and mentrs 2) Finding trusted advisrs Netwrking and mentrs. Besides skill levels, the tp factr in successful gal accmplishment is wh yu knw. This lessn ffers participants a framewrk t break int their field f interest. Once again, instructrs leverage their passins and guide them t visualize their gals thrugh rle-playing exercises. Finding trusted advisrs. The gal f this exercise is t help participants knwledgeably build a team f trusted advisrs. Many financial literacy prgrams spend hurs teaching students hw t cmplete tax returns. Given the 15,000-page tax cde and severe penalties fr mistakes, the NFEC strngly advcates hiring a prfessinal t file ne s taxes. A tax CPA is just ne f the trusted advisrs recmmended in this lessn. Lng-term Planning This unit helps participants understand the imprtance f lng-term planning, including cash flw, persnal financial plans, wills and trusts. Explratin f mney, lifestyle chices, and relatinships guides participants t practively prepare fr their financial futures. Mst peple never create a life plan. This activity asks participants t plan their future lifestyle based n their financial aspiratins. The instructr guides them that the plan is a wrk in prgress, likely t change ver time; the activity is cmpleted with clse attentin t participant gals, values, beliefs, and persnal identities. 62

65 Investment The Investment sectin defines investing and illustrates hw investment impacts peple s lives. Participants learn a variety f investment strategies and techniques t increase lng-term financial security. A few f the lessns designed t teach abut investing include: 1) Cmpund interest 2) Dllar cst averaging and diversificatin Cmpund interest. Here participants learn the magic f cmpunding interest, drawing the distinctin between dllars they earn versus mney wrking fr them. Tugh ecnmic times have changed peple s financial utlk; this activity ffers hpe. Dllar cst averaging and diversificatin. This lessn cmprises tw activities that prvide specific details and require students fcus. The instructr s challenge will be t hld student interest during the initial prtin, since the games are near the end f the instructin. Instructrs shuld read thrugh this lessn several times t make sure they clearly grasp the cncepts befre attempting t present. Scial Enterprise The entrepreneurial lifestyle and mindset are cvered in this sectin. Students learn the meaning f being a scial entrepreneur and the skills successful entrepreneurs pssess; they receive instructin n hw t becme entrepreneurs, with a fcus n benefiting sciety. Ensuring ne s financial security requires multiple revenue streams. This lessn prvides basic knwledge and encuragement t start a scially respnsible rganizatin. The entrepreneurial venture can either hedge a participant s incme r becme a primary incme surce. The activity helps students chse causes t supprt aligned with their strengths and passins, pinting ut hw vlunteer wrk can build skill sets and pen up jb pprtunities. 63

66 Cnclusin Nw that yu ve cmpleted the NFEC Certified Financial Educatin Instructr Training, we hpe yu feel empwered and inspired, just as yu feel ready t empwer and inspire yur students. Nw yu understand that financial literacy is much mre than learning abut mney. It s a hlistic principle that affects every area f a persn s life. Take a mment t review what yu have learned ver the curse f this training prgram. These are the imprtant lessns we hpe yu take away frm this experience: Yu have a deep understanding f cmmn financial pitfalls and can design yur lectures t practively address these issues. Yu knw hw t deliver the material in a way that mtivates, engages, educates, and mves participants t take psitive actin. Yu understand different teaching techniques that will help yur participants retain and use this infrmatin. Yu have a better understanding f the tpics invlved in financial literacy and added cnfidence t speak in frnt f an audience. Yu knw hw t create a hlistic campaign that will increase the reach and frequency f the message. Yu are mre cmfrtable with the curriculum and feel secure knwing yu re giving participants practical skills they can use in the real wrld. Yu are inspired t share this infrmatin and feel gd knwing yu are making a difference in the lives f thse yu tuch. Thank yu! We at the NFEC want t thank yu fr yur cmmitment t helping thers. Yur status as an NFEC Certified Financial Educatin Instructr makes yu an ambassadr fr financial literacy, and we appreciate yur dedicatin t spreading this message. Because f yur effrts, many peple will be able t live richer, fuller lives. Financial literacy is the key t reviving the American Dream. Remember the qute: The American Dream is that dream f a land in which life shuld be better and richer and fuller fr everyne, with pprtunity fr each accrding t ability r achievement. ~James Adams Nw, hw will yu share this infrmatin with thers? 64

67 Chapter VII: Persnal Financial Plan As yu mve tward wrapping up the cursewrk fr yur participants, nw is the time t review everything they ve learned. Students can feel prud f their accmplishments; they shuld feel inspired t learn mre abut persnal finances, and empwered t take psitive actin steps tward their financial futures. As yu review the imprtant pints they ve learned, yu recgnize that yu have learned a great deal abut yur wn persnal finances as well: Yu have a better understanding f yur spending habits and relatinship with mney. Yu have started the prcess f writing dwn yur financial and lifestyle gals. Yu have a better understanding f credit and debt tpics. Yu have a clear understanding f hw peple qualify fr lans. Yu knw hw t autmate yur accunts and handle yur mney management prfessinally. Yu have started a career and skill grwth plan. Yu knw hw t evaluate educatinal ptins by examining higher educatin frm a return n investment (ROI) perspective. Yu knw the imprtance f building a trusted advisement team, finding a mentr, and netwrking. Yu have a started yur lng-term financial planning. Yu knw the imprtance f develping a structured investment plan and diversificatin. Yu understand the imprtance f creating additinal revenue surces. Yu are inspired t cntinue t learn abut financial tpics s yu can achieve the lifestyle that yu and yur lved nes desire. 65

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69 Intrductin Steve Repak Certified Financial Planner, Financial Educatr Army veteran & Department f Defense educatin facilitatr Authr f Dllars & Uncmmn Sense: Basic Training Fr Yur Mney. Expansive Media Cverage Regular guest n Fx Business and the 700 Club Interviewed n NPR, Blmberg Radi, Market Watch Radi, and Wall Street Jurnal Radi. Featured in Frbes, Investr s Business Daily, BusinessWeek, New Yrk Pst, MSN Mney and Yah Finance Currently cntributes t Equifax Finance Blg, Chse Nw Ministries, The Life f a Single Mm Ministries, and the Mmmiverse. 2 67

70 Intrductin The Training Best practices fr teaching persnal finance. Yu ll learn hw t persnalize yur presentatins and leverage yur experiences t inspire thers. Mixture f frmats. Vides, interviews, and activities. Actin-based use yur pause buttn s yu have time t cmplete the activities. Will require attentin, fcus, and cncentratin. Put away yur muse. Onging educatin. Fun, enjyable and rewarding. Yu will leave excited t implement the lessns we share tgether here. 3 Intrductin What the CFEI Training Will d fr Yu. Gain cnfidence in yur abilities t teach financial literacy. Understand the principles and educatinal theries that will imprve yur ability t increase yur participants financial capabilities. Imprve participant retentin rates f the lessns taught; and mst imprtantly, imprve usage f the infrmatin. Increase the enjyment yu experience when teaching financial literacy. Gives yu a framewrk s yu can celebrate yur achievements as an instructr. Imprve the impact yu make and feel rewarded knwing that yu are ding everything in yur pwer t make a lasting difference in the lives f thse yu reach. 4 68

71 Intrductin Tpics Cvered Include: Intrductin The Financial Illiteracy Epidemic Financial Psychlgy Measurement Teaching Financial Literacy Teaching Techniques Student Experience Hlistic Apprach General Presentatin Tips The Campaign Apprach t Financial Literacy Cnclusin 5 Intrductin The Natinal Financial Educatrs Cuncil Prvides training and resurces t thse wh are passinate abut teaching financial literacy. Curriculum Educatr Training Events Measurement Prgram Design and Cnsultatin Hlistic Campaigns Hme Study Curses Sftware Financial Literacy Prmtins Fundraisers Prducers f the largest full-prductin financial literacy event in the cuntry. Partnered with tp celebrities and sprts stars t increase reach f financial literacy initiatives. Material is created by a team f experienced educatrs and financial prfessinals. Has been credited with revlutinizing the way financial literacy is taught. Benefited ver 50 nnprfit rganizatins and has been featured by media arund the glbe. 6 69

72 Intrductin Why are yu interested in teaching financial literacy? Hw will this help yu persnally and prfessinally? Hw will it make yu feel when a student yu taught lets yu knw yu made a big impact n his r her life? What d yu want t learn tday? 7 Intrductin Erica Jacksn Penn State Erie Directr, Center fr Financial and Cnsumer Outreach Financial literacy prgramming, cmmunity utreach/cllabratin Junir Achievement f Erie Cunty Executive Directr Technlgy Cuncil f Nrthwest PA Brain Drain prjects Statewide financial educatin presentatins PA Office n Financial Educatin Department f Investments & Securities Jump$tart Calitin 8 70

73 Intrductin Gary Jaeckel Financial Educatin Leader 30 years in persnal and crprate finance CFO f a publicly-traded cmpany Teaching Certificate in Secndary Educatin Fllws his passin fr prmting financial literacy Published Authr Researched and published Teaching Persnal Financial Educatin Financial educatin best practices arund the wrld This bk adpted as part f the NFEC Certificatin prgram 9 Intrductin Tny Steuer Recgnized insurance authrity Life Disability Lng-term care Influential insurance literacy advisr Califrnia Department f Insurance NFEC Curriculum Advisry Bard Award-winning authr Tw bks establish a path fr insurance literacy Frbes recgnized his bk as tp 9 investment bks t read 10 71

74 Intrductin Diane Larsen Award-winning ecnmics teacher Jump$tart Calitin Outstanding Educatr f the Year Students have wn statewide Stck Market Simulatin 4 times U.S. State Department Ambassadr t Suth Africa Ecnmic educatin and financial literacy UCLA graduate Teacher, Mater Dei High Schl Ecnmics Business Ecnmic Educatin Business Law 11 Intrductin Vince Shrb CEO, Natinal Financial Educatrs Cuncil High-prfile financial literacy campaign develper Statewide initiative, Penn State Erie Internatinal prject t serve 450,000 peple Prminent media presence Featured n CNBC, CNN, and The Big Idea with Dnny Deutsch PSA featured in Time Glbal reach Develped mre than 80 assets that serve rganizatins arund the wrld Partners with mre than 50 celebrities and sprts stars 12 72

75 Definitin f Financial Literacy The ability t make infrmed judgments and t take effective actins regarding the current and future use and management f mney. It includes the ability t understand financial chices, plan fr the future, spend wisely, and manage the challenges assciated with life events such as a jb lss, saving fr retirement, r paying fr a child s educatin. Gvernment Accuntability Office 13 Definitin f Financial Literacy Persnal finance describes the principles and methds that individuals use t acquire and manage incme and assets. Financial literacy is the ability t use knwledge and skills t manage ne s financial resurces effectively fr lifetime financial security. Financial literacy is nt an abslute state; it is a cntinuum f abilities that is subject t variables such as age, family, culture, and residence. Financial literacy refers t an evlving state f cmpetency that enables each individual t respnd effectively t ever-changing persnal and ecnmic circumstances. Jump$tart Calitin 14 73

76 Intrductin The NFECs Definitin Pssessing the skills and knwledge n financial matters t cnfidently take effective actin that best fulfills an individual's persnal, family and glbal cmmunity gals. Natinal Financial Educatrs Cuncil 15 Intrductin Benefits Ability t live a desired lifestyle. Free time t spend yur days ding what yu enjy. The freedm t d what yu want. Independence, security and self- sufficiency. Ability t make a larger psitive impact n the wrld. Prvides yu the ability t help lved nes in need. Tys, status, travel and ther things. American Dream a Glbal Cncept The American Dream is that dream f a land in which life shuld be better and richer and fuller fr everyne, with pprtunity fr each accrding t ability r achievement. James Truslw Adams 16 74

77 Intrductin Missin Statement We re n a missin t empwer 10,000 families with practical mney skills while shwing them hw they can greatly reduce the cst f cllege by the end f the year. If yu believe what I m ding will be f service t families in ur cmmunity can yu send ut an t yur friends that yu think will benefit and pst a message n Facebk/Twitter? YES Great! I will send yu an tmrrw that yu can pass alng and I ll include a thank yu gift. Target Audience Time frame Specific gal Emtinal hk Yur Philanthrpic and Business Missin. 17 Intrductin Missin Statement Used fr Business Gals We re n a missin t empwer 10,000 families with practical mney skills while shwing them hw they can greatly reduce the cst f cllege by the end f the year. D yu believe what we re ding will be f service t families in ur cmmunity? YES Can yu send ut an t yur friends that yu think will benefit and pst a message n Facebk/Twitter? YES Great! I will send yu an tmrrw that yu can pass alng and include a thank yu gift. What is yur call t actin? 18 75

78 Financial Illiteracy Epidemic 19 Financial Illiteracy Epidemic Financial illiteracy is nt an issue unique t any ne ppulatin. It affects everyne: men and wmen, yung and ld, acrss all racial and sciecnmic lines. N lnger can we stand by and ignre this prblem. The ecnmic future f the United States depends n it. President s Advisry Cuncil n Financial Literacy 20 76

79 Financial Illiteracy Epidemic Recent Studies 70-76% f Americans live paycheck-t-paycheck One in 45 husehlds in default as f 2009 One in 96 hmes in freclsure 40% f Americans will never gain net wrth >$10, millin bankruptcies in Financial Illiteracy Epidemic Adult Statistics Regardless f incme, 70% f Americans are living paycheck t paycheck. The Wall Street Jurnal 1 in 45 husehlds (r 2,824,674 prperties natinwide) were in default in RealtyTrac 40% will never gain a net wrth in excess f $10,000. American Dream Educatin Campaign In 2009 there were 1.43 millin bankruptcy filings, an increase f 32% frm Assciated Press Mre than 50% f pre-retirees underestimate their life expectancy. Walter Updegrave, Senir editr f Mney Magazine 22 77

80 Financial Illiteracy Epidemic Yuth Statistics Only 11% f wrkers under 35 years f age indicate they are participating in their cmpany's 401(k). American Institute f Certified Public Accuntants 81% grssly underestimated the amunt f time it wuld take t pay ff a credit card balance making nly the minimum payments and 79% fail t pay their credit cards in full. The Center fr Ecnmic and Entrepreneurial Literacy Survey Less than ne-quarter f students and nly 20% f parents say students are very well-prepared t deal with the financial challenges that await them after graduatin. KeyBank Yung peple ften fail at their first cnsumer purchase, saving, banking, r credit experience, and may cntinue t make bad financial decisins int adulthd. Habits that begin at a yung age may carry n t adulthd and can cause financial prblems unless there is sme type f effective educatinal interventin; and this interventin needs t be in a frmat t which teens will pay attentin and frm which they will learn. Using a Financial Educatin Curriculum fr Teens, Assciatin fr Financial Cunseling and Planning Educatin 23 Financial Illiteracy Epidemic Impact n Higher Educatin The tp reasn students gave fr drpping ut f cllege was due t financial cnstraints. Public Agenda Of cllege drputs, 71% f thse surveyed answered, I needed t g t wrk and make mney while 52% stated, I just culdn t affrd the tuitin and fees. Public Agenda 62% f all cllege graduates will have a student lan debt averaging $27,236 - representing $101 billin natinally. Student Mnitr Amng 2009 cllege grad jb seekers, 80% mved back hme with their parents after graduatin. CllegeGrad.cm Survey Mre than half f cllege students accumulated mre than $5,000 in credit card debt while in schl, and ne-third piled n mre than $10,000 in debt n credit cards. Sallie Mae 24 78

81 Financial Illiteracy Epidemic Main Areas f Mney Management Assets Cash, mutual funds, real estate, annuities, metals, bnds, securities. Incme Mney frm wrk, cash flw, investment incme, benefits, business endeavrs. Debt Mney wed n lans and ther bligatins. Credit Yur ability t repay mney yu brrw, ability t access capital, lan terms. Insurance Prtects yur assets, incme, and credit. 25 Financial Illiteracy Epidemic Cmmn Mistakes D nt clearly define hw much mney they need t live the lifestyle they desire. Lack a clear financial plan. D nt have a trusted financial mentr, advisr r cach. Pr financial chices due t lack f financial knwledge. Lack the cnfidence t make necessary financial mves. Pr financial chices due t emtins. Fear and greed mtivate mst chices. Peple take advice frm the wrng peple. Mst advice cmes frm salespeple, family and friends. Had a few prblems that snwballed. Unrealistic investment return expectatins. Pr financial habits they develped at an early age

82 Financial Illiteracy Epidemic Pr financial habits Excessive student lan and credit card debt accrued in cllege. Lack a practical financial educatin. Lacking cnfidence and experience. Nt able t get a jb immediately after cllege. Mistakes that cmpund. 27 Financial Illiteracy Epidemic Future Cncerns Scial Security Trust Fund is prjected t be exhausted by 2037 and Medicare is expected t be inslvent in year Year 2037 is when a 15 year ld tday is age 41. Inflatin, higher taxes and lengthy rad t full emplyment. One-third f wrkers will have n mney saved in a 401k plan by year Gvernment Accuntability Office The past ten years has seen an enrmus reductin in pensin plans ffered t emplyees. Only 46% f all wrkers were cvered by a defined benefit plan in Emplyers are replacing pensin plans with cntributry retirement prgrams. Unfrtunately, mst wrkers with access t these cntributry prgrams are nt participating sufficiently t allw them t retire in their sixties withut suffering a great decrease in their standard f living. Natinal Assciatin f State Bards f Educatin 28 80

83 Financial Illiteracy Epidemic Impact n Many Areas f One s Life 29 Financial Illiteracy Epidemic Areas Financial Illiteracy May Impact: Health stress, wrry, unhealthy cping behavirs and injuries. Happiness reprts shw peple wh make less than $75,000 per husehld n average are less happy than thse wh make mre. Fr thse earning abve $75,000 in annual incme there is less f a crrelatin between mney and happiness. Prductivity studies cnclude thse that suffer frm financial issues are less prductive at wrk, hme and in their persnal life. Relatinships leading cause f divrce and relatinship strain. Lifestyle peple miss ut n life experiences and gals. Security unable t affrd imprtant persnal and financial safety measures. Wellbeing nt able t fllw their dreams, which impacts their wellbeing. Free time peple spend a lt f time wrking their way ut f debt

84 Financial Illiteracy Epidemic Yur Targeted Clients Financial Prblems Identify the areas that are mving the grups yu serve away frm financial wellness. Create the stry line f the typical client yu will be serving. Include the emtins and ther items beynd just finances that they may be ging thrugh. Break up int grups based n the ages and varius demgraphics yu will be serving. Select ne persn t read the stry t the class. 31 Financial Illiteracy Epidemic Financial Literacy Wrks Financial literacy curses had measurable effect n participants behavir. It cncluded that the greater expsure students received t financial educatin, the mre psitive financial decisins and lifestyle chices they made. Study, 'Examining the Influence f Financial Literacy Individuals that have taken a persnal finance educatin curse have a higher savings rate, higher net wrth and make larger cntributins t their 401k. Department f Treasury. Thank yu What yu are teaching is bigger than just mney. Yu are helping peple live their wn persnal American Dream. Impact their health, happiness, wellbeing, security, prductivity and mre

85 Financial Illiteracy Epidemic D yu have an understanding f hw mney impacts lives? Are yu aware f the cmmn financial pitfalls peple face? D yu understand the benefits assciate with pssessing practical financial knwledge? D yu want t help peple avid prblems and live rewarding and fulfilling lives? Are yu ready t mve t the next sectin and learn mre? 33 Financial Psychlgy 34 83

86 Financial Psychlgy Maslw's Hierarchy f Needs Develped by Abraham Maslw in his 1943 paper A Thery f Human Mtivatin. Self-actualizing Needs. The highest level f Maslw s Hierarchy f Needs is self-actualizing. This is where peple fcus n persnal grwth, legacy and making a psitive difference. Esteem Needs. Furth n Maslw s Hierarchy f Needs includes the desire fr persnal achievement, accmplishment, status and earning respect. Lve and Belnging Needs. These scial needs include the desire t be accepted, lved and t share affectin. Security Needs. The next level f Maslw s Hierarchy f Needs include the desire fr safety and security. Physilgical Needs. Maslw believed that needs such as the necessity f fd, water, air and sleep are the mst basic, necessary and instinctive. All ther needs described in this hierarchy becme secndary until the cre physilgical needs are met. *Please nte: This cursewrk is nt validating Maslw s thery; hwever it gives us a gd framewrk t understanding the impact f finances n ur lives. 35 Financial Psychlgy Hw Financial Mindsets are Frmed Envirnment. Sciecnmic backgrund. Neighbrhd and family situatin. Rle mdels. Parents, educatrs, peers and influencers. Habits and relatinship with mney passed dwn frm parents. Educatin Mst kids nt taught abut mney. Parents will talk abut sex befre they have The Talk abut mney. Many teachers and parents fcus ur yuth n the gal f cllege and nt achieving a dream lifestyle. Generatinal influence. Example: Depressin era children ften became frugal, savers, cash purchasers and lw-risk investrs. What impact d yu think the current ecnmy will have n this generatin f kids and teens? Advertisers messages. Our yuth are inundated with ver 10,000 advertisements teaching them t buy, buy, buy

87 Financial Psychlgy Hw Financial Mindsets are Reinfrced Envirnment. Netwrk and circle f friends Influencers. Scial media makes everyne the Jneses. Frm peers and frm peple in the cubicle next t them. Educatin. Mst adults never studied persnal finance. Past experiences with mney. Advertisers messages. Emtinal attachment t finances. Psitive r negative habits get reinfrced. 37 Financial Psychlgy Psitive & Negative Psychlgical Impact Describe the actins, situatins r events that lead t a psitive and negative psychlgical impact n peple in these different age grups: Kids Teens Adults Example: A kid wh receives everything he r she wants ften desn t understand the value f mney

88 Financial Psychlgy Quantifying Ones Financial Psychlgy The Transtheretical Mdel f Behavir Change prvides a framewrk t quantify a persn s willingness t change. Assesses ne s readiness t act n a new, healthier behavir. Often used when addressing addictins. (Prchaska & DiClemente,1983; Prchaska & Velicer, 1997) The six prcesses f change: Precntemplatin Cntemplatin Preparatin Actin Maintenance Terminatin 39 Financial Psychlgy Precntemplatin Thse in the Precntemplatin stage have: N intent t take actin in the near future. Many are unaware that their behavir is prblematic. The NFEC uses lng-term awareness strategies t mve them t the next stage. Denial, wh cares, it wnt help, it s a waist f time

89 Financial Psychlgy Cntemplatin Thse in the Cntemplatin stage: Are beginning t realize their behavir is prblematic. Have begun lking at the benefits and drawbacks f their cntinued actins. The right educatr can influence peple int the next level f change. The NFEC educatr training leverages neur-linguistic prgramming and strng benefit/cnsequence-driven curriculum t influence participants tward taking actin. 41 Financial Psychlgy Preparatin Thse in the Preparatin stage: Intend t take actin. At this stage, guidance and knwledge can prvide the impetus fr participants t begin mving frward. Since many peple simply lack directin, the NFEC training ffers stepby-step directins aimed at instilling cnfidence in their skills as they wrk tward their persnal financial gals

90 Financial Psychlgy Actin Thse in the Actin stage have: Made sme psitive mdificatins in their lifestyles. Once participants reach this stage, cntinued reinfrcement fr their effrts thrugh nging training and supprt is crucial. Fllw-up training is helpful t keep the participants mmentum. 43 Financial Psychlgy Maintenance Thse in the Maintenance stage have: Have changed their behavirs and have a plan t maintain thse behavirs. Getting them t the maintenance stage is an imprtant gal f financial educatin cursewrk. The main fcus f the educatr is t ensure that participants stay n curse and d nt becme ver-cnfident. Preventing relapse int past negative financial behavirs is essential

91 Financial Psychlgy Terminatin Thse in the Terminatin stage have: Psitive behavir change in place and they have mved beynd any temptatin t g back t frmer negative financial behavir. At this stage the training can be cnsidered a success. 45 Financial Psychlgy Emtins There is a direct relatinship between mney and emtins. Many financial decisins made are based n emtins and nt lgic. Humans are cnditined t mve away frm pain and tward pleasure. Shrt-term pleasures are the chice f many. Many financial decisins that are made d nt align with peple s lng-term gals. Many peple d nt create lnger term plans because it wrries them. Many peple make financial decisins that aren t in alignment with their emtinal cmfrt zne. What type f investr are yu? Are yu a penny pincher, balanced r ver spender? What are the 2 emtins (character traits) that drive mst financial decisins? 46 89

92 Financial Psychlgy Emtins: Greed & Fear These tw emtins are respnsible fr mst financial decisins that peple make. Chart frm CNN.cm 47 Financial Psychlgy The Fear Freeze When peple lack cnfidence and the knwledge t make financial decisins during difficult times, mst freeze up. They fear making a wrng decisin r anther wrng decisin. Describe hw the freeze can impact these situatins. A child has a bad experience with letting a friend brrw smething. A cllege-bund student is verwhelmed by student lan dcuments and just signs them withut understanding. An adult selected a bad mrtgage slutin and is a few mnths away frm lsing her hme

93 Financial Psychlgy Emtins: Hpe, Wishing, Dn t Want t Miss Out 40% f Americans are cunting n the lttery, sweepstakes, getting married, r an inheritance t fund their retirement. Walter Updegrave, Senir Editr f Mney Magazine Upn the implsin f past bubbles (real estate, stck market) peple relied n hping the markets wuld turn arund and ignred bvius signals. [There are] signs f frth in sme lcal markets where hme prices seem t have risen t unsustainable levels. Alan Greenspan As the bubbles frmed peple didn t want t miss ut. Warren Buffet Peple f all ages hpe withut taking actin. Many times this stems frm lack f knwledge and nt having an exit plan. 49 Financial Psychlgy Describe the Emtins Invlved with Mney NASDAQ

94 Financial Psychlgy Rbert Plutchik s Wheel f Emtins Thery 8 basic emtins: Fear Anger Sadness Jy Disgust Trust Anticipatin Surprise Chart frm Changingminds.rg Research by Parrt (2001) 51 Financial Psychlgy The Negative Financial Cycle Lack Knwledge 1) Fear & Lack Cnfidence 2) Freeze r Act Fast -Like pulling ff a Band- Aid 4) Next Cycle 3) Mistake r Lucky Success 52 92

95 Financial Psychlgy The Negative Financial Cycle - Mistake 1) Mistake -Regret -Shame -Embarrassment 2) Fear -Freeze up -Fear f lss 4) Despair -Give up 3) Hpe -They dn t take actin and hpe things gets better. 53 Financial Psychlgy The Negative Financial Cycle Lucky Success 1) Lucky Success -Bad decisin with psitive utcme. 2) G all in -Greed 4) Fear. Cycle 3) Hpe -Make n mves and hpe it gets better 54 93

96 Financial Psychlgy Limiting Beliefs Yu have t be gd at math t be gd with mney. I ll prbably end up just like my parents. It s t cnfusing. Wrk hard, play hard, spend mney. I have enugh. I need. Mney s the rt f all evil. I dn t care abut mney. Mney can t buy happiness. I dn t want t pay mre taxes. I have an inheritance cming. 55 Financial Psychlgy Creating Psitive Financial Psychlgy Empathy Knwing hw t empathize with their current situatin and mve them beynd. Techniques reading ld yearbks, surveys, pre-testing, talking with them, etc. High expectatins. Mve participants t dream big and set the bar high fr themselves. Help students identify their relatinship with mney. Create emtinal rllercaster's. Student Experience Card demnstratin. Prvides a clear and detailed actin plan. Strng reasns. Help participants identify what mtivates them t financial wellness. Address stressful tpics strategically. Name stressful tpics fr each age grup

97 Creating Psitive Financial Psychlgy Financial literacy is unique Getting past the educatin barrier. Financial literacy will affect every day f their lives. Language Dn t ask yes/n questins like D yu want t learn abut mney? Instead, ask: Why d yu want t learn abut mney tday? Self-educatin Things change quickly. Self-educatin and learning shuld be a lifelng prcess. Timely educatin Bring presentatins d mre harm than gd. Give them lessns they can apply t their lives right nw. Help them discver their reasning Gals like hme wnership mtivate learning. 57 Measurement 58 95

98 Measurement Measurement Sectin Overview Measurement Types Setting Measurement Gals Pre-event Measurements Surveys, Pre- and Pst-Testing Quantifying Results 59 Measurement Why Measure? Imprve yur effectiveness as an instructr. Able t be better prepared prir t teaching a class. Helps students recgnize their imprvement. Prves that the financial literacy curse is effective. Helps us raise funds thrugh grants and spnsrships. Prven prgrams attract vlunteers and advcates. It s exciting t see the impact we make as instructrs

99 Measurement Measurement Tls Surveys Pre-event and in-class surveys allw instructr t adjust material and training style t accmmdate the participants. Pst-event surveys. Pre- & pst- testing Measures the imprvement f the participants financial capabilities. Lng-term measurements Measures the lng-term impact n the participants change in behavir. Instructr measurements Can include shrt- and lng-term measurements f the instructr s effectiveness. Organizatinal measurements Quantifies the prmtin results related t the rganizatin s bjectives. Partners measurements Quantifies the prmtin results related t the partners bjectives. 61 Measurement Gals: Educatinal Measurement Set quantifiable gals first, then develp prgramming arund thse bjectives. Develp clear measurement bjectives and ways t quantify impact. Pre- & Pst-testing Lng-term measurement Instructr measurement Ensure educatinal bjectives align with the prgram ffered. Be flexible during class but ensure yu stay n tract with bjectives. Share measurement gals with thse invlved in the prgram. Enlisting the supprt f thers can imprve the prgram. Establishing realistic gals. What utcmes might yu expect after a 1 hur class? What utcmes might yu expect after a 20 hur prgram? What utcmes might yu expect after a year lng mentrship prgram? 62 97

100 Measurement Understanding the Participants Befre beginning the instructin it is imprtant t gain a deeper understanding f yur audience thrugh surveys, pre-testing and direct cmmunicatin t get a better feel fr: Participants Needs Mtivatrs Current Knwledge Level Challenges they Face Willingness t Change Hw can yu d this? 63 Measurement Stages f Change Framewrk Remember this? Precntemplatin Cntemplatin Preparatin Actin Maintenance Terminatin *Transtheretical Mdel f Behavir Change (Prchaska & DiClemente, 1983; Prchaska & Velicer, 1997) 64 98

101 Measurement Gathering Infrmatin fr Stages f Change Sample questins that help instructrs determine the Stage f Change the participants are currently experiencing:* D yu currently have financial cncerns? Wuld yu be interested in a prgram that can help yu vercme thse financial cncerns? Hw can learning abut mney help yu? What benefits d yu see in being financially knwledgeable? Hw many hurs per week culd yu dedicate t learning mre abut mney? *Infrmatin is gathered thrugh surveys with enugh time in advance t prepare the instructrs and cntent delivered. 65 Measurement Sample Stages f Change Reprt 66 99

102 Teaching Financial Literacy (Measurement) Surveys, Pre- & Pst-testing Pre-testing allws instructrs t get the baseline level f knwledge and shuld be given befre any instructin takes place. Pre- and pst-tests shuld be identical. Instructr shuld ensure the answers t questins asked n the pre- and pst-tests are cvered in class. Surveys that gather students pinins, suggestins, ratings and cmments shuld be given t students prir t pst-test. Items that can negatively impact pst-test and pst-surveys: Participants are mentally tired Distractins are present Once yu cmplete the test yu can leave. 67 Measurement NFEC Tests The NFEC s tests cver three distinct areas that impact ne s financial capability: Mtivatin t Learn D the participants understand hw the subject f financial literacy impacts their daily life? D they relate the handling f their persnal finances t their dreams? Mtivatin t learn is a critical area t measure, as it directly impacts hw we deliver the instructin and which lessns we fcus n within the curriculum. Subject Knwledge Mst financial educatin tests simply measure subject knwledge example: What is APR? While this is imprtant, it is nly ne area that impacts ne s financial capability. The NFEC uses this measurement in cmbinatin with the ther tw mentined t achieve a mre cmplete evaluatin f ne s financial capability. Recgnitin f the First Step The NFEC recgnizes this as a critical cmpnent n mving participants t take psitive actin d they understand the first step that leads them tward a better financial psitin? Mst financial literacy curriculum and tests d nt measure r teach this critical cmpnent. Prviding instructin that includes the exact steps they shuld take is critical fr retentin and implementatin f the material

103 Measurement Sample Pst-test Reprt 69 Measurement Sample Pst-test Reprt

104 Measurement Framewrk t Quantify Results Blm s Taxnmy f Higher Order Thinking Skills & Depth f Knwledge Levels Allws us t quantify the results f the curse r prmtin. Gives specific framewrk t measure the participants financial capability. 71 Measurement Blm s Taxnmy f Higher Order Thinking Skills A learning apprach that allws teachers t classify learning bjectives. Blm s Thery suggests that students mve thrugh six levels f learning t demnstrate prficiency and t make their wn ideas abut their learning. Blm s Taxnmy s levels are as fllws; knwledge, cmprehensin, applicatin, analysis, synthesis and evaluatin. Evaluatin Synthesis Analysis Applicatin Cmprehensin Knwledge Use the next slide t describe the prgram utcmes. What utcmes might yu expect after a 1 hur class? What utcmes might yu expect after a 20 hur prgram? What utcmes might yu expect after a year lng mentrship prgram?

105 Measurement Blm s Taxnmy f Higher Order Thinking Skills Evaluatin ability t make infrmed judgments n infrmatin. Synthesis bringing infrmatin tgether in different ways. The ability t frm slutins based n knwledge. Analysis the ability t break dwn infrmatin, prvide further insight int causes and identify relatinships. Applicatin the ability t use the knwledge and apply it in different ways. Cmprehensin demnstrated understanding f the cncepts and facts by being able t cmpare, rganize and interpret the main cmpnents. Knwledge recalling the basic terms, facts, theries and cncepts previusly learned. 73 Webb s Depth f Knwledge Level 1 Recall Students recall basic infrmatin like names, facts, r qutes Level 2 Skill/Cncept Cnnect Recall level infrmatin t prblem-slving Level 3 Strategic Thinking Higher cgnitive rigr like planning, reasning, and explaining thught prcess Level 4 Extended Thinking Questins require cmplex reasning and analysis Cnnect lessns with ther cncepts Similar t Blm s analysis and synthesis stage

106 Measurement Lan Game Activity Will Yu Lend Me Mney D yu lend yur friend Tm $900? Cllateral - He has $200 fr a dwn payment. Credit He has n credit histry. Incme Tm makes $1,000 per mnth. Debt His ttal debt is $1,400 n credit cards. Debt vs. Incme His ttal mnthly payments between debt, rent, and insurance is $800 per mnth. Assets $200 in a savings accunt. Overall Tm has a sptty jb histry and has jumped fields several times cashier, salespersn, stylist, and pet grmer. 75 Measurement Lan Game Activity Evaluatin -- Ability t make cnfident and infrmed decisins when peple ask t brrw mney. Synthesis Making the decisin whether t lend mney r nt based n cnsideratin f all variables. Analysis What if s. What if they give me their bike as cllateral? What if they pay me duble? Applicatin The steps I use t decide t lend ut mney are similar t what lenders will lk at when evaluating me fr a lan. Cmprehensin I lk at smene s repayment recrd, incme, debt, what I can hld nt and cash t decide if I lend ut mney. Knwledge Skipped, and start with higher level

107 Measurement Blm s Taxnmy f Higher Order Thinking Skills Blm s evaluatin f peple s emtinal reactins t infrmatin, peple and the wrld arund them. Characterizing develpment f a lng-term value r belief system that influences a participant s behavir. Valuing internalizes and attaches values t the infrmatin. Organizing cmbining values and infrmatin internally t frm a cnsist set f values. Respnding shws interest and an active participatin in the learning prcess. Receiving willingness t participate and at least passively pay attentin. 77 Measurement Gals: Instructr Measurement Set clear and prgressive gals fr instructrs. Use the first few events t refine and adjust measurement indicatrs, surveys and testing. Review surveys, pre- and pst-testing results n a regular basis. Create lnger-term measurement charts f the instructr s ratings and students test results. Cmpare instructrs perfrmance. Have instructrs with lwer perfrmance reviews sit in n training with thse wh achieve better results. Prvide cntinuing educatin. Vide yurself and watch it!

108 Measurement Lnger-Term Measurement Lnger-term measurements help identify behavir change and verall imprvement in the participants financial capabilities. Many funders and spnsrs are lking fr prven prgrams that imprve participants financial capabilities. Lnger-term measurements may include testing, surveys and ther quantifiable measurement tls. Design quantifiable lnger-term measurements that align with the lessns taught. Example: If yu d a class where the gal is t imprve savings rate, hw has their savings rate grwn since the class. If yu are teaching kids, invlving parents r educatrs will be imprtant. Ensure accurate data by seeking tls that help yu quantify. Accunt statements. 79 Measurement Organizatin & Partner Objectives What is needed t cnsider the initiative a success? What d yur partners need t cnsider the prgram a success? Overall educatin and utreach gal? Demgraphic f thse yu seek t serve? Gegraphic area served? Overall business and sustainability gal? Persnal and philanthrpic gals? Hw will yu align rganizatin and partner gals?

109 Measurement Activity Build a Measurement Tl Select ne event that yu currently cnduct. Develp a Stages f Change survey. Develp a pre- and pst-test. Develp a pst-event survey. Steps: Elect ne persn t type the questins n Wrd dc in class. Everyne participates in sharing ideas. A draft Stages f Change survey, pre- and pst-test and pst-event survey are develped. Ensure questins are aligned with quantifiable learning measures discussed in Blm s. 81 Teaching Financial Literacy

110 Teaching Financial Literacy Financial Literacy is a Unique Subject Unlike mst ther cursewrk, each f the participants have had an experience and relatinship with mney. Each participant has sme type f emtinal cnnectin t mney and what it brings them. Financial literacy directly impacts every secnd f their lives. Directly relates t current situatins they are experiencing and future gals. Is a subject mst peple want t learn abut. A financial educatin will impact many areas f their life. 83 Teaching Financial Literacy Why Sme Prgrams Fail Bring! Presenters d nt understand r cnnect with audience. Primarily cnsist f thery-based educatin and lack practical applicatin lessns. Lack quantifiable results. Pr quality curriculum. Outdated material, incrrect infrmatin, lacking imprtant lessns and written by peple withut any financial experience. Nt enugh time is spent teaching the lessns. Limited fllw-up educatin and n measurement. They d nt prvide material t thse that supprt the develpment f the participants. Are fcused slely n educatin and d nt mve participants t take actin

111 Teaching Financial Literacy Jhn Hpe Bryant Mr. Bryant serves U.S. President Barack Obama as Chairman f the Subcmmittee n the Underserved and Cmmunity Empwerment fr the President's Advisry Cuncil n Financial Capability. Prir t that Mr. Bryant served U.S. President Gerge W. Bush as vice chairman f the U.S. President's Advisry Cuncil n Financial Cuncil, and chairman f the Cuncil Cmmittee n the Underserved. Operatin HOPE, America s first nn-prfit scial investment banking rganizatin, funded immediately fllwing the Rdney King Rits f 1992 in Suth Central Ls Angeles, nw perates in mre than 270 U.S. cmmunities and Suth Africa, has served mre than 1.5 millin individuals, has mre than 18,000 HOPE Crps vlunteers, mre than 5,000 partners frm gvernment, cmmunity (including faith) and the private sectr, has raised mre than $600 millin and helped t restructure anther $450 millin in subprime mrtgages t empwer the pr, fr a ttal f apprximately $1 billin in ecnmic activity fr the under-served. Vide Curtesy f the Dcumentary Mvie Financial Illiteracy Epidemic Expsed 85 Teaching Financial Literacy Engaging Students Dreams and Passins Cnnect with the audience; let yur wn passin fr financial literacy shw. Thery-based Educatin Keep tpics relevant hw will the knwledge imprve their lives? Lack Results Measurement helps ensure quantifiable results Pr Curriculum Chse practical, real-wrld curriculum. Time Fllw up with reminder educatin. Make sure they re taking actin steps

112 Teaching Financial Literacy Keeping Students Engaged Hlistic Apprach Dn t just teach the end user. Prvide tls, training, and resurces t thse wh serve the end user. Increase Reach and Frequency f Message Bring mre peple int the circle f educatin and repetitin. Adults can talk t their kids as well. Educatin vs. Mvement t Actin Fcusing slely n educatin is nt enugh. Repetitin and implementatin are key. Start integrating the lessns int yur teaching right nw. 87 Teaching Financial Literacy Persuasin (Sales) Techniques Gardner s Thery Dreams & Lifestyle Neur-Linguistic Prgramming

113 Teaching Financial Literacy Gardner s Multiple Intelligences Thery Gardner s thery suggests that there are nine learning dmains r intelligences that students gravitate twards within instructin. Intelligence, accrding t Gardner, is the ability t prvide a service r prduct within ne s culture, the pssessin f a set f skills t slve life prblems r using new knwledge t create and slve prblems. (PBS.rg) The NFEC s financial literacy curriculum prvides students the ability t use their wn intelligence t assciate their learning with their persnal financial gals r situatins. The use f Gardner s thery within ur curriculum allws students t learn in their wn preferred learning style. Lube Escbar Teaching Financial Literacy Gardner s Multiple Intelligences Thery Linguistic intelligence these students learn well thrugh the spken and written wrd and have the ability t use language t express themselves. Lgical-mathematical intelligence these peple have the ability t analyze prblems lgically, are gd with math and can deductively slve prblems. Musical intelligence these students are skilled in recgnizing musical pitches, rhythms and tnes. Often they als pssess linguistic intelligence. Bdily-kinesthetic intelligence these peple actively use their bdies t slve prblems. Spatial intelligence these students can recgnize and use the patterns f space. They are skilled at transfrming mental images int reality. Interpersnal intelligence these students have the capacity t understand the intentins, mtivatins and gals f thers. Intrapersnal intelligence these students psses the capacity t understand themselves, their feelings and can regulate their lives

114 Teaching Financial Literacy Hw D Yu Learn? Linguistic intelligence Lgical-mathematical intelligence Musical intelligence Bdily-kinesthetic intelligence Spatial intelligence Interpersnal intelligence Intrapersnal intelligence Activity Describe what type f learner yu are. Teach the class smething yu learned tday in a way that aligns with yur learning style. 91 Teaching Financial Literacy The Sales Apprach Backgrund Salespeple are the backbne f sciety. Educatrs make excellent salespeple. Sales is uncvering a need, understanding clients gals, building a relatinship, prpsing slutins and mtivating them t take actin. Sales in Educatin Presenters have a clear understanding f the needs and desires f the participants. They align their presentatin t shwcase the benefits that mtivate the class. The instructr fcuses n building rapprt with the students. Presenters mtivate students t take clearly defined actin steps. The educatr takes cnstructive remarks t imprve future lessns

115 Teaching Financial Literacy Sales Apprach, Phase 1 Preparatin Believe in what yu are selling (teaching). Reflect n hw financial literacy will impact yur students lives. Cnfidence is built thrugh preparatin. Participants can tell when yu are unsure f yurself and this directly impacts the effectiveness f the instructin being delivered. Knwledge f the tpics presented. Yu dn t need t be an expert but knw the main pints f the tpics yu discuss. Learn as much as pssible abut the audience befre yu arrive. This gives yu time t shape yur presentatin t fit the audience. Set clear gals. Example: My participants will imprve their test scres by 25%. 93 Teaching Financial Literacy Sales Apprach, Phase 2 Listening and Rapprt Active listening. Ask prbing questins t understand the participants values, beliefs and mtivatrs. Take ntes n key pints. Gain an understanding f their psychgraphics. Psychgraphics allws us t understand participants attitudes, values, lifestyles, and pinins. Cmmnly referred t as IAO variables (Interests, Activities, and Opinins). This understanding prvides directin n hw t shape ur presentatin. Build rapprt. Rapprt helps us cnnect with ur audience and will increase the participatin rate in ur call t actin. Rapprt is ften defined as building trust and being in sync with yur participants. Preparatin and active listening are the first tw steps t building rapprt. Other tips t building rapprt: small talk n subject, be real, share persnal stries, relate t students, have fun, make the lessns engaging and shw yu truly care abut their wellbeing

116 Teaching Financial Literacy Sales Apprach, Phase 3 Offer Slutins Timing f presenting slutins. Slutins can nly be ffered nce yur participants have a sense that yu understand where they are nw and their future gals. Educate with benefits nt features. Benefits make peple take actin. Health drink features : 100% f daily vitamins. Benefits: Makes yu feel energetic and healthy. Financial literacy features : Learn abut credit. Benefits: Save $10,000 ff yur car purchase. Subject differentiatin. Explain hw financial literacy is different than ther subjects. This will be material that impacts them every secnd f their lives and has direct relatin t their ability t live the lifestyles they desire. Especially imprtant when wrking with peple in schl. 95 Teaching Financial Literacy Sales Apprach, Phase 4 Take Actin If yu have dne the first steps right, mving them t actin will naturally fllw. Timing Lk fr heads ndding and facial expressins t time yur clse. Present actin steps during a time f high emtin. Getting cmmitment t take actin clsing them. Assume the clse. Nw that yu knw just saving and investing $100 per mnth can grw t ver a millin dllars, what will be the first steps yu will take? Ask fr their cmmitment. Alternative chice. Ben Franklin clse. Future persn. Nw that yu have this infrmatin and will be cntinuing t learn mre, hw d yu think yur life will be different in 5 years? What will yu d this week t make sure yu re successful at this?

117 Teaching Financial Literacy Sales Apprach, Phase 5 Feedback and Resurces Get feedback. What were areas f the presentatin the students liked and what didn t resnate with them? Hw can yu imprve the presentatin? Uncver bjectins t yur call t actin. Objectins. Answer bjectins with the feel, felt, fund methd. Maybe the student respnds with I have t have my Starbucks cffee." Yur respnse: "I understand hw yu feel and a lt f my clse friends felt the same way abut their mrning cffee befre. But when ne f them had saved enugh mney fr a dwn payment n a car just by cutting expensive cffee ut f his rutine, he was pumped. Fllw with a clse: S will yu start getting cffee at a cheaper place r start making it at hme? Recmmended reading. Brian Tracy, The Psychlgy f Selling Tm Hpkins, Hw t Master the Art f Selling 97 Teaching Financial Literacy Sales Educatin Prcess Framewrk Establish clear gals. Build rapprt with a cnversatinal tne. As ppsed t an interview style apprach. Ask prbing questins that help yu understand participants values, beliefs and mtivatrs. Als uncver the real prblem r issue they are trying t reslve. Offer slutins and fcus n the benefits. Clse and ask fr cmmitment t take actin. If they dn t accept the first clsing use the feel, felt, fund methd and clse again

118 Teaching Financial Literacy Neur-Linguistic Prgramming (NLP) NLP is fcused n creating change thrugh the tp influencers f ur human experience: neurlgy, language and prgramming. This thery describes the dynamics between ur mind and language and hw it impacts ur behavir. Many f the sales clses are designed arund NLP language patterns. Example: By nw yu knw that this class will make yur life mre rewarding, fun and yu ll be able t have experiences that thers nly dream f. Peple mve away frm pain and tward pleasure. Emphasize pain and pleasure pints thrughut yur presentatin. Benefits and cnsequences. NLP has been used by tp salespeple, presenters, educatrs and thers as a way t imprve retentin rates and mve peple t take psitive actin. 99 Teaching Financial Literacy NLP Pyramid Identity. Wh are yu and what is yur purpse? Values and Beliefs. What is imprtant t yu and what inspires yu at the cre f yur being? Capabilities. What skills d yu have nw and what skills d yu need t develp t live yur identity? Behavir. What daily actins can help lead yu t yur identity? Envirnment. Hw has yur envirnment affected yu and what changes in yur envirnment will help yu achieve yur desired utcme? *Gal is t mve participants up n the scale s the lessns we are teaching becme part f their identity

119 Teaching Financial Literacy Example: Identity. I am a financial literacy advcate and lving father that is n a lifelng missin t raise lving children and share financial wisdm with my cmmunity. Values and Beliefs. My belief in helping the less frtunate mves me t actin. Capabilities. I am a passinate expert in micr-lending but need t imprve my knwledge f ther alternatives. Behavir. I fcus n my daily interactins n helping the pr and ding advcacy wrk fr numerus rganizatins. Envirnment. I grew up pr and that prvides me daily mtivatin.. Identity. Values and Beliefs. Capabilities. Behavir. Envirnment. 101 Teaching Financial Literacy Sales (Educatin) Plan Create a sales apprach plan t teaching financial literacy. Address all areas including: Preparatin Listening & Rapprt List a few questins yu will ask that will help yu understand the values and beliefs. Slutins What slutins d yu ffer t the prblems yur clients face? Actin Create a clse that will get them t take actin n yur prpsed slutin. Feedback Hw will yu elicit feedback?

120 Student Experience 103 Student Experience Prgram Design Events and prmtins shuld be designed arund the target audience. Understand yur audience Talk with thse wh interact with targeted demgraphic n a regular basis. Cnduct surveys and questinnaires. Meet thse yu serve and cnduct cnversatinal fcus grups. Create a draft f the prgram and get feedback frm the target audience. Develp the prgram paying particular attentin t: Language, lk and feel, flw, usability & alignment with standards Schedule the prgram. Receive feedback frm yur audience abut: dates, times, length, etc

121 Student Experience Lk & Feel Cnsider the six senses : Visual Auditry Tuch Taste Smell Feeling 105 Student Experience Mney XLive Mney XLive is the premier financial literacy prgram in the cuntry. It has supprt frm ver frty tp celebrities and sprt stars, plus tday s httest entertainers. It s n secret: we all need t knw hw t handle ur mney. Mney impacts us every single day f ur lives frm ur clthes, t wh we are able t help ut, t the fun activities we are able t experience. In tday s age if yu dn t knw abut mney yu ll miss ut n a lt f the things yu want t d and yu may be stuck wrking fr a bss yu dn t like. Frtunately, MXL will give yu the real wrld mney tips yu need t knw t live the lifestyle yu want while yu re yung enugh t fully enjy life. Why nt pick up the mney skills yu need while seeing yur favrite celebrities and entertainers? MXL will kick ff yur financial educatin plus give yu a free 16 week curse t get yur mney right. It des take sme effrt, but the basics f mney is a lt easier that mst high schl classes. The gd news is that when yu start yung yu have a huge advantage. S d yurself a favr and learn abut mney nw. Be the First t Knw! Cmplete the infrmatin belw and keep up-t-date with the MXL tur schedule

122 Veterans Event Our Veterans Event has tw gals: t give ur veterans tangible financial educatin, while raising awareness fr their causes. Cmbining cmplimentary classes with awards events that garner full media cverage helps ur vets feel gd abut getting key mney skills. Timing the award ceremny right befre July 4 attracts the media at a time when they re interested in cvering veteran-related stries. Presenting the awards in frnt f camera crews adds emtin, energy, and excitement t the event. The award ceremny becmes a psitive reminder f the financial educatin experience. At the same time that the veterans gain financial knwledge, we take the pprtunity t build awareness fr veterans issues like PTSD. Sme vets can reach a negative state arund July 4. Fr this event we met with psychlgists t make sure we were sensitive t any traumas they re ging thrugh, and tailred the presentatin t be especially effective fr them. We believe in cllabratin, and the veterans event is a gd example we partnered with a nnprfit that prvided the venue and invited the veterans t attend. It s a win-win-win all arund: everybdy feels rewarded. 107 Student Experience Activity: Event Design Create an event that will cnnect with yur target audience. Break up int equal size grups and design an event that has a lk and feel appealing t yur target audience. Keep csts under $1,000. N need t keep track f mney just use this figure as a rugh guide. Chse yur target audience: kids, teens r adults. Present yur event t the grup

123 Student Experience Dreams & Lifestyle Activities These activities are excellent fr building rapprt and learning what will drive the students t pick up financial literacy lessns. This activity is included in every age curriculum! Students relate mney t the ability t live a desired lifestyle thrugh these activities. They als gain an understanding f hw t plan fr the successful accmplishment f their gals. These activities are perfect fr learning abut students using the NLP methd. Be sure t prbe deeper int their answers and drive them up the NLP pyramid t understand their values, beliefs and get a better sense f their identity. Refer t what yu learn cnstantly thrughut the shw. Take detailed ntes n students dreams, gals and aspiratins. Refer t them ften thrughut the delivery f the remaining cursewrk. Examples f dream and lifestyle intrductins. 109 Student Experience Language & Tne The language and tne yu use has a majr impact n retentin rates. Chse a tne acceptable t yur target audience. Change tne within presentatins. Practice this ver time and pay attentin t the audience s reactin. Get t a pint where yu can cnfidently take students n an emtinal rllercaster. Language game. Financial respnsibility,financial security Learn abut mney, pick up mney skills Mney games, mney activities Financially literate, financial educatin, financial capability

124 Student Experience Mtivate Engage Educate Mve t Actin 111 Student Experience (Mtivate) Mtivate - Hk Why: With the subject f mney we have cmpelling whys and yuth f all ages enjy learning when there are strng reasns fr them t d s. Be sure als t let the class knw why yu are teaching this subject; it helps build rapprt and a relatinship with the class. Lifestyle: Mney is just paper; it is the lifestyle that truly mtivates us t learn abut mney. Discver the lifestyle gals f yur class and shw them hw mney management skills will help them reach thse gals. Fcus yur prgram n lifestyle advantages that mney skills can give yur participants. Benefits: Fcus n benefits thrughut yur presentatin and ask questins that get students t answer what the benefits are. Fr example, gd credit will save yu ver ten thusand dllars n a car purchase what wuld yu like t d with the mney yu save? Benefits are what advertisers use t sell us their prducts and what yu can use t sell the message f financial literacy

125 Student Experience (Mtivate) Mtivate - Hk Real: Peple knw (especially tday s yuth) whether yu re being real with them r nt. Open up, be vulnerable and share yurself with the class. Being real builds trust and when the participants trust yu they learn mre effectively. Relate: Mst f us can relate t many f the experiences and feelings yur participants are ging thrugh. Keep an empathetic ear pen and reflect back t the age f the grups that yu are talking t in rder t understand where they re at. Stryline: Develp a stryline that develps thrugh the class perid. This can be an educatinal lessn r a stry that prgresses alng the lessns. Mdel a televisin script and yu will gain students interest. Opener: Let yur audience knw frm the utset that this isn t the typical bring class they are used t. Peple have been cnditined that learning is hard and bring. Creating a strng pener lets them knw this class is different. 113 Student Experience (Mtivate) Mtivate - Create Emtinal Respnse Emtin: Rebelliusness, embarrassment, hpe, desire and many mre emtins prvide pwerful leverage fr ur message f financial literacy. In yur presentatin, get the class t respnd emtinally and guide thse emtins in the directin that will help them the mst. Encuragement: With financial disaster stries making the frnt page f the news regularly, it is imprtant t inspire students with hpe and the belief that they can achieve the level f financial status they desire thrugh cntinued educatin. Envisin: Leverage psitive and negative utcmes f the future in an encuraging way. Because yu knw this yu will be able t avid. Find ut their dreams, encurage them and share practical tips n hw they can achieve their wn persnal gals. Inspiratin: In rder t inspire yu first need t uncver what mtivates them. Everyne is different s get t knw the demgraphic yu are teaching and ask the students questins. Pay attentin and really listen t what they are sharing

126 Student Experience (Mtivate) Activity: Mtivatin Create a mtivatin plan fr yur presentatin. Include thse elements just discussed and cncrete examples f hw yu will use them during a presentatin. 115 Student Experience (Engage) Engage Interact: Interactin is an imprtant part f keeping the class engaged plus it helps us t understand the class better. We can interact with students thrugh: activities, questins, participatin, pinins, feedback, surveys and sharing. Mve: Remember many f yur students are in their seats fr 6 hurs ut f the day. Get them t mve, breathe deep and d smething different than the ther thusands f classes they will sit thrugh. Entertain: Yu dn t have t juggle r sing t entertain. Entertaining can start with smething as simple as mving arund the rm, using different pitches f yur vice and pulling ut sme jkes, music r party tricks t keep the class n their tes. Flexible: Althugh it is part f an educatr s jb t direct the class, be sure t remain flexible and wrk with the class. Stay fcused n the gals yu set but als be able t g with the flw f the participants. Prps: Tday we have a wide assrtment f tls that will help t break up the class sessin. Yu have vides, music, handuts, games and a lt mre s make the class interesting

127 Student Experience (Engage) Activity: Engage Create an engagement plan fr yur presentatin. Include thse elements just discussed and cncrete examples f hw yu will use them during a presentatin. 117 Student Experience (Educate) Educate Practical: Fcus yur instructin n the practical applicatin f the subjects rather than thery, histry and definitins and ther less usable infrmatin. They can pick up thery ver time; s initially make sure they pick up real-wrld applicatins. Stry: Stries are an excellent way t deliver cntent and make the learning prcess fun. Sharing persnal stries helps yu truly cnnect with the class and relate t them n a memrable level. If yu re nt cmfrtable sharing yur wn stries, third-party stries are great as well. Cntent: Use quality curriculum that relates well with yur audience. Make sure the cntent yu share is relevant, up-t-date and smething the class can relate t. Times are changing faster than ever befre s always seek ut up-t-date stries and tpics that yur students can relate t. Knwledge: Have a gd grasp f the tpics yu are teaching and if yu dn t knw the answer just let them knw. We dn t have t have all the answers but we always strive t learn and grw

128 Student Experience (Educate) Educate Prepare: Befre entering the classrm always be prepared and practice yur presentatin. Besides understanding the lessns, be sure t fcus n hw yu can mtivate, educate, engage and mve the class t actin. Relax: Yu are there with gd intentins t give the participants infrmatin that will change their lives. Breathe, have fun and understand the presentatin des nt have t be perfect. Time: Manage yur time t the best f yur ability and realize that the curriculum is a guide t help yu get thrugh the lessns. Hwever, if the students are really interested in a tpic yu have the freedm t spend added time n that subject and eliminate ther lessns. 119 Student Experience (Educate) Activity: Educate Create an educatin plan fr yur presentatin. Include thse elements just discussed and cncrete examples f hw yu will use them during a presentatin

129 Student Experience (Mve t Actin) Mve t Actin Actin Steps: Prvide clear actin steps fr the students t fllw. Cmmitment: Gain the cmmitment f the students t take nging actin. Resurces: Prvide cntinuing educatin resurces t leverage the students mtivatin. Accuntability: Include an accuntability cmpnent t the financial educatin prgram. Clsing: Use clsing techniques t gain the participants cmmitment. 121 Student Experience (Mve t Actin) Activity: Mve t Actin Create a mve t actin plan fr yur presentatin. Include thse elements just discussed and cncrete examples f hw yu will use them during a presentatin

130 Student Experience Implement the Suggestins While Finding Yur Authentic Vice Discver yur persnal teaching style. Push bundaries and try new things. Seek mtivatin fr new ideas frm music, media, shws and ther entertainment that yur target audience is int. Clsely mnitr yur impact and make adjustments when necessary. Sn these guidelines will becme secnd nature and yur authentic vice and passin fr sharing the message f financial literacy will shine thrugh! 123 Student Experience Addressing Distractins Change smething. Have class mve arund, shw vide, play game. Emtins, passin and cmmitment. Share with them why yu are there, hw yu want t help and yur persnal stries. Lud nises. Psitining where yu stand. Cmmands. Eyes right here. Listen t this nw. Targeting main participant that is taking class ff track. Teacher assistance. Set up prtcl t address a class that gets ut f cntrl

131 Teaching Financial Literacy (Hlistic Apprach) 125 Benefits Teaching Financial Literacy (Hlistic Apprach) Engenders participatin frm thse wh supprt the targeted clients learning and develpment. Creates sustainable prgrams that builds supprt fr nging financial educatin utreach effrts. Increase the reach and frequency f the message, while building cmmunity supprt and empwering participants with practical financial educatin lessns. Allws hst rganizatins t cnnect with varius demgraphics that can help prmte their initiatives. Imprve results, test scres and effectiveness f financial literacy initiatives. Examples: When teaching kids, prvide material fr parents. When teaching adults, als prvide material fr spuses. When teaching senirs, als prvide material fr their kids. Hlistic (hh-lis-tik): Emphasizing the functinal relatin between parts and the whle. The imprtance f the whle and the interdependence f its parts

132 Teaching Financial Literacy (Hlistic Apprach) Where did yu learn abut mney? Schl? Since Hme Ecnmics has been eliminated frm the cursewrk, nly a small percentage f students receive any financial educatin in schl. Parents? Studies shw that mst yuth (69%) tday still rely n their parents as their leading surce f financial knwledge. As widely reprted, the majrity f peple are in financial truble. Cnsequently, bad habits are being passed dwn frm generatin t generatin. The Hard Way? Mst peple learn mney lessns like many f us have frm the schl f hard kncks. I wish smene had taught me this when I was grwing up is the mst cmmn phrase we hear. Peers? Peple ask their friends, the persn in the adjining cubicle at wrk, and anyne they think knws abut mney. Salespeple? Many peple get their nly financial advice frm peple wh earn a cmmissin. Althugh mst mrtgage brkers, realtrs, and financial advisrs may try t give the best advice pssible, there is ften a cnflict f interest. 127 Teaching Financial Literacy (Hlistic Apprach) The Ideal Situatin fr Kids: Parents -Primary Respnsibility Individual -Secndary Respnsibility Schls -Supprt Rle Cmmunity -Supprt Rle

133 Teaching Financial Literacy (Hlistic Apprach) The Ideal Situatin fr Teens & Yung Adults: Individual -Primary Respnsibility Parents -Secndary Respnsibility Schls -Supprt Rle Cmmunity -Supprt Rle 129 Teaching Financial Literacy (Hlistic Apprach)

134 Teaching Financial Literacy (Hlistic Apprach) The Ideal Situatin fr Adults: Individual -Primary Respnsibility Family -Secndary Respnsibility Friends -Supprt Rle Cmmunity -Supprt Rle 131 Teaching Financial Literacy (Hlistic Apprach) Peple Want t Learn Abut Mney The Teens & Mney 2006 Survey Findings cnducted by StrategyOne n behalf f Schwab and the Bys & Girls Club f America: 92% agree that it is imprtant t have gd mney habits t be successful in life. 93% say that it is imprtant t knw hw t manage mney t live within ne s means. 89% agree that saving and investing can help ne achieve freedm in life. Half the teens (50%) expressed an interest in learning mre abut managing mney and 76% say that they want t learn the basics f finance nw because it will help them make better financial decisins dwn the rad annual back-t-schl survey frm Capital One As peple get lder the less interested they are in learning abut mney. Why?

135 Cnclusin Thank yu The American Dream is that dream f a land in which life shuld be better and richer and fuller fr everyne, with pprtunity fr each accrding t ability r achievement. ~James Truslw Adams Financial educatin is the key t reviving the American Dream. Yu are an ambassadr f financial literacy and we appreciate yur dedicatin t sharing this with thers. Because f yu there will be many peple wh live richer and fuller lives. Nw, hw will yu share this infrmatin with thers? Cntact Us: r