Teach the Revised Missouri Personal Finance Standards with Econ Lowdown

Teach the Revised Missouri Personal
Finance Standards with Econ Lowdown

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Agenda

• Review Revised Missouri Personal Finance Standards

• Identify Classroom Resources to Teach the Revised
  Standards

• Share Tips for Utilizing These Resources in your Classroom

• Answer Questions

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All of the materials presented today can be found at
www.stlouisfed.org/education

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Revised Missouri Personal Finance
Standards go into effect 2018-19 school year

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https://www.stlouisfed.org/education/

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https://www.econlowdown.org/

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Click on My Classrooms-

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Making Personal
  Finance Decisions

         20 Lessons

     10 themed units

      Active learning

Sound economic reasoning

 www.stlouisfed.org/education/making-personal-finance-decisions-curriculum-unit   32

Making Personal
Finance Decisions

           2017 Gold Award
        NAEE Curriculum Awards

             2017 Excellence in
        Financial Education Award
           from the Institute for
             Financial Literacy

www.stlouisfed.org/education/making-personal-finance-decisions-curriculum-unit   33

Making Personal Finance Decisions
1. Thinking Economically
    A. The Wealth Game – Factors for Success
    B. Making Choices and Identifying Costs
2. Planning and Tracking
     A. The Inventory Game – Net Worth and Cash Flow
     B. Meeting Financial Goals – Rate of Return
3. Earning Income
     A. Investing in Yourself
     B. Entrepreneurship – Working for Yourself
4. Paying Taxes
     A. What Are Taxes For?
     B. Understanding Taxes
5. Budgeting
     A. Making a Budget – It Is All Spending!
     B. Budget Trade-Offs – A Penny Here and a Penny There

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Making Personal Finance Decisions
6. Saving
     A. Time Preference – Why Is It Hard to Save
     B. Simple and Compound Interest – Why It Is Great to Save
7. Spending
     A. The Spending Decision – Colas and Hot Dogs
     B. Big Spenders
8. Investing
     A. Managing Risk – Time and Diversification
     B. Evaluating Investment Options
9. Borrowing
     A. The Three C’s of Credit
     B. Evaluating the Benefits and Costs of Credit
10. Protecting
     A. The Three D’s of Identity Theft
     B. Is Insurance Worth Buying

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Key Features:
• 20 individual lessons
• Compelling Questions
• Assessment for each lesson
• Aligned with Standards
• Professional editing and layout
• PowerPoint slides
• FREE!

Lesson 5B: Budget Trade-Offs—A Penny Here and a Penny There

   Compelling Question: Why must consumers make trade-offs
     when allocating their income among different spending
                             options?

Students participate in an activity that illustrates that budgeting is really an
allocation problem. They must decide how to allocate limited income among
many alternatives, which requires trade-offs. For the activity, students are given
pennies representing monthly personal income to allocate for their living
expenses—to purchase goods and services for housing, food, transportation,
and so on.

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20 Pennies ($2,000 / month)

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18 Pennies ($1,800 / month)

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Lesson 9A: The Three C’s of Credit

   Compelling Question: How do lenders evaluate the risk when
                         making loans?

Students play the role of credit providers and assess the credit worthiness of an
individual with a loan request and randomly selected borrower characteristics.
Students classify those characteristics based on the three C’s of credit (capacity,
character, and collateral), assess the riskiness of lending to that individual based
on these characteristics, and then decide whether or not to approve or deny the
loan request.

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Lesson 9A: The Three C’s of Credit

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Students randomly draw 12 borrower characteristics.

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Would you approve or deny
this individual’s loan request?

Explain your decision.

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Making Personal
  Finance Decisions

         20 Lessons

      Active learning

             FREE!

               2017 Excellence in
          Financial Education Award
             from the Institute for
               Financial Literacy

www.stlouisfed.org/education/making-personal-finance-decisions-curriculum-unit

All of the materials presented today can be found at
www.stlouisfed.org/education

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Questions?

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