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Course 1: Personal Finance ← Back to All Pages

Mr Lord. M.Ed.

Welcome to Personal Finance:

Day One:  

  1. Class List

  2. Logging in to Network
  3. Saving to Network 
  4. Acceptable Use Policy
  5. Fire Alarm Rules
  6. Plaigarism Rules.

Middle States Goals:
Reading

Students will improve their performance on Standards 1.1, 1.2, and 1.3: Comprehension, Reading Skills, and Reading, Analyzing and Interpreting literature.

Math
Students will improve their performance on Standard 2.5: Mathmetical Reasoning and Communication.

Building Climate Goal
Improve the sense of ownership of school climate and school pride (administrators, teachers, support staff, students and parents), regarding self, other people, property, school and community.
Student Examples:

Useful Personal Finance Online Resources:

http://www.yourcreditadvisor.com/blog/2006/10/102_personal_fi.html
http://www.sbtv.com/
http://www.bls.gov/oes/current/oes_nat.htm
http://cob.bloomu.edu/jolivo/NBEA%20Cross%2DReferenced/
http://cob.bloomu.edu/jolivo/links.html
http://www.jumpstartcoalition.org/
http://www.wsjclassroomedition.com/teen/index.html
http://www.ja.org/about/about_res_links_ed.shtml      
http://www.ja.org/about/about_res_links_high.shtml     
http://www.ny.frb.org/education/highschool.html
http://www.sec.gov/investor/students/tips.htm
http://www.bankrate.com/brm/news/special/20000816.asp
http://www.bankrate.com/brm/news/special/20000816.asp
http://www.moneyopolis.com/new/home.asp
http://www.pueblo.gsa.gov/
http://www.ja.org/programs/programs_high_perfin_obj.shtml
http://money.cnn.com/
http://www.mymoney.gov/
http://www.federalreserveeducation.org/FRED/
http://www.consumer-action.org/English/library/money_mgt/2003_teens_money/index.php
http://www.personalfinance.com/
http://www.bls.gov/ces/home.htm
http://www.dciu.org/vod.asp
http://www.globalissues.org/TradeRelated/Consumption/Rise.asp
http://www.practicalmoneyskills.com/index.php
http://www.bea.doc.gov/
http://www.celticclothing.com/mm5/merchant.mvc
http://www.handsonbanking.org/

 

Why Study Personal Finance?

Why Study Personal Finance?

 

Money is Everywhere
Poor Public Knowledge Read "Keying in Article".
Career Paths. http://www.careers-in-finance.com/
Education Pays: http://www.bls.gov/emp/edupays.pdf

What will we study?

Financial Planning
Setting Goals
Budgeting
Managing Debt - Credit Cards, Student Loans etc.
Buying a Car
Buying a house
Saving and Investing.

Cover Online Resources
Create Personal Finance Folder...Create word doc contaning table (3 column 20 rows).
Everyday at start of class insert income and expenses.

Intro Jumpstart Quiz
Jumpstart Quiz (Photocopy)
Peer Grading and Discussion.

Inquirer Quiz (Photocopy)
Peer Grading and Further Discussion.

http://www.bls.gov/emp/edupays.pdf


 

 

 

Dreams - Goals + Plans.

Bank Savings:
Bank Checking: Opening a bank account.
FDIC insured deposits:
Check books:
Writing Checks: Routing numbers and account numbers
Account Balance:

Dreams:

Its good to have dreams...it can be fun and positive, but don't be a day dreamer.

Goals:
Goals make dreams become a reality:

Written

Reasonable / Attainable

Measurable

Associated Time Frame 

  • Short Term        1 year or less

  • Medium Term    1 to 5 years

  • Long Term         5 years +

Create and Activate Financial Plans
Monitor, Evaluate and Revise Plans

Plans will help us achieve our goals.
Medium Term Goal - Buy a Car.  Plan - Get a job and save.
Medium Term Goal - Go to college. Plan - Concentrate on Academics
Employment Statistics
http://www.courierjournal.com/education/pdf/gearup_200412_december.pdf
Read the above article and answer questions on the "Gear Up" worksheet.

The business and financial environment is constantly changing so our plans need to be monitored and maybe revised to compensate for changing economic and personal circumstances.
EXAMPLES?

  • Net Worth Report
    What is a net worth report?
    Why create a net worth report?
    Assets
    Liabilities

  • Students will create a personal Net Worth Report
    Students will complete a practice Net Worth Report for "a graduate".
    Net Worth Quiz.

  • Video Friday - Oprah Winfrey Personal Finance Episode.

 

 


 

 

Banking and Budgeting

Banking:
Costs associated with banking. Bounced check fees, checking acct fees, new checks.
Writing Checks
Check register
Check "lag" time.
Online Banking
Different types of accounts
Opening accounts - different bank and credit union options.

Opening a bank account Part One.
Opening a bank account Part Two.
Another banking video
Another banking video.

Budgeting

What is a budget ?
Why budget? 

Go to the my homepage: www.Schoorack.com/lord
Complete the "Budgeting Essay" worksheet using the following website as a guide.  http://www.tuliptreepress.com/


Watch the following video - "Saving here and Now" in the "Economic Education" category at this website:
http://www.dciu.org/vod.asp
Define Discretionary and Non-Discretionary expenses and how we can balance our budget. That is increase income or decrease expenses.

Complete the "Budgeting Exercise" worksheet for a "graduate student."

Complete March 2005 Wall Street Journal Classroom Edition reading, and play "National Budget/Deficit" Game from http://www.budgetsim.org/nbs/

Quiz on everything learned so far.


 

 

 

Financing a Car.

Hello everyone:  Today we are going to start by completing the Budgeting Quiz. Buying a Car:
Have a look at:
www.Edmonds.com - pick a car.

Everyone in class will buy a car at some point in their lives, so we want to make sure we don't pay too much. Because of the way the car industry works two people could buy the exact same car on the same day and pay different prices; sometimes people can pay between $2,500 and $10,000 too much. To get us started use this website: http://www.pueblo.gsa.gov/cic_text/cars/newcar/newcar.htm
Answer the following 5 questions, remember to include the question in your answer.

  1. Give one good reason why we should plan to negotiate on price when buying a new or used car.
  2. The guy selling you the car is called a "car dealer". He might quote you an "invoice price" from the manufacturer (Ford, BMW, Toyota etc), is that the real price the dealer pays for the car? Explain.
  3. What is the difference between the base price and the MSRP?
  4. What does ADM and ADP stand for?
  5. When financing a car, getting the best deal ultimately depends on three factors, what are they?
  6. What does APR stand for?

When people buy cars they usually do not have $20, 000 or $30,000 to pay there and then .So we are allowed to put down 20% or 30% and "finance" the rest over a 2 to 5 year period. This means we make monthly payments until the price of the car is paid off. The dealers charge us an interest rate on the loan (APR) as a charge for lending us money. In effect you are buying a car and a financial product (the loan - car financing). 
Now read the following article and answer the following questions:
Vehicle Financing:
http://www.pueblo.gsa.gov/cic_text/cars/v-finance/v-finance.htm

  1. Name two places, other than the car dealer, where we can get a loan to buy the car.
  2. Give two reasons why we might get the loan from the car dealers finance office.
  3. Name two things that effect the APR you will be charged.
3 Years (36 Months)
5 Years (60 Months)

Amount Financed

$20,000

$20,000

Contract Rate (APR)

8.00%

8.00%

Finance Charges

Monthly Payment Amount

Total Payments

Down Payment

$5,000

$5,000


The APR can greatly effect the final price you pay for your car. The lower the APR the better.  That is one of the reasons we want to have good credit because good credit can result in lower APR on loans.

Complete the "Car Financing" worksheet:

From completing the work sheet you will hopefully have seen that the APR and the length of time you take to repay the loan can greatly effect the price you end up actually paying for a car. Even though the "sale" price is marked at $15,000 you could pay a lot more if you do not shop around for a loan at the lowest APR you can possibly find. Banks, credit unions etc are good places to look for a low rate.

Read: http://money.cnn.com/pf/101/lessons/17/
Complete the "Buying a Car" worksheet.

Other Considerations / Expenses:
Gas, Maintenance (Tyres, Oil), Registration, Inspection.

Car Financing Quiz


Insurance Needs:

Insurance:

Car Insurance:
Go To: http://money.cnn.com/pf/101/lessons/22/index.html
Complete the buying "Car Insurance" worksheet.
Read the following article to learn more about discounts.
http://www.pueblo.gsa.gov/cic_text/cars/autoinsu/autoinsu.htm

Life Insurance: 
Term and Whole
Go to this website: http://money.cnn.com/pf/101/lessons/20/
Complete the "Life Insurance" worksheet.

Health Insurance:
Read this article: http://money.cnn.com/pf/101/lessons/16/index.html
Read the February 2006 Health Insurance article in the Wall Street Journal classroom edition (page 6).
Students will be given a Health Insurance "Pop Quiz" on Tuesday.

Home Owners / Renters Insurance:
http://money.cnn.com/pf/101/lessons/19/index.html

Buying a Home:

Buying a House:

Buying a House:

Read through the pages on this link today.  It's all about buying a house which is probably the most expensive thing most of us will do in life.
http://money.cnn.com/pf/101/lessons/8/index.html

Working in groups of two students are to complete the "Mortgages" worksheet.

Class discussion of Mr. Lord's strategies.

Buying a Home Quiz.

Credit Card Debt:

Managing Debt:

Credit Cards:

Watch this video in the "Economic Education" section:
http://dciu.org
Frontline Video:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/view/
Read the following article with students and discuss:
http://www.cnn.com/books/beginnings/9806/overspent.americans.cnn

http://www.cardweb.com/cardtrak/pastissues/april2004.html

http://money.cnn.com/pf/101/lessons/9/
Answer "Consumer Debt in US" worksheet.

Car Loan
Student Loan
Mortgage

Taxes.

Taxes:

Read the following article:
http://money.cnn.com/pf/101/lessons/18/


Investing:

Investing:

Discuss Lending and Ownership Investments:

Read the "Power of Investing" article and complete the worksheet.

Distribute and discuss the Risk and Return handout.

Discuss and distribute the "Rule of 72" worksheet.

Go to: http://finance.yahoo.com/lookup and fill in the accompanying "Stock Evaluation" form.

Buy the stocks at: http://www.commercewowzone.com/teens/

Final Exam

Final Exam: