presents in tere st MONEY MOMENTS 2017...4 Ins and Outs of Taxes 5 What’s the Right Bank Product...

SMART CHOICES DEBIT ACCOUNT i n t e r e s t

interest M O N E Y S A V V Y i n s u r a n c e f i n a n c i a l mistakes s m a r t c h o i c e sm o n e y m a n a g e m e n t SAVINGS LIVE WITHIN YOUR MEANS responsible borrowing

EMERGENCY F U N D money doesn’t grow on trees P A Y C H E C K f r a u d a l e r t presents

MONEY MOMENTS 2017

tuition c o l l e g e d e b t i n s u r a n c ef i n a n c i a l m i s t a k e s o f c o l l e g e s t u d e n t sm o n e y m a n a g e m e n t SAVINGSLIVE WITHIN YOUR MEANS l i ve l ike a s tudent

m i n i m i z e s t u d e n t l o a n s PAYCHECKCredit Score scho la rsh ipstu i t ion interest rate f raud a ler t

f inancia l f i tness Bargain Shoppers t u d e n t d i s c o u n t LOW-BUDGET LIVINGEMERGENCY F U N D money doesn’t grow on trees

f r a u d a l e r t D o l l a r s a n d C e n t sP A Y C H E C K i n s u r a n c e tui t ionSAVINGS l o w - b u d g e t l i v i n g fraud alertf i n a n c i a l m istakes f inancia l f i tness interest rateCredi t Score Low-Budget Livingcollege money management S AV I N G SEMERGENCY FUNDSscholarships money doesn’t grow on trees


f r a u d a l e r t D o l l a r s a n d C e n t sSAVINGS l o w - b u d g e t l i v i n g fraud alertf i n a n c i a l m istakes f inancia l f i tness interest rateCredi t Score Low-Budget Livingcollege money management S AV I N G SEMERGENCY FUND s c h o l a r s h i p smoney doesn’t grow on trees

2 | Money Moments 2017 MoneyMoments.com

Table of Contents3 Money - That’s What I

Want

4 Ins and Outs of Taxes

5 What’s the Right Bank Product for Me?

6 Tracking Every Cent

7 Saving vs. Investing

8 Retirement = Saving AND Investing

9 Using Credit Responsibly

10 Pros and Cons of Using Credit Cards to Shop Online

11 Age Old Crimes, Modern Day Methods

12 To Buy or to Rent? That is the Question

13 Don’t Lose It All!

14 You Win Some, You Lose Some!

15 Throwing in the Towel!

16 So Many Ways to Give!

Content FacilitatorOklahoma Council on Economic Education

Publishing CoordinatorBailey K. Huntsman - Newspapers in Education

Graphic DesignerRaymond John - The Oklahoman

Money Moments 2017focuses on teaching the 14 Oklahoma Standards pertaining to Personal Financial Literacy. Designed for students in 7th-12th grades, after completing this workbook and the accompanying lesson plans students should have a good understanding of the following:

• Earning an income

• Taxes

• Banking and financial services

• Managing a bank account

• Savings and investing

• Retirement planning

• Borrowing money

• Online shopping & credit cards

• Fraud and identity theft

• Renting vs. buying

• Insurance

• Gambling

• Bankruptcy

• Charitable giving

In this workbook, you will find references to worksheets that can be downloaded at http://bit.ly/2ybgNcZ

Money Moments is a registered trademark of MidFirst Bank and is used by permission.







Money Moments 2017 | 3MoneyMoments.com

Money - That’s What I WantJason Warner, Oklahoma Council on Economic EducationOklahoma PFL Standard 1We have learned that different jobs and careers have different pay and benefits. We also know that the difference in pay and benefits often is affected by the education/training or skills and certifications the career or job requires. However, we have to take into consideration how a career or job’s pay and benefits affects our standard of living, or in other words, how well or comfortable we can live. Our standard of living is dictated by our income and how well we manage that income through the use of a budget and wise spending and saving. The following activity will give you an opportunity to rate the standard of living for each of the jobs or career paths that you research.

Using your cell phones or other technology, research 6 different occupational paths and fill out the chart accordingly. Make sure to base your research on local/regional information.

OccupationRequired Education/

Training Skills/ Certification

Pay/IncomeBenefits Job or Career

Standard of Living1-2-3-4-5Low-High








Ins and Outs of TaxesGreg Oppel, Edmond Public SchoolsOklahoma PFL Standard 2

Which theory do you identify with more? Why? _____________________________________________________________________________________________________________________________________________________

Tax Theories T ChartReview the "ability to pay" and "benefits received" tax theories. Discuss pros and cons of each including who would benefit most from the theory and who would benefit the least, and fill in the chart.

Voluntary ComplianceReview your definition of “voluntary compliance” and explain how voluntary compliance is related to each concept:

Ability to Pay Regressive TaxesProgressive TaxesBenefits Received

Sources• Personal Financial Literacy Passport • STUDENT MODULE 2.1 TAXES

a. Which kind of tax is federal income tax? ___________________________________________________________________________________________b. And, what kind of tax is Oklahoma state income tax? ___________________________________________________________________________________c. What kind of taxes are county and municipal [city] sales taxes? ___________________________________________________________________________d. Lastly, how can county and municipality taxes differ from each other? _______________________________________________________________________

Tax System T-ChartReview the definitions of progressive taxes versus regressive taxes. Discuss pros and cons of each including who benefits most and who benefits least, and fill in the chart.

Government Income and ServicesResearch your assigned topic and record notes on your classmates’ work, as well. Create a visual display of your government level’s income and benefits/services in pie graph form.

Regressive Taxes

Pros: Pros:

Progressive Taxes

Cons: Cons:

City/Municipal

County

State

Federal

Pros: Pros:

Cons: Cons:

"Ability to Pay" "Benefits Received"








What’s the Right Bank Product for Me?Dr. Emily Schwartz, MidFirst BankOklahoma PFL Standard 3

Checking Account - A bank account designed to make your money easily accessible through ATMs, debit cards, etc.Credit card - A way to borrow money to make purchases that you then pay back at the end of the statement period. Paying a credit card bill on time helps build positive credit history. ATM - An automated teller machine dispenses cash from your bank account with the use of your debit card and a PIN (personal identification number). Savings Account - An account to build your savings and earn interest on money you don't need to use every day. Loan - Borrowed money that is paid back with interest.

Put students into small groups1Students take turns reading aloud the following definitions of bank products2

4 Finally, have each group share their answers with the class and justify their choices

3 Next, students read about each customer in the chart below and decide which bank product would be best for them

Customer Product

Customer #1 - I’m out at dinner and I didn’t realize the restaurant only accepts cash. I need to get some money out of my bank account and I’m not near my bank.

Customer #2 - I want to buy a car. I have a little bit of cash saved up but I’ll need to borrow the rest and pay it back monthly.

Customer #3 - I want to be prepared for emergencies. I want to set aside 10 percent of each paycheck and I hope I won’t have to spend it.

Customer #4 - I got my first job and I need a place to put money I plan to use to pay my bills and pay for everyday expenses.

Customer #5 - When I tried to rent an apartment, my application was denied because I didn’t have any credit history. I want to build credit and I have the self-discipline to not spend money I don’t have.








$

¢¢

¢

Tracking Every CentTodd Gragg, Mid-Del SchoolsOklahoma PFL Standard 4

1. Which transaction might be a duplicate? And what should be the new balance be? ___________________________________________ _______________________________________________________________________________________________________________

2. Which transaction(s) have not cleared the bank yet? ___________________________________________________________________ _______________________________________________________________________________________________________________

3. What date was the transaction that was a bank transfer? ________________________________________________________________ _______________________________________________________________________________________________________________

4. Which transaction was an automatic payment? ________________________________________________________________________ _______________________________________________________________________________________________________________

5. You check your online account and it says you have $589.53, but your register says $514.53. Why is it different? __________________ ______________________________________________________________________________________________________________

6. Based on the above answer could you afford to pay for a new iPad Pro? ____________________________________________________ _______________________________________________________________________________________________________________

Number or Code Date

Transaction Description

Payment or Withdrawal Fee

Deposit or Credit Balance $

DEP 1/1/17 Opening Deposit $750 $750

DC 1/3/17 Lunch $7 50 $742 50

1001 1/3/17 Oklahoma High School $25 $717 50

DC 1/5/17 Gas $2 97 $714 53

T 1/6/17 Savings $125 $589 53

DEP 1/6/17 Allowance $100 $689 53

AP 1/8/17 Cell Bill $50 $639 53

1002 1/10/17 College Application Fee $25 $614 53

ATM 1/11/17 Cash $50 $564 53

ATM 1/11/17 Cash $50 $514 53








Saving and Investing Vocabulary

Saving: ___________________________________________________________________________

___________________________________________________________________________________________

___________________________________________________________________________________________

Investing: __________________________________________________________________________________

___________________________________________________________________________________________

Let's make a short-term savings goal, a medium-term savings goal, and a long-term savings goal. Then determine a cost to meet the goal, a weekly or monthly savings goal, an estimate of when the savings goal will be obtained, and lastly, where/how you will save your money (e.g., savings account, piggy bank, etc.)

Savings Term Cost of Goal Saving Per Week/Month

Weeks/MonthsGoal Achieved

Savings Method

Short-Term(0-3 Years)

Birthday Gift for Best Friend

$35 $7 5 Weeks Memory Box in my room

Short-Term(0-3 Years)

Medium-Term(3-10 Years)

Long-Term(10-More Years)

Saving vs. InvestingJason Warner, Oklahoma Council on Economic EducationOklahoma PFL Standard 5







8 | Money Moments 2017 MoneyMoments.com8 | Money Moments 2017 MoneyMoments.com

For the sake of today's lesson, we are going to estimate how long we can expect to live, in order to determine how many years we expect to be retired and how much money we will need. Access the internet and find the Social Security Administration's life expectancy calculator: https://www.ssa.gov/OACT/population/longevity.html. Choose the longest applicable estimate of life expectancy. What do you think about your given life expectancy? Discuss factors that may change one's life expectancy: diet, exercise, family health history, etc.

Now that we have an estimate of how long we can expect to live, let's talk careers and salaries. Look up the average salary for your desired career. Be reasonable and local, as to create a realistic view of retirement. It's recommended that one save 10% of their salary for retirement.

Based on your desired career, calculate your yearly retirement contribution. Access midfirst.com/financial-resources/calculators/save-for-retirement. Complete the Retirement Age, Annual Income, Monthly Savings, and Life Expectancy fields from your research. Other assumptions: Current age: 21; Annual Salary Increase: 3%; Inflation Rate: 2%; Expected Rate of Return: 8% Review your Retirement Savings Summary. Are you surprised at the results? How have your thoughts about retirement changed?

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

________________________________________________________________________________________________

MONEY BINGO403B401KIRASocial SecurityBondInterestCompounding InterestInvesting

LiquidityMutual FundTax-DeferredInflationLife ExpectancyLifestyleCertificate of DepositContribution

Diversification

Distribution

Dividend

Rollover

Mutual Fund

Participant

Risk

Risk Tolerance

Retirement = Saving AND InvestingBeth Rempe, Mount St. Mary High SchoolOklahoma PFL Standard 6

Retirement “MONEY” Bingo ActivityWe are going to play a game to help us identify some of the retirement and investment lingo. Download the Retirement “Money” Bingo activity. Participants can use candy as bingo markers or use a pen or marker. Fill in your bingo squares with the given terms. When the game begins, call out M, O, N, E, or Y and a definition of one of the given terms. Make sure to review the terms and definitions when you have a winner. After the game, discuss the various forms of retirement investment options and how they differ from typical savings options. Why should we have multiple options in our retirement portfolio?








Using Credit ResponsiblyLee HartmanOklahoma PFL Standard 7INSTRUCTIONS: The following terms are found on a common Credit Card Disclosure Statement Form (download worksheet 7.1). It details the terms and conditions when opening a credit card account. Discuss the following terms, then answer the questions below.

Annual Fee: A fee some credit card companies charge for the use of their credit card.Annual Percentage Rate: The cost of the loan each year expressed as a percentage. ALL lenders are required by law to calculate the APR the same way.

Credit Limit: The maximum amount of money the lender is willing to loan an applicant. Finance Charge: The total cost of using credit; includes interest and applicable fees.Grace Period: The length of time that the lender charges no interest on

money borrowed if paying off your entire balance in full each month.Introductory Rate: Generally, a lower initial interest rate offered by a lender (such as a credit card company) that is usually offered for a short period of time. At the end of this introductory period, the introductory rate expires and an increased rate takes effect.

Loan Term: The length of time you have to pay off the loan. Remember, the longer the loan, the lower your monthly payment, the greater interest paid.Origination Fee: The charge for setting up the loan (usually associated with home loans)

Using the “How Long Will It Take to Pay Off a Credit Card” calculator at midfirst.com, calculate the following:

COMPARENow, compare the total amount of interest paid in Scenario 1 versus Scenario 2. Calculate the amount of money you would save by making monthly payments of $50 instead of $30.

__________________________________________________________________________________________________________________________

SCENARIO 1 - Making MINIMUM Payments SCENARIO 2 - Paying MORE than the MINIMUM Amount

Calculate the following if making $30 payments.

Total Interest Paid _______________

Months to Pay Off _______________

Calculate the following if making $50 payments.

Total Interest Paid _______________

Months to Pay Off _______________

Total Debt

$1,000

Total Debt

$1,000

Interest Rate

18.9%

Interest Rate

18.9%

Payment

$30.00

Payment

$50.00








Pros and Cons of Using Credit Cards to Shop OnlineTodd Gragg, Mid-Del SchoolsOklahoma PFL Standard 8

Based on cost alone, which items would you purchase online and which would you purchase at a brick and mortar store? ___________________________________________________________________________________________________________________________________________________

Are there other factors, besides cost, that you would consider in your decisions? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________

Brick & Mortar Purchases Item Store Price Related Fees Total Cost

1. ______________ $ ________ $ _________ $ _________

2. ______________ $ ________ $ _________ $ _________

3. ______________ $ ________ $ _________ $ _________

4. ______________ $ ________ $ _________ $ _________

5. ______________ $ ________ $ _________ $ _________

Online Purchases Online Price Related Fees Total Cost

$ ____________ $ _________ $ _________

$ ____________ $ _________ $ _________

$ ____________ $ _________ $ _________

$ ____________ $ _________ $ _________

$ ____________ $ _________ $ _________

INSTRUCTIONS:Choose 5 different items that you’re interested in purchasing. Using the internet and print sales ads, compare the purchases of the same 5 items both from a “brick and mortar” retailer and an online retailer.

ONLINE SHOPPING

CREDIT CARD & ONLINE SHOPPING VOCABULARY

Balance Transfer ____________________________

______________________________________________

______________________________________________

Brick & Mortar Store ________________________

______________________________________________

______________________________________________

Credit Card __________________________________

______________________________________________

______________________________________________

Credit Card Fees ____________________________

______________________________________________

______________________________________________

Credit Card Interest _________________________

______________________________________________

______________________________________________

Credit Card Rewards ________________________

______________________________________________

______________________________________________








Fraud: Age Old Crimes, Modern Day MethodsCarrie Hixon, Mustang Public SchoolsOklahoma PFL Standard 9

1. Do you think that consumer complaints are an accurate measurement of the frequencies of these crimes occurring? ____________________________________________________________________

2. What similarities do you see between the two years? ____________________________________________________________________

3. What differences do you see between the two years? ____________________________________________________________________

4. What do you think will be the top consumer complaint in 5 years? Why? ____________________________________________________________________

Choose a type of fraud or identity theft to research on your own. You may choose one listed on the FTC’s Consumer Complaint Charts or pick another that you have heard about either in class or in the news. Answer as many of the following questions about your topic as possible:

1. What is the name of the fraud or ID theft you are researching? ____________________________________________________________________

2. What is the definition? ____________________________________________________________________

3. How common is this type of fraud or ID theft? ____________________________________________________________________

4. Who generally perpetrates this and where are they located (domestic or foreign)? ____________________________________________________________________

5. What rights does the victim have? ____________________________________________________________________

6. What should you do if this type of fraud or ID theft happens to you? ____________________________________________________________________

7. How can becoming a victim of this crime be avoided? ____________________________________________________________________

K-W-L ChartIn the first column, write what you already know about fraud and ID theft; in the second column write what you want to know about fraud and ID theft; and in the third column, write what you learned about fraud and ID theft.

According to the Federal Trade Commission (FTC), in 2006, the top five consumer fraud complaints were:

Identity Theft - 36%Shop-at-home/Catalog Sales - 7%Prizes/Sweepstakes/Lotteries - 7%Internet Services and Computer Complaints - 6%Internet Auctions - 5%

Ten years later, in 2016, the top five consumer fraud complaints were:

Imposter Scams - 13%Identity Theft - 12%Prizes/Sweepstakes/Lotteries - 5%Shop-at-home/Catalog Sales - 4%Foreign Money Offers and Counterfeit Check Scams - 1%

Know Want to Know Learned








To Buy or to Rent? That is the QuestionDr. Sue Lynn Sasser, University of Central OklahomaOklahoma PFL Standard 10With a partner or in a small group, review each of the following characteristics. This is only a partial list of factors to consider when deciding whether to buy or rent. Consider other factors to add to the list. Determine if the following characteristics are a cost or benefit when renting or buying a place to live by placing an X in the appropriate column. Explain your reasons. Why may another group's answers differ?

Marta and Daniel plan to get married. Daniel just got promoted and Marta recently earned her degree and is starting a new career. Both have been saving money for a down payment on a house. Daniel is concerned that buying a house will be too expensive and demand too much time while they are adjusting to a new work schedule. However, Marta loves gardening and is excited about finding a place with a nice yard for her dog. What would you recommend to them? In addition to the factors listed above, what are some other things for Marta and Daniel to consider when looking for a place to live?

Best Option: __________________________________________________________________________________

Reason ________________________________________________________________________________________________

____________________________________________________________________________________________________________________

Other factors to consider

1. ________________________________________________________________________________________________________________________________

2. ________________________________________________________________________________________________________________________________

Factor Rent Cost Rent Benefit Buy Cost Buy Benefit

Down Payment ____________ ____________ _____________ _____________

Home Inspection ____________ ____________ _____________ _____________

Property Taxes ____________ ____________ _____________ _____________

Homeowner’s Insurance ____________ ____________ _____________ _____________

Maintenance and Repairs ____________ ____________ _____________ _____________

Security Deposit ____________ ____________ _____________ _____________

Pet Deposit ____________ ____________ _____________ _____________

Renter’s Insurance ____________ ____________ _____________ _____________

Utilities ____________ ____________ _____________ _____________

Building Equity/Investment ____________ ____________ _____________ _____________

Tax Deduction ____________ ____________ _____________ _____________

More Creative Freedom ____________ ____________ _____________ _____________

Sense of Security and Belonging ____________ ____________ _____________ _____________

Greater Flexibility for Relocating/Moving ____________ ____________ _____________ _____________

Access to Amenities ____________ ____________ _____________ ____________________________________________ ____________ ____________ _____________ ____________________________________________ ____________ ____________ _____________ ____________________________________________ ____________ ____________ _____________ _____________








Don’t Lose It All!Lori Goodbary, Edmond Public SchoolsOklahoma PFL Standard 11

Risk/Loss Scenario Chart Instructions: Come up with five different scenarios in which a person would experience the risk of loss. Determine the risk or potential problems that could happen in those scenarios. Lastly, research and determine what type of insurance could cover or minimize the loss from a given scenario. This may be done individually or with a partner.

Scenario Insurance to Minimize LossRisk/Loss

VocabularyLook up the definitions for the following insurance terms.

Risk__________________________________________________________

Claim__________________________________________________________

Deductible__________________________________________________________

Premium__________________________________________________________

Health Insurance__________________________________________________________

Disability Insurance__________________________________________________________

Life Insurance__________________________________________________________Co-payments__________________________________________________________

Renters Insurance__________________________________________________________

Auto Insurance__________________________________________________________

Homeowners Insurance__________________________________________________________

Out of Pocket__________________________________________________________

Long-term Care__________________________________________________________

Term Life Insurance__________________________________________________________

Whole Life Insurance__________________________________________________________

Probability __________________________________________________________

Comprehensive Coverage__________________________________________________________

Collision Coverage__________________________________________________________

Universal Life Insurance__________________________________________________________

Co-insurance__________________________________________________________








You Win Some, You Lose Some!Tami Sanders, Mid-Del SchoolsOklahoma PFL Standard 12

COMBINATIONSYou are going to further explore the financial risk of gambling by determining the odds or probability of winning a bet. This can be done in groups of six.Each group will need a pair of dice. List the possible number of combinations for each value, then add up the number of possible combinations for each value. Calculate the odds for each value. For example: There are 21 possible combinations. A 12 can only be rolled using two sixes, so the odds of rolling a 12 would be 1 out of 21. List the possible number combinations for each value.

WINNING OR LOSING?Each student in your group must choose a number (between 2 and 12):_______________________________________________________________

Imagine you are placing a $5 bet on each roll.

Roll the dice 20 times. Use tally marks to track how many times each number is rolled.

2: ________ 3: ________ 4: _________ 5: _________

6: ________ 7: ________ 8: _________ 9: _________

10: _______ 11: _______ 12: ________

Calculate each team member's wins and losses by multiplying the number of times each number was rolled by the $5 bet.

2: ________ 3: ________ 4: _________ 5: _________

6: ________ 7: ________ 8: _________ 9: _________

10: _______ 11: ________ 12: ________

Amount won: _______________ Amount lost: __________________

Which student won the most money? _______________________________________________________________________________

Which one lost the most money? ___________________________________________________________________________________

Would this be an acceptable risk? __________________________________________________________________________________

Why or why not? _________________________________________________________________________________________________

Losing money while gambling can have other risks. What might these risks be? __________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

________________________________________________________

Value # of Possible Combinations Odds

1

2

3

4

5

6

7

8

9

10

11

12

/21

/21

/21

/21

/21

/21

/21

/21

/21

/21

/21

/21








Throwing in the Towel!Lori Goodbary, Edmond Public SchoolsOklahoma PFL Standard 13Bankruptcy was designed to provide people who have unforeseen or unavoidable misfortune the ability to start over and rebuild their lives. Bankruptcy should be a last resort, as it is costly (attorney fees and court costs) and has lasting negative effects on the borrower and others. Debt never just disappears. The lender takes the loss on debts eliminated through bankruptcy. How might this affect others? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Have you ever had a friend or family member do something to lose your trust? What would the person need to do to regain your trust? Bankruptcy causes a person to lose trust with lenders. How can you regain trust or rebuild your credit with lenders? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Before resorting to bankruptcy, consumers should understand the types of bankruptcy, what's involved, and explore all other options.

Divide students into three groups. Using technology, have each group explore one of the following, then share with the class.

Group 3: What alternatives to bankruptcy are available?

Group 2: What is the process involved in filing bankruptcy? How much does it cost?

Group 1: Explain the two main types of bankruptcy, and the benefits and consequences of each.








So Many Ways to Give!Amy Lee, Oklahoma Council on Economic EducationOklahoma PFL Standard 14

Why is it important to budget monetary donations? _________________________________________________________

______________________________________________________________________________________________________

_____________________________________________________________________________________________________________

Choose a charity you would like to support and explain why: ___________________________________________________________________

________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________

What are ways you can support this charity, other than monetary donations? _____________________________________________________

________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________

Consumer Goods Donations Volunteer

Education

Health

Art and Culture

Environmental

International

Animal

Consequences of Charity not Receiving Support

Benefits of SupportingType of Charity

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