View Full Version : Teaching Personal Finance to Teens
I'm looking for some input on a Personal Finance class I am teaching for HS students this fall. I teach at a community college where there is a Gateway to College program. If you're not familiar with Gateway to College, it's essentially an alternative HS program for students who have dropped out of HS or are at risk of dropping out of HS. Usually these students are dropping out due to life circumstances (health reasons, death in the family, other family reasons, social issues, etc.), not because they don't have an interest in academics. These are students who want to finish HS (as opposed to getting a GED) and the Gateway to College program allows them to do that while earning college credit in some cases.
In the spring, I taught a Personal Finance course for this program and it was okay. I have an MBA and have taught courses in money management and finance at the college level. But this class was put into place somewhat last minute and I didn't have the time to plan the way I wanted. Fast forward to this summer and I now have time to really plan for the fall semester.
My students are mixed-grade level. Most would be considered juniors or seniors in HS, but they range in age from 16 to 21. I'm going to be using a curriculum from NEFE (National Endowment for Financial Education) called High School Financial Planning Program (www.hsfpp.org). It's free, which is a good thing as our program has a limited amount of money. I've also contacted our local Junior Achievement office and asked if they have a volunteer available to teach one or two of their programs.
In addition, our financial aid office at the college has an agreement with American Student Assistance to use their SALT My Money 101 program. Since our students all have email addresses through the college and are considered to be dual-enrolled college students, they have access to the SALT program. I'm going to have them work through the 12 modules at their own pace as part of the class.
Here's where I'd like help from my trusted Simple Living forum friends.
1) Do you have any experience with the NEFE HS Financial Planning Program and, if so, what feedback do you have? Is it worthwhile? Is there something I should use to supplement this curriculum?
2) Do you have any experience with Junior Achievement? Would you recommend their program?
3) Are their any other free or inexpensive resources that you would recommend? My class will likely be held in a computer lab, so doing work online is perfectly fine. I'll have the ability to show videos as well, so if there are videos you would recommend please share those ideas, too!
4) I'd like to have my students read an actual personal finance book. I thought about having them each choose their own book and write an essay about it, but there are some pretty bad personal finance books out there so that option seems potentially scary. But both "Think and Grow Rich" and "The Richest Man in Babylon" are in the public domain (again, need free or low cost and the getting 15+ copies of the same book via the library for the entire semester could be a problem). What do you think about using one (or both) of these books? Which one would you recommend? Or can you think of another option?
5) Any other thoughts or ideas you have about how to best equip young people with fundamental personal finance knowledge!
Thanks so much!
I read so many in our early years including Think and Grow Rich. THe one that changed our lives was Your Money or Your Life. I wonderf if the publisher would gift you 15 copies for this class? It is a community service you're offering frankly. Teaching $ management to at risk teens. It's worth the ask! THis book makes it real. You gotta know where your $ goes, before you can decide where to make your $ go!
rosarugosa
7-12-15, 8:35am
That sounds like such a gratifying endeavor! It seems like I'm always recommending the MMM blog to people. I think you could select some of his best posts for reading and discussion. He focuses on why frugality is cool and fun, as opposed to a deprivation mindset. I think that could be an important key to reaching your target audience. I like Jeff Yeager (The Ultimate Cheapskate) for much the same reason.
I'm biased because I love Dave Ramsey--but his daughter is in the act now--and her focus is on getting young people on board.
Here's a webpage that specifically about Ramsey-style curricula designed for teens: http://www.daveramsey.com/homepage/family/?snid=home.kidsschool
I don't know if has faith-based stuff in it, which might make it ineligible for your program, but check it out.
I like the idea of also using more philosophical, classic books about money, like YMOYL and Richest Man in Babylon.
As for your question about Junior Achievement, I was in that program when I was in high school, but keep in mind that was 40 years ago!! I really liked it, because you actually build a "business" on a small scale.
I think what you're doing is GREAT! Keep us posted.
ETA: Oops--I see you've already chosen your curriculum. Never mind about DR, unless one of his books for kids would be a good option for supplemental reading.
It seems like I'm always recommending the MMM blog to people.
+1
I can't answer most of your questions, but I would also go with a few Mr. Money Mustache posts for kids that age.
You'll probably want to edit out some of the cursing, but his philosophy about money might be really enlightening.
If you haven't read the blog, here are a few posts that might be good for discussion:
Mr. Money Mustache's Own Story
A Millionaire is Made Ten Bucks At A Time
Is it Convenient? Would I Enjoy It? Wrong Question
Frugality: the New Fanciness
The Shockingly Simple Math Behind Early Retirement
Keep us posted. I'm excited to hear how the class goes!
At that age I needed REAL LIFE examples!!
Examples of various car loan contracts, phone contracts vs. pay as you go, credit reports & ones rights under the Fair Debt Collection? Act.
These are the potholes directly in front of each of these students, navigating them well will help them apply the larger picture, saving for retirement, managing their student loan concerns much easier in the future.
I did Jr. Achievement in high school about 20 years ago. They will learn much more at a real job, any real job, than in Jr Achievement unless the program has drastically improved.
At that age I needed REAL LIFE examples!!
Examples of various car loan contracts, phone contracts vs. pay as you go, credit reports & ones rights under the Fair Debt Collection? Act.
These are the potholes directly in front of each of these students, navigating them well will help them apply the larger picture, saving for retirement, managing their student loan concerns much easier in the future.
. . .
I echo this, Dhiana. I think having someone just a few years older than they are (under age 30) who managed to avoid the traps of credit cards, expensive cars, etc. and has some solid savings and other things to show for their work would be very motivational.
ToomuchStuff
7-13-15, 12:29am
Your tax dollars at work:
https://bulkorder.ftc.gov/
It has been a LONG time since JA, but I remember them more as both trying to teach work ethic and running your own business (virtually then maybe actually, with some sort of sales, like clocks or calendars, etc).
Now, to quote you "In addition, our financial aid office at the college has an agreement with American Student Assistance to use their SALT My Money 101 program."
Is this the same financial aid program that works for the school to try to get them to sign up for loans for school? Do these kids already have the loans before they go to class about finances? Seems a bit cart before the horse to me.
Everyone -- thank you for the great feedback and ideas so far! Please keep the thoughts coming!
Here's a bit more info that might be helpful. When I taught this class last semester I had a wide range of students in terms of their knowledge at the start of the course. Some of the students worked nearly full-time and were contributing significantly to the finances in their households. Others had essentially no experience with financial transactions: no allowance, no money gifted to them, no job, etc. Most students had very limited knowledge about what I considered to be the most basic of finance lessons: checking account vs savings account; how to write a check; ATM fees; how to fill out a W-4 when starting a job; income tax withholdings; simple interest vs compound interest; and so on.
So I need to start with some very, very basic stuff. Like tracking the money you earn/get and the money you spend. How to deal with financial transactions beyond just paying in cash. How to open a bank account, types of bank accounts, earning interest, balancing a checkbook, and so on. Of course, I'm not sure why I sometimes think that HS students should already know this stuff. When I was growing up, I learned how to write a check and balance a checkbook in a class that everyone took during 10th grade (I think). I'd had a passbook savings account since I was very young and I received an allowance, which I was taught to save, but a lot of personal finance stuff I learned either in that initial class in 10th grade or in the two years of accounting classes I had (it just made sense to me that if you did all this stuff with tracking money in business environments you should do the same in your personal life). Beyond that it was mostly trial-and-error and self-education, which is why I want to make sure they realize that the internet is full of good personal finance resources, but that this stuff goes way back and that there are some books (!!!) written decades ago that are considered classics on this topic.
I think the JA program has evolved quite a bit. They offer several different programs for HS students. One is a 5 week session on personal finance and another is a 7 week session called exploring economics. They do still offer the entrepreneurship programs, but the college has a business department with a fairly robust entrepreneurship major so I don't feel I need to go in that direction with the content in this course.
The SALT My Money 101 program is a self-directed, online program. It is our financial aid office's way of trying -- with limited resources -- to educate all of our students about personal finance/money management related matters. (As a community college, we're extremely sensitive to the costs associated with attending college and the potential dangers of student loans. The college as a whole spends a lot of time and energy trying to educate students about all aspects of financial aid.) The students in my class are still in HS, technically, so they aren't responsible for the costs associated with any of their coursework until they officially graduate from HS. All of their associated expenses are paid for by the school district that they are coming from.
Okay, thanks for the help. Please keep the thoughts and ideas coming -- I so appreciate the links to various resources and ideas about what to include.
I thought I would share with everyone the personal finance rap video I found that I'll be using during the opening lecture of my class this fall. It's an absolute internet gem and I think you will all enjoy it. https://www.youtube.com/watch?v=gsanf-hpvSE
Thank you ToomuchStuff, I ordered some of the free resources you pointed me to.
Any other ideas? Please share them if you have them. I really want to make this class a life-changer for these students!
And then there's this. Which I just discovered this morning.
http://econstories.tv/fear-the-boom-and-bust/
iris lilies
7-18-15, 9:30am
A teacher over on the MMM board talked about sharing this idea with her high school students and I want to give her credit for the idea: A wedding doesn't need to cost much of anything.
she said that her students were surprised when they dissected the cost of what we really NEED to get married (pretty much the cost of a marriage license) vs the cost of a Big White Wedding. It's a good example to teach Need vs Want. I myself wonder if most people don't get it because I hear the sentiment "we can't afford to get married right now" when they really mean they can't affords a big blowout party.
You Could do the same exercise with funerals. The basic cost to dispose of a body is as little as $600 in my area. Why, then do people spend $6000. Or $10,000?
Examining these social constructs from an objective financial point of view could light a fire in their brains to substitute other activities to give meaning to these life marking events.
i think this is a core idea to,implant into your curriculum, that imagination is as great a resource as money in living your life. Getting into the habit of figuring out how to do things without spending money is a great life skill.
ToomuchStuff
7-18-15, 1:04pm
You Could do the same exercise with funerals. The basic cost to dispose of a body is as little as $600 in my area. Why, then do people spend $6000. Or $10,000?
Break down that $600 and you will see some reasons why people spend more.
You didn't for instance, mention donating your body to science, or the cost there (are you sure $600 is as little).
There is the religion aspect, from time one has to be in the ground (and local laws regarding things like vaults/aka concrete box for the pine box), to religious beliefs about burning.
Then there is the marker issues/beliefs/views (no marker, simple marker, larger marker) and is anyone going to visit.
Then the emotional issues (they deserved it), etc. that funeral directors can/do play on (oh that is a poor casket, won't let you know you can use your own or bring one in from elsewhere, etc).
To the lack of planning (not shopping around before or during). Does one need a perfect casket, or is the deceased going to care about that big scratch running down the side?
The biggest play, is emotional. I've seen a couple of people take out loans to pay for a burial, when the persons estate should be covering their own costs. Also seen a couple instances where the state, tries to guilt trip the next of kin into paying expenses for someone indigent, when the next of kin was a victim of crimes, by the indigent (and the reason the indigent didn't have anything was court expenses).
iris lilies
7-18-15, 1:26pm
Right, Too Much Stuff, donating one's body to science DOES result in $0 costs, good idea!
i meant my question about why people spend more to be points of discussion for the classroom. I can name many reasons why people think they must spend more.
Break down that $600 and you will see some reasons why people spend more.
You didn't for instance, mention donating your body to science, or the cost there (are you sure $600 is as little).
There is the religion aspect, from time one has to be in the ground (and local laws regarding things like vaults/aka concrete box for the pine box), to religious beliefs about burning.
Then there is the marker issues/beliefs/views (no marker, simple marker, larger marker) and is anyone going to visit.
Then the emotional issues (they deserved it), etc. that funeral directors can/do play on (oh that is a poor casket, won't let you know you can use your own or bring one in from elsewhere, etc).
To the lack of planning (not shopping around before or during). Does one need a perfect casket, or is the deceased going to care about that big scratch running down the side?
The biggest play, is emotional. I've seen a couple of people take out loans to pay for a burial, when the persons estate should be covering their own costs. Also seen a couple instances where the state, tries to guilt trip the next of kin into paying expenses for someone indigent, when the next of kin was a victim of crimes, by the indigent (and the reason the indigent didn't have anything was court expenses).
I think the biggest thing is emotional. Guilt over cheaping out and the whole idea that the person was "worth" spending a lot on. I remember reading somewhere that typically in a funeral home's casket showroom they will have two super cheap caskets and then the third cheapest one is waaaaaay more expensive because they know that people will skip the first two for fear of looking cheap, either to the funeral attendees, or to the dead person looking down from heaven. We didn't go fancy with either of my parents' funerals but it still wasn't cheap. I think dad's funeral expense, with only a military gravesite service, no embalming and a relatively cheap casket was still about $7,500. We were fine with that. The full military honors was awesome, and free, and totally appropriate for his funeral since he had always credited his time in the military as a defining point in his life.
The more important thing I'm glad we spent his money on was getting him a private room in the nursing home for the last month of his life. It was so much nicer for him and much less 'hospitally' than the shared room. He still hated it because it wasn't 'home' but he hated it a lot less than the shared room he was at for the first couple of weeks there.
Both of my boys took a personal finance class in highschool which mainly involved a computer game they played where their character had to get a job, pay rent and bills, get to work on time, etc.
Both wish they'd gone over basic accounting skills, how to use and balance a checkbook, how to budget, how to save, how to fill out tax forms when you get a job, how to fill out 1040 tax forms, what papers are important to keep and how to organize a year's important papers and statements.
Great ideas everyone. I've added some of your ideas to my brainstorming list, as I'm looking into doing something similar to the OP.
Here's my quick brainstorming list, before reading this thread. Bear in mind - this is Canadian, so a couple things will be a little different, but you get the idea:
1. Budgeting their current money.
2. How to understand a paycheque (info on pay stub).
3. What are their rights as employees and where to get more information.
4. How to do a tax return, when and why to do one, how they may only get money back if they do one.
5. Should you transfer tuition to your parents?
6. When are you eligible for a RRSP/TFSA? And TFSA basics
7. RRSP education and homebuyers plans
8. Ways to fund education. How do student loans work? Bursaries, scholarships, working.
9. How much do things actually cost? How to find this out, how to set a budget.
10. Ways to track your spending.
11. How to deal with your parents and spending money or living with them after highschool.
12. Ways to save money once you move out.
13. Thinking about money – what do you actually need/want.
14. How decisions you make now can affect you forever.
15. The long-term consequences of debt.
16. Why not to use payday loan companies.
17. Money and dating – stay independent.
18. Roommate agreements.
19. Getting utilities set up; how those bills work.
20. Grocery shopping.
21. Basic calculations in your head/phone calculator: tips, ratios when shopping, splitting a bill, making change.
There's so much - I keeping thinking of new ideas as I write this.
iris lilies
7-19-15, 10:43am
Kestra, those are all wonderful ideas!
"Home economics" used to cover some of this. I remember household budgeting as a topic in the WayBack machine, but I retained none of it from high school.I also remember completing a U.S. 1040 tax form and finding it incomprehensible while my best friend breezed through it.
now I still scratch my head over the concepts: deductions? Credits? Exemptions? Bring on a flat tax, already.
Kestra, those are all wonderful ideas!
"Home economics" used to cover some of this. I remember household budgeting as a topic in the WayBack machine, but I retained none of it from high school.I also remember completing a U.S. 1040 tax form and finding it incomprehensible while my best friend breezed through it.
now I still scratch my head over the concepts: deductions? Credits? Exemptions? Bring on a flat tax, already.
Our taxes, too. They just keep adding credits and never taking anything away. It's getting insanely complex, even for someone like me who likes that kind of thing. I just think about all the admin costs due to the complexity of our tax system (not to mention all the social safety net stuff that needs administration as well). If we got rid of all the unnecessary complexity we could probably just pay the guaranteed minimum living amount, as has been discussed on and off for decades. That would be a huge amount of jobs lost, though. Not everyone wants to live on the bare minimum like I do, sadly, so all those people would object to being jobless even with a guarantee minimum wage.
...
14. How decisions you make now can affect you forever.
...
That one should be tattooed on everyone's forehead--in reverse, to make it easy to read in the mirror.
It never fails to impress me how decisions about education, marriage, child-bearing, the military, etc. are made by people still wet behind the ears--with little or no life experience--whose brains aren't even finished growing. Explaining why I peaked at 19.
ApatheticNoMore
7-19-15, 5:41pm
Our taxes, too. They just keep adding credits and never taking anything away. It's getting insanely complex, even for someone like me who likes that kind of thing.
pretty much noone can do them by hand anymore and I say that as someone who used to do them by hand and doesn't even itemize, so yes I did them by hand, I can't anymore, I've tried. IT IS NOT POSSIBLE. Use a program, and when necessary (especially complex ones) use an accountant. It's not our fault, they really truly do get more complex every year.
Always use a computer program for taxes!!!!!!!!!!!!!!!!!! This comes from 31 years of experience at the IRS. I started my career with pencil and paper and microfilm of accounts. I could do the calculations in front of people and even do the penalties and interest. Over the years that all changed.
Best education is what tax programs are out there and basic info on what is income, what are deductions, what are some of the common misunderstandings, what to look for, when to get advice, and lastly how to read and respond to any government communications.
It's possible to do them by hand if you're completing a 1040EZ form.
freshstart
7-19-15, 7:27pm
You Could do the same exercise with funerals. The basic cost to dispose of a body is as little as $600 in my area. Why, then do people spend $6000. Or $10,000?
Examining these social constructs from an objective financial point of view could light a fire in their brains to substitute other activities to give meaning to these life marking events.
.
Not to criticize an honorable profession, but the upsell to families acutely grieving and easily convinced to do "the best" for their family member is disgusting to me. I guess I am criticizing an honorable profession, oh well. Patients and families that talked about what the patient wants before dying, have the comfort of knowing their wishes are honored. Pre-plan with the funeral home, you can pre-pay, that way no one feels guilty later for not buying from Liberace's Casket Line. Cremation and a simple service is in no way less meaningful than the 15k shebang.
when donating a body for science, around here the med school pays for picking up the body by a local funeral home. In 12-24 months, the body is cremated at no charge and can be returned to the family or interred after a group memorial service in a plot provided. This can be tricky to arrange when a patient passes in the middle of the night and the family decides then they want donation, much easier to arrange ahead of time.
Organ donation of viable organs needs to be decided ahead of time. Certain illnesses, infections and cancers preclude donation. There is nothing sadder than arriving at a family's home to find that they wanted to transplant organs but cannot because well, the patient is dead.
I agree with others who advise getting a young person into some classes.
High school students think 30 is old, so I suggest 25 or younger.
Years ago I ran a networking group for young women just out of college who were looking for jobs. They didn't like networking groups with 35 - 50 year olds because they were "old people" and boring. But that age group knows where the jobs are!
So I was the only "old" person and I invited 25 and younger gals to attend and give a 15 -20 minute speech. I had each attendee state what kind of work they wanted. In each case, their alma mater or other networking group of "old" people was the best bet.
We were lucky - we had an early success. One gal wanted to teach special needs kids at the elementary level. I told her I didn't know people in the educational area but the local chapter of the American Association of University Women did and they had an upcoming event. I gave her a few names and told her to ask for introductions to other members.
The young lady went, was introduced to the owner of a private special needs school and scheduled an interview on the spot. She got the job. And she kept coming back to our NetFem meetings and news went locally viral.
That branch won a national award for helping young women that year by letting me use their name to sponsor the networking group.
I had a group, you have classes. I just wanted to clearly illustrate the power of using young people to get high school people to pay attention. Those of us over 30 are "old fogeys" to them.
What you are doing is terrific. Best of luck to you!
TVRodriguez
9-11-15, 10:36pm
There's a good power point presentation on the blog No More Harvard Debt. The blogger was asked to talk to teenage boys about money, and he put together a great little presentation. I can't find it right now (on my phone, harder for me somehow), but if I remember when I get on a larger screen, I'll try to find the link.
TVRodriguez
9-11-15, 10:44pm
I just checked, and the power point presentation is right on the first page of the blog.
Www.nomoreharvarddebt.com
I just checked, and the power point presentation is right on the first page of the blog.
Www.nomoreharvarddebt.com (http://Www.nomoreharvarddebt.com)
Fabulous! I just posted this link on my FB page. I cannot wait to see if there is conversation about it.
I know very few people IRL who are debt free. 1 is my brother-the dairy farmer and a waaaay-smart dude;), 1 is a secretary that works for me (has never worked more than halftime!!!)......1 cousin who sadly at 40 started quit work and started pulling from her 401ks therefore paying big penalties every year, and we're fairly certain DH has 1 aunt/uncle who are debtfree.
If only I could have behaved at 22 like I learned by age 33. we'd likely be a half million dollars ahead of where we are now! (but ever so grateful to have learned by 33!!!)
To all you frugal parents....I hope your children heed the example you live in front of them daily.
Other than one home loan, my 3 kids are debt free. All have savings. They impress me.
TVRodriguez
9-18-15, 3:52pm
I just received a book called Blue Chip Kids: What Every Child (and Parent) Should Know about Money, Investing, and the Stock Market by David Bianchi. I attended a talk he gave yesterday, and it was a free gift. It is, so far, really good.
The author wrote it for his then 12 year old son (now 14), and he got it illustrated by his nephew and bound just for fun--intended to be a Christmas gift for his son. He said that he got a few extra copies made and gave them out to friends, and it was so well received that he got sort of pushed to publish it. He's not an author by trade--he's an attorney.
The host (a bank) gave all attendees a copy of the book, and I've only had the chance to skim it so far, but it looks good. It is written for kids (starting at about age 10 or 12), but it simplifies a lot of terms and would be useful for many many adults, as well. It breaks down lots of money topics into chapters that are broken into smaller sections. It also has these fun illustrations on almost every page. I may make this my Christmas gift for all nieces/nephews who are over age 10.
Chapter list is as follows, with most of the separate sections put into parentheses:
1. Money Money Money (What it is/currency/exchange rates)
2. Different Ways to Pay for Things (Checking/Electronic Bill Payment & Banking/Credit and Debit Cards/Wire Transfers)
3. The Stock Market is Cool (What is a Stock Market?/Stocks/Market Cap/Bid,Ask,Spread/Indexes/IPOs/SEC/Corrections/Rallies)
4. Let's Buy and Sell Some Stocks (Bulls & Bears/Paper Profits & Losses/Risk On & Off/Market Top & Bottom/Being Long or Short a Stock/Leverage)
5. Stock Options (Impress Your Friends With This One) (Options, Puts, Calls/Options Don't Last Forever/Trading Options)
6. Funds (Index/Mutual/Hedge)
7. Bonds and Certificates of Deposit (Sounds Boring But It's Not) (Bonds/Yield/US Treasury Notes and Bonds/Basis Points/CDs)
8. Analyzing Companies (Seriously, This Will Make You Very Smart)
9. Borrowing Money (Don't Borrow To Much-Ever!) (Mortgages/Amortization/Credit Ratings/Defaults/Bankruptcy/LIBOR)
10. Interest Rates (Making Money While You Sleep) (Simple and Compound Interest/APR)
11. Net Worth (What's Your Stuff Worth?) (Assets/Liabilities/Net Worth/Financial Statements/the "Oracle of Omaha")
12. Taxes (The Lower, the Better) (Gross Income/Net Income/Taxes/Audits)
13. The Economy (The Business of Business) (The Federal Reserve "the Fed"/Gross (really gross) Domestic Product/Budgets/National Debt/Deficits)
14. Venture Capital and Private Equity (Big Bets Chasing Big Profits)
15. Money Smart (Move to the Front of the Class!) (Retirement Savings/Your Mission, Should You Choose to Accept It/You Are Now Money Smart!)
16. And So It Ends--Or Maybe This is Just the Beginning
Looks good so far, like I said. I'm definitely going to introduce it to my kids at some point. Also will look into the other suggestions on this thread.
Williamsmith
9-19-15, 10:06am
# 10. Making money while You Sleep. Or others working hard and long hours so you don't have to.
I Love #12. Taxes(the lower the better)........It should read...(You pay less than your fair share so others with less influence can pay more than their fair share.)
But I don't see a chapter for 401(k)... It's called Watch it Disappear!
# 16 .....And So It Ends. - Just Like it Began.....illustration of a dead naked body.
I guess I'm just not feeling it. But kudos for the attorney.
Lol. Something for everyone (to not like). I have no problem with 10, 12 or 16, but add together bright, innocent, and 3, 4 and 5, and you could have a mess.
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