MONEY SENSE:

PERSONAL FINANCE, PTA,

AND YOUR CHILD

California State PTA Convention 2015

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Presenters

Alex Brown, CPA, CFP

Board Member, CalCPA Sacramento Chapter

Kathie Blanchette

Vice President of Education

Junior Achievement of Northern California

Bruce Kajiwara, CPA/PFS, CFP

Board of Directors, California Jump$tart Coalition

Conveners: Celia Jaffe & Michele Passwaters

Education Commission, California State PTA

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Workshop Agenda

Welcome

Financial Literacy For Youth – PTA Resolution

Why do people need to be financially literate?

Childhood attitudes toward money and saving

Key financial concepts for high school students

Resources available

Ideas for PTA activities

Q&A

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“Financial Literacy for Youth”

PTA resolution adopted in 1999

RESOLVED, That the California State PTA provide materials to promote financial literacy and urge its units, councils and districts to make available information to educate families and help teach financial understanding, fiscal responsibility and effective decision making; and be it further

RESOLVED, That the California State PTA encourage and support the development of integrated curricula in personal finance education for grades K-12; and be it further

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“Financial Literacy for Youth” cont.

RESOLVED, That the California State PTA encourage the development of statewide academic standards in personal financial literacy as a requirement for high school graduation; and be it further

RESOLVED, That the California State PTA support legislation which holds credit card companies, and marketing and lending agencies accountable for establishing and observing responsible credit limits and lending practices, especially for youth under 21 years of age;

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Resolution>PTA Advocacy>New Law

RESOLVED, That the California State PTA encourage the development of statewide academic standards in personal financial literacy as a requirement for high school graduation;

Topics such as budgeting and managing credit, student loans, consumer debt, and identity theft security are required to be integrated into curriculum frameworks in social sciences, health and math when next revised.

Due to the Financial Literacy

resolution, PTA supported

Assembly Bill 166.

Assembly Bill 166 became

law January 1, 2014

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Why Financial Literacy? 7

Why Financial Literacy?

American teens rank right below average on a

recent OECD (Organization for Economic

Cooperation)assessment

A survey from the Jump$tart Coalition conducted

from 1997-2008 showed high school seniors doing

worse in their understanding of financial literacy

57.3% in 1997 vs. 48.3% in 2008

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Why Financial Literacy?

According to a 2011 Capitol One survey of the students planning to take out student loans, 44 percent of the students said that they have either not discussed with their parents how student loans work, or they have had a brief conversation with little detail.

On average, college students graduate with $26,000 in debt

$1.2 trillion in total student loan debt nationwide

Long term consequences

Precluded from certain employment

Dropping out of school in order

to work to pay off debt

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Why Financial Literacy?

A 2011 Junior Achievement and Allstate Foundation survey revealed nearly 50 percent of American teenagers are unsure how to use a credit card effectively, yet 24 percent believe high school or younger is when they should get their first credit card.

According to the 2011 Consumer Financial Literacy Survey Final Report of the National Foundation for Credit Counseling, one in three adults in the United States reported that they had no savings.

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AB 166 & Common Core

AB 166

Mandates financial literacy be integrated in K to 12

curriculum

Common core and financial literacy

Opportunities to reinforce concepts across disciplines

Home economics/career & technical education

teachers at the forefront of financial literacy

education

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Bruce Kajiwara, CPA/PFS, CFP Board of Directors, California Jump$tart Coalition

California Jump$tart Coalition:

www.cajumpstart.org

National Jump$tart: www.jumpstart.org

Resources from Jump$tart Coalition 12

Community Partnerships and Resources for Financial

Literacy

Who we are

• A not-for-profit, Section 501(c)(3) organization • Affiliated with the National Jump$tart Coalition

for Personal Financial Literacy • A resource for Californians interested in Personal

Financial Literacy • Membership is diverse and free • The Board and members are from across the state

and represent a range of organizations

Our Partners in Educating California’s Youth

About Personal Finance

Our mission: to improve the personal financial literacy of California's youth ... By helping the personal finance education community become more connected, effective, and powerful By supporting the implementation of personal finance education at every level from K-12th Grades

What we do

California Has Had No High School Requirements for Personal

Financial Education

Organizations Are Ready to Help with Personal Financial Education

No cost materials and teacher training Coordination of volunteers for course instruction Support for presentations in individual classes or

full school assemblies K – 12 online activities, games and resources After-school programs and assistance Standards-based and bilingual curriculum

How We Can Help Prepare Students for Financial Success

Engage teachers/principals/PTAs/ superintendents/school boards to develop the best local delivery strategy Spread the word among community

organizations, leaders, local government officials Volunteer to teach, or to help us spread the

message!

Early financial concepts for elementary and

middle school children.

Childhood Attitudes toward Money and Saving 20

Elementary & Middle School

Early Financial Concepts…a sampling 21

Take responsibility for personal financial

decisions.

Make financial decisions by systematically

considering alternatives and consequences.

Explore career options.

Identify sources of personal income.

Develop a plan for spending and saving.

Elementary & Middle School

Early Financial Concepts, cont. 22

Describe how to use different payment

methods.

Consider charitable giving.

Discuss how saving contributes to financial well-

being.

Develop a system for keeping and using

financial records.

Sample lesson 23

Kathie Blanchette Vice President of Education

Junior Achievement of Northern California

Northern California: www.janorcal.org

Southern California: www.jasocal.org

San Diego: www.jasandiego.org

Sacramento: www.jasac.org

National: www.juniorachievement.org

Junior Achievement Resources 24

Sampling of Junior Achievement Programs

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JA BizTown® JA BizTown combines in-class learning with a day-long visit to a simulated town.

This popular program allows elementary school students to operate banks, manage restaurants, write checks, and vote for mayor. The program helps students connect the dots between what they learn in school and the real world. (Grade 5)

JA Economics for Success® JA Economics for Success gives students the information needed to build strong

personal finances, a cornerstone to a happy, secure life. Students learn the importance of exploring career options based on their skills, interests, and values. They also learn about spending money within a budget; saving and investing wisely; and using credit cautiously. (Grades 6-8)

JA Finance Park® JA Finance Park is a month-long program that introduces students to personal

financial planning and career exploration. At the culmination of this teacher-led program, students visit JA Finance Park, a realistic on-site or virtual community, to put into practice what they've learned by developing and committing to a personal budget. (Middle School and High School)

Sampling of Junior Achievement Programs

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JA More than Money® JA More than Money teaches students about earning, spending, sharing, and

saving money. It also identifies businesses that students can start or jobs they can perform to earn money. Students play a game to learn money-management skills and to better understand the role and importance of money in their lives. (Grades 3-5)

JA Personal Finance® JA Personal Finance explores the fundamental elements of personal finances:

earnings, saving and investing, budgeting, credit, risk management, and giving. Students apply these elements to a personal financial plan that allows them to set specific goals for their lifelong financial needs and desired quality of life. (Grades 9-12)

Also, apps for students: JA Build Your Future

JA Success Park

JA Assembling Your Career

High School Financial Concepts 27

High School Concepts…a sampling 28

The risks and protections of checks, stored value cards, debit cards, gift cards and online and mobile payment systems.

Compare the features and costs of personal checking accounts offered by different financial institutions.

Compare the advantages and disadvantages of owning a house versus renting.

Research the average costs of all expenses associated with a four-year college education, a wedding, and a new versus used car.

Differentiate among various types of student loans and alternatives as a means of paying for post-secondary education.

The Siren Song of Borrowing 29

Borrowing: Reap the Rewards 30

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Alex Brown, CPA, CFP Board Member, CalCPA Sacramento Chapter

California Society of Certified Public Accountants

CalCPA Education Foundation

www.calcpa.org/Content/Financial_Literacy.aspx

CalCPA Resources 32

CalCPA’s Financial Literacy Programs

Dollars & Sense

Ages 18+

High School Financial Planning Program

Grades 9-12

Financial Smarts for Teachers

Financial program designed for teachers

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Key Features of Our Program

FREE

No selling of products or services of any kind

Staffed by volunteers who are licensed CPAs

Each presentation can be tailored to the specific

needs of the audience and/or teacher

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High School Financial Planning Program

Available statewide

One presentation or

series

Topics include:

Money management

Borrowing

Earning power

Investing

Financial services

Insurance

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Financial Smarts for Teachers (FSFT)

Available statewide

One presentation or series

Gets teachers comfortable with financial topics and issues

Topics include:

Taxes

Credit

Saving & investing

Financial planning

Home ownership

Risk management

Retirement

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How to Get Started

Visit www.calcpa.org to learn more

Contact CalCPA Institute strategic relations manager David Lo at david.lo@calcpa.org to schedule a visit

Make sure to have the following information: time/date, location, type of audience and number, specific topics to be covered and frequency

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What can your PTA do? 38

PTA Ideas 39

Set up a series of “parent&me” practical financial skills lessons for your school community.

Bring in a guest speaker* as part of a PTA meeting

To talk about saving for college

To give a sample of a Junior Achievement or CalCPA lesson to determine interest in hosting a whole course

Discuss with your principal or district instructional staff how the concepts specified in AB 166 will be integrated into the curriculum.

Set up an activity in conjunction with a scout troop or school club on career exploration or life skills.

PTA Ideas, cont. 40

Feature links to financial skills games and other informational sites on your PTA website.

Put financial literacy information in your newsletter or out on your list-serve.

Offer to find a guest speaker* for a middle school math class to talk about financial careers or to explain compound interest.

*Organizations like those featured in this workshop have trained presenters

and professionally prepared curriculum. Be cautious about inviting local financial advisors who are looking to market their services.

Questions? 41

Workshop B06

Money Sense: Personal Finance, PTA, and Your Child

California State PTA Education Commission

Thank you for attending. Have a wonderful day. 42