Money Savvy Youth Workbook

WORKBOOK Name Money Savvy Youth draws from lessons in Citibank’s Money Math, Wells Fargo’s Hands on Banking, and the National Council on Economic Education’s Financial Fitness for Life curricula, as well as original lessons and projects developed by the East Bay Asian Local Development Corporation.

East Bay Asian Local Development Corporation

Money Savvy Youth Workbook 2010

Class 1 - You and Your Money

Ground Rules In order for us to have a good learning environment for Money Savvy Youth, everyone should...

1 ________________________________________ _________________________________________.

2 ________________________________________ _________________________________________.

3 ________________________________________ _________________________________________.

4 ________________________________________ _________________________________________.

5 ________________________________________ _________________________________________.

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 1 - You and Your Money

Introduction

In MSY you earn points from quizzes, projects, and class participation.

1. Quizzes / Projects

Week 1

Week 2

Week 3

Week 4

10

10

10

10

Week 5

Total

10

50

2. Workbook

5

5

5

5

5

25

3. Participation

5

5

5

5

5

25

Total Points Possible

If you earn at least 80 points, and turn in a completed parent permission form, you will receive a $50 savings bond.

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 1 - You and Your Money

Introduction

Bank of EBALDC

Account Holder:

Your Name Here 310 8th St. Oakland, Ca 94606

Balance before class last week Points earned last week Other/Withdrawals

Deposit details DATE 10/15/10

Total

East Bay Asian Local Development Corporation

+ -

57 20 0

Total Points Now =

77

DESCRIPTION EBALDC direct deposit

4

DETAILS

Quiz/Project Workbook Participation

AMOUNT 10 5 5 20

Money Savvy Youth Workbook 2010

Class 1 - You and Your Money

Introduction CLASS ONE

YOU AND YOUR MONEY

What do you think about money?

What is money?

From where does money come?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 1 - You and Your Money

Worksheet Use the space below to list words, phrases, songs, or anything else that comes to mind when you hear the word “Money�.

1.

2.

3.

What would you buy if you had all the money in the world?

Most people earn money by getting jobs. But different jobs pay different amounts of money.

Look at the list of jobs below and write in how much you think each might pay per year. Then the teacher will tell you how much each job actually makes.

My Guess

Actual

Lawyer

East Bay Asian Local Development Corporation

Doctor

6

Sales Person

Money Savvy Youth Workbook 2010

Class 1 - You and Your Money

Definition

We use money to buy things that we need and want. Money also brings up strong thoughts and feelings. But what is money?

Definition:

What is money?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 1 - You and Your Money

Worksheet From where does money come?

Where does it go?

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Money Savvy Youth Workbook 2010

Class 2 - Budgets

Introduction CLASS TWO

BUDGETS What is the difference between products that have commercials on TV and products that don’t have commercials?

How do we know if something is a need or a want?

What is a budget?

How does a budget work?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 2 - Budgets

Activity Below are pictures of a 1 GB Zune MP3 player and a 1 GB iPod MP3 player. What are some of the differences and similarities between them?

Similarities

Differences

Price:

Price:

Which MP3 player would you rather buy?

It costs $1 to buy a song for an MP3 player.

If you had $200, how many songs could you buy after buying the iPod? If you had $200, how many songs could you buy after buying the Zune?

Would you still buy the same MP3 player? Why or why not?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 2 - Budgets

Definition Because we don’t have all the money in the world, we need to make decisions about what to buy with our limited dollars. The first thing we should ask ourselves before we buy something is:

But how do we know if something is a need or a want?

Definitions What are needs:___________________________________ ________________________________________________ ________________________________________________.

What are wants:____________________________________ ________________________________________________ ________________________________________________.

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 2 - Budgets

Worksheet For each item listed below, circle if it is a NEED or a WANT.

Fruits and Vegetables

NEED

WANT

Potato Chips

NEED

WANT

Shelter

NEED

WANT

Electricity

NEED

WANT

Toys

NEED

WANT

Television

NEED

WANT

Books

NEED

WANT

List four other needs and wants in the spaces below.

NEEDS

WANTS

_________________________

__________________________

_________________________

__________________________

_________________________

__________________________

_________________________

__________________________

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 2 - Budgets

Definition We can use a tool called a budget to help us spend our money wisely.

_______________________________________________________________ _______________________________________________________________ _______________________________________________________________.

There are four parts to a budget. What does each part tell us?

Description: Income: Expense: Balance:

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 2 - Budgets

Activity

The four parts of a budget are arranged into a grid, and then you fill in each section. Like this: Description (what is it?)

Income (money coming in) Expense (money going out)

Allowance

$10

Bubble Gum

Balance (leftover) $10.00

$1.25

$8.75

Scenario: In this project you and a partner will pretend that it is time to do some back-to-school shopping. You will receive “$50� to buy the things that you need and want. You must purchase at least one item from each of the following categories: school supplies, food for lunch, and clothing. If you have money leftover you can buy more things or you can save your money.

Record all of your purchases on the budget provided on the next page. When you finish, answer the questions below the budget.

Remember, with $50 you need to buy one item from each of the following categories: Food School Supplies Clothing

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 2 - Budgets

Activity

Description

Income

Expense

Balance

Questions How many items did you purchase?

Did you purchase at least one clothing item, one food item, and one school supplies item?

Did you buy anything else with the money you had leftover? If yes, why did you choose to buy those things?

Are you a responsible spender? Why or why not?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 3 - Savings and Interest

Introduction CLASS THREE

SAVINGS AND INTEREST What is the best way to make sure that you spend your money wisely?

What is a spending leak?

Where can you put your money so that it will grow?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 3 - Savings and Interest

Activity

The story: You get $10 every week for allowance. Right now, your favorite game is on sale for $40. It will only be on sale for six weeks, then the price will go up to $100. You must save at least $40 by the end of six weeks, but every week something comes up that you need to buy.

Everytime you have to buy something, you can choose between two different items. Your job is to decide which item to buy each week, and keep track of how much money you have in your budget. If you have at least $40 left at the end of 6 weeks, you win!

Instructions: Keep track of your money in your budget.

First, record in the budget your allowance of $10.

Then pull a card from the envelope provided and decide which of the two items on the card you should buy. Record the amount that you spend on the budget.

Then record your allowance again, and pull another card from the envelope.

Repeat this until all the cards are out of the envelope.

If you do not have enough money to buy one of the things on the card that you pulled, put it back in the envelope and choose another one. If you cannot afford any items in the envelope, you must start over from the beginning.

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 3 - Savings and Interest

Activity

Description

Income

East Bay Asian Local Development Corporation

Expense

18

Balance

Money Savvy Youth Workbook 2010

Class 3 - Savings and Interest

Worksheet When you were filling in Your budget did you notice anything that made it difficult for you to save money?

One thing that can make it difficult for us to save money is something called a spending leak.

What is a Spending Leak?

There is a way that we can avoid spending leaks. We call it PYF. What do the letters PYF stand for?

P Y F East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 3 - Savings and Interest

Worksheet When you save money, where do you keep it?

Where can you save money so that you will get more than what you put in?

When we talk about banks and money, what is INTEREST?

Calculations Here are some examples of how interest works.

If you save $100 in a savings account that earns 5% interest, how much money will you get?

$100 + 5% =

What if you put $500 in a savings account that pays the same amount of interest?

$500 + 5% =

If the bank gives you the same interest, how do you get more money?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 4 - Credit

Introduction CLASS FOUR

CREDIT What happens when you borrow something?

What is credit?

What is it called when people borrow money from banks?

Why do people borrow money from banks?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 4 - Credit

Definition Credi

Have you ever heard of a credit card?

Do you know how a credit card works?

t Car d

6515

8 Respons 1 1 8 6 3 9 8 3 ible Borr ower 2 1 7 0 0 4 2

What is

What is

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Money Savvy Youth Workbook 2010

Class 4 - Credit

Activity A play about credit by the National Council on Economic Education (Financil Fitness for Life)

In the boxes below, write down credit clues about Penny and Simon from the play, then answer the questions at the bottom.

Penny’s Credit Clues

Simon’s Credit Clues

Who do you think is more responsible, Penny or Simon?

Why is it important to have good credit?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 4 - Credit

Worksheet

What is a When people borrow money from the bank that is called getting a________.

Below are some pictures of things that people usually buy with loans. Write down how much each one costs.

When people borrow money from the bank, how do they pay it back?

Example: How much does it cost to go to a college like UC Berkeley for 4 years?

If you pay $415 per month for 10 years, how much will you pay back in total?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 5 - Goals and Planning

Introduction CLASS FIVE

GOALS AND PLANNING What is an asset?

What is a goal?

How can you be sure to reach your goals?

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 5 - Goals and Planning

Worksheet In the last class, we talked about reasons why people borrow money from banks. Can you remember some of the reasons why people get loans?

House, car and education are all examples of something we call assets.

?

What is an

What is one asset that you are working towards in Money Savvy Youth?

When there is something that you know you want to achieve in the future, like an asset, that is called a goal.

The best way to achieve a goal is to have

East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010

Class 5 - Goals and Planning

Activity You will be placed in a group with 4 or 5 other students. Your group will be assigned a goal and you will have to make a written plan for how to achieve that goal. Write out your plan on the poster paper provided to you. When you are finished, your group will present your goal and plan to the rest of the class. You have 20 minutes to complete this project.

Directions 1. Write the names of everyone in your group and your goal on the poster paper.

2. Decide how long it will take to achieve your goal.

3. List 3 things you can do to make sure that you achieve your goal in the time you decided.

4. Draw a picture of your group achieving your goal.

5. Present your goal and plan to the rest of the class.

Example:

Goal: save enough money to buy a car How long it will take: 5 years 3 things I can do: 1. save money in the bank to earn interest 2. pay myself first 3. cut out spending leaks East Bay Asian Local Development Corporation

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Money Savvy Youth Workbook 2010