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Final Project
Money Management for Secondary Education
Andrew Lewis
Colorado State University
Program Development
EDAE 629
Dr. Lopes
Fall 2010
2
Money Management for Secondary Education
The following is a compilation of material proposed for a course to teach our youth the
responsibilities of personal money management. At a time when the economies of the world
have struggled and the individual wealth of our nation has diminished, I think it is more
important than ever that consideration be given to a program of this nature. It is interesting that
we place so much value on preparing young adults for college, yet, we overlook the one area in
which all of them will need to have a certain amount of expertise. Armed with the basic
understandings of personal financial management, we might be better prepared for the next
recession. Or, better yet, we might be able to avoid it altogether.
3
Table of Contents
Problem/Needs Statement 4
Audience Analysis 6
Written Objectives 17
Learning Assessment 19
Content Outline 22
Program Evaluation 30
References 34
4
Problem/Needs Statement Introduction
In December of 2007, the United States began a steep decline into the deepest economic
recession this country had seen since the Great Depression of the 1930s. Though, it is debatable
regarding what was the chief factor causing this economic downturn, it has often been noted that
center to the problem was the availability of easy, credit-based money that was injected into the
American financial system. In order to counter the struggling markets at the beginning of this
century, the Federal Reserve eased credit availability and drove interest rates to levels not seen
before. These low rates facilitated the growth of debt at all levels, most importantly within the
housing market. Never before had so many people been able to secure sub-prime (risky) loans to
secure material possessions that they once believed were unattainable.
Generation Y, also referred to as the Millennial Generation is a term used to describe the
demographic of population born anywhere from the mid-1970s to the latter part of the 20th
century. In today’s age of technology, there is an ever growing trend with younger generations
toward instant gratification. Generation Y teens and young adults have been shown to lose
interest in purchasing an item if a website is too slow or free shipping takes more than two days.
With the advent of portable laptop computers as well as smart phones, the up and coming
generations have become accustomed to access anywhere, anytime. Is it any wonder that this
generation is largely incapable of the planning what it might take to invest in a 401K or an IRA
for retirement purposes? When presented with an interest only loan for a large home versus a
smaller home that could be paid off exponentially sooner, this generation typically leans toward
the larger, more lavish expenditure.
5
The Problem and Who Is Affected
The education of our youth focuses on core fundamentals such as English, Science, and
Arithmetic, but even highly educated individuals enter the working world with little to no
practical knowledge in money management. Fundamental to the economic crisis of the late
2000’s is this idea that individuals had the ability, and often did, purchase what they could not
afford. Much has been made about predatory lending; however, in a nation based on the
principal of free will, it is ultimately up to the individual to arm himself (or herself) with the
knowledge that will keep him from facing bankruptcy or foreclosure.
In the past, it has been thought to be enough for a student to understand how to balance a
checkbook. However, with the advent of technology where checkbooks are a thing of the past, it
is likely that many individuals have never attempted even this simple task. Past generations did
not have the luxury of credit cards enabling purchases without adequate funds. Nowadays, it is
not uncommon for individuals to garner advances on their paychecks, which often comes at a
premium.
Unfortunately, the youth of America are entering the working world unprepared in the
ways of finance. This is an educational need that needs to be addressed. It is imperative that, not
only should school curriculum involve the fundamentals such as arithmetic, but also how to
properly look after personal finances when it comes to saving, investing, and spending.
Conclusion
The United States has once again become a slave culture. A slave to consumerism.
Many, who are uneducated in the ways of money, financially sacrifice the future with the
present. For the betterment of society, as a whole, it is imperative that programs are put into
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place, beginning in secondary education that addresses this mentality and how to overcome the
pitfalls of money mismanagement. Just as a high school graduate should not have an excuse for
illiteracy; if our educational system puts the proper curriculum in place, students should have no
excuse for financial ignorance.
As someone with a degree in Finance who was a casualty of the “Great Recession,” I
propose the adaptation of courses that would take the responsibility of teaching our youth the
financial aptitude that will arm them for real world financial decisions. For starters, the
curriculum should examine financial markets, investment strategies (for the long and short term),
inflation, and overall sound money management. With the early introduction of these skills, our
nation might never again find cause to place the blame on others (i.e. “predatory lenders”) for
mistakes that could have been avoided through careful analysis of one’s own personal financial
situation.
Audience Analysis
Money Management for Secondary Education is an idea for a course that I have long
thought would be beneficial to introduce into a high school setting. The current core curriculum
already addresses the basic tenets of English, Mathematics, and Science, to name just a few.
However, not every high school graduate enters a field that utilizes what has been learned
through some of the courses that are current requirements. There is one universal necessity that
every individual in the United States, whether they end up having careers as vast in difference as
a professional athlete to an astronaut will need. Just like water, money is a fundamental
necessity for survival within our current cultural structure. Why then is a subject as ubiquitous
as personal money management something that most individuals have to learn for themselves?
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My endeavor for this audience analysis was to reach out to a broad group of individuals
with various backgrounds to see if I am alone in this belief that a personal money management
course would be beneficial for high school students. I purposely did not reach out to current high
school students and, although, there are some educators who responded to the survey, I did not
singularly reach out to them as I wanted to find out from the general population if this is a course
that they wish would have been available to them and would therefore wish to be implemented in
the classroom for future generations. The objective of this exercise is not to argue that high
school curriculum should change in the immediate to accept such a program. Further
investigation is necessary to determine how to fund a program of this type as well as how to staff
it with adequately trained educators. It is the author’s hope that consideration would be given to
implement a course such as this on a trial basis, beginning as an elective, in limited classrooms.
Based on further feedback and studies, the program would be fine tuned and adapted as need be
for appeal to a broader audience.
For this audience analysis in determining the need for a high school personal money
management course, I utilized Survey Monkey (www.surveymonkey.com) to design a ten
question survey distributed to a random sampling of the population. I secured fifty-four
anonymous responses to this inquiry. Following is a summary of each question and the
responses garnered:
1. How old are you?
This question was asked for the fundamental reason to determine partial demographics of
the respondents. 70.4% were in the age range of 31 to 40, with 11.1% in the 41 to 50
age, 11.1% in the 51 to 60 age, 5.6% in the 61 to 70, and 1.9% in the 21 to 30 age range.
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Age
Under 20
21 to 30
31 to 40
41 to 50
51 to 60
61 to 70
Over 70
2. What is your occupation?
This question also was asked to determine what segment of the population this survey
reached. As noted earlier this was sent without regard to occupation in the hope that the
merit of the responses will warrant an unbiased outcome. 31.5% were in Education/HR,
14.8% in Sales, 13% Medical, 9.3% in Law, 7.4% Office/Admin, 1.9% Technology, and
20.4% were categorized as Other.
Occupation
Medical Field
Sales
Education/HR
Energy Sector
Technology
Office/Admin
Law
Other
9
3. Have you ever taken a finance or personal money management course?
Simply put, the reasoning behind this question was to find out the interest level and
possible motivation of the participants in a having previously taken a money management
course. 63% had never taken a finance or personal money management course, while
37% of the respondents said that they had taken such a course.
Have you ever taken a finance or
personal money management course
40
30 Have you ever taken a
20 finance or personal money
management course
10
0
Yes No
4. When did you first learn about retirement savings accounts (401K, IRA etc.)?
It is the intent of this question to determine whether any of the respondents did, in fact,
learn about retirement planning in an educational setting versus on their own or in the
work environment. 59.3% responded to having learned about retirement savings through
work, 18.5% in college, 9.3% taught themselves, 1.9% learned in high school, while
11.1% stated Other as an alternative to any of the options provided.
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When did you first learn about
retirement savings
High School
College
Work
I taugh myself
Never
Other
4. When did you first get a credit card?
Many of the problems that have plagued the economy in recent years stem from an
inability to manage credit. This question was posed in juxtaposition to the previous
question to determine whether or not individuals learned how to spend money before they
learned how to save it. 55.6% received a credit card between the ages of 15 and 20,
35.2% between 21 and 25, 5.6% from age 26 to 30, and 3.7% over the age of 30.
When did you first get a credit card
Before age 15
15 to 20
21 to 25
26 to 30
Over 30
Never
5. When did you first get a checking and/or savings account?
Similar to the previous question, this was posed to determine when individuals first began
to learn about saving and spending and the basic ideas behind financial institutions.
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48.1% opened accounts before the age of 15, with 44.4% between age 15 and 20, and
7.4% between age 21 to 25.
When did you first get a checking
and/or savings account
Before the age of 15
15 to 20
21 to 25
26 to 30
Over 30
6. I am knowledgeable about the stock market.
Given that the state of the United States economy is based almost entirely upon the
performance of various markets, I thought it important to determine how comfortable
people feel in that regard. 35.2% agreed that they are knowledgeable about the stock
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market, 33.3% disagreed, 16.7% strongly agreed, and 14.8% strongly disagreed.
I am knowledgeable about the
stock market
20
15
10 I am knowledgeable
about the stock
5 market
0
Strongly Disagree Agree Strongly
disagree Agree
7. I feel good about how I am saving for retirement.
Although, many purport to know about retirement savings instruments, the reality of their
actions may be similar or in stark contrast to their knowledge. 46.3% agreed to feeling
good about their retirement savings, while 37% disagreed, 9.3% strongly disagreed, and
7.4% strongly agreed.
I feel good about how I am saving
for retirement
25
20
15
10 I feel good about how I
5
0 am saving for
retirement
13
8. I wish that I had taken a course in personal money management while I was in
high school.
This specifically asks the question that I am trying to understand. 51.9% strongly agreed
that they would have liked to have taken a high school course in personal money
management, 35.2% agreed, 11.1% disagreed, and 1.9% strongly disagreed.
I wish that I had taken a course
in personal money
management while in high
school.
30
20
10 I wish that I had taken
0 a course in personal
money management
while in high school.
9. Would you be in support of a core high school level course that teaches the
fundamentals of finance surrounding personal money management, retirement
options, stock market analysis etc.?
As the final question, I thought it was important to lay my cards on the table to see if
getting anonymous responses would elicit the kind of feedback I was expecting or if it
would produce an alternative causing me to re-evaluate this proposal in its entirety.
75.9% strongly agreed that they would be in favor of such a course, 22.2% agreed, and
1.9% disagreed.
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I would be in support of a high school
level course that teaches
fundamentals of finance…
50
40
30 I would be in support of a
high school level course
20 that teaches
10 fundamentals of finance…
0
Strongly Disagree Agree Strongly
Disagree Agree
Beginning with question number seven, I offered the participants the option to elaborate
in their own words any opinions that they might have to any of the questions. At the risk of
becoming too verbose, I have chosen to share these responses below:
7. I am knowledgeable about the stock market
a. I know of the stock market and have some investments, but don’t really
understand it.
b. I have a stock broker that keeps me apprised of my portfolio and market
changes
c. I recall having to pick stock in the 6th grade and track it. I picked Braums. My
stock did really well.
d. I know how it works but don’t follow it or invest in it at all.
e. Lic. Stock Broker
f. I know a little but not enough
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8. I feel good about how I am saving for retirement.
a. Do not feel I started early enough. I lost money in 401K the last several years.
b. Wish I would have started earlier! To think how much I could have saved if I
started at age 18 or 19 when I started working.
c. um, I’m not, but I don’t have a job allowing for that (i.e. with a steady
paycheck)
d. absolutely no savings after the bust of the last couple of years
e. Heck if I know how to use those retirement calculators. I’m trying to raise 3
kids and can’t max out my 401 and feel guilty.
f. I’m participating in my 401K but that’s as far as my investment goes.
g. It’s really hard to save right now.
h. Since economy downturn, I have used a lot of my savings.
9. I wish that I had taken a course in personal money management while I was in
high school.
a. My father and grandfather talked tons about this stuff while I was a kid
b. I did take a course that included some money management (budgeting,
balancing checkbook, etc.), but not retirement/education planning.
c. I don’t wish that for myself, but it seems like a good idea overall for others.
e. Wouldn’t have listen-better to take course in college
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10. Would you be in support of a core high school level course that teaches the
fundamentals of finance surrounding personal money management, retirement
options, stock market analysis etc.?
a. Such a course is WAY more important for the future of our country than so
many others that are required, and certainly more important than most
electives.
b. This seems like a good idea. I don’t know if the average public school teacher
would be capable of passing the class, much less teaching it.
c. They should have to take a Dave Ramsey class. Financial peace university.
Credit cards come from the devil.
d. I’m pretty knowledgeable about personal money management in general, but
information about the stock market would have been helpful. I learned about
401K’s in high school, but from my parents, not from a classroom.
e. For some students
f. Having worked in the Financial Services industry, I’m shocked at adults that
don’t have a clue about the time value of money. I’m concerned that kids will
be worse off than their parents.
g. To also include what is a credit score and why you need good credit.
h. Mostly personal MM and retirement, and college savings.
In conclusion, given the limitations of this survey, I think that there is more that needs to
be known. For instance, the survey was distributed online and clearly hit one specific
demographic for age range more than any other. Additionally, more needs to be understood
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around the questions where there was a high response in the “other” category. I designed this,
though, so that it would flow from the general to the more specific in an effort to gather
information about the participants background regarding money – from when they first received
knowledge about spending (i.e., credit cards) to when they first received knowledge about saving
(i.e., 401K’s) to see if there is a disparity between the two. It was my intent to gather unbiased
data from the general population that could possibly be used as a course proposal at a future date.
Those that were willing to comment provided me some specific insight as to the pulse of the
participant, which I found encouraging and helpful in assisting me to potentially design an
instructional event around this topic. Question number ten elicited the strongest positive
response with only one participant disagreeing. To that end, I do feel that there is a strong need
to develop a course addressing the fundamentals of personal financial planning in a high school
setting.
Written Objectives
Understanding finance is a basic ability that is universally needed regardless of
occupation. Too often, adults find themselves in unfortunate financial situations that affect all
aspects of their personal lives. Many times, the mismanagement of money hits more than an
individual’s financial bottom line.
The proposed course is in an effort to arm individuals with, at the very minimum, the
basic knowledge that may prevent these unfortunate future financial straits. This course would
be one school year in length taking students through ongoing exercises – from tracking personal
stock/investment scenarios to building a small business model with an understanding of
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accounting basics. The beginning would focus on understanding overall concepts leading into
specific, “real-life” examples carried out through individual and group exercises.
Primary Learning Objectives:
1. To garner an understanding of the Time Value of Money
2. To learn about the stock market
3. Understand retirement savings options
4. To understand and articulate the pitfalls associated with debt accumulation
5. Have an understanding of financial planning
6. Personal Budget Analysis
7. How to value/run a small business
Specific Learning Objectives:
1. Understanding what it will take to retire at a desired age with the appropriate retirement
income
2. Understand the difference between stocks, bonds, mutual funds etc.
3. Learn the pros and cons of IRA’s and 401K’s
4. Understanding credit cards, mortgages, and car payments
5. Understand taxes, income protection, and retirement planning
6. Have a specific understanding of investments related to real estate, fixed income, stock
market, and mutual funds
7. Learn how to balance saving, spending and borrowing to achieve long and short term
goals
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8. Learn the basics of small business finance – income statements, cash flow statements,
and balance sheets
The intended outcome of this course is that students, when given specific scenarios, will be
able to articulate, with reasoning, the financial actions that they would employ. They should be
able to identify the differences between financial instruments and the basics of personal budget
management. Furthermore, individuals will choose a stock market portfolio that they will track
and update throughout the year evaluating their successes and failures. As a group, they will be
asked to create an idea for a company and how they would manage the financial operations in an
effort to understand the basics of accounting.
The intention of this course is not to turn young learners into future financial planners.
Rather, the course is designed for future employers and employees with the idea that they are the
CEO of their own personal finances so that they will look at monetary transactions with an eye
of scrutiny enabling them to make sound decisions.
Learning Assessment
As I have previously stated, understanding the basics of personal finance is a course that I
think would be beneficial if incorporated correctly into the core curriculum of secondary schools.
Regardless of occupation, understanding the fundamental tenets of saving, investing, and
spending are essential skills that can have beneficial outcomes if individuals are educated in the
ways of personal finance. To this end, I have proposed a few learning goals for a course as
follows:
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1. To garner an understanding with the ability to define the Time Value of Money
2. To learn and be able to articulate fundamental ideas about the stock market
3. Have the ability to evaluate the pros and cons of various retirement savings options
4. To understand and discuss the pitfalls associated with debt accumulation
5. Demonstrate a firm understanding of financial planning
6. Complete a Personal Budget Analysis
7. Articulate fundamental ideas behind how to value/run a small business
In order to assess whether or not participants have learned the goals as outlined, I propose
that each of these learning goals begin with a pretest followed by a post-test at the end of the
particular learning period. The pre-test is administered to determine a benchmark for what the
student may or may not already know about a particular subject. From a previous survey, I have
learned that, while most did not have an understanding and mastery of the proposed learning
objectives prior to entering the workforce, some did learn the basics of personal finance outside
of the classroom from family and other outside resources.
Results from the pre-test will then be compared to post-test scores to measure how well a
student has mastered a concept. As an example, utilizing the stock market learning objective, a
participant will take a test at the beginning of the semester determining how much they
understand regarding the differences between stocks, bonds, and mutual funds etc. At the end of
the semester, they will then take the same test to assess how far they have come in understanding
and articulating the pros and cons of each of these basic investment options.
The essential idea behind this course, however, is that students should be able to take a
problem based on a real life scenario, and as they investigate the question, apply the knowledge
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and decision-making skills acquired through the lessons to reach a solution. It should be noted
that many of the scenarios will not have one right answer and if a student can articulate and
defend reasoning behind his or her decisions through effective analysis, then the answer will be
considered correct. As a specific example, related to learning objective number 4 –
understanding the pitfalls of debt accumulation; an assessment would be structured asking the
following questions:
1. What is the difference between debit cards, credit cards and cash?
2. Name two advantages and disadvantages to using credit cards.
3. Name two advantages and disadvantages to using cash or debit cards.
4. Define the following terms:
a. Credit –
b. Principle –
c. Interest –
5. Define what a FICO score is and how it is determined.
6. In the following scenario determine which is the best loan for purchasing an automobile.
a. Loan A: Price of Car= $10,500, Rate=5.8%, term= 48 months
b. Loan B: Price of Car= $9,800, Rate= 6.5%, term= 48 months
c. Loan C: Price of Car= $10,500, Rate= 6.5%, term= 60 months
d. Loan D: Price of Car= 9,800, Rate=5.9%, term= 60 months
Explain how you got to your answer.
In conclusion, at the end of the learning period for Money Management in Secondary
Education, the instructor should be able to assess, based on a comparison of the pretest and post-
test results, whether or not the student has learned the individual learning goal. The student
should have a sound understanding of the basic definitions within each objective as well as
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possess an ability to articulate reasoning behind decisions when given real life financial
scenarios.
Content Outline
In the wake of the recent recession, it is more important than ever that the youth of today
are prepared in the ways of basic finance upon entry into the working world. To quote a recent
article from The Washington Post, “a five year old who can beg for a Happy Meal at
McDonald’s and then whine and cry when he doesn’t get one is more than ready to be schooled
in the economics of eating out.” (Singletary, 2010). Because even most college students do not
understand the basics of personal money management, yet, all are schooled in the ways of being
a consumer, it is imperative that this issue be addressed at a young age, preferably in the
secondary school system. There are possibly various ways in which this need can be addressed.
Following is a summary of my opinion in which the content of this course could be delivered.
In order to assess this need, The Money Management course for Secondary Education
will begin with each student taking a pretest assessment. Various questions will be asked as they
relate to the core objectives outlined below:
1. To garner an understanding with the ability to define the Time Value of Money
2. To learn and be able to articulate fundamental ideas about the stock market
3. Have the ability to evaluate the pros and cons of various retirement savings options
4. To understand and discuss the pitfalls associated with debt accumulation
5. Demonstrate a firm understanding of financial planning
6. Complete a Personal Budget Analysis
7. Articulate fundamental ideas behind how to value/run a small business
23
The purpose of this pretest is to assess the individual student’s knowledge as it relates to
each core objective prior to the learning activity. The objectives will follow in succession with a
preset timeline. Students will engage in individual reading assignments and problem solving
where it pertains to learning the fundamental definitions and equations needed for understanding
the basics of personal financial management.
Although the intent of the course will be to learn each objective and build upon it as a
foundation moving towards successive objectives, it is not altogether impossible or even
considered negatively if, within the fluidity of the learning environment through discussion,
these objectives bleed into each other. They are not mutually exclusive. It will be important that
students are able to pass a written test at the end of a session. However, more importantly is the
idea that they garner a firm understanding of the broad reaching concepts and the applicability of
these ideas as they will pertain to their financial choices later in life. To that end, not only
should they be able to pass a written exam, they should be able to articulate with reasoning why
they have made a specific financial choice.
As an example, with respect to the first objective, participants will learn the definition of
time value of money and how important it is to understand the concept that a dollar is worth
more today than the promise or expectation of that dollar in the future. Inherent in that statement
are multiple questions as to why this is the case. This will lead into a more in depth analysis of
interest (simple and compound) along with inflation, and the formulas behind understanding how
to calculate future value and present value. This first objective will likely encompass many of
the questions encountered when looking at the pitfalls of debt accumulation as well as objective
number six when they are asked to complete a personal budget analysis.
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Objective number two will be an ongoing game utilizing real stock market figures. Even
before students have an understanding of the market, they will be asked to choose a set number
of stocks, based on a predetermined income figure. The class will then track the progress of
those chosen stocks throughout the semester and students will have the option to buy, sell, or
hold them as needed. The intent of this exercise is to instill a competitive and fun atmosphere in
which the participants can begin to understand the joys and disappointments, as well as the
consistencies and inconsistencies of a sometimes volatile market. As the student learns more
about stock valuation and different investment tools, their views and habits may change while
“playing” the market.
The course will likely culminate with objective number six where the students will take a
look at what they would like to be doing with their careers and the potential financial rewards of
that particular career. They will then look at various financial factors that will likely need to
come into consideration, such as buying a house, cars, raising a family etc. depending on the
individual student’s desires. While students begin to formulize an idea of when they would like
to retire and how much money they will need upon retirement to continue a certain standard of
living, all of the previous objectives will come into play. They will need to understand that
saving $10,000 today will not equate to having $10,000 upon retirement when adding in
equations relating to objective one. Additionally, while having evaluated different retirement
options through objective number three, they will have incorporated an understanding of the
stock market from objective number two as well as the setbacks caused through purchases
related to objective number four with debt accumulation. The central idea, once again, is that
students walk away with a better idea about their future income potential and an overall picture
25
of how each of their financial decisions determine when they can expect to retire at a
predetermined standard of living.
The content for each of these objectives will be delivered through lecture, discussions,
and written assignments. The class will be structured where participation is encouraged for the
successful student. Through games simulating real life scenarios, the participants will learn to
articulate decisions with respect to money management. A sample syllabus is attached in
Appendix A.
It is not clear, yet, when and if objective number seven will come into play during the
overall instruction of personal finance for secondary education. The reason I have included this
as an objective is because I think that it is a good idea to begin to implant an idea of the basics of
accounting. While it may not be as important for some to understand how to interpret a cash
flow statement, a balance sheet, or a net income statement, the basic ideas behind assets and
liabilities is essentially the same as learning how to interpret personal income (revenue) and
expenditures (expenses). A basic understanding of how businesses are valued can only lead to
enhance a students’ financial acumen.
It is my hope that, upon graduation from this course, each of the students will walk away
with a better understanding of how their present decisions can affect future dividends.
Understanding how to handle finances is something that permeates all aspects from the
happiness, to the health of an individual. It is not relegated just to net worth. If a participant in
this class can express what he or she wants to do with his/her career and understand how the
financial decisions that they make will literally impact all facets of their quality of life; then I
cannot see how this course could not be considered a success.
26
Appendix A
Course Description
Money Management for Secondary Education is a semester long course open to students
in grades 9-12. This is a hands-on course with written and oral assignments (individual
and group)
The course will provide you with an awareness of personal money management. You
will learn how the basic principles of finance as well as how to plan a personal budget
and plan for the future through sound financial decisions.
Instructional Delivery
The course is delivered through lecture and in-class group discussions
You will be expected to pass a written exam at the end of each individual (objective)
lesson
You will be expected to work in groups on particular assignments
Course Objectives
To garner an understanding with the ability to define the Time Value of Money
To learn and be able to articulate fundamental ideas about the stock market
Have the ability to evaluate the pros and cons of various retirement savings options
To understand and discuss the pitfalls associated with debt accumulation
Demonstrate a firm understanding of financial planning
Complete a Personal Budget Analysis
Articulate fundamental ideas behind how to value/run a small business
27
Major Course Projects
Students will have various individual assignments as they relate to personal financial
decisions, due on specified dates tbd.
Students will participate in a stock market game, tracking the progress of their investing
skills over the course of the semester
You will be expected to choose a career and research potential incomes associated with
that career. You will then be asked to factor in a desired retirement age and standard of
living. Based on knowledge gained through previous assignments you will develop a
scenario determining how much and when you will need to start saving to reach your
predetermined retirement goal
Assessment
Graded through individual assignments, tests, and projects.
See Learning Assessment
GRADING SCALE
A+ 100 C+ 77-79
A 95-99 C 73-76
A- 90-94 C- 70-72
B+ 87-89 D+ 67-69
B 83-86 D 63-66
B- 80-82 D- 60-63
F 59-below
28
Appendix B
In preparing students to be skilled in articulating personal financial decisions, it will be
important that they have a mastery of each of the concepts previously mentioned. As noted,
these are not necessarily mutually exclusive and could bleed into each other, but they will need
to be tackled as individual tasks. As an example, the first objective states that the students
should be able to understand and define the Time Value of Money.
The section of the course would begin with the definition of the Time Value of Money.
The principle being that a dollar now is worth more than a dollar in the future. In order to
understand this principle, students will need to learn about basic financial tenets such as interest
and inflation. This section of the course would be broken down over a week to two week period
with the following goals:
1) Understanding basic financial terminology
2) Learn how to calculate compound interest over time
3) Problem solving as it relates to present value and future value
a. Example of PV: Suppose you are going to inherit one million dollars when
you are twenty-one. Assuming a five percent interest rate, what is the present
value of your inheritance if you are currently fifteen years old?
b. Example of FV: Calculate how much $10,000 dollars will be in twenty years
assuming a two percent compounding interest rate.
4) Explain how inflation works and real/nominal returns
a. For instance, if you are planning to buy your son a car when he is sixteen.
Estimating that the average car that you are going to purchase is $12,000 and
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your son will be sixteen in ten years; given that inflation has risen 4.5% for
the past twenty years, what will it cost to pay for this car in ten years?
b. Considering that you have just graduated from college and have a job that
pays $25K per year. What will your salary be in ten years if you are going to
maintain a real return of 2 percent, assuming that inflation averages 1.5%?
5) Understanding Annuities relative to TMV
a. Assuming that you retire at age 60 with a nest egg of $500K. If your
investment vehicles guarantee a 5% return and you think that you will live
until the age of 90 (i.e., another 30 years), how much can you expect to
receive each year based on a 5% return?
6) Working with Annuities in Present and Future Value
a. Assume two people want to buy your house. One person offers you $300,000
today, while the second person offers you thirty annual payments of $17,000.
Assuming a 5 percent interest rate, what is the present value of each offer?
Which person would you sell your house to?
b. When you graduate from college at age 22, you plan to invest $2000 per year
into a retirement account that earns 6.5 percent interest. What will be the
future value of your retirement account in twenty years? Thirty? Forty?
These are a few examples of the questions that the student will need to be able to answer
while completing this objective. Lessons will be prefaced with reading material such as, A
Student's Quick Guide to Understanding and Calculating Time Value of Money and its
Applications by Rik Hafer and Speros Margetis and/or Intro To The Time Value of Money by
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Ernest L. Martin. The reading material will be discussed in class followed with questions and
problems. As indicated earlier, after the lessons associated with this objective have been
completed, a test will be given to assess the students’ ability as the course moves into the next
week (2 week) session concerning the fundamentals of the stock market.
Program Evaluation
In proposing a Money Management course for Secondary Education, it will be of
paramount importance that I garner the advice and feedback of experts in the financial field as
well as participants in the program. As this is a course that I feel is long overdue and universal
in nature, it will be necessary to have buy in from all of the stakeholders involved. These
stakeholders will likely be teachers, administrators, and board members and may even include
parents, and volunteers who have a vested interest in the delivery of this type of education to our
young adults.
Formative
A formative evaluation of the materials should occur prior to, halfway, and towards the
end of the presentation of the course. As this type of evaluation is more qualitative in nature, this
will be conducted with the use of tools such as surveys, open and closed questionnaires, and
dialogue/feedback solicited from experts in the financial field as well as educators who may have
experience in the financial vertical.
These questionnaires/dialogues will ask about the material that will be used – everything
from the reading material to the tests as well as the overall methodology. If this does, indeed,
develop into a program where other instructors are actively engaged in teaching the course, I
would think that it will be important to understand the ease of use of the course material and
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gather any ideas for ongoing improvement. Examples of question used to gather this information
would be:
1) This course asked you to utilize the book, A Student's Quick Guide to Understanding
and Calculating Time Value of Money and its Applications by Rik Hafer and Speros
Margetis. Please mark how you felt about this material.
a) The material was easy to understand and translate in the classroom setting - Strongly
Agree, Agree, Disagree, Strongly Disagree
b) My students responded favorably to the material - Strongly Agree, Agree, Disagree,
Strongly Disagree
c) I would have omitted using this material in favor for other methods - Strongly Agree,
Agree, Disagree, Strongly Disagree
d) Please feel free to elaborate on any other methods you would like to see employed.
Regularly scheduled meetings should be held with those involved who have a stake in
this program. These meetings will be used to share findings and compare what has and has not
worked as the course develops. As mentioned, these stakeholders will likely include teachers,
administrators, board members, and possibly parents or members of the community. The
objective with this type of evaluation is to provide ongoing feedback that will continue to aid the
evolution of the course and the materials to be utilized.
Summative
As the summative evaluation is more quantitative in nature, this will more closely hinge
upon the pretest and post test that will be administered to the participants. The summative
evaluation will occur at the end of the course where it will be determined, with the aid of these
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tests, whether or not the student has learned each individual objective. Questions for this piece
may be posed as follows:
1) The course asked that you administer a pre-test to the students to assess their abilities:
a) The pre-test results were in line with what I expected - Strongly Agree, Agree,
Disagree, Strongly Disagree
b) The questions were adequately aligned with what I taught - Strongly Agree, Agree,
Disagree, Strongly Disagree
c) Please elaborate if there are questions that should be omitted or items that could be
added to further evaluate the assessment of the learners and the program
I also think that it will be important to gather honest feedback from the students regarding
their likes and dislikes with the course. This data will be collected through the use of surveys
delivered anonymously and will ask close ended questions as well open ended points of
discussion. By analyzing how students have performed on the final post test, in comparison to
the pretest, as well as utilizing their provided feedback, it can be determined if the course was
successful in teaching students to critically think about financial decisions as it relates to their
personal lives. Some examples of questions that might be posed to the students to garner their
feedback could be:
1) These questions will be utilized to value the overall gap/need and whether the value of
learning about personal finance was achieved.
a) I got out of this course what I put into it - Strongly Agree, Agree, Disagree,
Strongly Disagree
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b) I see the long term value of what I have learned through personal money
management - Strongly Agree, Agree, Disagree, Strongly Disagree
c) I did better on my post test than on the pre-test - Strongly Agree, Agree, Disagree,
Strongly Disagree
d) I have a firm understanding of the principles of the stock market - Strongly Agree,
Agree, Disagree, Strongly Disagree
e) I would recommend to my peers that they take this course - Strongly Agree, Agree,
Disagree, Strongly Disagree
f) What do you feel would make this course better or more complete overall?
Utilizing the gathered information, annual reports will be compiled that will present the
formative and summativefindings. These finding should be incorporated into the development of
this course on an ongoing basis as this type of evaluation should occur throughout the life of
program. It will be important to continually re-evaluate the delivery and content needed to most
effectively teach a money management course to our youth. It is my hope that in gathering
ongoing feedback from experts, teachers, participants, and the community in general, that this
program will evolve as a valuable and necessary part of the core curriculum within our high
schools.
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References
Elliott, L. (2010). Financial markets are still ruled by instant gratification. Retrieved from
http://www.guardian.co.uk/business/2010/sep/13/economics-recession-globalisation-
rebalancing-reform
O’Donnell, J. (2006). Gen Y sits on top of consumer food chain. USA Today. Retrieved from
http://www.usatoday.com/money/advertising/2006-10-11-retail-teens-usat_x.htm
Schaefer, S. (2010). Street rallies into fed Meeting. Forbes. Retrieved from
http://www.forbes.com/2010/09/20/briefing-markets-recession-over-stocks-
rally.html?boxes=Homepagechannels
Schiff, P. (2007). Crash proof: how to profit from the coming economic collapse. Wiley; 1st
American edition.
Singletary, M. (2010). We’re flunking personal finance. The Washington Post. Retrieved from
http://www.washingtonpost.com/wp-/content/article/2010/05/07/AR2010050705270.html
