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					                presents

  Building Native
       Communities
Investing for the Future




       Instructor’s GuIde
               Building
          Native Communities
                                   Investing for the Future
                                       INSTRUCTOR’S GUIDE

                  A Native community is more than the sum of its parts. It embodies the mystique
                  of community, the circle of inclusion. Within each member it generates powerful
                  feelings of cultural solidarity. That precious spirit cannot survive without the
                  underpinnings of economic development. But the development must be for
                  everyone—not for just a few. That is the Native understanding.


                  This Investor Education workbook is for Native communities. It is part of the
                  Building Native Communities series published by First Nations Development
                  Institute with support from the FINRA Investor Education Foundation.


                  The purpose of this Instructor’s Guide is to:


                  Provide a resource for teaching investor education in Native communities. We
                  hope that this will enable community members to realize their traditional values
                  by learning financial skills that will help each person make informed financial
                  decisions for themselves, their family, and their community.




FNDI                                                              FINRA Investor Education Foundation
First Nations Development Institute is a nonprofit organization   The FINRA Investor Education Foundation, formerly known as
that helps Native communities build sound, sustainable            the NASD Investor Education Foundation, supports innovative
economies. First Nations helps community members to identify      research and educational projects that give investors the tools
assets and build models to create and retain wealth in ways       and information they need to better understand the markets
that reflect the culture and desires of the people in those       and the basic principles of saving and investing. For details
communities. The strategy coordinates local grassroots projects   about grant programs and other new initiatives of the
with national program and policy development initiatives to       Foundation, visit www.finrafoundation.org
build capacity for self-reliant communities. For more
information, visit www.firstnations.org.
                                                     able
                                                    T of Contents
Introduction to the Instructor’s Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii
     Goals of the Investing for the Future Instructor’s Guide . . . . . . . . . . . . . . . . . . . . . . .iii
     Investing for the Future Curriculum Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iii
     Using the Instructor’s Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .iv
     Adult Learning Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .v
     Assessing Participants’ Financial Skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .v
     Using a Co-trainer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vi
     Training Preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vi
     Session Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viii
     Common Courtesies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ix
     Teaching Techniques . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .x
     A Note About Tests and Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiii
     Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiii
     Pluses and Wishes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiii
     Evaluations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiv
     Certificate of Completion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiv
     Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiv
     Final Note . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xiv
Session 1: Introduction to Investing and Basic Financial Planning . . . . . . . . . . . . . . . . . .1-1
Session 2: Starting your Financial Planning and Investing . . . . . . . . . . . . . . . . . . . . . . . . .2-1
Session 3: Investing for Your Golden Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-1
Session 4: Investing in Stocks, Bonds, and Mutual Funds . . . . . . . . . . . . . . . . . . . . . . . . .4-1
Session 5: Treasury Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5-1
Session 6: Refining Your Investing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-1
Session 7: Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-1


TABLE OF CONTENTS                                                                                                                               i
     Acknowledgments
     This Instructor’s Guide to the Building Native Communities: Investing for the Future
     curriculum was written by Vickie Oldman and was designed by First Nations
     Development Institute (FNDI) under the direction of Sarah Dewees, FNDI Director of
     Research, with support and funding from the FINRA Investor Education Foundation.

     Thanks to the InvestNative Investor Education Advisory Committee for their review of
     and feedback on this material. We extend our thanks to the following members of the
     advisory committee: Tom Arland, Southern Ute Growth Fund; Roseanna Belt, Qualla
     Financial Freedom; Lisa Deer, Salt River Financial Services Institution; Elke Chenevey,
     Merrill Lynch; Joanna Donohoe, First Nations OWEESTA Corporation; John Fryrear,
     NAFA Capital Markets; Robert Ganem, FINRA Investor Education Foundation;
     Bill Lomax, Native American Finance Officers Association; Luke Lopez, Waddell &
     Reed; Dean Parisian, Native American Advisors, Inc.; Mary Phillips, First Nations
     Development Institute; Lynn Rapp, Seacrest Financial Management; Tim Robbins,
     Consumer Credit Counseling of Montana; Michael E. Roberts, First Nations
     Development Institute; Stewart Sarkozy-Banoczy, First Nations OWEESTA Corporation;
     Gelvin Stevenson, Center for Environmental and Economic Partnerships, Inc.; and
     Susan White, Oneida Trust Department.




ii                                                    Investing for the Future INSTRUCTOR’S GUIDE
                                                       Introduction
Congratulations on taking the first step toward teaching investor education in your
community! We hope that you find this Instructor’s Guide useful in your work.
This Instructor’s Guide will cover some basic teaching tips and provide you with
suggestions for teaching investor education in a fun, engaging way.


Goals of the Investing for the Future Instructor’s Guide
To teach financial skills, instructors do not have to be experts in personal finance,
banking, or Native adult education. However, as an instructor, you will want to
approach and prepare for this kind of teaching by doing the following:

  • Familiarize yourself with the curriculum content. We highly recommend
    reviewing the materials carefully, preparing the exercises for participants, and
    practicing the presentation of each session prior to delivery.

  • Invite people like bankers, credit counselors, elders, or Native adult educators to
    assist with your sessions. These people can help answer participant questions
    and clarify ideas. If you include representatives from local organizations, this will
    also encourage participants to develop relationships with people who can serve
    as ongoing resources after the sessions. However, remind people that they
    should not use your training activities for promotional or sales activities of
    any kind.

  • Approach each session as a learning opportunity. If you are open and prepared
    to learn with and from your participants, they are more likely to share their
    knowledge and experiences. Challenge your participants to bring new ideas to
    each session.

  • Adapt the materials to meet your participants’ needs and develop your own
    creative teaching techniques that reflect your community’s life experience.


Investing for the Future Curriculum Purpose
The purpose of the participant workbook Building Native Communities: Investing
for the Future is to provide guidance to individuals interested in learning basic
financial investment skills. We hope this book will be useful for individuals thinking
about their own investment strategies. This workbook is designed to be used with
the Building Native Communities: Financial Skills for Families workbook, and it
assumes a basic knowledge of budgeting and finance.


INTRODUCTION                                                                                iii
     Using the Instructor’s Guide

     Content
     The Building Native Communities: Investing for the Future curriculum is organized
     into seven sessions. Each session follows a consistent format: Overview, Introduction,
     Terms and Concepts, and Activities.

     The first session serves as an introduction to investing. Sessions two through six are
     focused on key basic investment concepts with activities and exercises. Session seven
     is a review. The seven sessions are as follows:

            Session 1: Introduction to Investing and Basic Financial Planning
            Session 2: Starting your Financial Planning and Investing
            Session 3: Investing for Your Golden Years
            Session 4: Investing in Stocks, Bonds, and Mutual Funds
            Session 5: Treasury Securities
            Session 6: Refining your Investing
            Session 7: Review

     Structure
     This Instructor’s Guide is specifically designed to be of assistance to trainers. This
     guide will include:

       • Overview: Provides the trainer with a quick look into the session content.

       • Objectives: A list of skills and knowledge areas addressed in the session to be
         introduced to participants.

       • Time: An estimate of the time required to complete the session.

       • Teaching Methods: A list of suggested teaching techniques to use within the
         session: step-by-step activities, guided discussion, or individual reflection.

       • Suggested Materials Needed: A list of items needed for the activities.

       • Participant Materials: Participant workbook information and instructions for
         obtaining additional materials for teaching a specific concept.

       • Suggested Advance Preparation Tips: Additional tasks that the trainer may
         consider completing prior to the session, as well as notes on how to prepare for
         the session.




iv                                                      Investing for the Future INSTRUCTOR’S GUIDE
  • Activities: A step-by-step breakdown of the contents of each segment of the
    training session, including examples, suggested presentation, guided discussion
    questions, or exercises (individual or group).

  • Trainer Tip Box: Additional resources, teaching tools, exercises, or games for
    trainers to incorporate into the session, as well as notes on how to prepare for the
    session. For more information, visit the trainer section of www.InvestNative.org.


Adult Learning Principles
Adult participants enter a learning environment with their own set of experiences. As an
instructor, you may find yourself helping participants to overcome fears, insecurities, or
bad experiences in managing their finances. To create a positive experience, try to keep
the sessions hands-on and interactive.

Provide participants with time and exercises that encourage bonding. The group will
get more out of the curriculum if they act and feel like a team. As participants feel
comfortable, they will begin to open up and share their experiences and feelings.
When you conduct training it is useful to remember that participants often learn best
when they:
  • Apply new information to their own experiences and knowledge.
  • Are involved in interactive activities that reflect diverse learning styles.
  • Take responsibility for their own learning by identifying what they want to learn
     and feeling comfortable asking questions.
  • Evaluate their own learning.


Assessing Participants’ Financial Skills
Your preparation will be greatly enhanced if you are aware of participants’ level of
knowledge about personal financial skills. This information will help you tailor the
sessions to participants’ needs. You may or may not have a sense of participants’
personal financial skills based on previous contact with the group. Either way, you can
conduct a participant skill assessment prior to the first session.

Also, be aware that some participants may have learning disabilities or be uncomfortable
with basic reading and math skills. Be sensitive to people’s skill level and never force
participation. Having participants work in small groups may help to alleviate some of
these issues by creating an environment where peers can assist each other.

For samples of pre- and post-assessments, visit the trainer section of www.InvestNative.org.




INTRODUCTION                                                                                   v
     Using a Co-trainer
     If possible, inexperienced trainers should attend another trainer’s sessions or co-train
     with a more experienced trainer to increase their comfort level with the materials.
     If you are co-training, it is particularly important that you practice with your partner.
     Agree on transitions between you and your partner. Make sure that your styles blend
     for the benefit of the participants. The more comfortable you are presenting the
     material, the easier it will be for your participants to grasp the concepts and enjoy
     the session.

     Selecting a co-trainer to help deliver or assist in conducting a training session
     provides valuable support and also affords an opportunity to build collaborative
     relationships. Suggestions for selecting a co-trainer depend on the content of the
     session. You may decide to invite one of the following to serve as a co-trainer:
        • Representatives from local banks.
        • Representatives from local financial services firms.
        • Local investors.
        • Financial advisors.
        • Faculty from a local college.
        • Consumer Credit Counseling staff.
        • Staff from the tribal treasury department.
        • Staff from tribal investment committees.

     Note: If you do have a co-trainer or presenter from a local bank or financial services
     firm, make sure that you tell them that they should not use the training to market
     their products or services. Trainings should not be used for sale or promotional
     activities of any kind (including, for example, handing out company brochures or
     business cards).


     Training Preparation
     Preparation is critical to the success of your training. It can take two to eight hours to
     prepare for each session, depending on your experience presenting these concepts.
     Session preparation differs considerably depending on whether you are an insider or
     an outsider to the community.

     Most trainers will include the following in their preparation:
       • Reviewing the traditional concepts.
       • Reviewing the financial concepts.
       • Assessing participants’ financial skills.
       • Developing teaching tools and community-specific examples.
       • Recruiting participants.
       • Sending participants a welcome letter and copy of the curriculum.
       • Preparing and checking supplies.
       • Practicing the session presentation.


vi                                                      Investing for the Future INSTRUCTOR’S GUIDE
Reviewing the traditional concepts
Depending on your background, you may or may not be knowledgeable about
traditional resource management practices in your community. This material will be
most effective if you are prepared to share examples of your community’s unique
history and culture. Work with community resources such as elders or a community
historian to bring your people’s stories to the sessions. Encourage participants to
speak with members of their family or community and bring new ideas and
information back to the sessions.

Developing teaching tools and community-specific examples
Think about your participant group and effective strategies to connect with their life
experiences, learning styles, and interests. Try to learn as much as you can about the
types of jobs the people have, the stores they shop in, and what they buy. Use this
information to develop community-specific examples and exercises. You will want to
prepare your teaching tools and community-specific examples before each session.
Make sure that you have examples prepared for each exercise in case participants are
unable to come up with their own ideas. Be creative and don’t hesitate to modify
your techniques based on participants’ reactions and suggestions.

Recruiting participants
Unless you are integrating this curriculum into an existing program, you will need
to recruit participants. Recruiting participants is always easier if there is a reason or
reward associated with participation. For instance, this curriculum can be made a part
of an existing homeownership, employment, or adult education program. Or you may
find yourself recruiting participants on a volunteer basis. If this is the case, we highly
recommend that you work with community programs to publicize the benefits of the
program and supply free food!

Sending participants a welcome letter and copy of curriculum
Send the participants a letter reminding them of the date and time of the session. You
may also want to send each participant a copy of the agenda for the session, and a
copy of the workbook.

Preparing and checking supplies
Prior to each session, you will need to prepare your supplies. If you are using a flip
chart or overhead transparencies, make sure to prepare them ahead of time. You
might consider using two flip charts, one with prewritten material and another for
brainstorming and participants’ comments. We also suggest that you place your
overheads in clear plastic folders to protect them from wrinkling and to preserve
them for future use. If you are using a PowerPoint presentation, check your computer
connection and confirm you will have the right type of projector and screen. You also
might consider bringing toys for your participants to play with during the session.
Play Doh, Koosh balls or other small toys can help participants feel more comfortable
and give them something to do with their hands while they listen to your


INTRODUCTION                                                                                 vii
       presentation. Before each session, check your supplies to ensure that everything is in
       the order you desire.

       For a complete checklist of supplies, visit the trainer section of www.InvestNative.org.

       Practicing the presentation
       Practice is the best way to prepare yourself as an instructor. Despite your level of
       experience, take the time to practice your presentation. If possible, incorporate your
       teaching tools into your practice so that you are comfortable with the flow and
       transitions you will use during the actual session. We recommend that inexperienced
       trainers facilitate a practice session with a volunteer audience, such as family and
       friends, who will provide candid and constructive feedback.

       Community preparation for outsiders
       As an outsider to a community, you need to take special steps to prepare for teaching
       this curriculum. It is important that you partner with a community insider who will
       provide you with logistical assistance, cultural insight, and navigation through
       community dynamics. You will need to go through the same preparatory steps as
       community insiders with a special focus on learning about the community. Learn
       about cultural values, practices, culturally appropriate behavior, and common
       experiences for your participants. Learn acceptable ways to interact with people and
       become sensitive to their preferences. For instance, some communities have very soft
       handshakes or believe it is inappropriate for a woman to look a man in the eye. Pay
       attention to the way people interact with each other and their comfort (or
       discomfort) with your style.

       We highly recommend that you co-train the sessions with a member of the
       community. This is particularly important if you are non-Native since this curriculum
       is meant to reinforce a community’s traditional practices and values. Your co-trainer
       may play a central or minor role in the training, but he or she is critical to providing
       credibility and ensuring that the training reflects the experience of your participants.


       Session Time
       The time you will need to teach each session depends on your participants. Depending
       on the knowledge level and experience of your group, a session can take anywhere
       from an hour to a week. On average, most instructors take two to three hours per
       session. It is important to allow enough time for discussion and interactive exercises. As
       an instructor, you need to gauge your participants’ comfort and understanding of the
       concepts presented in each session. Pay attention to body language and repeatedly ask
       if participants would like you to slow down or go into further detail. Take the initiative
       to approach several participants during each break and ask them individually how the
       session is going. You may want to offer participants additional take-home exercises to
       practice new financial skills or provide office hours to answer specific or personal


viii                                                      Investing for the Future INSTRUCTOR’S GUIDE
  finance-related questions. As an instructor, you must always remember to build each
  session around your learners’ needs. Take time to make sure your participants
  understand the lessons and are having a positive experience.


  Common Courtesies
  It is a good idea to lay some ground rules for your class before you begin. We suggest
  that you write out some common courtesies on a flip chart and go over them with the
  class before you conduct your training. You can also ask the class if they have any they
  want to add. Here are some suggestions for common courtesies you may want to list
  on a flip chart:




                                                    sies
                                 Common Courte
                                 • Be respectful  to each other
                                                    meone is talking
                                 • Listen when so
                                                      humor
                                  • Keep a sense of
                                  • Help us stay  on schedule
                                                                     kberry
                                                     phones and blac
                                  • Disengage cell
                                     devices                             d learn
                                                       to understand an
                                   • Help each other
                                                       solutions
                                   • Look at positive
                                                       e valuable
                                    • All questions ar             le
                                    • Have fun an d meet new peop
                                                      s too!
                                    • You are expert                shop!
                                     • Help contribute to this work

Sample flip chart
(completed)




  INTRODUCTION                                                                               ix
    Teaching Techniques
    Trainers have found the following techniques effective with this curriculum. Often
    participants will benefit from having the same concept presented in several different
    ways. We encourage you to develop your own creative learning tools and we look
    forward to learning from your success.

      • Expectations. At the beginning of each session, ask participants to share their
        expectations for the session. List these ideas on a flipchart. Go through each
        participant’s expectation and affirm that it will be covered in the session. If a
        participant is interested in something that is not going to be covered in the
        session, make him or her aware of it at this time. If possible, arrange for the
        participants to receive the desired information or incorporate the issue into a
        future session.

      • Energizers. Energizers are participant exercises that promote comfort and
        interaction between people. They can be used at the beginning or in the middle
        of a session to help participants relax, get to know one another, or move
        around.

         For a list of energizers you could use, visit the trainer section of
         www.InvestNative.org.

      • Magic wall. The magic wall is a teaching tool and visual technique to present
        ideas and concepts. The magic wall is a large nylon cloth that you can get at any
        fabric store. It is sprayed with adhesive spray, which makes it sticky. The fabric is
        hung on the wall and used to post ideas and exercises. It is used to display note
        cards, illustrations, and other visual teaching tools. It is particularly effective if
        you select a bright-colored (blue or another color) piece of fabric and choose
        colorful paper to post with.

                                     Magic Wall




         For directions for how to make your magic wall, visit the trainer section of
         www.InvestNative.org.



x                                                      Investing for the Future INSTRUCTOR’S GUIDE
  • Small group activities. Whenever possible, ask participants to complete
    exercises in pairs or small groups. This assists people in overcoming their fears
    and helps them learn from their peers. Participants generally feel more
    comfortable working together and then sharing their answers with the larger
    group.

  • Discussion questions. Introduce ideas and concepts by asking participants to
    share their thoughts and experiences. Use open-ended questions that begin
    with how, what, where, when, or why. There are many discussion questions
    incorporated into the participant workbook and the Instructor’s Guide. Try to
    develop additional questions of your own to prompt participation.

  • Games. Interactive games are a great way to keep participants involved in the
    session. You can adapt any popular board game or game show to create a
    session exercise. “Jeopardy” has been very successful with past sessions.
    Participants seem most comfortable when they compete as teams, and they
    always appreciate winning small prizes. You can create a game for any of the
    sessions.

  • Role-playing. Use role-playing to increase participants’ comfort level interacting
    with financial institutions or other parties. Role-playing can include anything
    from mock interviews to “what would you do” scenarios.

  • Index card answers. This tool enables participants to maintain their anonymity
    while participating in a group exercise. This is particularly effective for exercises
    where participants are asked to share personal information.
    – Give participants index cards (or similar-sized cut paper) and ask them to
      answer questions from an exercise, writing one answer per piece of paper.
    – Write each question from the exercise on individual pieces of paper and hang
      them on the wall.
    – Ask participants to hang their answers below the appropriate question on the
      wall.
    – As you read through the answers as a group, participants usually discover that
      they have more in common with their peers than they expected. This
      approach gets participants moving around the room and helps them to feel
      comfortable sharing their personal experiences with the group.

  • Journal. You might consider asking participants to keep a journal as you work
    through these materials. At the end of each session, provide participants with
    time to record their thoughts and the most important concepts they have
    learned. For participants who are uncomfortable sharing their ideas with the
    group, this can be an effective tool to keep them involved and participating in
    the session.



INTRODUCTION                                                                                xi
      • Art. If your participants are visual learners, create opportunities for them to
        artistically illustrate concepts in the material. In particular, the traditional resource
        management components of the curriculum lend themselves to visual
        presentations. Encourage participants to develop illustrations for any of the
        concepts in the curriculum (e.g., a map of how money is spent in their household).

      • Puzzles. Another way to stimulate your visual, hands-on learners is by using
        puzzles. You can develop a crossword, find-a-word, or jigsaw puzzle. For example,
        you can make a jigsaw puzzle to reinforce any concept in the curriculum. You can
        retype the content you desire (no more than a single page) on your computer in
        a large font size (e.g., 14 or 16 point). Paste the page on a thin piece of cardboard
        or poster board. Then cut it up into puzzle pieces. You can also write with a
        marker on card stock, and cut it into puzzle pieces. If you make a number of
        copies, you can have participants work in small groups to complete the exercise.

      • Field trips. If possible, coordinate a field trip to a financial institution. Work with
        the financial institution to create an experience where participants are able to see
        how the organization works. If possible, provide participants with an opportunity
        to practice completing paperwork related to opening an account or applying for
        a loan.

      • Interviews. Participants can interview financial institution representatives or each
        other to get practice asking and answering questions.

      • Storytelling. Storytelling is a traditional Native teaching tool. If there are
        storytellers in the community, you may want to invite them to participate in your
        sessions. These community members can make a powerful contribution by
        sharing community stories that may support many of the ideas and concepts
        necessary for responsible financial management. You can also encourage
        participants to share personal stories, such as “your most embarrassing money
        story.” This type of bonding exercise can get the group talking after a break or
        during lunch.

      • Follow-up. Participants will learn new financial skills and incorporate them into
        their lives most effectively if there is reinforcement and follow-up with the
        concepts. Follow-up can be done in several ways:
        – At the beginning of each session, you can summarize what was covered in the
           previous session and ask if there are any questions.
        – Provide office hours when participants can come to ask questions or get
           individual assistance with their personal financial issues.
        – Partner with an organization that will provide office hours on the reservation
           to assist participants.
        – Telephone or send a follow-up letter to participants reminding them about
           future sessions and the personal assistance that is available.


xii                                                    Investing for the Future INSTRUCTOR’S GUIDE
A Note About Tests and Assessments
Some users of this Instructor’s Guide are teachers at tribal colleges or high schools.
We have designed sample test questions for each session that can be used for writing
tests and quizzes. Visit the trainer section of www.InvestNative.org for sample
multiple choice, true/false, and other test questions.


Glossary
A glossary of common financial terms is included in the back of the participant
workbook. Encourage participants to use this as a reference tool.


Pluses and Wishes
One way to get feedback from your
participants is to conduct a “Pluses
and Wishes” exercise. At the end of
your class, you should write on top
of the flipchart “Pluses and Wishes,”
and let students know you are
interested in their feedback. You
should ask participants to list
anything they liked as “pluses,” share
anything that could be different as
“wishes,” or choose to “pass” if they
don’t have anything to share or if
their responses/comments have
already been listed.

                                                              PLUSES             WISHES
                                                                                  Session
                                                              # Circle of
                                                                                   too short
                                                                life exercises
                                                                                  Session too
                                                               # Stories in
                                                                                   basic
                                                                 the session
                                                                                  
                                                               #

                            Sample flip chart
                            (completed)




INTRODUCTION                                                                                     xiii
      Evaluations
      At the end of each session, leave enough time for participants to evaluate the session.
      Evaluating your training will give you valuable information on how effective it was,
      how well it was received, what should be changed, and what should stay the same the
      next time you offer the training.

      Some participants will prefer to complete a written evaluation, and others would
      rather participate in a group discussion. Listen carefully to participants’ feedback
      because you can always find ways to make your training more effective. You may want
      to use the “Pluses and Wishes” format mentioned on page xiii.

      For samples of evaluation forms, visit the trainer section of www.InvestNative.org.


      Certificate of Completion
      At the end of the program, present each participant with a signed certificate of
      completion. Consider having a party or potluck to celebrate participants’
      accomplishment.

      For a downloadable certificate of completion, visit the trainer section of
      www.InvestNative.org.


      Disclaimer
      All names and examples provided in this workbook are fictional, except where
      otherwise noted. Any resemblances to actual individuals on their financial situation
      are coincidental.

      The suggested activities and instructions for this guide are mere suggestions and can
      be used for both novice and experience trainers. We suggest that you, as a trainer,
      tailor and customize sessions and activities for your specific community.


      Final Note
      This workbook was written to introduce tribal members to the world of investing.
      The information included is meant to teach and guide, to start you off in the right
      direction. It is neither an encyclopedia nor a comprehensive text. Please seek the
      counsel of a qualified financial advisor or investment professional if you feel you need
      further assistance.




xiv                                                     Investing for the Future INSTRUCTOR’S GUIDE
                                                                       Session 1
 Introduction to Investing and Basic Financial Planning


   Approximate Time Needed: 1 hour and 30 minutes of instruction

   Teaching Methods:                    Suggested Materials Needed:
   Activities (group and individual)    Flip charts & markers
   Exercises                            Index cards (5 x 8)
   Guided discussion                    Magic wall (more information provided on this below)
   Games                                Pencils & masking tape
   Individual reflection                Bell or chime

   Participant Materials:
     • “Building Native Communities: Investing for the Future” participant workbook
     • Agenda
     • Evaluation forms


                                                                                   Note: In order for
                                                                                   participants to feel
                                                                                   comfortable experiencing this
OVERVIEW                                                                           curriculum, it may be beneficial
                                                                                   if participants have taken a
This session provides participants with an opportunity to become                   basic financial education
acquainted with each other and with you as their trainer. You will also            course, have an existing bank
have an opportunity to describe the purpose and objectives of the                  account and demonstrate
training sessions planned. Participants will learn new investing                   they are ready to invest.
concepts, understand what it means to invest, identify investment                  Refer to the “readiness tool
goals, and understand the concepts of risk and diversification.                    kit” at www.InvestNative.org
                                                                                   to help you prepare part-
Learning Objectives:                                                               icipants for this curriculum.
On completion of this module, participants will:
  • Know who the other participants are in the training.
                                                                                   Visit www.InvestNative.org
  • Understand the overall structure of the training.
                                                                                   for examples of teaching
  • Understand basic investing terms, concepts.
                                                                                   tools, games, exercises,
  • Know what it means to invest.
                                                                                   sample evaluation forms, and
  • Identify investment goals.
                                                                                   other resources for teaching
  • Understand risks and returns.
                                                                                   concepts in Session 1.
  • Understand diversification.



SESSION 1 Introduction to Investing and Basic Financial Planning                                               1-1
      Suggestions for Advance Preparation:
      1. Decide on training location and develop training schedule (dates & time).
      2. Ensure that training room is large enough for participants, with seating in a
         U-shape, or tables in circles or rounds.
      3. Practice and review your notes for the session prior to the training for an easy flow
         of the information being presented.
      4. Prepare flip charts for the following: agenda, learning objectives, common
         courtesies, terms and definitions, introduction exercise, pages 7 and 21 from the
         workbook (read ahead to find sample flip chart pages), and “Pluses and Wishes” for
         group evaluation.
      5. Prepare one energizer to carry out after the break (go to the Resource Guide on the trainer
         section of www.InvestNative.org).
      6. Make magic wall – this is a large nylon cloth that you can get at any fabric store.
         This tool is optional and trainer can put flipcharts, index cards, and other pieces to
         illustrate concepts (see Resource Guide for instructions at www.InvestNative.org).

                                               Magic Wall




      WELCOME AND INTRODUCTIONS (15 MINUTES):
      Page 5

      Activity
      1. Blessing (this is optional): Start by having the host of the community welcome
         participants and, if appropriate to the community, have a local community member
         (particularly a well-respected elder) open with a traditional prayer. As a common
         courtesy, you may want to offer the person tobacco or a small gift.
      2. After the blessing, begin by introducing yourself and any other community hosts or
         sponsors that helped put the training together.
      3. Spend some time having participants introduce themselves in small groups at the table.
         Depending on the number of participants you have, you may want to do a large group
         introduction or have small groups introduce themselves. Give each table a prepared flipchart
         with the following headings: (1) name and tribe, (2) # of years experience with investment,


1-2                                                         Investing for the Future INSTRUCTOR’S GUIDE
   (3) expectations, and (4) animal you most relate to and why. Have each group select a
   transcriber and spokesperson who is prepared to share with the group at large. Have
   each person write their information on the flip chart, and then have one person report
   out by reading what is on the flip chart to the whole group.

Sample flip chart (completed)

Name & Tribe                                       # Of Years Exp. w/Investment
Anna Walker, Hopi                                 None
Cheri Tom, Sioux                                  2 years
Expectations                                       Animal You Most Relate To & Why
Understand my retirement account                  Deer, quiet and soft
Understand mutual funds                           Beaver, always busy


4. After groups have read what is on their flip
   charts and introduced their members,
   trainer will review expectations listed and
   confirm what will be covered or not covered.
5. Distribute the agenda and index cards for
   name tents. (Have participants make name
   tents and write their first names on front
   and back with a marker.)
6. Review the purpose and objectives on a
   prepared flip chart for this session.
                                                                                           sies
7. Review common courtesies pre-written on a                             Common Courte
                                                                                              each other
   flip chart for the class and ask                                      • Be respectful to
                                                                                            m eone is talking
   participants if they have additional                                  • Listen when so
                                                                          • Keep   a sense of humor
   courtesies to add to the list.                                                             schedule
                                                                          • Help us stay on                   kberry
                                                                                            phones and blac
8. If you decided to have table toys (silly                               • Disengage cell
                                                                             devices                           and learn
   putty, play-doh, puzzles, etc.) for                                                       r to understand
                                                                           • Help each othe
                                                                                                solutions
   participants in your session, be sure to                                • Look at positive
                                                                                               e valuable
   explain the purpose of why you have them                                 • All questions ar
                                                                                               eet new people
   on the table for the training session, which                             • Have fun and m
                                                                                              s too!
                                                                            • You are expert                   op!
   is so that people can have something to do                                                 e to this worksh
                                                                             • Help contribut
   with their hands while they listen to you
   talk. It also helps wake up the creative side
   of the brain!

                                      Sample flip chart
                                      (completed)

SESSION 1 Introduction to Investing and Basic Financial Planning                                                   1-3
      PA R T I C I PA N T PA G E




1-4                                Investing for the Future INSTRUCTOR’S GUIDE
GETTING STARTED (10 MINUTES):
Activity
1. You may want to begin the session with an alternative exercise called “My Money History.”
   Go to Resource Guide at www.InvestNative.org for instructions and facilitated questions.
2. Facilitate introductory discussion on investing on page 5:
   a) Ask participants: “Is having money to invest a new experience for many Native people, if
      so, provide some examples?” Listen to responses and list response on a blank flipchart.
   b) Share with participants that something new has happened in Indian Country. For the first
      time, a growing number of individual Native people—and their Nations—have money to invest.
   c) Share that, although sources of this new money may be different, including economic
      development, gaming, resources, or land claim settlements, this money needs to be
      managed, and managed well. Tell participants that investing will not make you rich,
      but it is necessary to help you reach your goals.
   d) Share that Native people often lack the experience and skills necessary to invest carefully
      and successfully. Even people with advanced degrees and a lot of formal education
      may know little about investing, with its specialized concepts, practices, and people.


MOTIVATING YOUR PARTICIPANTS (5 MINUTES):
Activity
1. Ask participants, “What is your financial goal?” and “What would make you most happy
   right now?”
2. Write participant answers on the flip chart.
3. Tell participants that there are many different paths one can follow to accomplish your
   financial goal. Investing is one of these paths.
4. Tell participants that investing will help them accomplish their goals.
5. Remind participants to keep these goals in mind throughout the training.
6. Throughout the training, remind participants of the goals they stated in this exercise.


WHO SHOULD USE THIS INVESTOR EDUCATION WORKBOOK?
(3 MINUTES):
Activity
1. Tell students that the workbook is designed for the following people:
   a) Youth receiving minor’s trust payments.
   b) Board members serving on tribal investment councils.
   c) Young professionals starting their first job.
   d) People who want to learn about investing.

SESSION 1 Introduction to Investing and Basic Financial Planning                                    1-5
      PA R T I C I PA N T PA G E S




1-6                                  Investing for the Future INSTRUCTOR’S GUIDE
BASIC INVESTING TERMS (3 MINUTES):
Page 6

Activity
1. Explain that before proceeding into the session, participants need to have a common
   understanding of terms that will be used.
2. Have participants quietly read the terms and definitions to themselves.
3. Ask for two volunteers. Give volunteers a bell/chime (some sort of pleasant noise
   maker) to ring when they see a term during the session.
4. Share with participants that they will do an activity later to review basic investment
   terms for this session.


WHAT DOES IT MEAN TO INVEST? (10 MINUTES):
Pages 6-11

Guided Discussion
1. Ask: “When you hear the work “Invest”, what does it mean to you?”
2. Give participants 1-2 minutes to write their responses on page 7.
3. Ask participants to share their responses, listen and write responses on a flipchart.




                                         the word
                              What does           ?
                                        ean to you
                              “invest” m
                              •



                                •



                                    •




SESSION 1 Introduction to Investing and Basic Financial Planning                            1-7
      PA R T I C I PA N T PA G E S




1-8                                  Investing for the Future INSTRUCTOR’S GUIDE
WHAT DOES IT MEAN TO INVEST? (CONT’D):
4. Summarize participants responses with the following points on pages 7 and 8:
   • Discuss the difference between “investing” vs. “saving”: Investing means putting your
     time or money into something with the expectation of getting something greater in
     return in the future. Savings is setting something aside to use later.
   • Share examples of how our lives are filled with investment decisions like having a
     savings account, buying a house, or helping your children pay for college.
   • Emphasize that investing is for only rich people is only a myth.
   • Discuss how our ancestors “invested” in strong bonds for their retirement.
   • Ask for other native specific examples.
5. Ask: “Can you give me some examples of the different types of investments?”
6. Listen and write responses on a flipchart.




      A participant at the investor education train-the-trainer event in Oneida, Wisconsin in 2007.




SESSION 1 Introduction to Investing and Basic Financial Planning                                      1-9
       PA R T I C I PA N T PA G E S




1-10                                  Investing for the Future INSTRUCTOR’S GUIDE
WHAT DOES IT MEAN TO INVEST? (CONT’D):
7. Refer participants to page 9 and review any types that were not mentioned:
   • Your health
   • Your personal relationships
   • Powwow regalia
   • Seeds to grow crops next year
   • New heifers to add to your herd
   • Education
   • Your own home
   • Your money in the bank
   • Stocks and bonds
   • Your tribe’s money
   • Your tribe’s other resources
8. Instruct participants to individually complete “Understanding Investing” exercise on
   page 10.
9. Refer to “Investing in Yourself” on page 11, as an example to get participants started.
10. Have participants report out on each of the different responses in exercise on page 10.




SESSION 1 Introduction to Investing and Basic Financial Planning                              1-11
       PA R T I C I PA N T PA G E S




1-12                                  Investing for the Future INSTRUCTOR’S GUIDE
INVESTMENT GOALS (15 MINUTES):
Pages 12-15

Transition:
Share with participants that since they now have a general sense of what it means to
invest that we will be transitioning to developing investment goals.
   • Ask: Why is it important to develop investment goals?
   • Listen to responses and share that investment goals help frame why you are
      investing, how long you are investing for, and what type of investing you should do.


INVESTMENT GOALS (10 MINUTES):
Pages 12-13

Exercise
1. Have participants fill out the worksheet on page 12. Explain to them that this gives
   them a chance to think about their investment goals for different phases of their life.
   Read some of the example goals:
   • Pay off debts
   • Buy a house
   • Get more education
   • Help kids go to college
   • Starting your own business
   • Retiring
2. Ask for any volunteers to share their investment goals for each age group:
   Child/Teenager, Young Adult, Adult, and Retired.
3. Then ask people to categorize their investment goals as either short term goals or long
   term goals (see first table on page 13). Ask for any volunteers to share a few of their
   long term or short term investment goals.
4. Now, tell the participants to categorize their short term and long term goals (see
   second table on page 13). Ask for any volunteers to share a few of their long term or
   short term investment goals.
5. Emphasize to people that this was an exercise to help people think about investing
   goals. Let them know that investment goals may change as they move around the Circle
   of Life, and therefore it is always important to revisit your investment goals every
   couple of years.




SESSION 1 Introduction to Investing and Basic Financial Planning                             1-13
       PA R T I C I PA N T PA G E S




1-14                                  Investing for the Future INSTRUCTOR’S GUIDE
SELF REFLECTION (3 MINUTES):
Page 14

Activity
1. Give participants some time to complete the self-reflection exercise. Mention that the
   answers to these questions will have an impact on how they design their investment
   strategy later.
2. If time permits, have participants quietly read the “Planning for the seventh generation”
   story and ask participants what they thought about the story and, if you want, ask
   them to share a story or example from their community.




      Participants at the 2007 investor education train-the trainer event. Signed investor
      education pledges are in the background.




SESSION 1 Introduction to Investing and Basic Financial Planning                               1-15
       PA R T I C I PA N T PA G E S




1-16                                  Investing for the Future INSTRUCTOR’S GUIDE
Transition and Jennifer’s Story:
Introduce “Jennifer” and explain how the class will be using her story through this
workbook. Refer participants to page 16 and ask for a volunteer to read the short story
about Jennifer out loud. Explain that Jennifer will be learning about investment at the
same time they are.


RISKS AND RETURNS (10 MINUTES):
Pages 17-20

Transitional Activity
Discuss that there is a need to learn some basic concepts about investing. The first of
these concepts is “risk and return.”

1. Share that almost everything we do has some risk to it. Give some examples:

 Activity                          Risk                            Reward
 Standing in line for a            You may not get a ticket        You might get a ticket for a
 rock concert                      and you wasted your time        really good seat near the stage

 Trying out for the                You might not get on the        You might get on the team
 basketball team                   team, and will have wasted
                                   your time



2. Inform participants that they need to know and understand certain concepts when
   thinking about investments.
   a) Share that they need to understand what “time horizon” and “bankroll” are, and
      how emotions affect investments (refer to page 17).
   b) Place each concept on a large card and place on the magic wall while explaining each
      theme.
      • Time Horizon – How long do you plan to have money invested before you use it for
        something?
      • Bankroll – How much you are willing to risk?
      • Emotions – What do your emotions tell you?




SESSION 1 Introduction to Investing and Basic Financial Planning                                     1-17
       PA R T I C I PA N T PA G E S




1-18                                  Investing for the Future INSTRUCTOR’S GUIDE
RISKS AND RETURNS (CONT’D):
Activity
1. Ask:
   a) Can anyone share a time when they did something that carried a risk?
   b) Was the risk worth it?
   c) Why or why not?
2. Read the “Conversation on the Navajo reservation about risk and reward” on page 20.
   Read it out loud or ask a student to read it. Ask what they thought of it.
3. Give participants a couple of minutes to write a personal example for themselves using
   the exercise on page 18.
4. Share that one of the basic concepts in financial investing is that to make larger
   returns on your investments requires more risk. And when you take more risk, you can
   lose money.

5. Explain that higher risk investments potentially produce higher returns. Your goal should
   always be to improve your returns without taking on too much additional risk. This
   requires being very smart about your investments and understanding your “risk
   tolerance,” which is how much risk you can afford to take or feel comfortable with.
6. Give participants a couple of minutes to complete the “How risk tolerant are you?” quiz
   on page 19.
7. Ask participants by a show of hands:
   a) How many got 6-10 pts?
   b) How many got 11-15 pts?
   c) How many got 16-20 pts?
   d) And how many got 21-24 pts?
8. Ask participants if anyone was surprised with their risk tolerance level.




SESSION 1 Introduction to Investing and Basic Financial Planning                               1-19
       PA R T I C I PA N T PA G E S




1-20                                  Investing for the Future INSTRUCTOR’S GUIDE
TYPES OF RISK (5 MINUTES):
Page 21

Guided Discussion
1. Share that now we know our level of risk, and that almost everything we do has some risk
   to it. Ask for some examples: standing in line for a rock concert, sporting event, etc…
2. Refer to “Earl’s risk calculation” story on page 21 as an example of something that
   carried risk but could also result in a “reward,” or payoff.
3. Share that part of becoming a good investor is again to understand some basic
   concepts. One is to understand the types of risk you face and another part is to know
   how much risk you can afford –
   both financially and personally.
4. Ask for three volunteers to read
   the three types of risk related to
   investing on page 21:
   a) Market risk
   b) Inflation risk
   c) Liquidity risk
5. Clarify any questions that
   participants may have about
   the types of risk. On a flip
   chart summarize discussion:


                                                                   Market Risk
                                                                                        value due
                                                                   Investment will lose
                                                                   to decline in marke t.

                                                                   Inflation Risk
                                                                                       keep up with
                                                                   Investment will not
                                                                    cost of living.

                                                                    Liquidity Risk
                                                                                        be available
                                                                    Investment will not
                                                                    when you need it.
                                Sample flip chart
                                (completed)




SESSION 1 Introduction to Investing and Basic Financial Planning                                       1-21
       PA R T I C I PA N T PA G E S




1-22                                  Investing for the Future INSTRUCTOR’S GUIDE
DIVERSIFICATION (5 MINUTES):
Pages 22-23

Guided Discussion
1. Tell the participants that another important concept to understand is diversification.
2. Ask: How many have heard of the old saying “Don’t put all your eggs in one basket?”
   What does that mean?
3. Ask for two volunteers to read the following story, “Conversation on the Fort Peck
   reservation about diversification,” on page 23.
4. Ask: What is the best way to reduce risk?
5. Emphasize that this topic will be covered in more detail in the next session.


   If time permits, ask a volunteer to read
   “Sheila’s Story” on page 24 out loud.
   Tell participants that this is based on
   a true story. Ask the following
   discussion questions:
   a) Do you know anyone who has made
       money investing in a house?
   b) Why is a house considered an
       investment? (Answer: because it
       increases in value over time, usually.)
   c) Would you benefit from buying a
       house?


REVIEW BASIC INVESTING
TERMS (10 MINUTES):                                                 Terms      Definitions

                                                                    Interest       refers to a period of
Activity                                                                           time
1. Prepare in advance the terms on one
   flip chart and definitions on another                            Term           is the profit earned
   flip chart in random order.                                                     on an investment
2. Depending on the number of                                                       is the amount paid
                                                                                                        in
                                                                     Return
   participants you have, you may have                                              return for the use of
   to break them into four groups.                                                   a certain amount of
3. Have groups collectively match the                                                money
   terms to the correct definitions.
   Review and answer any questions
   that participants may have.
                                       Sample flip chart
                                       (completed)


SESSION 1 Introduction to Investing and Basic Financial Planning                                             1-23
       PA R T I C I PA N T PA G E




1-24                                Investing for the Future INSTRUCTOR’S GUIDE
PLUSES AND WISHES (5 MINUTES):
Guided Discussion
1. Write on top of the flip chart “Pluses and Wishes” to get feedback
   from participants about this session.
2. Ask participants to list anything they liked as “pluses,” to share
   anything that could be different as “wishes,” or to “pass” if they
   don’t have anything to share or if their response/comment has
   already been listed.

Sample flip chart (completed)

PLUSES                                      WISHES
X Circle of life exercises                  Session too short
X Stories in the session                    Session too basic
X                                           

A Note on Evaluation
If you chose to hand out evaluation forms, the best time to do it is at the end of class.
Go to the Resource Guide on the trainers section of www.InvestNative.org for sample class
evaluation forms. You can also ask students to take the forms home and fill them out and
turn them in at the next class. This is a good way to receive feedback on your work, and to
get ideas for improving your training.



SUGGESTED HOMEWORK:                                                         www.InvestNative.org
Instruct participants to:
   • Read Session 7, page 143 – Review of Concept for session one.
   • Read Session 2 in preparation for the next class.
   • Review and revise if necessary your investment goal(s).
   • Spend some time to reassess your financial situation –
     Are you ready to invest?



                                                                                                    For additional
                                                                                                   exercises, games
                                                                                               and activities visit
                                                                                             www.InvestNative.org.



SESSION 1 Introduction to Investing and Basic Financial Planning                                               1-25
       PA R T I C I PA N T PA G E




1-26                                Investing for the Future INSTRUCTOR’S GUIDE
                                                                Session 2
                 Starting Your Financial Planning and Investing


   Approximate Time Needed: 1 hour and 30 minutes of instruction

   Teaching Methods:                    Suggested Materials Needed:
   Activities (group and individual)    Flip charts & markers
   Guided discussion                    Index cards (5 x 8)
   Games                                Pencils & calculators
   Exercises                            Masking & painters tape
                                        Bell or chime

   Participant Materials:
     • “Building Native Communities: Investing for the Future” participant workbook
     • Agenda
     • Evaluation forms




OVERVIEW
This session provides participants with an opportunity to become
acquainted with some basic investing tools – tools provided by financial
institutions, including checking and savings accounts, or other
accounts. In addition, participants will become familiar with new
investing terms, concepts such as compound interest, the time value of      Visit
money, and why it makes sense to begin saving and investing now.            www.InvestNative.org
                                                                            for examples of
Learning Objectives:                                                        teaching tools,
On completion of this module, participants will:
  • Know how to get ready to invest.
                                                                            games, exercises,
  • Identify types of bank accounts.                                        sample evaluation
  • Understand how compound interest works.                                 forms, and other
  • Understand the time value of money.                                     resources for
  • Understand inflation.                                                   teaching concepts
                                                                            in Session 2.


SESSION 2 Starting Your Financial Planning and Investing                                       2-1
      Suggestions for Advance Preparation:
      1. Practice and review your notes on this session prior to the training for an easy flow of
         the information being presented.
      2. You may wish to invite selected experienced speakers to serve as a resource for the
         session. You may want to invite a speaker from a local bank. Meet in advance to define
         the role they will play in the session. Remind them that they should not use this as an
         opportunity to sell products or services.
      3. Prepare flip charts for the following: agenda, learning objectives, common courtesies,
         and pages 28, 35, 38, 39, 41, 46, 47, 48, and 49 from the workbook. (Read ahead to
         see sample flip charts). You should also prepare flip chart for the “Pluses and Wishes”
         exercise.
      4. Prepare 26 large index cards for terms and definitions on pages 25 and 26. Put the 13
         terms on 13 cards, then put the 13 definitions on 13 different cards. They will be used
         for an exercise at the end of the session.
      5. Prepare one session starter and energizer to carry out after the break. (See Resource
         Guide in trainer section of www.InvestNative.org.)




2-2                                                       Investing for the Future INSTRUCTOR’S GUIDE
WELCOME AND INTRODUCTIONS (15 MINUTES):
Page 25

Activity
1. Blessing (this is optional): Start by having the host of the community welcome
   participants and, if appropriate to the community, have a local community member
   (particularly a well-respected elder) open with a traditional prayer. As a common
   courtesy, you may want to offer the person tobacco or a small gift.
2. Welcome participants back and introduce any new members to the group using a
   “session starter” (view Resource Guide for suggestions at www.InvestNative.org).
3. Spend a brief time introducing any guest speakers invited. Trainer may want to go
   around the room and ask participants if they have any questions from the first
   session.
4. Go over any other logistics, review common courtesies, and relevant information for
   participants.
5. Ask participants to share expectations for today’s session. Trainer will review
   expectations listed and confirm what will be covered or not covered.
6. Review learning objectives with participants.


Transitional Activity
1. Inform participants that our Native people have continued to demonstrate how to
   adapt to new situations.
2. Ask participants to provide examples on how Native people have adapted to new
   situations.
3. Trainer will listen to comments and validate responses in reference to adopting new
   ideas. Have an example prepared to share how Native people have traditionally developed
   tools to invest in the future and have also adapted to new situations, new tools, skills,
   and technologies.




SESSION 2 Starting Your Financial Planning and Investing                                       2-3
      PA R T I C I PA N T PA G E




2-4                                Investing for the Future INSTRUCTOR’S GUIDE
BASIC INVESTING TERMS (3 MINUTES):
Pages 25-26

Activity
1. Explain that before proceeding into the session, participants need to have a common
   understanding of terms that will be used.
2. Ask for two volunteers. Give volunteers a bell/chime (some sort of pleasant noise
   maker) to ring when they see a term during the session.
3. Share with participants that they will do an activity to check their knowledge and
   comfort level with the investment terms at the end of the class.


   Ask a volunteer to read Jennifer’s story on page 27 aloud. State that participants will
   start planning for their future during this class.




       A trainer at the 2007 investor education train-the-trainer event.




SESSION 2 Starting Your Financial Planning and Investing                                     2-5
      PA R T I C I PA N T PA G E S




2-6                                  Investing for the Future INSTRUCTOR’S GUIDE
GETTING READY TO INVEST (5 MINUTES):
Page 28

Guided Discussion
1. Ask participants, “What would be some basic steps that you need to take in order to
   begin investing?”
2. Write participant responses on a
   blank flip chart.
3. Trainer will then share another flip
   chart that has been prepared in
   advance that lists basic steps.
4. Ask participants to give
   themselves 1 point for each step
   they have already taken to get
   ready to invest. Ask who got a 6?
   A 5? A 4? A 3? A 2?
5. Talk about what people could do to
   get ready to invest.

                                                                                         vest:
                                                                    Getting ready to in
   Ask a participant to read                                        Basic money skills d a
   Jennifer’s story out loud                                        Set up a checking an
   (it’s on page 29).                                                 savings account
                                                                    Eliminate debt
                                                                     Set up a “rainy day” fund
                                                                     Think about why you are
                                                                       investing
                                                                     Think about savings andent
                                      Sample flip chart                 investing for retirem
                                      (completed)




SESSION 2 Starting Your Financial Planning and Investing                                           2-7
      PA R T I C I PA N T PA G E S




2-8                                  Investing for the Future INSTRUCTOR’S GUIDE
BANK ACCOUNTS (15 MINUTES):
Pages 30-37

Activity
1. Explain that for this session, participants will learn about several different types of
   bank accounts.
2. Share with participants that banks or credit unions can be found in many towns and
   that credit unions tend to offer similar, but fewer and different types of accounts than
   banks.
3. Discuss that a savings account may be a first investment for most people.
4. Ask participants what other accounts their banks have.
5. Inform participants that banks have a variety of accounts, such as checking accounts,
   savings accounts, money market accounts, and certificates of deposit (CDs).
6. Ask for four volunteers to read the following sections to the group at large:
  • Checking accounts (page 30)
  • Savings accounts (page 32)
  • Money market accounts (page 33)
  • Certificates of deposit (CDs) (page 34)




      A trainer at the 2007 investor education train-the-trainer event.




SESSION 2 Starting Your Financial Planning and Investing                                      2-9
       PA R T I C I PA N T PA G E S




2-10                                  Investing for the Future INSTRUCTOR’S GUIDE
 BANK ACCOUNTS (CONT’D):
 7. Ask participants to do the exercise on page 33 and get a volunteer to share answers.
 8. Trainer will then share another flipchart (or develop a PPT slide) that has been prepared
    in advance that summarizes the following bank accounts:


Example of what would appear on flip chart:


Type of account                 Risk                    Access                  Returns
Checking                        none (up to             Immediate, through      No interest or low
                                $100,000)               writing checks          interest rate


Savings                         none (up to             Can withdraw funds      Earns interest,
                                $100,000)               at any time             usually very modest


Money market                    none (up to             Can withdraw funds      Earns interest,
                                $100,000)               at any time, but        usually higher rate
                                                        possible limit on       than savings
                                                        number of               accounts
                                                        withdrawals per
                                                        month


Certificate of deposit (CD)     none (up to             Must wait until CD      Earns interest,
                                $100,000)               matures to withdraw     usually higher rate
                                                        money; face penalty     than money market
                                                        for early withdrawals   accounts




  SESSION 2 Starting Your Financial Planning and Investing                                            2-11
       PA R T I C I PA N T PA G E S




2-12                                  Investing for the Future INSTRUCTOR’S GUIDE
BANK ACCOUNTS (CONT’D):
9. Give participants five minutes to complete the exercise on page 37.
10. Ask for two volunteers to share their examples with the group at large.
11. Answer any questions related to the exercise. Let people know that the answers are in
    the back of the book if they want to check their work.


    Ask a participant to read Jennifer’s story on page 36 out loud. Ask the class,
    “Do you agree with Jennifer’s decision? Why or why not?”




Here is a story, courtesy of a teacher at Southwest Indian Polytechnic Institute.

                                         The Chipmunk
Have you ever watched a chipmunk? They gather things all spring and summer to hide away
for the long winter months. They don’t go hungry in the spring and summer, but they
always have something to set aside. When setting aside their food, they do not deprive
their families or themselves of anything – it doesn’t go against who they are as
chipmunks. But, when winter comes, they always have something to feed themselves and
their little ones. This is an example of saving and investing for the future.




SESSION 2 Starting Your Financial Planning and Investing                                    2-13
       PA R T I C I PA N T PA G E




2-14                                Investing for the Future INSTRUCTOR’S GUIDE
   COMPOUND INTEREST: HOW MONEY MAKES MONEY
   (10 MINUTES):
   Page 38

   Group Exercise
   1. You may want to begin the session with an alternative exercise called “So you want to
      be a Millionaire?” Go to the Resource Guide at www.InvestNative.org for instructions,
      handouts, and facilitated questions. This exercise may take about 10 minutes. Another
      good exercise to demonstrate compound interest is called “A Penny a Day” and can be
      found in the same place.

   Activity
   1. Describe how compound interest works by reading the definition: Compound interest
      refers to the ability of an asset to generate earnings (or interest), which are then
      reinvested in order to generate their own earnings. In other words, compounding refers
      to generating earnings from previous earnings. The nice thing about compound interest
      is that if you keep your interest earnings in your account, you begin to earn interest on
      your interest.
   2. Share that we have everyday examples of compound interest at work – a mortgage
      loan.
   3. Read examples on page 38 and instruct participants to complete “The power of
      compound interest” exercise.
   4. Read out loud: “Let’s go back to that $500 you’ve saved to invest. You’ve decided to
      put it into a CD that earns 3.5 APY. How much will that $500 grow in five years?”

Year 1   $500 (principal)            x   .035 (interest)      = $17.50   +   $500 (principal) = $517.50

Year 2   $517.50 (new principal)     x   .035 (interest)      = $18.11   +   $517.50         = $535.61

Year 3   $535.61 (new principal)     x   .035 (interest)      = $18.74   +   $535.61         = $554.35

Year 4   $554.35 (new principal) x       .035 (interest)      = $19.40   +   $554.35         = $573.75

Year 5   $573.75 (new principal)     x   .035 (interest)      = $20.08 +     $573.75         = $593.83

   (Answer: Total principal at the end of Year 5 = $593.83)


   5. Demonstrate years 1 and 2 for participants on a prepared flip chart with chart above.
   6. Ask for a volunteer to share the answer and show calculations on a prepared flip chart.


   Note:
   Be prepared to explain calculations for this exercise if the participants get calculations wrong.
   Also, tell participants that the answers are in the back of the book.


   SESSION 2 Starting Your Financial Planning and Investing                                               2-15
       PA R T I C I PA N T PA G E




2-16                                Investing for the Future INSTRUCTOR’S GUIDE
THE TIME OF VALUE OF MONEY (5 MINUTES):
Page 39

Guided Discussion
1. Ask participants if they can share an example of what “time value of an investment” is
   or means.
2. Draw an illustration of the cycle of growing and planting corn on a flip chart to
   illustrate this concept.




3. Share that Native people always kept some of the corn from each year’s harvest to
   plant the next year.
4. Explain that they could have eaten that corn right away; instead they saved and
   planted it. This meant that they were able to get many ears of corn the next year from
   just one seed planted in the ground this year.
5. Share with participants that this is an example of the “time value of an investment.”
6. Ask participants to share other examples.
7. Refer back to the exercise “So you want to be a Millionaire?” from www.InvestNative.org.
   Talk about how saving for the future can help you reach your monetary goals, whatever
   they may be.




SESSION 2 Starting Your Financial Planning and Investing                                      2-17
       PA R T I C I PA N T PA G E S




2-18                                  Investing for the Future INSTRUCTOR’S GUIDE
SO WHY SHOULD I INVEST MY MONEY? (5 MINUTES):
Pages 39-41

Activity
1. Share with participants that no matter what kind of return you get on your investment
   – large or small – time and compounding have big effects.
2. Explain that the annual percentage yield chart on page 40 will show returns on
   $100.00 at various rates and over various periods of time.
3. Explain that one of the ways we talk about compounding is by discussing an annual
   percentage yield.
4. Refer participants to the annual percentage yield chart and ask:
   a) If you invest $100 for 20 years and get a 7 percent return on your investments, how
      much would it be worth? (Answer: $386.97)
   b) If you invest $100 for 30 years and get a 9 percent return on your investments, how
      much would it be worth? (Answer: $1,326.77)
5. Ask if anyone is surprised at how much your money can grow.
6. Convey to participants that another good way to give you an idea on how your returns
   are performing is “the rule of 72.”
7. On a prepared flip chart write: 72 ÷ rate of return = the # of years needed to double
   your money.
8. Review examples in the black box on page 41.
9. Again, refer back to the exercise “So you want to be a Millionaire?” Talk about how
   saving for the future can help you reach your monetary goals, whatever they may be.




SESSION 2 Starting Your Financial Planning and Investing                                    2-19
       PA R T I C I PA N T PA G E S




2-20                                  Investing for the Future INSTRUCTOR’S GUIDE
THE POWER OF PERIODIC INVESTING (5 MINUTES):
Pages 42-43

Group Exercise
1. You may want to begin the session with an alternative exercise called “So you want to
   be a Millionaire … on a Budget?” Go to the Resource Guide at www.InvestNative.org for
   instructions, handouts, and facilitated questions. This exercise may take about 10
   minutes.

Note:
You may wish to discuss that this exercise is better for people who do not have large per
capita payments but are still interested in investing to become a millionaire. This exercise
is best used with young people (they have a lot of time to save money).


Activity
1. Ask participants if they think they need a lot of money to invest.
2. Share that it does not take a lot of money to invest.
3. Explain the power of periodic investing, and explain that this is the most common and
   effective way to invest.
4. Give an explanation that if a person consistently invests small amounts of money over
   time, they will see that time is their greatest ally.
5. Ask participants to take a look at the chart on page 42 that shows what investing
   just $100 a month can do.
6. Reveal that the chart compares the returns of a $100 invested each month (which
   doesn’t seem like much) for several years, assuming a 6 percent return on investment.
7. Discuss how over time and with a little patience and dedication how much you can earn!
8. Refer participants to the “Monthly investing” chart on page 43 and ask:
   a) If you invest $100 a month for 20 years and get a 7 percent return on your
      investment, how much would it be worth? (Answer: $51,538.15)
   b) If you invest $100 a month for 30 years and get an 8 percent on your investment
      how much would it be worth? (Answer: $146,477.45)
   Have them complete the exercise on page 43. Remind them that the answers are in the
   back of the book.




SESSION 2 Starting Your Financial Planning and Investing                                       2-21
       PA R T I C I PA N T PA G E S




2-22                                  Investing for the Future INSTRUCTOR’S GUIDE
THE POWER OF PERIODIC INVESTING (CONT’D):
9. If time permits, have participants quietly read “It is not timing the market, but time in
   the market” on page 44. Ask the following questions:
   a) What did you learn from this example?
   b) How much money do you think you could put away each month?
10.Ask participants to share additional thoughts about Mary and Tim in this example.
11. Stress to participants that $5.48 per day for the next 39 years can help prepare
    them for their future and their retirement. That’s a cup of coffee with a bagel!
12. Review the handout “Small Change is Big Money.” Go to web Resource Guide at
    www.InvestNative.org for handout.


THE PROBLEM OF INFLATION (10 MINUTES):
Pages 45-48

Activity
1. Ask: “What would be a major problem with investments that we may not think about?”
2. Share that the one problem with some investments is that they often fail to protect
   you against inflation.
3. Share an example on page 45: Jennifer invested $10,000 into a money market account
   that pays 3 percent interest. Then in 10 years, Jennifer gets her investment back; does
   she get the full return?
4. Ask: “Why or why not? What would happen over those 10 years?”
5. Answer: Prices have gone up because of Inflation!
6. Share that price increases are also called inflation and inflation can actually outpace
   the interest you’re earning on your investment!
7. Share that the U.S. Bureau of Labor of Statistics has a web page with information
   about the Consumer Price Index and other issues related to inflation. Learn more by
   visiting www.bls.gov/cpi.
8. Give each table a prepared flipchart of the “thinking about inflation” chart. Instruct
   each table to have each person contribute answers to each item on the list.
9. Have each table select a transcriber and reporter to report out results to the larger
   group.
10.Give participants about 5 minutes to complete this exercise.




SESSION 2 Starting Your Financial Planning and Investing                                       2-23
       PA R T I C I PA N T PA G E S




2-24                                  Investing for the Future INSTRUCTOR’S GUIDE
REAL RATE OF RETURN (5 MINUTES):
Page 47

Activity
1. Explain what the “real rate of return” is to participants (see page 47). Share that real
   rate of return is simply an investment’s annual return adjusted for inflation. On a
   prepared flip chart write out: annual return (or APY) – inflation = real rate of return.
2. Share the following example on the prepared
   flip chart:
3. Instruct participants to pair up with the
   person next to them and complete the “Real
   rate of return” exercise on page 47.
4. Ask participants:
   a) What is the real rate of return per year
      on your savings account for #1? (Answer:
      -0.5%)
   b) What is the real rate of return per year
      on your investment for # 2? (Answer:
      0.64%)
5. Refer participants to the “What is the impact
                                                                                             Y) –
   of inflation” exercise on page 48 and ask:                            Annual return (or AP
   a) If inflation is 3 percent, how much is $100                          inflation = RRR
       worth in 20 years? (Answer: $54.00)
                                                                         10 yr
   b) If inflation is 4 percent, how much is $100
                                                                         $10,000 investment
       worth in 25 years? (Answer: $36.00)                                3% interest
   (Remind people that answers are in the back                            2.5% inflation rate
   of the book.)
                                                                          3.0 – 2.5 = 0.5%
6. Share that the sooner you start saving the                                                l rate of return
                                                                          (gain) (lose) = rea
   greater the impact the power of compounding
                                                                                                     nd!
   interest will have on your nest egg.                                    ** Keep inflation in mi

7. Refer participants to page 49 and look at
   the black box.
8. Point out that a one-time $2,000.00
   investment at an 8% taxable return would
   grow to $6,344 in 15 years and to $43,449
   in 40 years!!!



                                    Sample flip chart
                                    (completed)


SESSION 2 Starting Your Financial Planning and Investing                                                   2-25
       PA R T I C I PA N T PA G E S




2-26                                  Investing for the Future INSTRUCTOR’S GUIDE
FIXED VERSUS VARIABLE INVESTMENTS (5 MINUTES):
Page 49

Activity
1. Present to participants that the most common question asked after learning the
   importance of investing is “What do I invest in?”
2. Explain that investments can be put into one of two categories: fixed or variable.
3. On a prepared flip chart explain the
   difference between fixed and variable.
4. Share that the next couple of sessions
   will teach us more about fixed and
   variable investments in greater detail.


   Ask a volunteer to read the story
   “Gerald’s baby” on page 50 out loud.
   Ask the following discussion questions:
   a) Do you know anyone like Gerald?
   b) What could Gerald do differently?
   c) What would you do if you had
      $45,000 today?

                                                                                             G
                                                                            FORMS OF INVESTIN
                                                                                              Variable
                                                                        Fixed
                                                                                              No set rate
                                                                         Set rate of return
                                                                                              or guaranteed
                                                                                              rate of return
                                                                         Examples:
                                                                                            2% Examples:
                                                                         Savings account at
                                                                                               Stocks
                                                                         CD
                                                                         U.S. Treasuries
                                       Sample flip chart
                                                                          Bonds
                                       (completed)




SESSION 2 Starting Your Financial Planning and Investing                                                   2-27
       REVIEW INVESTING TERMS (10 MINUTES):
       Pages 25-26

       Activity
       1. Prepare, in advance, investing terms on large 8 x 5 index cards and definitions on
          separate index cards.
       2. Give each person a term or a definition.
       3. Instruct participants to get up, go around the room, and find the person who has the
          correct term or definition that matches their card.
       4. Review and answer any questions that participants may have.


       PLUSES AND WISHES
       (5 MINUTES):
       Guided Discussion
       1. Write on top of the flip chart
          “Pluses and Wishes” to get
          feedback from participants
          about this session.
       2. Ask participants to list
          anything they liked as
          “pluses,” to share
          anything that could be
          different as “wishes,” or to
          “pass” if they don’t have
          anything to share or if their                           PLUSES           WISHES
          response/comment has                                                      Session
                                                                  # Circle of
                                                                                     too short
          already been listed.                                      life exercises
                                                                                    Session too
                                                                   # Stories in
                                                                                     basic
                                                                     the session
                                                                                    
                                                                   #

                              Sample flip chart
                              (completed)




2-28                                                       Investing for the Future INSTRUCTOR’S GUIDE
SUGGESTED HOMEWORK:
Instruct participants to:
   • Read Session 7 – Review of Concepts for Session 2, on page 143.
   • Read Session 3 in preparation for the next class.
   • Research the interest rates at their local or nearby financial institutions.
   • Visit www.bls.gov/cpi to learn information about the Consumer Price Index and other
     issues related to inflation.




                                                                           www.InvestNative.org



                                                                                                   For additional
                                                                                                  exercises, games,
                                                                                              and activities visit
                                                                                            www.InvestNative.org.



SESSION 2 Starting Your Financial Planning and Investing                                                      2-29
       PA R T I C I PA N T PA G E




2-30                                Investing for the Future INSTRUCTOR’S GUIDE
                                                               Session 3
                                             Investing for Your Golden Years


   Approximate Time Needed: 1 hour and 30 minutes of instruction

   Teaching Methods:                   Suggested Materials Needed:
   Activities (group and individual)   Flip charts & markers
   Guided discussion                   Index cards (5 x 8)
   Exercises                           Pencils & calculators
                                       Puzzle pieces
                                       Bell or chime
                                       Magic wall

   Participant Materials:
     • “Building Native Communities: Investing for the Future” participant workbook
     • Agenda
     • Evaluation forms




OVERVIEW
This session provides participants with an opportunity to become
acquainted with retirement options available to most people, and
explains why investing in retirement helps them take advantage of the
“time value of money” and possibly even save money if they use a tax-
deferred retirement plan.                                                   Visit
                                                                            www.InvestNative.org
Learning Objectives:                                                        for examples of
On completion of this module, participants will:                            teaching tools,
  • Understand how our Native ancestors viewed retirement.
  • Be able to identify types of retirement accounts.
                                                                            games, exercises,
  • Understand how to save for retirement.                                  sample evaluation
  • Understand how retirement accounts can help save on taxes.              forms, and other
                                                                            resources for
                                                                            teaching concepts
                                                                            in Session 3.


SESSION 3 Investing for Your Golden Years                                                      3-1
      Suggestions for Advance Preparation:
      1. Practice and review your notes on this session prior to the training for an easy flow of
         the information being presented.
      2. You may wish to invite a guest speaker who has some expertise in the area of
         retirement accounts. Some potential people are the human resources staff at the tribe
         who set up retirement accounts, or a representative from a local bank or financial
         services firm. Meet in advance to define the role they will play in the session and the
         information they will cover.
      3. Prepare flip charts for the following: agenda, learning objectives, common courtesies,
         pluses and wishes, and page 53 from the workbook. (Read ahead for sample flip charts.)
      4. Prepare puzzles with terms and definitions for the end of the session as review.
         (Have all the definitions and terms printed on cardstock paper and make puzzle shapes
         on the back and cut out shapes and put in a sandwich bag.)
      5. Prepare one session starter and energizer to carry out after the break (view the web
         Resource Guide for suggestions at www.InvestNative.org).




3-2                                                       Investing for the Future INSTRUCTOR’S GUIDE
WELCOME AND INTRODUCTIONS (15 MINUTES):
Page 51

Activity
1. Blessing (this is optional): Start by having the host of the community welcome
   participants and, if appropriate to the community, have a local community member
   (particularly a well-respected elder) open with a traditional prayer. As a common
   courtesy, you may want to offer the person tobacco or a small gift.
2. Welcome participants back and introduce any new members to the group using a
   “session starter.” View the web Resource Guide for suggestions at www.InvestNative.org.
3. Spend a brief time introducing any guest speakers invited. Trainer may want to go
   around the room and ask participants if they have any questions from previous
   sessions.
4. Go over any other logistics, review common courtesies, and relevant information for
   participants.
5. Ask participants to share expectations for today’s session. Trainer will review
   expectations listed and confirm what will be covered or not covered.
6. Review learning objectives with participants.

Transition Activity
1. Ask participants, “What is the difference between how we prepare for retirement today
   versus what our Native ancestors did in preparation for their retirement years?”
2. Listen and have participants comment and share their thoughts.
3. Inform participants that our Native people invested in land, home, and family ties to get
   them through their “retirement” years.
4. Share that today it is important to also invest financially for retirement.




SESSION 3 Investing for Your Golden Years                                                      3-3
      PA R T I C I PA N T PA G E S




3-4                                  Investing for the Future INSTRUCTOR’S GUIDE
BASIC INVESTING TERMS (3 MINUTES):
Pages 51-52

Activity
1. Explain that before proceeding into the session participants need to have a common
   understanding of terms that will be used.
2. Have participants quietly read the terms and definitions to themselves.
3. Ask for two volunteers. Give volunteers a
   bell/chime (some sort of pleasant noise maker)
   to ring when they see a term during the session.
4. Share with participants that they will do an
   activity to check their knowledge and comfort
   level with the investment terms at the end of
   class.


Ask a participant to read Jennifer’s story on
page 52 out loud.

Ask the class, “How many of your employers provide
a retirement plan? How many of you have scheduled
a meeting with the financial advisor to learn about
your retirement plan? Why or why not?”                                       Why invest in a
                                                                             retirement account?
As an opening to this session, consider doing                                Usually tax deferredmatch
“Investing For Your Golden Years Exercise.” Visit                            Your employer may
the web Resource Guide at www.InvestNative.org                                   your contribution
                                                                                                           e of
for instructions and facilitated discussion                                   You are taking advantagu yo
                                                                                 compound interest if
questions. This exercise may take 10 minutes.                                                       ent
                                                                                  start your retirem
                                                                                  investment early
                                                                                                      t en gh
INTRODUCTION TO RETIREMENT                                                     Social Security is nogingou
                                                                                   and is always chan
ACCOUNTS (5 MINUTES):
Page 53

Guided Discussion
1. Ask participants, “Why is it important to save
   for retirement?”
2. Write participant responses on a blank flip chart.         Sample flip chart
3. Then share another flipchart that has been                 (completed)
   prepared in advance that summarizes
   discussion from the black box on page 53.

SESSION 3 Investing for Your Golden Years                                                                3-5
      PA R T I C I PA N T PA G E S




3-6                                  Investing for the Future INSTRUCTOR’S GUIDE
TYPES OF RETIREMENT ACCOUNTS (15 MINUTES):
Page 53

4. Share with participants that they will become familiar with several retirement plans.
   Prepare in advance five large index cards with the following on each card: 401(k), 403(b),
                 ,
   Roth IRA, SEP and SIMPLE. Read aloud each card and place on the magic wall.
5. Refer participants to page 54 and share additional examples by reading the first
   paragraph of “The most perilous financial decade” out loud.
6. Ask, “Which major decade of life could be considered financially most dangerous: A
   person’s 30s, 40s, or 50s?”
7. Inform participants that the answer is none of these. Ask, “Why do you think the
   answer is none of the above?”
8. Listen to responses and summarize the discussion with the following points:
   • When a person completes their education (20s) is when budgeting patterns are
      established that can last a lifetime.
   • A person’s first career paycheck is also dangerous because of materialistic desires:
      nice car, clothes, jewelry, and a fashionable apartment with the large-screen TV.


Note:
If time permits, ask participants to read the second part of “The most perilous financial
decade” at the bottom of page 54 and all of page 55.




SAVING FOR RETIREMENT (5 MINUTES):
Page 56

1. Instruct participants to go to page 56 and quietly read and answer the questions in
   the exercise, “Saving for retirement.”
2. Ask, “What answer did you choose?” Share that the correct answer is C - $1,075,274.
   Emphasize that this illustrates the time value of money – it is important to start
   investing early in life, when time is on your side. Remember, “it is not timing the market,
   but time in the market.”




SESSION 3 Investing for Your Golden Years                                                        3-7
      PA R T I C I PA N T PA G E S




3-8                                  Investing for the Future INSTRUCTOR’S GUIDE
MORE ON RETIREMENT ACCOUNTS (10 MINUTES):
Pages 57-58

Group Activity
1. Prepare participants for group activity: comparing retirement accounts
2. Give each table two different retirement accounts (for example, 401(k) and SEPs) to
   read in small groups at the table. Give each table two prepared flip charts with the
   following headings: 1) Type of
   account, 2) When can you withdraw
   funds without penalty? 3) Who
   contributes, 4) Maximum
   contribution, and 5) When do you
   pay taxes?
3. Communicate to the class that the
   descriptions of the retirement
   accounts are on pages 57 and 59.
4. Have each group select a
   transcriber and spokesperson who
   will share with the group at large
   the completed flip charts.
5. Once all groups have reported out,
   refer participants to page 60,
   “Comparison chart of retirement                                                         1(k)
                                                                       Type of account: 40
   accounts” to see if they left out                                                       draw funds
                                                                       • When can you with
   any important information.
                                                                          without penalty?

                                                                        • Who contributes?
                                                                                         ution
                                                                        • Maximum contrib
                                     Sample flip chart                                    taxes?
                                                                        • When do you pay
                                     (completed)




SESSION 3 Investing for Your Golden Years                                                           3-9
       PA R T I C I PA N T PA G E S




3-10                                  Investing for the Future INSTRUCTOR’S GUIDE
WHAT IF I CHANGE JOBS? (5 MINUTES):
Page 59

Guided Discussion
1. Share with participants that a common question about retirement accounts is when a
   person changes jobs, what happens to the account? Share that depending on your plan,
   you can leave your funds where they are or “roll over” your account into an IRA when you
   move. Refer participants to page 59. Let people know that if they take money out of
   their plans when they leave a job, they probably will have to pay fines and also taxes on
   that money.


PENSION FUNDS AND DEFINED BENEFIT PLANS (OPTIONAL)
(5 MINUTES):
Page 58

Guided Discussion
1. Share with participants that now that they have a general understanding of these
   accounts, they need to know the difference between pension funds and defined benefit
   plans. Pension funds and defined benefit plans are another form of retirement accounts.
2. Ask for a volunteer to read page 58, “Pension funds and defined benefit plans.”
3. Provide a quick summary of the difference:
   Pension fund: is a fund set up by the employer to manage the investment of employee’s
   retirement fund.
   Defined benefit plan: is when employee’s money is invested and managed by an employer-
   sponsored plan based on a formula.


Have the class read about Jennifer on page 61.
Ask the class, “Do you know if your employer will match what you put away for your
retirement?” If they do not know, encourage participants to find out more about their
retirement plan.




SESSION 3 Investing for Your Golden Years                                                      3-11
       PA R T I C I PA N T PA G E




3-12                                Investing for the Future INSTRUCTOR’S GUIDE
Note:
If time permits, ask for a volunteer to read aloud about Leonard’s new job on page 62. Ask
the following questions:
    • How many of you know someone like Leonard in your family?
    • How many of you think that they would do the same thing? Why or why not?
    • How can we begin to encourage our young people like Leonard to begin to save for
      retirement?


Exercise: Jennifer’s Match
1. Ask participants to pair up with another participant at their table and complete the
   exercise “Jennifer’s match” on page 62.
2. Ask, “How much money will Jennifer have invested into her account at the end of 12
   months?”

                        Jennifer’s investment                  Employer match
                     Month 1              $150.00                 $150.00
                     Month 2              $150.00                 $150.00
                     Month 3              $150.00                 $150.00
                     Month 4              $150.00                 $150.00
                     Month 5              $150.00                 $150.00
                     Month 6              $150.00                 $150.00
                     Month 7              $150.00                 $150.00
                     Month 8              $150.00                 $150.00
                     Month 9              $150.00                 $150.00
                     Month 10             $150.00                 $150.00
                     Month 11             $150.00                 $150.00
                     Month 12             $150.00                 $150.00
                     Total                  $1,800.00            $1,800.00
                                                 Grand Total    $3,600.00




SESSION 3 Investing for Your Golden Years                                                    3-13
       PA R T I C I PA N T PA G E S




3-14                                  Investing for the Future INSTRUCTOR’S GUIDE
HOW TO SET UP A RETIREMENT ACCOUNT (10 MINUTES):
Pages 63-64

Guided Discussion
1. Share with participants that the best way to learn about how to invest your money is
   by reading up on the subject and then talking to an investment professional.
2. Share that if participants do not know an investment professional, they can talk to
   someone in the payroll or human resources department at their workplace.
3. Conduct the role-play, “Finding a Financial Advisor.” Go to the web Resource Guide at
   www.InvestNative.org for instructions and script.
4. Ask participants to share any personal experience in researching or meeting with an
   investment professional to learn more about their retirement plan.


Instruct participants to read about Jennifer on page 64.




       A trainer at the 2007 investor education train-the-trainer event.




SESSION 3 Investing for Your Golden Years                                                  3-15
       PA R T I C I PA N T PA G E S




3-16                                  Investing for the Future INSTRUCTOR’S GUIDE
SAVING FOR RETIREMENT (10 MINUTES):
Pages 65-67

Guided Discussion
1. Share with participants that discipline is what comes next. “You hear it all the time:
   save as much as you can for retirement.”
2. Communicate to participants that it is always a good idea to save for retirement. But,
   after paying all your bills, you are lucky to have anything left for savings.
3. Ask, “What do we need to keep in mind while saving for retirement?”
4. Write individual responses on a flip chart.
5. Refer participants to pages 65 and 67 to summarize discussion:
   • Planning.
   • Invest and stay invested.
   • Markets go up and down.
   • Invest for the long term.
   • Pay yourself first with your retirement plan.
   • Put your money to work for you.

Exercise: Watch Your Account Balance Grow
1. Refer participants to the chart on page 66 and ask, “If you save $40 per week for 20
   years how much will your account be worth?” (Answer: $90,294)
2. Ask, “If you save $10 per week for 40 years, how much will your account be worth?”
   (Answer: $113,742)

Mention to participants that the answers are in the back of their book.




SESSION 3 Investing for Your Golden Years                                                   3-17
       PA R T I C I PA N T PA G E S




3-18                                  Investing for the Future INSTRUCTOR’S GUIDE
HOW RETIREMENT ACCOUNTS HELP YOU SAVE ON TAXES
(5 MINUTES):
Pages 68-70

Guided Discussion
1. Ask participants whether they think the money that is invested for retirement is taxed.
2. Explain that they pay no income tax on their retirement plan until they take
   distributions from the plan. Emphasize that having retirement savings deducted out of
   their salary means that they will pay income taxes on fewer of the dollars that they
   earn.
3. Read Leon’s example on page 69: Leon earns $30,000 a year and decides to defer 5
   percent, or $1,500, a year to his qualified retirement savings plan. Leon will pay taxes
   on only $28,500 worth of income. The other $1,500 will not be taxable as long as it
   stays in the retirement account. Leon will reduce his federal income tax bill by $420.
4. Share with participants that Leon is actually saving an additional $420 for retirement,
   which normally would have been sent to Uncle Sam.
5. Remind class that while their money remains in the plan, all investment earnings are tax
   deferred.
6. Example: Leon and Anita retirement plan. Tell participants to turn to page 69 and look
   at the chart with Leon and Anita’s savings for retirement.


Refer participants to page 70 and ask a volunteer to read “Investing artisan profits for
retirements.” Ask participants what they learned from this example.




SESSION 3 Investing for Your Golden Years                                                     3-19
       PA R T I C I PA N T PA G E




3-20                                Investing for the Future INSTRUCTOR’S GUIDE
REVIEW OF BASIC INVESTING TERMS (10 MINUTES):
Activity
1. Prepare in advance the terms and definitions into puzzle pieces for each table.
2. Give each group a bag of that contains the puzzle pieces.
3. Have groups collectively complete the puzzle.
4. Review and answer any questions that participants may have.


PLUSES AND WISHES (5 MINUTES):
Guided Discussion
1. Write on top of the flip chart “Pluses and Wishes” to get feedback from participants
   about this session.
2. Ask participants to list anything they liked as “pluses,” share anything that could be
   different as “wishes,” or choose to “pass” if they don’t have anything to share or if their
   response/comment has already been listed.

Sample flip chart (completed)

PLUSES                                      WISHES
Puzzle                                     Session too long
Personal stories in the session            Hot coffee
                                           
                                                                               www.InvestNative.org
SUGGESTED HOMEWORK:
Instruct participants to:
   • Read Session 7 – Review of Concepts for Session 3,
     on page 144-145.
   • Read Session 4 in preparation for the next class.
   • Find out what type of retirement account your employer
     offers you.
   • Ask how much your employer will match what you                                                    For additional
     contribute to the plan.                                                                          exercises, games,
   • Do some research on your retirement account.
   • Set up a meeting with your financial advisor with                                            and activities visit
     a list of questions.
                                                                                                www.InvestNative.org.



SESSION 3 Investing for Your Golden Years                                                                         3-21
       PA R T I C I PA N T PA G E




3-22                                Investing for the Future INSTRUCTOR’S GUIDE
                                                                     Session 4
                  Investing in Stocks, Bonds, and Mutual Funds


   Approximate Time Needed: 3 hours of instruction (we recommend that you break
   it into two 1 1/2 hour sessions)

   Teaching Methods:                   Suggested Materials Needed:
   Activities (group and individual)   Flip charts & markers
   Guided discussion                   Index cards (5 x 8)
   Games                               Pencils & calculators
   Exercises                           Masking & painters tape
                                       Bell or chime
                                       Magic wall
   Participant Materials:
     • “Building Native Communities: Investing for the Future” participant workbook
     • Agenda
     • Evaluation forms

     Note: Because this session is quite lengthy, it is highly recommended
     to break it into two parts: Part I and Part II.


OVERVIEW
This session provides participants with an opportunity to become
acquainted with stocks, bonds, mutual funds, and other investment
options. Participants will also begin to understand how money is being
invested along with managing investments.
                                                                             Visit
                                                                             www.InvestNative.org
Learning Objectives                                                          for examples of
On completion of this module, participants will:                             teaching tools,
  • Be familiar with stocks, bonds, and mutual funds.                        games, exercises,
  • Understand asset allocation.                                             sample evaluation
  • Understand the roles of brokers.
  • Learn about taxes on investments profits.
                                                                             forms, and other
                                                                             resources for
                                                                             teaching concepts
                                                                             in Session 4.


SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                          4-1
      Suggestions for Advance Preparation
      1. Practice and review your notes on this session prior to the training for an easy flow of
         the information being presented.
      2. It is highly suggested that you invite an experienced financial professional to serve as a
         resource for this session. You may wish to invite someone from a local bank, financial
         services firm, or tribal treasurer’s office. Meet in advance to define the role they will play
         in the session and the information they will cover. Remind them that they cannot use
         this meeting to sell products or services.
      3. Prepare flip charts for the following: agenda, learning objectives, common courtesies,
         pluses and wishes, and pages 75, 84, 90, 94, 99, and 106 from the workbook. (Read
         ahead to find sample flip chart pages.)
      4. Prepare alternative exercise called “Understanding Stocks II.” (Go to the Resource
         Guide at www.InvestNative.org for instructions and additional handouts.)
      5. Prepare exercise, “What kind of investment Professional should I work with?” (Go to the
         Resource Guide at www.InvestNative.org)
      6. Prepare a crossword puzzle for terms and definitions. (Go to the Resource Guide for
         crossword puzzle at www.InvestNative.org.)
      7. Prepare one session starter and energizer to carry out after the break (view the web
         Resource Guide for suggestions at www.InvestNative.org).




4-2                                                         Investing for the Future INSTRUCTOR’S GUIDE
WELCOME AND INTRODUCTIONS (15 MINUTES):
Page 71

Activity
1. Blessing (this is optional): Start by having the host of the community welcome
   participants and, if appropriate to the community, have a local community member
   (particularly a well-respected elder) open with a traditional prayer. As a common
   courtesy, you may want to offer the person tobacco or a small gift.
2. Welcome participants back and introduce any new members to the group using a
   “session starter.” View the web Resource Guide for suggestions at www.InvestNative.org.
3. Spend a brief time introducing any guest speakers invited. Trainer may want to go
   around the room and ask participants if they have any questions from previous
   sessions.
4. Go over any other logistics, review common courtesies, and relevant information for
   participants.
5. Ask participants to share expectations for today’s session. Trainer will list
   expectations on a flip chart, review expectations listed, and confirm what will be
   covered or not covered.
6. Review learning objectives with participants.




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                       4-3
      PA R T I C I PA N T PA G E S




4-4                                  Investing for the Future INSTRUCTOR’S GUIDE
BASIC INVESTING TERMS (3 MINUTES):
Pages 71-72

Activity
1. Explain that before proceeding into the session participants need to have a common
   understanding of terms that will be used.
2. Have participants quietly read the terms and definitions to themselves.
3. Ask for two volunteers. Give volunteers a bell/chime (some sort of pleasant noise
   maker) to ring when they see a term during the session.
4. Share with participants that they will do an activity to check their knowledge and
   comfort level with the investment terms at the end of class.


GETTING STARTED WITH INVESTING (3 MINUTES):
Page 73

Guided Discussion
1. Share with participants that there are many ways to start investing.
2. Emphasize that they may have already opened a retirement account but would like to
   know what the account is invested in. Or they may want to start investing on their own
   by choosing some stocks, bonds, or mutual funds.
3. Share that this section will provide introductory information on stocks, bonds, and
   mutual funds, and will help them understand how to use these investment tools.


Read about Jennifer setting up her 401(k) on page 73.

Ask, “Who can relate to Jennifer’s feelings about learning new terms?”




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                      4-5
      PA R T I C I PA N T PA G E




4-6                                Investing for the Future INSTRUCTOR’S GUIDE
STOCKS (10 MINUTES):
Pages 74-76

Group Exercise
Note: Trainer may want to begin session with an alternative exercise called “Understanding
Stocks II.” Go to the Resource Guide at www.InvestNative.org for instructions, handouts
and facilitated questions. This exercise may take about 10 minutes

1. Open the discussion with “What is a stock?”
2. Share that a stock is a very common investment tool. When you buy stock, you become
   a stockholder in that company. You then become part owner of that company, including
   all its buildings, products, inventory and earning – or losses.
3. Ask participants: “What makes a stock attractive or what would make you select a
   stock?”
4. List responses on a blank flipchart.
5. Tell participants to go to page 74 to learn more information about stocks. Summarize
   these facts about stocks:
   • If the company grows, and if the stock market reflects that growth, then your
       investment will grow as well.
   • Over long periods of time, stocks have done better as an investment on average than
       bank accounts or bonds.
   • Investment professionals who choose stocks to buy do a lot of research on the
       companies offering stock. Review the questions listed on page 74.
   • Before buying stock, it is recommended that you work with an investment
       professional, or consider purchasing stock only as a part of a professionally
       managed diversified portfolio, or as part of a mutual fund.
   • If you decide to purchase individual stock you can start by thinking about what
       company you would like to be part owner of. Look around your home and see what
       products you use everyday. Refer to questions on page 74.
   • One key to successful investing is the purchase price. No matter how good the
       company is in all other respects, if you overpay when you buy stock, you may not
       make any money – even if the company does very well.
   • You want to buy a company’s stock when you think it will still go up, not when it has
       already peaked.




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                       4-7
      PA R T I C I PA N T PA G E S




4-8                                  Investing for the Future INSTRUCTOR’S GUIDE
Group Activity: Famous Dave’s BBQ, Inc.
1. Have participants turn to page 75 and quietly read “Famous Dave’s BBQ, Inc.”
2. Then divide participants into 3-4 groups and have them respond to the following
   questions on a prepared flip chart.
3. Have participants report out their responses and facilitate discussion asking “why or
   why not” would they invest in Famous Dave’s.

Individual Exercise: Good Investments
1. Give participants five minutes to
   complete the “Good investments”
   exercise on page 76.
2. Ask for any volunteers who would like
   to share their responses for this
   exercise.




                                 Sample flip chart
                                 (completed)                                              Inc.
                                                                      Famous Dave’s BBQ,
                                                                            this co
                                                                       • Does      mpany have a good
                                                                         future?
                                                                                         growing?
                                                                       • Is this company
                                                                                           d?
                                                                        • Is it well manage
                                                                                           rong product line?
                                                                        • Does it have a st
                                                                                            in Famous Dave’s
                                                                        • Would you invest
                                                                          BBQ, Inc?




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                                     4-9
       PA R T I C I PA N T PA G E S




4-10                                  Investing for the Future INSTRUCTOR’S GUIDE
DIVERSIFY YOUR INVESTMENTS (10 MINUTES):
Pages 77-79

Read to participants “Drumming for investment funds and taking a risk” on page 77. Ask
participants if they would have taken the same risk. Why or why not?


Guided Discussion
1. Share after reading about the northern drum group that it is important to know that
   most people do not buy only one or two individual stocks as an investment strategy. In
   fact, it is much more common – and smarter – to buy a collection of stocks, or shares
   in a mutual fund.
2. Tell participants that by investing in a portfolio of securities, you are diversifying your
   investment and reducing your risk of losing money. “Don’t put all your eggs in one
   basket!”

Group Exercise: “What kind of investment professional should I work with?”
1. It may be helpful to meet with a financial advisor for this exercise to make sure you
   understand the difference between each investment professional.
2. State that the goal of the exercise is to learn about different types of investment
   professionals you may be working with.
3. Ask for seven volunteers and instruct them to come to the front of the class. Give
   each volunteer a name card necklace with the names or acronyms of each investment
   professional listed on pages 78 and 79.




                            AIF                            CFP
                                            Broker


4. Have each volunteer read the description of each investment professional, which is
   written on the back of each card.
5. Ask participants the following questions:
   • Who would you use to help you plan for your retirement?
   • Who would you use to help you with your taxes?
   • When would you use a Registered Investment Advisor?
   • What about an Accredited Investment Fiduciary?
   • What the difference between a ChFC and a CFP?



SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                           4-11
       PA R T I C I PA N T PA G E




4-12                                Investing for the Future INSTRUCTOR’S GUIDE
BUYING STOCKS (10 MINUTES):
Guided Discussion
1. Instruct participants to turn to page 80. Tell them that the goal of the next exercise is
   to learn about buying stock.
2. Ask the following questions:
   • When you buy stock, does your money go directly to the company or to a seller?
     (Answer: When you buy stock, the money you pay goes to someone who already owns
     it and has decided to sell it. The only time the money used to purchase stock goes
     directly to the company is at the IPO (Initial Public Offering).)
   • What are some of the names of the markets where stock transactions occur?
     (Answer: NYSE, the American Stock Exchange, NASDAQ and others … this is what
     is referred to as the secondary market.)
   • Can someone tell me what the broker does? (Answer: The broker is someone who
     serves as a facilitator between the buyer and seller of the stock - that is, someone
     who serves as an agent for the transaction.)

Group Activity: Role-play
1. You may want to conduct the exercise called “Buying Stock.” Go to the Resource Guide
   at www.InvestNative.org for instructions, handouts, and facilitated questions. This
   exercise may take about 5-10 minutes.
2. Tell participants that if they wish to purchase individual stock, there are several ways
   to go about it:
   • Work with your investment professional.
   • Use a full-service brokerage.
   • Use your bank or credit union.
   • Use the Internet.
   • Talk with friends to get advice.


If you have time, ask students to read the box at the top of page 80, “Buy good value at
a fair price.”




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                         4-13
       PA R T I C I PA N T PA G E




4-14                                Investing for the Future INSTRUCTOR’S GUIDE
SMALL CAP VS. LARGE CAP STOCK (10 MINUTES):
Group Activity: Small Cap v. Large Cap Stocks

Using your magic wall put on large index cards the following: “ Micro-Cap –
Small Cap – Mid Cap – Large Cap Stocks”


                 Micro              Small                Mid         Large
                 Cap                 Cap                 Cap          Cap

1. Convey to participants that these terms refer to the size of different companies you
   may invest in and that it is good to know the risks and rewards associated with these
   different types of companies.
2. Pass out four index cards to each participant and ask participants to provide an
   example of each category.
3. Share that companies are classified by their market capitalization. As a general rule,
   the market capitalization is $5 billion or more for large caps, $1 billion to $5 billion for
   medium caps and $250 million to $1 billion for small caps. Some example of large cap
   stock include MicroSoft Corporation, and General Electric. A small cap company might
   be a start-up company that is just getting started.
4. Let participants also know that different investors define these categories differently,
   so it is best to look up definitions on the Internet.
5. Ask participants the following questions:
   • Which would you consider riskier: Small or large cap stocks? Why? (Answer: Small cap
     stocks are considered riskier, but are assumed to offer higher growth potential.
     Large cap stocks are considered less risky, but historically have experienced slower
     growth.)


Refer to the illustration on page 81 and tell participants that this is one way of thinking
of the stock market where buyers and seller come together.




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                            4-15
       PA R T I C I PA N T PA G E S




4-16                                  Investing for the Future INSTRUCTOR’S GUIDE
MORE ABOUT STOCKS (10 MINUTES):
Large Group Exercise: Reading the Stock Quotes in the Newspaper
1. Read all descriptions on pages 82 and 83 to participants and ask the following
   questions:
   • What is the highest price the stock traded for that day? (Answer: $27.17)
   • Did the stock go up or down since the last newspaper listing? By how much?
     (Answer: Up by 25 cents.)
   • Remind participants that the answers are in the back of the book.


DIVIDENDS (3 MINUTES):
Page 84

Guided Discussion
1. Refer participants to page 84 and ask a participant to read the “Dividends” paragraph.
2. Tell participants, “Dividends are profits given back to the stockholders and usually paid
   quarterly.”
3. Ask if there are any questions about this term.




        A participant at the investor education train-the-trainer event in 2007.




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                         4-17
       PA R T I C I PA N T PA G E




4-18                                Investing for the Future INSTRUCTOR’S GUIDE
STOCK MARKET RISKS (10 MINUTES):
Pages 84-88

Guided Discussion
1. Tell participants that they need to keep in mind that the stock market does not always
   act rationally, especially in the short run.
2. Illustrate this by using a flip chart and writing the example from the workbook on page 84.

Sample flip charts (completed)


                       2001                              Microsoft stock grew rapidly between
                                                         2004-2005. Very few stocks are this
  Enron
  $90.56/share to $0.30/share to                         successful!
  BANKRUPT                                               Stock price $100
                                                         SPLITING: 100 shares = 200 shares of
  Microsoft                                              stock at half the price
  $82.00/share to $41.50/share, but IPO                  You would have twice as many shares,
  was at $21/share = shows steadiness                    but the same investment


3. Tell participants that if the company you own stock in prospers, and it is well managed,
   your stock will likely rise in value. You can hold on to the stock or sell it to make a profit
   (as long as its value has increased, that is).
4. Ask participants, “What would be reasons why the value of your stock can drop?”
   Answers:
   • International crisis.
   • General pessimism about the future health of the economy.
   • Rising interest rates.
   • Product defects.
   • Higher oil prices.
   • Particular economic news like unemployment rate, consumer confidence, and
     economic growth.
5. Refer participants to page 87 and share that the illustration here shows growth of the
   S & P 500, an “index” of stocks, over the past several decades. (Note: inform
   participants that we will talk about indexes and index funds in the next chapter.)
6. Convey that, on average, stocks are good investments and have outpaced inflation over
   time. Share that large companies have grown at an average of 10.2 percent between
   1926-2003, and that small company stock grew at an average rate of 12.1 percent.

Ask participants if they have ever heard of the “bull market” and “bear market.” Ask for a
volunteer to read aloud page 85, “Bear and bull markets.”


SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                              4-19
       PA R T I C I PA N T PA G E S




4-20                                  Investing for the Future INSTRUCTOR’S GUIDE
Read about Jennifer’s latest investment journey with her son’s per capita payments on
page 86.

Ask, “What do you think Jennifer should do? Why do you think Famous Dave’s stock has
gone down?”


Exercise: How Stocks Perform in the Long Run
1. Tell participants to use the graph on page 88 to answer the following questions:
   • If you bought shares in the S & P 500 in 1980, and sold shares in 2001, would you
       have made money __X_ or lost money___?
   • If you bought shares in the S & P 500 in 2000, and sold shares in 2003, would you
       have made money___ or lost money _X__?
   • Remind participants that the answers are in the back of the book.
2. Wrap up the discussion by saying that in the long run, stocks perform better overall than
   bank accounts and bonds. However, stocks are not good investments for people with very
   low risk tolerance. Remember to keep up on the company’s progress and issues like foreign
   competition, rising costs, and slowing sales.


                                 Stay Invested for the Long Term

Here is a story, courtesy of an investment advisor.
Say you have just bought a home out in the country. You paid $100,000 for a nice 3-bedroom
house. You are very happy with it, you love the big yard, and you think you got a good price on it.
But after you moved in, you notice that the two homes next to you sell for less than your home.
Does that mean the price of your home went down? If so, does that mean you should sell your
home right away and move? The answer to the second question is no, you should not sell your
home right away and move. You would lose money in the short term, and there is a very good
chance that home prices in your area could go back up. You were probably planning to live there
for 10 years at least, so it is worth staying in your home to see if
home prices rebound in the area. There are a lot of people who
treat their stocks and mutual funds like that though – as
soon as the price goes down, they sell it, which means
they automatically lose money. A better way to manage
your investments is to watch what happens over the long
term, and to pay attention to trends. If a stock price
goes down one day, it may go back up the next, or in a
week or so. Remember, be patient, do your research, and
be willing to wait out ups and downs in the market.




  SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                              4-21
       PA R T I C I PA N T PA G E S




4-22                                  Investing for the Future INSTRUCTOR’S GUIDE
FINDING A BROKER (10 MINUTES):
Guided Discussion
1. When you become involved in world of investing it may be very overwhelming and
   cumbersome. It is suggested that if you have little experience then you should consider
   using a broker.
2. Conduct the role-play, “Finding a Broker.” Go to the web Resource Guide at
   www.InvestNative.org.
3. Once you complete the role-play, tell participants to turn to page 88 and refer them to
   the black box, which contains questions to ask a broker.
4. Say “Here are some questions that you may want to ask a broker”:
   • What is the “debt ratio” of the company? That is, how much debt does the company
     owe compared to its assets and profits?
   • Does the company face strong competition?
   • Are the company’s earnings predictable? That is, are the earnings fairly steady over
     the years?
   • Is the company’s management stable?
   • Do the company’s executives own stock in their own company?

Guided Discussion
1. Refer participants to page 89 and express that looking for a broker is like looking for
   Doctor.
2. Share the following example: “When you’re sick, you typically would visit a doctor. It would
   not be good if you tell the doctor that you had a sore throat and he prescribes
   medication and releases you.”
3. Why is this bad? “He did not conduct a general assessment to see if you really have a
   sore throat and what kind of sore throat it is and what other symptoms you have!”
4. Share that if your broker does not spend some time getting to you know you and
   conduct a general assessment of your needs and financial situations he/she is most
   likely not an ideal candidate to serve your needs.
5. Summarize key points on “Some words of advice on brokers”:
   • Role of a broker
   • Full service broker
   • Potential conflicts
   • Discretionary and non-discretionary accounts


                     *** This is a suggested point where you
                   can break this session into two classes.***


SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                            4-23
       PA R T I C I PA N T PA G E S




4-24                                  Investing for the Future INSTRUCTOR’S GUIDE
        *** This is where you could start Part II of this Session –
                  You could start the next class here.***
BONDS (2 MINUTES):
Page 89

Guided Discussion
1. Ask for a volunteer to read the short paragraph on page 88 on bonds.
2. Use a flip chart to discuss corporate and municipal bonds. Write “Corporate bonds” and
   “Municipal bonds” on the flip chart, and come back to them during your discussion.


CORPORATE BONDS (5 MINUTES):
Pages 90-92

Guided Discussion
1. Ask participants if they know the difference between a corporate and municipal bond.
2. Instruct participants to turn to page 90 and show the following on a flip chart:

Sample flip charts (completed)
 Corporate Bonds:                                        For Example: Wal-Mart
 • Are like an IOU/promissory note
 • Are for a corporation & not for the govt.             In 2000, Wal-Mart issued a 30-year
 • Don’t have the “full faith and credit”                maturity bond @ 7.55% interest rate
   on a US Govt. bond                                    • You bought a $5000 bond
 • More risky than US T-bonds                            • You get $377.50 interest/yr
 • Better rewards, higher interest rates                 • You get $188.75 semi-annually
 • Purchase thru a broker

3. Remember: A corporate bond can be a good investment if you want to receive a certain
   amount of interest at a particular time every year.
4. Ask participants if they know how to buy a corporate bond.
5. Corporate bonds are usually purchased through a broker, and prices and fees vary. See
   www.finra.org/RegulatorySystems for corporate bond transaction prices.
6. Inform participants that individuals usually pay more for corporate bonds than for other
   securities because it is difficult to get market price information. You just have to take
   your broker’s word for what’s a fair price, so it’s important to find a broker you trust.
7. Express that before you buy corporate bonds you should get quotes from several brokers. You
   should also visit the FINRA web site at www.finra.org/marketdata/, which gives current pricing
   information on all 23,000 corporate bonds, plus detailed information on the bonds.


SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                              4-25
       PA R T I C I PA N T PA G E S




4-26                                  Investing for the Future INSTRUCTOR’S GUIDE
If you have time, instruct participants to read page 91, “Choosing an investment professional.”
Ask, “What are the first steps you would take when choosing an investment professional?”


MUNICIPAL BONDS (5 MINUTES):
Page 93

Guided Discussion
1. Ask participants if they ever heard of the term, “Munis”?
2. Share with them that “Munis” is another term for Municipal bonds.
3. Refer participants to page 93. Share with participants that just like U.S. government
   and corporations, state and local governments (and some tribes) issue bonds.
4. Inform participants that sometimes a city or county needs to build a new school or
   swimming pool and they issue a municipal bond to raise money for their project.
5. Ask participants if they can provide any examples from their tribe or county.
6. Ask participants, why they think these types of bonds are appealing? (Answer: You
   don’t have to pay federal taxes on any interest you receive from such Municipal bonds.)
   Mention that since tribal governments do not pay the same taxes on their
   investments, Muni bonds are not always a good investment for tribes.
7. Share with participants that in term of limitations and commissions, municipal bonds
   cost about the same to buy and sell as corporate bonds.


Note:
In 2007, NASD changed its name to FINRA (Financial Industry Regulatory Authority). This
would be a good time to tell your class about this change. Mention that their workbook
refers to NASD still, but that the name is now FINRA. For more information, they can visit
FINRA's website at www.finra.org.




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                            4-27
       PA R T I C I PA N T PA G E




4-28                                Investing for the Future INSTRUCTOR’S GUIDE
BOND RATINGS (5 MINUTES):
Pages 94-95

Guided Discussion
1. Instruct participants to turn to page 94.
2. Inform participants that like getting your report card to see your progress in school, or
   a credit report to show your credit worthiness, bonds also get ratings.
3. On the magic wall, list these companies individually on index cards:


                          Moody’s           Standard &             A.M.
                                              Poor’s               Best


                                                          Fitch
                                   Dominion
                                                         Ratings

4. Share that these ratings must be requested by and paid for by the issuer, or the party
   that issues the securities (tribe or government). Share that not every bond is rated.
5. On a flip chart, draw the illustration on the bottom of page 94 to discuss the rating examples.

Sample flip charts (completed)

 Credit Risk                        Moody’s                   Standard & Poor’s
 Highest quality                    Aaa                       AAA
 High quality                       Aa                        AA
 Upper medium                       A-1, A                    A
 Medium                             Baa-1, Baa                BBB
 Speculative                        Ba                        BB
 Highly speculative                 B, Caa                    B, CCC, CC
 Default                            Ca                        C


6. Share that securities with ratings above Ba and BB are considered “investment grade.”
   Anything below that rating runs a risk of default, which is a risk of failure to pay its
   interest and, when due, its principal.
7. Inform participants that just because an issue is not rated does not mean that it is of
   lower quality than a rated issue. The rating primarily focuses on the issuer’s ability to
   pay interest on its debt and to repay the principal when due.
8. Point out that the safety of a bond – especially a municipal bond – can be improved by bond
   insurance. Communicate that you should ask your broker which bonds are insured. State
   that since bonds are considered safe, they generally pay slightly lower interest rates.

SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                               4-29
       PA R T I C I PA N T PA G E S




4-30                                  Investing for the Future INSTRUCTOR’S GUIDE
MUTUAL FUNDS (10 MINUTES):
Pages 95-96

Guided Discussion
1. Have participants go to page 95.
2. Ask participants if they are familiar with mutual funds.
3. Share that mutual funds have become one of the most popular ways to invest. State
   that most people don’t take the time to research individual stocks or read about
   different types of bonds. So instead they invest in mutual funds.
4. Point out that a mutual fund is nothing more than a collection of stocks and/or bonds.
   When you buy shares of a mutual fund, you buy a percentage ownership in a portfolio of
   a fairly large number of stocks and/or bonds. Share that a mutual fund is a lot like a
   pot of soup or stew, for example. When the cook (fund manger) makes stew (portfolio)
   he or she gets all of the ingredients (individual securities) together. What do you put in
   your stew? Potatoes, celery, onions, carrots, meat, spices, water and many other things.
5. The cook (fund manager) picks the best ingredients (individual securities) he or she can
   find and throws all of these things into the pot and cooks them together with the
   anticipation that the end result will be better than any single ingredient.
6. The cook (fund manager) should know from experience what is needed to make a great
   stew (portfolio).

Group Exercise: Understanding Mutual Funds
1. You may want to do the “Understanding Mutual Funds” exercise to illustrate the
   concepts of mutual funds. Go to the Resource Guide at www.InvestNative.org for
   instructions, handouts and facilitated questions. This exercise may take about 5-10
   minutes.




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                          4-31
       PA R T I C I PA N T PA G E S




4-32                                  Investing for the Future INSTRUCTOR’S GUIDE
ADVANTAGES OF MUTUAL FUNDS (5 MINUTES):
Pages 97-98

Guided Discussion
1. Ask: Can anyone tell me what are the advantages of a Mutual Fund?
2. Share that mutual funds are investment vehicles that satisfy two needs of many small
   investors:
   a) Risk reduction through diversification.
   b) Professional management.
3. Inform participants what “risk reduction through diversification” means to investors.
   Diversification is a way most investors reduce risk, by investing in more than one kind of
   security. That way, if the price of one stock goes down, hopefully that will be offset by
   an increase in another stock.
4. Point out that with mutual funds, you get instant diversification by investing in one
   thing – the fund!
5. Share that when you buy into a mutual fund, you are buying small parts of hundreds of
   companies. This helps to lessen your risk.
6. Use an example of riding an elevator: If you were riding in an elevator that had just one
   cable pulling you up and down and that cable broke, you’d be in trouble. However, if you
   were riding in an elevator that had many cables pulling you up and down and one cable
   broke, you would still be safe because the other cables would hold you up.
7. Share that those cables are the different stocks that the fund owns.
8. Convey what “professional management” means to investors. Professional management
   is the second advantage to owning stock in a mutual fund. This basically means that
   the mutual fund is managed by one person or a team of people responsible for the
   performance of the fund.
9. Point out that having a professional money manager handle their mutual funds is
   better than constantly worrying about their stocks each day.
10.Share that another advantage of mutual funds is that you can decide what type of
   industries or sectors to invest in – technology, medicine, utilities, etc.


Ask a participant to read Jennifer’s story on page 98 out loud. Ask, “Do you ever get
these types of emails? Have you ever responded to one? Do you know someone who has?”




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                          4-33
       PA R T I C I PA N T PA G E S




4-34                                  Investing for the Future INSTRUCTOR’S GUIDE
DIVERSIFICATION THROUGH ASSET ALLOCATION
(10 MINUTES):
Pages 99-102

Guided Discussion
1. Have participants turn to page 99. On a flip chart, explain asset allocation. See flip
   chart to right.
2. Share that asset allocation means
   dividing investments between assets
   like stocks, bonds, and cash or “cash
   equivalents,” meaning money market
   funds or bank accounts.
3. This allows the portfolio to earn
   interest with some investments that
   are little risk (bonds) and some
   investments that are more aggressive
   (like stocks).
4. Also, investors should make sure that
   their asset allocation funds include
   some cash or “cash equivalents” such
   as bank accounts or money market
   funds, so that they can have                                            Stocks                     Bonds
   immediate access to them (high
   liquidity).
5. Direct participants to page 100 to
   look at some examples of asset
   allocation.
                                                                                                        Money
6. Take some time to review and ask                                            Bank                  Market Funds
   participants what they see happening.                                     Accounts
                                                                                            Mutual Funds
7. Ask participants to compare the ratio
   of cash, bonds, and stocks in different
   examples of asset allocation – from
   conservative to aggressive investing.
   Ask, “Which assets are most safe and
   which are most risky?” (Answer: Cash
   and cash equivalents are most safe
   and stocks are most risky.)
                                                             Sample flip chart
                                                             (completed)




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                                     4-35
       PA R T I C I PA N T PA G E S




4-36                                  Investing for the Future INSTRUCTOR’S GUIDE
DIVERSIFICATION THROUGH ASSET ALLOCATION (CONT’D):
Pages 99-102

Individual Exercise: Different Investments Grow at Different Rates
1. Looking at the chart on page 101, ask the following questions:
   • If you could predict the future in 1945, what would you invest your money in,
      assuming you were going to cash out in 2004? Why? (Answer: Small company
      stocks, because they have grown so much)
   • When would have been the worst time to buy small company stock assuming you
      needed to take your money out of the market in 1975? (Answer: 1965, because small
      company stock went down between 1965 and 1975)
2. Use the chart on page 101 to discuss the fact that stocks have done better than
   bonds over the long term.
3. Tell the participants, “This chart also illustrates the fact that the prices of securities
   go up and down all the time.”



                                  Trading with the River Tribes

Here is a story, courtesy of an investment advisor.

Historically, many of the tribes along the Missouri River in the Midwest would gather in key
locations on the riverbanks to trade in berries, hides, and other goods. People were very
careful about how they managed their resources in their canoes. They always distributed
their goods among many canoes, so that if one canoe capsized, there would still be other
canoes that held goods for trading. This is an example of diversification – distributing
resources among many different canoes so you don’t “keep all your eggs in one basket,” or
don’t lose all your goods if one canoe capsizes.




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                          4-37
       PA R T I C I PA N T PA G E S




4-38                                  Investing for the Future INSTRUCTOR’S GUIDE
BUYING MUTUAL FUNDS (3 MINUTES):
Page 103

Guided Discussion
1. Instruct participants to turn to page 103 and state that mutual funds sell shares to
   the public and then use that money to purchase securities.
2. Share that the mutual fund manager makes the investment decisions and your
   holdings rise or fall with the value of the mutual fund’s portfolio.
3. Inform participants that many mutual funds can be purchased directly from the fund
   company or, in some cases, through a broker. Let participants also know that there are
   several large mutual fund companies that sell “families” of mutual funds. Investors can
   find these funds in newspapers or through an Internet search engine.


FEES (10 MINUTES):
Pages 103-105

Guided Discussion
1. Mention to participants that, unfortunately, money managers don’t work for free. When
   using a manager, there will be fees associated with their services.
2. Share that mutual fund investors pay a management fee that covers most
   administrative costs and commissions. Some funds (called load funds) also impose
   sales charges. These loads are paid when a purchase is made (front-end loads), or when
   the shares are sold (back-end loads). In addition, there are many no-load funds that
   charge no sales fees (but still charge management and administrative fees).
3. Stress that it is important to consider fees when making your investment decision.
   Over time, an extra half or even a full percentage point being paid out of your account
   for fees every quarter can add up to a hefty sum.
4. Point out to participants that many investors put their money into “no-load” mutual
   funds to avoid excessive fees.
5. Refer participants to page 104 and share the example about how fees can add up over
   a long period of time.
6. Refer participants again to page 104. Share that a useful tool for comparing the
   impacts of fees for mutual funds is available from FINRA. Visit www.finra.org, go to
   Investor Information on the right side of the top menu bar, and then Fund Expense
   Analyzers on the menu bar on the left-hand side of the screen.
7. As a final note, price is not always the most important variable. Remember that there
   are two things about prices in the investment industry:
   • You can often find lower prices by shopping around.
   • Many prices are negotiable.


SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                       4-39
       PA R T I C I PA N T PA G E S




4-40                                  Investing for the Future INSTRUCTOR’S GUIDE
MUTUAL FUND EXERCISE:
Exercise: Reading Mutual Funds in the Newspaper
1. Read the exercise on page 105 and ask a volunteer to interpret what is going on with
   Happy Funds SkyHigh.


WHERE TO GET INFORMATION ABOUT MUTUAL FUNDS
(3 MINUTES):
Page 106

Guided Discussion
1. Ask, “Where can you get information about mutual funds?”
2. List responses on a flip chart.
                                                         Where to look:
3. On a prepared flip chart, list the following:         • Library
                                                         • Bookstore
                                                         • Business Week
                               Sample flip chart         • Forbes
                               (completed)               • Barrons
                                                         • Wall Street Journal
                                                         • NY Times
                                                         • USA Today
                                                         • Internet
                                                           - Morningstar – www.morningstar.com
                                                           - Lipper – www.lipperweb.com
                                                           - Each mutual fund has its own website


PAYING CAPITAL GAINS TAXES ON YOUR INVESTMENT
EARNINGS (5 MINUTES):
Pages 106-107

Guided Discussion
1. Ask participants to go to page 106.
2. Share with participants that when you buy something, like a house, bonds, or stocks and
   decide to sell it later at a higher price, you make a profit. This profit is called a capital gain.
3. Share that you have to pay taxes on capital gains.
4. Ask, “If you bought a security for $10,000 and sold it for $12,000, what would be your
   capital gain? (Answer: It would be $2,000)
5. Inform participants that investing has numerous tax consequences that can change when
   new tax laws are passed. Investments also are affected by both federal and state taxes. Tell
   participants that they should check with a professional about their local and state taxes.

SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                                   4-41
       PA R T I C I PA N T PA G E




4-42                                Investing for the Future INSTRUCTOR’S GUIDE
PAYING CAPITAL GAINS (CONT’D):
6. Prepare a flip chart about taxes, as shown below.
7. Finally, share that there are many ways to make investments work in your favor when it
   comes to taxes (retirement accounts, municipal bonds, and treasury bonds).
8. The bottom line is this: investing has
   tax consequences, and participants
   should be aware of what they are
   when making an investment decision.
   Suggest that they work with an
   accountant when filing yearly income
   taxes.

Exercise: Applying What You’ve
Learned
1. Ask participants to go to page 107
   and write their responses to the
   suggested questions:
   • What is a way to reduce risk?
   • Right now, if you had $25,000 to
     invest, where would you invest this
     money? Why?
                                                                                          Taxes
2. Facilitate a discussion on this.                                                   - Interest is taxe
                                                                                                          d just
                                                                        Federal level
                                                                                           ome
                                                                        like any other inc
                                                                                                               um
                                                                                           taxed at a maxim
                                                                         Dividends - Are                   %
Ask a participant to read out loud                                                            d maybe 10
                                                                         flat rate of 15% an
Jennifer’s latest decision on page 107.                                   (depending  on income)
                                                                                             is is tricky and
                                                                           Capital gain - Th
                                                                                             e factors:
                                                                           depends on thes
                                                                           • Type of asse  t
                                                                                                ned it
                                                                            • How long you ow
                                                                            • What  you paid for it
                                                                                               el
                                                                            • Your income lev




                                                         Sample flip chart
                                                         (completed)




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                                              4-43
       PA R T I C I PA N T PA G E S
       PA R T I C I PA N T PA G E S




4-44                                  Investing for the Future INSTRUCTOR’S GUIDE
THINKING ABOUT RISK (15 MINUTES):
Pages 108-112

1. Remind participants that in Session 1, we talked about risk. In the investment world
   there is a direct relationship between risk and expected returns.
2. Refer participants to page 108 and indicate that riskier investments have a chance of
   providing a higher return as well as a higher chance that you will lose some of your
   principal.
3. Keep in mind the following questions when making a decision about how much risk to
   carry in your portfolio:
   • What is your time horizon for investing? (How long do you plan to have money
      invested before you use it for something?)
   • How much of your bankroll are you willing to risk?
   • What do your emotions tell you? (What is your risk tolerance?)
4. Spend some time with participants to review the chart on page 108. This chart
   provides an overview of the way investors see the risk level of different asset classes.

Group Activity: Thinking about Risk
1. Break participants into three groups. Assign each group to one of the scenarios on
   pages 109 and 110.
2. Have each group read the assigned scenario and decide what the risk level is and
   determine if they would have done anything differently.




SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                        4-45
       PA R T I C I PA N T PA G E S




4-46                                  Investing for the Future INSTRUCTOR’S GUIDE
THINKING ABOUT RISK (CONT’D):
Exercise: Thinking about Risk
1. Have groups continue to work together and complete the exercise on page 111. Give each
   group a blank flip chart and ask them to draw what they think would be the best
   investment strategy for the scenarios provided.
2. Inform participants that their decisions are based on asset allocation and risk. What
   would they recommend for the people in the scenarios?
3. Have each group report out and facilitate a discussion between groups.


Ask a volunteer to read “Billy’s Savings” out loud. Ask, “Do you know anyone who manages
their money this way?”



PLUSES AND WISHES (5 MINUTES):
Guided Discussion
1. Write on top of the flip chart “Pluses and Wishes” to get feedback from participants
   about this session.
2. Ask participants to list anything they liked as “pluses,” share anything that could be
   different as “wishes,” or choose to “pass” if they don’t have anything to share or if their
   response/comment has already been listed.
Sample flip chart (completed)

PLUSES                                      WISHES
                                                                                www.InvestNative.org
Puzzle                                     Session too long
Personal stories in the session            Hot coffee
                                           

SUGGESTED HOMEWORK:
Instruct participants to:
   • Read Session 7 – Review of Concepts for Session 4,
     on pages 146-147.                                                                                  For additional
   • Read Session 5 in preparation for the next class.
                                                                                                       exercises, games,
   • Find out if your bank or credit union offers help investing in
     mutual funds and bonds.                                                                       and activities visit
   • Do some research on the Internet about various stocks and watch
     a stock of your liking in the newspaper or online for a couple of weeks.                    www.InvestNative.org.
   • Visit FINRA at www.finra.org/marketdata/.
   • Set up a meeting with a broker with a list of questions.

SESSION 4 Investing in Stocks, Bonds, and Mutual Funds                                                             4-47
       PA R T I C I PA N T PA G E




4-48                                Investing for the Future INSTRUCTOR’S GUIDE
                                                                 Session 5
                                                                     Treasury Securities


   Approximate Time Needed: 1 hour and 30 minutes of instruction

   Teaching Methods:                   Suggested Materials Needed:
   Activities (group and individual)   Flip charts & markers
   Guided discussion                   Index cards (5 x 8)
   Exercises                           Pencils & calculators
                                       Magic wall

   Participant Materials:
     • “Building Native Communities: Investing for the Future” participant workbook
     • Agenda
     • Evaluation forms




OVERVIEW
This session provides participants with an opportunity to become
familiar with U.S. Treasury securities and the range of investment
opportunities and features they offer.

Learning Objectives                                                         Visit
On completion of this module, participants will:                            www.InvestNative.org
  • Be familiar with more investing terms.                                  for examples of
  • Be familiar with U.S. Treasury securities.                              teaching tools,
  • Understand Treasury securities features.
  • Know how to purchase Treasury securities.
                                                                            games, exercises,
                                                                            sample evaluation
                                                                            forms, and other
                                                                            resources for
                                                                            teaching concepts
                                                                            in Session 5.


SESSION 5 Treasury Securities                                                                  5-1
      Suggestions for Advance Preparation
      1. Practice and review your notes on this session prior to the training for an easy flow of
         the information being presented.
      2. You may wish to invite a guest speaker who has some expertise in the area of Treasury
         securities. Meet in advance to define the role they will play in the session and the
         information they will cover.
      3. Prepare flip charts for the following: agenda, learning objectives, common courtesies,
         pluses and wishes, and pages 114 and 115 from the workbook. (Read ahead to find
         sample flip charts.)
      4. Prepare the terms and definitions activity for the end of the session as a review.
         (Write terms and definitions on index cards.)
      5. Prepare one session starter and energizer to carry out after the break (view the web
         Resource Guide for suggestions at www.InvestNative.org).



                                           Magic Wall




5-2                                                       Investing for the Future INSTRUCTOR’S GUIDE
WELCOME AND INTRODUCTIONS (15 MINUTES):
Page 113

Activity
1. Blessing (this is optional): Start by having the host of the community welcome
   participants and, if appropriate to the community, have a local community member
   (particularly a well-respected elder) open with a traditional prayer. As a common
   courtesy, you may want to offer the person tobacco or a small gift.
2. Welcome participants back and introduce any new members to the group using a
   “session starter.” View the web Resource Guide for suggestions at www.InvestNative.org.
3. Spend a brief time introducing any guest speakers invited. Trainer may want to go
   around the room and ask participants if they have any questions from the previous
   sessions.
4. Go over any other logistics, review common courtesies, and relevant information for
   participants.
5. Ask participants to share expectations for today’s session. Trainer will review
   expectations listed and confirm what will be covered or not covered.
6. Review learning objectives with participants.



BASIC INVESTING TERMS (3 MINUTES):
Page 113

Activity
1. Explain that before proceeding into the session participants need to have a common
   understanding of terms that will be used.
2. Have participants quietly read the terms and definitions to themselves.
3. Share with participants that they will do an activity to check their knowledge and
   comfort level with the investment terms at the end of class.


Refer participants to page 114 and read Jennifer’s next step in learning more about investing tools.
You can read it out loud to the class or ask a volunteer to read it.


Transition Activity
1. Ask participants, “How many of you have heard about Treasury securities?”
2. Ask who would like to attempt to describe what Treasury securities are.
3. Listen and have participants comment and share their thoughts.



SESSION 5 Treasury Securities                                                                          5-3
      PA R T I C I PA N T PA G E




5-4                                Investing for the Future INSTRUCTOR’S GUIDE
U.S. TREASURY SECURITIES (10 MINUTES):
Page 114

Guided Discussion
1. Instruct participants to turn to page 114.
2. Tell participants that treasury securities are money that you lend to the U.S.
   government and are generally considered the safest of all investments.
3. Ask, “Why do you think they are the
   safest of all investments?” Listen to
   responses.
4. Share that the U.S. Treasury securities
   are backed by the full faith and credit of
   the U.S. government and the entire
   government would collapse if they failed
   to pay off their bonds.
5. Inform participants that there are huge
   markets in Treasury securities, so they
   are very “liquid,” meaning they can be
   bought and sold easily, quickly, and with
   a modest transaction cost.
6. Share with participants that since
   Treasury securities are safe and liquid,                                               ry securities:
                                                                       In sum, U.S. Treasu       rnment
   they pay lower interest rates than most                                                U.S. Gove
                                                                       • Are debts of the
   other securities that mature in the same                                                be the safest of
   length of time.                                                     • Are considered to
                                                                         all investments
7. Share that there are some advantages
                                                                        • Are easy to buy
   of Treasury securities: 1) they can be
                                                                                           her interest rates
   purchased through a brokerage firm or                                • Generally pay hig
                                                                           than bank accounts
   directly from the United States
                                                                                            state and local
   Treasury, and 2) the interest they pay is                             • Are exempt from
   exempt from state and local taxes. (You                                  taxes
   have to pay federal taxes on that
   interest, but not state and local taxes.)
8. Write on a blank flip chart the following:



                                                          Sample flip chart
                                                          (completed)




SESSION 5 Treasury Securities                                                                                 5-5
      PA R T I C I PA N T PA G E




5-6                                Investing for the Future INSTRUCTOR’S GUIDE
TYPES OF U.S. TREASURY SECURITIES (10 MINUTES):
Pages 114-115

Guided Discussion
1. Inform participants to turn to page 115 and share that they will now learn and discuss
   the six types of U.S. Treasury securities:
   • Treasury Bills
   • Treasury Notes
   • Treasury Bonds
   • Treasury Inflation-Protected Securities
   • Treasury I Bonds
   • Treasury E Bonds

2. Using the magic wall, write the following three securities (Treasury Bills, Treasury Notes,
   and Treasury Bonds) on three index cards and place them on the wall. Summarize the
   following information:


          Treasury Bills                Treasury Notes              Treasury Bonds
          (Short: 4, 13,                (Intermediate:                  (Long:
          and 26 weeks)                   2-10 years)                  30 years)


   • Treasury Bills (T-Bills) are short-term investments of 4, 13, and 26 weeks. T-bills are
     sold at a discount and mature at face value. Read aloud the example: You purchase
     a 52-week T-Bill for $9,700 with a face value of $10,000. When the T-Bill reaches
     maturity, you can cash it in for the $10,000 face value. By doing so, you’ve earned
     $300 in interest.
   • Treasury Notes are intermediate-term investments with maturities of 2-10 years.
     They are sold at face value in $1,000 denominations and pay interest semi-annually
     (twice a year).
   • Treasury Bonds are long-term investments with terms of 30 years. They too are sold
     at face value in $1000 denominations and pay interest semi-annually.




SESSION 5 Treasury Securities                                                                    5-7
      PA R T I C I PA N T PA G E




5-8                                Investing for the Future INSTRUCTOR’S GUIDE
TREASURY SECURITIES AND INFLATION (30 MINUTES):
Page 115

Guided Discussion
1. Tell participants they will now look at the three Treasury securities that all account for
   inflation. Remind participants that we discussed in Session 2 how inflation affects
   investments.
2. Using the magic wall, have the following three securities (TIPS, I Bonds, and EE Bonds)
   on three index cards and place on the wall.



             TIPS                       I BONDS                    EE BONDS




Group Activity
1. Assign participants into three groups. Each group will select a reader, transcriber, and
   reporter.
2. Instruct each group to read about TIPS, I Bonds, and EE Bonds and list facts about
   each security.
3. Trainer should prepare a sample flipchart for each group ahead of time.




SESSION 5 Treasury Securities                                                                   5-9
       PA R T I C I PA N T PA G E




5-10                                Investing for the Future INSTRUCTOR’S GUIDE
4. Give participants 20 minutes to complete the flip chart and have each group report
   out their facts about each security.
5. Once the first group has completed their report out, ask other groups to share only
   facts that have not been mentioned.
6. Summarize the following information:
   • Treasury Inflation Protected
     Securities (TIPS) are linked to the
     inflation rate. They are available
     with term of 5, 10, and 20 years.
     You can sell them before maturity
     and at maturity.
   • I Bonds are another low-risk, liquid
     security. Like TIPS, I Bonds pay
     interest and help protect your
     savings from inflation. They differ
     from TIPS in that you can purchase
     smaller amounts, and the way they
     protect you against inflation is
     different.
   • EE Bonds were formerly called E                                                     EE bonds
                                                                  TIPS      I Bonds
     Bonds (education bonds) and are a
     type of savings bond with special
     advantages when used to pay
     higher education expenses.
7. Ask participants to turn to page 118
   and look at the black box.
8. Read aloud the contents of the black
   box, and ask participants which
   security would they choose and why.




                                Sample flip chart
                                (completed)




SESSION 5 Treasury Securities                                                                       5-11
       PA R T I C I PA N T PA G E S




5-12                                  Investing for the Future INSTRUCTOR’S GUIDE
REVIEWING U.S. TREASURY SECURITIES
Page 118

Exercise
1. Instruct participants to stay in their same groups and complete the exercise on page
   118.
2. Remind groups to use the comparison chart of the U.S. Treasury securities on page 117
   and that they have 10 minutes to complete this exercise.
3. Ask, “Which types of securities should Jennifer avoid? Why?”
   (Answer: Jennifer should avoid any Treasury security with a maturity of more than 5
   years since she will need the money to start her business, which she plans to do in that
   time.)
4. Ask, “Which types of securities should Jennifer seriously consider? Why?”
   (Answer: Jennifer should consider a five-year Treasury note, TIPS, or an I Bond. Each is
   liquid in five years without penalty.)



DIRECT PURCHASE OF TREASURY SECURITIES (10 MINUTES):
Page 119

Guided Discussion
1. Ask participants if anyone has ever bought a Treasury security of any kind through the
   Internet or by phone. If yes, ask them to share their experience.
2. Share with participants that the U.S. Treasury has done an excellent job in recent
   years of opening up the market to small investors.
3. Convey to participants that they may purchase various Treasury securities through its
   “TreasuryDirect” program at www.TreasuryDirect.gov.
4. Share that if participants don’t have Internet access they can call a toll fee number:
   800-722-2678.
5. Explain to participants that they may have a payroll deduction plan at their place of
   work that can help them buy EE Bonds, I Bonds, TIPS, and other securities.
6. Share that they can also purchase these securities through brokers and financial
   institutions.
7. Tell participants that if they choose to sell their securities before they mature, they
   can do so on the Internet. The amount for which they sell the security will be deposited
   into their bank account. This process takes a couple of days.




SESSION 5 Treasury Securities                                                                 5-13
       PA R T I C I PA N T PA G E S




5-14                                  Investing for the Future INSTRUCTOR’S GUIDE
Note:
If time permits, ask for a volunteer to read aloud “What is a Savings Bond?” on page 120.
Ask:
    • Do these bonds sound familiar?
    • Has anyone ever received a saving bond?
    • Has anyone ever bought a saving bond?



HOW TO PURCHASE EE AND I BONDS (10 MINUTES):
Page 121

Guided Discussion
1. Communicate to participants that they can also purchase EE and I bonds on the
   Internet at www.TreasuryDirect.gov.
2. Share that some employers also offer bonds through payroll deduction plans.
3. Inform participants that some banks sell bonds, but buyers should be sure to ask
   about fees the banks charge before they purchase the bonds. If buyers purchase bonds
   on the Internet through the Treasury Direct program, they will pay no fees.
4. Tell participants that they can also go to www.savingsbonds.gov to purchase these
   bonds.


Refer participants to page 121 and read Jennifer’s next step in purchasing a security.




SESSION 5 Treasury Securities                                                               5-15
       PA R T I C I PA N T PA G E




5-16                                Investing for the Future INSTRUCTOR’S GUIDE
Note:
If time permits, ask a volunteer to read “Frank’s dream” aloud on page 122. Ask, “What did
you learn from this example?”



REVIEW BASIC INVESTING TERMS (10 MINUTES):
Activity
1. Prepare terms in advance on 8 x 5 index cards and definitions on separate index cards.
   You should have eight index cards.
2. Ask for eight volunteers and instruct participants to find the correct term or definition
   that matches their card.
3. Place their index cards on the magic blue wall (see sample below) with their suggested
   answers.
4. Review and answer any questions that participants may have.




                                          CPI-U


       TIPS                                                           Education
                                                   EE Bonds             bond
                      Treasury Inflation
                     Protected Securities                              with sp.
                                                                     advantages




SESSION 5 Treasury Securities                                                                  5-17
       PLUSES AND WISHES (5 MINUTES):
       Guided Discussion
       1. Write on top of the flip chart “Pluses and Wishes” to get feedback from participants
          about this session.
       2. Ask participants to list
          anything they liked as
          “pluses,” share anything
          that could be different
          as “wishes,” or choose
          to “pass” if they don’t
          have anything to share
          or if their response/
          comment has already
          been listed.




                                                                           WISHES
                                                         PLUSES
                                                         Exercises        Session too
                                                         Personal stories long
                                                                               t coffee
                                                            in the session Ho
                                                                          Room too cold
                     Sample flip chart
                     (completed)




5-18                                                      Investing for the Future INSTRUCTOR’S GUIDE
SUGGESTED HOMEWORK:
Instruct participants to:
   • Read Session 7 – Review of Concepts for Session 5, on page 147.
   • Read Session 6 in preparation for the next class.
   • Visit the suggested websites:
     a) www.TreasuryDirect.gov
     b) www.savingsbonds.gov




A participant at the 2007 investor education train-the-trainer event.   www.InvestNative.org



                                                                                                For additional
                                                                                               exercises, games
                                                                                           and activities visit
                                                                                         www.InvestNative.org.



SESSION 5 Treasury Securities                                                                              5-19
       PA R T I C I PA N T PA G E




5-20                                Investing for the Future INSTRUCTOR’S GUIDE
                                                                Session 6
                                                          Refining Your Investing


   Approximate Time Needed: 1 hour and 45 minutes of instruction

   Teaching Methods:                   Suggested Materials Needed:
   Activities (group and individual)   Flip charts & markers
   Guided discussion                   Index cards (5 x 8)
   Exercises                           Pencils
                                       Masking tape
                                       Magic wall
   Participant Materials:
     • “Building Native Communities: Investing for the Future” participant workbook
     • Agenda
     • Evaluation forms




OVERVIEW
This session provides participants with an opportunity to become
familiar with monitoring and evaluating performance of investments
using common indexes. Participants will also learn about regulators and
become aware of what socially responsible investing is.
                                                                            Visit
Learning Objectives                                                         www.InvestNative.org
On completion of this module, participants will:                            for examples of
  • Learn more investing terms.                                             teaching tools,
  • Discover how to monitor and evaluate investments.
  • Know how to protect their investments.
                                                                            games, exercises,
  • Learn about socially responsible investing.                             sample evaluation
                                                                            forms, and other
                                                                            resources for
                                                                            teaching concepts
                                                                            in Session 6.


SESSION 6 Refining Your Investing                                                              6-1
      Suggested Advance Preparation
      1. Practice and review your notes on this session prior to the training for an easy flow of
         the information being presented.
      2. You may wish to invite a guest speaker who has some expertise in the areas of indexes
         and socially responsible investing (SRI). Meet in advance to define the role they will play
         in the session and information they will cover.
      3. Prepare flip charts for the following: agenda, learning objectives, common courtesies,
         pluses and wishes, and pages 125, 129, and 133 from the workbook. (Read ahead to see
         sample flip charts.)
      4. Collect newspapers that
         have examples of the S&P
         500, Dow Jones Industrial
         Average and other indexes
         (optional).
      5. Prepare the SRI timeline
         (see page 6–19).
      6. Prepare a fill-in-the-blank
         worksheet with terms and
         definitions for class at the
         end of the session as review
         (go to the Resource Guide
         for instructions at
         www.InvestNative.org).
                                                                                sies
      7. Prepare one session starter                         Common Courte                   r
                                                             • Be respec  tful to each othe
         and energizer to carry out                                             meone   is talking
                                                             • Listen when so
         after the break (view the                            • Keep a se nse of humor
                                                                                  schedule
         web Resource Guide for                               • Help us stay on                    kberry
                                                                                 phones and blac
         suggestions at                                       • Disengage cell
                                                                 devices                            and learn
         www.InvestNative.org).                                                  r to understand
                                                               • Help each othe
                                                                                    solutions
                                                               • Look at positive
                                                                                   e valuable
                                                                • All questions ar
                                                                                   eet new people
                                                                • Have fun and m
                                                                                  s too!
                                                                • You are expert                rkshop!
                                                                 • Help cont ribute to this wo




                       Sample flip chart
                       (completed)




6-2                                                        Investing for the Future INSTRUCTOR’S GUIDE
WELCOME AND INTRODUCTIONS (15 MINUTES):
Page 123

Activity
1. Blessing (this is optional): Start by having the host of the community welcome
   participants and, if appropriate to the community, have a local community member
   (particularly a well-respected elder) open with a traditional prayer. As a common
   courtesy, you may want to offer the person tobacco or a small gift.
2. Welcome participants back and introduce any new members to the group using a
   “session starter.” View the web Resource Guide for suggestions at www.InvestNative.org.
3. Spend a brief time introducing any guest speakers invited. Trainer may want to go
   around the room and ask participants if they have any questions from the previous
   sessions.
4. Go over any other logistics, review common courtesies, and relevant information for
   participants.
5. Ask participants to share expectations for today’s session. Trainer will review
   expectations listed and confirm what will be covered or not covered.
6. Review learning objectives with participants.




SESSION 6 Refining Your Investing                                                            6-3
      PA R T I C I PA N T PA G E




6-4                                Investing for the Future INSTRUCTOR’S GUIDE
BASIC INVESTING TERMS (3 MINUTES):
Page 123

Activity
1. Explain that before proceeding into this session, participants need to have a common
   understanding of terms that will be used.
2. Instruct participants to read the 6 new terms quietly and to keep them in mind
   throughout the session.
3. Share with participants that they will do an activity to check their knowledge and
   comfort level with the investment terms at the end of class.



Refer participants to page 124 and read about Jennifer’s latest venture about family and
investment outcomes. Ask a volunteer to read this aloud.



Transition Activity
1. Ask participants, “Once you have your investments set up, should you completely trust
   your portfolio manager to monitor your investments?”
2. Listen and have participants comment and share their thoughts.
3. Ask participants, “What would be some basic level of monitoring that you can do to
   monitor your investments?”
4. Listen to participants and write comments on a flip chart.




SESSION 6 Refining Your Investing                                                          6-5
      PA R T I C I PA N T PA G E




6-6                                Investing for the Future INSTRUCTOR’S GUIDE
MONITORING YOUR
INVESTMENTS (5 MINUTES):
Page 125

Guided Discussion
1. Instruct participants to turn to page 125
   and share that they should ALWAYS
   watch their investments because
   situations and circumstances change.
   Stress that just because investments are
   performing well at a certain point does
   not mean that they will continue to
                                                                                                ring
   perform well.                                                         Basic level of monito
                                                                         • Review  information you get in
2. On a prepared flip chart, list the following                              the mail
                                                                                              n you get online
   and summarize key points:                                             • Review informatio
                                                                                               ents
                                                                          • Read your statem
3. Share with participants that they should                               • Call your investment advisor
                                                                                                g
   look at their investments like a garden.                               • Participate in votin
                                                                                              others?
   When planting, some plants do well in the                               • Can you think of
   shade; some need direct sun, lots of
   water, or very limited water. Investments
   are the same. When your investment is
   not doing well over a period of a year or
   two, you need to make some changes.
4. Finally, stress to participants that they
   should not let emotional attachments to
   a certain stock or bond or other
   investment get in the way of hard-headed
                                                            Sample flip chart
   investment decisions.
                                                            (completed)


EVALUATING THE INVESTMENT
PERFORMANCE OF YOUR PORTFOLIO (5 MINUTES):
Page 125

Guided Discussion
1. Convey to participants that there are two kinds of performance: ABSOLUTE and
   RELATIVE.
2. Inform participants that absolute performances are very difficult to achieve because
   the financial markets are so volatile (unless you put all your money in bonds, real
   estate, or stock and hold them to maturity, but you still need to think about how the
   market values will change when interest rates change). A reasonable goal is to have
   6 percent or 9 percent growth per year!


SESSION 6 Refining Your Investing                                                                           6-7
      PA R T I C I PA N T PA G E




6-8                                Investing for the Future INSTRUCTOR’S GUIDE
3. Share with participants the following on a prepared flip chart:




                                                                               are usually
                                                          “Performance goals
                                                                                of relative
                                                          presented in terms
                                                                                s that
                                                           returns, which mean
                                                           you need to comp   are your
                                                                                   how the
                                                            performance against
                                                                                 gment of
                                                            overall market or se
                                                                                    ing.”
                                                            the market is perform
                Sample flip chart
                (completed)




Refer participants to “Buyer Beware” on page 126 and summarize key points:
  • Be skeptical – If it sounds too good to be true, it probably is!
  • Ask LOTS of questions of your investment advisor until you’re comfortable with the
      answers.
  • Ask about fees that will be charged to your account.
  • ALWAYS read the fine print before signing!




SESSION 6 Refining Your Investing                                                             6-9
       PA R T I C I PA N T PA G E




6-10                                Investing for the Future INSTRUCTOR’S GUIDE
Transition Activity
1. Ask participants: “Now that we understand the importance of monitoring our
   investments, how do you measure the performance of your portfolio?”
2. Listen and have participants comment and share their thoughts.



INDEXES (15 MINUTES):
Page 127

Guided Discussion
1. Refer participants to page 127.
2. Share that one way to measure the performance of your portfolio is by comparing it to
   an index.
3. Inform participants that an index is a statistical measure of the changes in a portfolio
   of stocks that represent the overall market.
4. Explain further that it would be impossible to follow every single security (stock, bond,
   Treasury bill) in the county. So developing smaller samples of the market that is
   representative of a whole is easier. This is like taking an opinion poll of a random sample
   of the population – taking a poll of the entire population is impossible.
5. Share this example: “If you think you’re doing well and your portfolio is up 10 percent, but
   the indexes you have chosen for comparison are up by 20 percent, something is wrong.”
6. Pass out six prepared index cards to six volunteers, each card with the name of an index
   and description of it on the back.
7. Ask a volunteer to read their card and facilitate discussion:
   • What is the name of your index?
   • Would you use this index to compare against your investment?
   • Why?




SESSION 6 Refining Your Investing                                                                 6-11
       PA R T I C I PA N T PA G E S




6-12                                  Investing for the Future INSTRUCTOR’S GUIDE
Refer participants to page 128 and ask participants to quietly read “Investing tribal
resources: Taking care of people, families, and the nation.”

Ask the following questions:
  • Does anyone have any questions or need clarification?
  • Does anyone know what their tribe’s investment portfolio looks like?



HOW TO TELL IF YOU ARE DOING WELL (5 MINUTES):
Page 129

Guided Discussion
1. Tell participants to turn to page 129 and share that if their investments are keeping
   up with the growth rate of the index that they have chosen for comparison, that is a
   good sign.
2. Share an example, “if the S&P 500 grew by 8 percent last year, and your portfolio
   grew by 8.5 percent, then you are doing well.”
3. Convey to participants that seeing their portfolio doing well may instill a competitive
   edge in an effort to make money fast. This is not a good idea.
4. Remind participants that in Session One we discussed the fact that investing meant
   putting your time and money into something to get something greater in return. This
   means careful, patient planning of the financial resources you have and ensuring a
   better future for you and your family.


PROTECTING YOUR INVESTMENTS: THE REGULATORS
(10 MINUTES):
Page 129

Guided Discussion
1. Ask participants, “If you ever run into problems of unethical or illegal behavior when
   investing, what should you do?”
2. Listen to participants and comment that investing is not done in a vacuum.
3. Share that the securities industry is highly regulated and that investors should
   become familiar with these securities regulators:
   • SEC
   • FINRA (formerly NASD)




SESSION 6 Refining Your Investing                                                            6-13
       PA R T I C I PA N T PA G E




6-14                                Investing for the Future INSTRUCTOR’S GUIDE
4. On a prepared flip chart, review these regulators.


Sample flip chart (completed)

Securities Regulators

SEC – Securities and Exchange Commission: A government agency charged with
protecting investors and making sure securities players disclose information that
investors need.

FINRA – Financial Industry Regulatory Authority (formerly NASD): Private-sector
regulator of the securities industry. FINRA writes and enforces rules, and handles
oversight education and arbitration.

State Securities Regulators – Each state has its own securities regulator that licenses
investment professionals and oversees the offer and sale of securities within state lines.
You can find contact information at the Web site of the North American Securities
Administrators Association (www.nasaa.org) or by calling (202) 737-0900.


5. Ask participants if they have any questions. Encourage participants to visit these
   regulators’ websites for more information and to learn how to file a complaint.



Read to participants “Don’t gamble on your future” on page 130. Ask the following
questions:
  • How many of you felt like gambling was a form of investing before reading this?
  • What are your thoughts about the investing example of leaving $100 in the market
     for 20 years at a 7 percent compound interest and gaining $386.97 versus
     gambling the $100 and possibly winning $500.00?
  • What would be some ideas or actions items to help teach others or ourselves that it
     is worth being patient and safe when investing our time and money?
  • You may want to use the example at the end of the story about logging all the
     money you have spent at the casino as well as the gas it took you to get there and
     time (that you could have spent with a loved one or a project at home) to figure out
     what your rate of return is.




SESSION 6 Refining Your Investing                                                            6-15
       PA R T I C I PA N T PA G E S




6-16                                  Investing for the Future INSTRUCTOR’S GUIDE
SOCIALLY RESPONSIBLE INVESTING (25 MINUTES):
Pages 131-134

Guided Discussion
1. Instruct participants to turn to page 131 and ask if anyone has heard of or knows what
   socially responsible investing (SRI) is.
2. Listen to comments from participants and share that SRI is an expression of your
   ethical, social, political, and environmental beliefs in making your investment decisions.
3. Ask a participant to read the black box on page 131, which is the formal definition of
   SRI.


“SRI means investing with the object of maximizing the financial and social well-being of
the investor, the organization in which the investment is being made, and society at large.”


4. Tell participants that if they own shares or stocks they can vote at the annual
   meetings of those corporations or by proxy (absentee ballot).


Exercise: Socially responsible investing
1. Instruct participants to read and answer the following questions:
   • Imagine for a moment that you sit on your tribe’s investment committee. What kinds
      of corporations would you refuse to invest in? Why?
   • What kinds of corporations or programs would you like to invest in? Why?
2. Ask 2-3 individuals to share their responses.


Refer participants to page 132 and read Jennifer’s latest experience about sitting on her
tribe’s investment committee.

Ask the following questions:
  • Does anyone know if their tribe has an investment committee?
  • Has anyone had the experience of sitting on their tribe’s investment committee?
  • Does Jennifer’s story inspire any of you to want to sit on an investment committee
     or begin investing for your future?




SESSION 6 Refining Your Investing                                                               6-17
       PA R T I C I PA N T PA G E




6-18                                Investing for the Future INSTRUCTOR’S GUIDE
SOCIALLY RESPONSIBLE
INVESTING (CONT’D):
3. On a flip chart, put the following
   information on page 133 (the black
   box) and review the information.


MORE ON SRI
(10 MINUTES):
Page 133
                                                                                                              Investing
                                                                                             ly Responsible
Guided Discussion                                                    Inform ation on Social
                                                                                                      t Institute:
                                                                                     ns Developmen
1. Ask participants, “When do you think                               • First Natio
                                                                                           .org
   SRIs began?”                                                           www.firstnations                g:
                                                                                     sp onsible Investin
                                                                       • Socially Re                             g/sif.cfm
                                                                                                rg/socialinvestin
2. Listen to participants’ responses                                       www.coopamerica.o
                                                                                                          funds can be
                                                                                        onsible mutual
   and share that SRIs have been                                        • Socially resp
   around for a very long time.                                            found at:
                                                                                              .org
                                                                            www.socialinvest
                                                                                          ve sting:
3. Using the magic wall, have prepared                                   • Community in
                                                                                                  st.org/
   index cards with dates and                                               www. communityinve

   descriptions for a timeline. See
   example below.
4. Go through the timeline with the
   details in the book. You may want to
   research additional examples for the
   timeline.                                                                                   Sample flip chart
                                                                                               (completed)




     1800                 1950-1960                1970                     1980

                                    SRIs rapidly      Churches, individuals,
      London Bankers –               increased!         public pensions
     Housing for the poor                                looked at SRIs

                                                                                    Discrimination
                 Quakers –                                 Environmental            in employment
           Sin Stocks (tobacco,
           alcohol, and gambling)
                                                                                   Production and
                                                                                 marketing of tobacco




SESSION 6 Refining Your Investing                                                                                            6-19
       PA R T I C I PA N T PA G E




6-20                                Investing for the Future INSTRUCTOR’S GUIDE
5. Ask participants if they can think of other investments they may know of that would fit
   on the timeline.
6. Inform participants that some investors and investment advisors object to SRIs
   because they feel they limit the investments one can make. Let participants know that
   everyone must make hard decisions about good and bad characteristics of companies
   that they invest in.
7. Ask participants to turn to page 134 and read the examples in the first paragraph: “A
   company whose mining operations are disrupting ancient Hopi and Navajo water tables
   might give money for Indian scholarships. The same company that is clear cutting
   forests in one area may hire a lot of Native employees.” Ask whether they would invest
   in these companies.
8. Share with participants that studies have shown time and again that investing
   “responsibly” does not have to lower your return.
9. Encourage participants to ask their broker or look up on the Internet what corporations
   are included in socially responsible mutual funds. Refer them to www.innovestgroup.com.




        A trainer at the 2007 investor education train-the-trainer event.




SESSION 6 Refining Your Investing                                                            6-21
       PA R T I C I PA N T PA G E S




6-22                                  Investing for the Future INSTRUCTOR’S GUIDE
TYPES OF SOCIALLY RESPONSIBLE INVESTING (15 MINUTES):
Pages 135-138

Guided Discussion
1. Ask participants to turn to page 135 and share that they will be learning about the
   different types of SRIs.
2. Break participants into four groups and instruct participants that each group will read
   about one type of SRI and report out to the group at large about what they learned.
3. Give each group a blank flip chart to complete, a marker, and the type of SRI they will
   be learning about: 1) screened portfolio, 2) investing in good companies, 3) proxy
   resolutions and engagement with management, and 4) alternative investing.
4. Tell participants that they have 10 minutes to read and complete their flip charts.
5. Have each group report out.




                                                                                 Screened
                                                                                            Portfolios
                                                                               Common
                                                                                        screens ar
                                                                                                  e…     ..




6. After each group reports out, ask the following questions:
   • Has anyone heard of this specific SRI?
   • Does anyone have any questions or need clarification?




SESSION 6 Refining Your Investing                                                                             6-23
       PA R T I C I PA N T PA G E S




6-24                                  Investing for the Future INSTRUCTOR’S GUIDE
  Note:
  If time permits, ask for a volunteer to read aloud about “Indigenous Peoples Rights Policy
  by Calvert Funds” on page 136.




                                                           vesting
                                      Four Types of SRI In
                                      1) screened portfolio
                                                            companies
                                       2) investing in good
                                                             and
                                       3) proxy resolutions      agement
                                           engagement with man
                                                             ing
Sample flip chart                       4) alternative invest
(completed)




  SESSION 6 Refining Your Investing                                                            6-25
       PA R T I C I PA N T PA G E




6-26                                Investing for the Future INSTRUCTOR’S GUIDE
Note:
If time permits, ask for a volunteer to read aloud about “Oneida Tribe of Indians of
Wisconsin: Honoring the Elders” on page 139. Ask, “Does anyone know what your tribe’s
investment portfolio looks like?”



DOES SOCIALLY RESPONSIBLE INVESTING LOWER YOUR
INVESTMENT RETURNS? (5 MINUTES):
Page 139

Guided Discussion
1. Reiterate to participants that studies are showing that shares of companies with
   records of good environmental practices and other examples of corporate citizenship
   actually outperform shares of companies that are bad environmentally and are
   problematic corporate citizens.
2. Inform participants that if they invest in community development investments, such as
   community development credit unions or a community development loan fund, they might get
   a lower rate than by investing in a bank or corporate bond, BUT that the community
   organizations often have to charge lower rates in order to be able to invest in low-income
   communities.




SESSION 6 Refining Your Investing                                                               6-27
       PA R T I C I PA N T PA G E




6-28                                Investing for the Future INSTRUCTOR’S GUIDE
Ask a volunteer to read aloud “Anna comes home” on page 140. Ask the following questions:
  • Has anyone recently met with their financial advisor about their retirement?
  • What questions would you like to ask your advisor about your investment portfolio?



REVIEW BASIC INVESTING TERMS (10 MINUTES):
Activity
1. Prepare in advance the crossword puzzle of the terms and definitions covered in this session.
2. Go to the Resource Guide for instructions at www.InvestNative.org.
3. Pass out copies of the crossword puzzle and review answers.


PLUSES AND WISHES (5 MINUTES):
Guided Discussion
1. Write on top of the flip chart “Pluses and Wishes” to get feedback from participants
   about this session.
2. Ask participants to list anything they liked as “pluses,” share anything that could be
   different as “wishes,” or choose to “pass” if they don’t have anything to share or if their
   response/comment has already been listed.


Sample flip chart (completed)

PLUSES                                    WISHES
Exercises                                Session too long
Personal stories in the session          Hot coffee
                                         




SESSION 6 Refining Your Investing                                                                  6-29
       SUGGESTED HOMEWORK:
       Instruct participants to:
          • Read Session #7 – Review of Concepts for Session 6, on page 149.
          • Visit the suggested websites mentioned in session 6.
            www.firstnations.org
            www.coopamerica.org/socialinvesting/sif.cfm
            www.socialinvest.org
            www.communityinvest.org
            www.innovestgroup.com
            www.calvertfunds.com/pdf/iprpolicy.pdf
            www.natfed.org
            www.oweesta.org
            www.opportunityfinance.net
         • Find out if your tribe has an investment committee.
         • Find out more information about your employers investments.




                                                             www.InvestNative.org




                                                                                     For additional
                                                                                    exercises, games
                                                                                and activities visit
                                                                              www.InvestNative.org.




6-30                                                     Investing for the Future INSTRUCTOR’S GUIDE
                                                                  Session 7
                                                                                      Review


   Approximate Time Needed: 1 hour and 45 minutes of instruction

   Teaching Methods:                 Suggested Materials Needed:
   Activities (group)                Noise makers
   Exercises                         Bags/hats/containers
                                     Flip charts & markers
                                     Masking tape
                                     Projector, screen and computer for
                                     displaying a PowerPoint presentation

   Participant Materials:
     • “Building Native Communities: Investing for the Future” participant workbook
     • Agenda
     • Evaluation forms
     • Certificate of completion



OVERVIEW
This session provides participants with an opportunity to review
investment concepts from prior sessions, and an opportunity to
develop their own investment plan as well as learn about online
resources, books, and newsletters.
                                                                             Visit
Learning Objectives                                                          www.InvestNative.org
On completion of this module, participants will:                             for examples of
  • Review concepts from each session.                                       teaching tools,
  • Make their own investment plan.
  • Go over online resources, books, and newsletters.
                                                                             games, exercises,
                                                                             sample evaluation
                                                                             forms, and other
Note:
                                                                             resources for
Trainers, you can use this session one of two ways - Complete Session
7 as the final review or, if time is an issue, have participants to do the   teaching concepts
corresponding exercises in Session 7 as homework for the related             in Session 7.
section that was taught.


SESSION 7 Review                                                                                7-1
      Suggestions for Advance Preparation
      1. Practice and review your notes on this session prior to the training for an easy flow of
         the information being presented.
      2. Prepare flip charts for the following: agenda, learning objectives, common courtesies,
         rules for the games, and pluses and wishes.
      3. Make extra copies for participants of the exercise “Creating your own investment plan”
         on pages 152-155.
      4. Download the PowerPoint presentation for the “Jeopardy” game (go to Resource Library
         in the trainers section of www.InvestNative.org ).
      5. Prepare one energizer to carry out after the break (go to Resource Library in the
         trainers section of www.InvestNative.org).
      6. Review, print out, or bring some of the resources listed on pages 156-157 of the
         participant workbook.



      WELCOME AND INTRODUCTIONS (15 MINUTES):
      Page 141

      Activity
      1. Blessing (this is optional): Start by having the host of the community welcome
         participants and, if appropriate to the community, have a local community member
         (particularly a well-respected elder) open with a traditional prayer. As a common
         courtesy, you make want to offer the person tobacco or a small gift.
      2. Welcome participants back. You may want to go around the room and ask participants
         if they have any questions from the previous sessions.
      3. Go over any other logistics, common courtesies, and relevant information for participants.
      4. Ask participants to share expectations for today’s session. Review expectations listed
         and confirm what will be covered or not covered.
      5. Review learning objectives with participants.

      Transition Activity
      1. Congratulate participants for completing all six sessions or the number of sessions
         that it has taken you as a class to complete the workbook.
      2. Share with participants that this session will focus on two key pieces: review of
         investment concepts, and designing their investment plan.




7-2                                                       Investing for the Future INSTRUCTOR’S GUIDE
Refer participants to page 142 and ask a volunteer from the audience to read out loud
about Jennifer’s latest experience with her family and investment outcomes.




REVIEW OF CONCEPTS - SESSIONS 1 THROUGH 3
(20 MINUTES):
Pages 143-144

Group Activity
1. Prepare in advance:
   • Write game rules on a blank flipchart.
   • Print out all questions listed below and cut into slips.
   • Get two bags/hats/bowls to put the slips of questions in.
2. Divide participants into two teams of equal number.
3. Instruct teams to come up with a name for their team and to select a team leader and
   a transcriber.
4. Give each team a blank flip chart, marker, one workbook, and a noise maker (bell, whistle,
   rattle, horn, etc.).
5. Explain to the participants that each team has 10 questions to answer as a team.
   Share that the questions are in a bag (or whatever you decide to hold the questions in)
   in the center of the room. The first team that answers all the questions gets 20
   additional points for the “Jeopardy” game, plus prizes or incentives (if you can provide
   prizes or incentives – some ideas for prizes are calculators, investment books, gift
   certificates donated by local banks, etc.).
6. Put the following instructions on a blank flipchart and review the rules:
   • Only the team leader can come and select the question for the team to answer.
   • The transcriber’s only job is to write the responses/answers on the flipchart(s) provided.
   • The team leader cannot get another question until the transcriber finishes writing
     the answer to the previous question.
   • After each question is complete, the team can use its noise maker.
   • The team needs to help the team leader complete the 10 questions.




SESSION 7 Review                                                                                  7-3
      7. Print out the suggested questions and cut into slips of paper and place in a bag for
         each team. Here are the questions:
         • Define investment.
         • Provide an example of a short and long term goal.
         • In general, if you take more risk, will you get a greater return - True or False? Why?
         • If are nearing retirement or getting ready to take money out of the market, what
            should your risk level be?
         • What are the most common accounts a bank offers?
         • Define compounding and provide an example or draw an illustration.
         • What would be an example of the “time value of money?”
         • Define inflation.
         • Retirement accounts have special tax benefits and hold various kinds of investments
            like stocks, bonds, and mutual funds – True or False?
         • Saving for retirement requires a few things - what are they?
      8. Once a team completes all 10 questions, stop the game and review answers to the
         questions.
      9. Ask participants to look at pages 143-144 to review their answers.


      Note:
      If time permits, review “Investing advice” on page 145 as a group – you can do this as a
      PowerPoint presentation or have each participant read the advice from the workbook.




7-4                                                       Investing for the Future INSTRUCTOR’S GUIDE
REVIEW OF CONCEPTS – SESSIONS 4 AND 5 (25 MINUTES):
Pages 146-148

Group Activity
1. Use the “Jeopardy” game to review sessions 4 and 5. This game can be downloaded
   from the Resource Library in the trainers section of www.InvestNative.org.
2. Give participants 5-7 minutes to read the bullet points on pages 146-147.
3. Instruct participants to break into their previous teams.
4. Put game rules on a flipchart:
   • Select your spokesperson.
   • Only the spokesperson can respond to the question.
   • Each team will have 15 seconds to agree on an answer to the question.
   • The spokesperson must respond in a question form: “What is____.”
   • The spokesperson has 10 seconds to share the answer.
   • If the answer is wrong, the other team has an opportunity to respond to the
     question.
   • If the answer is right, the team continues until they respond wrong or forget the
     rules (timing, responding, etc.).
   • The facilitator of the game has the final call!
5. Give the winning team prizes, if possible.


If you have time, have participants complete the exercise on page 148, “Kenny gets his
youth fund payment.” Ask the following discussion questions:
1. What do you think about how Kenny spent his Youth Fund payment? Would you do the
    same? Why or why not? (Answer: Kenny should have saved and/or invested a portion of
    his Youth Fund payment. He also would have benefited from having proper insurance on
    his SUV.)
2. If Kenny invested $20,000 of his $35,000 Youth Fund payment, and got a 6 percent
   annual percentage yield, how much would it have been worth 10 years later? (Answer:
   $35,816.)




SESSION 7 Review                                                                           7-5
      REVIEW OF CONCEPTS – SESSION 6 (20 MINUTES):
      Pages 149-151

      Guided Discussion
      1. Ask each participant to read and review the four bullet points on page 149.
      2. Invite a volunteer to read out loud “Turning one-time winnings into a safe investment”
         and ask the following discussion questions:
         • Does Royce have a high or low risk level?
         • Would anyone have chosen a different investment strategy?

      3. Ask another participant to read “Asset building in Native communities” out loud and
         ask the following discussion questions:
         • What is asset building?
         • What are assets?
         • How does building assets affect you, your family and the community you live in?
      4. Discuss and summarize page 151, “Community development through asset building.”




             A participant at the investor education train-the-trainer event in 2007.




7-6                                                               Investing for the Future INSTRUCTOR’S GUIDE
CREATING YOUR OWN INVESTMENT PLAN (20 MINUTES):
Pages 152-155

Individual Exercise
1. Refer participants to page 152.
2. Explain to participants that this exercise will walk them through the steps of coming up
   with their own investment plan.
3. Instruct participants to complete pages 152-153.
4. Invite participants to share their responses to the exercise.
5. Refer participants to page 154 and explain the next exercise, “Investing throughout life.”
6. Instruct participants to go back to Session 1 on page 12 and look at what they listed
   as goals throughout the different stages of life.
7. Ask participants to fill in those goals below on page 154.
8. Share with participants that now that they know the basics about investing they
   should fill out the appropriate types of investments for each stage of life.
9. Invite participants to share their responses to the exercise.


Refer participants to page 155 to review the “Investment principles.” Review and
summarize the four key principles:
  • Planning
  • Discipline
  • Patience
  • Diversification through asset allocation




SESSION 7 Review                                                                                7-7
      RESOURCES FOR INVESTING (10 MINUTES):
      Page 156

      Guided Discussion
      1. Inform participants that now that they have started to design their investment plan,
         they may want to use resources on the Internet or in books.
      2. Share that you do not endorse any of these resources, nor does FNDI.
      3. Review online resources on page 156. If you have an Internet connection in your
         classroom, visit some of the websites listed.
      4. Bring some of the books or newsletters for participants to review and encourage them
         to sign up for any newsletters or to subscribe to other resources that will help them to
         continue their education on investments.
      5. Ask participants if they have any other resources that they want to share with the
         rest of the group.




      WRAP UP
      (30 MINUTES TO 2 HOURS):
      Celebrate!
      Here are some suggestions for the final class:
                                                              www.InvestNative.org
         • Provide nice certificates of completion – go
           to the Resource Library in the trainers
           section of www.InvestNative.org to download
           certificates.
         • Give away nice or useful gifts or incentives
           (maybe a financial journal or a free
           consultation with a local investor).
         • Have a potluck or a meal sponsored by a
           local financial representative.

      Here are a few other things to keep in mind:
        • Have participants complete a written
                                                                                      For additional
           evaluation.
        • Conduct a three-month follow-up to find out                                exercises, games
           if participants have had a chance to use
           what they learned.                                                    and activities visit
                                                                               www.InvestNative.org.




7-8                                                       Investing for the Future INSTRUCTOR’S GUIDE
              The Commemorative Quilt of the National Museum of
              the American Indian, 1997. This commemorative quilt
              was made by 20 Native artists in honor of the exhibit,
              “To Honor and Comfort: Native Quilting Traditions.”
              The purchase of the quilt by the National Museum of
              the American Indian was made possible by a major
              grant from the Metropolitan Life Foundation. Native
              quilters from North America and Hawaii were asked to
              submit a block of their own design to this unique quilt.
              Ina McNeil (Hunkpapa Lakota) and Margot Cohen
              assembled and quilted the blocks.



Each row is numbered from left to right starting with the top left corner.
1. Paula White, Chippewa                          11.   Nancy Naranjo, Eastern Cherokee
2. Mary Bighorse, Osage                           12.   Harriet Soong, Hawaiian
3. Ina McNeil, Hunkpapa Lakota                    13.   Shirley Grady, Mandan/Hidatsa/Sioux/Crow
4. Margaret Wood, Navajo/Seminole                 14.   J. Carole Stewart, Creek
5. Anastasia Cooke Hoffman, Yup’ik                15.   Alice Olsen Williams, Anishinaabe
6. Gussie Bento, Native Hawaiian                  16.   Rita Corbiere, Ojibwe
7. Judy Toppings, Ojibwe                          17.   Marlene Sekaquatewa, Hopi
8. Share Bonaparte, Akwesasne Mohawk              18.   Ollie Napesni, Lakota Sioux
9. Lula Red Cloud, Oglala Lakota                  19.   Virginia Osceola, Seminole
10. Conrad House, Dinéh/Oneida                    20.   Bernyce (B.K.) Courtney, Wasco/Tlingit
First Nations Development Institute
10707 Spotsylvania Ave. Suite 201
Fredericksburg, VA 22408
(540) 371-5615
(540) 371-3505 fax

703 3rd Avenue, Suite B
Longmont, CO 80501
303-774-7836
303-774-7841 fax
www.firstnations.org




FINRA Investor Education Foundation
1735 K Street NW
Washington, DC 20006

www.finrafoundation.org

				
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