Stanley Breitbard, CPAPFS

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Ten Tips To Get Your Students Financially Fit

• Stanley Breitbard, CPA/PFS
• Member, National CPA Financial Literacy
  Commission
• Chair Emeritus, California Jumptart Coalition

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1. Educate Them About Americas Financial Crisis

• Financial literacy is a national problem.
• It affects every income level and social class.
• It affects young and old.
• Its color blind.
• It impacts individuals, families, businesses,
  communities, states and the Federal Government.

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Some Startling Statistics

• In 2003, 1.6 million Americans filed for
  bankruptcy, the highest amount in history (Amer.
  Bankruptcy Inst.).
• 43 of American families spend more than they
  earn (Federal Reserve).
• Americans carry an average credit card debt of
  more than 8,500 (Motley Fool).
• The average American family saw its credit card
  debt grow by 53 in the 1990s (Demos).

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AICPA Poll

• Designed to assess financial planning knowledge
  and sense of financial security among Americans
• Confirmed other national studies showing serious
  need for financial education

AICPA Roper Poll, May 2004
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Percentage who have never heard of key financial
terms

• Income Replacement at Retirement 61
• ERISA 76
• Reverse Mortgage 35
• Joint/Survivor Annuities 32
• Portfolio Diversification 30
• Compound Interest 28
• 401(k) Plans 49

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One in Three Americans In Two-Income Households
Dont Have Financial Contingency Plans Should
They Lose One Income
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Not prepared for unexpected major expenses

• Asked how they would handle a financial emergency
  they couldnt manage on their own, Americans
  would
• Borrow money from their family (51)
• Sell their house, car, or other thing of value
  (49)
• File for bankruptcy (24)

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2. Help Students Make the Connection

• 11 of teens 12-19 have their own credit card
  an additional 10 have access to a parent's
  credit card. (Teenage Research Unlimited)
• College students carry an average of three credit
  cards with a total balance of 2,748. (Natl
  Center for Educ. Stat.)
• Childrens spending has increased dramatically.
  Kids ages 4-12 spent 2.2 billion in 1968, 4.2
  billion in 1984, 17.1 billion in 1994, and more
  than 40 billion in 2002. (Packaged Facts, 2002,
  The U.S. Kids Market)

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3. Test Your Students Money IQ

• Give them the Jumptart Personal Financial Survey
  
• Got to www.jumpstart.org and click on Downloads
• Tests knowledge of income, money management,
  saving and investing, spending and credit

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A Failing GradeAverage Scores for 4 Surveys

• 1997 57.3
• 2000 51.9
• 2002 50.2
• 2004 52.3
• Will your students do better?

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4. Integrate Financial Literacy into Your
Classroom

• 87 percent of college students and 90 percent of
  high school students rely on their parents for
  financial guidance. (Capitol One)
• Only 26 of 13- to 21-year-olds reported that
  their parents actively taught them how to manage
  money. (Jumptart)
• Only 7 states require high school students to
  complete a course including personal finance
  before graduating. (NCEE, April 2004, Survey of
  the States)
• Only 9 states require testing in personal
  finance. (NCEE, April 2004, Survey of the States)

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Financial Education Works

• Students who participated in a personal finance
  game had an average test score of 2 higher than
  those who did not. (Mandell and Jumptart)
• People who even start thinking about financial
  planning save twice as much as those who do not.
  (Consumer Federation)

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Personal Finance Clearinghouse

• Jumptart Personal Finance Clearinghouse offers
  over 500 personal finance tools for educators.
• Materials for grades K-12.
• Go to www.jumpstart.org and click on resources
  and then Clearinghouse.
• Search topic, grade level, type of material,
  source

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Personal Finance Subjects to Add to Coursework

• Value of Money
• Budgets
• Cash Management
• Banking
• Credit and Debt
• Saving
• Investing
• Interest
• Financial Planning

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5. Take Your Students to the 360 Degrees of
Financial Literacy Web Site www.360financialliter
acy.org

• 360 Degrees of Financial Literacy is a national
  effort of the CPA profession to improve the
  financial understanding of Americans.
• CPAs, through local programs across the U.S., are
  teaching community members about personal finance
  and money management.

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Over 300 Articles
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Over 500 FAQs
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Over 260 Financial Tools
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6. Watch PBS TV Shows with Your Students

• Available on the 360 Web Site
• Penny Wise
• For middle school students
• Business Building Blocks
• For high school students

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Downloadable programs for middle and high school
students
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7. Use Presentation Toolkits Available Online
www.aicpa.org/financialliteracy
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8. Take Advantage of the Takin Care of Business
Package

• Easy-to-use tools for teachers to give students a
  good grounding in understanding financial
  concepts and how they relate to real-world
  situations.
• Video, teachers education handbook and student
  guides

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Performance Measures and Standards

• Strategic and Critical Thinking
• Problem Solving and Decision-Making
• Decision-Modeling
• Research and Reporting
• Technology
• Team Building
• Communication

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Lessons Plans on Variety of Personal Finance
Topics

• Financial Statement Analysis
• Budgeting Forcasting
• Break-Even Analysis
• Financial Planning
• Time Value of Money
• The Purpose of Taxation

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9. Get Yourself in Good Financial Shape with
Financial Smarts for Teachers

• http//www.financialsmarts.ucr.edu/

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10. Call Your State CPA Society Local School
Programs Offered Throughout the U.S.
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For More Information

• E-mail financialliteracy_at_aicpa.org
• Consumer Web Site www.360financialliteracy.org
• Resource Center www.aicpa.org/financialliteracy