An Investment in Knowledge

Table of ContentsI. Introduction ................................................................................................ 1 Teaching TIMMI Measuring the Impact of TIMMI About Kahoot Using KahootII. Budgeting.................................................................................................... 5 Introduction to TIMMI and Teachers Pre-Test More about TIMMI The Decision Making Process Opportunity Costs Budgeting Emergency Funds KahootIII. Credit ..........................................................................................................14 About Credit Interest Obtaining Credit Paying Off Credit Not Paying Off Credit KahootIV. Investing.................................................................................................... 23 Saving Money Risk Ways to Grow Money Types of Stock Choosing a Stock to Invest In Other Strategies for Investing Funds KahootV. Day Four.................................................................................................... 33 The Game Post-Test The EndVI. Appendix ................................................................................................... 36 Budgeting: Decision Making Scenarios Budgeting: Making a Budget Scenarios Credit: Sorting the Three C’s Credit: Loan Granting Scenarios Day Four: Student Handout Pre- and Post-Assessments\"An investment in knowledge pays the best interest.\" Ben Franklin



“Everybody in America started to define themselves by all thesethings they had around them.And all of a sudden it came tumbling down.So the old American dream has died, and that is a good thing.”Suze OrmanBy Adam Chang, Christina Cuppari, Jacob Kaltman, Jay Bhanushali, JustinPatel, Paul Yang, and Steven Koerwer.A.C., C.C., J.B., J.K., J.P., and S.K. came up with ideas for the curriculum, wroteout the case scenarios, and created questions for the Kahoots and assessments. P.Y.proposed interactive simulations and demonstrations. A.C. created the Powerpointsand cover, edited the questions and case scenarios, and wrote the curriculum. Inaddition, Abel P., Cole C., Giacomo G., and Prathamesh G. provided input onlesson topics.We wish to thank Mrs. Michelle Winter and Mrs. Bronawyn O’Leary for advisingour initiative; TIMMI would not be possible without them.



IntroductionPreparing for TIMMITIMMI includes a diverse range of ways to learn, including many games and collaborative activities.On the same note, you’ll need to prepare to teach TIMMI with both supplies and handouts.On all four days, you’ll need the use of a projector and computer. Incentives and rewards will beappreciated by students, like candy or cool school supplies. You may also want to prepare groupsof students who would work together during TIMMI – the classroom teacher can help you with this!Students should have mobile devices (or individual computers) available to them on all four daysas well for the Kahoots (but we included an alternative if students don’t have these devices).On the first day, you’ll need:  Printed copy of the pre-assessment for each student (utilizing all three versions)  Pens or pencils to complete the pre-assessment  Printed decision making process case scenarios for each group (Appendix)  Respective supplies for the opportunity cost demonstration  Respective supplies for the budgeting demonstration  Printed budgeting case scenarios for each group (Appendix)  To prepare the “Your TIMMI Teachers” slide with your names and picturesOn the second day, you’ll need:  Respective supplies for the convenience of credit demonstration  Respective supplies for the three C’s demonstration  Printed credit factors to sort for each group (Appendix)  Respective supplies for the credit score demonstration  Printed loan granting case scenarios for each group (Appendix)  Respective supplies for the not paying off credit demonstrationOn the third day, you’ll need:  Respective supplies for the saving-in-bank-account and investing-in-stock demonstrations  Respective supplies for the choosing a stock to invest in demonstration  Respective supplies for the stock scam activityOn the final day, you’ll need:  Printed copy of the post-assessment for each student (utilizing all three versions)  Pens or pencils to complete the post-assessment  Respective supplies for the game  Printed and completed certificatesTeaching Investment and Money Management Initiative Curriculum | timm-i.org 1

Teaching TIMMIPowerpoint slides in this curriculum are includedhere and outlined in black. Source files can befound at cdn.timm-i.org. A sample slide is shown.Most of our curriculum consists of interactive andengaging activities. Instructions and ideas for theseactivities are directly written out, and necessaryresources (such as sample case scenarios) are typically available in the Appendix.While most of our curriculum consists of engaging and interactive learning, items included as bulletpoints (in shaded regions) should be explained directly during teaching. They are facts necessary forstudents to base their learning off of.  This is an example fact that should explained/read to studentsMeasuring the Impact of TIMMITIMMI includes three assessments which serve as pre- and post-assessments. We request that allteachings of this curriculum conduct these tests before and after teaching (on day one and day four,respectively) since it’s a key measure of the impact TIMMI has in students and communities. Ourresearch team will collect these results and integrate them into a comprehensive report for eachteaching opportunity.Student responses will be anonymized, and only identified by a random number if they are shared.Items on the assessment that teachers will need to fill out:  Circle the corresponding NPs for days that students missed (for example, if a student did not attend the lesson on Credit/Day 2, circle NP2 on the respective post-test)  Circle whether the assessment is a pre- or post-assessment  Write the Cluster Record assigned to the teaching opportunity (if you’re not teaching this as a TIMMI partner, please contact us at [email protected] to obtain one)  Do not write anything in the ID sectionOnce assessments are complete, they should be uploaded through our website or emailed to ourteam at [email protected]. Our research team will grade and analyze the results.If a student does not complete two assessments, we’d like his/her one assessment anyway. Similarly,if a student knows that he/she will not attend Day Four, see if the post-test can be completed at theend of Day Three.2 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

About KahootKahoot is like a “Playstation for Education” where studentsuse mobile devices or individual computers to answermultiple-choice questions, with real-time, competitivescoring in an exciting atmosphere. Each day of TIMMIends with a Kahoot game to review the ideas taught.You will project the game at the front of the classroom(with its question/answers/clock/scoreboard). It’s quick tosetup and students do not need to create any accounts (butyou will need to setup a teacher account beforehand). Image from KahootUsing KahootTo launch the Kahoot, visit the link for the Kahoot and click “Play.” Once loaded, you can click“Launch” with the default settings (or turn on “Randomise order of questions” and “Randomiseorder of answers in each question” if you wish).Once you launch your Kahoot, you'll see a colored screenwith a 6-digit game pin. Instruct students to visit kahoot.it on theircomputers/mobile devices and enter in this pin.As students join the game, you’ll see their names on your(projected) screen. Once all students have joined, click “Start now”– it’s pretty simple from here!The question will be projected on the screen with four (or two) answer choices, and students simplyuse their devices to select an answer. When the question is over, students will see on their devicesimmediately whether they answered correctly or not. Points are awarded automatically based oncorrectness and speed.Throughout the game, you’ll see a leaderboard of students. After every question, a chart will alsodisplay indicating the number of students who selected each answer.At the end of the game, you’ll see the winner’s name and feedback from students, and will be able todownload complete results for each student (and they save in your account). If you are able tosend the complete results to us (via email at [email protected]), our research teamwould love to analyze student success in Kahoot!Teaching Investment and Money Management Initiative Curriculum | timm-i.org 3

This is a sample of what you would see on Kahoot, with the left side reflecting what’s on yourscreen (and projected to the class), and the right side reflecting what’s on students’ screens.If you're unable to use Kahoot, Powerpoint versions of the same questions are available atcdn.timm-i.org. You may wish to print/create colored signs for students to hold up to signal theirselected answer, if using the Powerpoint versions.4 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

BudgetingBudgeting is the first module of the TIMMI curriculum. It includes introductions to theinitiative and teachers, a pre-assessment, and a lesson on the decision making process,budgeting, and emergency funds.Introduction to TIMMI and TeachersThe Powerpoint for this section is “Introduction.pptx” and included on cdn.timm-i.org.Begin by introducing yourselves and our initiative (very briefly). You’ll be introducing more detailedinformation about TIMMI and its goals after the pre-test. On the following slide, you’ll replace thepictures and captions with your pictures and names.  TIMMI stands for the Teaching Investment and Money Management Initiative  Our goal is to teach you how to make smart decisions when dealing with money—that includes budgeting, saving, borrowing, and investingPre-TestPlease spend no more than 5-10 minutes on this assessment. Detailed information about theseassessments is available in the introduction.Three versions of the assessments are available in the Appendix – please randomly distribute theseversions to students. Also distribute tests and pens/pencils, and announce the following directions:  This is a pre-test that is not graded and does not get associated with you in any way; the only purpose of this test is to see how well we teach you  Ignore the instructions at the very bottom today  Please try your best to complete each answer, though you might not know some answers  We cannot help you with this test, but you’ll learn everything on there in TIMMIMake sure that students write their names on their tests. Do not help students with their tests, butencourage them to try their best.Teaching Investment and Money Management Initiative Curriculum | timm-i.org 5

More about TIMMIHere, you’ll explain some more about our initiative and its larger goals.  Financial literacy means knowing about the economics and money that control our lives  In life, you’ll be faced with all different types of financial challenges, like saving up money for different goals, or finding yourself without any money for daily expenses  The way to succeed is by saving and growing money through making smart decisions  Money management is important no matter how much money you have – there’s always ways to make the best of what you have  This is especially important in today’s world, where so many people aren’t financially literate  They don’t make smart decisions with their money, and end up with overwhelming debt and no savings, and really struggle to survive…which is a huge problem that can solved  The reason they’re not financially literate is because they were never taught, which TIMMI is going to change— it doesn’t have to be this wayShow students the large financial problems in today’s world, like foreclosures and student debt.Explain, if necessary, that foreclosures occur when people can’t pay their mortgage and have theirhouse taken from them by the bank.6 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Ask if they have heard of these or other types of debt and financial problems burdening society (forexample, have they seen commercials on TV about bankruptcy and debt?).Then ask students what they think the median savings in America is (explain, if necessary, thatmedian is the middle of a list of all Americans’ savings). Around $10,000? Around $100,000? More?Explain that the median American savings is, in fact, $0. Then ask if students know what theAmerican Dream is, and ask what it entails. Student responses should include material factors likeowning a home, but if they don’t, suggest them as traditionally important to the American Dream.After this, ask if these possibilities still seem realistic, given the financial conditions of today.The Decision Making ProcessThe Powerpoint for this section is “Budgeting.pptx” and included on cdn.timm-i.org.Start your teaching on the Decision Making Process by explaining what it is.  The Decision Making Process is a process to make decisions  There are 5 major steps in the Decision Making Process, but the steps are fairly simple  We should use the Decision Making Process because it gives a straightforward and simple way to make good decisionsNow your students will learn the steps of the Decision Making Process by ordering them.Emphasize that these steps are not rigid and what many people naturally do when making decisions.Teaching Investment and Money Management Initiative Curriculum | timm-i.org 7

Run through a sample decision making process with students. Make sure to emphasize the steps ofthe process – that is, the titles of the slides.  Why do we need to reflect on results once we make the decision?  Reflecting on results is extremely important for helping you make future decisions, whether they’re in similar situations or use similar ways to analyzing alternativesNow allow students to apply the decision making process to sample case scenarios in groups, whileprojecting the “Decision Making Process” slides with steps. These fictitious scenarios can be foundin the Appendix.Teachers should walk around and join group discussions on making a decision. Ask students aboutthe problem and the alternatives, helping them recognize the complexity of the alternatives. Thescenarios are set up so that each alternative has benefits and drawbacks, and can be correct.After students decide, inform them that they made the correct decision. Why? Because they used thedecision making process!8 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Opportunity CostsAfter reviewing the Decision Making Process, discuss opportunity costs.  The opportunity cost is what you miss from not choosing the next best alternative  It’s basically the value to you of the second best choice (which you lose, since you chose the first best)Ask students “Who here wants to make money?” and choose two volunteers. Instruct one to dosomething non-productive (play/text on phone, just sit there, etc.) and instruct the other one to dosomething productive (for example, pretend to sweep the floor). Give the productive student areward (fake money, candy, etc.) and explain that this is the non-productive student’s opportunitycost.  By choosing to play/text on his/her phone, (Student) is missing out from the alternative  His/her opportunity cost is the benefit that comes from the alternative!Briefly go over opportunity costs with two examples.Have students describe the opportunity cost of the decision they just made in groups. Then, ask forstudents to give examples of decisions they recently made in real-life, and identify the opportunitycosts of those decisions.Teaching Investment and Money Management Initiative Curriculum | timm-i.org 9

BudgetingDiscuss what a budget is.  A budget is a way to organize expenses and income  It’s important for achieving financial goals (saving more money) because otherwise it’s easy to spend too much without a planDiscuss how a budget is created.  To make a budget, you’ll find out your income and expenses so you can calculate savings towards your financial goals  Savings = income – expenses, so the more you spend, the less you save!Explore this relationship by asking for two volunteers. Give both the same amount of money (fakemoney, candy, etc.), calling this their incomes. State that (one student) knows how to budget while(the other student) does not. Collect all of the budget-unknowledgeable student’s money, but onlycollect some of the budget-knowledgeable student’s money. Let him/her keep the rest.  (The budget unknowledgeable student) didn’t budget, so his/her expenses weren’t planned and ended up taking all of his/her income  (The budget knowledgeable student) did budget, so he/she was able to reduce his/her expenses and leave room for savings at the end10 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

After learning the steps, students will explore them in depth by applying steps to sample casescenarios (Appendix). These scenarios ask students to calculate the amount of savings each monthtowards a goal, knowing that Savings = Income – Expenses.After students initially calculate savings, ask them to come up with a solution to reach the goalsooner (i.e. save more money each month by lowering expenses). The case scenarios are designed tohave natural ways to cut costs.Emergency FundsDiscuss what emergency funds are. Emergency funds are back-up savings account of money needed for unexpected, financially problematic events (like getting fired, having your car break down, or having a family member become ill) Emergency funds ensure you’ll be able to get out of the emergency financiallyNow, groups should act out emergency situation skits that revolve around disastrous andunexpected circumstances. You may wish to use examples from the Powerpoint, or groups cancreate their own scenarios if there’s enough time.After each group presents, you should ask them what they would’ve done differently if they were theperson undergoing the situation—make an emergency fund!—if they don’t mention it.KahootThe Kahoot can be found at timm-i.org/d1/kahoot.1. What is opportunity cost? 2. What is the first step in the decision makinga) The value you miss from the next best process?alternative a) Decideb) A way to organize your expenses and your b) Brainstorm alternativesincome c) Identify the problemc) The cost of a new wallet d) Evaluate/Analyze alternativesd) A way to minimize expensesTeaching Investment and Money Management Initiative Curriculum | timm-i.org 11

3. What is step two of the decision making 8. What’s one main goal for creating a budget?process? a) Make sure you save enough moneya) Reflect on results b) Figure out how much more money you canb) Brainstorm alternatives spend on foodc) Identify the problem c) Increase your incomed) Evaluate/Analyze alternatives d) Make sure you spend all of your income4. What is step three of the decision making 9. What is the opportunity cost of Caitlinprocess? going to college instead of getting a job?a) Decide a) College tuitionb) Brainstorm alternatives b) Salary of the jobc) Reflect on results c) Textbook costsd) Evaluate/Analyze alternatives d) Knowledge he learns from going to college5. What is step four of the decision making 10. If Monica goes to the movies instead ofprocess? studying, what is her opportunity cost?a) Decide a) Going to the moviesb) Brainstorm alternatives b) The cost it takes to drive to the moviesc) Identify the problem c) Studyingd) Evaluate/Analyze alternatives d) There is no opportunity cost6. What is step five of the in the decision 11. What are the three main things to considermaking process? when making a budget?a) Decide a) Rent, food, and utilitiesb) Brainstorm alternatives b) Insurance, gas, and cell phone billc) Identify the problem c) Income, expenses, and savingsd) Reflect on results d) Your favorite three places to shop7. What does an emergency fund assure? 12. Rachel’s has a good monthly income anda) That you’ll be in less debt fully uses it to pay all of her bills. Why is this ab) That you won’t be able to afford your problem?mortgage a) It’s not a problemc) That your parents will always be able to b) There’s no chance of something badhelp you out in financial situations happeningd) You’ll be able to securely get out of c) She doesn’t have an emergency fundpoor financial situations d) She can’t to handle her expenses12 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

13. What is not part of a budget? 14. Most of the time there is no alternative ina) Amount of income making a decision.b) Amount of expenses a) Truec) Amount of savings b) Falsed) Amount in bank account 15. Savings = Income – Expenses a) True b) FalseTeaching Investment and Money Management Initiative Curriculum | timm-i.org 13

CreditCredit is the second module of TIMMI. Topics in the lesson include credit’sbenefits, credit’s drawbacks, how to obtain credit, and how to use credit (wisely).About CreditThe Powerpoint for this section is “Credit.pptx” and included on cdn.timm-i.org.Begin this section by discussing what credit is.  Credit is the ability of a person to borrow money (in loans that will be paid back over time)  Credit is important for buying things you can’t buy if you didn’t have all of the money available firstAsk the students to name some examples of very expensive things that people need to borrowmoney to buy. Use the slideshow to show some things credit is needed (in most cases) to afford.  With all of these things, you don’t have thousands (or hundreds of thousands) at first  To purchase these things, you would borrow money and pay it back over time14 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Now ask for two student volunteer. Give one a big pile of change, and ask him/her to count out aspecific sum of change (say, $1.47). Give the other one a makeshift credit card (e.g., a hotel key card,an index card) and simply ask him/her to swipe the card. Use this to demonstrate that an importantbenefit of credit cards is that they are convenient!  Credit cards are convenient, since you don’t need to bring out cash every time you buy something  You “borrow” the money every time and just pay back all expenses together at the end of the monthInterestBegin by demonstrating an example applicable to students’ daily lives in school. Ask for four studentvolunteers. Call one the “lender,” the second a “friend,” the third an “untrustworthy person,” andthe last a “person who always does things late.” Show the following example: (The friend) borrows $5 from you in lunch money. If the friends pays (lender) back in a day, (lender) would probably just want $5 back. But what would happen if (lender) couldn’t trust (untrustworthy person)? He/she took a risk here…wouldn’t (lender) want extra? And what would happen if (person who always does things late) borrowed the money? (Lender) would probably want a little extra since he/she would get back the money late.Teaching Investment and Money Management Initiative Curriculum | timm-i.org 15

Discuss interest, one cost of credit.  This extra charge to borrow money is interest!  After all, credit doesn’t just help the borrower – the lender benefits too!  The lender benefits because of interest – an extra charge for you to borrow the money in the first placeShow how expensive interest can be by calculating the cost of a mortgage. Visit realtor.com (or asimilar website) to find a home to buy in your community. Then, visit a mortgage payment calculator(we recommend the Bankrate.com one, found at timm-i.org/d2/calc), type in the home price for30 years and keep the interest rate in line with current rates.  Buying a home by borrowing money (and using a mortgage) costs almost twice as much as buying the home upfront  This is because of interest—the lender is charging you to borrow money for so longMake sure students understand that credit cards don’t necessarily have interest.  Credit cards, while they are credit, don’t have interest if you pay the full amount back each month  There’s no interest since you basically pay the “loan” back immediately  But if you don’t pay credit cards back each month, they have extreme amounts of interest!16 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Obtaining CreditExplain important factors in receiving credit by first asking for three student volunteers. Preparethree pieces of paper each with a large “C” on the front, and each with a different picture on theback reflecting one of the three C’s (for example, a picture of a person walking to work for capacity).  There are three important factors considered about you when you try to obtain credit  They are the three C’s of character, capacity, and capital  They help lenders predict how well you’ll pay back the loan (or if you’ll pay back the loan at all)  Lenders look at these three C’s to determine whether or not you get a loan, and if they’ll charge you high or low interest  If you have good credit, you’ll be charged a lot lower interest than if you had bad creditRip the “C” off of the student with the taped paper about character.  Character depends on if you’re honest and reliable (and have been in the past, with previous loans)  Other things can determine your character—for example, a criminal record for theft would hurt your characterRip the “C” off of the student with the taped paper about capacity.  Capacity depends on your income and financial ability to pay back the loan  For example, do you have a good job that pays you enough every month to pay back the loan? Or is it possible you’ll lose your job in the near futureTeaching Investment and Money Management Initiative Curriculum | timm-i.org 17

Rip the “C” off of the student with the taped paper about capital.  Capital depends on the things you have that the lender can take if you don’t pay  If you borrow a mortgage to pay for a house, for example, then the house is “capital” since the lender can take it back if you don’t pay back your loanHelp students understand these different factors by giving them a list of possible things to considerwhen applying for credit, and having them sort them into the three C’s in groups. A printableversion of these factors (that you can cut) is available in the Appendix.Note: some of these (like working at the same firm for 15 years) can fit into more than one C!Explain what a credit score is.  Your credit score is a number that ranks your character – the higher it is, the better  If you take a loan and don’t pay it back on time, for example, your score might drop by 50 points  If you have a credit card and pay it back every month, your score might increase by 50 pointPrepare a spinner that looks like the one in the Powerpoint (for example, attaching an arrow to acolored half-plate with a fastener). Ask for one student volunteer, and say aloud certain actions thisperson hypothetically had done while reflecting the respective credit score change on the spinner.For example, say that this student “borrowed $1000 and never paid it back” and spin the arrow tothe left, or say that this student has a “permanent, well-paying job” and spin the arrow to the right.18 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Give students sample “credit reports” from loan applications. They’ll become bankers and decide ifthey want to grant a loan, and if the loan should have low/medium/high interest. Credit reports canbe found in the Appendix.While there can be some controversy over these individuals, the best respective answers are:  Nikki: grant a loan at a low interest rate because she has a high credit score, has good capacity with investments and a job, and has good capital from investments and assets  Joe: do not grant a loan, because Joe has little capital, little capacity without a job, and evidently does not have good character in paying back loans  Jack: grant a loan at a high interest rate because Jack has a “reliable” capacity at the restaurant and has some capital, but doesn’t have good credit from missing payments  Jill: a loan with a low or high interest rate works for this one. Jill’s capacity seems strong from her job and investments, but we know nothing about her capital. We also have no information on her character, as she has never taken out a loan before.  Nick: do not grant a loan, because Nick has no capital and no credit character. His capacity seems shaky at best, given his large amount of firings.Paying Off CreditDiscuss paying off credit and not paying off credit.  It’s better to pay off credit earlier— you’ll pay less interest, since interest gets charged on interest (it’s complicated!)  Always try to pay back as much as you can as soon as you can!  For larger loans like mortgages and student debt, you can always pay back more than the monthly payment – it’ll be cheaper in the long run!  For credit cards: many times there will be only a small required minimum payment (like $25), but you should always pay it off in full so you don’t get charged interestShow how a mortgage can be cheaper if paid off in a shorter amount of time. Using the samesituation/house/interest and same calculator, calculate the mortgage for 15 years. Explain howpaying the loan off quicker (paying more per month) can greatly reduce the cost of the loan, andemphasize the underlying principle that paying off credit earlier reduces interest.Teaching Investment and Money Management Initiative Curriculum | timm-i.org 19

Not Paying Off CreditBegin with a demonstration: one teacher (or one extremely brave student volunteer) should serve asthe debtor. Say that this borrower owes $1000, and that for every $1000 owed, one person from thebank will come (aggressively) asking for money. Have a student serve as this initial collector.When this collector asks for at the debtor to pay, the debtor should refuse. Every time this happens,explain that the debt will increase from interest—so the amount of students yelling at the debtor topay will increase (with the debtor always not paying). Eventually and quickly, this will becomeoverwhelming. Instruct that this represents the problems of not paying off credit.Then explain the numerous immediate and long-term consequences of not paying off credit.  Not paying back loans on time (or at all) results in even more interest  This makes the total you owe even larger and even more impossible to pay back (just like the number of people yelling before)  If you don’t pay back loans, the lender can take your capital too  This may include a car or house (or your jewelry, etc.), especially if the loan was to buy the car or house in the first place  Not paying back loans on time also destroys your character and a credit score  Since you’ve proven yourself to be less responsible, it’ll be hard to receive a loan at all—if you get one by luck, you’ll have to pay very high interestTo further demonstrate this, ask for one student to volunteer and bring his/her property (a pencilcase or backpack on him/her, for example). Say that this person took out a loan, and never paid itback. Demonstrate repossession by (jokingly) confiscating the student’s items. Demonstrate theinability to obtain credit by offering a prize (candy, a toy car, a printed out picture, etc.) and refusingto give it to the student, citing that he/she has bad credit and can’t borrow money to buy it.20 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

KahootThe Kahoot can be found at timm-i.org/d2/kahoot.1. What is interest? 6. What happens if you do not pay the fulla) The cost of buying a new phone amount on your credit card bill each month?b) The cost of borrowing money a) You are no longer trusted by the bankc) How financially stable you are in order for a b) You face extreme amounts of interestbank to lend you money c) You earn 10% interestd) Allowing your interests to be taken into d) You are taxedconsideration 7. What happens if you DO pay the full2. If you needed to borrow money from the amount on your credit card bill each month?bank for a new car, which would you be a) You don’t have interestdoing? b) You have to pay 50% more interesta) Paying interest c) You have to cancel the credit cardb) Earning interest d) You can borrow more money than usualc) Paying off debt from the bankd) None of the above 8. Which is a way to increase your credit3. How do credit cards benefit you? score?a) They make you look like you’re wealthy a) Buy moreb) Allow you to pay all expenses together b) Lend more moneyat the end of the month c) Reduce the amount of debt you owec) Assure financial stability d) Take all your money out of the bank andd) You make money every time you buy a put it in a new bankproduct 9. If Kate wanted to buy a house, but the4. What are the three important factors house has a mortgage, what does that mean?considered when obtaining credit; the three a) The previous owners left money for herC’s? b) The bank can take away her job if shea) Character, Capacity, Capital doesn’t pay off her mortgageb) Character, Collaborative, Credit c) She has to pay the mortgage in cashc) Credit, Capital, Capacity d) She’ll pay almost twice as much for thed) Cost, Credit Capital house since interest is expensive5. How does a lender benefit from interest? 10. What does one’s capacity depend on?a) They get a free pizza party a) The type of bank(s) you have money inb) Their credit score goes up b) The amount of interest you already owec) They get a new installment loan c) Your income and financial ability to payd) They get paid interest plus the initial back a loanmoney they loaned out d) How much credit you’ve recently spentTeaching Investment and Money Management Initiative Curriculum | timm-i.org 21

11. Why is it better to pay off credit earlier 13. Not paying back loans hurts you now andthan later? in the future.a) You’ll pay less or no interest (interest a) Truegets charged on interest) b) Falseb) You’ll get an extra 15% off your carinsurance 14. Which would be considered as being “inc) The bank will appreciate your dedication debt”?d) You won’t be forced to pay with cash a) Paying your rent b) Working at a local supermarket12. Which option would fall under the c) Owing money on credit cardscategory of “character” when trying to obtain d) Volunteering for a non-profit organizationa loan?a) Making money on investments 15. Credit cards will charge you interest evenb) Having a home as collateral if you pay the minimum payment.c) Owning expensive jewelry a) Trued) Not paying back previous loans b) False22 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

InvestingInvesting is the third module of TIMMI. Topics in the lesson include saving money,risk and reward, different ways to invest, and strategies for investing in stocks.Saving MoneyThe Powerpoint for this section is “Investing.pptx” and included on cdn.timm-i.org.Explain how saving even a little bit of money goes a long way.  Just like how debt can significantly increase due to compound interest, so can savings  Saving even a little bit of money can go a long wayDemonstrate compound interest, one of the most important principles of money management.Ask for two student volunteers, and give them “$20” in fake money (paper money, candy, etc.). Tellthem that every time they count to 10, you’ll give them half of their money as “interest.” The firsttime, explain to the class that the students earned $10, half of their money. The next time, explain tothe class that the students earned $15, half of their new balance.  This is compound interest – all of your money, including the interest you earned, is counted to determine your new interest  You’re earning interest on your interest, which sounds confusing, but just know that you’ll be earning more money than you think by saving!Demonstrate the power of saving by using an online savings calculator.Ask for a low amount of money to save daily ($1, $5, etc.) and compare this amount to somespending (for example, a bag of chips at lunch). Then, visit a savings calculator (we recommend theBankrate.com one, found at timm-i.org/d3/save), type in the monthly deposit (daily deposit *30) along with a $1 initial amount. Use the annual interest given (around 7%), and look at the resultsthrough 5 years.Ask if students remember the formula from the class on Budgeting: savings = income – expenses.Remind them that the less they spend, the more they save – so even if they save $1 by not buying abag of chips every day, it’ll grow in the long term!Teaching Investment and Money Management Initiative Curriculum | timm-i.org 23

RiskExplain what risk is, and what is has to do with profits.  Risk is the possibility that something bad will happen (and that you’ll lose money)Then, discuss the relationship between risk and return.  Let’s pretend that tomorrow’s a snow day (or you think your teacher will be sick), and you decide to watch TV instead of doing work for school  Usually, homework takes you 30 minutes and studying for a test takes you 2 hours  If you don’t do homework, you’re taking a smaller risk since homework counts less than tests—but there’s also a smaller reward since you would only save 30 minutes  If you don’t study for the test, you can get a greater reward of saving 2 hours, but you’re taking a much larger risk since the test counts for much more than homework  The higher the risk, the higher the reward can be!  A large risk can also mean a larger loss, however, so be careful!24 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Ways to Grow MoneyCompare bank accounts, bonds, and stocks on the premise of interest/return and risk.  Bank accounts have close to zero risk, but that also means they have close to zero interest  On average, if you put in $100, you would gain only 5 cents of interest after a year  You won’t be able to grow money in a bank accountDemonstrate the interest from bank accounts by asking the class “Who has a bank account?” andchoosing one student volunteer. Give this student some “money” (fake money/candy/etc.) and askhim/her to place it in your hands, pretending that the money is now stored in a bank account. Talkto the class as if something exciting is going to happen to the money, keeping them waiting insuspense. After around 30 seconds to a minute of doing nothing (and waiting), explain that this iswhat happens to money stored in a bank account: nothing.  Bonds are loans you make to large companies or governments so they can do large projects, like building a bridge or pioneering a product  These are the opposite of when you use credit – you’re the lender now!  Since you get charged interest when borrowing money, you can also charge these companies/governments interest  The amount of risk depends on how likely the borrower will pay you back, and the interest depends on the risk of course!  Owing stock is owning a very small part of a company, so whether you gain or lose money depends on whether the company gains or loses money  The risk depends on the type of stock…Teaching Investment and Money Management Initiative Curriculum | timm-i.org 25

Explain stocks with a simulation. Ask for a student volunteer, and give this volunteer fake money(or say that this volunteer has “money”). Have this student “buy stock” in a company.  Since (student) bought stock, he/she now owns part of this company (the red section) depending on how many shares he/she bought  He/she now gets to receive profit if the company makes money, but also will lose money if the company loses money  This profit/loss is based on how much of the company (student) ownsShow a large sum of “money” (with fake money/candy/etc.) and explain that this is the company’sprofit. Give part of this to the student, since the investor gets his/her share of the profit.Types of StocksAsk students to name some large companies they know (Apple, McDonalds, etc.). Explain thatinvesting in these companies would be a safe investment in a blue-chip stock.  Blue-chip stocks are from large, well- known companies that usually do well  They’re low risk, and have a good return of around 7-8% a year, which would make you $7-$8 if you invested $100Explain blue-chip stocks by playing a game to identify logos.On each slide, students must choose one of the two logos to guess. Ask them to choose the onethey think they know, and then have them guess what company the logo is from. There are 6 side-by-side games; the answers are listed below. Bolded answers are the blue-chip companies; almost allstudents should choose and identify them.26 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Left Side of Slide Right Side of SlideApple Ubiquiti NetworksCoca-Cola GlobalstarSilicon Graphics Home DepotNike Millenial MediaVerizon Service SourceBroadSoft McDonald’sExplain what this logo game represents.  In each round, there was one logo that you probably knew – they were of well-known companies like Apple and Nike  Choosing to guess the one you knew was a safe choice, and kind of like investing in blue- chip stocks – you’re choosing a large and well-known companyTeaching Investment and Money Management Initiative Curriculum | timm-i.org 27

 There are also more risky stocks known as penny stocks  Penny stocks are the opposite of blue- chip stocks: they’re in small companies and they’re very risky (so they can have very large returns or very large losses)  Investing in a penny stock would kind of be like choosing the other logo in each round  Those logos were of penny stocks – you’ve probably never heard of them because they’re so small, so choosing them would have been riskyChoosing a Stock to Invest InExplain the most important rule in picking a stock with a game. Ask for one student volunteer, andgive this volunteer a choice between a visible prize (candy, for example) and a closed box (filled withnothing, unbeknownst to the student). Say that this closed box may have something even better, butnobody knows for sure.After the student selects one item, show both and explain that choosing the closed box would be avery bad idea since nobody knew anything about it. Continue on to explain the golden rule ofpicking a stock.  The biggest rule is if you don’t understand what the company does, don’t invest in the stock  In the game before, if you didn’t know what was in the box, choosing it would have resulted in ending up with nothing!  A key strategy is to look at industries you’re familiar with, and find ones that are performing better than the market, and find good companies in that industry  For example, if you know about technology, you’ll should see which technology companies are doing well  Did Apple just release a really popular phone? Is Samsung coming out with a tablet that’s going to be successful? If so, their stock will probably go up!28 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Other Strategies for InvestingSay that it’s important to decide what type of investor you wish to be.  Short-term investors look to base their investments off in less than a year, while long-term investors look for future growth beyond a year  Beyond time period, you should decide how risky of an investor you want to be  Since you’re young (and we’re young too), we have time on our side, so we can and should invest for the long-termExplain some strategies for getting advice about investing. There are many radio and TV shows  about stocks, such as Mad Money by Jim Cramer on CNBC or Taking  Stock on Bloomberg Radio You can learn, for example, how certain industries are performing and decide if investing would be a good idea  While you can get information about stocks from legitimate sources, many people will try to trick you by giving you fake “stock picks”  They will promise you that you’ll earn money quickly and easily, which is a downright lie If you follow their “advice” and buy the stock, it only helps them and will end up losing you lots of money very quickly The man in the picture is Timothy Sykes, who offers “stock picks” on the internet—would a honest person need to pose with stacks of cash?Teaching Investment and Money Management Initiative Curriculum | timm-i.org 29

Demonstrate this by asking for one student volunteer, and giving him/her a sum of fake money toinvest. A teacher should then offer to double the student’s money, if the student “invests” withhim/her.If the student agrees, take the money and tell the student “You were tricked!” – explain that nobodycan double money, and people who say they can will just take it all. If the student doesn’t agree, tryto persuade the student using tactics in similar stock scams (e.g. describing previous successes,offering alluring promises, etc.). If the student miraculously doesn’t agree, explain that he/she madethe right decision since nobody can double money, and people who say they can will just take it all.FundsExplain mutual funds and index funds.  Mutual funds are where many investors chip-in to buy many stocks and bonds together  A manager will usually choose the stocks and bonds in the fund, depending on what type of fund it is—there are high risk and low risk mutual funds, for example  Mutual funds are usually a good option for beginning investors, and probably better than stocks, since a professional manages your money and spreads it out across many investments  Mutual funds are safer, since you invest in so many different things; if one stock crashes down, the entire fund doesn’t blow up in flamesPrepare the class for learning about index funds by emphasizing that index funds, out of the optionsin TIMMI, will probably be the best investment they can make for now.  Index funds are mutual funds, but they follow a predetermined market index instead of being managed by a professional  Since there’s no manager, you’ll pay less fees when investing but still get similar profits  Index funds are probably the best option for you, as young adults beginning to invest30 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

 So mutual funds are kind of like buying pizza – where everyone chips in, and you share the final pie  Mutual funds are like paying the person who orders the pizza to spend time choosing what they think is really good Index funds are like choosing a popular classic, which can work well, and you won’t have to spend extra making sure the choice is really good Mutual funds are like pizza in another way too – they’re probably the best investment option for beginning investors like youKahoot 4. Group the following investment vehicles in order of least risky to riskiest.1. If an investor wants to take the biggest risk, a) Bank Accounts, Penny Stocks, Bondswhat should he do? b) Penny Stocks, Bonds, Bank Accountsa) Put his money in a bank account c) Bank Accounts, Bonds, Penny Stocksb) Buy several bonds d) Penny Stocks, Bank Accounts, Bondsc) Invest in penny stocksd) Put his money under his bed 5. Group the following investment options in order of the average profit, from greatest to2. If Jim puts $1,000,000 in his bank account, least.approximately how much interest will he get a) Bank Accounts, Bonds, Stockspaid after a year? b) Bank Accounts, Stocks, Bondsa) $100 c) Stocks, Bonds, Bank Accountsb) $10,000 d) Bonds, Stocks, Bank Accountsc) $50,000d) $1,000,000 6. What should Ally do if she is a very conservative investor and is interested in3. What is risk when making an investment? growing her money by around 8%?a) The possibility that you’ll lose money a) Invest in penny stocksb) Profit made through an investment b) Invest in blue chip stocksc) How easily you get direct cash from an c) Invest in stocks with a small market capinvestment d) Put money in his bank accountd) A contract made between an investor and acompanyTeaching Investment and Money Management Initiative Curriculum | timm-i.org 31

7. What’s special about an index fund beyond 11. What is probably the best investmentjust a regular mutual fund? option for now?a) There’s no active manager, so you’ll a) Bank accountpay much less in fees b) Penny stocksb) It’s much more risky c) Mutual/index fundsc) The interest is very low, almost like that of d) High-risk bondsa bank accountd) They randomly choose stocks by drawing 12. What’s one benefit of a mutual fund?index cards a) You become friends with other investors b) You get to choose exactly which stocks you8. What do all blue chip stocks have? invest ina) A large market cap c) They spread out their investment inb) A very low price many different stocks and are saferc) A very risky position d) You get pizza as a rewardd) A graph that jumps around constantly 13. The higher the risk, the higher the interest9. What should you do if someone tells you a can be.stock and promises that it will go up? a) Truea) Invest around 20% of your money in it b) Falseb) Invest all of your money in itc) Charge your friends and tell them the stock 14. Saving in a bank account will grow yourd) Know the person is trying to scam you money with good interest over time.and run a) True b) False10. What is a general rule for investing?a) If you don’t know what the company 15. You should closely follow the advice ofdoes, don’t invest in it people with “stock picks” in the mail or onb) If the stock went down today, don’t buy it the internet (like Tim Sykes).c) Only invest in blue-chip companies a) Trued) Quickly buy stocks that went up yesterday b) False32 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Day FourDay Four is the last module of TIMMI.Day Four begins with a game: a makeshift scenario where groups start out with some initial money,and try to save up enough to achieve financial goals.Each group will start out with $1000 in makeshift money. You can use a projector, whiteboard, orpiece of paper to track this money. Each group also starts with $400 in debt, which grows frominterest each round. They must pay this debt off before the game and can do so in any round (or atthe start), but must pay the entirety back at once.At the end of the game, students will win prizes based on the amount of money they finish with. If agroup buys a prize, all of the students should receive the prize. Some suggested prizes and amounts:  $1000+ – small gift card ($3-$5) to a local treats store like ice cream, coffee, etc.  $900 – large candy or snack treat  $750 – smaller candy or snack treat  $600 – pencil, notebook, or other fun school item  Feel free to substitute other prizes based on what you have/local sponsors can provideThe game has 4 to 6 rounds (~5m each), depending on time. During each round, groups make adecision about how to manage their money and complete the “transaction” at the end of the round.You must decide and announce if compound interest will be considered in this game.During each round, the following investment options are available:  Bonds: earn 25% for three rounds, and must invest for exactly three rounds  Stock: earn (or lose) based on a die roll when groups want to take their money out (or at the end of the game) – 10% per round if roll a 4/5/6, 5% per round if roll a 2/3, and lose 5% per round if roll a 1.  Fund: earn (or lose) based on a die roll when groups want to take their money out – 15% per round if roll a 2/3/4/5/6, and lose 10% per round if roll a 1Preparation:  Dice to roll for stock investments  Paper/whiteboard/projector to keep track of money AND display investment alternatives  Prizes  Calculator or cellphone calculatorTeaching Investment and Money Management Initiative Curriculum | timm-i.org 33

To Start:Announce the following directions about the game:  Each group will start out with $1000 in money and $400 in debt  The debt must be paid off before the game ends, and it gets larger over time due to interest – you must pay all of the debt back at once  The game has (4-6) rounds where you make a decision about how to manage your money and complete the transaction at the end of the roundAnnounce what the prizes are, and what they cost.Using the slide with information about investment alternatives, explain the following:  You can invest in bonds, but you’ll have to invest for exactly 3 rounds. At the end of the three rounds, you’ll earn 25% interest total on your money.  You can also invest in blue-chip stocks for any length of time. The interest will be determined by a die roll at the end of your investment – when you wish to take your money out. If you roll a 3, 4, 5, or 6, you’ll have earned 20% interest per round before the roll. If you roll a 1 or 2, lose 10% of your money per round.  You can also invest in a fund for any length of time. The interest is determined the same way as the blue-chip stock, except you’ll earn 15% interest if you roll anything but a 1, and lose 10% of your investment if you roll a 1.Display the following slide with these investment possibilities. The Powerpoint for this section is“Game.pptx” and included on cdn.timm-i.org.34 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

During Each Round:Make each round around 5 minutes, or whatever is necessary for students to make decisions on howto manage their money.At the end of each round, teachers should ask each group what they wish to do with their money. Ifthey wish to take them out of stocks or bonds, teachers should perform the necessary calculations ofreturn (letting students roll the dice). For example, if a group wishes to take out a penny stock theyhad for 2 rounds and rolled a 5, they would receive their investment back and 50% extra profit.At the end of the game, calculate how much money each group has (and award prizes accordingly).You’ll need to withdraw all money from stocks/bonds, as well as collect remaining debt.Post-Test:Please spend no more than 5-10 minutes on this assessment. Detailed information about theseassessments is available in the introduction.Three versions of the assessments are available in the Appendix – please randomly distribute theseversions to students (don’t regard what version students might have gotten before). Also distributetests and pens/pencils, and announce the following directions:  This is a post-test that is not graded and does not get associated with you in any way  The purpose of this test is to see how well we taught you  Please try your best to complete each answer, though you might not know some answers  On the back, please write one thing you liked about TIMMI, one thing you didn’t like about TIMMI, and one sentence about how TIMMI will help you in the future  We cannot help you with this test, but you learned everything on here in TIMMIMake sure that students write their names on their tests. Do not help students with their tests, butencourage them to try their best.The End You’ve finished the TIMMI curriculum! Congratulate yourselves and the students, and provide students with certificates. A version you can fill out by hand is included at the end; a fillable Word document version of the certificate can be found at cdn.timm-i.org.Teaching Investment and Money Management Initiative Curriculum | timm-i.org 35

Appendix – Budgeting: Decision Making ScenariosYou’re finishing your second year of college and your final is two days away, which counts for mostof your grade for the class. You haven’t truly prepared for it and are somewhat nervous.Your friends, who you worry about losing contact with, invite you to dinner and a movie the nightbefore the final – this may be the last chance you get to see them this year. The restaurant you’re awaiter at (you work to pay for college) will also be hosting a special event that same evening andrequires that all employees are there.What do you do?Life is going well for you: you have finally saved enough money to buy a home.There is a house, townhome, and apartment currently on the market that are all in your price range.The house is the largest and has the lowest taxes, but is on the outside of town and suffers loudnoise pollution from the highway. The townhome is in a nice residential section of town, but isslightly smaller and has somewhat higher taxes. The apartment is downtown, making it easy to walkto your workplace as well as most of the stores/restaurants/community centers in your city, but hashigher taxes than the house or townhome.Where do you choose to live?You’ve made it big—you’re a singer who’s become famous!Three different records offer you contracts to sign with them. Star Records is run by your UncleTom, who you remember as constantly being by your side when you were an aspiring musician.They would only pay you $750,000 per album produced, while Pearl Records and Palace Recordsboth offer $1,000,000 per album produced. Palace Records is also willing to give you a nice signingbonus of $500,000—in the past, they’ve always hit upon the next big thing (even if it meant ditchingcurrent artists). Pearl Records doesn’t offer a signing bonus because they feel that a long-termcommitment to an artist would result in greater rewards for everyone involved.Which record label do you choose to work with?36 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

You’re 40. You’ve worked for over a decade in banking, a stressful industry where it was hard to gethired. While your salary is comfortable, you’ve slowly become less and less happy doing your job.A friend hears of your troubles and offers you a job at the nonprofit organization she started a fewyears ago. She thinks your finance background would be perfect for trying to save the world, but canonly pay you around half of your salary at the bank (since it’s a nonprofit). After hearing about hersuccessful nonprofit, you also consider starting a for-profit company with what you think is a goodidea. Previously, you dismissed the idea because it seemed risky and your salary would be very low(or zero) starting out, but now you’re reconsidering it after your friend’s success.How do you solve your midlife crisis—stay at the bank, join your friend, or start a company?You’re in high school, and trying to find a club to dedicate your time to. You really care aboutfinance and economics, and find there are three clubs you could join: TIMMI (hey, that’s us!), LBFA(Leaders Becoming Future Activists), and DPP (Demand Protection Project).TIMMI’s community service-based goal is to bring financial literacy to middle-schoolers, so youwould be teaching fun and interesting lessons in that club. LBFA is more focused on large (state andnational) competitions testing your knowledge of finance, with awards you can win. LBFA can beexpensive, though, because of these competitions. DPP seeks to promote small businesses in yourcommunity, so its activities include hosting fun events at shops/restaurants. Even though DPPwon’t earn you community service hours, you could get opportunities like jobs at these businesses.What club do you join?Teaching Investment and Money Management Initiative Curriculum | timm-i.org 37

Appendix – Budgeting: Making a Budget ScenariosJulia is a single woman who has owned her own restaurant, which specializes in coffee, for manyyears and also tutors on the weekends. Julia makes $9,000 every month from her restaurant, andanother $500 from her tutoring business. Her expenses add up to $4000 monthly, and her dailyStarbucks costs an additional $300 monthly. Julia is trying to save up for a Mercedes-Benz for$72,000. Help Julia create a monthly budget that will help her save for her financial goal, andestimate how long it would take Julia to buy the Mercedes.Nick is a seventeen year old student and wants a brand new iPhone because his old iPhone brokewhen he dropped it in a pool. Nick makes a $160 per month by working at a local pizzeria, where hegets an employee discount. Nick’s expenses add up to $60 from gas and $50 from eating out. TheiPhone 6 that he wants costs $300. Help Nick create a monthly budget that will help him save for hisfinancial goal, and estimate how long it would take Nick to buy his new iPhone.Caitlin is a teacher and a boxer. She has a passion for working out, and she wants to buy some gymequipment that costs $1,200. She makes $4,600 from teaching and $2,400 from boxing each month.Caitlin has excessive spending habits and has around $6,900 in expenses per month, including $2500on Mountain Dew to stay hydrated. Help Caitlin create a monthly budget that will help her save forher financial goal, and estimate how long it would take Caitlin to buy the gym equipment.Jessica is an investment banker who works in New York City, and also owns her own clothing store.Her total income is $50,000 per month. Jessica pays $12,000 in expenses each month, and also$2,000 monthly for parking for her car. Jessica wants to buy a new apartment closer to the subway(without taking out a loan) which will cost her $720,000, since she always rides the subway. HelpJessica create a monthly budget that will help her save for her financial goal, and estimate how longit would take Jessica to buy her apartment.Jimmy is in his final year at college, which he likes for all the benefits it offers (like a large library,pool/gym, and fun activities). He wishes to buy a car as a graduation present, which will cost $6000.Jimmy makes his money from a restaurant, being a hairstylist, and cab driver. His total income is$4500 a month. His rent and food add up to $2700 a month, and he also spends $400 a month as agym member at the club across the street. Help Jimmy create a monthly budget that will help himsave for his financial goal, and estimate how long it would take Jimmy to buy his car.38 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Appendix – Credit: Sorting the Three C’sGood grades in Homeless Working at the same school firm for 15 yearsTenured teacher Owes money on Putting a home up credit cards as collateralTaken and paid back Criminal record for Owns expensivemany loans on time theft and fraud antiquesNever taken out a Fired from many Makes money on loan before short-term jobs investmentsGood grades in Homeless Working at the same school firm for 15 yearsTenured teacher Owes money on Putting a home up credit cards as collateralTaken and paid back Criminal record for Owns expensivemany loans on time theft and fraud antiquesNever taken out a Fired from many Makes money on loan before short-term jobs investmentsTeaching Investment and Money Management Initiative Curriculum | timm-i.org 39

Appendix – Credit: Loan Granting ScenariosNikki is looking to buy a nice house in your neighborhood. She has almost always paid back herprevious loans, and because of this she has a high credit score of 760. She has saved up enoughmoney to pay for the first 10% of her $200,000 house, so she is applying for a loan for $180,000.Nikki has various investments and assets, and she has a regular job that will help her not to defaulton her payments. Decide based on the three C’s whether or not Nikki should get the loan, andwhether it should be at a low or high interest rate.Joe wishes to buy a BMW coupe. He has very little money to pay for the car, and also owns very fewassets, so he needs a loan for most of the price. He has already taken a loan out to help pay for hismonthly rent payments on his house. Joe is very forgetful, so he often forgets to send in paymentfor his credit card bills. Joe got fired from his job 3 months ago, and has had no luck in finding anew job. Decide based on the three C’s whether or not Joe should get the loan, and whether itshould be at a low or high interest rate.Jack wants to borrow $7000 for his honeymoon trip to Hawaii with his new wife. Jack has loans onhis house and his car, and he has only missed a couple payments on his house. Jack is employed as abusboy at a diner and is very reliable in the workplace. Jack does not like to gamble on stocks, so heonly owns very stable companies like Apple and Amazon. His credit score is 620, which is decent.Decide based on the three C’s whether or not Jack should get the loan, and whether it should be at alow or high interest rate.Jill wants a new Ford Mustang, which costs about $25,000, and needs a loan. She has never takenout a loan before, so she currently has no credit score or credit history at all. She is employed as anarchitect in a New York City firm. Jill owns stock in large, fairly consistent tech companies, namelySony and Microsoft. Decide based on the three C’s whether or not Jill should get the loan, andwhether it should be at a low or high interest rate.Nick wants to buy a new house, and he is coming to you for a mortgage loan. He has never boughtanything on credit before, so he has no credit history for you to judge his reliability. He is currentlyemployed as a taxi driver, but has lost four of his previous jobs in the last four months, mostlybecause he tends to get in fights with his boss. He has no assets or known investments. Nick hasenough money to pay for 5% of his house up front, so his loan would total $255,000. Decide basedon the three C’s whether or not Nick should get the loan, and whether it should be at a low or highinterest rate.40 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

Appendix – Day Four: Student HandoutYou’re starting with $1000 in the bank, but you’re $400 in debt. There are four to sixrounds in this game; each round, you’ll decide what you want to do with your money.Each round, you can:  Pay off your debt  Invest (in a stock, fund, or bond)  Take your money (out of a bank account or stock/fund)  Keep your money where it is (in the bank or in a stock/fund)Let your teacher know what you want to do during each round. At the end ofthe round, your teacher will do the requested action and calculate how muchmoney you have.Your debt starts at $400, but increases to $425 after two rounds, $475 after threerounds, and $550 after four rounds. It must be paid off by the end of the game.If you invest your money in a bond, you’ll only be able to get it back after 3 rounds,with 25% interest.If you invest in a stock, you can get your money back during any round. Your interestwill depend on luck – you’ll roll a die at the end (when you want to take your moneyout) to see what interest you get. If you roll a 3, 4, 5, or 6, you’ll earn a 20% profit for every round you invested. If you roll a 1 or 2, you’ll lose 10% for every round you invested.If you invest in a (mutual/index) fund, you can get your money back during anyround. Your interest will depend on luck – you’ll roll a die at the end (when you wantto take your money out) to see what interest you get. If you don’t roll a 1, you’ll earn a 15% profit for every round you invested. If you roll a 1, you’ll lose 10% for every round you invested.Ask your teachers if there’s compound interest – but it can get pretty complicated!Teaching Investment and Money Management Initiative Curriculum | timm-i.org 41

The Teaching Investment and Money Management Initiative | Assessment AName: _____________________________________Instructions: This assessment is not graded. Please try your best to complete each question; you might not know some answers. Your teachers cannot help you with any questions.1) Think about a recent decision you made. Give and explain what the opportunity cost was.2) Name one main factor involved in getting credit and explain how you can improve it.3) How are risk and returns related?4) Do you currently (plan to) practice smart money management? If so, how and why?If you are taking this as a post-test, please write 1 thing you liked about TIMMI and1 thing you disliked about TIMMI on the back. Lastly, write 1 sentence as well abouthow you think TIMMI might be important for your life and future. Thank you!NP1 NP2 NP3 NP4 PRE POST CR: ID:42 Teaching Investment and Money Management Initiative Curriculum | timm-i.org

The Teaching Investment and Money Management Initiative | Assessment BName: _____________________________________Instructions: This assessment is not graded. Please try your best to complete each question; you might not know some answers. Your teachers cannot help you with any questions.1) Why is creating a budget important? What does it allow you to do?2) How do you benefit from having good (or great) credit?3) Explain the difference between blue-chip and penny stocks. Which do you prefer? Why?4) Do you currently (plan to) practice smart money management? If so, how and why?If you are taking this as a post-test, please write 1 thing you liked about TIMMI and1 thing you disliked about TIMMI on the back. Lastly, write 1 sentence as well abouthow you think TIMMI might be important for your life and future. Thank you!NP1 NP2 NP3 NP4 PRE POST CR: ID:Teaching Investment and Money Management Initiative Curriculum | timm-i.org 43