EducationFirstFCU C.A.F.E. Secret Agent Training Module TeachersGuide

C.A.F.E. SECRET AGENT TRAINING MODULE Teacher’s guide A Youth Savings Program of

Welcome teachers! The objective of this workbook is to train upcoming C.A.F.E. recruits into smart money savers. This training module is their first step to becoming an agent. This teacher’s guide is your resource for in the classroom training and will help you step by step. We know that financial and economic knowledge leads to informed and rational decisions allowing for effective management of financial resources when planning for a lifetime of financial security. This workbook has been designed to help students understand these concepts. Let’s get started! Training Module Table of Contents Page 3- Spending Habits Activity Page 4- Mission: Crossword Puzzle Page 5- Savings Goal Activity Page 6- Spending Wisely Activity Page 7- Payment Types: Advantages and Disadvantages Page 8- Agent on Assignment: Jill’s Lawn Service Page 9- Agent on Assignment: Will Creates a Budget Page 10- Sharpen your Skills: Word Search Page 11- Oscar’s Path to Success Page 12- Top Secret Savings Plan Page 13- Top Secret Savings Goal Page 14- Glossary 2

Spending Habits Activity Activity Objective: This self-assessment for students will help them know how they are doing with their spending and saving habits. Directions: Students should choose to what degree the statements relate to them. Mark the number in the corresponding box and determine their total at the end. Use the “How Did You Do” key to determine how they are doing with their habits. Class Discussion: The following questions and prompts can be used to assist in classroom discussion.  How many students are regularly making an effort to save their money?  How many students currently have a savings account?  Who spends their money immediately when they receive it?  If you are unhappy with your score, what are some ways you can improve it?  Why is financial stability important in everyday life? 3

Mission: Crossword Puzzle Activity Objective: For students to gain a better understanding of the following words: income tax, payroll tax, sales tax, property tax, gross income, net income, income, expense, tax TEKS Objective: (10.A, 10.B) define income tax, payroll tax, sales tax and property tax; explain the difference between gross income and net income Directions: complete the cross-word puzzle Class Discussion: The following questions and prompts can be used to assist in classroom discussion.  How are Gross income and net income… o Similar? o Different?  What are taxes and how are they used in the community?  Why are there different types of taxes? Additional Resources: Have students refer to the glossary on page 14 Answer Key: Note: If the answer contains two words, there will be a blank space left in between the words Down 1G 1. Gross Income 3. Payroll Tax 2N E T R 4. Sales Tax 5. Tax I NCOME 3P 4S S A A Across L 2. Net Income S 6. Expense 5T 7. Income 8. Property Tax AI Y E 9. Income 6E X P E N S E R S C O T 7I N C O M E L M LA 8P R O P E R T Y TAX 9I N C O M E T TAX X 4

Savings Goal Activity Activity Objective: To help students understand the value of a savings goal. One of the best ways to save money is to avoid unnecessary spending by setting goals. Directions: Students will need to determine how much money will need to be saved each week to reach the savings goal. The following formula should be used: Savings Goal / Total Time = Savings Per Week Class Discussion: The following questions and prompts can be used to assist in classroom discussion.  What are some ways to earn money?  What are some important benefits to saving money?  What are some ways to help you reach your savings goal?  Discuss long-term goals and short-term goals; ask for examples of both  How can mapping one’s financial future lead to significant short and long-term benefits? Answer Key:  Go Kart: $10  Gaming Console: $20  New Shoes: $15  Computer: $40 5

Spending Wisely Activity Activity Objective: Help students understand the importance of making wise spending decisions and what choices must be made if income and expenses don’t add up. TEKS Objective: (10.D, 10.E) Develop a system for keeping and using financial records; describe actions that might be taken to balance a budget when expenses exceed income. Directions: Ethan and Selena have listed the typical monthly expenses from their spending logs in the following chart. Determine the total monthly expenses for each. Then determine the difference between their estimated monthly income and their total expenses. Class Discussion: The following questions and prompts can be used to assist in classroom discussion.  How are Ethan and Selena doing with their monthly expenses?  Who is making better financial decisions?  Will they be able to meet their savings goals along with paying their monthly expenses?  If they are not able to meet their savings goals for the month, what adjustments to their budget need to be made for them to meet their goal?  How do expenses and income affect a budget? Answer Key:  Ethan o Monthly Expenses: $335 o Difference: $169  Selena o Monthly Expenses: $168 o Difference: - $18 6

Payment Types: Advantages and Disadvantages Activity Objective: Help students understand the advantages and disadvantages that need to be considered when using each form of payment. TEKS Objective: (10.C) Identify the advantages and disadvantages of different methods of payment, including check, credit card, debit card, and electronic payments Directions: Use the charts to identify each payment method’s advantages and disadvantages. Each statement can apply to more than one payment method. Class Discussion: The following questions and prompts can be used to assist in classroom discussion.  Are there certain instances where certain types of payments would be better to use than others? Give examples of where and why.  How might payment advantages and disadvantages affect your spending decisions? Additional Resources: Have students refer to the glossary on page 14 Answer Key: Payment Advantages by Type of Payment Check Debit Cards Credit Cards EPleacytmroennict Check Debit Cards Credit Cards EPleacytmroennict Institutions can trace for proof of payment Option of one-time payment or payment spread out over time Convenience Accepted almost everywhere Can be used to set up recurring payments No postage or mailing of payment Quick form of payment Offers incentives and rewards Payment Disadvantages by Type of Payment Withdrawal time from account depends on person cashing the check Have to purchase checks Application required with annual fees ATM fees Bank information at risk with unsecured online sites Insufficient funds fees Temporary limits If lost or stolen, cost of replacement or go without 7

Agent on Assignment: Jill’s Lawn Service Activity Objective: To help students learn how to use a financial record to log income and expenses. TEKS Objective: (10.D, 10.F) Develop a system for keeping and using financial records; balance a simple budget Directions: Record the amounts of Jill’s income and expenses in the appropriate box in her budget tracker. Determine what her ending balance is after one week. Class Discussion:  What is Jill’s ending balance?  Is her business profitable?  What are the advantages Jill has in her business by maintaining accurate financial records?  How does expenses and income impact a budget? Answer Key: J Jill’s Lawn Service BUDGET TRACKER DATE DESCRIPTION INCOME EXPENSE BALANCE BEGINNING BALANCE: $20 June 1 fliers printed $8 $12 June 3 mowed Burt’s lawn $30 $42 June 5 bought ice cream $37 June 7 bought gas for mower $5 $25 $12 June 8 cut Mrs. Smith’s lawn $15 $40 ENDING BALANCE: $40 8

Agent on Assignment: Will Creates a Budget Activity Objective: Help students understand the importance of making wise spending decisions and what choices must be made if income and expenses don’t add up. TEKS Objective: (10.F) Balance a simple budget Directions: Will’s brother, Jordan, is currently exceeding his monthly income. Determine how to reduce his total monthly spending from $425 to less than $210. Class Discussion: The following questions and prompts can be used to assist in classroom discussion.  Was working with this budget difficult?  What are some suggestions to help Jordan reduce his spending?  Understanding your wants versus needs play a factor in spending money. o What expenses did Jordan have that could be considered a “want”? o What expenses did Jordan have that could be considered a “need”?  How can financial records aid in short-term and long-term financial decisions?  Why is it important to develop and maintain a balanced budget? 9

Sharpen your Skills: Word Search Activity Objective: To help students become familiar with the following vocabulary words. Balance a budget, Credit Card, Credit Union, Check, Deposit, Expense, Goal, Income, Money, Payment, Withdrawal Directions: Find all twelve words Additional Resources: Have students refer to the glossary on page 14 Answer Key: 10

Agent on Assignment: Oscars Path to Success Activity Objective: Budgets based on financial records help people plan and make choices about how to spend and save their money. In this activity students will pick the best path for Oscar based on choices he has made on each path. Students will track his transactions along the way. TEKS Objective: (10.D) develop a system for keeping and using financial records Directions: Work each colored path to determine which way Oscar should go to get to his goal. Use the boxes provided in each square to keep a cumulative total as he goes along. Class Discussion: The following questions and prompts can be used to assist in classroom discussion.  Which path was the correct path for Oscar to take?  What could Oscar have done differently on the green path?  An impulse purchase is a spur-of-the-moment decision to buy something you had not planned on purchasing. Could purchasing the ice cream be viewed as an impulse purchase? Answer Key:  Orange Path: $105  Green Path: $95 11

Top Secret Savings Plan Activity Objective: To help students learn how to set obtainable financial goals. To promote the thought process of how to obtain short-term and/or long-term goals. To take ownership in setting financial goals. Directions: Have students fill out their individual savings plans Class Discussion: The following questions and prompts can be used to assist in classroom discussion.  How much does each student plan on saving?  What are some ways they plan on reaching their individual goals?  How do you plan on tracking the money you are saving towards your goal? 12

Top Secret Savings Goal Activity Objective: To help students learn how to set obtainable financial goals. To promote the thought process of how to obtain short-term and/or long-term goals. To take ownership in setting financial goals. Directions: Use the space provided to draw a picture of what you’d like to save for. 13