FA$T
(Financial Awarenes$ and Tracking)
Topic: Personal Finances
Program Description: Of all the
topics taught in higher education, Managing Personal Finance is rarely a required course,
and most of the time it’s not even offered. Most people learn to manage their
finances by parental education, but that often causes individuals to inherit any of their
parent’s bad habits. The truth is most people learn by trial and error,
and many people do not know how to manage finances properly and effectively.
Most students have not been exposed to many of the categories in this arena. An S-PAVe
relating to personal finance is intended to inform students of proper financial
management. In addition, the SPAVe gives participants, as well as planners, a
hands-on opportunity to practice correct planning techniques.
Approach: Topics relating to Managing
Personal Finances are listed below.
- Investing
- Investing Concepts
- Investment Vehicles
- Choosing Mutual Funds
- Choosing Stocks
- Saving
- Tracking and Reducing Spending
- Budgeting
- Reducing Debt
- Taxes
- Doing Your Own Taxes
- Using Tax Software and Electronic Filing
- Deductions
- Retirement Planning
- Employee Offered Plans
- IRAs and 401k Plans
Examples S-PAVes of these types include:
The Stock Market Game (Investing)
A group of 10 students are each given $100,000 of fictitious money. Over three
months, they can buy and sell stocks and mutual funds whenever they want. All they
have to do is send an email to a GameMaster. Each player keeps track of their
current portfolio value, but the GameMaster makes sure no one cheats. The
stock’s closing value is used for the stock’s price. At the end, the
winners are announced and given prizes. Before the game the students attend a short
seminar on investing.
Result: A structured game that can be
played year after year. Really ambitious students may incorporate software or a
web-based tool to keep track of portfolios.
Role Playing – Sid
Spend-Alot meets Betty Budget (Spending)
Students act in front a live audience. Sid Spend-Alot just got a new job. He
bought a new stereo, opened 10 credit cards and eats out every day for lunch, dinner, and
sometimes breakfast. One day, he meets a beautiful woman while renting a car, Betty
Budget. Betty shows Sid ways to reduce spending, and plan a budget. Sid saves
so much money that year that he asks Betty to join him on a vacation. Soon after,
they plan their next biggest expense – a wedding!
Result: A video that can be shown to
students for years to come. Be sure to put in a disclaimer.
Tax Time Work
Shop (Taxes)
An Certified CPA Account conducts a one day work shop for students to do their own
taxes. Each Student is given fictitious pay stubs and a fictional situation.
Some may own a home. Some may have investments. Some may be married and have
children. The accountant will point out what to do in various situations. At
the conclusion of the day, each student will have filled out the necessary forms for their
situation.
Result: A set of personal situations
that can be used for future workshops.
Your First House
– The Movie! (Real
Estate)
For all you Marlon Brando’s and Marlyn Monroe’s, here’s your chance!
Create a video of a family selling their old house and buying a new one. For example, this
video takes our friends, the Faraday’s, through the entire process. First they
meet with the Real Estate agents to list and show their current home. Then they go
house shopping where they find the house of their dreams. After meeting with a
mortgage rep, everything seems to be going smoothly. However, at the closing,
problems arise and the Faraday’s are in danger of losing their newfound dream
house. Luckily, their Real Estate Attorney has the knowledge to make the deal go
through.
Result: A light evening at a very off
– Broadway production.
Retirement
Web-Based Tool (Retirement
Planning)
Students create a web-based utility to calculate what-if scenarios for retirement
planning. For example, if I save $100 a month from age 22-30 and then stop and let
it sit, how much will I have at age 65? How about if I start saving $100 per month
at age 35 until age 65? Will I retire with more money? The answers could be
surprising.
Result: A useful web-based utility for all
people, and a tool to make students aware of the importance of retirement planning at a
young age.
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