One of the most interesting sites I came across recently is the National Personal Finance Challenge.It sounds pretty cool..
Their site reads,
The National Personal Finance Challenge is an opportunity for students to demonstrate their knowledge of Personal Finance by competing with other students across the nation in a three-round competition. The two teams with the highest scores will then compete for the national title in a fast-paced "Quiz Bowl" round.
In the spring of 2013 we will crown a new National Personal Finance Championship team. Students will have a chance to win awards such as $1,000 per team member, $500 per team member, iPads and Kindles. All students will enjoy an exciting day of challenging competition, meet students from other states, and have the opportunity to win additional prizes and cash!
The National Personal Finance Challenge will be heldMay 2, 2013 in St. Louis, MO.
The National Personal Finance Challenge is the culminating event to state challenges across the country. Participating states use the Finance Challenge Online portal to offer the online round in their states. Top teams then compete at exciting on-site events to crown their state champion. This year, those state winners will go on to compete in Saint Louis to determine a National Champion.
Click on the logo below if you and your students are interested in finding out more about this competition.
I’d like to hear from you if you and your students have ever participated in this competition.Please give us a review of your experience.
Thanks for stopping by!
Senin, 15 April 2013
Celebrating Financial Literacy Month with a SALE!
In celebration of Financial Literacy Month, my big sale at Teachers Pay Teachers begins today.The following Personal Finance lessons will be 20% off between April 16th and 18th.These are all great lessons that my students love.I am sure your students will love them too.
The Wonderful Life Assignment – Setting Goals is FREE.
This fun, interactive project gives students a chance to get to know each other while creating a presentation that reveals their goals regarding career, wages, and lifestyle. It also sharpens their communication and presentation skills. As a culminating activity each student presents their project to the class. It is a great first lesson.
This is an outstanding lesson, not only for personal finance, but for any class where the objective is for students to introduce themselves to the class and talk about their goals and interests.
Pages: 19Price:FREE
Selecting and Financing a Car
This bundle of 4 lessons is a great way to teach students everything they need to know about purchasing a new or used car. It is loaded with hands-on lessons that teach students the ins and outs of selecting a vehicle, finding the best interest rates, and calculating car payments. By the time your students finish this lesson they will be well equipped with the necessary tools needed to make well informed decisions when it comes time to purchase their first vehicle.
Pages: 64Regular Price: 12.00 Sale Price: $9.60
Personal Finance Conversation Starters for Teens
This packet contains 160 printable Personal Finance Conversation Starters that are designed to get students talking about personal finance and money issues that we rarely discuss with them.The conversation starter cards are questions on a wide range of personal finance topics including spending, ambitions and goals, career choices, job loss, health care, bankruptcy and more. These cards can be used in small group or whole class discussions or for journal writing.
Pages: 31 and 160 CardsRegular Price: $4.50 Sale Price: $3.60
Investing Terms
This three part, hands-on lesson covers basic investing terms used on the New York Stock Exchange, and is designed to aid students in analyzing stock summaries, charts and graphs. It is packed full of reinforcing activities, like crosswords, on-line flashcards, games and quizzes.
Pages: 45 Regular Price:$5.00Sale Price$4.00
Intro to Investing in the Stock Market Presentation
This presentationis an easy-to-understand review of basic concepts and terms that are used every day in the financial world when discussing stock and the stock market.Students will learn everything from what a stock is, to how investors make a profit, to how the market is regulated plus much more.
Slides: 29 Regular Price:$4.50Sale Price: $3.60
Andrew Carnegie – an assignment to accompany the movie, Andrew Carnegie, Prince of Steel
The movie, Andrew Carnegie, Prince of Steel is one of the best rags to riches stories of them all.It details the life of Andrew Carnegie (1835-1919), a self-made steel tycoon, and one of the wealthiest businessmen of the 19th century.He was three times richer than Rockefeller. The Movie is available for free download on the Internet.
This brainstorm, review, reflect and create assignment was designed to accompany the movie, Andrew Carnegie – Prince of Steel. This engaging assignment is designed to get kids thinking at a higher level.
Pages: 13 Regular Price: $3.50Sale Price: $2.80
Rabu, 10 April 2013
More on... National Financial Literacy Month
As I browsed the Internet looking for resources and fun assignments forNational Financial Literacy Monthhere is a little of what I found.
Resource
The College Foundation of North Carolina offers several sets of financial facts sheets. They are well organized and easy to read.I like these.I think they could be incorporated into financial literacy lessons and activities.
At Go Banking Rates I found a fun financial literacy quiz,“Are you smart enough to be a billionaire?”It only takes a few minutes to complete and is challenging and fun. There may be lots to talk about after your students take this quiz.It gives you a good snapshot of what they really know when it comes to personal finance.
This 12 question quiz covers...
Credit Card Interest Rates Late Fees Credit Scores Mortgage Payments Mortgage Interest Rates Bankruptcy Saving for Retirement Roth IRA Credit Reports Credit Scores Compound Interest Bank Accounts Certificate of Deposit (CD)
A Bit of Billionaire History
If facts and history about billionaires interest you check out this pop quiz at Daily Finance– ”Show me the Billions”.It takes only a few minutes to complete, is fun, and shares a bit of billionaire history.
Thanks for stopping by. I Hope you found this information helpful.Look for fun, hands-on personal finance lessons and activities at my store at Teachers Pay Teachers.
Volatility in the stock market is pretty normal and nobody could really time it. So continuously plant into your investment portfolio. If you are looking for the perfect timing on when to get in or out, then you are indeed gambling. Time is our greatest ally not timing, because over long term, the number of shares you have accumulated is still much more powerful than the price per share.
The Importance of Investment Safety Nets
All the ups and downs of the market will also be corrected if your investment horizon is long-term. Your goal should be to accumulate as many shares as you can, as fast as you can while you can. This is the reason why you need to set up your “Investment Safety Nets” first because during a downtrend all of the three asset categories (paper, real and business) will be priced cheaply.
Part of our financial strategy for wealth preservation and transfer is to avoid selling any shares or any of the three asset categories during times like this.
Set Up Your 2 Investment Safety Nets
Before taking any further risk in building wealth, remember always to set up 2 Investment Safety Nets:
1. Long-Term Medical Savings
Building wealth has no shortcuts so it means that we really have to deal with the uncertainties of life and at the near-end of our life, all of us will need more medical attention whatever our lifestyle is today. In order for us to build a solid financial foundation, we need to make the right preparations because the most expensive part of our life is not sending our children to college, but sustaining our life during retirement amidst the continuously rising cost of medical expenses.
Before we allow our team members and investors to invest on mutual fund equities (90 percent stocks and 10 percent government bonds), we make sure he/she will not spend it all for his medical expenses when he/she gets old and sickly.
Why? A major medical crisis can wipe out everything that you have labored for in your lifetime if you don’t have a separate savings allocated for your long-term medical expenses. This is what happens to a lot of people who retire from their job very rich but die very poor because they consume everything that they accumulated in their entire life for their medical treatment.
Why Have Long-Term Medical Savings?
This is a part of our Financial Strategy to Wealth Preservation and Transfer. Let us not forget that the cost of medical expenses doubles every 5-7 years and considering major surgery today which will cost half a million pesos, then 30 years from now, it will already cost P4 million if it doubles every 10 years.
This long-term medical savings should be our first investment so as not to burden our children or relatives with the expenses in the future.
Again WHY Do We Need This?
During downturn of the market or correction, and worst, during recession, all asset classes (paper, real and business) will be priced negatively. In the last 20 years, the annual returns of stocks and equities has hit negative four times and two times, it hit 5 percent and lower. If your equity investment will only earn 2 percent to 5 percent per annum, then your money is not growing because our average inflation is 5 percent to 7 percent per annum. Just like what is happening with your money in the bank, it loses value year after year.
So, during these times, you can’t sell your shares of stocks and equities or any investment at a negative or losing value. What if you need the cash for a major medical treatment or surgery? Will you sell at a loss?
Financial planning means having a separate investment instrument that will cater to your medical needs so that you will not dip into you investment and only sell when the market is up or when it gives greater positive returns.
Don’t be a beggar to your own children. Be a responsible parent. Make sure to preserve your wealth for your future generations. Have sufficient long-term medical savings.
2. Income Replacement
Its sole purpose is to sustain the life of your family for at least 5-10 years without you providing for them. If you don’t want to follow the formula: Income Replacement (IR) = Annual Income x 10, then use this instead: Annual Expenses x (5-10). The bigger the better and you will have more peace of mind.
Remember that Income Replacement is not for you to enjoy. Income Replacement can be provided by a “Pure and Term Insurance” only which is much cheaper than any other bundled insurance available in the market.
If you are a corporate person, then right now you are covered with group insurance policy which you cannot take with you when you retire.
Your financial position will be much better if as early as today you can secure your family’s future and your assets.
The features and functions of a Pure and Term Insurance are:
1. Its cheaper because there is no savings portion. (Your savings will earn much more if you invest it correctly, say 12 percent to 60 percent per annum.) Quit one merienda for P30 to P50 a day and you can already protect yourself and your family with a P1 million coverage that will double if death is due to accident.
2. The major function of “Pure and Term Insurance” is Income Replacement if you die too soon without completing the wealth-building process. Your family should be able to sustain their life for the next five years even without you providing for them.
3. Why Term only? Because your insurance coverage must increase as you become wealthier, so as to protect all your assets.
4. Another function of insurance is that it can help your son and daughter pay off the needed estate tax within 90 days upon your death which is 20 percent of your total estate, to facilitate transfer of your estate to their names.
5. It’s Tax free so it’s good money for your family. Why die without value when you can die and GIVE millions of pesos for your family, loved ones or even to charitable institutions?
and lastly...
“Insurance is not about you getting or receiving. Insurance is all about you giving and loving.” Have sufficient “Pure and Term Insurance” to protect your life and all your accumulated assets.
In 2011 President Obama proclaimed the whole month of April as National Financial Literacy Month.
Here are his historic words:
NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States do hereby proclaim April 2011 as National Financial Literacy Month. I call upon all Americans to observe this month with programs and activities to improve their understanding of financial principles and practices.
Sadly, I feel like Santa Clause came, but didn’t leave any presents. Not that I think it is our President’s job to teach us personal finance. Not at all. I highly commend President Obama for so boldly promoting Financial Literacy. Maybe the winter has been too long in Michigan or maybe it is because the economy here is still quite sluggish – I’m not sure what accounts for my dismay.As I search the Internet for fun, interactive personal finance lessons they are few and far between.The President set the party date, but it seems like people just aren’t showing up to celebrate.Where are all of the programs and activities to improve our children’s financial literacy? Are you finding much about it in the news?I’m not.
My goal, before I started writing this afternoon, was to load this page with links to great financial literacy assignments.But I really couldn’t find any. What I found was the usual: learn how to budget, save your money, learn the difference between wants and needs - boring, boring, boring.
I am looking for a lesson where students learn what it is really like to be broke with big responsibilities.Not just kid broke, but broke and everyone is relying on you broke.I am looking for a lesson that when students finish it they tell me, “I really want to learn how to budget my money.” – then I have them hooked. I am looking for wonderfully creative lessons that put feeling first and money and math second.
I often ask myself, “Why do really smart people have money problems?”They can certainly do the math.Let me know what you think.What is the cause of our money problems?What about fun, interactive financial literacy lessons, any recommendations?
And...I just couldn’t leave on a sour note so take a look at this cool video, “Thank my Piggy Bank” by the Disclosures.
Christopher Morris and Chad Helminak are musicians based out of Madison, Wisconsin. They moonlight as the music duo "The Disclosures" and write songs and perform presentations about the importance of financial literacy and social responsibility. How cool is that?
Estate Planning 101: Managing Your Assets Today and Even After Death
I have been hounded lately with queries about what is estate planning (EP). After a closed door briefing with the expert in EP and my mentor, Atty. Angelo M. Cabrera, I’d like to share with you about this topic.
So What Is Estate Planning?
Estate Planning 101
Normally, regular individuals would see estate planning as the government itself (state). That’s not true at all. Allow me to expound on estate planning in this article.
Estate planning is planning your estate. (How detailed could I be, huh?!) Kidding aside, it is a process of managing your personal and financial assets to help you prepare and plan for the disposition of your properties in accordance with your wishes and in a manner that will give you and your family maximum benefit and satisfaction.
In layman’s term, Ang tama at nararapat na pag-aayos ng mga mana. Whenever this topic arises, most if not all of the Pinoys would react this way: “Wala naman akong ipamamana eh maliban sa kanilang edukasyon.” (I have nothing to give to my heirs except for their education.) “Bahala na silang mag-usap kung kanino mapupunta yan kapag wala na ako.” (It is up to my family to dispose what I have after my demise.) The first statement shows our inability to see and understand the reality of the issue. The latter may end up seeing your family in courtroom battles over your acquired properties.
What Is Included in My Estate?
“Eh wala naman akong ipamamana eh.” (I have nothing to give in the first place.) Not really. Every earning individual has an estate to manage and protect. To name a few:
1. Assets held in your name alone or jointly with others (including bank accounts, stocks and bonds, which includes your Citiseconline account);
2. Real estate/properties;
3. Furniture, appliances and clothing (that includes the baul your great, great, great grandmother gave you on your 25th birthday);
4. Cars;
5. Jewellery;
6. Retirement accounts;
7. Payment dues such as tax refund, outstanding loan or inheritance.
The government is not taking this lightly. With Project R.I.P. (Rest in Peace) by the Bureau of Internal Revenue (BIR) headed by Commissioner Kim Jacinto-Henares, they intend to intensify assessment and maximize collection of estate tax by increasing awareness of the public on its proper payment.
A recent memorandum came from Secretary Purisima of the Department of Finance mandating BIR to set a P50 billion Estate Tax Collection before President Aquino ends his term in three years.
In addition, this will allow the legal heirs to know that after the death of a loved one, to comply with the law, they have a responsibility to pay for estate taxes corresponding to the value of the decedent’s estate.
So How Does One Compute for Estate Taxes?
Let’s say you own an estate worth P100 million (Wow, Bro! That’s a lot of money). The corresponding estate tax will amount to 19 million. The shocking reality is, it is payable only in cash. (Now that is a big amount of money indeed!).
Apart from this, your heirs will need to settle the estate taxes within six months from the date of your passing. Beyond six months, the following charges will be added on to the computed estate tax:
• Twenty five percent as late filing surcharge up to 50 percent for deliberate non-filing or fraudulent return.
• Interest rate of 20 percent per annum for continued non-payment.
As you see, the longer you are unable to settle your estate taxes, you effectively diminish the size of the estate you have worked for.
So What Are Your Options?
Let me mention some ways on how to settle the estate tax.
1. Liquidate the property.
Given that we have to settle it within six months, we have to sell our properties such as real estate below the market value.
2. Borrow money at interest.
Borrowing large sums of money in such a short period of time will put the borrower in a difficult position, opening the possibility of paying higher rates.
3. Donate or sell property.
Accountants and lawyers would recommend either of the two, donate or sell.
a. Donating the properties before demise will subject us to another form of tax, the donor’s tax. It will bring down your tax to 15 percent.
b. Selling your estate will bring down the tax (also known as capital gains tax and the most widely used) to 6 percent. The effect of transferring properties during your lifetime is the loss of ownership, control and possible possession of the assets.
4. Create a new estate.
The best way to settle estate tax without giving up ownership and control is by creating a new estate that will produce the cash needed to settle the obligation at the precise time.
“What Can I Do While Still Alive so That I Can Plan Well for the Estate That I Will Leave Behind?”
First, you have to create a new estate to pay your dues to the government. To do so, you have to get a good insurance policy, which will salvage your hard-earned properties.
Next, write a last will and testament. You need a pen, paper and good lawyer to help you with this.I am just scratching the tip of the topic with this one. In fact, there are numerous topics that were not tackled like incorporation, co-ownership, income tax and other related issues, due to limited time and space. Again, being informed about this reality is in itself a key to financial freedom.
As the old saying goes, “There are only two things that we cannot escape in our lifetime: death and taxes.” Might as well, face death paying your dues the righteous way.
