Financial Literacy: Beyond The Basics - Teacher Script

Introduction & Warm-Up: What's Your Money Story? (10 minutes)

(Teacher displays the title slide: Smart Money Moves Slide Deck - Slide 1)

"Good morning, everyone! Today, we're diving into a topic that is absolutely essential for your lives after high school: financial literacy. Think of this as your guide to mastering money, not just for now, but for your entire future."

"Let's start with a quick thought: What comes to mind when you hear 'personal finance'? Or, what's one money goal you have for after high school? Maybe it's saving for college, buying a car, or just being able to afford your own apartment. Take a moment to think about it, and feel free to share if you'd like."

(Allow 2-3 students to share their thoughts. Acknowledge and validate their responses.)

"That's great! Many of you are already thinking about your financial futures, which is exactly what we want to encourage today. This isn't just about math; it's about making smart choices that give you freedom and security."

(Teacher displays Smart Money Moves Slide Deck - Slide 2: Today's Mission)

"By the end of this lesson, you'll be able to define key financial terms, create a basic budget, explore different ways to save, understand credit, and apply these skills to real-life situations. So, let's get started!"

Budgeting Basics: Where Does Your Money Go? (15 minutes)

(Teacher displays Smart Money Moves Slide Deck - Slide 3: Budgeting 101)

"First up: budgeting. This is the cornerstone of personal finance. A budget is simply a plan for your money – how you'll earn it and how you'll spend it. It helps you control your money instead of your money controlling you."

"Let's break down some key terms. Income is the money you earn, like from a job, gifts, or allowances. Expenses are the money you spend. We have two types: fixed expenses, which are regular and usually the same amount each month, like rent or a phone bill. Then there are variable expenses, which change month to month, like groceries, gas, or entertainment."

"Now, a crucial distinction: needs vs. wants. A need is something you absolutely must have to survive – food, shelter, basic transportation. A want is something you'd like to have but isn't essential, like a new gaming console or going out to eat every night."

"The golden rule of budgeting is simple: Spend less than you earn!"

"I'm going to hand out a Budgeting Basics Worksheet. We're going to work through a basic scenario. Imagine you have a monthly income of $1,500 from a part-time job. Your goal is to create a simple budget. Let's fill this out together, or you can work with a partner."

(Distribute Budgeting Basics Worksheet. Guide students through the exercise, offering help and examples.)

Saving Strategies: Grow Your Green! (10 minutes)

(Teacher displays Smart Money Moves Slide Deck - Slide 4: Saving Strategies)

"Now that we know where our money goes, let's talk about making it grow through saving. Why save? It's for your emergency fund, those unexpected costs like a car repair or medical bill. It's for short-term goals, like that new phone you want, and long-term goals, like college tuition or a down payment on a house."

"There are different types of savings, but the most important is often an emergency fund – aiming for 3-6 months of living expenses. It's your financial safety net."

"So, how do you actually save? My favorite tip is 'Pay Yourself First.' This means when you get paid, immediately put a portion into savings before you spend it on anything else. You can also set up automatic transfers from your checking to your savings account. Other tips include tracking your spending to see where you can cut back, and finding ways to reduce costs."

"What are some of your personal savings goals, big or small? How might you use one of these strategies?"

(Facilitate a brief discussion.)

Understanding Credit: Your Financial Reputation (15 minutes)

(Teacher displays Smart Money Moves Slide Deck - Slide 5: Understanding Credit)

"Next, we're tackling credit. This is a big one, especially as you approach adulthood. Credit is simply borrowing money with a promise to pay it back, usually with interest."

"Your credit score is a three-digit number that tells lenders how risky you are. A higher score means you're more likely to repay, and you'll get better interest rates on loans. Your credit report is a detailed history of all your borrowing and repayment. Lenders, landlords, and even some employers check this!"

"Good credit is super important because it affects whether you can get a loan for a car or house, rent an apartment, and sometimes even get a job or insurance. To build good credit, you need to pay your bills on time, keep your credit card balances low (this is called credit utilization), and responsibly manage different types of credit over time."

"However, there are pitfalls! High interest rates, getting into too much debt, and even identity theft can severely damage your credit. It takes a long time to build good credit, but it can be ruined very quickly."

"To explore this further, we're going to do a quick activity called Financial Futures Activity. You'll be given a scenario and asked to make some decisions related to credit. Work in small groups for this."

(Distribute Financial Futures Activity. Allow time for discussion and group work.)

Wrap-Up & Quiz: Checking Your Financial IQ (10 minutes)

(Teacher displays Smart Money Moves Slide Deck - Slide 6: Your Financial Future Starts Now!)

"Alright, let's bring it all together. Today, we've talked about:

• Budgeting: Your plan for your money, making sure you spend less than you earn.
• Saving: Building your financial security for emergencies and future goals.
• Credit: Your financial reputation, crucial for big life steps, and something to be managed wisely."

"Remember, the small, smart money moves you start making today will lead to big financial freedom tomorrow. You've got this, and you're now better equipped to handle your financial future!"

"To check your understanding, please complete this short Credit Smarts Quiz. This will help you and me see what you've learned and what might need a little more review."

(Distribute Credit Smarts Quiz. Collect quizzes upon completion.)

"Thank you, everyone! Keep practicing these skills, and don't hesitate to ask questions as you encounter financial decisions in your lives."

Budgeting Basics Worksheet

Name: ____________________________

Date: ____________________________

Scenario: Your First Independent Budget

Imagine you've just graduated high school and landed a part-time job that pays $1,500 per month (after taxes). You're living in an apartment with roommates and trying to manage your money responsibly. Let's create a basic budget!

Part 1: Income

1. Monthly Income (Net): $1,500.00

Part 2: Expenses (Estimate where needed)

Identify your estimated monthly expenses. Classify them as Fixed (F) or Variable (V) and as a Need (N) or Want (W).

Part 3: Calculate Your Budget

1. Total Estimated Monthly Income: $1,500

2. Total Estimated Monthly Expenses:
   (Add up all your estimated expenses from the table above, including your savings.)

   Calculation: $500 (Rent) + $75 (Utilities) + $250 (Groceries) + $100 (Transport) + $60 (Phone) + $40 (Internet) + $75 (Entertainment) + $50 (Clothes) + $100 (Savings) + $50 (Eating Out) + $20 (Subscriptions) = $1370

   Answer: $1,370

3. Income Minus Expenses:
   (Subtract your total expenses from your total income. Is it positive or negative?)

   Calculation: $1,500 - $1,370 = $130

   Answer: $130 (Positive)

Part 4: Reflection

1. Was it easy or difficult to stay within your $1,500 income? Why or why not?
   
   
   
   
   
   
   
   *(Expected response: Students should reflect on the challenge of balancing needs and wants, and how setting a budget helps them see where their money is actually going. Some might find it easy if they are naturally frugal, others might find it challenging to cut down on

Financial Futures Activity: Credit Crossroads

Name: ____________________________

Date: ____________________________

Instructions:

Work in small groups to discuss the following scenarios. For each scenario, discuss the potential impacts on the individual's credit, their financial future, and what advice you would give them.

Scenario 1: The First Credit Card

Sarah, an 18-year-old high school graduate, just got her first credit card with a $500 limit. She's excited to have it for emergencies and building credit. However, she also sees a great online sale for clothes and spends $450 on her card, planning to pay it off when she gets her next paycheck in two weeks.

Discussion Questions:

1. What are the immediate pros and cons of Sarah using her credit card this way?
   
   
   
   
   
   
   
   (Pros: Could start building credit if paid on time. Cons: High credit utilization ($450/$500 = 90%) can negatively impact her score, especially if she doesn't pay it all off. Also, relying on her next paycheck might be risky if unforeseen expenses come up.)

2. What specific advice would you give Sarah about managing her first credit card responsibly?
   
   
   
   
   
   
   
   (Advice: Only charge what you can immediately pay off. Keep utilization low, ideally under 30%. Pay the full balance every month to avoid interest. Understand the billing cycle and due dates.)

Scenario 2: The Student Loan Dilemma

Mark is in his first year of college and took out a student loan to cover tuition and living expenses. He's also working a part-time job and using some of his earnings for entertainment and eating out frequently. He's not really thinking about his loan payments yet, as they don't start until after he graduates.

Discussion Questions:

1. How might Mark's current spending habits impact his future financial health, even before loan payments begin?
   
   
   
   
   
   
   
   (Impact: He's not building a habit of saving, which could make loan repayment difficult later. His current spending could lead to increased debt if he's not careful, or prevent him from building an emergency fund. He might feel the burden of debt more heavily once repayment starts if he's not prepared.)

2. What advice would you offer Mark about managing his money and student loans during college?
   
   
   
   
   
   
   
   (Advice: Create a budget to manage his income and expenses. Prioritize needs over wants. Consider making small, interest-only payments on his loans while in school if possible to reduce the total amount owed. Start an emergency fund now. Understand the terms of his student loan.)

Scenario 3: Unexpected Expenses

Maria has been diligently saving for a down payment on a car after graduation. She has $2,000 saved, and her goal is $5,000. Suddenly, her old laptop breaks, and she needs a new one for school, costing $800. She doesn't have a separate emergency fund.

Discussion Questions:

1. What financial challenge does Maria face, and how could an emergency fund have helped her?
   
   
   
   
   
   
   
   (Challenge: Maria has to dip into her car down payment savings for an unexpected expense, delaying her goal. An emergency fund would have provided a separate pool of money for such events, keeping her car savings on track.)

2. What financial choices could Maria make now, and what advice would you give her for future financial planning?
   
   
   
   
   
   
   
   (Choices: She could buy a cheaper laptop, find a temporary solution, or prioritize getting a new laptop over car savings for now. Advice: Start building a dedicated emergency fund immediately, even if it's small, separate from other savings goals. Re-evaluate her budget to find ways to rebuild both funds.)