Financial Literacy Terminology; Learning the Language of Money

Workshop Instruction: Facilitator Activities Instruction, Quizzes, Case Studies, and Role Playing
Facilitators will need to have internet connection and computer, a projector for computer images, financial magazines (Money, Forbes, Kiplinger) and financial sections from newspapers (local and national), a printer for printing out computer images for handouts, and a blackboard/ whiteboard for writing brief notes. Scrap paper and a few pencils will be handy. Facilitator should review the list of materials provided and be sure copies have been made of handouts, in sufficient amounts for each participant to have a copy. Room should be private, quiet, well lit, and tables/ chairs arranged for easy viewing of screen/ board at the front of the room, and not too crowded.

Monday, Session One: 5:30 to 8:30 pm ~ 3 hoursInstruction Outline:

30 min: Work with learners to create a list of terms that will be used during the workshop, interactively searching the internet, and using print materials provided, guiding the list to fit the instructional materials for all three sessions (see materials list provided): Retirement; IRA, Traditional and Roth College Savings; Prepaid Plans, Savings Plans, 529s Personal Finance, Credit Reports, Credit Scores Residential Mortgages Life Insurance; Term Life, Whole Life (Permanent or Perm) Copy and handout the list. 1 hour: Explore website resources to define and use terms on the list, focusing on retirement plans, with learner participation: Assessment Exercises:
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1. Given a list of financial terms, the learner will be able to identify at least 80% of the terms that relate to retirement plans. After a brief introduction to retirement plans, a simple list of ten terms, some used during the introduction, with choices of yes or no, will be handed out to the workshop participants, asking whether the term applies to retirement plans or not. This will be a pencil and paper assessment, and begins the workshop with a goal of assessing the different levels of understanding within the group. After the papers are collected, the material will be discussed again, using personal experiences of the learners to explore how these terms are used in real life situations. If a learner falls below the 80% accuracy level on the first attempt, he will be given an opportunity to make a second attempt with a different list of terms, in an effort to re-assess how well the learner applies information presented with a discussion format (declarative knowledge learning). 2. After reviewing the pdf on Traditional IRAs; Answers to Your Questions learners will be able to correctly list at least three exceptions to the 10% penalty tax on early withdrawals from a Traditional IRA. Building upon the information gained from the first assessment, this assessment will also be conducted with pencil and paper, after a discussion of materials presented in the handout document. Again, after papers are collected, a second discussion will focus on examples of this information in real life situations (concept learning) to gauge levels of understanding. 3. Given the definitions provided by Investopedia.com (www.investopedia.com/ask/answers/05/traditionalira.asp) the learner will be able to correctly list at least one difference between a Traditional IRA and a Roth IRA. In this assessment exercise, a case study will used to create a problem solving learning situation and an open discussion format will be used. Level of participation by the learners will provide an assessment of various levels of learning, using verbal responses to inquiry. 15 min Break 1 hour: Explore website resources to define and use terms on the list, focusing on college savings plans, with learner participation: 1. Given a list of college planning terms, the learner will be able to verbally explain what at least two of the terms mean, in accordance with the definitions supplied with the list.
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At this point in the workshop, pencil and paper assessments have given way to discussion assessments, creating interest and motivation to participants, while providing the instructor with opportunities to verbally expand upon and correct erroneous thinking or misunderstanding of information. This assessment will return to the declarative knowledge learning exercises used in the list of retirement terms, but will allow discussion and verbal response to assess learning. 2. After reviewing the website http://www.sec.gov/investor/pubs/intro529.htm the learner will be able to list the two types of 529 plans. Using a projector, the website will be presented on a screen for the class to review together. After discussion, each participant will be asked to write a paragraph about which plan they would choose and why, as well as why they would not choose the other type of 529 plan. In this way, the learner will be assessed on cognitive learning strategies. 3. After studying the website http://www.savingforcollege.com/intro_to_529s/what-is-a529-plan.php, the learner will be able to determine if the state of Alabama offers a 529 plan or not, and if so, to provide the correct name of the plan. Again using a projector, the website will be presented on a screen for the class to review and discuss. All 50 states will be written on a slip of paper, and placed in a box from which learners will draw their assigned state. Learners will be responsible for answering the question of whether their state has a 529 plan or not, and if so, to provide the correct name of that states plan. Additional discussion will include naming the type of 529 plan, the sponsor of the plan, and other features of that particular states program. If a state does not have a plan, alternative college saving opportunities will be discussed. This assessment will provide information to the instructor on how well the participants are learning the concept of one form of college planning. 15 min Wrap Up: Briefly review all terms, provide opportunity for questions, and give overview of next session (which will basically be Using the Information studied tonight). Say Goodnight!

Wednesday, Session Two: 5:30 to 8:30 pm ~ 3 hoursInstruction Outline:

30 min: Review information from the last session, on retirement plans and college savings plans, allowing learners to ask questions to clarify any information.
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Short Quiz: 1 hour: Facilitator will project the hypothetical written retirement plan on the screen, and discuss each section briefly as learners prepare their own written plan on paper. If time permits, allow one or two participants to read their plans to the class. Learners will keep these plans in their own binder. 15 min Break 1 hour: Facilitator will project the hypothetical written college savings plan on the screen, and discuss each section briefly as learners prepare their own written plan on paper. If time permits, allow one or two participants to read their plans to the class. Learners will keep these plans in their own binder. 15 min Wrap Up: Review terms used in tonights session on retirement plans and college savings plans, and give overview of next session (which will be Credit, Mortgages, and Life Insurance). Say Goodnight!

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Friday, Session Three: 5:30 to 8:30 pm ~ 3 hoursInstruction Outline:

30 min: Review information from the first session, on credit reports and scores, residential mortgages, and life insurance, allowing learners to ask questions to clarify any information. Short Quiz: 40 min: Explore website resources to discuss how to obtain a credit report, how to determine credit scores, how to protect against fraud, validity of credit repair claims, and ways to improve credit scores. 20 min: Using the handout booklet from Freddie Mac on residential mortgage process (http://www.freddiemac.com/homeownership/pdf/step-by-step_mortgage_guide.pdf) briefly review the steps as provided in the booklet. A role-playing exercise will follow: Assessment Exercise: After reviewing the glossary of terms in the printout of Borrowers Guide to Home Loans and the handouts from Freddie Mac and the three credit bureaus, the learner will be able to verbally explain the two terms credit reports and credit scores. Using the handouts provided, learners will break into groups of two or three where each group will create a hypothetical credit report to present to the class. The class will discuss each situation presented, assign a hypothetical credit score, and discuss whether a mortgage loan would be approved or not based upon each scenario. This assessment method will allow the instructor to gauge how well the learners are using critical thinking skills, and will provide an opportunity to correct erroneous thinking or misunderstandings regarding credit reports and credit scores. If time permits, the website http://www.thehomeownerscafe.com/can be reviewed. 15 min Break 15 min: Project the website and review 10 Things You Should Know about Purchasing Home Insurance from www.insureuonline.org/consumer_homeowners_ten_tips.htm and then do a short verbal quiz: Assessment Exercise:

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Call on several to give their version of the definitions: learners will correctly explain the difference between replacement cost and actual cash value regarding home insurance with 100% accuracy. 30 min: From the website www.lifehappens.org/life-insurance/ (the tab Insurance 101 comes up) review the questions listed, starting with: What are the different types? Click on both Term and Perm to get definitions/ explanations of the two types, briefly discussing advantages and features. Assessment Exercise: After reviewing the Introductory page on the website http://www.lifehappens.org/lifeinsurance/ learners will be able to correctly define two types of life insurance, and discuss reasons for using both types in different family situations. Using a projector to present the webpage on a screen for class discussion, learners will be asked to verbally provide reasons for taking out insurance on different family members lives. The instructor will lead the questioning, introducing factual material into the discussion of problem-solving, procedure, and principle, as well as introducing attitude learning, incorporating a discussion of typical insurance sales practices. The instructor will assess how well each learner has grasped the material based upon participation, and presentation of correct information, by learners during discussion. If time permits: Briefly visit the Scholarship Program information (Life Programs/ Life Lessons/ Introduction). 30 min Wrap Up: Since this is the last session, a longer wrap up will allow time for a review of all terms discussed in all three sessions, the written plans for retirement and college planning, and any follow-up questions learners may have. Also, a Summative Evaluation of the course will be asked of the learners, with a written response to the question How will you use this information? which will be submitted to the facilitator as the participants leave. Say Goodnight!

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