Financial Peace for the Next Generation Financial Peace

Financial Peace for the Next Generation Financial Peace for YOUR Students! Jim King Curriculum Department Leader Dave Ramsey’s Office The Lampo Group, Inc.

Financial Peace for the Next Generation Welcome! Thank you!

Financial Peace for the Next Generation Goals for Today… Fired up to teach Financial Literacy Benefits to… – Individual – School (retention, default rates, graduation rates, academic success) – Community

Financial Peace for the Next Generation Authored 3 -NYT Best. Sellers: Financial Peace, More than Enough, and Total Money Makeover Nationally syndicated Radio Talk-Show Host in over 300 radio markets Featured on 60 Minutes, The Early Show, The 700 Club and Good Morning American, among others His school education curriculum – Financial Peace for the Next Generation

Financial Peace for the Next Generation Curriculum Department Mission “Empowering students to make sound financial decisions for LIFE. ”

Financial Peace for the Next Generation What does Financial Peace really mean? “NEVER worry about money” “OWNING a home” “EDUCATION for my kids” “RETIREMENT” “AMERICAN DREAM”

Financial Peace for the Next Generation Candy Time!

Financial Peace for the Next Generation Who Wants to be a Millionaire? Kit Kat Statistically speaking, you represent a portion of society that adheres to the game plan, avoids debt, invests early, and is wise with their resources.

Financial Peace for the Next Generation Debt Free & Living Large! Smarties You received a college scholarship, paid cash for your car, your house is paid off, and you have a fully-funded emergency fund. You started saving for retirement a little late, but other than that you’re looking good.

Financial Peace for the Next Generation Normal, Broke, Busted & Disgusted! Hard Candy/Mint 23 year old college graduate. Total debt is $30 K ($16 K car loan, $10 K student loan, $4 K credit card). Annual income is $25 K. It will take you 70 months or 6 years to pay -off your $30 K debt.

Financial Peace for the Next Generation Bankrupt – Zero – Zilch – Nada! Dums The American Dream. Married, 26 years old, 2 kids, and a dog. You and your spouse bring debt to the marriage totaling $60 K. $32 K car loan, $20 K school loan, $8 k credit card. Annual income is $50 K. It will take you 193 months (or 16 years) to pay off your $60 K debt. You are now 42, no money in the bank, and kids need to go to college. 90% of divorces stem from financial disagreements.

Financial Peace for the Next Generation Death by Visa! M & M’s Same as the American Dream, however add another $100, 000 in credit card debt. Too much pressure, you lose hope and commit suicide. The #1 cause of male suicide is financial stress.

Financial Peace for the Next Generation

Financial Peace for the Next Generation The Problem…

Financial Peace for the Next Generation High school seniors scored an average of 52. 4% on a basic financial survey. (Jump$tart Coalition for Personal Financial Literacy, 2006)

Financial Peace for the Next Generation TRU (Teenage Research Unlimited), the nation’s foremost researcher specializing in the teen market, supplies information to Mastercard, Visa, Capital One, etc. The research is used to target teens, to get a card in their hand to create brand loyalty for their card.

Financial Peace for the Next Generation Persons entering college are offered an average of 8 credit cards in their first week of school. - Jump$tart Coalition for Personal Financial Literacy, Annual Summary

Financial Peace for the Next Generation Number of Credit Card solicitations students receive per semester… 25 to 50 *according to United College Marketing Services

Financial Peace for the Next Generation A major success of the credit card industry’s marketing campaign is in persuading students that they can only build a good credit history with credit cards. This is simply not true. * Robert D. Manning, Author of Credit Card Nation

Financial Peace for the Next Generation College-Branded Credit Cards include an agreement between the credit card companies and colleges where the college receives bonus payouts once balances reach certain levels. -News. Channel 5, Nashville, TN – November, 2006

Financial Peace for the Next Generation The Outcome…

Financial Peace for the Next Generation According to VISA USA, 49% of college-age adults believe they are more likely to become millionaires by… Reality Show Budget & Save

Financial Peace for the Next Generation Percentage of college students with credit cards Ø Over 80% of undergraduates have at least one Ø Nearly 50% have 4 or more, and according to the Department of Education, the average balance carried by these students is more than $3, 000. - Senator Chris Dodd, CT

Financial Peace for the Next Generation A study by Robert D. Manning says: • Three out of five students with credit cards max them out during their freshman year. • Three out of five freshmen with multiple cards used bankcards to pay for other revolving credit accounts. • Nearly three-fourths of students use their student loans to pay for their credit cards.

Financial Peace for the Next Generation Half of all entering freshmen borrow, and more than 20% of borrowers drop out! Loans to Payback = NO Degree -National Center for Public Policy and Higher Education

Financial Peace for the Next Generation According to American College Testing (ACT) 1 in every 4 students leaves college before completing sophomore year!

Financial Peace for the Next Generation Top Reasons Students drop-out of college… Ø Money Ø Homesick/Home Needs Ø Poor Academic Performance due to Poor Prep or Inattention *Study by University of Colorado @ Boulder

Financial Peace for the Next Generation More students drop-out of college due to financial pressure than academic pressure. *according to United College Marketing Services AND several college administrators!

Financial Peace for the Next Generation The Consumer Federation of America relayed the story of a University of Oklahoma freshman named Trish Johnson who applied for three credit cards during her first semester – and charged up to her credit limit on all three. After losing her part-time job in December, 1997, she committed suicide in her dorm room with her checkbook and $2, 500 worth of bills spread out on her bed. Although suicide is rare, bankruptcy and dropping out of school to work off credit card debt are not.

Financial Peace for the Next Generation Average college student graduates with: Ø$27, 000 in student loan debt Ø$6, 000 in credit card debt

Financial Peace for the Next Generation Ø 19% of all bankruptcies are filed by college students (ages 18 – 24). Ø Fastest growing group of bankruptcy filers are those who are 25 years of age or younger. – Senate Committee on Banking, Housing and Urban Affairs

Financial Peace for the Next Generation Since 1997 more people have filed for bankruptcy than graduated from college.

Financial Peace for the Next Generation The Solution…

Financial Peace for the Next Generation FINANCIAL PEACE FOR THE NEXT GENERATION Designed by educators for educators! Easy to implement!

Financial Peace for the Next Generation 4 Keys of Success Simple Educational Entertaining Real Value

Financial Peace for the Next Generation Curriculum Highlights Dave teaching via DVD Short segments Chapters are stand-alone

Financial Peace for the Next Generation Teacher’s Pack Includes: 7 Disc Media Library: 12 Lessons on 4 DVDs Teachers Guide on CD-Rom Reality Bytes Audio CD Bonus DVD 1 year subscription to www. mytmmo. com

Financial Peace for the Next Generation SPECIAL FEATURES OF TEACHER’S GUIDE (CD-ROM) • • • Chapter Lesson Plans Chapter quizzes & keys 4 Unit tests & 1 final with keys Object lessons & activities Review Keys for Student Workbook Special Power Point Presentations for Each Chapter

Financial Peace for the Next Generation Student Materials Soft Cover Workbook or. PDF Workbook

Financial Peace for the Next Generation

Financial Peace for the Next Generation CHAPTER TITLES: UNIT 1 Chapter 2 Chapter 3 Super Savers Understanding Investments Retirement and College Planning UNIT 2 Chapter 4 Chapter 5 Chapter 6 Cash Flow Planning Dumping Debt Relating With Money UNIT 3 Chapter 7 Chapter 8 Chapter 9 Buying Only Big, Big Bargains Buyer Beware Understanding Insurance UNIT 4 Chapter 10 Chapter 11 Chapter 12 Real Estate and Mortgages Careers and Extra Jobs Collection Practices and Credit Bureaus

Financial Peace for the Next Generation Implementation West KY Community and Technical College KCTCS GE 101 James Madison University Wallace State Community College (AL) Missouri Western State University

Financial Peace for the Next Generation Benefits of Program… ü Student becomes a wise-consumer ü Student positively contributes to their community ü Increased academic success and graduation rates ü Increased Retention in College ü Lower student loan default rate ü Students fired-up and interested in material ü Improved community and nation

Financial Peace for the Next Generation To Make A Difference Contact: The Curriculum Department 1 -800 -781 -8914 youth@daveramsey. com