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

Financial Peace for the Next GenerationFinancial Peace for the Next Generation

Financial Peace for Financial Peace for YOUR Students!YOUR Students!

Jim KingJim KingCurriculum Department LeaderCurriculum Department Leader

Dave Ramsey’s Office Dave Ramsey’s Office The Lampo Group, Inc.The Lampo Group, Inc.


Welcome!Welcome!

Thank you!Thank you!


Goals for Today…Goals for Today…

Fired up to teach Financial LiteracyFired up to teach Financial Literacy

Benefits to…Benefits to…– IndividualIndividual– School (retention, default rates, graduation School (retention, default rates, graduation

rates, academic success) rates, academic success) – CommunityCommunity


Authored 3-NYT BestSellers: Financial Peace, More than Enough, and Total Money MakeoverNationally syndicated Radio Talk-Show Host in over 300 radio marketsFeatured on 60 Minutes, The Early Show, The 700 Club and Good Morning American, among othersHis school education curriculum – Financial Peace for the Next Generation


Curriculum DepartmentCurriculum Department

MissionMission

““Empowering students to make sound financial Empowering students to make sound financial decisions for LIFE.”decisions for LIFE.”


What does Financial Peace really mean?What does Financial Peace really mean?

““NEVERNEVER worry about money” worry about money”

“ “OWNINGOWNING a home” a home”

““EDUCATIONEDUCATION for my kids” for my kids”

“ “RETIREMENTRETIREMENT” ”

““AMERICAN DREAM”AMERICAN DREAM”


Candy Time!Candy Time!


Who Wants to be a Millionaire?Who Wants to be a Millionaire?Kit KatKit Kat

Statistically speaking, you represent a Statistically speaking, you represent a portion of society that adheres to the game portion of society that adheres to the game plan, avoids debt, invests early, and is plan, avoids debt, invests early, and is wise with their resources.wise with their resources.


Debt Free & Living Large!Debt Free & Living Large!SmartiesSmarties

You received a college scholarship, paid You received a college scholarship, paid cash for your car, your house is paid off, cash for your car, your house is paid off, and you have a fully-funded emergency and you have a fully-funded emergency fund.fund.

You started saving for retirement a little You started saving for retirement a little late, but other than that you’re looking late, but other than that you’re looking good.good.


Normal, Broke, Busted & Disgusted!Normal, Broke, Busted & Disgusted!Hard Candy/MintHard Candy/Mint

23 year old college graduate.23 year old college graduate.

Total debt is $30K ($16K car loan, $10K Total debt is $30K ($16K car loan, $10K student loan, $4K credit card).student loan, $4K credit card).

Annual income is $25K.Annual income is $25K.

It will take you 70 months or 6 years to It will take you 70 months or 6 years to pay-off your $30K debt.pay-off your $30K debt.


Bankrupt – Zero – Zilch – Nada!Bankrupt – Zero – Zilch – Nada!

Dum DumsDum Dums

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


Death by Visa!Death by Visa!M & M’sM & M’s

Same as the American Dream, however Same as the American Dream, however add another $100,000 in credit card debt.add another $100,000 in credit card debt.

Too much pressure, you lose hope and Too much pressure, you lose hope and commit suicide.commit suicide.

The #1 cause of male suicide is financial The #1 cause of male suicide is financial stress.stress.



The Problem…The Problem…


High school seniors scored an High school seniors scored an average of 52.4% on a basic average of 52.4% on a basic

financial survey. financial survey. (Jump$tart Coalition for Personal Financial (Jump$tart Coalition for Personal Financial

Literacy, 2006)Literacy, 2006)


TRU (Teenage Research Unlimited), the TRU (Teenage Research Unlimited), the nation’s foremost researcher specializing in nation’s foremost researcher specializing in the teen market, supplies information to the teen market, supplies information to Mastercard, Visa, Capital One, etc. Mastercard, Visa, Capital One, etc.

The research is used to target teens, to get a The research is used to target teens, to get a card in their hand and to create brand loyalty card in their hand and to create brand loyalty for their card.for their card.


Persons entering college are offered Persons entering college are offered an an average of 8 credit cardsaverage of 8 credit cards in their in their first week of school.first week of school.

- Jump$tart Coalition for Personal Financial Literacy, Annual Summary- Jump$tart Coalition for Personal Financial Literacy, Annual Summary


Number of Credit Card solicitations Number of Credit Card solicitations students receive per semester…students receive per semester…

25 to 5025 to 50*according to United College Marketing Services*according to United College Marketing Services


A major success of the credit card A major success of the credit card industry’s marketing campaign is in industry’s marketing campaign is in

persuading students that they can only persuading students that they can only build a good credit history with credit build a good credit history with credit

cards. This is cards. This is simply not truesimply not true. .

* Robert D. Manning, Author of * Robert D. Manning, Author of Credit Card NationCredit Card Nation


College-Branded Credit Cards include an College-Branded Credit Cards include an agreement between the credit card agreement between the credit card companies and colleges where the companies and colleges where the

college receives bonus payouts once college receives bonus payouts once balances reach certain levels.balances reach certain levels.

-NewsChannel 5, Nashville, TN – November, 2006-NewsChannel 5, Nashville, TN – November, 2006


The Outcome…The Outcome…


Reality ShowReality Show Budget & Save Budget & Save

According to VISA USA, 49% of college-age adults believe they are more likely to become millionaires by…


Percentage of college students with Percentage of college students with credit cardscredit cards

Over 80% of undergraduates have at least oneOver 80% of undergraduates have at least one Nearly 50% have Nearly 50% have 4 or more4 or more, and according to , and according to

the Department of Education, the average the Department of Education, the average balance carried by these students is more than balance carried by these students is more than $3,000. $3,000.

- Senator Chris Dodd, CT- Senator Chris Dodd, CT


A study by Robert D. Manning says:A study by Robert D. Manning says:• Three out of five students with credit cards Three out of five students with credit cards max max

them outthem out during their during their freshman yearfreshman year..• Three out of five freshmen with multiple cards Three out of five freshmen with multiple cards

used bankcards to pay for other revolving credit used bankcards to pay for other revolving credit accounts.accounts.

• Nearly three-fourths of students Nearly three-fourths of students use their use their student loans to pay for their credit cards.student loans to pay for their credit cards.


Half of all entering freshmen borrow, and Half of all entering freshmen borrow, and more than 20% of borrowers drop out!more than 20% of borrowers drop out!

Loans to Payback = NO DegreeLoans to Payback = NO Degree

-National Center for Public Policy and Higher Education-National Center for Public Policy and Higher Education


According to American College Testing (ACT)According to American College Testing (ACT)

1 in every 4 students leaves college before 1 in every 4 students leaves college before completing sophomore year!completing sophomore year!


Top Reasons Students Top Reasons Students

drop-out of college…drop-out of college… MoneyMoney Homesick/Home NeedsHomesick/Home Needs Poor Academic Performance due to Poor Academic Performance due to

Poor Prep or Poor Prep or InattentionInattention

*Study by University of Colorado @ Boulder*Study by University of Colorado @ Boulder


More students drop-out of college due to More students drop-out of college due to financial pressure than academic financial pressure than academic

pressure.pressure.

*according to United College Marketing Services AND several college *according to United College Marketing Services AND several college administrators!administrators!


The Consumer Federation of America relayed the story of a The Consumer Federation of America relayed the story of a University of Oklahoma freshman named Trish Johnson University of Oklahoma freshman named Trish Johnson who applied for three credit cards during her first who applied for three credit cards during her first semester – and charged up to her credit limit on all semester – and charged up to her credit limit on all three. After losing her part-time job in December, 1997, three. After losing her part-time job in December, 1997, she committed suicide in her dorm room with her she committed suicide in her dorm room with her checkbook and checkbook and $2,500 worth of bills$2,500 worth of bills spread out on her spread out on her bed.bed.

Although suicide is rare, Although suicide is rare, bankruptcy and dropping out of bankruptcy and dropping out of school to work off credit card debtschool to work off credit card debt are not. are not.


Average college student graduates with:Average college student graduates with:

$27,000$27,000 in student loan debt in student loan debt

$6,000$6,000 in credit card debt in credit card debt


19% of all bankruptcies are filed by college 19% of all bankruptcies are filed by college students (ages 18 – 24).students (ages 18 – 24).

Fastest growing group of bankruptcy filers Fastest growing group of bankruptcy filers are those who are 25 years of age or are those who are 25 years of age or younger. younger. – Senate Committee on Banking, Housing and Urban Affairs– Senate Committee on Banking, Housing and Urban Affairs


Since 1997 more people Since 1997 more people

have filed for bankruptcy have filed for bankruptcy

than graduated from college.than graduated from college.


The Solution…The Solution…


FINANCIAL PEACEFINANCIAL PEACE FORFOR

THE NEXT THE NEXT GENERATIONGENERATIONDesigned by educators for

educators!

Easy to implement!


4 Keys of Success4 Keys of Success

SimpleSimple

EducationalEducational

EntertainingEntertaining

Real ValueReal Value


Dave teaching via DVDDave teaching via DVD

Short segmentsShort segments

Chapters are stand-aloneChapters are stand-alone

Curriculum Highlights


Teacher’s Pack Includes:Teacher’s Pack Includes:

7 Disc Media Library:7 Disc Media Library:12 Lessons on 4 DVDs12 Lessons on 4 DVDsTeachers Guide on CD-RomTeachers Guide on CD-RomReality Bytes Audio CDReality Bytes Audio CDBonus DVDBonus DVD

1 year subscription to 1 year subscription to www.mytmmo.comwww.mytmmo.com


SPECIAL FEATURES OF TEACHER’S GUIDESPECIAL FEATURES OF TEACHER’S GUIDE(CD-ROM)(CD-ROM)

• Chapter Lesson Plans Chapter Lesson Plans • Chapter quizzes & keysChapter quizzes & keys• 4 Unit tests & 1 final with keys4 Unit tests & 1 final with keys• Object lessons & activitiesObject lessons & activities• Review Keys for Student WorkbookReview Keys for Student Workbook• Special Power Point Presentations for Each Special Power Point Presentations for Each

ChapterChapter


Student MaterialsStudent Materials

Soft Cover WorkbookSoft Cover Workbook

oror

.PDF Workbook.PDF Workbook



CHAPTER TITLES:CHAPTER TITLES:

UNIT 1UNIT 1Chapter 1Chapter 1 Super SaversSuper SaversChapter 2Chapter 2 Understanding InvestmentsUnderstanding InvestmentsChapter 3Chapter 3 Retirement and College PlanningRetirement and College Planning

UNIT 2UNIT 2Chapter 4Chapter 4 Cash Flow PlanningCash Flow PlanningChapter 5Chapter 5 Dumping DebtDumping DebtChapter 6Chapter 6 Relating With MoneyRelating With Money

UNIT 3UNIT 3Chapter 7Chapter 7 Buying Only Big, Big BargainsBuying Only Big, Big BargainsChapter 8Chapter 8 Buyer BewareBuyer BewareChapter 9Chapter 9 Understanding InsuranceUnderstanding Insurance

UNIT 4UNIT 4Chapter 10Chapter 10 Real Estate and MortgagesReal Estate and MortgagesChapter 11Chapter 11 Careers and Extra JobsCareers and Extra JobsChapter 12Chapter 12 Collection Practices and Credit BureausCollection Practices and Credit Bureaus


ImplementationImplementation

West KY Community and Technical CollegeWest KY Community and Technical College

KCTCS GE101KCTCS GE101

James Madison UniversityJames Madison University

Wallace State Community College (AL)Wallace State Community College (AL)

Missouri Western State UniversityMissouri Western State University


Benefits of Program…Benefits of Program…

Student becomes a wise-consumerStudent becomes a wise-consumer Student positively contributes to their communityStudent positively contributes to their community Increased academic success and graduation ratesIncreased academic success and graduation rates Increased Retention in CollegeIncreased Retention in College Lower student loan default rateLower student loan default rate Students fired-up and interested in materialStudents fired-up and interested in material Improved community and Improved community and nationnation


To Make A DifferenceTo Make A Difference

Contact:Contact:

The Curriculum DepartmentThe Curriculum Department

1-800-781-89141-800-781-8914

[email protected]@daveramsey.com

Documents

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