Personal finance course

[jIM_Ohio]

I have a meeting next week about teaching a personal finance course at a local vocational school.

Please list your ideas for topics to cover.


Here is my list (for starters):

1) Income- sources like W-2 vs 1099 and the pros and cons of each
2) Budgeting
3) debt management
4) financing things vs paying cash
5) investing (buy something which goes up in value)
6) knowing risks
7) investing in the stock market and bond market
8) retirement and financial independance
9) Income taxes (personal income taxes)
10) the impact of investing on taxes (IRAs and similar)
11) small business (s corps, LLC and similar and how they impact all of the above)

In addition, please list any PROBLEMS which are common and people need to solve

Like
a) pay down mortgage or invest
b) which debt to pay off first
c) how much money will I have after X amount of time
d) How do I open an account

Thx for any and all input

[broncofanfromia]

I took a couple finance courses in my first year at school.. biggest thing that helped me was the fact the teacher pointed out that winning financially can be most challenging psychologically and also to take a look at the big picture more often when making large purchases...such as you don't mind paying $200 a month for 7 years but you won't take the $14k out of your savings to pay the car in full to avoid finance charges.

But if I had the opportunity to enroll in that class, that list of topics looks solid and you could count me in.

[frugalgirl]

I don't know how advanced your students are but most people need a lesson on:

1. getting an early start on saving for retirement - the concept of compounding interest
2. how to balance a checkbook and do a budget
3. how to choose a mortgage - 15 yr vs. 30 yr. for example
4. thinking about college costs/savings

3 and 4 are the biggest expenses most people will incur. Understanding #1 will allow for adequate retirement savings, and #2 is the most basic financial knowledge a person needs.

Good luck. I know you have been very helpful in answering many of my questions!

[cptacek]

That sounds exciting, jIM. Keep us posted on how things go. I think your list looks good, depending on the audience skill level.

[jIM_Ohio]

Here is what I have thus far


Subjects to cover

1) Income- sources like W-2 vs 1099 and the pros and cons of each
2) Budgeting
3) Emergency fund
4) debt management
5) financing things vs paying cash
6) investing (buy something which goes up in value)
7) knowing risks
8) investing in the stock market and bond market
9) Compound Interest
10) Asset allocation while investing
11) retirement and financial independence
12) Income taxes (personal income taxes)
13) the impact of investing on taxes (IRAs and similar)
14) small business (s corps, LLC and similar and how they impact all of the above)
15) Calculating interest rates and rates of return
16) Financial fraud and contracts (like cell phones and other services with a contract)
17) Banks vs credit unions vs other financial institutions (like brokerages)
18) Flexible spending accounts and Health Savings Accounts
19) Car Insurance (Liability vs deductable vs collision)
20) Credit Scores
21) Life insurance
22) Inflation
23) Net worth
24) Social Security, 1099, cash based business


Problems to solve at various points in the course:
1) pay down mortgage or invest
2) which debt to pay off first
3) how much money will I have after X amount of time
4) How do I open an account
5) How much will a payday loan cost, and what is the interest rate being charged?
6) How much does a tax refund loan cost?
7) Setting financial goals
8) Buying a car and negotiating prices
9) How to open a 401k
10) How to open an IRA
11) How to roll an old 401k into an IRA
12) Roth Conversions

Online materials for course
FDIC: Money Smart - A Financial Education Program
Covers
1) Banks
2) Borrowing
3) Check it out (Checking accounts)
4) Money Matters (tracking money)
5) Pay yourself first (how to save)
6) Keep it safe (consumer rights)
7) To your credit (credit history)
8) Charge it right (make credit card work for you)
9) Loan to own (how to borrow)
10) Your own home (home ownership)
Planning & Research - T. Rowe Price
Covers
1) Investing 101 (how investing works)
2) Asset Allocation
3) Retirement Planning
4) College Planning
5) Tax Planning
6) Estate Planning
7) Publications and Videos (opinions on financial markets)
8) Research and Analysis
9) T Rowe Price insights (T Rowe Price fund managers commentary)
10) Charitable giving
11) Tools and Resources

[Joi]

I'd say in addition to credit score, add credit reporting. When I was younger I knew to check my credit report but I didn't know what to look for to make sure it was accurate. Also touching on what inquiries are and buidling a credit file for financing major purchases.

[jpg7n16]

1st - consider your target audience. Think of the issues that most effect the group you'll be teaching and then tailor the course to speak heavily on those topics. Are they complete novices or semi-experienced in finance? I would teach 2 very different classes if the average age were 23 or 45.

Is this a plan for an entire semester? or just a one time lecture?

You have ignored disability insurance, and estate planning. (except gifting - which you have)

Estate planning is the endgame of life.


If you are looking for ideas, here is the topic list for the CFP:
Certified Financial Planner Board of Standards Inc. - Topic List for CFP® Certification Exam

While I don't think you'd be able to cover the entire list in one class, you could definitely use it to generate some ideas for topics to cover.

[jIM_Ohio]

Originally Posted by jpg7n16

1st - consider your target audience. Think of the issues that most effect the group you'll be teaching and then tailor the course to speak heavily on those topics. Are they complete novices or semi-experienced in finance? I would teach 2 very different classes if the average age were 23 or 45.

Is this a plan for an entire semester? or just a one time lecture?

You have ignored disability insurance, and estate planning. (except gifting - which you have)

Estate planning is the endgame of life.


If you are looking for ideas, here is the topic list for the CFP:
Certified Financial Planner Board of Standards Inc. - Topic List for CFP® Certification Exam

While I don't think you'd be able to cover the entire list in one class, you could definitely use it to generate some ideas for topics to cover.

I am planning (anticipating) the course target age is closer to 45. If the audience is high school students, I would ask for 2X as much time to cover every subject listed and also add some topics on careers, income and disability issues with those careers.

If the school wants "EVERY" subject taught, I would organize above into more of a curriculum (than just one course) with the first course being general personal finance, with an add on course for investing, then an add on course for financial planning, then another class for college planning.

The core topics are clearly

1) Income- sources like W-2 vs 1099 and the pros and cons of each
2) Budgeting
3) Emergency fund
4) debt management
5) financing things vs paying cash
6) investing (buy something which goes up in value)
7) knowing risks
9) Compound Interest
12) Income taxes (personal income taxes)
15) Calculating interest rates and rates of return
17) Banks vs credit unions vs other financial institutions (like brokerages)
20) Credit Scores

From there I could add a whole 10-20 week course on

1) investing
2) small businesses
3) Insurance (life, car, health, disability)
4) creating financial plans
5) taxes

and similar as topics are requested or deemed obsolete.

[bjl584]

How long is the course? Will you have time to drill into these subjects, or will it be more of a 30,000 foot fly-over?

It looks solid, I guess my only advice would to be to keep things plain and simple at first. I believe from being around that you have experience teaching classes correct? If so, then you would already be able to get yourself in the mindset that others don't know as much as you do. I have a huge problem with this. I can't talk to people about subjects that I am knowledgeable on and they are not. It's hard for me to come down to someone else's level. I guess that I would make a bad teacher.

[jIM_Ohio]

Much of the issues still open are length of course and the audience- I will know that by 8pm tonight.

here's another question- how much is all this training worth?

[maat55]

One of my pet peeves is allocation of non investment budget. How much house and car should you have as apposed to how much you can afford. I see too many people strapped due to excess in these two areas.

I'm also a big fan of save and pay cash, it is kinda the abstinence over condom mentality. I feel much safer having cash in the bank as appossed to an payment when trouble comes.

These are likely just options in your debt management catagory.

[jIM_Ohio]

A few issues cleared up

Class is for adults
Classes need to be flavored for occupations- meaning I have to relate topics to various occupations to help people see if they are interested in a career in that field.

I proposed two courses and suggested that insurance agents, financial planners, stock brokers as well as heads of households would be interested in taking them. For the personal finance course I also added bankers and mortgage brokers to the list.

Once course was on Personal Finance for Individuals and the second course was Retirement Planning for Individuals. About 5 of the topics overlapped, but the level of detail each topic is covered would be different in the courses, and neither course has any pre-requisites.