Jeanette A. Tucker, Ph.D. LSU AgCenter jtucker@agcenter.lsu Kim Bourgeois & Sandi Lambert

1. Jeanette A. Tucker, Ph.D. LSU AgCenter jtucker@agcenter.lsu.edu Kim Bourgeois & Sandi Lambert Louisiana Federal Credit Union kbourgeois@lafederalcreditunion.orgslambert@lafederalcreditunion.org

2. Objective: Students will develop the financial capability to manage their finances on their own after high school • Comprehensive curriculum reinforced by technology-based real world simulation • Grades 7-12 • Students learn: • Budgeting • Tracking expenses • Managing accounts • Differentiating needs • Saving for financial goals • Financial decision making

3. Curriculum Series of 50-minute lessons, very interactive and linked to Standards • A $MART Future • Understanding Your Paycheck • Budgeting for LYFE • Banking Basics • Saving and Investing for LYFE • Insuring Your Future • Credit-Dream or Nightmare

4. Simulation Scenario • Students assume role of 24 years old • Single, no children • Occupation/salary based on students goals, personality assessment and career inventory • $100/month direct deposited into savings account • Goal: Plan and live “LYFE” for one month without running out of money • All sales final, no returns/exchanges • No roommates

5. Students Visit Stations to Make Purchase Decisions • Housing • Transportation • Grocery • Clothing • Insurance • Telecommunications • “That’s LYFE” • Fun and Entertainment

6. Let’s experience

7. Occupations/LA Entry Level Salaries Source: Louisiana Workforce Commission

8. Occupations/LA Entry Level Salaries Source: Louisiana Workforce Commission

10. Protocol • Students visit the housing station first.

11. Booth 1: Housing“LYFE Mortgage and Homes” TYPE OF HOUSING: MONTHLY COST: Find a place to live! RENT A CONDO OR APARTMENT: monthly cost includes rent, fees & utilities. Pay month to month. BUY A HOUSE: monthly costs include the note, utilities, maintenance, and home- owner’s insurance. You will pay this amount every month for 30 years! BUY: 3 BEDROOM HOUSE—NEW Average price: $225,000 $2,005 Monthly Note:1,497 Your monthly note includes these costs: Utilities: $250 Insurance: $158 Maint/Fees: $100 BUY: 3 BEDROOM HOUSE—15 YEARS OLD Average price: $160,000 $1, 722 Monthly Note: $1,064 Your monthly note includes these costs: Utilities: $300 Insurance: $158 Maint/Fees: $200 RENT: 2 BEDROOM CONDO Monthly Note: $1,400 $1,655 Your rent includes these costs: Utilities: $180 Maint/Fees: $75 RENT: 1 BEDROOM APARTMENT Monthly Note: $685 $785 Your rent includes these costs: Utilities: $75 Maint/Fees: $25

12. Protocol • Participants visit the Housing stationsfirst. • Volunteers, as salespersons, discuss various purchase options with participants at each station • LYFE coaches are available to assist students in making purchasing decisions • Note: All sales final, no returns/exchanges • No roommates

13. Booth 1: Housing“LYFE Mortgage and Homes” TYPE OF HOUSING: MONTHLY COST: Find a place to live! RENT A CONDO OR APARTMENT: monthly cost includes rent, fees & utilities. Pay month to month. BUY A HOUSE: monthly costs include the note, utilities, maintenance, and home- owner’s insurance. You will pay this amount every month for 30 years! BUY: 3 BEDROOM HOUSE—NEW Average price: $225,000 $2,005 Monthly Note:1,497 Your monthly note includes these costs: Utilities: $250 Insurance: $158 Maint/Fees: $100 BUY: 3 BEDROOM HOUSE—15 YEARS OLD Average price: $160,000 $1, 722 Monthly Note: $1,064 Your monthly note includes these costs: Utilities: $300 Insurance: $158 Maint/Fees: $200 RENT: 2 BEDROOM CONDO Monthly Note: $1,400 $1,655 Your rent includes these costs: Utilities: $180 Maint/Fees: $75 RENT: 1 BEDROOM APARTMENT Monthly Note: $685 $785 Your rent includes these costs: Utilities: $75 Maint/Fees: $25

14. Today—You are the LYFE Coach!Please use your clickers to make your housing recommendation to Samantha . . . • Buy new 3-bedroom house @ $2005 • Buy used 3-bedroom house @ $1722 • Rent 2-bedroom condo @ $1,655 • Rent 1-bedroom apartment @ $785

15. Protocol • Students visit the Housing station first • Volunteers, as salespersons, discuss various purchase options with participants at each station • LYFE coaches are available to assist students in making purchasing decisions • Note: All sales final. No returns/exchanges • No roommates • Participants make purchase decision and record on LYFE worksheet. Volunteer enters purchase decision on LYFE website

17. Protocol • Students visit the housing station first. • Volunteers, as salespersons, discuss various purchase options with participants at each station • LYFE coaches are available to assist students in making purchasing decisions • Note: All sales final. No returns/exchanges • No roommates • Participants make purchase decision and record on LYFE worksheet. Volunteer enters purchase decision on LYFE website • Participants pay for their selection via check (housing) or debit card (all other categories).

19. Protocol • Students visit the housing station first. • Volunteers, as salespersons, discuss various purchase options with participants at each station • LYFE coaches are available to assist students in making purchasing decisions • Note: All sales final. No returns/exchanges • No roommates • Participants make purchase decision and record on LYFE worksheet. Volunteer enters purchase decision on LYFE website • Participants pay for their selection via check (housing) or debit card (all other categories). Volunteer provides student with receipt for purchase. • Participants may check their account balance at any time at Banking kiosk • Students proceed to next station and repeat process

20. Banking Kiosk

21. Booth 2: Transportation“LYFE Auto Sales” TYPE OF VEHICLE: MONTHLY COST: LUXURY (Lexus LS 460, Chevy Camaro, Cadillac Escalade) NEW: Average price: $72,400 $1,690 Average cost to maintain: $5,800 USED: Average price: $43,800 $1,338 Average cost to maintain: $7,300 Buy a car! Monthly cost includes the note, plus regular maintenance & gas, and insurance for your vehicle. You will pay the cost each month for 5 years! PREMIUM (Ford Expedition; Nissan Maxima, Ford F150) NEW: Average price: $35,800 $984 Average cost to maintain: $4,650 USED: Average price: $19,250 $783 Average cost to maintain: $5,545 STANDARD (Toyota Camry, Honda Accord) NEW: Average price: $21,790 $665 Average cost to maintain: $3,620 USED: Average price: $12,430 $575 Average cost to maintain: $4,415 ECONOMY (Honda Fit, Toyota Yaris, Vespa Scooter) NEW: Average price: $15,700 $533 Average cost to maintain: $3,250 USED: Average price: $10,730 $505 Average cost to maintain: $3,915

22. Please use your clickers to make your transportation recommendation to Samantha . . . • Luxury New @ $1,690 • Luxury Used @ $1.338 • Premium New @ $948 • Premium Used @783 • Standard New @ $665 • Standard Used@575 • Economy New @$533 • Economy Used @505

23. Booth 3: Grocery“LYFE Foods & Company” GROCERY BASKET: MONTHLY COST: BASKET A: “SINGLE LIFESTYLE” Store of choice: Discount Grocery chain. $200 It’s just you, so why bother cooking? You prefer ready to eat meals, frozen pizzas, and generally processed foods. Buy groceries…or eat out! All options include basic toiletries BASKET B: “MODERATE” Store of choice: Local Grocery chain. $350 You prefer to cook at home. You prepare most of your meals with ingredients found in your pantry. BASKET C: “ORGANIC” Store of choice: High-end specialty grocery store. $600 You focus on healthy living and prefer to eat organic meats, fruits and vegetables. You cook with high quality ingredients. BASKET D: “FAST FOOD JUNKIE” Store of choice: Convenience store. $750 You generally eat out most meals and don’t keep much food in the house. Basics come from the corner store when needed.

24. Please use your clickers to make your grocery recommendations to Samantha • Basket A: “Single lifestyle” @ $200 • Basket B: “Moderate” @ $350 • Basket C: “Organic” @ $600 • Basket D: “Fast Food Junkie” @ $750

25. Booth 4: Clothing“LYFE Mall” SHOPPING BAG: MONTHLY COST: Select a wardrobe - what’s your style? SHOPPING BAG A: “FRUGAL SHOPPER” Stores similar to: Second-hand store, Wal-mart$50 SHOPPING BAG B: “MODERATE” Stores similar to: Discount Retailers, Forever 21, Aeropostale$125 SHOPPING BAG C: “HIGH END” Stores similar to: Specialty Shops, Department Store, Macys, Saks 5th Avenue $300

26. Booth 5: Insurance“LYFE Insurance & Company” PRODUCT: MONTHLY COST: RENTER INSURANCE (OPTIONAL) For condo or apartment living only. $50 To buy or not to buy: Protect yourself from unexpected expenses. LIFE INSURANCE (OPTIONAL) This insurance will pay a sum of money to family or spouse in the event of your death. Non-smoker: $25 Smoker:$50 HEALTH INSURANCE (OPTIONAL) This insurance pays for health related expenses including $125 doctor visits, surgeries, child birth, etc. DISABILITY (OPTIONAL) This insurance will pay all of your debts in the event you $50 become disabled.

27. Booth 6: Telecommunications“LYFE Telecommunications” PRODUCT: MONTHLY COST: Purchase a cell phone or home phone then purchase an entertainment plan! PHONE: “PAY AS YOU GO” PLAN $20 Prepaid cell phone plan only. No bells and whistles. PHONE: “REGULAR CELL PHONE” PLAN $50 Standard cell phone only with moderate minutes. PHONE: “SMART PHONE” PLAN $100 Cell phone plan with moderate minutes, internet, text, music. PHONE: “LAND LINE ONLY” PLAN $30 Home phone service only. TV: “BASIC CABLE” $50 Basic television home access. TV: “CABLE AND INTERNET” $75 All cable channels and home internet. TV: “HOME ENTERTAINMENT EXPERIENCE” $150 All cable channels, home internet, and landline.

28. Booth 8:That’s LYFE“LYFE Inc.” Stop here once during your LYFE experience...

29. Booth 8: Fun & Entertainment“LYFE Entertainment Co.” EVENT: COST: Movie ticket + popcorn and drink $15 After you’ve paid your “bills” - decide on some fun. Select as many options below as you’d like… Concert $75 Sports Event $50 Gym Membership $45 Game of Golf/Tennis $40 Eat Out $25 Pool Party $155 Grass Cutter for a month $80 Salon $55 Housekeeper for a month $75 Pet $55

30. Congratulations, you have experienced LYFE! What do you think? • I am surprised that it cost so much to live. • I need to study/stay in school so that I can have a better paying career. • I really needed a _____, but could not afford it. • I really wanted a _____, but could not afford it. • I have money left, but it was hard. • I had plenty of money and could afford extras.