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Econoinic Education Nevvsletter Remember Your First Paycheck? a co ll ege degree unless he's enrolled in a college prep course or will change to a co ll ege prep course. '' The students are issued " Math City" checkbooks and must write checks to meet all their expenses. They h ave to keep track of deposits and c h ecks as they occur and reconcile the checkbook at the end of the month. They research the kind of housing they prefer and its cost and report to the teacher. They make a monthly payment for this kind of housing . They receive monthly " bills" (when applicab le) for heat, electricity, gas, phone, property taxes, furniture, and water. They write checks for these expenses. The students explore the options open for transportation and "buy" the vehicle of their choice. They then make monthly payments for the purchase price and operating cost of the vehicle. One student had worked out that he had about $85/ month to spend on a car payment. When he went to the local car dealer, however, he found that the super sports car that he wanted would run him about $ 135/ month to purchase, and so ("with no Remember your first paycheck? Remember how much was left after taxes and after you paid the landlord , the electric company, the gas company, the telephone company , and bought the groceries? There wasn't much left for new clothes or movies or eating out, was there? And it was quite a shock. Geraldine Phelps, a teacher at the Merrimack Valley High School in Penacook, ew Hampshire, has developed a course called "Math for Everyday Living" which can help lessen the shock for high schoo l students when they enter the adu lt working world and can help teach them how to manage their fami ly finances. At the start of the course, the students comp lete a personal information sheet (see page 4) and receive a " paycheck" based on their vocational aspirations plus five years of experience. Ms. Phelps noted that she requires their aspirations to be in line with their school coursework and performance. " I won ' t let a student earn the pay of a neurosurgeon if he's failing English and natural science, " she said. "And a student can ' t get paid for a job requiring No. _ _ __ $- -----< _ _ _ _ _ _ __ _ _ J g _ TO - - - - -- -- - ---< For - - - Amount Continued on page 4 @_%---------#9 Math City National Bank 6# 96c) _ _ _ __ - -- - -- - - - - - l Bal. Brought Forward prompting from me," says Ms. Phelps) the student told the salesman he could not afford the car he wanted. Then he asked to see something more in his price range. The students research the insurance necessary to their lifestyle, receive monthly bills for the insurance and make out checks to pay the bills. The students investigate family clothing needs and make appropriate decisions. T h ey also investigate vacation possibilities and p lan a vacation for their family . For each unexcused absence, the students are docked one-fifth of their weekly pay. They are allowed to write checks only as long as they h ave sufficient funds in their accou nts. If expenses exceed income, the students must explore tJ1e options open to them. One girl planned that her job would be administering check-ups on Volkswagons, using a computer the VW company has developed. She figured she would eventua ll y have an income of $175 / week to work with. However, she "purchased" a $64,000 Pay to the Order of No. _ _ _ __ _ _ _ _ 19 _ _ $ _ __ _ _ n~p. Total Dollars Am 1 This Check 0 B.al. Carried Forward Federal Reserve Bank of Boston Vol.3, No.1 • May 1976 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Nevv England Update MAINE The Maine Council on Economic Education is once again publishing its Economic Education News, with George Cunningham as ex ecutive director of the Council and P.A. Nixon, who is president of the Dead River Corporation, as cha irm an of the Council. The most recent issue of the newsletter contained a new newsletter published by Maine bankers. The banking newsletter explored the topic of electronic funds transfer in a well-written and interesting way. Future issues will deal with other bank-economic related topics. For information about either newsletter, contact: ED EC, 22 Coburn Hall , University of Maine, Orono 04473. MASSACHUSETTS Over fifty teachers participated in the Economic Education Flea Market at the regional social studies convention held at the Statler Hilton in Boston early this month. Ten tables were set up in a large room and teachers cou ld visit each "station " to learn about different projects and techniques in eco nomic education. Nancy Powell of Quincy (MA) High School described a " marriage project" she ran with students in which teams of two students each plan a wedding, reception, honeymoon and a budget for the first six months of marriage. George G. Watson of Winchester Senior High School, who organized the flea market, described selected activities for teaching economic concepts through science fiction and future-oriented materials. William P . O'Connor, director of social studies at Winchester Senior High School, described activities for teaching about the Great Depression. Teachers from all over New England participated in the sharing of ideas at the fl ea market. A seminar in economic education for secondary school teachers is planned at the Center for Economic Education at Worcester State College, running from May 4 to June 3. Applications are now being accepted for this seminar. For information, contact Paul O'Neil, (617)754-6861 at the College. The Center will also be holding two workshops for elementary and secondary teachers in Gardner this spring. The Gardner sessions are booked to capacity. "The Role of Bu siness in Contemporary American Society" will be exp lored using the case study method at a summer workshop sponsored by the Financial Executives Institute (Boston Chapter) and the Business History and Economic Life Program, Inc. (BHELP) The workshop will be held at the Henderson House Conference Center of ortheastern University and will run from July 12-23. The conference center is in Weston. For information, contact: Harold A. Miner, Director, Bureau of Educational Field Services, College of Education, Northeastern Univers ity, Boston 02115. The Center for Economic Education at Stonehill College is planning a one-week workshop on economics in the secondary school curriculum to be h eld July 18-23. For information, contact Robert Hardine, Stonehill College, North Easton 02356. The Center is also in the process of creating a resource center which will expose teachers to the printed and audio-visual materials available to them in teaching economics. EW HAMPSHIRE A Spring Conference of elementary and secondary school social studies will be held on May 8 at Nashua High School from 8:30 a.m. to 2:45 p.m. Approximately 45 section meetings will cover such topics as economic education, law of the seas, curriculum development at the local level and teaching about local government. For information, contact: Carter Hart, New Hampshire Department of Education, 64 N. Main St., Concord 03301. Businessmen from all over Rhode Island attended the annual meeting of the Rhode Island Counci l on Economic Education in January. From left to right, they are: William G. Chafce, treasurer of the Providence Journal Company; Robert Perry, president of the Washington Tru t Company; Alex Donas, vice president of the Jewel Case Corporation; Clement Williamson. chairman of the Sealol Corporation; Henry Woodbridge, president of Rhode Island Hospital Trust ' ational Bank; Russell Field, president of Brownell and Field Company; and Erskine White, executive vice president of Textron, Inc. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 Readers are invited to use The Ledger as a forum to share news about their experiences in economic education. Write: Mar)' Jan e Coyle, Editor, Th e Ledger, Publi c Services, Federal Reserve Bank of Boston , 30 Pearl Street, Boston 02106 or call: (617) 426-7100 X462. Copyrig h1© Fo ll eu Publishing Co. Reproduced by perm iss io n. MultiMedia Grade level code: Cap i tal l e tt ers ( E-J - H -C ) aft er eac h i tem i ndica te g rad e leve ls fo r w hich the materials are m ost ap propriate: £-elementary school, ] -junior high sc h ool, H - high school, C-college. T he Name of the Game is Money by J ean Conder Soule, (J-H), 24 page , is th e story of four high school students forming - and financing - th eir own rock bank, th e " Wh ee ls of Fortun e . " Produced by the American Banke r s Associa tion, the story stresses th e banking needs of the group how to open a nd u e a checking account and how to obtain a loan - in an interes ting way. Banking se r v ices a re d esc rib ed a nd th e bookl et is colorfull y illustra ted . A crossword puzz le for students h as bee n d es ig n ed to acqu a int stud ents w ith banking terms, three f u 11- c o I o r " overhead " tran sparen ies describe ch e k writing, checkbook balancing and account s t a t e m e nt bala ncing, and a teach er · ma nual expl ains how to use the m a terials. 1972. For a kit conta ining 30 student booklets, a teac h e rs m a nu a l, 30 c rossword puzzles and three overhead tra nsparencies, write: Educa tion Council , The American Ba nkers Associa tion , 11 20 Conn ec ti c ut Av e., .W. , W ashington , D. C. 20036, 20 per kit. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Superheroes of Macroeconomics, (J-H ), by S teve J ack tadt and John Dawson, Yukio H am ada and Bill L oc ke, 70 pages, a co mi c-book fo rm in cl udin g th ree s tories in whi c h th e s up e rh eroes Fi sca l Fl as h , M o n e ta ry Man, Militantm a id a nd Wing Sun battle th e " dual-demon " of infl a tion and depression to res tore economic stabilit y. T h e s tor ies m a ke inte res tin g readin g a nd th e illustration s m a k e it fun . Each story is follow ed by a good expl a na tion of the economic principl es embodied in the story. Monetary and fi sca l pol icy are covered , as are wage a nd price control . " Review and Applica tio n " q uestio ns tes t understanding or could be used to start discuss ion. A T eachers' Gu ide is ava il a bl e. Write: Fo ll ett Publishin g C o m pa n y, c/ o SS R S upe rvisor, 101 0 W. Washington Blvd., Chi cago , IL 6 0 60 7, 1. 50 for Sup erh eroes , $0.84 for T eachers' Guide. An American Account: The Story of Banking, 16 mm color, 30 minutes, an historica l rev iew of American banking from the financing of the Ameri a n Revolution until pr ese nt t i m e. T h e m ov i e, produced by the Am erican Ba nkers Associa tion , u es illustra tions from the various eras of America n histor y in a n a ttrac tive and entertaining way. A discuss io n g uide e l a bor a t es o n th e wo rking of money a nd ba nking in Am erican history. To borrow the film free of 3 cha rge, write: Public Informa tion C e nte r, Fed eral Reserve Bank of Bos to n, 30 Pearl S t. , Bo to n 02 106 o r ca ll: (6 17)426-7100 X 656. BICENTENN IAL DEBATES HELD IN BOSTON Regional winners of the Bicent e n n i a I Youth D e b a t e w e r e cho en April 8 in Bosto n . Winner o f th e Lin coln -Dougla s debate was Kristin Stred from Winthrop High chool in Winthrop, Ma ine. Winner of the persuasive speaking event was Pa tricia Falese of acred H ea rt Aca de m y in H e mp s tea d , ew York; a nd winner of the extemporaneous speaking event was S t e ph e n W e in e r of th e Bronx Hi g h c h oo l o f Science in ew York City. Regio na l winners fro m a ll over the United Sta te will take pa rt in ceremonies in Washington in June. T he Ledger com p il es informa 1io n from va r ious sources and is p ublished peri od ica ll y as a pu blic service by th e Federa l Reserve Bank of Boston. Inclusion o f n ews a bo ut eco no mi c edu cat io n sho uld no t be construed as a n end orsement o f specific p rogra m~ by the Ba nk . M a te r ia l conta ined herein does 1101 necessa rily refl ect the views of the Federal Reserve Ban k o f Bos to n or the Board of Governors . Co pi es o f this news letter a nd a ca ta logue o f o ther ed ucat ion a I p ubl ica tions, fil ms and pu blished research informa tion may be obta in ed free o f charge by writing: Ban k a nd P ub li c Inform a ti o n Center. Federa l Reserve Ba n k o f Boston, 30 Pearl S treet, Bosto n 02 106 or by ca llin g (6 17) 4267100 X 656. Paychec½:ominued from pageI house with a mortgage payment of $257 / month, a new $4,000 car and had three dependents to take care of. By June, she was up to her neck in " debt." When a Concord represe ntative of Family Financial Services visited the class in June, they discussed h er problem, he asked her what she would like to get rid of. The student indicated that she wanted to get rid of ·'everything and start a ll over again! " It was a conclusion she had come to h erself after surveying her own financial dilemma. Ms. Phelps stressed that the students each mak e their ow n decision s about how to spend their income. They are advised to keep their choices within their budget, and , in fact, the success or failure to have sufficient funds to meet expe ns es beco m es important to most students. Many will decide to reduce their spending if their plann ed expe nditures look like they will exceed their income. The students must also budget for th e un expec ted; th ey draw cards periodically which m ay send th e ir d epe nd ents to the hospital (a nd add on a hospital bill depending on their insurance coverage) or may resu lt in a broken furnace. (If they rent their apartment, they don't have to purchase a n ew furnac e; if th ey have bought a home, they have to buy a n e w one , thu s exp erienc ing so m e of the furth er implicat ions of their decision to rent or buy a home.) Many of the students say tha t they would prefer to budget as individuals , instead of as fam ilies, but Ms . Ph e lps insists th at th ey take h a lf the number of peopl e in th e ir present fam iii es as dependents since she feels th at most of the class will indeed marr y and h ave to budget for a family . Durin g th e course, stress is placed on decision making, the fa c tors in volved in the decisions the students m ake, the economic implica tions of the dec isions and the math skills necessary to make so und d ec ision s. Teachers interested in learning more a bout this cou rse can contact Ms. Phelps at Merrimack Vall ey High Sch oo l m Penacook, N .H. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PERSON AL INFORMATION SHEET I. Name: 2. Town of residence: 3. Number of people living in your hom e? 4. Do you live in a hou se, an apartment or a mobil e home? 5. Do you h ave a phone? 6. Names of phone company and electrical company? (There are different co mp anies in the Penacook region which ch arge different rates.) 7. List nam es and numbers of major gas and elec tric appliances in your hom e: 8. Primary source of h eat in your home? 9. Does your family raise a garden? 10. Does your family raise its own meat, poultry, etc.? 11 . Does your fami ly preserve food for la ter use? 12. What mak e a nd model car(s) does your fam ily own? 13. Wh at types of insurance coverage does your fam il y h ave? 14. Does your family own a snowmobile, boat, trailbike, second home, camper or o th er recreationa l item? THE TWO DOLLAR BILL IS BACK! As of April 13, two dollar bills were once again ava il ab le at commercial banks throughout the nation. If the " twos" replace one-half the one dollar bills in circulation , th e Treasury could realize a sav ings in printing costs of $4-7 milli on a yea r over the next few years. A four-page pamphlet about the new bill, " Two Dollar Points," is avai lable free of charge from the Bank and Public Information Center, Federal Reserve Bank of Boston, 30 Pearl St., Boston 02106. 4