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GREEN STUDENT SESSION x GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM

GREEN STUDENT SESSION x GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM FOLLOW US ON SOCIAL!

TABLE OF CONTENTS OUR MISSION & VISION I OUR GOALS II ARTICLE: Women Suffer From “Math Anxiety” III More Than Men Do - Here’s How To Reverse It STATISTICS VI WORKSHOP SESSIONS OVERVIEW VII GREEN SESSION ONE 1 BINGO 2 RTSWS COHORT NORMS 3 PRE-ASSESSMENT 4 AGENDA 5 KEY TERMS 6 STOCK REVIEW 11 GLOWS AND GROWS 12 REMINDERS FOR NEXT SESSION 13 YAHOO! FINANCE INSTRUCTIONS 14 SESSION #1 BONUS MATERIAL 16 GREEN SESSION TWO 18 WELCOME & NORMS 18 AGENDA 19 KEY TERMS 21 ARTICLE: How To Read A Paycheck 23 PAYCHECK VS. PAY STUB 24 STOCK REVIEW 29 NEW INVESTMENT KEY TERMS 31 PROJECT: Financial Planning for Janella 34 GROUP REFLECTION 36 REMINDERS FOR NEXT SESSION 37 JANELLA’S MONTHLY BUDGET SPREADSHEET 38 SESSION #2 BONUS MATERIAL 39

TABLE OF CONTENTS GREEN SESSION THREE 42 WELCOME & NORMS 42 AGENDA 43 THINK ABOUT IT! 43 KEY TERMS 44 STOCK REVIEW 46 NEW INVESTMENT KEY TERM 48 PROJECT: Financial Planning for Janella 50 GLOWS AND GROWS 52 REMINDERS FOR NEXT SESSION 53 SESSION #3 BONUS MATERIAL 54 GREEN SESSION FOUR 56 WELCOME & NORMS 56 AGENDA 57 THINK ABOUT IT! 57 KEY TERMS 58 STOCK REVIEW 62 NEW INVESTMENT KEY TERMS 65 PROJECT: Financial Planning for Janella 66 GROUP REFLECTION 68 SESSION #4 BONUS MATERIAL 70 GREEN SESSION FIVE 78 WELCOME & NORMS 78 AGENDA 79 STOCK REVIEW 79 FINANCIAL LITERACY KEY TERMS 82 POST-ASSESSMENT 84 GROUP PRESENTATIONS 85 GROUP REFLECTION 87 REMINDERS FOR FIELD TRIP 87 SESSION #5 BONUS MATERIAL 88 RESOURCES 98

ABOUT ROCK THE STREET, WALL STREET

OUR VISION Rock The Street, Wall Street hopes to break the cycle of multi-generational fnancial naivete so that girls have a better chance at improving their lives, their households and their communities. Fifty years after the adoption of Title IX, women continue to confront barriers to full equality at all levels; most critically of which is in their fnancial lives. This is even more egregious for women of color, where they earn, save and invest at lower rates. In college fnance and economics classrooms, girls are few in number. As a result, their opportunities in pay, promotion and life are unequal. Equipping girls with fnancial skills is a vital part of ensuring equal opportunity. Financial literacy is The Great Equalizer Rock The Street, Wall Street is reaching young women at their local high schools and ofering them a fight path to a fnancial education through hands-on fnancial projects, workshops, role modeling, mentoring and real-life Wall Street experiences. Girls are introduced to fnancial concepts such as savings, investments, post-secondary and college fnancial preparedness, budgets, stocks, bonds, fnancial analysis, venture capital and private equity.

OUR MISSION Rock The Street, Wall Street is a fnancial and investment literacy program designed to bring both gender and racial equity to the fnancial markets and spark the interest of high school girls into careers of fnance. Girls learn about saving, investments, budgeting, stock and capital markets and their role in maintaining the welfare of their families, communities and the economy, while simultaneously helping them see the real world application of the math content they learn in the classroom.

Rock The Street, Wall Street believes to close the gender gap in wages, wealth and in the fnancial services sector, we have to inspire girls to pursue the M in STEM and fnance, by exposing them to real life role models. The number one reason why girls are not choosing STEM professions - they don’t see women in those professions. The number two reason - they don’t see their friends choosing those majors in college. We engage female fnancial pros who walk the talk on all matters fnancial. They teach and motivate the next generation. Our students see girls in their RTSWS cohort choosing fnance, economics or a related computational feld as their majors/minors. Whether they choose the profession, or head into another feld, our students are far better prepared for critical decision making on all types of fnancial and career prep matters.

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• Increase fnancial and investment literacy of girls at a young age so that they are aware of the fnancial responsibilities AND opportunities of post-secondary life, at college, at work, at home and in their communities.

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• Create the social capital between students and female fnancial professionals that will enable students to get a jumpstart on their personal money management behavior and on their college and work lives.

• Coach students on resume building.

• Create a longitudinal cohort of girls who can network with each other across cities, countries, socio-economic lines and industries.

Open girls’ minds to math-focused felds of study as compatible with a career that has a positive impact on the world.

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• Spark girls’ enthusiasm for fnance at a critical age and make them aware of the societal benefts personal fnancial knowledge and math-oriented careers can ofer.

• Provide a pathway to better lifetime money management, academic performance and college preparation.

Foster students’ continued growth in fnance through their college years and into the workforce.

Close the gender and racial gap in wages, investments and wealth accumulation for all women.

• Become the go to internship and job portal for emerging, diverse talent in the fnancial services industry and beyond.

• Provide career discovery by ofering job shadowing and/or industry summer internships.

• Teach girls on how being fnancially independent is key to living a self-determined life.

OUR GOALS

•felds.Create an early pipeline of female talent so as to increase the number of women who enter into the fnancial services industry.

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• Increase the number of women studying fnance, economics or related computational business

A fear of math can be debilitating — and not just because it could result in poor math grades. Many students, especially girls, may avoid careers that include a heavy amount of math, especially those in STEM (Science, Technology, Engineering and Math) felds. https://www.marketwatch.com/story/thegender-gap-starts-in-ninth-grade-2018-08-20

Many Americans suffer from “math anxiety,” which inhibits their ability to solve problems — a potential issue when it’s time to balance a checkbook or save for retirement.

By Alessandra Malito, MarketWatch (October 24, 2019)

Girls made up just 30% of the top 5,000 ninth-graders in the American Mathematics Competitions, according to research distributed by the National Bureau of Economic Research in 2017. Just 18% of the top 500 ninth-graders were girls, and only 8% of the top 50. That gender gap worsens as they age — by senior year, only 22% of the top 5,000 are girls (compared with the 30% in ninth grade), followed by just 12% of the top 500.

This teacher-turned-fnancial adviser on the different ways men and women approach math and life

Parker, 30, taught Algebra II and geometry to high-school students before switching to fnancial planning and working with her 76-year-old father, who has his own frm. She also became a Certifed Financial Planner. “I have a math background and the CFP puts me in a good position to do fnancial planning in a way that educates people about the planning and why,” she said. Their age difference also helps them work with clients of all ages and provide their own perspectives, she Parkeradded.spoke with MarketWatch about her education background, why people are so worried about math and how to mesh the two:

ARTICLE

Women sufer from ‘math anxiety’ more then men do - here’s how to reverse it

Math anxiety may start in the classroom during childhood but it has a way of following students throughout their lives, said Maddie Parker, a fnancial adviser at Parker Financial Group in Overland Park, Kan., who started her career as a high school math teacher before switching to fnancial planning. She has seen people postpone their fnancial plans and refrain from saving for retirement because they don’t want to deal with the possibly complicated equations and complex investing topics.

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MarketWatch: How exactly would you describe math anxiety?

MW: Is it something adults face?

Maddie Parker: A lot of people would say “I have that” and to a degree, a lot of people do, but it’s more than feeling like you don’t do well on exams. Kids who have math anxiety almost always have a physical inability to respond to being tested or asked to perform on math-related tasks. It is just built up over the years of different experiences, and it stops them from being able to learn any further.

IVGREEN STUDENT INTRODUCTION GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM

Parker: In high school, you’re not required to take personal fnance and the math you’re doing is unrelated to what you do in real life. And that real life math in your brain is still tied to calculus so you think, “I couldn’t do that at 16, I probably can’t handle fnances now.” But it is different math. It’s not to say it’s simple, but it’s different, and it is applicable in such a way that people do fnd it easier to understand. It is not quite as challenging as graphing logarithmic equations. It’s a lot different.

Parker: It translates from kids to adulthood. When you get out of school, you’re less exposed or have less experience being tested so the anxiety may seem like it’s gone away but any time math or that skill is re quired, the anxiety comes right back. I think it has been perpetuated as a weird acceptance in our coun try, that it’s OK to be bad at math. Like, “oh, math is hard and it’s OK not to get it.” It de nitely follows into adulthood and a ects people dealing with fnances, because they have to do math and they don’t know how to do it, and they’re stressed or embarrassed to ask for help.

Parker: There are great articles and podcasts and TED talks about the same concepts, of how we’re raising our girls to be perfect and raising our boys to be brave. And there was one example at a girls’ coding camp, where they have to learn to do coding and the girls specifcally would type up all this stuff and then if they couldn’t fgure it out they’d erase it all and call the teacher over. The teacher would press undo and show all of this work and that they were really close, but because the girls couldn’t make it work they wanted to tell the teacher to show them from the beginning. They didn’t want to show this not perfect work.

MW: How can math anxiety impact personal fnances?

MW: There are many people who say women generally are more likely to have math anxiety than men. Is that something you’ve seen?

Parker: It is more apparent for women when they are single individuals. They’re more comfortable saying “I don’t get it” or it’s more evident. They’re not as afraid to ask for help. It’s when they’re with their spouses it is easier to be quiet or let them talk and pretend you understand things because your partner is helping you, but it is still relevant. I always work with most clients together and I will ask them both “do you understand this?” or make sure they’re both on the same page.

Parker: One of the biggest ways is in my ability to explain things. It’s funny, I majored in math and decided to be a high school math teacher, but when I was in high school, I struggled with math. I had good grades and I didn’t have math anxiety, but I wasn’t some freaky Einstein genius kid who got it all. It made sense when I didn’t get something right and because I liked it so much I worked hard to understand it. I was good at explaining things to my friends. But my own struggle made me good at explaining it. A lot of math teachers are geniuses who understand it, and that makes it hard to explain it to students who are struggling. That ability translates nicely to doing fnancial plans. I can see what is probably going to confuse them and where they’ll get lost.

MW: Does that concept translate to adult couples in fnancial planning?

Parker: It varies, but one big thing we talk about is infation and compound interest. The need to factor in infation because a dollar today is not going to be a dollar 10 years from now, and that it is a slow climb. People are amazed at how different the numbers look when I factor in 2.5% infation.

MW: Is there any way to overcome math anxiety?

MW: Are there any math-related topics that clients typically have a hard time understanding?

MW: How would you say your background as a math teacher benefts you and your clients?

It is just a good example that demonstrates that girls are being raised to be perfect and not in the same way as boys, who may say (like in that example) that they don’t care and at least they’ll get partial credit. The only way to learn is by making mistakes, but that gets lost on girls when they feel they have to be perfect.

Parker: It is important that there be no stigma about it. There’s this expectation people have of themselves that they should know more about fnance because it applies to their life. I am a fnancial adviser and I don’t know how to fx my car, so I bring it to be serviced by professionals. I don’t feel stupid because I didn’t focus on that and I know nothing about it. It can be scary if you don’t know who you’re going to and unfortunately there are some bad peo ple out there, but if you do your homework to fnd the people to help you, you don’t need to feel ashamed or embarrassed. That’s the whole reason you fnd a professional to begin with — someone who is trained. That’s their job.

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Green Curriculum Workshop Sessions Green Curriculum Learning Outcomes: • To play the role of a fnancial planner for Janella Sims, a 28-year-old female. Create a budget for her, keeping in mind her short-term and long-term goals. • To defne basic investment terms. • To follow the price movements of Apple (AAPL) and the SPDR S&P 500 ETF Trust (SPY). • To understand and be able to explain where their tax dollars go. • To understand and be able to explain living expenses. • To become familiar with various types of careers in fnance. Session Topics and Key Terms: Please write in the day, time and location of each session on the following page. Be sure to add these dates to your phone calendar as well to set reminders. The session schedule is also available in the RTSWS app. VII GREEN STUDENT INTRODUCTION GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM

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GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 Session 1 Welcome to RTSWS Session #1! • Be sure you have a pen, pencil or writing utensil • Grab a snack • Get ready to share your name, grade and favorite emoji Human Scavenger Hunt - BINGO Find another RTSWS student or volunteer who can answer “yes” to a BINGO question on the next page. You must have that person sign their name within the square. The object is to meet as many people as you can and fll a “BINGO!” (A complete line horizontally, vertically or diagonally). You can only use a person once to fll in a square. 1

The Wall Street feld trip is a capstone experience where students are given a rare glimpse into corporate offce settings, the workplaces and work lives of Thefnanciersexperience allows the students to shadow female treasury offcers, wealth managers, entrepreneurscomptrollers,analysts,accountants,andmore.For many of our students, this is their frst glimpse into the world of fnance, opening their eyes to a new world of possibilities.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 12 interviewedHasbeforejobafor bankaHasaccount leftyaIsscootersorBikesorschooltoworkcatsPrefersdogsover isBirthdaymonththis greenHaseyes twinaIspineappleLikespizzaon LeftIsHanded languagecartwheelfishpetaHasCandoaIslearninganotherIsanonlychildbackwardsDletterhandedleftIsNamestartswithCansaythealphabetPlaysateamsportIsatwinmusicalaPlaysinstrument thanmoreHas countryanothersiblings4HasgreeneyesHasvisited orBikesworktoscootersschoolor atobeenHastheinconcertmonthpast monthBirthdaymonththisis withstartsNameletterfirstsamenameyouras bankaHasaccount catsPrefersdogsover howKnowswhistleto theirtouchCantheirtotonguenose theinbornWasasmonthsameyou pineappleLikespizzaon

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 RTSWS COHORT NORMS Our RTSWS cohort norms will help us decide together the expectations for our sessions and the behaviors that will allow us to reach our goals. Norms: The behavioral expectations or rules of the class. Class norms inform us how we are expected to behave towards each other and the materials we use. • Come prepared to be a part of RTSWS with your handbook, a writing utensil and a positive attitude. • Be kind and encourage one another - we are all in this together! • Ask questions, share your opinions and let the volunteers know when you do not understand something. • ________________________________________________________________________________________________________________________________________________________________________ • _________________________________________________________________________________________________________________________________________________________________________ As a cohort, briefy discuss what each norm means and what it looks like in action. 3

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 14 PRE-ASSESSMENT

In to measure your growth and knowledge of fnancial and investment literacy over the course of the next 5 sessions, are going to take a quick pre-assessment to establish your baseline. is not graded just want to see what you already know, as it helps RTSWS better understand students’ prior knowledge. This will not be shown to your school or any teachers. Just do your best! this time, are going to begin the pre-assessment. the pre-assessment, remain silent so that other RTSWS students in your cohort can focus and do their best. are done with the pre-assessment, will indicate you are complete to the volunteers by tilting your laptop screen down OR placing your phone upside down your RTSWS App on your phone or a school computer: or use the QR code below) the button labeled “Take the Pre-Assessment” will have 7 minutes to complete the pre-assessment RTSWS volunteer will let you know when there are 3 minutes remaining and when there is 1 minute remaining. the end of the test,

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GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 5 How do you tell anaccountant to be quiet? You tell them to usetheir invoice LET’S GET Today’sSTARTED!GuidingQuestion: How are expenses, investments and savings considered when planning fnancial goals for myself and when advising others on their own fnancial goals? SESSION #1 AGENDA 1. Welcome 2. Attendance 3. Human Scavenger Hunt - BINGO 4. Pre-Assessment 5. Spending, Saving and Investing Key Terms & Activity 6. Stock Market Introduction 7. Refection: Grows and Glows 8. Reminders for Next Session By the end of today’s session, we will be able to compare savings, expenses and investments. We will be able to understand why saving and investing is important in achieving fnancial goals. Take a peek into the future. Where do you see yourself in 10 years? Using the magic crystal ball seen here, jot down 5 goals you have for your future. (Examples: college, car, family, career, etc.) 1. 2. 4.3. 5.

Setting aside money you do not spend now for emergencies or for a future purchase. Savings refers to the money you have left over from your income after spending needs or expenses have been met. This money is kept in the form of cash or bank deposits. Savings are exposed to no risk, but also come with minimal returns.

KEY TERM: Savings

Using the goals within your crystal ball, consider what the fnancial needs will be in order to meet these Whichgoals.ofthe goals above will require you to SPEND money?

Which of the goals above might you need to start SAVING money for? Provide an estimate of how much money you might need to save for each.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 KEY TERM: Sustainability In order to increase the amount of money you have saved for your fnancial goals, you may choose to grow your savings through investing. Using the space below, write down everything you know about INVESTING. 7

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 Buying assets such as stocks, bonds, mutual funds, or real estate with the expectation that your investment will grow in value. Investments are usually used to achieve long-term goals. KEY TERM: Investing 8

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 Let’s Take a Deeper Look at Investing One common form of investing is purchasing stocks. Stocks are shares (pieces) of ownership in a company. 9

The collection of physical and electronic markets where buyers and sellers can trade shares. It is like a giant, global auction. Most trading happens through stock exchanges

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1

The stock market is the sum of all individual stocks and when an individual stock moves, the market as a whole would also move by a tiny amount. Often, the stock market will move up or down because of larger events going on in a certain country or all around the world.

STOCK MARKET

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 STOCK REVIEW Using Yahoo! Finance (https://fnance.yahoo.com/) complete the following: Company: Apple Ticker: Ticker = A symbol by which stocks are identifed. Tickers are a few letters that distinguish a company’s shares in the stock market. Today’s Stock Price: Date: Up/Down: ( %) 6 Month Trend: x y 11

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 GLOWS AND GROWS GLOWS What went well today? What did you LIKE about today’s session? List three “glows” below: 1 32 GROWS What can be improved on for the next session? What terms or ideas do we need to spend additional time on? List three “grows” below: 1 32 12

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 REMINDERS FOR NEXT SESSION The next RTSWS session is… Date: ___________________________________________ Time: __________________________ Before the next session… NOTES • Set up your own Yahoo! Finance portfolio and watchlist using the instructions on page 14. 13 Don’t forget to check out the bonus section for additional key terms, bonus articles and challenge activities.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 YAHOO! FINANCE INSTRUCTIONS Want to create your own Yahoo! Finance login to begin creating your own watchlist and portfolio of stocks to monitor? My Portfolio - The name for the Yahoo! Finance toolkit that enables you to follow the collected stocks you are interested in tracking. Once you establish stocks to follow through My Portfolio, you will have access to multiple analytics across Yahoo Finance that will aford greater insight into the stocks you’re interested in. Watchlists - Follow Yahoo! Finance-curated watchlists of related companies, specifc markets or industry sectors. Get the Yahoo! Finance app on your smartphone and other mobile devices: INSTRUCTIONS:https://mobile.yahoo.com/fnance 1. Copy this link into your browser or go to Yahoo! Finance through Google search: https://fnance.yahoo.com/ 2. Click “Sign in” 3. Click “Create an Account” 4. Fill out all the required felds, including your frst and last name, username, password, birthday and mobile number. 5. Click “Continue” 6. Enter the 5-digit verifcation code once you have received it. Click “Verify” and then “Continue” 7. Click “Done” 8. You’re all set. When you click “Done,” you’ll navigate back to the Yahoo! Finance homepage where you can access your profle in the top-right corner. www.fnance.yahoo.com 14

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 Add a Stock to Your Portfolio or Watchlist: 1. Click on “My Portfolio,” then “My Watchlist” then “Add Symbol” 2. Enter the tickers of any stocks you want to track (Example: AAPL for Apple) 3. If you don’t know the symbol, type in the company name and Yahoo! Finance will fnd the ticker for you 4. Stocks you select will appear in your watchlist Add To Your Portfolio: Apple (AAPL) SPY - An ETF that tracks the S&P 500 (the 500 largest publicly-traded companies in the U.S.) Any other companies you are interested in tracking? 15

The average single person spends $329 more per year than their take-home pay.

Healthcare spending averages $431 per month.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 BONUS16 SESSION 1 BONUS More on Savings and Spending So what do people spend their money on anyway? American Households’ Average Monthly Expenses: $5,111 https://www.fool.com/the-ascent/research/average-monthly-expenses/UpdatedFeb.22,2022

The average annual income after taxes is $74,949.

Housing is the largest average cost at $1,784 per month, making up 34.9% of typical spending.

Americans spend $610 on food per month, with about two-thirds being spent on groceries and the rest on eating out.

The average household’s monthly expenses are $5,111 ($61,334 per year).

Transportation costs more than many realize ($819 per month), largely due to the intermittent nature of these expenses.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 1 BONUS 17 Where Americans Spend Their Money Here’s a full breakdown of the average spending by category:

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 Welcome to RTSWS Session #2! • Be sure you have a pen, pencil or writing utensil • Grab a snack • Get ready to share your name, grade and a hobby you enjoy outside of school RTSWS COHORT NORMS Let’s review our RTSWS cohort norms. These are the expectations for our RTSWS sessions that we set during session #1. Norms: The behavioral expectations or rules of the class. Class norms inform us how we are expected to behave towards each other and towards the materials we use. • Come prepared to be a part of RTSWS with your handbook, a writing utensil and a positive attitude. • Be kind and encourage one another - we are all in this together! • Ask questions, share your opinions and let the volunteers know when you do not understand something. •• _________________________________________________________________________________________________________________________________________________________________________ 18

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 LET’S GET STARTED! Today’s Guiding Question: Why is a budget important in helping plan for short-term and long-term expenses and goals? SESSION #2 AGENDA: 1. Welcome 2. Attendance 3. Norms 4. Review Agenda 5. Introduction to Budgeting 6. Stock Market Review 7. Project Work Time: Financial Planning for Janella 8. Whole Group Refection 9. Reminders for Next Session By the end of today’s session, we will be able to diferentiate fxed, variable and occasional expenses and understand the key components of budgeting. 19

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 Take a look at the image below. What do you notice? 20

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 An estimation of revenue and expenses over a specifed future period of time. It is a plan that allows individuals, businesses and governments to control their spending to save for future priorities. Personal budgets are extremely useful in managing an individual’s or family’s fnances over both the short-term and long-term. Short-term = ~1 year or less Long-term = ~5-10 years ARTICL KEY TERM: Budget 21

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 Revenue vs Expenses Revenue = Money coming in! Expenses = Money going out! Revenue = Money coming in! The most common form of revenue would be money earned through your income or pay. In order to determine revenue or income that can go onto a budget, we need to understand how to read a paycheck and how much our As a group, you will read through the excerpts from the “How to Read a Paycheck - The Easy Way Review the diferent infographics, be sure to jot down and ask any questions you may have! REVENUE EXPENSES 22

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 Michelle Mire https://blog.wagepoint.com/all-content/how-to-read-a-paycheck-the-easy-way-infographic When entrepreneur and Muppeteer Jim Henson made his frst dollar, he framed it and hung it on his ofce wall. For everyone, whether you’re the company owner or an employee, earning an income is a source of pride and a primary foundation for economic security. Surprisingly, in spite of how important getting paid actually is, most people don’t understand the fundamentals of payroll, including what’s taken out or added to a paycheck. Why is Knowing How to Read a Paycheck So Important? From paying the bills to retaining valued workers, paychecks matter to employers and employees. ARTICLE: How To Read a Paycheck - The Easy Way 23

While there’s no specifc format set in stone, there’s some standard information that’s included no matter how a pay stub is designed. Some of the most basic details include:

Paycheck vs. Pay Stub — Is There a Diference?

• Employer and employee addresses — both of which should be up-to-date and accurate.

• Pay rate — how much the individual is being paid per hour (hourly rate) or per year (annual salary).

• Pay period — the dates that the paycheck covers.

• The pay date — the date the paycheck is issued.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2

What are Some of the Most Basic Details in a Pay Stub?

Yes, there is. A paycheck is a physical check, while a pay stub is a document that summarizes the amounts in a paycheck. As direct deposit is becoming more common, an employee is more likely to receive an email with a link to pay stub details versus a paper check.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 What’s the Diference Between Total Pay (Gross Pay) and Net Pay (Final Pay)? This is really the crux of why a pay stub is provided to employees. Total pay is the amount of the paycheck before any taxes or other deductions are taken out or any contributions are added. Net pay is the fnal amount that the employee takes home. 25

In payroll speak, things like income tax, Medicare, and Social Security are called payroll tax es (employment taxes). Other deductions can include state and local income taxes, employee 401K contributions, insurance payments, proft sharing, union dues, and garnishments. (In Alas ka, New Jersey and Pennsylvania, employees also have deductions for state unemployment insurance).

What Are Deductions and What’s Taken Out of a Paycheck?

The verb deduce means to subtract or take away. Income tax is the deduction that everyone is most familiar with. As part of issuing payroll, employers (businesses) have to take out (withhold) a percentage of each employee’s taxable pay. This is done every time payroll is run.

To contribute means to add. When it comes to payroll, employees aren’t the only ones who have to pay taxes. Employers also contribute to Social Security and Medicare. Plus, they’re also responsible for unemployment insurance on a federal and state level. Other contributions may also include other income, like overtime, tips, bonuses, commissions, expenses or paid time of like sick, personal, or vacation time. All of the income types are considered taxable (subject to income and or payroll taxes like Medicare and Social Security).

Remember wondering who FICA was?

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2

What Are Contributions and What’s Added to a Paycheck?

FICA is actually the Federal Insurance Contributions Act, which is also responsible for two other deductions — Medicare and Social Security.

you

amounts.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2

What’s the Diference Between Total vs Year-to-Date Amounts

in a Paycheck?

Depending on how a pay stub is formatted, may see fgures for total and year-to-date When you see these fgures, the total is the total amount of the paycheck and yearto-day is the total since the start of the fscal year for your payroll.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 Expenses = Money going out! There are many diferent types of expenses. Review the chart below to learn more about fxed expenses, variable expenses and occasional expenses and brainstorm examples for each type. Fixed Expense Expenses that cost the same amount each month. These bills cannot be changed and are usually paid on a regu lar basis (monthly, weekly or yearly). Examples: • Rent • Car payment • Mortgage • _____________________ • _____________________ • _____________________ Variable Expense Expenses that vary from period to period. These bills can be more easily changed or altered depending on use and needs. Examples: • Utilities (water, gas, electric) • Groceries • Automobile gas • _____________________ • _____________________ • _____________________ OccasionalExpense(Periodic) Like fxed expenses, these bills generally cannot be easily changed; but, they do not occur on a regular weekly or monthly basis, making them more challenging to plan for. Examples: • New seasonal clothing • Home maintenance • Car maintenance • _____________________ • _____________________ • _____________________ 28

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 STOCK REVIEW Review last week’s key terms: Stocks: Shares (pieces) of ownership in a company. Stock Market: The collection of physical and electronic markets where buyers and sellers can trade shares. It is like a giant, global auction. The stock market is the sum of all individual stocks and when an individual stock moves, the market as a whole would also move by a tiny amount. Ticker: The symbol by which stocks are identifed. Tickers are a few letters that distinguish a company’s shares in the stock market. 29

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 STOCK MARKET REVIEW & YAHOO! FINANCE Company: Apple Ticker: Ticker = A symbol by which stocks are identifed. Tickers are a few letters that distinguish a company’s shares in the stock market. Today’s Stock Price: Date: Up/Down: ( %) 6 Month Trend: x y 30

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 NEW INVESTMENT KEY TERMS Mutual Fund: A professionally managed fund that pools lots of investors’ money in order to buy a basket of investments. 31

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 ETF (Exchange Traded Fund): A collection of stocks and bonds (or other securities) pooled into a single fund. You can buy and sell shares of ETFs on a stock exchange the same way you buy and sell stocks. Although they are very similar to mutual funds, unlike mutual funds, you can trade ETFs throughout the trading day. 32 KEY TERM: ETF

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREENGREENSTUDENTUKSTUDENT REGISTER USINGTHE RTSWS APP! 33

PROJECT: Financial Planning for Janella Group Members:

The next page shows the information she has provided you. You may use your phones, tablets or laptops to research and decide on the remaining expenses.

•



You have been hired!

Janella Sims, a 28-year-old professional in your city has hired your group as her fnancial advisors. She recently started a new job and needs a budget to match her annual salary.

Using Janella’s pay stub and notes, determine Janella’s monthly take home pay and add it to her monthly budget on page 40.



Using the expenses listed on Janella’s monthly budget, defne each as fxed, variable or occasional.

•

During the fnal RTSWS session, your group will be presenting your proposed budget and recommendations to Janella on her living and spending choices.

With any extra time, begin to fll in Janella’s budget with her monthly expenses.

TIPS: Be aware of the diference between Janella’s wants and her needs. You may not be able to meet all of Janella’s fnancial goals, so pick the ones you think are best and be ready to share why. creative!

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2

• Be

TO DO:

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 • Janella shared with you her most recent pay stub (shown on the following page) • She receives an annual salary of $68,000 and she is paid bi-weekly in the amount of $2,615.38 (68,000 / 26 weeks per year = 26,615.38) Notes from your meeting with Janella: 35

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM stub:PayJanella’s36

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM The Wall Street feld trip is a capstone experience where students are given a rare glimpse into corporate ofce settings, the workplaces and work lives of Thefnanciers.experience allows the students to shadow female treasury ofcers, wealth managers, manyentrepreneurscomptrollers,analysts,accountants,andmore.Forofourstudents,thisis their frst glimpse into the world of fnance, opening their eyes to a new world of possibilities. RTSWS YouWhatCOMINGMENTORSHIPSPRINGSOON!istheSpringMentorship?willbepairedwithamentor that you will work with for all 5 sessions. You will work on resume writing, interview skills, self-advocacy, LinkedIn and skills for university and beyond. You can utilize your mentor to help you talk through university and career options as well! Go to the RTSWS App to Enroll! 37

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 Whole Group Refection: What Surprised You? 38 What surprised you most about what you learned today?

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 REMINDERS FOR NEXT SESSION The next RTSWS session is… Date: ___________________________________________ Time: __________________________ Before the next session… NOTES Ready for more? Check out the following pages for additional key terms, bonus articles and challenge activities. 39

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 240

https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/creating-a-budget

Step 2: Track your spending

Begin by listing your fxed expenses. These are regular monthly bills such as rent or mortgage, utilities and car payments. Next list your variable expenses—those that may change from month to month, such as groceries, gas and entertainment. This is an area where you might fnd opportunities to cut back. Credit card and bank statements are a good place to start since they often itemize or categorize your monthly expenditures. Record your daily spending with anything that’s handy—a pen and paper, an app or your smartphone, or budgeting spreadsheets or templates found online.

The foundation of an efective budget is your net income. That’s your take-home pay— total wages or salary minus deductions for taxes and employer-provided programs such as retirement plans and health insurance. Focusing on your total salary instead of net income could lead to overspending because you’ll think you have more available money than you do. If you’re a freelancer, gig worker, contractor or are self-employed, make sure to keep detailed notes of your contracts and pay in order to help manage irregular income.

Step 3: Set realistic goals

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 BONUS 41 SESSION 2 BONUS More on Budgeting!

6 Simple Steps for Creating Your Own Budget

Step 4: Make a plan

Step 1: Calculate your net income

This is where everything comes together: What you’re actually spending vs. what you want to spend. Use the variable and fxed expenses you compiled to get a sense of what you’ll spend in the coming months. Then compare that to your net income and priorities. Consider setting specifc—and realistic—spending limits for each category of expenses.

Before you start sifting through the information you’ve tracked, make a list of your short- and longterm fnancial goals. Short-term goals should take around one to three years to achieve and might include things like setting up an emergency fund or paying down credit card debt. Long-term goals, such as saving for retirement or your child’s education, may take decades to reach. Remember, your goals don’t have to be set in stone, but identifying them can help motivate you to stick to your budget. For example, it may be easier to cut spending if you know you’re saving for a vacation.

Once you know how much money you have coming in, the next step is to fgure out where it’s going. Tracking and categorizing your expenses can help you determine what you are spending the most money on and where it might be easiest to save.

You might choose to break down your expenses even further, between things you need to have and things you want to have. For instance, if you drive to work every day, gasoline counts as a need. A monthly music subscription, however, may count as a want. This diference becomes important when you’re looking for ways to redirect money to your fnancial goals.

Now that you’ve documented your income and spending, you can make any necessary adjustments so that you don’t overspend and have money to put toward your goals. Look toward your “wants” as the frst area for cuts. Can you skip movie night in favor of a movie at home? If you’ve already adjusted your spending on wants, take a closer look at your spending on monthly payments. On close inspection a “need” may just be a “hard to part with.”

If the numbers still aren’t adding up, look at adjusting your fxed expenses. Could you, for instance, save more by shopping around for a better rate on auto or homeowners insurance? Such decisions come with big trade-ofs, so make sure you carefully weigh your options.

Step 6: Review your budget regularly

Remember, even small savings can add up to a lot of money. You might be surprised at how much extra money you accumulate by making one minor adjustment at a time.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 BONUS

Once your budget is set, it’s important to review it and your spending on a regular basis to be sure you are staying on track. Few elements of your budget are set in stone: You may get a raise, your expenses may change or you may reach a goal and want to plan for a new one. Whatever the reason, get into the habit of regularly checking in with your budget following the steps above.

Step 5: Adjust your spending to stay on budget

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 2 BONUSCreate Your Own Budget! Use the monthly budget template below to create your own personal budget. Fill in your monthly income, savings and expenses to begin to plan for your future fnancial goals! BONUS ACTIVITY 43

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 Welcome to RTSWS Session #3! • Be sure you have a pen, pencil or writing utensil • Grab a snack • Get ready to share your name, grade and leader you look up to RTSWS COHORT NORMS Let’s review our RTSWS cohort norms. These are the expectations for our RTSWS sessions that we set during session #1. Norms: The behavioral expectations or rules of the class. Class norms inform us how we are expected to behave towards each other and towards the materials we use. • Come prepared to be a part of RTSWS with your handbook, a writing utensil and a positive attitude. • Be kind and encourage one another - we are all in this together! • Ask questions, share your opinions and let the volunteers know when you do not understand something. • _________________________________________________________________________________________________________________________________________________________________________ • ____________________________________________________________________________________ 44

Have you ever seen a movie or a cartoon where someone hides their money under their mattress? maybe you’ve heard your grandparents say they used to do this?

While it is a good idea to keep some cash for an emergency, keeping money at home leaves a tremendous risk for theft or loss due to fre or another unexpected disaster. Need an example?! In 2009, one woman replaced her mother’s old mattress, and later learned that it is where she hid her life savings of (estimated $1 million). Here’s another… a man in Moline, Illinois, accidentally donated a suit which had $13,000 in a pocket.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 LET’S GET STARTED! Today’s Guiding Questions: How can both checking accounts and savings accounts afect your fnancial planning and management of your fnancial goals? What are the similarities and diferences between a stock and a bond? SESSION #3 AGENDA: 1. Welcome 2. Attendance 3. Norms 4. Review Agenda 5. Checking Accounts, Savings Accounts and Bonds 6. Stock Market Review 7. Project Work Time: Financial Planning for Janella 8. Whole Group Refection 9. Reminders for Next Session

Hiding money under the mattress stemmed from the Great Depression era when safes were not afordable and there was a deep distrust of fnancial institutions across the world. People trusted themselves and their homes to keep their money safe more than they trusted the bank.

Do people still hide their money under their mattress?

Think About It! What did the overworked asset say to the other asset? I feel so depreciatedunder

Hiding cash is not secure and infation causes spare cash to lose its value over time.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 A general increase in prices and fall in the purchasing value of money. Example: 1920’s milk = 35 cents per gallon vs 2020’s milk = about $4. Brainstorm 3 places you can keep money…instead of under your mattress. Why do people have bank accounts? KEY TERM: Infation 46

While savings accounts generally ofer a small amount of interest, another option for earning interest on your money is to purchase a bond. Bonds may ofer a higher return and tend to be a safe form of investment for money you are saving long-term.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3

Checking Account:

Bond: A low-risk debt investment, similar to an I.O.U., that is issued by companies, governments or states to fund projects. When you purchase a bond, you are lending money to the borrower or “issuer.” In exchange, the issuer pays you a certain amount of interest periodically. When the bond matures (or becomes time to pay), the borrower will pay back the initial investment or the “principal” value of the bond, plus interest.

NEW INVESTMENT KEY TERMS 47

An account ofered by banks and credit unions that is used for money you plan to save long-term. The money in a savings account is insured by the Federal Deposit Insurance Corporation (FDIC) and savings accounts typically ofer a small amount of interest.

A deposit account held at a fnancial institution that allows withdrawals and deposits. With a checking account, you can deposit your paycheck or take out money for short-term spending.

Savings Account:

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 STOCK MARKET REVIEW & YAHOO! FINANCE Investing in the stock market is one of the places people may choose to keep their money! Review last week’s key terms: Mutual Fund: A professionally managed fund that pools lots of investors’ money in order to buy a basket of investments. ETF (Exchange Traded Fund): A collection of stocks and bonds (or other securities) pooled into a single fund. You can buy and sell shares of ETFs on a stock exchange the same way you buy and sell stocks. Although they’re very similar to mutual funds, unlike mutual funds, you can trade ETFs throughout the trading day. 48 STUDENTS! BE SURE TO TAKE THE RTSWS CAREER QUIZ THEN REGISTER ON OUR INTERNSHIP & JOB PORTAL! The RTSWS Internship & Job Portal is THE resource for RTSWS students and alumnae seeking internships and job opportunities in fnance, economics and related felds. www.rockthestreetwallstreet.com/internship-job-portalwww.rockthestreetwallstreet.com/career-quiz

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 STOCK MARKET REVIEW & YAHOO! FINANCE Company: Apple Ticker: Today’s Stock Price: Date: Up/Down: ( %) 1 Month Trend: x y 49

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 S&P 500 (Standard & Poor’s 500 Index)

You

An index that tracks the stock price movements of the 500 largest U.S. publicly- traded companies. The S&P is one of the most watched stock market indexes and is considered one of the most important measures of how the U.S. stock market is performing. can’t invest directly in the S&P itself… but, you can invest in exchange-traded funds (ETFs) that track the S&P. Let’s take a look at an example of an S&P 500 tracking ETF.

NEW INVESTMENT KEY TERM 50

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 SPDR S&P 500 ETF Trust Ticker: Today’s Stock Price: Date: Up/Down: ( %) YTD (Year to Date) Trend: x y SPY 51

During session #5, you and your group will present your budget recommendations for Janella to the cohort. Begin to think about how your group wants to present: poster board, PowerPoint, or just talking through the budget without any props. Next session, your group will be given time to put together and fnalize your presentation Be aware of the diference between Janella’s wants and her needs. You may not be able to meet all of Janella’s fnancial goals, so pick the ones you think are best and be ready to share why. creative!

Continue to fll out Janella’s Monthly Budget document on page 40. If you did not fnish during last week, be sure that all expenses are defned as either fxed, variable or occasional.

TIPS: •

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3

My Group Members:



• Be



Use Janella’s Monthly Budget document to fll in monthly expenses

•

. Use the notes Janella provided to determine the cost per month of each of her expenses. For expenses that Janella did not share the cost of, use Google or another search engine to look up aveage costs in her area.

PROJECT: Financial Planning for Janella (See page 40 for monthly budget document) DO:

Today, you and your group will continue to work on Janella’s budget. As you continue to fll out her monthly budget, you and your group will begin to prepare your recommendations for her fnancial planning.

You and your group will begin to make recommendations for Janella. How much should she budget for her apartment rent? Should she purchase cable tv? How much should she budget for groceries? These are all recommendations you and your group will need to come up with and be prepared to present to Janella.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSIONPROJECT3 WORKSPACE 53

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 GLOWS AND GROWS GLOWS What went well today? What did you LIKE about today’s session? List three “glows” below: 1 32 GROWS What can be improved on for the next session? What terms or ideas do we need to spend additional time on? List three “grows” below: 1 32 54

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 REMINDERS FOR NEXT SESSION The next RTSWS session is… Date: ___________________________________________ Time: __________________________ Before the next session… NOTES 55 Don’t forget to check out the bonus section for additional key terms, bonus articles and challenge activities.

https://www.statefarm.com/simple-insights/retirement/reasons-to-consider-retirement-planning-for-high-school-students

You have a lot to gain by learning how to save money as a teenager.

Reasons to Consider Retirement Planning for High School Students

A plan for setting aside money to be spent after retirement. There are diferent kinds of retirement accounts: 401(k), 403(b), Roth IRA, Traditional IRA

1. I have plenty of time. According to the experts, there’s no such thing as too much time to save for retirement, especially to meet benchmark savings goals. Take one recommendation: Have twice your annual salary saved in a retirement fund by the time you’re 40 — and four times your salary when you’re 50. Start saving earlier and there’ll be less catch-up pressure in your later years .

Not convinced? We dive deeper into four common objections to help you see how retirement savings at 13 and beyond can lead to a wider range of options and improved fnancial security at 65.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 BONUS56 SESSION 3 BONUS Bonus Key Term: Retirement Account

Conventional wisdom says the best time to start saving for retirement is when you frst get a full-time job. The logic of time says something diferent: The longer your retirement savings grow, the more opportunity you have to build wealth. Consider putting time on your side as a teen by opening an IRA. There’s a bonus, too: learning how to save money as a teen can lead to a life-long saving habit.

2. I have other priorities. This is perhaps the trickiest hurdle to navigate when considering retirement savings at a very early age and learning how to save money as a teen. But doing so can help institute a multi-pronged approach to money management. Teens should, of course, save for goals such as a car, and they may also need or want to save for higher education expenses. But even accommodating room for a very small addition to a retirement fund can help focus on a goal mindset.

What do you call a liability without any friends? A loan

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 3 BONUS 57

Here’s an example to consider. If a 15-year-old saves $500 in a Roth IRA for four years, that account (assuming a 7% growth rate) will grow into about $55,000 at retirement age. However, a 25-year-old who saves the same amount will only have about $30,000 at retirement age.

3. I won’t be wealthy as a young person, so it doesn’t matter. That might be true — but building wealth over a lifetime takes years and dedication. Creating a budget, setting goals, living within one’s means and discerning between wants and needs are lifelong fnancial skills. If large amounts seem overwhelming, start small.

4. I don’t know how to do it. Creating a Roth IRA requires a caregiver’s assistance and earned income, even from gigs such as babysitting or lawn mowing. And with a Roth IRA specifcally, you will not owe taxes when you withdraw it for retirement after age 59½.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 Welcome to RTSWS Session #4! • Be sure you have a pen, pencil or writing utensil • Grab a snack • Get ready to share your name, grade and favorite beverage RTSWS COHORT NORMS Let’s review our RTSWS cohort norms. These are the expectations for our RTSWS sessions that we set during session #1. Norms: The behavioral expectations or rules of the class. Class norms inform us how we are expected to behave towards each other and towards the materials we use. • Come prepared to be a part of RTSWS with your handbook, a writing utensil and a positive attitude. • Be kind and encourage one another - we are all in this together! • Ask questions, share your opinions and let the volunteers know when you do not understand something. • ________________________________________________________________________________________________________________________________________________________________________ • ____________________________________________________________________________________ 58

Janella’s younger sister, Julia, recently received some money on her birthday. She wants advice about the best way to have her money work for her. She wants to pick the best way for her to make more money. Her friend told her, “Buy a lottery ticket. It may be a longshot, but you don’t have to spend much and you could become a millionaire.” Her grandmother said, “Hide it in a safe place in the house so you’ll always have it on hand for

Have you ever heard the phrase, “have your money work for you.”

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 LET’S GET STARTED! Today’s Guiding Questions: How does a person’s risk tolerance impact their investment decisions? How are interest rates calculated and what are the diferences between simple interest and compound interest? How does stock market volatility impact investors’ decisions and their investments? SESSION #4 AGENDA: 1. Welcome 2. Attendance 3. Norms 4. Review Agenda 5. What is Risk Tolerance and Why is it Important? 6. Stock Market Review 7. Project Work Time: Financial Planning for Janella 8. Whole Group Refection 9. Reminders for Next Session Think About It!

emergencies.” 59 Think About It! (continued)

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 KEY TERMS Her cousin advised her to, “Buy stock in a technology company. Silicon Valley companies are always in the news.” Janella told her, “Put it in a savings account. It’ll earn compound interest over time, so you’ll have more than what you started with.” 1. Who gave the best advice? Why? 2. Who gave the riskiest advice? Why? Let’s discuss a few new key terms and determine how they may impact Julia’s decision for having her money work for her. Investment Risk: The chance of losing all or part of the value of an investment. Risk Tolerance: The amount of risk that an investor is comfortable taking or the degree of uncertainty that an investor is able to handle. An individuals’ risk tolerance is based on a number of factors including age, fnancial stability and amount of time before invested funds are needed for other purposes. 60

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 Interest: The cost of borrowing money. In other words, you are paying a certain amount for the use of borrowing money. Interest is expressed as a rate, such as 3%. When you lend or invest money, a higher interest rate is better because it means you earn more. When you borrow money, a lower interest rate is better because it means you pay less. Simple Interest

Example: If you borrow $1,000 (Principal) with 10% interest annually, the interest owed will be $100 ($1,000 x 10% or .10 = $100). If you’ve paid nothing on the loan after one year you will owe $1,100.

61 KEY TERMS

A set rate on the original amount lent to the borrower. The borrower will have to pay this interest.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 SIMPLE INTEREST PRACTICE PROBLEM Find the simple interest and the total amount owed after 2 years. Principal = $2,100 Annual rate of interest = 11% Interest per year = ____________ Total interest (2 years) = ________________ Total amount owed after 2 years = ______________ Compound Interest Interest on both the principal (starting amount) and the interest paid on that loan. Example: If you borrow $1,000 (principal) with 10% interest compounded annually, you’d have $100 ($1,000 x 10% or .10 = $100) in interest in the 1st year. If you’ve paid nothing after 1 year, you will owe $1,100. But, after the 2nd year you will owe $1,210 ($1,210 = $1,100 x 0.10 or 10%) because now you have to pay 10% of $1,100 instead of just the principal of $1,100. COMPOUND INTEREST PRACTICE PROBLEM Find the compound interest and the total amount owed back after two years. Principal = $2,100 Annual rate of interest = 11% Interest in 1st year = ____________ Total amount after 1st year = Total interest in 2nd year = ________________ Total amount owed after 2 years = ______________ In which example, simple interest or compound interest do you owe more? 62

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM Gender Wage Gap Articles Equity Equity CornerEquity Corner Rock The Street, Wall Street strongly believes in the importance of closing the gender and racial gap in the . Understanding and acknowledging the Take some time to read through these articles we recommend on the gender pay gap, the racial wealth gap and the importance you to educate yourself and take steps towards solving this problem! still www.nytimes.com/2021/03/24/us/equal-pay-day-explainer.html 9 Strategies For Narrowing The Gender Pay Gap In 2021. www.moneyunder30.com/strategies-for-narrowing-the-gender-pay-gap Racial Wealth Gap Articles General/Extra GREEN STUDENT SESSION 4 63

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 INDIVIDUAL STOCK REVIEW Company: Apple Ticker: Today’s Stock Price: Date: Up/Down: ( %) 12 Month Trend: x y STOCK MARKET REVIEW & YAHOO! FINANCE Review last week’s key terms: S&P 500 (Standard & Poor’s 500 Index) An index that tracks the stock price movements of the 500 largest U.S. publicly-traded companies. The S&P is one of the most watched stock market indexes and is considered one of the most important measures of how the U.S. stock market is performing. 64

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 SPDR S&P 500 ETF Trust Company: SPY Today’s Stock Price: Date: Up/Down: ( %) 12 Month Trend: x y 65

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM SCAN THE QR CODE TO JOIN!

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 In discussing how the stock market is performing, we might describe how volatile the market is… Stock Market Volatility The frequency and magnitude of stock price movements or whole market movements, up or down. The bigger and more frequent the price swings, the more volatile the market is said to be. NEW INVESTMENT KEY TERMS 67

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 PROJECT: Financial Planning for Janella My Group Members: TO DO:  FINALIZE Janella’s Monthly Budget document on page 40. Use the notes Janella provided to determine the cost per month of each of her expenses. For expenses that Janella did not share the cost of, you can use Google or another search engine to look up average costs in her area.  FINALIZE your fnancial recommendations for Janella. Use the Financial Planning Presentation Chart on the next page to start putting together your presentation for next session.  During the next session, you and your group will present your budget recommendations for Janella to the cohort. PLAN and ORGANIZE how you will present to the group. You may choose to make a poster, PowerPoint or just prepare to talk through the budget without a visual aid.  Extra Time? Review the article “Risk Tolerance, Risk Capacity, and Risk Alignment: How to Take On The Right Level of Risk” By Marguerita M. Cheng on page 73. Today, you and your group will fnalize your decisions for Janella’s budget and prepare to present your recommendations for her fnancial planning. 68

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 69 Group Members: What are Janella’s main sources of income? What were the main decisions your group made in regards to Janella’s budget? What are Janella’s largest expenses? Were there any expenses Janella has that you are recommending she cut out? What was the hardest part of completing Janella’s budget? What do you believe is the most important recommendation that you will present to Janella today? Other presentation pieces? Financial Planning Presentation Chart: Why is money called dough? Because we all knead it.

GREEN STUDENT SESSION 4 WHOLE GROUP REFLECTION What is something new that you learned today? REMINDERS FOR NEXT SESSION The next RTSWS session is… Date: ___________________________________________ Time: __________________________ Before the next session… 70 COMING SOON: RTSWS FIELD TRIP

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 71 DON’T FORGET TO STUDY THE KEY GLOSSARYTERMS ON THE UPCOMING PAGES REMINDER! One top score from each cohort will receive a $25 gift card prize! POST-ASSESSMENT NEXT SESSION Check out the bonus section in the following pages for additional key terms, bonus articles and challenge activities.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 BONUS72 SESSION 4 BONUS Bonus Key Term: Bull Market A market condition where stock prices are continually rising. Bull markets are characterized by optimism and excitement from traders and investors. Bear Market A market in which prices continually fall. Bear markets are times when the outlook seems bleak for a company, an industry, or the overall economy. Traders and investors are less willing to buy stocks, and many are looking to sell. This causes prices to fall. Bull Market • Rising Market • Positive Investor Response • Strong Economy • Low Unemployment • High Stock Prices • High Consumer Spending • High Profts Bear Market • Declining Market • Negative Investor Response • Weak Economy • High Unemployment • Low Stock Price • Less Consumer Spending • Low Profts More on Risk Tolerance: Risk Tolerance Quiz Learn more about your own investment risk tolerance with The Motley Fool’s Risk Tolerance Quiz: Find the quiz (dated May 21, 2017) via Google search for “motley fool risk tolerance quiz.” https://www.fool.com/retirement/2017/05/21/whats-your-investment-style-take-this-risk-toleran.aspx

In such situations, investors tend to make bad decisions, informed by the present uncertainty rather than by their fnancial plan.

The development of the Modern Portfolio Theory (MPT) was a great reminder of the importance of risk in investing. While returns are important, every level of return comes with a level of risk. Consequently, to minimize risk, you must construct a diversifed portfolio of assets. By creating your portfolios with negatively correlated assets, you are not exposed to all the unsystematic risk of a single asset. The MPT shows us that a diversifed portfolio’s risk is less than the risk of a single asset in that portfolio. However, once you decide to diversify your investments across a range of asset classes (stocks, bonds, real estate, for example), you must choose an asset allocation formula. Should you invest 50% in stocks and the remaining 50% in bonds and real estate? Should it be 80% in stocks or 80% in bonds and real estate? Stocks produce higher returns with higher risks, but bonds produce lower returns with lower risks. Real estate is closer to stocks in the risk-return dynamics. Closer to bonds are other fxed-income securities like certifcates of deposit. How then should you compose your diversifed portfolio?

To decide, you need to understand your risk tolerance and risk capacity.

Risk tolerance is a measure of how much risk you are willing to take on. Generally, there are three types of investors: conservative, moderate, and aggressive. The level of risk tolerance increases as you move from conservative to aggressive.

By Marguerita M Cheng, The Street (April 2021)

Factors like age, income, fnancial goals, and psychological and emotional conditions infuence your risk tolerance. For example, a 60-year-old closer to retirement is generally more conservative than a

https://www.thestreet.com/retirement-daily/your-money/risk-tolerance-risk-capacity-and-risk-alignment-how-to-take-onthe-right-level-of-risk

When uncertain economic situations arise, such as the COVID-19 pandemic, they send fear into investors’ hearts, especially those close to or who are in retirement. The risk of losing their money stares them in the face, and they wonder what the right step to take is.

Benjamin Graham, the father of value investing, said, “Individuals who cannot master their emotions are ill-suited to proft from the investment process.” Charlie Munger, vice chairman of Berkshire Hathaway, puts it this way: “A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. You need to keep raw, irrational emotion under control.”

Risk Tolerance, Risk Capacity, and Risk Alignment: How to Take On The Right Level of Risk

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 BONUS 73

Risk Tolerance

Diversifcation, Investment Portfolio and Risk

One way to avoid such situations is for investors to defne their risk profle and construct their fnancial plans according to their risk profle. To do this, they need to understand risk tolerance, risk capacity and how to achieve risk alignment.

An individual with a stable job in a stable industry earning $100,000 may be a moderate or aggressive investor. In contrast, an individual with unstable income in an unstable industry earning $50,000 will be, generally speaking, more conservative.

However, the level of risk you are willing to take is not the same thing as the level of risk you should take. Risk capacity is the measure of the latter. It’s an objective determination of the level of risk you should be taking in your portfolio to achieve your fnancial goals.

Risk Capacity

The rate of return you need to achieve your retirement goals will then determine the level of risk you should take in your portfolio. That is your risk capacity—the objective level of risk you should take.

Comparing Risk Tolerance with Risk Capacity

So, what should determine your asset allocation formula? Risk tolerance or risk capacity?

The problem is that for many people, risk tolerance and risk capacity don’t align. Some people have low risk tolerance but high risk capacity and vice versa. There are four possible situations when comparing risk tolerance and risk capacity:

To determine your risk capacity, frst consider how much income you will need at retirement.

Low-risk tolerance and low-risk capacity: These are investors who don’t want to take on much risk and don’t need to. A good example is a retiree with a generous pension and Social Security beneft and, therefore, does not need as much rate of return as someone without a pension or Social Security beneft.

Factors like timeframe/time horizon, cash fow, income requirements, debt, insurance, and liquidity will determine your risk capacity.

25-year-old who just entered the workplace.

If you are already retired, you need to consider how much you have in retirement savings, retirement income, the withdrawal rate, and how long you expect to continue making those withdrawals. The above data will give you the rate of return you need, which will determine your risk capacity.

Many fnancial advisors have defned risk tolerance as the amount of risk you can take and still sleep at night. How much risk are you comfortable with? What level of risk won’t keep you awake at night while refreshing your portfolio dashboard?

However, we must stress that there are emotional and psychological factors that also infuence risk tolerance. Some people are naturally risk-averse, while others are risk-seeking. Consequently, the person with the $50,000 job in our example may like to take on more risk than someone with a $100,000 income if the former is normally risk-seeking.

Third, evaluate your current income levels and savings rate (what percentage of your income you are saving).

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A couple who wants to pay for their children’s college tuition in two years will be more conservative than a couple who is not planning to have a child in the next seven years.

Fourth, identify the money you currently have in retirement savings.

The point of the above is that risk tolerance is subjective. While there are factors that inform it (age, income, fnancial goals), they are not determinative given the role of emotion and psychology.

With the aforementioned information, you can determine the rate of return you need to earn on your savings to meet your retirement income goals. Your fnancial advisor can help you with the calculations, or you can use a retirement calculator.

Secondly, determine how many years you have until retirement (based on your preferred retirement age).

Risk Alignment

In situation 3 (low risk tolerance and high risk capacity), the investors can consider how important it is to have quality of life and enjoy retirement.

Once you overcome the emotional reactions to present economic realities and embrace a sound fnancial plan, you will be on the way to achieving your fnancial goals.

Low risk tolerance and high risk capacity: Some investors don’t like much risk, but they actually have to assume risk. For example, some people start their retirement savings very late, and they need a higher rate of returns to meet their retirement goals—high risk capacity. However, the fear of losing their money and the absence of pension make them unwilling to take on that level of risk (low risk tolerance).

Consequently, they have a low risk capacity. If they are also unwilling to take more risk than they need to, they also have low risk tolerance.

Conclusion Aligning your risk tolerance and risk capacity will help you stay sane and confdent even in uncertain economic situations. Instead of acting on emotions, you will be acting in line with your risk tolerance and capacity, and according to the fnancial plan created because of them.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 4 BONUS 75

In situation 3 (low risk tolerance and high risk capacity), the workers who started retirement savings late can reduce their retirement income goals so that the needed rate of return is lower and low risk tolerance can align with low risk capacity.

High risk tolerance and low risk capacity: These are investors who want to take on high risk but should not. For example, a married accountant may enjoy the excitement of investing in the stock market (purchasing individual stocks)—high risk tolerance—but needs to pay cash for a child’s college in two years.

The goal of every investor is to have such risk alignment, where risk tolerance equals risk capacity. However, there are many people in the second and third situations. In those situations, to achieve risk alignment, one of two things have to happen:

High risk tolerance and high risk capacity: Some workers who started their retirement savings late (and, therefore, need a higher rate of return)—high risk capacity—are also willing to take on the risk required to meet their retirement goals.

Change in risk capacity: In situation 2 above (high risk tolerance and low risk capacity), the married accountant can aim for a more expensive college, so the rate of return needed on college savings is higher—meaning a higher risk is needed. The attorney who needs only 7% returns to retire can set a higher retirement goal to achieve higher risk capacity and align risk tolerance.

Change in risk tolerance: The other option is to change risk tolerance. In situation 2 (high risk tolerance and low risk capacity), the accountant can reduce their risk tolerance by considering what would happen if they lost their child’s college savings in search of higher returns. The mother who wants to be an investor in the next Amazon can consider that 45% of new businesses fail within the frst fve years.

Another example is a lawyer nearing retirement who only needs 7% returns to achieve their retirement goals but is interested in buying the stocks of some companies with good potential. She does not need to take much risk to meet her goals (low risk capacity), but her sense of adventure (and a desire to be invested in the next Amazon) is driving her to take on more risks (high risk tolerance).

Risk alignment occurs when your risk capacity and risk tolerance are the same. In the examples above, there is risk alignment in the frst (low risk tolerance and capacity) and fourth situation (high risk tolerance and risk capacity).

Short-term = ~1 year or less Long-term = ~5-10 years Fixed Expense Expenses that cost the same amount each month. These bills cannot be changed and are usually paid on a regular basis (monthly, weekly, or yearly).

76 KEY TERMS GLOSSARY

Savings

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT KEY TERMS GLOSSARY

Buying assets such as stocks, bonds, mutual funds, or real estate with the expectation that your investment will make money for you. Investments are usually used to achieve long-term goals. Stocks Stocks are shares (pieces) of ownership in a company. Stock Market

The collection of physical and electronic markets where buyers and sellers can trade shares. It is like a giant, global auction. Most trading happens through stock exchanges. The stock market is the sum of all individual stocks and when an individual stock moves, the market as a whole would also move by a tiny amount. Ticker A symbol by which stocks are identifed. Tickers are a few letters that distinguish a company’s shares in the stock market. Budget An estiation of revenue and expenses over a specifed future period of time. It is a plan that allows individuals, businesses, and governments to control their spending to save for future priorities. Personal budgets are extremely useful in managing an individual’s or family’s fnanc es over both the short-term and long-term.

A collection of stocks and bonds (or other securities) pooled into a single fund. You can buy and sell shares of ETFs on a stock exchange the same way you buy and sell stocks. Although they’re very similar to mutual funds, unlike mutual funds, you can trade ETFs throughout the trading day.

Infation

A professionally managed fund that pools lots of investors’ money in order to buy a basket of investments.

Investment Risk

Like fxed expenses, these bills generally cannot be easily changed; but, they do not occur on a regular weekly or monthly basis, making them more challenging to plan for.

Interest

Risk Tolerance

The amount of risk that an investor is comfortable taking or the degree of uncertainty that an investor is able to handle. An individuals’ risk tolerance is based on a number of factors includ ing age, fnancial stability, and amount of time before invested funds are needed for other purposes.

The cost of borrowing money. In other words, you are paying a certain amount for the use of borrowing money. Interest is expressed as a rate, such as 3%. When you lend or invest money, a higher interest rate is better because it means you earn more. When you borrow money, a lower interest rate is better because it means you pay less. Simple interest is a set rate on the original amount lent to the borrower. The borrower will have to pay this interest.

A general increase in prices and fall in the purchasing value of money.

Compound Interest

The chance of losing all or part of the value of an investment.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT KEY TERMS GLOSSARY

Interest on both the principle (starting amount) and the interest paid on that loan.

Mutual Fund

ETF (Exchange Traded Fund)

Occasional (Periodic) Expense

Variable Expense Expenses that vary from period to period. These bills can be more easily changed or altered depending on use and needs.

A deposit account held at a fnancial institution that allows withdrawals and deposits. With a checking account, you can deposit your paycheck or take out money for short-term spending.

Checking Account

Savings Account

Stock Market Volatility

S&P 500 (Standard & Poor’s 500 Index)

An index that tracks the stock price movements of the 500 largest U.S. publicly traded compa nies. The S&P is one of the most watched and most important stock market indexes and is considered the single most important measure of how the U.S. stock market is performing.

Mortgage A type of loan you can use to buy or refnance a home. Mortgages are also referred to as “mortgage loans.” Mortgages are a way to buy a home without having all the cash upfront. When you get a mortgage, your lender gives you a set amount of money to buy the home. You agree to pay back your loan – with interest – over a period of several years. You don’t fully own the home until the mortgage is fully paid of. 78

Bond A low-risk debt investment, similar to an I.O.U., that is issued by companies, governments or states to fund projects. When you purchase a bond, you are lending money to the borrower or “issuer.” In exchange, the issuer pays you a certain amount of interest periodically. When the bond matures (or becomes time to pay), the borrower will pay back the initial investment or the “principal” value of the bond.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT KEY TERMS GLOSSARY

An account ofered by banks and credit unions that is used for money you plan to save longer term. The money in a savings account is insured by the Federal Deposit Insurance Corporation (FDIC) and savings accounts typically ofer a small amount of interest.

The frequency and magnitude of stock price movements or whole market movements, up or down. The bigger and more frequent the price swings, the more volatile the market is said to be.

Loan Money, property, or other material goods given to another party in exchange for future repay ment of the loan value or principal amount, along with interest or fnance charges. Examples: Mortgage, car loan, home renovation and/or starting a business.

Debt An amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not aford under normal circumstances.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM 79THEwww.rtsws.myshopify.comOFFICIALROCKTHESTREET,WALLSTREETSHOP! Meredith Jones, ESG Leader RTSWS Board Member

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5 Welcome to RTSWS Session #5! • Be sure you have a pen, pencil or writing utensil • Grab a snack • Get ready to share your name, grade and if you could choose anywhere in the world to live where it would be RTSWS COHORT NORMS Let’s review our RTSWS cohort norms. These are the expectations for our RTSWS sessions that we set during session #1. Norms: The behavioral expectations or rules of the class. Class norms inform us how we are expected to behave towards each other and towards the materials we use. • Come prepared to be a part of RTSWS with your handbook, a writing utensil and a positive attitude. • Be kind and encourage one another - we are all in this together! • Ask questions, share your opinions and let the volunteers know when you do not understand something. • ________________________________________________________________________________________________________________________________________________________________________ • ________________________________________________________________________________________________________________________________________________________________________ 80

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5 LET’S GET STARTED! Today’s Guiding Questions: How should Janella’s wants and needs be factored into her budget? How can having and using a budget help a person or a household control their spending and achieve their fnancial goals? SESSION #5 AGENDA: 1. Welcome 2. Attendance 3. Norms 4. Review Agenda 5. Stock Market Review 6. Financial Literacy Key Terms 7. Post-Assessment 8. Group Presentation Prep Time 9. 10.PresentationsWholeGroup Refection 11. Field Trip & Spring Mentorship Reminders STOCK MARKET REVIEW & YAHOO! FINANCE Review last week’s investment key term: Stock Market Volatility The frequency and magnitude of stock price movements or whole market movements, up or down. The bigger and more frequent the price swings, the more volatile the market is said to be. How might current world events be afecting stock market volatility today? 81 Why did the tightrope walker go to the bank? To check his balance.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5 INDIVIDUAL STOCK REVIEW Company: Apple Ticker: Today’s Stock Price: Date: Up/Down: ( %) 12 Month Trend: x y 82

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5 SPDR S&P 500 ETF Trust Company: SPY Today’s Stock Price: Date: Up/Down: ( %) 12 Month Trend: x y 83

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5

FINANCIAL LITERACY KEY TERMS 84

Examples: Mortgage, car loan, home renovation, starting a business Debt

Loan Money, property or other material goods given to another party in exchange for future repayment of the loan value or principal amount, along with interest or fnance charges.

It’s important to note that the period of years you have to pay back your mortgage will afect your monthly payment and how much interest you will pay in total. For example, a 15-year mortgage will have a higher monthly payment than a 30-year mortgage, but with a 15-year mortgage you will pay less interest since you are paying of your loan in a shorter amount of time.

An amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not aford under normal circumstances.

Mortgage A type of loan you can use to buy or refnance a home. Mortgages are also referred to as “mortgage loans.”

Mortgages are a way to buy a home without having all the cash upfront. When you get a mortgage, your lender gives you a set amount of money to buy the home. You agree to pay back your loan – with interest –over a period of several years. You don’t fully own the home until the mortgage is fully paid of.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM DO YOU HAVE A STUDENT STORY YOU WANT TO TELL? Tell us about the impact Rock The Street, Wall Street has had on you and you could be featured on our website and social media! Email your story with your name, school, and grade along with a picture of yourself to: programs2@rockthestreetwallstreet.com

During the post-assessment, please remain silent so that other RTSWS students in your cohort can focus and do their best. When you are done with the post-assessment, you will indicate you’re complete to the volunteers by tilting your laptop screen down OR placing your phone upside down

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5

2. Click on the button labeled “Take the Pre-Assessment” You will have 7 minutes to complete the post-assessment. A RTSWS volunteer will let you know when there are 3 minutes remaining and when there is 1 minute remaining. At the end of the test, click “Submit

This is not graded. We just want to know how much your fnancial and investment literacy has grown during RTSWS. This will not be shown to your school or any teachers. Just do your best!

In order to measure your growth and knowledge of fnancial and investment literacy from the RTSWS sessions, we are going to take a quick post-assessment to see how much you’ve learned!

1. Login to your RTSWS App on your phone or a school computer.

POST-ASSESSMENT 86

At this time, we are going to begin the post-assessment.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5 87 GROUP PRESENTATION PREP TIME Group Members: What are Janella’s main sources of income? What were the main decisions your group made in regards to Janella’s budget? What are Janella’s largest expenses? Were there any expenses Janella has that you are recommending she cut out? What was the hardest part of completing Janella’s budget? What do you believe is the most important recommendation that you will present to Janella today? Other presentation pieces? 1. Move back into your fnancial planning groups 2. Use the presentation chart below to summarize your budget and recommendations for Janella. 3. Finally, decide as a group who will present which pieces of the budget and fnancial recommendations. 4. Prepare to present to your RTSWS cohort for 3-5 minutes. Each group member should be assigned a diferent section to present. Financial Planning Presentation Chart:

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 588 Directions decisionsbudgetgroup’sotherofnotemakepresenting,aregroupsotherWhile: compareand decisions.group’syourtothem

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5 89 WHOLE GROUP REFLECTION From listening to the presentations today, what do you think is the most important piece of a budget? REMINDERS FOR FIELD TRIP The RTSWS FIELD TRIP is… Date: ___________________________________________ Time: __________________________ What do I need to turn in or do ahead of the trip? Be sure to turn in your permission slip! RTSWS SPRING MENTORSHIP COMING SOON! What is the Spring Mentorship? You will be paired with a mentor that you will work with for all 5 sessions. You will work on resume writing, interview skills, self-advocacy, LinkedIn and skills for college and beyond. You can utilize your mentor to help you talk through college and career options as well! How do you enroll for RTSWS Spring Mentorship? Go to the RTSWS app to sign up! Login to your RTSWS app and click “Enroll for Spring Mentorship.”

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You might have heard someone reminisce about how cheap gas prices (or some other product or service) used to be back in the day. This is because infation erodes the value of money as years go by. Maybe you’ve been keeping your money stufed under your mattress or in a savings account — those are options — but a better way to save for longer-term goals is to invest. By investing, you can better combat infation, increasing your chances of being able to aford the same amount of goods and services in the future that you can today.

The biggest misconception about investing is that it’s reserved for the rich. That might’ve been true to some extent 10 years ago. But that barrier to entry is gone today, knocked down by companies and services that have made it their mission to make investment options available for everyone, including beginners and those who have just small amounts of money to put to work. In fact, with so many investments now available to beginners, there’s no excuse to skip out. And that’s good news, because investing is a great way to grow your wealth. Why is investing important?

“InvestmentsARTICLEforBeginners” by Arielle O’Shea, NerdWallet (May 21, www.nerdwallet.com/article/investing/investments-for-beginners2019)

Investing helps you make your money work for you because of compounding. Compound earnings means that any returns you earn are reinvested to earn additional returns. And the earlier you start investing, the more beneft you gain from compounding.

Getting started - Before you jump in, there are some things to think about. Your goals and time horizon Consider what goal you are wanting to achieve by investing and your time horizon, the length of time you have to invest before reaching that goal. If the time horizon to your goal is short, investing might not be the best solution for you. Check out our article on how to invest for short-term or long-term goals.

You can contribute up to $19,500 to a 401(k) in 2020 (or $26,000 if you’re 50 or older), but that doesn’t mean you have to contribute that much. The beauty of a 401(k) is that there typically isn’t an investment minimum. That means you can start with as little as 1% of each paycheck, though it’s a good idea to aim for contributing at least as much as your employer match. For example, a common matching arrangement is 50% of the frst 6% of your salary you contribute. To capture the full match in that scenario, you would have to contribute 6% of your salary each year. But you can work your way up to that over time. When you elect to contribute to a 401(k), the money will go directly from your paycheck into the account without ever making it to your bank. Most 401(k) contributions are made pretax. Some 401(k) s today will place your funds by default in a target-date fund — more on those below — but you may have other choices. Here’s how to invest in your 401(k). To sign up for your 401(k) or learn more about your specifc plan, contact your HR department.

If you have a 401(k) or another retirement plan at work, it’s very likely the frst place you should put your money — especially if your company matches a portion of your contributions. That match is free money and a guaranteed return on your investment.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM GREEN STUDENT SESSION 5 BONUS 91 Risk tolerance and diversifcation All investments have some level of risk and the market is volatile, it moves up and down over time. It’s important for you to understand your personal risk tolerance. This means gauging how comfortable you are with risk or how much volatility you can handle. When investing, a good rule of thumb is not to put all of your eggs in one basket. Instead, diversify. By spreading your dollars across various investments, you can reduce investment risk. This is why the investments we outline below use mutual funds or exchange-traded funds for the most part, which allows investors to purchase baskets of securities instead of individual stocks and bonds. 6 ideal investments for beginners Here are six investments that are well-suited for beginner investors: • 401(k) or employer retirement plan • A robo-advisor • Target-date mutual fund • Index funds • Exchange-traded funds (ETFs) • Investment apps 1. A 401(k) or other employer retirement plan

4. Index funds Index funds are like mutual funds on autopilot: Rather than employing a professional manager to build and maintain the fund’s portfolio of investments, index funds track a market index.

They’re a great way for beginners to get started investing because they often require very little money and they do most of the work for you. That’s not to say you shouldn’t keep eyes on your account — this is your money; you never want to be completely hands-of — but a robo-advisor will do the heavy lifting. And if you’re interested in learning how to invest, but you need a little help getting up to speed, robo-advisors can help there, too. It’s useful to see how the service constructs a portfolio and what investments are used. Some services also ofer educational content and tools, and a few even allow you to customize your portfolio to a degree if you wish to experiment a bit in the future.

Over time, it will slowly shift some of your money toward bonds, following the general guideline that you want to take a bit less risk as you approach retirement.

Let’s back up a little and explain what a mutual fund is: essentially, a basket of investments. Investors buy a share in the fund and in doing so, they invest in all of the fund’s holdings with one transaction.

An S&P 500 index fund would aim to mirror the performance of the S&P 500, buying the stocks in that index.

Maybe you’re on this page to eat your peas, so to speak: You know you’re supposed to invest, you’ve managed to scrape together a little bit of money to do so, but you would really rather wash your hands of the whole situation. There’s good news: You largely can, thanks to robo-advisors. These services manage your investments for you using computer algorithms. Due to low overhead, they charge low fees relative to human investment managers — a robo-advisor typically costs 0.25% to 0.50% of your account balance per year, and many allow you to open an account with no minimum.

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These are kind of like the robo-advisor of yore, though they’re still widely used and incredibly popular, especially in employer retirement plans. Target-date mutual funds are retirement investments that automatically invest with your estimated retirement year in mind.

A professional manager typically chooses how the fund is invested, but there will be some kind of gen eral theme: For example, a U.S. equity mutual fund will invest in U.S. stocks (also called equities).

3. Target-date mutual funds

2. A robo-advisor

A target-date mutual fund often holds a mix of stocks and bonds. If you plan to retire in 30 years, you could choose a target-date fund with 2050 in the name. That fund will initially hold mostly stocks since your retirement date is far away, and stock returns tend to be higher over the long term.

A market index is a selection of investments that represent a portion of the market. For example, the S&P 500 is a market index that holds the stocks of roughly 500 of the largest companies in the U.S.

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6. Investment apps

Index funds can have minimum investment requirements, but some brokerage frms, including Fidelity and Charles Schwab, ofer a selection of index funds with no minimum. That means you can begin investing in an index fund for less than $100.

Several investing apps target beginner investors.

One is Acorns, which rounds up your purchases on linked debit or credit cards and invests the change in a diversifed portfolio of ETFs. On that end, it works like a robo-advisor, managing that portfolio for you. There is no minimum to open an Acorns account, and the service will start investing for you once you’ve accumulated at least $5 in round-ups. You can also make lump-sum deposits.

Because ETFs are traded like a stock, brokers used to charge a commission to buy or sell them.

Because index funds take a passive approach to investing by tracking a market index rather than using professional portfolio management, they tend to carry lower expense ratios — a fee charged based on the amount you have invested — than mutual funds. But like mutual funds, investors in index funds are buying a chunk of the market in one transaction.

The good news: Most brokers, including the ones on this list of the best ETF brokers, have dropped trading costs to $0 for ETFs. If you plan to regularly invest in an ETF — as many investors do, by making automatic investments each month or week — you should choose a commission-free ETF so you aren’t paying a commission each time. (Here’s some background about commissions and other investment fees.)

Another app option is Stash, which helps teach beginner investors how to build their own portfolios out of ETFs and individual stocks. Stash carries just a $5 account minimum and has a similar fee structure to Acorns, though balances that top $5,000 are charged 0.25% of that balance per year, rather than the fat fee.

Acorns charges $1 a month for a standard investment account and $2 a month for an individual retire ment account. Our unsolicited advice: Max out that IRA account before you start using the standard investment account — there are tax perks to the IRA that you don’t want to miss. (Learn more about IRAs here.)

5. Exchange-traded funds (ETFs) ETFs operate in many of the same ways as index funds: They typically track a market index and take a passive approach to investing. They also tend to have lower fees than mutual funds. Just like an index fund, you can buy an ETF that tracks a market index like the S&P 500.

The main diference between ETFs and index funds is that rather than carrying a minimum investment, ETFs are traded throughout the day and investors buy them for a share price, which like a stock price, can fuctuate. That share price is essentially the ETF’s investment minimum, and depending on the fund, it can range from under $100 to $300 or more.

Finance majors learn about a variety of investment vehicles, and this knowledge can help fnancial planners to advise clients about how to manage their fnances. Finance majors can decipher trends in the securities markets and apply this perspective to their planning sessions.

3. Investor Relations Associate Finance majors with strong writing, organizational, and communication skills can thrive in this role. Investor relations professionals prepare and present fnancial information about their company or corporate clients to investors, analysts, and business media. Investor relations professionals must digest, interpret, highlight, and present information from fnancial statements. The analytical and software tools developed through their fnance major training facilitate this process.

Therefore, fnance majors with strong interpersonal skills and persuasive abilities will be most likely to succeed in this profession.

2. Financial Analyst Financial analysts research stocks, bonds, companies, and industries to assist bankers, investors, and corporate fnance ofcers with mergers, acquisitions, and stock/bond oferings, as well as corporate expansions and restructuring. They can capitalize on their fnance major training as they dissect fnancial statements and other fnancial data.

1. Financial Planner

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Financial planners must crunch numbers and apply principles of accounting in order to devise plans suitable for individual investors. They also need to inspire trust in people and promote their services.

Salary and Employment Outlook: According to the Bureau of Labor Statistics (BLS), personal fnan cial advisors earned an average of $90,640 in May 2017 and jobs are predicted to expand at a much faster than average rate of 15% through 2026.

ARTICLE

Salary and Employment Outlook: According to the BLS, fnancial analysts earned an average of $84,300 in May 2017 and jobs are predicted to grow at a faster than average rate of 11% through 2026.

Financial analysts build fnancial models and conduct complex quantitative analyses. Financial ana lysts also produce reports detailing their fndings and present their analyses to other members of the banking or fnance team.

Best Jobs for Graduates with a Finance Degree by Mike Profta, The Balance (Apr. 5, https://www.thebalancecareers.com/top-jobs-for-fnance-2019)majors-2064048

“Best Jobs for Graduates With a Finance Degree” by Mike Profta, The Balance retrieved from: https:// Studentswww.thebalancecareers.com/top-jobs-for-fnance-majors-2064048offnancedevelopanumberofaccountancyskillsasthey learn to analyze business prob lems with precision and attention to detail, which prepares them for the world of accounting. Just like accountants, fnance majors learn to present fnancial information to clients and colleagues by using charts, graphs, and other visual aids. Entry level accounting jobs can be gateway jobs leading to corporate fnancial management positions, or leadership positions with non-profts and government agencies.

Salary and Employment Outlook: According to Payscale, investor relations associates earn an average salary of $64,352.

Budget analysts apply principles of fnance to projects and proposals in the business, educational, governmental, and not-for-proft sectors. They analyze budgets and evaluate the fnancial impact of continuing ventures and new ventures.

Salary and Employment Outlook: According to the BLS, actuaries earned an average of $101,560 in May 2017 and jobs are predicted to grow at a much faster than average rate of 22% through 2026.

4. Budget Analyst

Budget analysts must have refned communication skills because they interview managers in order to gather information for proposals. They also train staf regarding the budget development processes for their organization. Finance majors develop the essential analytical and communication skills needed to become a successful budget analyst.

6. Accountant Finance majors learn to construct, interpret, and critique fnancial statements while completing the ac counting component of their studies. Thus, they become capable of carrying out complex accounting work in fnancially oriented industries.

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5. Actuary Actuaries play a leadership role in fnancially oriented businesses such as insurance, banking, rating agencies, and accounting frms. The fnance graduate with strong mathematical skills is ideally posi tioned to calculate the likelihood of various events and to assess the fnancial consequences for those outcomes. Just like the fnance major, actuaries manipulate software to perform calculations and represent their fndings. They present their recommendations to managers at their frm and convince others of the soundness of their decisions.

Salary and Employment Outlook: According to the BLS, accountants earned an average of $69,350 in May 2017 and jobs are predicted to grow at a faster than average rate of 10% through 2026.

Finance majors analyze trends in industries that can impact the ability of organizations to generate the income necessary to repay loans. They have the communication skills necessary for credit analysts to extract information from prospective clients and convey their analyses to colleagues.

8. Attorney Lawyers in many areas of practice, including divorce, product liability, civil litigation, corporate, labor, and securities law, beneft from a knowledge of fnance. Attorneys who investigate fnancial irregularities must read and understand fnancial statements. Lawyers in civil cases need the skills to estimate appropriate compensation for settlements.

Salaryexhibits.and

Research and analytical skills developed by fnance majors enable attorneys to prepare their cases. Pre sentation skills and knowledge of presentation software help attorneys to deliver arguments and prepare

Salary and Employment Outlook: According to the BLS, credit analysts earned an average of $71,290 in May 2017 and jobs are predicted to grow by as much as 8% on average through 2026.

Employment Outlook: According to the BLS, lawyers earned an average of $119,250 in May 2017 and jobs are predicted to grow by as much as 8% on average through 2026.

Salary: According to Payscale, commercial real estate agents earn an average salary of about $94,500.

Credit analysts evaluate the fnancial standing of loan prospects and assess the risks involved with of fering them fnancing. Finance majors learn to appraise the fnancial viability of entities and interpret their fnancial records and data. The investigative mindset of a fnance major would enable the credit analyst to scrutinize the legitimacy of fnancial information furnished by clients.

9. Commercial Real Estate Agent Finance majors with strong verbal skills and a sales orientation should consider a career as a commer cial real estate agent. Commercial real estate agents analyze the business plans and fnancial status of clients in order to recommend appropriate spaces for their enterprises.

7. Credit Analyst

10. Business Teacher Finance majors hone the communication and presentation skills that are essential to the teaching profes sion. Business teachers tap a broad knowledge of business as they instruct high school students about

When listing a property, brokers must estimate the value of the property based on its fnancial poten tial for prospective buyers. Agents advise clients about options for fnancing property acquisitions and launching new businesses.

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Finance majors with an intense curiosity about the business world and an enthusiasm for business issues are well suited for this role. Individuals who earn advanced degrees in business can also pursue teaching jobs at junior and four-year colleges.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM 97 the fundamentals of accounting, management, marketing, and investments.

Salary: According to Payscale, business teachers earn an average salary of $41,654.

GREEN STUDENT WORKBOOK | WWW.ROCKTHESTREETWALLSTREET.COM RESOURCES WEBSITES Rock The Street, Wall Street • www.rockthestreetwallstreet.com Rock The Street, Wall Street LinkedIn Page • www.linkedin.com/company/rock-the-street-wall-street Internship & Job Portal • www.rockthestreetwallstreet.com/internship-job-portal Career Girls • www.careergirls.org Napkin Finance • www.napkinfnance.com Investopedia • www.investopedia.com Yahoo Finance • fnance.yahoo.com The College Investor • www.thecollegeinvestor.com/audio-show PODCASTS The Fairer Cents: Women, Money and the Fight to Break Even • www.thefairercents.com NPR’s Planet Money • www.npr.org/sections/money HERMONEY • www.hermoney.com/t/podcasts Money Nerds • www.themoneynerds.com So Money with Farnoosh Torabi • www.podcast.farnoosh.tv U.S. GOVERNMENT Janet Yellen • www.home.treasury.gov/about/general-information/ofcials/janet-yellen Gender Policy Council • www.whitehouse.gov/gpc Women in Public Finance • www.wpfc.com/ RESOURCES 98

MAKE SURE YOU DO THE FOLLOWING: • Register for RTSWS Spring Mentorship * Share with us any job shadowing / internship opportunities or job ofers you may receive. Whether it is this year or any following years, we always want to share in your success! • Join the Rock The Street, Wall Street Student and Financial Pro Networking Group | www.linkedin.com/groups/7029520/ • Check out our RTSWS Internship & Job Portal www.rockthestreetwallstreet.com/internship-job-portal • Check out resources on our RTSWS Connects page for students and alumnae | rockthestreetwallstreet.com/students-alumnae/ • Tell us your Student Story! We want to hear from you! Email us at: programs2@rockthestreetwallstreet.com CONGRATS! You successfully completed the Rock The Street, Wall Street Program! GIRLSROCKFINANCE

RTSWS GREEN STUDENT CURRICULUM 2022

Articles inside

SESSION #5 BONUS MATERIAL

GROUP REFLECTION

POST-ASSESSMENT

GROUP PRESENTATIONS

PROJECT: Financial Planning for Janella

KEY TERMS

PROJECT: Financial Planning for Janella

GLOWS AND GROWS

KEY TERMS

REMINDERS FOR NEXT SESSION

STOCK REVIEW

SESSION #2 BONUS MATERIAL

PAYCHECK VS. PAY STUB

COHORT NORMS

ARTICLE: How To Read A Paycheck

YAHOO! FINANCE INSTRUCTIONS

PRE-ASSESSMENT

GREEN SESSION ONE

AGENDA

KEY TERMS

KEY TERMS