AFI Training Toolkits on the FDIC Money Smart Curriculum

The AFI Resource Center is pleased to provide a collection of AFI Training Toolkits specifically designed to supplement the FDIC Money Smart Curriculum and to customize the financial education curriculum for IDA project participants. This series of AFI training toolkits will include 10 installments to complement each of the 10 modules of the FDIC Money Smart Curriculum.

FDIC Money Smart Curriculum

Financial education is often described as one of the most important elements of an IDA project.  Financial education not only helps participants to save successfully in their accounts while they are enrolled in the IDA project, but also gives them the skills to maintain the asset they purchase with their IDA savings.

When financial education is delivered in a safe and supportive environment in a way that connects with participants, it increases participants’ financial management knowledge, skills, and confidence.

All AFI grantees are required to use part of their Federal AFI grant to assist their participants in obtaining the skills (including budgeting, credit, and counseling skills) and information necessary to achieve economic self-sufficiency. Most AFI projects offer some level of classroom-based education.

The Money Smart Curriculum is one of the most widely used adult financial education curricula.  Developed by the Federal Deposit Insurance Corporation (FDIC), Money Smart is flexible, and it can be easily reproduced or modified for different target audiences.

There are two versions of the Money smart curriculum – an instructor-led and computer based instruction. AFI grantees can obtain complimentary copies from the AFI Resource Center.

Instructor-Led

The instructor-led version is a curriculum used in classroom style settings, and can be great for
AFI participants. The curriculum is composed of 10 separate modules, each of which contains:

• A guide for instructors that contains everything necessary to start teaching the program, including cues, script, and interactive class exercises;
• Visual aids in Microsoft Word and PowerPoint format; and
• Take-home guides for participants.

Each module is designed for 1 to 2 hour class periods.

The instructor-led version of Money Smart is available in English, Spanish, Chinese, Korean, Vietnamese, and Russian and there is also a version for the visually impaired.

Computer-Based Instruction

The computer-based version of the Money Smart Curriculum enables participants to work through the curriculum at their own pace, using a computer. It includes the same 10 modules as the instructor-led curriculum.  Grantees and participants can access it online or via CD-ROM. This version is available in English or Spanish.

Following is a brief description of each Money Smart module:

Money Smart Module 1 – Bank on It

• Identify the major types of insured financial institutions;
• Identify five reasons to use a bank;
• Describe the steps involved in opening a bank account;
• Describe two types of deposit accounts;
• Identify additional bank services that come with deposit accounts; and
• Describe the primary functions of the bank customer service representative, teller, loan officer, and branch manager.

Money Smart Module 2 – Borrowing Basics

• Define credit;
• Explain why credit is important;
• Distinguish between secured and unsecured loans;
• Identify three types of loans;
• Identify the costs associated with getting a loan;
• Explain why it is important to be wary of rent-to-own, pay-day loan, and refund anticipation services; and
• Determine if they are ready to apply for credit.

Money Smart Module 3 – Check it Out

• State the benefits of using a checking account;
• Determine which checking account is best for them;
• Identify the steps involved in opening a checking account;
• Add and withdraw money from a checking account; and
• Reconcile a check register with a bank statement.

Money Smart Module 4 – Money Matters

• Track daily spending habits;
• Prepare a personal spending plan or budget to estimate monthly income and expenses;
• Identify ways to decrease spending and increase income; and
• Identify budgeting tools that will help them manage their money.

Money Smart Module 5 – Pay Yourself First

• Explain why it is important to save;
• Determine goals toward which they want to save;
• Identify savings options; and
• Determine which savings options will help reach savings goals.

Money Smart Module 6 – Keep it Safe

• Identify the laws and regulations that protect their deposits;
• Identify the laws and regulations that protect them when applying for a loan;
• Guard against predatory lending practices and identity theft; and
• Describe how to be financially prepared for disasters.

Money Smart Module 7 – To Your Credit

• Describe the purpose of a credit report and how it is used;
• Order a copy of their credit report;
• Read their credit report; and
• Identify ways to build and repair their credit history.

Money Smart Module 8 – Charge it Right

• Describe the purpose of credit cards;
• Determine which credit card is best for them;
• Identify the factors creditors look for when making credit decisions;
• Describe how to use a credit card responsibly; and
• Identify the steps to take when a credit card is lost or stolen.

Money Smart Module 9 – Loan To Own

• Identify various types of installment loans;
• Explain why installment loans cost less than rent-to-own services;
• Identify the factors lenders use to make loan decisions;
• Identify the questions to ask when purchasing a car; and
• Describe the advantages and disadvantages of borrowing against a home.

Money Smart Module 10 – Your Own Home

• Describe the benefits and pitfalls of renting versus owning a home;
• Identify the steps required to buy a home;
• Identify questions to ask to determine their readiness to buy a home;
• Identify basic terms used in a mortgage transaction; and
• Describe the advantages and disadvantages of different mortgage options.

For more information on Money Smart or the FDIC, click here to access the FDIC's Money Smart web site.

AFI training toolkits – supplemental tools for Money smart curriculum

The AFI resource center has partnered with the FDIC to make the Money smart curriculum more accessible to AFI grantees, their subgrantees, and their partners. The AFI Resource Center has developed special training toolkits for each Money Smart module to help project staff teach the curriculum to their IDA project participants.

Each AFI Training Toolkit focuses on one of the 10 Money Smart Curriculum modules. Each toolkit begins with an introduction describing how the module is organized, the content and objectives of the module, and the instructor aids provided for each module. A list of key terms and definitions used in the AFI training toolkits is provided here.

In addition, each toolkit includes AFI Supplemental Training Tools for the associated Money Smart module that can be used by project staff when teaching the Money Smart Curriculum to IDA participants. It offers suggestions on how to tailor the module for different target audiences of IDA participants and how to elaborate on the content to cover related topics or the same topics in a more advanced way. Click here for a description of target audiences of IDA participants.
Supplemental training tools also include detailed notes and lesson plans for facilitators and exercises and handouts for IDA participants to use during training sessions. The exercises focus on incorporating participatory methodology, the IDA context, and new instructional materials. An explanation of the training techniques and terminology used in the AFI training toolkits is provided here.

To get the most benefit from the AFI Training Toolkits, obtain a copy of the FDIC Money Smart Curriculum and become familiar with its contents. To order a complementary copy of the FDIC Money Smart Curriculum, click here.