Most high school students are comfortable using mobile phones. Many high school students use smartphones, such as iPhones, which are becoming part of our culture. It is also becoming more cost effective to use the broad range of smartphone services to cut down on other costs such as watches, games, and other accessory items. According to Maximilian Schmeiser of the Federal Reserve, the Center for Financial Services Innovation, the U.S. Treasury, and other national leaders, mobile phones do matter when it comes to financial management and financial decision-making. "MOBILE PHONES MATTER" HOW TO USE MOBILE PHONES FOR FINANCIAL MANAGEMENT AND FINANCIAL DECISION-MAKING

KEY CONCEPTS

Banking, Benefit, Budget, Choice, Cost/Benefit Analysis, Decision Making, Insurance, Opportunity Cost, Trade-off

STUDENTS WILL

• Take notes on the advantages of using mobile phones for financial management and financial decision-making.
 
• Read an article from the Federal Trade Commission (FTC) on mobile applications.
 
• Research various techniques to establish a password to safeguard information on a mobile phone.
 
• Explore mobile applications that aid in financial management and financial decision-making.
 
• Match mobile applications that aid in financial management and financial decision making with key financial concepts.
 
• Create a multimedia presentation or write a persuasive essay illustrating mobile applications using key concepts that aid in financial management and financial decision making.

INTRODUCTION

Most high school students are comfortable using mobile phones. Many high school students use smartphones, such as iPhones, which are becoming part of our culture. They're also becoming more cost effective by using their broad range of other services to cut down on costs such as watches, games, and accessory items. According to Maximilian Schmeiser of the Federal Reserve, the Center for Financial Services Innovation, the U.S. Treasury, and other national leaders, mobile phones matter when it comes to financial management and financial decision-making.

RESOURCES

Demonstrates why "Mobile Phones Matter" - why mobile banking can be easier and also how it might soon negate the checkbook. 
www.youtube.com/watch?v=LapjgOqfYds&feature=youtube_gdata

Consumer Use of Mobile Phones for Financial Management and Financial Decision-Making:
University of Wisconsin-Madison 
www.youtube.com/watch?v=5iQrj8WYCiU

Federal Reserve discusses the use of mobile phones when doing financial management.
www.federalreserve.gov/econresdata/mobile-devices/2012-other-mobile-financial-services.htm

USAA mobile banking application commercial
www.youtube.com/watch?v=xcFQkFSCr5w

Understanding Mobile Apps by the FTC
www.consumer.ftc.gov/articles/0018-understanding-mobile-apps  

Tips on creating strong but easy to memorize passwords
www.makeuseof.com/tag/how-to-create-strong-password-that-you-can-remember-easily/

Top rated iPhone financial apps
www.forbes.com/sites/tjmccue/2013/01/08/10-leading-finance-and-banking-apps-for-iphone-and-ipad/

Top rated Android financial apps
personalfinancemastery.com/2012/top-10-most-useful-android-financial-applications/

24 Personal Finance Writers Share Their Favorite Money-Saving Apps
Experian, Michael Delgado
www.experian.com/blogs/news/2012/10/29/frugal-apps/

National Association of Insurance Commissioners (myHOME Scr.APP.book)
www.insureuonline.org/home_inventory_page.htm

National Association of Insurance Commissioners (WreckCheckApp)
www.insureuonline.org/auto_page.htm

EconEdLink Mobile Apps
www.econedlink.org/mobile-apps/ 

Follow along with the FinCapDev Competition to see what the next evolution of financial management apps will look like. 
www.fincapdev.com/

This exercise has the students build a Data Retrieval Chart (DRC)to find an app that best suits their individual financial needs. Display this chart so the students can get an idea of what a (DRC) is and how to construct one.

PROCESS

  • Show students the opening presentation "Mobile Phones Matter" , and make sure the students know and understand the capabilities of the "smartphone".
              Note - If necessary, review key vocabulary with the students:

              Decision-making is a method of selecting a course of action after gathering and
              evaluating information and considering the costs and benefits of various alternatives
              and consequences. The preparation of a budget is filled with decision-making and
              weighing the pros and cons of those decisions.
 
              Financial capability is the application of financial knowledge. 
 
  • Show the students the USAA Mobile Banking Application Commercial as an example of what one mobile application can do. Financial apps can help you budget your money by tracking everyday spending. This will also help you make precise decisions when it comes to opportunity cost. 
 
  • Have the students read “Understanding Mobile Apps” by the FTC. When the students are finished, ask them to share their impressions of the article. Explain to the students that you do not expect them to memorize the information, but rather recognize that the information is available for them as a resource to help guide them through mobile app selections.
 
  • Have the students read about various techniques to establish a password to safeguard information. Then the students are to develop their own password. Provide the students with two optional reading materials. “Option A” is How to Devise Passwords That Drive Hackers Away, New York Times and “Option B” is how the National Disability Institute recommends passwords are developed and remembered.
 
             National Association of Insurance Commissioners (WreckCheckApp)
             www.insureuonline.org/auto_page.htm
             
             EconEdLink Mobile Apps
             www.econedlink.org/mobile-apps/ 
 
  • Once the students have explored the preceding articles, have them complete this exercise by filling in the blanks with "apps" that match the financial concept
    

CONCLUSION

Mobile phones have become a part of our culture, particularly for high school students. With a little research and education, they can be used safely and effectively as financial management and financial decision-making tools. At a minimum, consumers should consider using the mobile banking options and text alert reminders offered by banks and credit unions. Consumers should always do their due diligence, these services are often times free.

ASSESSMENT ACTIVITY

Create a multimedia presentation illustrating mobile applications that aid in financial management, financial decision making, and use key financial concepts.

Option A: Students can use PowerPoint or Prezi to present. Presentation ideas:
 
• Create a “Top Ten List” of apps that would apply to your needs
• Categorize mobile apps and rank them according to your needs
   -Do you need an app that will provide you with your net worth?
   -Will this app help me manage my bills?
   -Why should I use an app to help me budget?
These are just some of the questions the student needs to ask themselves. The student should do an analysis of their financial goals and their financial needs, and use that information to create a matrix to cross-examine each individual app against their needs.
• Provide safety recommendations (per the FTC article and password suggestions)
 
Option B: Students can create a video or commercial. Presentation ideas:
 
• Create a “Top Ten List” of apps that would apply to your needs
• Categorize mobile apps and rank them according to your needs
   -Do you need an app that will provide you with your net worth?
   -Will this app help me manage my bills?
   -Why should I use an app to help me budget?
These are just some of the questions the student needs to ask themselves. The student should do an analysis of their financial goals and their financial needs, and use that information to create a matrix to cross-examine each individual app against their needs.
• Provide safety recommendations (per the FTC article and password suggestions)
 
Option C: Write a four paragraph persuasive essay persuading the reader to use mobile apps for financial management and financial decision-making. Support your position with research, safety recommendations, and examples of “best practices.”

EXTENSION ACTIVITY

Have the students complete one or both of the following:

Follow along with the FinCapDev Competition to see what the next evolution of financial management apps will look like. www.fincapdev.com/ 

Download to their phone the mobile application(s) they thought would positively impact their own financial behavior.

EDUCATOR REVIEWS