FPU-Coordinator-Guide

Financial Peace University Coordinator Guide

CASE STUDY 3 ANSWERS

DISCUSSION ANSWERS
ANSWER TO QUESTION 1:

Katie is right. They each have a $50,000 income, so 10 times their income would
be $500,000 in term life coverage. That $8 per month savings could cost them
$25,000 a year in lost income if one of them were to die.
ANSWER TO QUESTION 2:
Medical debt is consistently one of the leading causes of bankruptcy. You
never know when a medical emergency or illness may strike—not to mention
a car accident or other trauma! One round of chemo or emergency surgery
could easily destroy many Americans’ entire financial life without quality health
insurance. That is definitely a risk you want to transfer to an insurance company.
ANSWER TO QUESTION 3:
They could switch to a Health Savings Account (HSA), raise their co-pay amount,
and raise their deductible.
ANSWER TO QUESTION 4:
Because he is only 32 years old, there is no need for Bill to have long-term care
insurance. Dave recommends long-term care coverage for people 60 years old
and older.

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Financial Peace University Coordinator Guide

ENDING THE CLASS

Class Wrap-Up (2 minutes)

†† Review This Week’s Homework on page 97 of the Member Workbook.
†† Make sure the FPU Attendance Sheet is complete and turned in.
†† Remind everyone to bring their completed budget (either their Cash Flow Plan form or

EveryDollar budget) and Insurance Coverage Recap form to class next week.
†† Tell everyone that next week’s lesson is Retirement and College Planning.

Stress how important it is to be here for that lesson by saying:
Next week, we’re going to start talking about long-term investing
for retirement and college. Even if Baby Steps 4 and 5 are still
a few years away for you, it’s important that you come to this
lesson! Remember, this is the goal, and we need to get a clear
picture of what that goal actually is so we’ll stay motivated as we
work toward it.

†† Remind everyone that if they miss a class they can view lessons online at FPU Central.
†† Encourage everyone to be gracious guests.

Return the chairs to their original places and make sure any garbage is removed.
†† Class dismissed!

After Class

†† Complete the items on the After-Class Checklist on page 17 of this guide.

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This Week’s Homework

Personal finance is 20% head knowledge and 80% behavior. Take charge
of your financial behaviors by completing the following tasks this week. Be
sure to work with your spouse or accountability partner where noted!

Identify your insurance coverages.
Use the Insurance Coverage Recap form in the back of the
book or online to list the policies you currently have. Note any
of Dave’s recommended seven basic types of coverage that are
missing from your list as well as any policies that you need to
update or remove. Make sure your spouse or any dependents
know where to find this form in the event of an emergency.

Discuss the Insurance Coverage Recap form.
Singles: Review your Insurance Coverage Recap form with
your accountability partner and discuss any changes you’re
considering making.

Married Couples: Review the Insurance Coverage Recap form
together and discuss any changes that need to be made. Make
sure you both know where to find the form in the event of
an emergency.

Adjust your zero-based budget.
If you changed or added any insurance policies as a result of
this lesson, be sure to make the necessary updates to your
monthly zero-based budget to account for any changes to
your premiums.

Reading Assignment: Read the “Clause and Effect” chapter in
Dave Ramsey’s Complete Guide to Money.

Prepare for next week.

Get ready by reading ahead to next week’s lesson!

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The Role of Insurance 97

FINAL WORD

A Bittersweet Victory
“Whereas you do not know what will happen tomorrow. For what is your life?
It is even a vapor that appears for a little time and then vanishes away.” —JAMES 4:14

AS SCRIPTURE SAYS, you are not walked through the Baby Steps, for 13 months, but then Brad, 38,
guaranteed tomorrow. You know lived on less than they made, used went to be with the Lord.
this is true, but it’s so much easier the cash envelope system, and
to look the other way and pretend got a good life insurance policy. “Had we not had the foresight to
to be invincible. Sadly, reality can live differently than the rest of
be a lot less pleasant than fantasy.

That’s why Dave encourages “Wise adults and loving spouses
everyone—both young and realize if they wait until tragedy hits
old—to purchase quality term life to make provisions for their family,
insurance. Wise adults and loving they’ve waited far too long.”
spouses realize if they wait until
tragedy hits to make provisions A few years into their marriage, America, we wouldn’t have been
for their family, they’ve waited far while proudly following both able to plan as well as we did. We
too long. Dave’s and her granny’s advice, wouldn’t be where we are, had
Kirstie was happy to find herself we not taken your class and really
This small effort now may end up pregnant with their second child. listened,” an emotional Kirstie told
leaving a lasting impression on Unfortunately, the joy of a growing Dave when she called in to The
your loved ones, just like it did for family was soon overshadowed Dave Ramsey Show.
Kirstie and her two daughters. by devastating news: Brad was
diagnosed with stage IV lung Kirstie and Brad not only listened
Before they were married, Kirstie cancer. They fought the cancer to the FPU principles, they were
and her husband, Brad, took
Financial Peace University. They

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98 The Role of Insurance

also inspired by other people’s stories KEY TERMS
to take action. They each purchased
a $250,000 life insurance policy, Cash Value Life Insurance:
deciding this amount would more Generally a permanent life
than cover the remaining balance on insurance policy that funds an
the house. If something happened attached savings account
to one of them, the grieving
spouse wouldn’t have to worry Claim: Paperwork filed with an
about this debt. insurance company in order to
get them to cover a loss
By working through Dave’s process
and applying God’s ways of handling Coverage: The amount of
money, they tackled their debts protection through an insurance
together, with only the mortgage company in the event of a loss

“The simple task of getting life insurance Deductible: Amount of money
is one of the most loving gifts you can an insured person must pay
ever give your family.” out of pocket before insurance
payments/benefits begin
remaining. When Brad lost his battle listening to that call, and you have a
with cancer, Kirstie used the life family, I think something’s probably Disability: A physical or mental
insurance proceeds to pay o the wrong with your brain.” condition that limits or prevents
house. “It’s kind of a bittersweet someone from working to
victory,” she said, “but it’s honoring It’s the hearing and the doing that produce an income
what our original plan was together.” really count. The simple task of
getting life insurance is one of the Health Savings Account
As a couple, they were dedicated to most loving gifts you can ever give (HSA): A tax-free savings
achieving their FPU goals, including your family. So do it! account for medical expenses
making insurance an important part that works with a high-
of their inancial plan. In total, they paid It’s extremely di icult, if not impossible, deductible insurance policy
to get good term life insurance after
o $136,000. you’ve been diagnosed with a serious, Liability: One’s financial
Because of life-threatening illness. And the truth obligation when found at fault in
their focus and is, you could go from totally healthy an accident
determination, to terminally ill in a single doctor’s
Kirstie is able visit. Once you get the bad news, your Policy: In insurance, a contract
to raise her chances of getting life insurance could stating the conditions and limits
daughters, Elizabeth and Sophia, be gone forever. of specific coverage
with the inancial peace of mind that
only comes from being completely Brad left a legacy for Kirstie and their Premium: Amount paid
debt-free. kids because he bothered to do this monthly, quarterly, semiannually
stu . If you don’t have quality life or annually to purchase
At the end of the call, Dave challenged insurance, it’s time to move this to the insurance
his listeners: “If you don’t have life top of your family’s to-do list today!
insurance by the end of the day after Stop Loss: An insured person’s
maximum out-of-pocket
expense per year

Term Life Insurance: Life
insurance policy that remains
in force for a specified period
of time

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The Role of Insurance 99



Financial Peace University Coordinator Guide

RETIREMENT AND
COLLEGE PLANNING

VIDEO TIME: 59 MINUTES

Expect This
In this week’s lesson, Dave and Rachel explain—in plain language—how investments
work and how anyone on practically any income can retire comfortably, send their
kids to college, leave a lasting legacy for their family, and have plenty to give to
ministry or other people.

It is not unusual for some members in Baby Steps 1–3 to show signs of
discouragement as we discuss the later Baby Steps. Always encourage them to
keep the long-term goal in front of them no matter where they are today.

This week’s class activities include a second opportunity to cut up credit cards. We
will repeat the same activity we did in the Dumping Debt lesson.

Do This
Review the Before-Class Checklist on page 16 of this guide.
Pray specifically for your class members as they strive toward their long-term goals,
even if those goals seem out of reach today.



Financial Peace University Coordinator Guide

WELCOME & REVIEW

Do This (5 minutes)

†† Welcome everyone back and congratulate them on coming to class week after week.
Go ahead and start building up excitement for the last lesson, The Great Misunderstanding,
which will take place in two weeks. That lesson is a life-changer!

†† Budget check!
Quickly walk through and check everyone’s budget by “finding the zero,” as we’ve done the

Ipast few weeks.
Depending on where this week falls on the calendar, it might be time
to write the budget for next month. Always make sure your class has
a new budget completed before the first of the month—every month!

†† Review last week’s material.
Read this question aloud to the class:
Last week, we talked about which types of insurance you should
and should not have. Looking at the “Insurance” section of your
Monthly Cash Flow Plan form, what types of insurance are you
now planning to add, change or cancel? How will this impact
your budget?

†† Instruct everyone to turn to page 102 of their Member Workbook.
†† Circulate the FPU Attendance Sheet for members and guests to sign during the video.

Start the Video

The following pages match the Member Workbook so you can follow along with your class.

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Tell Your Story

Week 7
How are today’s financial decisions impacting

the legacy you’ll leave for your family?

DAtE

RETIREMENT

AND COLLEGE

PLANNING

MASTERING THE ALPHABET SOUP OF INVESTING

Just picture it: You’re out of debt and you have an emergency
fund of three to six months of expenses sitting in the bank. Now
it’s time to build some wealth for your future!

In Retirement and College Planning, Dave helps you understand
all those initials and abbreviations: IRA, 401(k), 403(b), 457 and
more! Plus, Rachel shows you the best way to make sure your
kids get through college without a student loan—what an idea!

If you want Let’s Dream Together
something you’ve
never had, you must IMAGINE IF…
be willing to do A 30-year-old couple made $48,000 a year and saved
something you’ve 15% ($600 per month) in a 401(k) at 12% growth.
never done.
At 70 YEARS oLD, tHEY WILL HAVE…
—THOMAS JEFFERSON
$7,058,863 in the 401(k).

think a 12% rate of return IMAGINE IF…
is impossible? Learn why That same couple fully funded a Roth IRA at $5,000
Dave uses 12% in his each per year (a total of $10,000), which would be
investing examples in $833 per month, at 12% growth.
this bonus online article.
At 70 YEARS oLD, tHEY WILL HAVE…
daveramsey.com/fpu/12percent
$9,803,937 TAX FREE!
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102 Retirement & College Planning WHAT IF…
That same 30-year-old couple, DEBT FREE, does both?

At 70 YEARS oLD, tHEY WILL HAVE…

401(k) $7,058,863

Roth IRA $9,803,937

Total $16,862,800

Ground Rules for Investing In the house of the
wise are stores of
Once the emergency fund is in place, you should begin choice food and oil,
retirement and college funding, which all fall within but a foolish man
devours all he has.
long-term investing for WEALTH .
—PROVERBS 21:20 (NIV84)
4BABY STEP Invest 15 % of your household
Money is like manure:
income into Roth IRAs and pre-tax Left in one pile, it
retirement plans. stinks. Spread around,
it makes things grow.
Simple Investing
—DAVE RAMSEY
The KISS Rule of Investing:
This lesson just gives
Keep it SIMPLE , STUPID ! a high-level overview
of key investing topics.
Diversification means to SPREAD AROUND . When you’re ready to
really dive in and do this
Diversification LOWERS risk. stu , be sure to talk to an
investing professional
Give portions to seven, yes to eight, for you do who will keep you
not know what disaster may come upon the land. accountable and can
work with you to reach
—ECCLESIASTES 11:2 (NIV84) your investing goals. We
can help you ind the
SmartVestor Pros in your
area at daveramsey.com.

daveramsey.com/smartvestor

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Retirement & College Planning 103

Mutual Funds

Investors pool their MONEY to invest.

Professional portfolio managers manage the pool or

FUND .

Your RETURN comes as the VALUE of the

fund is increased.

Long-term investing Mutual funds are good LONG -term investments.
refers to a period of
more than five years. If Standard Diversi ication Plan funds.
you are saving and will
need the money within • 25% in GROWTH and INCOME
the next five years, it is • 25% in GROWTH funds.
better to use a money • 25% in INTERNATIONAL funds.
market savings account • 25% in Aggressive GROWTH funds.
instead of investments.
Use Tax-Favored Plans
42% of American workers
have never even tried Always save long term with tax- FAVORED
to calculate how much dollars.
money they will need
to save in order to live Tax-favored means that the investment is in a
comfortably at retirement.
QUALIFIED PLAN or has special

tax treatment.

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104 Retirement & College Planning

QUALIFIED PLANS I’m in my forties and
• Individual Retirement Arrangement (IRA) only have a 401(k). My
• 401(k) takeaway is that I am
• 403(b) WAY behind and need to
• 457 get busy saving.
• Simplified Employee Pension Plan (SEP)
—Michelle
Individual Retirement Arrangement (IRA)

Remember, an IRA is not a type of INVESTMENT at
a bank. It is the tax TREATMENT on virtually any

type of investment.

Everyone with an EARNED income is eligible.

Also, the non-income-producing spouse of an income
earner is eligible.

Roth IRA

The Roth IRA is an AFTER -tax IRA that grows TprhrLoeaafqtweu’ssisr,seiwrmoehnegyainunlltivattset’oscisohthnieiamsnlnpgpgaoeywnrodatautalelennlriattgsvhit.eibogitalfiittimenyedt.hae

TAX FREE ! The Roth IRA is
named for Senator
If you SAVE like we teach, you should use the William Roth
(R Delaware), who
Roth IRA. authored this section
of the Taxpayer Relief
Act of 1997.

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Retirement & College Planning 105

401(k), 403(b) and 457 Retirement Plans

Most companies have completely done away with

traditional PENSION plans in the last 20 years.

Some new plans offer a variety of pre-tax choices.

Ttwhafhexoo-rRdfoaotrnhRe’eot4ti0mhn1ve(IeRketAs)t.itmsIhfeeonnyiteonsucoroffmcoteromhplepiemaooinpntyllesy Some companies are now offering the ROTH
offers one, take it. 401(k), which grows tax free.

You should be funding your plan whether your company

MATCHES or not, but the plans that have

company matching provide great returns.

Rollovers

You should ALWAYS roll all retirement plans to
an IRA when you LEAVE the company.

Do not bring the money home! Make it a DIRECT

TRANSFER .

I never thought Retirement Loans
investing was an option
for me. I just figured I Never BORROW on your retirement plan.
would live paycheck to
paycheck for the rest
of my life. Now I see a
better future!

—Megan

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106 Retirement & College Planning

WHY NOT? A man’s heart plans
• The interest you pay yourself is nowhere close to his way, but the
what you would be earning in the mutual fund if LORD directs his
you hadn’t unplugged that investment. steps.

• You may leave the company before the loan is —PROVERBS 16:9
repaid. That means you would have to repay within
60 days and risk fees and extra taxes at a time when
you may have lost your income.

• You may die before the loan is repaid, which would
leave a mess for your heirs.

Our Suggestion for Investing 15%

• Fund a 401(k) or other employer plans if they match.

Fund an amount equal to the MATCH .

• Above the match amount, fund ROTH IRAs.

If there is no match, start with Roth IRAs.

• Complete 15% of your income by going back to the

401(K) or other company plans.

Do you not know that in a race all the runners run, If you’re in the military
but only one gets the prize? Run in such a way or are a government
as to get the prize. employee, you probably
have a thrift Savings
—1 CORINTHIANS 9:24 (NIV) Account option available.
Get Dave’s suggestion
on how to use your tSP
in this lesson’s online
resources at FPU Central.

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Retirement & College Planning 107

College Funding

Student loans are 5BABY STEP Save for your children’s
the roadblock of
this generation of COLLEGE using tax-favored plans.
students.
Paying for College
—RACHEL CRUZE
First, save in an Education Savings Account (ESA), or
Two out of three
college students take out “education IRA .”
student loans.
—USA Today Above that, if you want to save more, or if you don’t
meet the income limits for an ESA, use a certain type of

529 plan.

The only type of 529 we recommend is one that leaves

YOU in control of the mutual fund at all times.

NEVER BUY A 529 PLAN THAT:

• FREEZES your options.

• Automatically changes your investments based on

the AGE of the child.

The average student Three Nevers of College Saving
loan debt among
graduating seniors with • Never save for college using INSURANCE .
a four-year degree is • Never save for college using SAVINGS bonds.
around $25,000 27,000. • Never save for college using PREPAID
—The Project on
Student Debt tuition, which only covers the tuition inflation rate.

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108 Retirement & College Planning

Debt-Free College ANSWER KEY

Is debt-free college even possible if you don’t have a big WEALTH ROTH
college fund ready to go? Of course!
15% MATCHES
DEBT FREE COLLEGE TIPS
SIMPLE ALWAYS
• Pick an IN - STATE or COMMUNITY
STUPID LEAVE
college.
SPREAD AROUND DIRECT
• Compare ON -campus versus OFF - campus
LOWERS TRANSFER
living options.
MONEY BORROW
• Aim for scholarships with SAT and ACT
FUND MATCH
TUTORING .
• Get a JOB ! RETURN ROTH

VALUE 401(K)

LONG COLLEGE

GROWTH IRA

INCOME 529

GROWTH YOU

INTERNATIONAL FREEZES

GROWTH AGE

FAVORED INSURANCE

QUALIFIED PLAN SAVINGS

INVESTMENT PREPAID

TREATMENT IN STATE

EARNED COMMUNITY

AFTER ON

FREE OFF

SAVE TUTORING

PENSION JOB

Pssst...

The video is ending soon. Turn the page
to find out what happens next.

One-Minute Takeaway

What jumped out at you in this lesson? How can this affect your story?

Financial Peace University Coordinator Guide

DISCUSSION & ACTIVITY

Break Into Small Groups

†† If your class is larger than 20 people, split the class into multiple discussion groups with
a co-coordinator for each group.

†† Arrange the chairs in a circle for the small group discussion.

Small Group Discussion (10 minutes)

†† Take out the Question Cards numbered 1–3.
Distribute all three to individuals in the group.

†† Direct everyone’s attention to page 110 of their Member Workbook and say:
I’ve passed out a few cards with numbers on them to help with
our small group discussion. Whoever has Card 1 will read the
first question, and we’ll all talk about it together. Then whoever
has Card 2 will read the second question. We’ll keep going until
we’ve covered all the questions. We’ve got about 10 minutes, so
let’s get started.

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Small Group Discussion

true life-change happens when you open up and work through this
material together. Break up into discussion groups of no more than 20
people to talk through the following questions. Be honest in your answers!

1 Winning with money is not just about building a comfortable
retirement for yourself. It also includes leaving a legacy for
future generations. Realistically, what type of inheritance would
you like to leave your loved ones? What would you like to see
them do with it?

2 Parents often struggle with the idea of putting their own
retirement plans ahead of their children’s college funding. Why
is it so important to follow the Baby Steps in order in this area?
Why do you think some parents feel compelled to reverse the
order of these two steps?

3 Some people struggle with the concept of doing the Baby
Steps in order, one step at a time, while setting aside or
delaying goals they want to reach immediately. Why is it
important to focus all your attention and gazelle intensity on
one goal at a time?

110 Retirement & College Planning Coordinator 171
Retirement and College Planning 110



Financial Peace University Coordinator Guide

CLASS EXERCISES

It’s time to stop and repeat two important activities that we’ve done in
previous weeks. These two exercises should complement each other nicely!

Share Victories (3 minutes)

†† Let’s celebrate some victories again!
Spend this time having your members share any victories they’ve already experienced.
Examples could be completing a Baby Step, paying off a debt, or even improving
communication in their marriage.

Credit Card Exercise (10 minutes)

This activity is a repeat of the card-cutting exercise from the Dumping Debt lesson. It should flow
easily from the Share Victories activity. Carefully follow the process below to lead class members
into a second “plasectomy,” or “plastic surgery.” Start by saying:

We’ve seen some great victories over the past seven weeks, but
one of the most important victories anyone can have on their
journey toward financial peace is to cut up their credit cards
once and for all. We did that a few weeks ago, and some of you
chopped up your cards. Now that we’re a little further along, we
want to give everyone another chance to take this bold step.

†† Now, take out your scissors in front of the group and say:
We’re going to pass these scissors around to each person in the
group. When they come to you, you should either cut up your credit
cards or tell the group why you aren’t ready. If you don’t have any
credit cards, tell the group why they should cut theirs up.

†† When someone cuts up a card, the whole class should applaud and celebrate!
Take the lead by applauding for every single card that is cut up.

†† Make sure everyone knows that cutting up a card does not actually close the account.
Anyone who cuts up a card will still need to call the issuer to officially close the account.

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Financial Peace University Coordinator Guide

ENDING THE CLASS

Class Wrap-Up (3 minutes)

†† Review This Week’s Homework on page 111 of the Member Workbook.
Encourage everyone to spend time working with the online Investing and Retirement
Planning calculators in FPU Central by saying:
The online calculators are great tools, not only for planning but
also for dreaming. Go home and plug some numbers into these
calculators to see what your future could look like!

†† Make sure the FPU Attendance Sheet is complete and turned in.
†† Tell everyone that next week’s lesson is Real Estate and Mortgages.

Dave and Chris discuss how and when to buy, sell and rent, as well as explain all the different
mortgage options available.
†† Remind everyone that if they miss a class they can view lessons online at FPU Central.
†† Encourage everyone to be gracious guests.
Return the chairs to their original places and make sure any garbage is removed.
†† Class dismissed!

After Class

†† Complete the items on the After-Class Checklist on page 17 of this guide.
†† Email your class members during the week.

Thank them for their weekly commitment to participate in the class, and encourage them
to finish strong with only two weeks to go!

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This Week’s Homework

Personal finance is 20% head knowledge and 80% behavior. Take charge of
your financial behaviors by completing the following tasks this week. Be sure
to work with your spouse or accountability partner where noted!

Calculate your retirement needs.
Use the Retirement Planning Calculator in FPU Central to
determine how much you will need for a comfortable retirement
and how much you will need to save each month to reach that
goal. You can also use the Investing Calculator to see how small
changes in your savings plan today can make a huge difference
in your retirement later.

Calculate your college savings needs.
If college funding will be a part of your financial plan, use a
college planning calculator to determine how much you will
need for education expenses and how much you will need to
save each month to reach that goal.

Discuss your retirement plans.
Singles: Meet with your accountability partner and discuss your
retirement plans (and dreams). Review the calculations from
the Monthly Retirement Planning exercise together.

Married Couples: Call a Budget Committee Meeting to discuss
your retirement plans (and dreams). Commit to reach those
goals as a team.

Reading Assignment: Read the “From Fruition to Tuition” chapter in
Dave Ramsey’s Complete Guide to Money.

Prepare for next week.

Get ready by reading ahead to next week’s lesson!

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Retirement & College Planning 111

FINAL WORD

Top Questions Parents
Ask About College Savings

College savings plans Flexible, state-sponsored 529 Q How much can I invest?
can limit how you use plans also let you save and use If you plan to open your
your money. Picking the your college savings tax free
right one can make a and can be a good choice in the A college fund with $2,000
huge di erence. right situation. Here are a few
questions to help you understand or less, go with an ESA. You
TODAY’S PARENTS believe they the role each one can play in your can contribute up to $2,000
owe their children a full ride to college savings plan. per year per child in an ESA. If
college at all costs. While college is you want to save more, or if the
important, it does not rank above Q How can I use the money? child’s parents make more than
retirement or the emergency fund. Obviously, you’re opening $200,000 per year, a 529 has
And it is not a reason to go into debt. no annual contribution limit or
A this account to pay for income restrictions. You can also
Once you reach Baby Step 5 and open both, using the first $2,000
it’s time to start saving for college, educational expenses, but each to start the ESA (if the parents
you have several options. We plan defines that differently. ESAs meet the income requirements)
recommend investing in good allow you to use the funds for and putting the rest into the 529.
growth stock mutual funds and an private elementary, middle or This is a good option if your child
Education Savings Account (ESA). high school tuition as well as post- is planning on getting advanced
The ESA turbo-charges your college secondary education. You can degrees or attending medical or
savings with tax-free growth and also pay for off-campus housing, law school. Contribution limits
withdrawals as long as you spend computers and other education- and eligibility requirements are
the money on education. related expenses with your ESA. a moving target, so be sure to
But eligible expenses for a 529 check our online resources for
plan are limited to college tuition, the most up-to-date information.
room and board, school-required
books and supplies.

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112 Retirement & College Planning

Q How much control do I have? hunting their new part-time job. KEY TERMS
Like a Roth IRA, you can invest Stay focused on saving, and don’t
panic. Remember, college is about 401(k): Defined contribution
A in any mutual fund in any education, not pedigree. And student plan offered by a corporation,
loans are off-limits! which allows employees to set
allocation you wish in your ESA— aside tax-deferred income for
that’s what makes an ESA a better Start Saving Today! retirement purposes
option than the 529 for most people. Just like investing for retirement,
You can also change funds as often the sooner you start saving for your Direct Transfer: Movement
as you want. Most 529 plans are kids’ college, the more money you’ll of tax-deferred retirement plan
limited to one fund family and restrict have when the time comes. If you’re money from one qualified plan
the number of investment strategy ready for Baby Step 5, don’t wait any or custodian to another; results
changes you can make each year. longer! An investing professional in no immediate tax liabilities
will help you make a college savings or penalties but requires IRS
Q What if my child doesn’t go to plan and help you choose mutual reporting
Acollege or gets a free-ride scholarship?
Diversi ication: Spreading
If the beneficiary of the ESA or money around among different
529 doesn’t use the money by types of investments to
age 30, you can change beneficiaries minimize risk
at any time and as often as you want.
Siblings, parents, nieces, nephews— Individual Retirement
pretty much anyone in the family Arrangement (IRA): A tax-
is eligible. However, if you decide to deferred arrangement for
use the money for non-educational individuals with earned income
expenses, you’ll pay a 10% penalty and their non-income-producing
plus income taxes on the distribution. spouses; growth is not taxed
Some good news though: If your until money is withdrawn
child’s expenses are covered by
scholarships and you withdraw Liquidity: The availability of
money for non-qualified purchases, saved or invested money; i.e., a
the 10% penalty does not apply. checking account is “liquid,” as
money can be easily withdrawn
“The sooner you start saving for your at any time

kids’ college, the more money you’ll have Risk: The degree of uncertainty
of return on an investment
when the time comes.”
Rollover: Moving funds from
Q What if my kid is already a funds for your ESA and/or 529. To a tax-deferred retirement plan
Ateenager, and I’m just getting started? help you sort through your options, from one qualified plan
you can work with a SmartVestor Pro or custodian to another; incurs
If you have five years or less in your area. This professional can no immediate tax liabilities
before your teen starts college, answer your questions and help you or penalties but requires IRS
you need to take a savings, rather understand what you’re investing in. reporting
than investing, approach. That means
piling up cash in a money market Roth IRA: A type of retirement
fund instead of using an ESA or 529. account funded with after-tax
Your kid can also help make up the dollars that subsequently grows
difference by making scholarship tax free

Share: An individual piece of
ownership in a publicly traded
company

Coordinator 177

Retirement & College Planning 113



Financial Peace University Coordinator Guide

REAL ESTATE &
MORTGAGES

VIDEO TIME: 59 MINUTES

Expect This
In this week’s lesson, Dave shares from more than 30 years of experience in real
estate, teaching your class when and how to rent, buy and sell.
Chris will also unpack all the different mortgage options available and offer our
suggestion for the best way to buy.
This week’s class activities include a Breakout Group Exercise for smaller groups to
work through two real estate case studies and one general-knowledge FPU activity.

Do This
Review the Before-Class Checklist on page 16 of this guide.



Financial Peace University Coordinator Guide

WELCOME & REVIEW

Do This (5 minutes)

†† Welcome everyone back!
Tell them how much fun you’ve had the past eight weeks as you all work toward financial
peace together!

†† Budget check!
Quickly walk through and check everyone’s budget by “finding the zero,” as we’ve done the
past few weeks.

†† Review last week’s material.
Read this question aloud to the class:
Part of your homework last week was to use the Monthly
Retirement calculator online to determine how much money
you’ll need for a comfortable retirement. With that in mind, did
you decide to make any changes to your current financial plan?

†† Instruct everyone to turn to page 116 of their Member Workbook.
†† Circulate the FPU Attendance Sheet for members and guests to sign during the video.

Start the Video

The following pages match the Member Workbook so you can follow along with your class.

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Tell Your Story

Week 8
Does your current housing situation feel

more like a dream or a nightmare?

DAtE

REAL ESTATE

AND MORTGAGES

KEEPING THE AMERICAN DREAM FROM
BECOMING A NIGHTMARE

Homeownership is one of the biggest blessings we could ever experience.
However, learning to navigate through the minefield of real estate and
mortgages can be pretty daunting. With 40-year loans, interest-only
options and reverse mortgages on the market, it’s more important than
ever to learn the ins and outs of personal real estate.

In Real Estate and Mortgages, Dave shares his most effective tips for
buying and selling your home, and Chris breaks down the different
mortgage options to reveal the best—and worst—ways to buy a house.

bYyuboodyuug’edavtocence’ibvdteeeeprnnyaty.dmiTolofihngftieshnyotfonluoylrrywhshooearuvpksepienreagnelsatryhilefayatrs. 6BABY STEP Pay off the house
EARLY .
Renting

There is nothing wrong with RENTING for
a little while. This demonstrates PATIENCE

and wisdom.

However, renting should be a temporary situation, not
your long-term plan!

And Jesus said to When to Buy
him, “Foxes have
holes and birds of Buying a house when you’re not ready can be a disaster.
the air have nests, You’re only ready to buy if you are out of debt and
but the Son of Man have a fully funded emergency fund of 3–6 months of
has nowhere to lay expenses. At that point, you can save for a big down
His head.” payment. We call that Baby Step 3b.

—LUKE 9:58

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116 Real Estate & Mortgages

Why to Buy An inflation hedge is
simply an investment
• It’s a FORCED savings plan. that is going up in value,
which helps you stay
• It’s an INFLATION hedge. ahead of the rising cost
of inflation.
• It grows virtually TAX FREE .
I had rather be on my
What to Buy farm than be emperor
of the world.
Buy in the BOTTOM price range of the
– GEORGE WASHINGTON
neighborhood, and never overbuild your neighborhood
through home additions and improvements. Whether you’re buying
or selling a home, you
Homes appreciate in good neighborhoods and are should only work with an
agent who has the heart
priced based on three things: LOCATION , of a teacher. We can help
LOCATION and LOCATION ! you find an Endorsed
Local Provider (ELP) in
If possible, buy near WATER or with your area.

a VIEW .

Buy bargains by OVERLOOKING bad

landscaping, ugly carpet, outdated wallpaper and the
Elvis print in the master bedroom.

Always buy a home that is (or can be) attractive from

the STREET and has a good basic FLOORPLAN .

daveramsey.com/find-elp

Coordinator 185
Real Estate & Mortgages 117

the MLS is simply a tool How to Buy
agents use to search
frequently updated Real estate AGENTS have full access to the
listings of available
properties. Access to the Multiple Listing Service (MLS) and can make house
MLS through an agent hunting easier.
can open up a world of
new options for a buyer. Search for a home using INTERNET listings.

Always get a land SURVEY if buying more than a

standard subdivision lot.

Have the home inspected mechanically and structurally

by a certified HOME INSPECTOR .

Get an APPRAISAL , but understand that it is just

an “opinion of value.”

According to the TITLE insurance insures you against an unclean
Census Bureau, 31%
of homeowners have title, which is when your property ownership is called
no mortgage debt of into question. It is a must-buy.
any type.

Mortgage Guidelines debt.

First, remember to HATE

The best house payment is one The best plan is the 100 %-down plan.
really, really big one up front,
and then no more after that! Get a monthly payment of no more than 25 % of your
take-home pay on a 15-YEAR fixed-rate loan, with at
Pay cash! It is possible! least 10 % down.

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118 Real Estate & Mortgages

Why choose a 15 YEAR mortgage? I knew a 15-year
fixed-rate mortgage
(Figures based on 6% APR) was the way to go, but
now I really understand
Let’s say you buy a $225,000 house... why it is so important on
many levels.
15-year mortgage = $1,899/month —Larry
30-year mortgage = $1,349/month
btuthpeYrdoomougnros’arthtmogpuatalgdhyeadataesffpiaeenyeaistrfleioyltryaospsfoamfpyoeesoassfrpifbleylce!i,al
Fast-forward 10 years... Just make extra principal
15-year mortgage has a balance of $98,210 payments on your own.
30-year mortgage has a balance of $188,292
Coordinator 187
During that 10 years, you would have paid almost $162,000 on the Real Estate & Mortgages 119
30-year mortgage, but only paid down the loan by $36,708!

Horrible Mortgage Options

• ARMs – Adjustible-Rate Mortgages

ú The concept of the ARM is to TRANSFER the

risk of higher interest rates to the

BORROWER , and, in return, the lender gives

a lower rate now.

ú If you have an ARM, refinance immediately!

• Of course, INTEREST - ONLY loans are a

bad idea because you are only paying the interest.

• REVERSE Mortgages

• ACCELERATED , or Bi-Weekly Payoff

Program

• TAX Advantages of a Mortgage

Where’s the TAX advantage?

Some people keep a mortgage for the tax break. Let’s check the math.

You’d pay $10,000 in interest on a $200,000 mortgage at 5%, so you’d save about
$2,500 in taxes per year. That means all you’re doing is sending $10,000 to

the bank instead of sending $2,500 to the IRS. Where’s the “advantage” in that?

PMI is there to protect Basic Ways to Finance a Home
the lender, not you.
It costs about $70 a CONVENTIONAL loans are usually through
month per $100,000
borrowed. So if you have Fannie Mae and are privately insured against default.
a $200,000 mortgage
with PMI, you’re paying PMI is PRIVATE mortgage insurance.
about $140 extra every
month. FHA (Federal Housing Administration) loans are

However, if you put 20% insured by HUD—the federal government.
down or pay your loan
down to 80% loan-to- • Down payments are as low as 3 % and are used on
value, you can drop or
remove PMI. Check with lower-priced homes.
your mortgage company.
• These loans are currently MORE expensive

than conventional financing and should be avoided.

188 Coordinator
120 Real Estate & Mortgages

VA loans are insured by the U.S. Department of Thinking about
refinancing your
Veterans Affairs. mortgage to get a better
rate? This bonus online
• With a good down payment, the conventional loan is article will walk you
through the process.
a BETTER deal than the VA.
daveramsey.com/fpu/refinance
OWNER financing is when you pay the owner
3 C’s of Home Buying:
over time, making him or her the mortgage holder. • Be cautious
• Be careful
• This is a GREAT way to finance because you • Be coherent

can be creative in the structure of the loan. To qualify for manual
underwriting, you’ll
• Be extremely careful with owner financing—and need a solid, stable
make sure the whole deal is in writing! employment history as
well as records showing
Challenges and Opportunities at least two years of
paying rent and utilities
If you do what we teach, your credit score will early or on time.
eventually hit zero, which means you’ll need to
Coordinator 189
find a mortgage lender that does MANUAL Real Estate & Mortgages 121

underwriting.

Lenders still do manual underwriting, but they’re
getting fewer and farther between because it takes
some extra effort on their part. If one bank tells you
they can’t do it, just keep looking.

When you owe more on your house than it is

currently worth, you are UPSIDE DOWN

on your home.

In a SHORT sale, the home is sold for less than

the amount owed, and the lienholder agrees to accept
the proceeds from the home sale as payment in full
without recourse.

TyhIofouiiusfytoiwotsouehfaestaihhhgeoonbrmeamrdediobnuhmlepeaoysrfa.tonlIgordtsattgudhenoveeesatslilnhotua’iuectnaa,otmlrtiawohnntaeo.tynte.r Willfully walking away from a mortgage—even though
you have the money to make the payments—is called

STRATEGIC default.

Selling a Home

When selling a home, you should think like a RETAILER .

The return on investment of fix-up dollars is

ENORMOUS .

The most important aspect of preparation is attention to

CURB appeal.

When selling your home, make sure that it is listed on

the INTERNET .

90% of buyers use the When selling, statistical research has found that the best
internet to look at homes
as part of their house real estate agents are worth MORE than they
hunting. that means
9 out of 10 buyers will cost, unless you are a seasoned pro.
know all about your
house before they ever
even make it to the curb.

—Better Homes
and Gardens

190 Coordinator
122 Real Estate & Mortgages

The exposure through the MULTIPLE Listing ANSWER KEY
Service is worth it.
RENTING BORROWER
When selecting an agent, do not rely on PATIENCE INTEREST ONLY
FORCED REVERSE
FRIENDSHIPS or RELATIVES . INFLATION ACCELERATED
TAX TAX
You should INTERVIEW at least three real FREE CONVENTIONAL
BOTTOM PRIVATE
estate agents. LOCATION FHA
LOCATION 3%
Have your agent do a detailed Comparative MARKET LOCATION MORE
WATER VA
Analysis (CMA) to accurately price your home. VIEW BETTER
OVERLOOKING OWNER
Offering a home warranty will typically not make a sale. STREET GREAT
If the buyer asks for a warranty, then consider it with FLOOR PLAN MANUAL
the offer. AGENTS UPSIDE
INTERNET DOWN
SURVEY SHORT
HOME STRATEGIC
INSPECTOR RETAILER
APPRAISAL ENORMOUS
TITLE CURB
HATE INTERNET
100 MORE
25 MULTIPLE
15 YEAR FRIENDSHIPS
10 RELATIVES
ARMS INTERVIEW
TRANSFER MARKET

Pssst...

The video is ending soon. Turn the page
to find out what happens next.

One-Minute Takeaway

What jumped out at you in this lesson? How can this affect your story?

Financial Peace University Coordinator Guide

DISCUSSION & ACTIVITY

Break Into Small Groups

†† If your class is larger than 20 people, split the class into multiple discussion groups with
a co-coordinator for each group.

†† Arrange the chairs in a circle for the small group discussion.

Small Group Discussion (8 minutes)

†† Take out the Question Cards numbered 1–3.
Distribute all three to individuals in the group.

†† Direct everyone’s attention to page 124 of their Member Workbook and say:
I’ve passed out a few cards with numbers on them to help with
our small group discussion. Whoever has Card 1 will read the
first question, and we’ll all talk about it together. Then whoever
has Card 2 will read the second question. We’ll keep going until
we’ve covered all the questions. We’ve got about eight minutes,
so let’s get started.

192 Coordinator Only

Small Group Discussion

true life-change happens when you open up and work through this
material together. Break up into discussion groups of no more than 20
people to talk through the following questions. Be honest in your answers!

1 Many American families are currently living in a home that
they cannot afford. What are some situations that might cause
someone to become “house poor,” and what are some solutions?

2 There are often two extremes when it comes to renting: Some
people think it is always a waste of money, and others choose
renting as a long-term way of life. When is it a good idea to rent
instead of buy? Why are we sometimes in such a rush to buy, even
when we can’t afford it?

3 Look at the “Housing” category on your zero-based budget.
Based on your overall financial condition, would you consider
your housing situation to be a blessing or a curse? Are you
living the American Dream or teetering on the edge of an
American Nightmare?

124 Real Estate and Mortgages Coordinator 193
Real Estate and Mortgages 124

Financial Peace University Coordinator Guide

BREAKOUT GROUP EXERCISE

It’s time for another breakout group exercise! This allows smaller groups
within your class to take the material a step further with practical application.

Real Estate Case Studies and “Ask Dave” (13 minutes)

†† Instruct your small group to break into groups of 4–5 people.
Married couples should stay with their spouse in these breakout groups.

†† Give instructions.
Tell the group what they’ll be doing by saying:
You will use the next 13 minutes to apply what you’ve just
learned by working through three case studies. Turn to page 125
in your workbooks and get started. I’ll be walking around the
room if you need help.

†† Have each group complete the three case studies on pages 125–127 of the Member
Workbook and respond to the discussion questions for each one.
You should walk around the room as they complete the activity to help anyone as needed.
If time allows near the end of the activity, call the groups back together and have each
group report on their findings.

†† Wrap up the exercise.
Get some feedback from the groups by asking:
Did the first two case studies help you identify any areas in your
own housing situation that need some adjustment?

194 Coordinator Only

V

Breakout Group Exercise

Break into smaller groups of 4–5 people to work through the following activity.
Choose a leader to read through the exercise aloud and keep the group on
task. Your coordinator will call the groups back together to report your findings.

Case Study 1

This is an especially exciting season in Mark and Julia’s life together. They have
been married for five years, have two kids, and have spent the last three years
getting out of debt and building up their emergency fund. They are now financially
ready to stop renting and purchase their first home. The average home price is
$200,000 in their area, and they are committed to staying within the guidelines
they learned during Financial Peace University.

As a group, let’s help them make a wise financial decision.
Here are some details about their finances:

Mark and Julia have a monthly take-home pay of $4,000.

They have $10,000 in their Baby Step 3 emergency fund.

They have $15,000 set aside for a down payment
(not including their emergency fund).

DISCUSSION QUESTIONS

1. Using the simple calculation taught in FPU, determine the maximum monthly
payment that Mark and Julia can afford.
Answer: $1,000 (25% of their take-home pay)

2. If Mark and Julia decide to purchase a $200,000 home, what is the minimum down
2. IpfaMyamrkenatntdheJuyl’lilandeeecdidaecctoorpduinrcghtaosethae$m20or0tg,0a0g0e hgoumideel,inwehsaotuistltinhedminintihmisulmessdoonw?n

payment they’ll need according to the mortgage guidelines outlined in this lesson?
3. AJunlisawhears:c$a2l0cu,0la0te0d(t1h0a%t itowf $ill2t0ak0e,0si0x0m)ore months to save up a sufficient down

payment. Mark believes they should pull money out of their emergency fund and
3. pJualyiaithbaascckatlcoutlhaetemdstehlavteist wlatilel rt,abkuetsJixulmia odriseamgroenetsh. Esxtoplsaainvetouypoaursugfrfoicuiepnwt dhoawt ynou

tphainymk tehnety. Mshaorkulbdedlieovaensdthwehyys. hould pull money out of their emergency fund and
pay it back to themselves later, but Julia disagrees. Explain to your group what you
think they should do and why.
Answer: This is not an emergency. If they use the emergency fund to buy the
house, they will have no cash on hand to cover any unforeseen expenses that
will surely come up during the move.

Coordinator 195
Real Estate and Mortgages 125

W

BREAKOUT DISCUSSION

Case Study 2

Brandon and Erin are in their mid-twenties and have been married for two years.
They are both working and enjoy their careers, and they have decided to wait a
few more years before having children. At that point, however, Erin wants to leave
the workplace and be a stay-at-home mom. With this in mind, the couple wants to
make the most of their dual incomes while they can.
Let’s take a look at some specific elements of their finances:

Income 1: Brandon is an Audio Engineer at a local nonprofit radio station,
and, after tithing, he brings home $2,600 per month.

Income 2: Erin is an Advertising Manager, and, after tithing, she brings
home $4,000 per month.

Savings: The couple is completely debt-free with a full emergency fund.

Rent: They currently rent a one-bedroom apartment for $600 per month.

DISCUSSION QUESTIONS

1. Brandon and Erin have committed to live solely off of his income and save all of her
income to buy a home with FPU’s “100%-Down Plan.” Assuming their incomes stay
the same, how long will it take for them to save up to pay cash for a $160,000 home?
Answer: 40 months

2. When Erin told her father what she and Brandon planned to do, he got extremely
2. fWruhsetrnatEerdinwtoitlhdthheermfa. tHherdwoehsant’tshuendaenrdstBarnadndwohnypthlaenyndeodnt’ot udpog, hraedgeotthexirtroeldmeerlycars

afrnudst“rlaivtedawlitittlhe”twhehmile. Htheedy’oreesyno’tuunngdaenrdstastnildl hwavhey twheoyindcoonm’t eusp.gIfraydoeu twherireoEldriner, wcahrast
wanodul“dlivyeoaulittetlel h” wimh?ile they’re young and still have two incomes. If you were Erin, what
would you tell him?
3. Brandon and Erin’s friends often take expensive vacations and go out to eat several
3. nBirgahntdsoanwaenedkE. Drinis’scufrsiesnsdosmoeftwenaytaskBeraenxdpoensaivnedvEarcinatcioansdaenfedngdothoeumt tsoeelvaetsseavgearinasl t
tnhigehttesmapwtaeteiokn. DtoiscsutrsasysforommetwheayirspBlarnan“jduostntahnisdoEnreinticmaen”daesfdeni dertehnetmospeplvoerstuangitaieinsst
athriesete. Hmopwtactiaonntthoesytrkaeyefprotmhetirhderirepamlanin“jufrsotntht oisfothnemtimaned” asstadyiffgearezneltleoipnpteonrtsuenoitvieesr
tahriesec.oHuorswecoafnmthaney ykeeaprs?their dream in front of them and stay gazelle intense over
the course of many years?

196 Coordinator
126 Real Estate and Mortgages

BREAKOUT DISCUSSION

Case Study 3

The following questions come from actual radio calls that Dave has taken
on his daily radio program, The Dave Ramsey Show. While they may not be
specific to real estate, these calls cover several different topics that we have
discussed over the past several weeks.

As a group, your objective is to answer the calls the way you think Dave
would. Once all the breakout groups have finished, each group will share
their answers.

When you get home, go online to FPU Central and listen to the audio of these
actual calls to hear Dave’s full answers.

QUESTIONS

1. “How much life insurance does my husband need to carry if he makes
$60,000 a year?” —Suzanne on Facebook

2. “My husband and I have four small children, and we are paying $600 a
month for our health insurance—which we barely use. We are seriously
considering canceling the whole policy and just saving up some cash
to pay for medical care. What do you think?”
—Audrey in San Francisco

3. “Dave, why are you so against people buying brand-new cars unless
they have a $1 million net worth?” —Todd on Facebook

4. “Dave, my wife has house fever! She’s shopping online and wants to
finance it 100%. She’s angry with me because I won’t agree to do it.
What are some ways I can get through to her about this?”
—Alan in Amarillo

5. “Every year I get a large tax refund, and I’ve heard you say that it’s not a
smart thing to do. Can you help me understand why?”
—Jen on Facebook

Get Dave’s answers.

See the following pages for summaries
of Dave’s on-air radio answers.

Coordinator 197
Real Estate and Mortgages 127

Financial Peace University Coordinator Guide

CASE STUDY 3 ANSWERS

Use these answers to help your members understand how Dave would
respond to each question. These are summaries of Dave’s actual radio calls.

1. “How much life insurance does my husband need to carry if he makes $60,000 a
year?” —Suzanne on Facebook
ANSWER:
In your husband’s salary range, we recommend buying a term policy for $600,000.
If he dies, you can invest that money and draw about $60,000 a year off the growth
without cutting into the principal. That will replace his lost income.

And if you are a stay-at-home mom, you should have anywhere from $250,000 to
$400,000 on you, too, so your husband would have some extra income to replace
part of what you do for your home and children.

2. “My husband and I have four small children, and we are paying $600 a month
for our health insurance—which we barely use. We are seriously considering
canceling the whole policy and just saving up some cash to pay for medical care.
What do you think?” —Audrey in San Francisco
ANSWER:
Health insurance is expensive, but you can’t afford to go without it. One incident and
you can financially be ruined. If you are unhappy with the price you are paying, shop
around. You might be able to get a better price as an individual on the open market.
Just be sure to use an agent with the heart of a teacher. To find one of our Endorsed
Local Providers in your area, check out daveramsey.com/find-elp.

3. “Dave, why are you so against people buying brand-new cars unless they have a
$1 million net worth?” —Todd on Facebook
ANSWER:
Unless you are a millionaire, you simply can’t afford it. New cars lose 60% of their
value in the first four years. When you buy used, the original owner has already
eaten the cost of depreciation. You, on the other hand, get an awesome four-year-old
car for a great deal—one well below the expensive wholesale prices of new cars.

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Financial Peace University Coordinator Guide

CASE STUDY 3 ANSWERS

Use these answers to help your members understand how Dave would
respond to each question. These are summaries of Dave’s actual radio calls.

4. “Dave, my wife has house fever! She’s shopping online and wants to finance it
100%. She’s angry with me because I won’t agree to do it. What are some ways I
can get through to her about this?” —Alan in Amarillo
ANSWER:
Actually buying a house is just the first in a long list of things you’ll have to pay
for. It costs more to own a home than it does to rent in the short term, because
you’re responsible for all the repairs. If you move into a house without having an
emergency fund or down payment, I can almost guarantee that the HVAC will blow
out or the roof will need a repair within the first year. When that happens, you’ll have
to pay for it; there won’t be a landlord to take care of it.
Find a way to help your wife understand that she is playing with your future lives and
happiness. The only way you should be buying a home is to wait until you have your
emergency fund in place, plus a good down payment.

5. “Every year I get a large tax refund, and I’ve heard you say that it’s not a smart
thing to do. Can you help me understand why?” —Jen on Facebook
ANSWER:
Let’s say you got a $4,800 tax refund last year. That breaks down to $400 a month
you’re overpaying in taxes. That means you are actually giving the government an
interest-free loan every single month!
If you happened to have some debt on a credit card at 18%, and you used that $400
a month to pay off your debt instead of loaning it to the government, you would
save almost $900 in interest!

Coordinator Only 199

Financial Peace University Coordinator Guide

ENDING THE CLASS

Plan a Party! (2 minutes)

†† Most classes like to celebrate the end of their FPU class by throwing a small party.
We recommend making it fun and festive, but there’s no need to go overboard. Generally, a
variety of snacks and drinks is all you need to set the final class apart as a special occasion.
Work with volunteers in your class to coordinate a small party for next week.

Class Wrap-Up (3 minutes)

I†† Review This Week’s Homework on page 128 of the Member Workbook.
Pay special attention to the assignment to calculate total debt paid
off and money saved over the past eight weeks of FPU. Members
will need that information for an activity next week.

†† Make sure the FPU Attendance Sheet is complete and turned in.
†† Tell everyone that next week’s lesson is The Great Misunderstanding, Dave’s lesson on giving.

This is an extremely powerful lesson filled with biblical insights into how and why we should
be cheerful givers. It is the perfect way to end Financial Peace University!
†† Remind everyone that if they miss a class they can view lessons online at FPU Central.
†† Encourage everyone to be gracious guests.
Return the chairs to their original places and make sure any garbage is removed.
†† Class dismissed!

After Class

†† Complete the items on the After-Class Checklist on page 17 of this guide.
†† Check the roll for people who may have dropped out.

If there is anyone on your class roll who has not attended regularly or who dropped out
at some point, give them a call to tell them that you’ve missed them and make sure they
know about the final lesson celebration.

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