Download - c Lil Lesson Plan
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LessonPlan1:ResponsibleMoneyChoicesObjectives:Studentswill
Understandthedifferencebetweenneedsandwants. Learnhowspendingmoneyhasopportunitycosts. Identifystrategiesforprioritizingneedsandwantswhensettingfinancialgoals.
VaultExtension:ThislessonplanreferstotheMakingYourOwnMoney
DecisionsactivityintheResponsibleMoneyChoices
conceptgroupoftheVaultprogram.
MakingYourOwnMoneyDecisionsshouldbe
completedbythestudentsbeforethediscussionand
activityaredoneinclass.
Overview:ThislessonplanwillteachGrade46studentsthedifferencebetweenneedsandwantsusing
informationfromtheVaultprogram.Studentswilllearntoindependentlyidentifyneedsandwantsin
theircurrentlife,aswellasthoseforadults.Thelessonwillalsoincludestrategiesforprioritizingneeds
andwants.
Materials:
Whiteboardorchalkboard Notebookpaper Pensorpencils
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Vocabulary:ShorttermgoalAgoalthatcanbeachievedinashortamountoftime.Itcanbeafewdays,weeks,or
months.
LongtermgoalAgoalthatcanbeachievedinalongeramountoftime.Itcanbemonths,years,or
evenanentirelifetime.
WantSomethingyoudliketohavebutwillbeokaywithout.
NeedSomethingyoutrulycantlivewithout.
OpportunitycostThecostwepaywhenwegiveupsomethingtogetsomethingelse.
DiscussionTopics:
1. Whatarefinancialdecisions?Whyaretheyimportant?Whattypeofinformationdoyouneedtomakeagoodfinancialdecision?
2. Whatisthedifferencebetweenawantandaneed?UseanexamplefromtheVaultactivityMakingYourOwnMoneyDecisionsofawantandaneed,andexplainwhatdeterminestheir
classification.
3. Whatisagoodwaytodetermineifyouneedsomething,orjustwantit?WhataresomereasonstoNOTpurchasesomethingyoudontneed?
Activity:Afterdiscussingfinancialdecisionsandneedsandwants,tellstudentstothinkabouttheirowndecision
makingprocessforspendingmoney.Thegoalisforthestudentstounderstandtheirownneedsand
wantsandhowtoprioritizetheirspendingaccordingly.
1. Askstudentstotakeoutapieceofpaperandapenorpencil,anddrawalinedownthemiddleofthepaper.Onetheleftside,theyshouldwritetheheaderNeedsandontherightsidetheyshould
writetheheaderWants.
2. Next,askstudentstomakealistineachcolumnofneedsandwantstheyhavespentmoneyonrecently,orthattheirparentshavespentmoneyontheirbehalf.
3. GototheboardandwriteNeedsononesideoftheboardandWantsontheother.4. Askforstudentvolunteerstocometotheboardtowriteoneneedandonewantineachcolumn.
Aftereachvolunteerwritestheneedandwant,asktheclassiftheyareclassifiedcorrectly,andwhy.
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5. Oncethelistiscomplete,openadiscussionabouthowtoprioritizeneedsversuswants.Bringtheconceptofopportunitycostsintothediscussion,askingstudentstoexplainhowpayingforawant
maymeannothavingenoughmoneyforanotherwant,ormoreimportantly,foraneed.Ask
studentstocometotheboardtocrossoutwantstheywouldgiveupforanotherwantorneed.
6. Forthelastpartofclass,havestudentswritedownsomespendinggoalsthatwillrequiresavingmoney,forexample,aniPod,acomputer,oranewpet.Askstudentstorefertothelistsofwants
ontheboard,andaskthemtoraisetheirhandstogiveexamplesofwantsthatcouldhavebeen
foregoneinordertosavemoneyforalargergoalpurchase.Alsoaskstudentsifthegoalsareshort
termorlongterm,andtoexplainwhy.
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Standards:
ThislessonplanfallsundertheFinancialResponsibilityandDecisionMakingsectionoftheJump$tart
StandardsforFinancialLiteracy.Moreinformationregardingthestandardsfollows.Thebolded
standardsarecoveredinthislessonplan.OverallCompetencyApplyreliableinformationandsystematicdecisionmakingtopersonalfinancialdecisions.Standard1:Takeresponsibilityforpersonalfinancialdecisions.
A. Listexamplesoffinancialdecisionsandtheirpossibleconsequences.B. Identifywaystobeafinanciallyresponsibleyouth.
Standard2:Findandevaluatefinancialinformationfromavarietyofsources.
A. Giveexamplesofsituationsinwhichfinancialinformationwouldleadtobetterdecisions.B. Identifysourcesoffinancialinformation.
Standard3:Summarizemajorconsumerprotectionlaws.
A. Compareproductreturnpoliciesatlocalretailstores.
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Standard4:Makefinancialdecisionsbysystematicallyconsideringalternativesandconsequences.
A. Explainhowlimitedpersonalfinancialresourcesaffectthechoicespeoplemake.B. Rankpersonalwants/needsinorderofimportance.C. Setmeasurableshorttermfinancialgoals.D. Outlinethestepsinsystematicallyevaluatingalternativesandmakingadecision.E. Applysystematicdecisionmakingtoashorttermgoal.
Standard5:Developcommunicationstrategiesfordiscussingfinancialissues.
A. Giveexamplesofhowmembersofpreviousgenerationsspentmoneyaschildren.B. Analyzethevaluesandattitudesofmembersofpreviousgenerationsfromtheirpersonal
storiesaboutmoney.
Standard6:Controlpersonalinformation.
A. Listtypesofpersonalinformationthatshouldnotbedisclosedtoothersandthepossibleconsequencesofdoingso.
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LessonPlan2:IncomeandCareersObjectives:Studentswill
Discussandexplorecareerstheyareinterestedin. Learnhowpersonalinterestscanrelatetoprospectivecareers. Researchdifferentcareerpathsbasedoninterestsandtalents.
VaultExtension:
ThislessonplanreferstotheYourCareeractivityin
theIncomeandCareersconceptgroupoftheVault
program.
YourCareershouldbecompletedbythestudents
beforethediscussionandactivityaredoneinclass.
Overview:
ThislessonplanwillteachGrade46studentshowtoexplorecareeroptionsusinginformationfrom
theVaultprogram.Studentswilllearntoidentifyandresearchpotentialcareersandtorelatecurrent
interestsandtalentstothosecareers.
Materials:
Whiteboardorchalkboard MyFutureletterforeachstudentfromVaultprogram ExploringCareerInformationwebsiteathttp://www.bls.gov/k12/ Notebookpaper Pensorpencils
Vocabulary:
JobWorkyoudoformoney.
CareerSomethingyoubuildbygoingtoschoolandworkingjobsrelatedtothecareeryouwant.
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EntrepreneurApersonwhostartshisorherownbusiness.
DiscussionTopics:1. Whatisthedifferencebetweenajobandacareer?Namesomejobsandsomecareersyouare
interestedin,referringtotheMyFutureletteryoufilledoutintheVaultprogram.Note:TheMyFuturelettercanbeaccessedintheResourcessectionofthecourseorintheToolssectionofthestudentportal.
2. Discusscareersthatpeopleyouknowhavehad.Talkaboutwhytheymighthavechosenthosecareers.
3. Giveexamplesofdifferentinterestsandtalentsthatcouldberelatedtocareersthatwerementionedpreviously.Alsodiscusswhattypesofeducationorjobsmightbeusefulinbuildingthose
careers.
Activity:
Afterdiscussingcareers,jobs,andrelatedinterests,explaintostudentsthattheclasswillbeexamining
thesevariouscareersalittlemoreclosely.Thiswillincludedoingsomeresearchtohelpfigureoutwhat
typesofjobs,interests,andtalentsmightberequiredorusefulforthatcareer.Thegoalisforthe
studentstoidentifycareersofinterestanddetermineiftheymighthavetheinterestsortalents
necessaryforthatcareer,orhowtheymightacquirethenecessaryskillsforthatcareer.
1. AskstudentstotakeouttheVaultMyFuturelettertheycompleted.Calloneachstudent,andwritethestudentscareerinterestontheboard.Ifacareerismentionedmorethanonce,indicate
thenumberoftimesthecareerwasmentionedratherthanwritingitontheboardmorethanonce.
2. Next,askstudentstodivideintosmallergroupsbasedoncareerinterests.Forgroupsofone,combinethestudentwiththecareerthatismostsimilar.
3. Askeachgrouptodiscusswhattypesofeducation,jobs,interests,andtalentsmightberelatedtothecareertheyhavechosen.Writetheirsuggestionsontheboardnexttotherelevantcareer.Ask
eachgrouptowritedowntheassociatedinterestsandtalentsfortheircareerchoice.
4. ThenaskeachgrouptoresearchthecareertheyhavechosenattheExploringCareerInformationwebsiteathttp://www.bls.gov/k12/.Studentswillhavetousetheirinterestsandtalentslistinorder
tofindthecareer.
5. OnceeachgrouphasfoundtheirchosencareerontheExploringCareerInformationwebsite,askthemtodevelopaCareerProfilethatincludesabriefexplanationofthecareer,aswellas
interests,talents,andeducationrequiredfortheircareer.
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6. EachgroupshouldthenchooseonememberasaPresenter,andthatpersonshouldstanduporgotothefrontoftheroomtopresenttheCareerProfilefortheirgroup.
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Standards:
ThislessonplanfallsundertheIncomeandCareerssectionoftheJump$tartStandardsforFinancial
Literacy.Moreinformationregardingthestandardsfollows.Theboldedstandardsarecoveredinthis
lessonplan.
OverallCompetencyUseacareerplantodeveloppersonalincomepotential.
Standard1:Explorecareeroptions.
A. Explainthedifferencebetweenacareerandajobandidentifyvariousjobsinthecommunity.B. Giveanexampleofhowanindividualsinterests,knowledge,andabilitiescanaffectcareerand
jobchoice.
C. Identifyatopicofpersonalinterestandresearchacareerrelatedtothattopicofinterest.D. Examineajobrelatedtoacareerofinterest.E. Giveexamplesofentrepreneursinthecommunity.
Standard2:Identifysourcesofpersonalincome.
A. Explainthedifferencebetweenawageandasalary.B. Identifyjobschildrencandotoearnmoney.C. Giveexamplesofsourcesofincomeotherthanawageorsalary.
Standard3:Describefactorsaffectingtakehomepay.
A. Definetaxandexplainthedifferencebetweensalesandincometaxes.B. Giveanexampleofhowgovernmentusestaxrevenues.
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LessonPlan3:MakingPlanswithMoneyObjectives:Studentswill
Learnhowabudgetisconstructedasaplanforspendingandsaving. Understandhowtoreadabudgetanddeterminewhetherthebudgetincludessufficient
revenueforthehouseholdexpenses.
Learnhowtoadjustbudgetsandprioritizeneedsandwantssothatthebudgetisbalanced.
VaultExtension:
ThislessonplanreferstotheSpendingandSaving
activityintheMakingPlanswithMoneyconceptgroup
oftheVaultprogram.
SpendingandSavingshouldbecompletedbythe
studentsbeforethediscussionandactivityaredonein
class.
Overview:
ThislessonplanwillteachGrade46studentshowtoreadanduseabudget.Studentswilllearnto
calculaterevenueandexpenses,andtheneedforsufficientrevenueforallexpenses.Studentswillwork
withabudgettoensurethatexpensesareinlinewithrevenue.
Materials:
VaultBudgetWorksheet Pensorpencils
Vocabulary:
ExpenseThecostofgoodsandservices.
IncomeMoneymadefromworking.
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BudgetAspendingplanpeoplemakeinordertomakesurethereisenoughincometocoverall
expenses.
BalancedbudgetAbudgetwithsufficientincometocoverallexpenses.
DiscussionTopics:
1. Discusswhatabudgetis,andhowitisusedasaspendingandsavingplan.Explainthedifferencebetweenincomeandexpenses.
2. DiscussthedifferenttypesofhouseholdexpenseslearnedaboutintheVaultprogram.Explainthedifferencebetweenexpensesthatareneedsandthosethatarewants.
3. Explainwhyitsimportantthatexpensesdonotexceedincome.Discusshowabudgetcanhelpwithmanagingexpenses,andcreatingsavings.
Activity:
Afterdiscussingbudgets,expenses,andincome,explaintostudentsthattheclasswillbeworkingona
budgettoovercomesomespendingchallenges.Thegoalisforthestudentstounderstandhowbudgets
canbeeffectiveinmakingaplanforspending,andformanagingmoneyingeneral,andasatooltohelp
prioritizewantsandneedsandhelpcreatesavings.
1.Explaintostudentsthattheywillbedoinganinclassexercisethatinvolvesworkingonabudget.Pass
outtheVaultBudgetWorksheettoeachstudent.Askthestudentstoreviewthebudget,andthenhave
adiscussionexplainingtheIncomecolumnandtheExpensescolumn.
2.Whenstudentshavehadachancetoreviewthebudget,askforastudentvolunteertoexplaina
problemwiththebudget.Thecorrectansweristhatexpensesexceedincome.Askstudentstoexplain
whyitisanissuethattherearemoreexpensesthanincome.
3.Asktheclasstobrainstormdifferentideasforbalancingthebudget,iftheincomecannotbechanged.
Includeinthediscussionthedifferencesbetweenwantsandneeds.
4.Next,askthestudentstomodifythebudgetbycreatinganewlistofexpensesintheRevised
Expensescolumnoftheworksheet.Havethemadduptheexpensestomakesuretheyareinlinewith
income.Remindthemaboutthefactthattheneedswillneedtostayinthebudget.
5.Then,askthestudentstofurthermodifythebudgetbycreatingasecondnewlistofexpensesinthe
RevisedExpensesSavingsandCharitiescolumnoftheworksheet.Explainthatthisbudgetwillneed
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tohave$200forsavingspermonth,andtogive$1025tocharitypermonth.Havethestudentsadd
upthenewexpensestomakesuretheyareinlinewithincome.
6.Askstudentstopresenttheirideasforbudgetmodificationstotheclass,andthekindofchangesthey
hadtomaketobalancethebudget,andalsotohaveenoughincomeforsavingsandcharity.Then,
discusswithstudentscharitiesthattheyindicatedintheVaultprogramthatmatchedtheirinterests
andwhatcharitiestheywouldliketosupportinthefuture.Note:StudentsmayrefertotheChoosinga
Charityworksheetthattheycompletedinthecourse,whichcanbeaccessedintheResourcessection
ofthecourseorintheToolssectionofthestudentportal.
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Standards:
ThislessonplanfallsunderthePlanningandMoneyManagementsectionoftheJump$tartStandards
forFinancialLiteracy.Moreinformationregardingthestandardsfollows.Theboldedstandardsare
coveredinthislessonplan.
OverallCompetencyOrganizepersonalfinancesanduseabudgettomanagecashflow.Standard1:Developaplanforspendingandsaving.
A. Giveexamplesofhouseholdexpensecategoriesandsourcesofincome.B. Describehowtoallocateaweeklyallowanceamongthefinancialgoalsofspending,saving,
andsharing.
Standard2:Developasystemforkeepingandusingfinancialrecords.
A. Prepareapersonalpropertyinventory,includinglocationsandestimatesofvalue.
Standard3:Describehowtousedifferentpaymentmethods.
A. Describedifferenttypesoflocalfinancialinstitutionsandexplainthedifferencesbetweenthem.B. Explainhowchecksanddebitandcreditcardsworkaspaymentmethods.
Standard4:Applyconsumerskillstopurchasedecisions.
A. Comparepricesforthesameitemattwodifferentstores.
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B. Applysystematicdecisionmakingtoapersonalageappropriatepurchase.C. Explainhowpeerpressurecanaffectspendingdecisions.
Standard5:Considercharitablegiving.
A. Identifyaprivatecharitableorganizationandthepeopleitserves.
Standard6:Developapersonalfinancialplan.
A. Giveexamplesofhouseholdassets.
Standard7:Examinethepurposeandimportanceofawill.
A. Identifyanitemthatahouseholdmemberhasinherited.
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LessonPlan4:CreditandBorrowingObjectives:
Studentswill:
Understandthatcreditisaloanthathastoberepaid. Learnthedifferencebetweenpayingwithcreditandpayingwithcash. Understandwhenitisagoodideatousecredit,andwhenitmakesmoresensetousecash.
VaultExtension:
ThislessonplanreferstotheCreditactivityinthe
CreditandBorrowingconceptgroupoftheVault
program.
Creditshouldbecompletedbythestudentsbefore
thediscussionandactivityaredoneinclass.
Overview:
ThislessonplanwillteachGrade46studentsthedifferencebetweenusingcashandusingcreditfora
purchase.Studentswilllearnwhattypesofpurchaseswouldbebettermadewithcredit.Studentswill
workwithanumberofscenariostodeterminewhattypeofpaymentmethodisthebestgiventhe
incomeavailable.
Materials:
Butcherpaperorposterboardsfor510groups 510markers VaultCreditvs.CashScenariosWorksheet Pensorpencils
Vocabulary:
CreditAloanthatapersonusestopayforthings,butisexpectedtopayback.
InterestAmountofmoneytheborrowerpaysfortheuseofalendersmoney.
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DiscussionTopics:1. Discusswhatcreditis,andhowitisaloanthatneedstoberepaid.Explainwhatinterestis,andhow
itisanaddedexpensewhenusingcredit.2. DiscussthedifferenttypesofexpenseslearnedaboutintheVaultprogramandwhenitmightbe
besttousecreditandwhenitmightbebesttousecash.
Activity:
Afterdiscussingcreditandcashassourcesofpayment,explaintostudentsthattheywillbegoinginto
groupstolearnmoreaboutthebesttimestousecreditorcash.Thegoalisforthestudentsto
understandthepossibilityofcreditasapositivemoneymanagementtool,butalsothedisadvantages
whenitismisused,includinginterestcostsandthepotentialtospendbeyondtheirmeans.
1. Askstudentstomoveintogroupsoffour.PassouttheVaultCreditvs.CashScenariosWorksheettoeachstudent.Askthestudentstoreviewthescenariosquietlyintheirgroups.
2. Whenstudentshavehadachancetoreviewthescenarios,assigneachgroupascenario.Giveeachgroupwithamarkeralargepieceofwhitepaperorposterboardandaskthegrouptowritethetitle
ofthescenarioonthepaper.Next,askthemtowritecashpaymentorcreditpaymentonthe
sheetbasedonthegroupconsensus.
3. Next,hangupeachposterboardonthewalloftheclassroom.Haveavolunteerfromeachgroupstandnexttotheposterboard.Asktheclasstogivereasonswhythegroupmighthavechosenthe
formofpaymenttheydidforthatscenario.
4. Thenaskthestudentstodiscussadvantagesanddisadvantagesforacashpaymentorcreditpaymentforeachscenario.Thestudentvolunteerforeachgroupshouldmakealistofadvantages
anddisadvantagesontheposterboardforthepaymentchoiceforthatscenario.
5. Studentscanthenwalkaroundtheroomandlookateachofthepaymentscenarioposterboards.Askstudentstoreturntotheirseats,andopenadiscussionaboutthemostcommonadvantages
anddisadvantagestocashpayments,andtocreditpayments.
6. Then,askstudentstobrainstormideasforhowtomanagetheuseofcreditbasedonthepotentialdisadvantagesthatwerediscussedinStep#4.Makealistofideasforresponsiblecredituseonthe
boardbasedonwhatwaslearnedintheVaultprogram.
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Standards:
ThislessonplanfallsundertheCreditandDebtsectionoftheJump$tartStandardsforFinancial
Literacy.Moreinformationregardingthestandardsfollows.Theboldedstandardsarecoveredinthis
lessonplan.
OverallCompetency
Maintaincreditworthiness,borrowatfavorableterms,andmanagedebtStandard1:Identifythecostsandbenefitsofvarioustypesofcredit.
A. Explainthedifferencebetweenbuyingwithcashandbuyingwithcredit.
B. Describetheadvantagesanddisadvantagesofusingcredit.
C. Explainwhyfinancialinstitutionslendmoney.
D. Identifycreditpurchasesthatadultscommonlymake.
E. Explainwhyusingacreditcardisaformofborrowing.
Standard2:Explainthepurposeofacreditrecordandidentifyborrowers'creditreportrights.
A. Describethequalitiesthatwouldbedesirableinapersonwhoborrowsafavoritepersonal
possession.
B. Giveexamplesofreasonableconditionstosetfortheuseofborrowedpersonalproperty.
C. Givenascenario,describestepsthatapersoncouldtaketoregainalenderstrustafterlosingor
damagingborrowedpersonalproperty.
Standard3:Describewaystoavoidorcorrectdebtproblems.
A. Listwaystoavoidcreditproblems,includingnotoverspending.
Standard4:Summarizemajorconsumercreditlaws.
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LessonPlan5:InsuranceandSafetyObjectives:
Studentswill:
Learntoidentifydifferenttypesofpersonalandhouseholdrisks. Understandthattherearemethodsfordecreasingriskandprotectingonesselfandones
property.
Learntoanalyzewhattypesofinsuranceorprotectionarebestforlesseningcertainrisks.
VaultExtension:
ThislessonplanreferstotheControllingRisksactivityin
theInsuranceandSafetyconceptgroupoftheVault
program.
ControllingRisksshouldbecompletedbythestudents
beforethediscussionandactivityaredoneinclass.
Overview:
ThislessonplanwillteachGrade46studentshowtoevaluatepersonalandhouseholdrisks.Students
willlearnhowtoidentifyandprotectthemselvesfromvariousformsofrisk.Studentswillworkin
groupsoncetheyhaveidentifiedpersonalandhouseholdriskstocomeupwithaninsuranceor
protectionplantomanagetheriskstheyhaveidentified.
Materials:
Whiteboardorchalkboard VaultRiskManagementWorksheet Pensorpencils
Vocabulary:
RiskAnactivityoractionthatmightbedangerous.
RiskManagementStuffyoudotomakeriskslessdangerousornotdangerousatall.
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RiskPreventionStuffyoudotostopconsequencesofrisksfromhappening.
DiscussionTopics:
1. Discusswhatpersonalrisksare,usingsomeoftheexamplesfromtheVaultprogram.Askstudentstonameotherpersonalriskstheyareawareof,orareconcernedabout.
2. Discusswhathouseholdrisksare,usingsomeoftheexamplesfromtheVaultprogram.Askstudentstonameotherhouseholdriskstheyareawareof,orareconcernedabout.
3. Talkabouttheconceptofinsurance,whichisprotectionagainstrisks.Discusswithstudentshowtheycanmanageorpreventrisksintheirownlives.
Activity:
Afterdiscussingpersonalandhouseholdrisksandriskmanagement,explaintostudentsthattheywillbe
goingintogroupstolearnmoreabouthowtoeffectivelymanageorpreventrisks.Thegoalisforthe
studentstounderstandbothhowtoidentifyrisksandhowtoprotectthemselves,
1. GototheboardandwritePersonalandHouseholdastheheadersoftwocolumns.Askstudentstoidentifypersonalrisks,andhouseholdrisks.Writetherisksontheboardasthestudentssay
them.
2. Next,askstudentstomoveintogroupsoffour.Askthestudentstodivideintotwoteamswithineachgroup:theRiskTakersandtheRiskManagers.PassouttheRiskManagementWorksheetto
theRiskManagerteam.
3. AskeachRiskTakerteamtochoosetwopersonalrisksandtwohouseholdrisksfromtheboard,orcomeupwithnewones.TheRiskManagerteamwilltheninterviewtheRiskTakerteamaboutthe
risks,usingthequestionsontheVaultRiskManagementWorksheet.Theanswersshouldbe
recordedontheworksheet
4. Next,withinthegroupsstudentsshouldbrainstormdifferenttypesofprotectionagainsttherisks.TheRiskManagerteamshouldrecordthebestideasontheVaultRiskManagementWorksheet.
5. Referringtothelistofpersonalandhouseholdrisksontheboard,gothrougheachrisk,askingthestudentgroupswhohavechoseneachrisktodescribedifferentprotectionplanstheycameupwith.
6. Then,askstudentstodiscussthemainideabehindtheriskmanagementexercises,specifically,insurance.Talkaboutwhyinsuranceisanimportantpartoflife.
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Standards:
ThislessonplanfallsundertheRiskManagementandInsurancesectionoftheJump$tartStandards
forFinancialLiteracy.Moreinformationregardingthestandardsfollows.Theboldedstandardsare
coveredinthislessonplan.
OverallCompetencyUseappropriateandcosteffectiveriskmanagementstrategies.
Standard1:Identifycommontypesofrisksandbasicriskmanagementmethods.
A. Giveexamplesofrisksthatindividualsandhouseholdsface.
B. B.Givenanageappropriateactivitysuchasridingabicycle,analyzehowtoreduceandavoid
differentkindsofrisk.
Standard2:Explainthepurposeandimportanceofpropertyandliabilityinsuranceprotection.
A. Listvaluableitemsthathouseholdscommonlyown.
B. Describehowvaluableitemsmightbedamagedorlostandwaystoprotectthem.
Standard3:Explainthepurposeandimportanceofhealth,disability,andlifeinsuranceprotection.
A. Explainwhypeopleneedhealthinsurance.
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LessonPlan6:SavingandInvestingObjectives:
Studentswill:
Understandthatinterestismoneythatisearnedonasavingsaccount,andthatthebankpaystheaccountholdertousetheirfunds.
Learnthatitispossibletomakemoneyfrommoneythatissavedorinvested. Understandandcomparetheratesofreturnofdifferentinterestrates.
VaultExtension:
ThislessonplanreferstotheSavingsactivityinthe
SavingsandInvestingconceptgroupoftheVault
program.
Savingsshouldbecompletedbythestudents
beforethediscussionandactivityaredoneinclass.
Overview:
ThislessonplanwillteachGrade46studentstheconceptofearninginterestonsavings.Studentswill
learnthatitispossibletomakemoneywithmoneythroughearninginterest.Studentswillworkwith
scenariostolearnhowtocalculateinterest,andtocomparetheearningpotentialofdifferentinterest
rates.
Materials:
Whiteboardorchalkboard VaultSavingsAccountScenariosWorksheet Pencilsorpens
Vocabulary:
SavingsMoneysetasideforshorttermorlongtermgoals.
BudgetAspendingandsavingsplan.
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ExpenseThecostofgoodsandservices.
InterestAmountofmoneytheborrowerpaysfortheuseofalendersmoney.
DiscussionTopics:
1. Discusswhatsavingmoneymeans,andhowitcanbeachievedbycuttingexpenses,whichismoneypaidforgoodsandservices.Askstudentsabouttheshortandlongtermgoalstheymightwantto
savemoneyfor,andhowtheysave.
2. Askstudentsiftheycandescribedifferentwaysofsavingmoney,basedonwhattheylearnedintheVaultprogram.Askstudentsaswellwhichofthoseformsofsavingearnsmoneyforthesaver.
3. Explainthatsavingmoneyinabankisallowingthebanktouseonesmoney,andthatthebankwillpayforthatabilityintheformofinterest.Discusshowthatinterestpaymentisawayofmaking
moneywithmoney.
Activity:
Afterdiscussingsavingandinterest,explaintostudentsthattheywillbeworkingonananalysisof
differentsavingsaccountsandinterestrates.Thegoalisforthestudentstounderstandhowearning
interestisawayofmakingmoneywithmoney,whichisabasicprincipleofinvesting.
1. PassouttheVaultSavingsAccountScenariosWorksheettoeachstudent.Askthestudentstoreviewthescenariosquietlyattheirdesks.
2. Next,askstudentstocalculatehowmuchinterestisearnedoneachsavingsscenario.Dependingonageandability,thestudentscaneithermultiplytheinterestratestimesthesavingstotalandthen
sumtheinterestandsavingsamounts,ortheycanaddtheinterestamounttothesavingstotal.
Note:TherearetwoversionsoftheVaultSavingsAccountScenariosWorksheetsthatteacherscan
selectfrombasedontheirstudentsageandability.
3. Startadiscussionaboutthesavingsaccountswiththesametotalsavings,butdifferentinterestrates.Askforstudentvolunteerswhohavecompletedthatsectionoftheworksheetsuccessfullyto
writetheirequationsandanswersontheboard.Asktheclasswhathappenstotheamountof
interestearnedastheinterestrateincreases.
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4. Next,discussthesectionoftheworksheetwithdifferentsavingstotalswiththesameinterestrate.Askforstudentvolunteerswhohavecompletedthatsectionoftheworksheetsuccessfullytowrite
theirequationsandanswersontheboard.Asktheclasswhathappenstotheamountofinterest
earnedasthesavingstotalincreases.
5. Askforonelastsetofstudentvolunteerstowriteontheboardtheamountofchangeinthesavingstotaliftheinterestrateiszero.Discusswhythatisthecase.
6. Then,askstudentstoanalyzethedifferentinterestratescenariosontheboard.Specifically,havestudentsdiscusshowmoneycanbemadewithmoney,andthedynamicofdifferentlevelsof
interestratesondifferentamountsofsavings.Explaintotheclassthatthemoremoneyissaved,the
greatertheinterestsavingscanbe,butthatthelevelofinterestrateisalsoanimportantpartofthe
equation.
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Standards:
ThislessonplanfallsundertheSavingandInvestingsectionoftheJump$tartStandardsforFinancial
Literacy.Moreinformationregardingthestandardsfollows.Theboldedstandardsarecoveredinthis
lessonplan.
OverallCompetency
Implementadiversifiedinvestmentstrategythatiscompatiblewithpersonalgoals.
Standard1:Discusshowsavingcontributestofinancialwellbeing.
A. Describetheadvantagesanddisadvantagesofsavingforashorttermgoal.
B. Describewaysthatpeoplecancutexpensestosavemoreoftheirincomes.
Standard2:Explainhowinvestingbuildswealthandhelpsmeetfinancialgoals.
A. Giveanexampleofaninvestmentandexplainhowitcangrowinvalue.
Standard3:Evaluateinvestmentalternatives.
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A. Listtheadvantagesofinvestingmoneywithafinancialinstitution.
B. Giveanexampleofaninvestmentthatallowsrelativelyquickandeasyaccesstofunds.
C. Comparethemainfeaturesofinterestearningaccountsatlocalfinancialinstitutions.
Standard4:Describehowtobuyandsellinvestments.
A. Comparetheratesofreturnonbasicsavingsaccountsatdifferentfinancialinstitutions.
Standard5:Explainhowtaxesaffecttherateofreturnoninvestments.
Standard6:Investigatehowagenciesthatregulatefinancialmarketsprotectinvestors.