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

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.

5. Oncethelistiscomplete,openadiscussionabouthowtoprioritizeneedsversuswants.Bringtheconceptofopportunitycostsintothediscussion,askingstudentstoexplainhowpayingforawant

maymeannothavingenoughmoneyforanotherwant,ormoreimportantly,foraneed.Ask

studentstocometotheboardtocrossoutwantstheywouldgiveupforanotherwantorneed.

6. Forthelastpartofclass,havestudentswritedownsomespendinggoalsthatwillrequiresavingmoney,forexample,aniPod,acomputer,oranewpet.Askstudentstorefertothelistsofwants

ontheboard,andaskthemtoraisetheirhandstogiveexamplesofwantsthatcouldhavebeen

foregoneinordertosavemoneyforalargergoalpurchase.Alsoaskstudentsifthegoalsareshort

termorlongterm,andtoexplainwhy.

___________________________________________________

Standards:

ThislessonplanfallsundertheFinancialResponsibilityandDecisionMakingsectionoftheJump$tart

StandardsforFinancialLiteracy.Moreinformationregardingthestandardsfollows.Thebolded

standardsarecoveredinthislessonplan.OverallCompetencyApplyreliableinformationandsystematicdecisionmakingtopersonalfinancialdecisions.Standard1:Takeresponsibilityforpersonalfinancialdecisions.

A. Listexamplesoffinancialdecisionsandtheirpossibleconsequences.B. Identifywaystobeafinanciallyresponsibleyouth.

Standard2:Findandevaluatefinancialinformationfromavarietyofsources.

A. Giveexamplesofsituationsinwhichfinancialinformationwouldleadtobetterdecisions.B. Identifysourcesoffinancialinformation.

Standard3:Summarizemajorconsumerprotectionlaws.

A. Compareproductreturnpoliciesatlocalretailstores.

Standard4:Makefinancialdecisionsbysystematicallyconsideringalternativesandconsequences.

A. Explainhowlimitedpersonalfinancialresourcesaffectthechoicespeoplemake.B. Rankpersonalwants/needsinorderofimportance.C. Setmeasurableshorttermfinancialgoals.D. Outlinethestepsinsystematicallyevaluatingalternativesandmakingadecision.E. Applysystematicdecisionmakingtoashorttermgoal.

Standard5:Developcommunicationstrategiesfordiscussingfinancialissues.

A. Giveexamplesofhowmembersofpreviousgenerationsspentmoneyaschildren.B. Analyzethevaluesandattitudesofmembersofpreviousgenerationsfromtheirpersonal

storiesaboutmoney.

Standard6:Controlpersonalinformation.

A. Listtypesofpersonalinformationthatshouldnotbedisclosedtoothersandthepossibleconsequencesofdoingso.

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.

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.

6. EachgroupshouldthenchooseonememberasaPresenter,andthatpersonshouldstanduporgotothefrontoftheroomtopresenttheCareerProfilefortheirgroup.

____________________________________________________

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.

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.

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

tohave$200forsavingspermonth,andtogive$1025tocharitypermonth.Havethestudentsadd

upthenewexpensestomakesuretheyareinlinewithincome.

6.Askstudentstopresenttheirideasforbudgetmodificationstotheclass,andthekindofchangesthey

hadtomaketobalancethebudget,andalsotohaveenoughincomeforsavingsandcharity.Then,

discusswithstudentscharitiesthattheyindicatedintheVaultprogramthatmatchedtheirinterests

andwhatcharitiestheywouldliketosupportinthefuture.Note:StudentsmayrefertotheChoosinga

Charityworksheetthattheycompletedinthecourse,whichcanbeaccessedintheResourcessection

ofthecourseorintheToolssectionofthestudentportal.

____________________________________________________

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.

B. Applysystematicdecisionmakingtoapersonalageappropriatepurchase.C. Explainhowpeerpressurecanaffectspendingdecisions.

Standard5:Considercharitablegiving.

A. Identifyaprivatecharitableorganizationandthepeopleitserves.

Standard6:Developapersonalfinancialplan.

A. Giveexamplesofhouseholdassets.

Standard7:Examinethepurposeandimportanceofawill.

A. Identifyanitemthatahouseholdmemberhasinherited.

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.

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.

____________________________________________________

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.

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.

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.

____________________________________________________

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.

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.

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.

4. Next,discussthesectionoftheworksheetwithdifferentsavingstotalswiththesameinterestrate.Askforstudentvolunteerswhohavecompletedthatsectionoftheworksheetsuccessfullytowrite

theirequationsandanswersontheboard.Asktheclasswhathappenstotheamountofinterest

earnedasthesavingstotalincreases.

5. Askforonelastsetofstudentvolunteerstowriteontheboardtheamountofchangeinthesavingstotaliftheinterestrateiszero.Discusswhythatisthecase.

6. Then,askstudentstoanalyzethedifferentinterestratescenariosontheboard.Specifically,havestudentsdiscusshowmoneycanbemadewithmoney,andthedynamicofdifferentlevelsof

interestratesondifferentamountsofsavings.Explaintotheclassthatthemoremoneyissaved,the

greatertheinterestsavingscanbe,butthatthelevelofinterestrateisalsoanimportantpartofthe

equation.

____________________________________________________

Standards:

ThislessonplanfallsundertheSavingandInvestingsectionoftheJump$tartStandardsforFinancial

Literacy.Moreinformationregardingthestandardsfollows.Theboldedstandardsarecoveredinthis

lessonplan.

OverallCompetency

Implementadiversifiedinvestmentstrategythatiscompatiblewithpersonalgoals.

Standard1:Discusshowsavingcontributestofinancialwellbeing.

A. Describetheadvantagesanddisadvantagesofsavingforashorttermgoal.

B. Describewaysthatpeoplecancutexpensestosavemoreoftheirincomes.

Standard2:Explainhowinvestingbuildswealthandhelpsmeetfinancialgoals.

A. Giveanexampleofaninvestmentandexplainhowitcangrowinvalue.

Standard3:Evaluateinvestmentalternatives.

A. Listtheadvantagesofinvestingmoneywithafinancialinstitution.

B. Giveanexampleofaninvestmentthatallowsrelativelyquickandeasyaccesstofunds.

C. Comparethemainfeaturesofinterestearningaccountsatlocalfinancialinstitutions.

Standard4:Describehowtobuyandsellinvestments.

A. Comparetheratesofreturnonbasicsavingsaccountsatdifferentfinancialinstitutions.

Standard5:Explainhowtaxesaffecttherateofreturnoninvestments.

Standard6:Investigatehowagenciesthatregulatefinancialmarketsprotectinvestors.