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TEXASTEXASECONOMICSECONOMICSLANGUAGE ARTS &LANGUAGE ARTS &PERSONAL FINANCEPERSONAL FINANCE

Grades K - 5Grades K - 5Grades K - 5

Personal Finance in theElementary School Curriculum

In an effort to integrate the existing T.E.K.S. of Language Arts and Math into a program ofPersonal Finance, the Texas Council on Economic Education has developed this series of lessonplans for teachers. These lessons are designed to meet the economics strand of the T.E.K.S.while allowing teachers to maintain their existing scope and sequence.

These lessons were developed and tested by professionals in the field of Personal Finance, aswell as Texas teachers. Funding for the development of this program was provided by a grantfrom the Chase Manhattan Foundation.

Any and all parts of this material may be copied for use in classrooms.

Table of ContentsLanguage Arts & Personal Finance

Section I - Grades K-2

Lesson 1 - Income“Hire Me” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Lesson 2 - Money Management“My Choices Have Costs” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Lesson 3 - Spending and Credit“ABC in the Marketplace” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Lesson 4 - Saving and Investing“Saving for the Future!!” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Section II - Grades 3-5

Lesson 1 - Income“Mother, May I?” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Lesson 2 - Money Management“Where, Oh Where, Did My Money Go?” . . . . . . . . . . . . . . . . . . . 13

Lesson 3 - Spending and Credit“Advertising - Good or Bad?”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Lesson 4 - Saving and Investing“Saving and Investing Choices” . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Appendix AGlossary

Appendix BResources

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Grades K-2 Language Arts: Income

Hire Me!!

INTRODUCTION Curious George Takes a Job by H.A. Ray introduces students to the fact that most people work to earn money. The jobs that George takes on and the special human skills—physical and mental—that are required to do these jobs are discussed. Students then help create a list of classroom jobs and job qualifications for a “Help Wanted” bulletin board. Pay for each job is established based on the level of skill required for the position. Students apply or interview for the jobs by presenting their personal qualifications and then consider how they might improve their knowledge and skills for the future. PERSONAL FINANCE CONCEPTS See the glossary of terms for definitions of the following personal finance concepts. Earning Human Capital/Resources Income Job Salary Wages Work

CONTENT STANDARDS CORRELATIONS This lesson can be used to teach these standards and benchmarks. TEKS K-2 Language Arts 110.2 Kindergarten The student: • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of

oral language experiences. • (4a-b, d) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (5a-g) Reading/print awareness. Demonstrates knowledge of concepts of print. • (8a-c) Reading/vocabulary development. Develops an extensive vocabulary.

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• (9a-c) Reading/comprehension. Uses a variety of strategies to comprehend selections read aloud.

• (10a-d) Reading/literary response. Responds to various texts. • (11b) Reading/text structures/literary concepts. Recognizes characteristics of various types

of texts. • (14a-e) Writing/spelling/penmanship. Develops the foundations of writing. • (15c,e) Writing/composition. Composes original texts. 110.3 Grade 1 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of

oral language experiences. • (4a-b, d) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (5a-h, j) Reading/print awareness. Demonstrates knowledge of concepts of print. • (11a-c) Reading/vocabulary development. Develops an extensive vocabulary. • (12a-c, e-g) Reading/comprehension. Uses a variety of strategies to comprehend selections

read aloud and selections read independently. • (13a-e) Reading/literary response. Responds to various texts. • (14b,g-i) Reading/text structures/literary concepts. Recognizes characteristics of various

types of texts. • (17a-g) Writing/spelling/capitalization/penmanship. Develops the foundations of writing. • (18c-f) Writing/purposes. Writes for a variety of audiences and purposes and in a variety of

forms. • (19b-e) Writing/writing processes. Selects and uses writing processes to compose original

text. • (20a-e) Writing/spelling. Spells proficiently. • (21a-b) Writing/grammar/usage. Composes meaningful texts by applying knowledge of

grammar and usage. 110.4 Grade 2 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of

oral language experiences. • (4a, c) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (8a-d) Reading/vocabulary development. Develops an extensive vocabulary. • (9a-c, e-g) Reading/comprehension. Uses a variety of strategies to comprehend selections

read aloud and selections read independently. • (10a-d) Reading/literary response. Responds to various texts.

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• (11h-j) Reading/text structures/literary concepts. Recognizes characteristics of various types of texts.

• (14a-d) Writing/purposes. Writes for a variety of audiences and purposes, and in various forms.

• (15a-d) Writing/penmanship/capitalization/punctuation. Composes original texts using the conventions of written language such as capitalization and penmanship to communicate clearly.

• (16a-d) Writing/spelling. Spells proficiently. • (18a-f) Writing/purposes. Selects and uses writing processes for self-initiated and assigned

writing. • (17a-d) Writing/grammar/usage. Composes meaningful texts by applying knowledge of

grammar and usage. National Standards in Personal Finance Grade 4 Benchmarks Students will know that • (Income) People get income by earning wages and salaries or by receiving money gifts. • (Income) Workers can improve their ability to earn income by gaining new knowledge,

skills, and experiences. Students can use this knowledge to • (Income) Identify jobs that children can do to earn income. • (Income) Explain why learning new skills, such as technology and communication skills, can

increase a person’s ability to earn income. Standards for the English Language Arts Students • Read a wide range of print and nonprint texts to build an understanding of texts, of

themselves, and of the cultures of the United States and the world; to acquire new information; to respond to the needs and demands of society and the workplace; and for personal fulfillment. Among these texts are fiction and nonfiction, classic and contemporary works.

• Apply a wide range of strategies to comprehend, interpret, evaluate, and appreciate texts. They draw on their prior experience, their interactions with other readers and writers, their knowledge of word meaning and of other texts, their word identification strategies, and their understanding of textual features (e.g., sound-letter correspondence, sentence structure, context, graphics).

• Adjust their use of spoken, written, and visual language (e.g., conventions, style, vocabulary) to communicate effectively with a variety of audiences and for different purposes.

• Apply knowledge of language structure, language conventions (e.g., spelling and punctuation), media techniques, figurative language, and genre to create, critique, and discuss print and nonprint texts.

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• Whose first language is not English make use of their first language to develop competency in the English language arts and to develop understanding of content across the curriculum.

• Participate as knowledgeable, reflective, creative, and critical members of a variety of literacy communities.

• Use spoken, written, and visual language to accomplish their own purposes (e.g., for learning, enjoyment, persuasion, and the exchange of information).

NCEE Voluntary Standards in Economics Students will understand that • Marginal Cost/Marginal Benefit: Effective decision making requires comparing the

additional costs of alternatives with the additional benefits. Most choices involve doing a little more or a little less of something; few choices are “all or nothing” decisions.

• Role of Incentives: People respond predictably to positive and negative incentives • Role of Resources in Determining Income: Income for most people is determined by the

market value of the productive resources they sell. What workers earn depends, primarily, on the market value of what they produce and how productive they are.

Students will be able to use this knowledge to • Marginal Cost/Marginal Benefit: Make effective decisions as consumers, producers, savers,

investors, and citizens. • Role of Incentives: Identify incentives that affect people’s behavior and explain how

incentives affect their own behavior. • Role of Resources in Determining Income: Predict future earnings based on their current

plans for education, training, and career options. STUDENT OBJECTIVES Upon completion of this lesson, the students will be able to: 1. Identify work as a means for obtaining money 2. Describe the physical and mental skills needed to do a job 3. Present their personal qualifications for a job 4. Explain the relationship between job requirements and pay 5. Identify ways to improve their personal employment qualifications

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PERSONAL FINANCE BACKGROUND CONCEPTS There are many ways for people to get money. One way that most people get money is by earning it. The money paid for work is also called wages or salaries. Work can be physical and/or mental. People who do physical work move around a lot and use their muscles. Thinking is mental work. Most workers do both mental and physical work. For example, carpenters have to be good at using a hammer and climbing ladders. They must also be good at reading blueprints, calculating, and measuring. Some jobs require more physical work than others. Mental jobs require more knowledge or skills. As a result, workers in these mental jobs may earn higher wages or salaries. The physical and mental skills of workers is called human capital or human resources. When people seek a job to earn money, they first must find out what qualifications are required to do the job. The time and effort devoted to getting this knowledge and improving one’s skills through education and practice is called investing in human capital (or human resources). Income received from jobs is used to pay for living expenses, such as housing, food, clothing, lessons, toys, and trips. TIME REQUIRED One or two 50-minute classes MATERIALS AND EQUIPMENT • Rey, H. A. (1947, renewed 1975). Curious George Takes a Job, New York: Houghton

Mifflin Co., (ISBN: 0-395-18649-8) • Board or overhead projector • One copy of Activity Sheet 1: Job Description for each student • One copy of Activity Sheet 2: Job Application for each student • Master for classroom money PROCEDURE Activity 1: 1. Begin the lesson by asking students, “Have you ever heard the saying Money Doesn’t Grow

On Trees?” Discuss: a. Does money grow on trees?

(no) b. If it doesn’t grow on trees, how do your parents get money?

(Answers will vary) c. Summarize by saying that most adults get money by working and earning it. The work

they do is called their job or their business.

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2. Tell students you are going to read a story about a monkey named Curious George who has

several jobs. Instruct students to listen carefully for each of the jobs that George has and how he is paid for his work.

3. Read aloud Curious George Takes a Job by H.A. Rey. 4. Discuss:

a. What jobs did George have in this story? (dishwasher, window cleaner, movie star)

b. What do you think George was paid for his work washing windows? For being in the movie? (Answers will vary but will probably include money and food.)

c. How do real window washers and movie actors get paid? (money)

d. Why didn’t the restaurant give George money for his work cleaning the restaurant kitchen? (George owed the restaurant for the food he ate and the mess he made. He was paying off his debt by working [giving his labor] rather than in money.)

5. Explain that in order for George to do each of his jobs, he had to do a combination of physical and mental work. Write these words on the board. a. Physical work involves moving around a lot and using our muscles. b. George also had to think about what he was doing so he didn’t make mistakes. c. Thinking is mental work. d. When George was cleaning the restaurant’s kitchen, he had to be able to physically lift all

the dirty pots and pans. He also had to scrub the dirty dishes. e. But there was also mental work; for example, he had to know that he needed hot, soapy

water to get everything clean. He also had to concentrate so he didn’t break anything. His physical and mental skills are called human resources or human capital.

6. Discuss: a. What physical skills did George need to be a good window washer?

(climbing, ability to reach all parts of the windows, good eyesight to see if the windows were cleaned)

b. What mental skills did George need? (no fear of heights, keeping focused on his work)

c. Which of these skills did George lack? (keeping focused) Activity 2: Job Descriptions 1. Ask children to identify jobs they could do in the classroom such as pet caretaker, weather

person, librarian, computer technician, eraser cleaner, pencil sharpener specialist, etc. 2. Divide students into small groups and have each group prepare a job description for one of

the jobs using Activity Sheet 1: Job Description. 3. Post job descriptions on a bulletin board titled “Help Wanted”. 4. Tell students that some jobs pay more than others. With the students, discuss which jobs

should be worth more pay. For example, jobs that require writing or math skills (human capital) may pay more than those that don’t. Other reasons for higher pay might include more responsibility, the amount of time involved, greater physical work, or few people have the skills needed.

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5. Have the children vote to determine which jobs should be worth the most pay and assign a dollar value to each job.

Activity 3: Job Applications 1. Explain to students that they will have the opportunity to apply for classroom jobs just like

adults they know apply for jobs or hire employees if the adult owns a business. 2. Ask students apply for jobs by completing Activity Sheet 2: Job Application. Interviews

are an alternative for students who have limited writing skills. 3. Once the job applications and/or interviews are completed, announce your hiring decisions to

the class. To make the experience more realistic, you may want to call students at home and ask them whether they are willing to accept your job offer.

4. Tell students that in two weeks or a month, they will have an opportunity to apply for a different job.

5. Discuss: a. Is there a different job you would like to have the next time? (Answers will vary) b. Why do you want a different job? (Answers will vary but may include more money, fun,

prestige, etc.) c. Are there any special qualifications for the job that you need that you don’t have now?

(Answers will vary) d. How might you meet these qualifications before you apply for the job? (Answers will

vary but may include doing better in math or reading, doing homework, learning a new skill, helping a fellow student do a job to get experience).

6. Explain that as they decide what jobs they want to have as adults, they will have to do the same things—find out what skills they need for the job then develop these skills through education and practice. The time and effort devoted to improving worker skills is called investing in human capital.

7. Have students complete their work assignments and pay them for their work using classroom money (see master) according to the pay scale announced. Class money can be used to purchase small items in a class store.

8. After the specified amount of time, let students repeat the job application process and rotate work assignments.

10. You may want to discuss with students whether they believe the pay for each job is appropriate and where adjustments might need to be made.

ASSESSMENT To assess student learning, the instructor will evaluate:

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1. Student participation using criteria in the following rubric as appropriate for activity and grade level.

Excellent Good Satisfactory Needs

Improvement

Knowledge

Demonstrates complete comprehension through questions, answers and comments.

Demonstrates substantial understanding through questions, answers and comments.

Demonstrates some understanding through questions, answers and comments.

Demonstrates little or no understanding.

Preparation

Always prepared for class with assignments and required class materials.

Usually prepared for class with assignments and required class materials.

Rarely prepared for class with assignments and required class materials.

Almost never prepared for class with assignments and required class materials.

Level of Engagement

Proactively contributes to class by offering ideas and asking questions more than once per class. Contributions are timely and appropriate.

Proactively contributes to class by offering ideas and asking questions once per class. Contributions are timely and appropriate.

Rarely contributes to class by offering ideas and asking questions OR contributions are occasionally not timely and appropriate.

Never contributes to class by offering ideas and asking questions. Nearly all contributions are inappropriate.

Vocabulary & Grammar

Vocabulary and grammar are consistently about grade level.

Vocabulary and grammar are almost always consistent with grade level.

Vocabulary and grammar is usually consistent with grade level.

Vocabulary and grammar are below grade level.

Delivery

Speaks clearly and distinctly all the time. Volume is loud enough to be heard by all classmates.

Speaks clearly and distinctly nearly all the time. Volume is loud enough to be heard by all classmates.

Speaks clearly and distinctly most of the time. Volume is loud enough to be heard by most classmates.

Often mumbles or cannot be understood. Volume is often too soft to be heard by most classmates.

Listening Skills

Listens when others talk. Incorporates or builds on the ideas of others.

Listens when others talk.

Does not listen when others talk.

Does not listen when others talk. Often interrupts when others speak.

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2. Worksheets using criteria on the following rubric as appropriate for grade level.

Excellent Good Satisfactory Needs Improvement

Knowledge

Shows complete understanding of the concepts, ideas, and processes.

Shows substantial understanding of the concepts, ideas and processes.

Shows some understanding of the concepts, ideas and processes.

Response shows a complete lack of understanding of concepts, ideas and processes.

Requirements

Goes beyond requirements. All elements are completed with exceptional detail.

Meets requirements. All elements are completed with appropriate detail

Hardly meets the requirements. All elements have a response but some detail is missing.

Does not meet requirements. Some elements are not completed.

Sentences & Paragraphs

All sentences and paragraphs are complete, well constructed and of varied structure. No fragments or run-ons.

Nearly all sentences and paragraphs are complete and well constructed

Most sentences and paragraphs are complete and well constructed. A few need some work.

Many sentences and/or paragraphs need work

Grammar & Spelling

No errors in grammar or spelling.

A few minor errors in grammar and/or spelling.

Some errors in grammar and/or spelling. The majority are minor.

Many errors in grammar and/or spelling.

Capitalization & Punctuation

No errors in capitalization and punctuation.

A few minor errors in capitalization and punctuation.

Some errors in capitalization and punctuation. The majority are minor.

Many errors in capitalization and punctuation.

Legibility

Writing is legible with no distracting corrections.

Writing is marginally legible in some places OR there is a distracting correction.

Writing is not legible in some places OR there are a few minor distracting corrections.

Writing is not legible OR many distracting corrections.

Neatness Paper is clean and neat with no wrinkles.

Paper is generally clean but has some folds or worn edges.

Paper is slightly crumpled or stained.

Paper is very crumpled or stained.

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3. Joint efforts using these additional criteria.


Collaboration

Almost always listens to, shares with, and supports the efforts of others. Tries to keep people working well together.

Usually listens to, shares, with, and supports the efforts of others. Does not cause "waves" in the group.

Often listens to, shares with, and supports the efforts of others, but sometimes is not a good team member.

Rarely listens to, shares with, and supports the efforts of others. Often is not a good team player.

Problem-solving

Actively looks for and suggests solutions to problems.

Refines solutions suggested by others.

Does not suggest or refine solutions, but is willing to try out solutions suggested by others.

Does not try to solve problems or help others solve problems. Lets others do the work.

Focus on the Task

Consistently stays focused on the task and what needs to be done. Very self-directed.

Focuses on the task and what needs to be done most of the time. Others can count on this person.

Focuses on the task and what needs to be done some of the time. Sometimes needs to be reminded to keep on-task.

Rarely focuses on the task and what needs to be done. Lets others do the work.

Attitude Never publicly criticizes the project or the work of others. Always has a positive attitude about the task(s).

Rarely is publicly critical of the project or the work of others. Often has a positive attitude about the task(s).

Occasionally is publicly critical of the project or the work of other members of the group. Usually has a positive attitude about the task(s).

Often is publicly critical of the project or the work of other members of the group. Often has a negative attitude about the task(s).

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NAME______________________________

Activity Sheet 1: Job Description Job Title: _________________________________________________________ Duties: __________________________________________________________________ __________________________________________________________________

__________________________________________________________________ __________________________________________________________________ __________________________________________________________________ Mental Qualifications: __________________________________________________________________

__________________________________________________________________ __________________________________________________________________ __________________________________________________________________ Physical Qualifications: __________________________________________________________________

__________________________________________________________________ __________________________________________________________________ __________________________________________________________________

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NAME______________________________

Activity Sheet 2: Job Application

Job Title: _______________________________________________________________ Name: _______________________________________________________________ Address: _______________________________________________________________ _______________________________________________________________ Phone Number: _______________________________________________________________ Previous Job Experience: _______________________________________________________________ _______________________________________________________________

Qualifications: _______________________________________________________________ _______________________________________________________________

Reason You Want Job _______________________________________________________________ _______________________________________________________________

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PENNY

NICKEL

DIME

QUARTER

15

DOLLAR BILL

$1 $1

One Dollar $1 $1

$1 $1

One Dollar $1 $1

$1 $1

One Dollar $1 $1

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Grades K-2 Language Arts: Money Management

My Choices Have Costs

INTRODUCTION In this lesson, the teacher reads Something Special for Me by Vera Williams. The students learn they are consumers and that they can’t buy everything they want—limited money (resources) forces them to make choices. These choices about how people use their limited money are influenced by what is important to the person who makes the choice. Students choose a gift for themselves and identify the opportunity costs of their decisions. They write sentences telling the benefits and costs of their options. Using wooden blocks or other physical item, they tally which item was most popular in the class. Students prepare a line graph of the class choices as a math activity. PERSONAL FINANCE CONCEPTS See the glossary of terms for definitions of the following personal finance concepts. Choices Consumer Decision Making Needs Opportunity Cost Resources Wants

CONTENT STANDARDS CORRELATIONS This lesson can be used to teach these standards and benchmarks. TEKS K-2 Language Arts 110.2 Kindergarten The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of

oral language experiences. • (3a, c, e) Listening/speaking/audiences/oral grammar. Speaks appropriately to different

audiences for different purposes and occasions.

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• (4a-b, d) Listening/speaking/communication. Communicates clearly by putting thoughts and feelings into spoken words.

• (5a-g) Reading/print awareness. Demonstrates knowledge of concepts of print. • (7a-c) Reading/letter-sound relationships. Uses letter-sound knowledge to decode written

language. • (8a-c) Reading/vocabulary development. Develops an extensive vocabulary. • (9a-c) Reading/comprehension. Uses a variety of strategies to comprehend selections read

aloud. • (10a-d) Reading/literary response. Responds to various texts. • (12a-c) Reading/inquiry/research. Generates questions and conducts research about topics

introduced through selections read aloud and from a variety of other sources. • (14a-e) Writing/spelling/penmanship. Develops the foundations of writing. • (15c, e-f) Writing/composition. Composes original texts. 110.3 Grade 1 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of


audiences for different purposes and occasions. • (4a-b, d) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (5a-h, j) Reading/print awareness. Demonstrates knowledge of concepts of print. • (7a-g) Reading/letter-sound relationships. Uses letter-sound knowledge to decode written

language. • (8a-g) Reading/word identification. Uses a variety of word identification strategies. • (11a-c) Reading/vocabulary development. Develops an extensive vocabulary. • (12a-g) Reading/comprehension. Uses a variety of strategies to comprehend selctions read

aloud and selections read independently. • (13a-e) Reading/literary response. Responds to various texts. • (15a-c) Reading/inquiry/research. Generates questions and conducts research about topics

introduced through selections read aloud and from a variety of other sources. • (17a-g) Writing/penmanship/capitalization/punctuation. Develops the foundations of

writing. • (18c-f) Writing/purposes. Writes for a variety of audiences and purposes and in a variety of



grammar and usage.

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110.4 Grade 2 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of


audiences for different purposes and occasions. • (4a, c) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (5a-h) Reading/word identification. Uses a variety of word identification strategies. • (8a-c) Reading/vocabulary development. Develops an extensive vocabulary. • (9a-g) Reading/comprehension. Uses a variety of strategies to comprehend selections read

aloud and selections read independently. • (10a-d) Reading/literary response. Responds to various texts. • (12a,d, g-h) Reading/inquiry/research. Generates questions and conducts research about

topics introduced through selections read aloud and from a variety of other sources. • (14a-d) Writing/purposes. Writes for a variety of audiences and purposes, and in various

forms. • (15a-d) Writing/penmanship/capitalization/punctuation. Composes original texts using the

conventions of written language such as capitalization and penmanship to communicate clearly.

• (16a-d) Writing/spelling. Spells proficiently. • (17a-d) Writing/grammar/usage. Composes meaningful texts applying knowledge of

grammar and usage. • (18b-f) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (20b-c) Writing/inquiry/research. Uses writing as a tool for learning and research. Standards for the English Language Arts Students • Read a wide range of print and nonprint texts to build an understanding of texts, of



• Employ a wide range of strategies as they write and use different writing process elements appropriately to communicate with different audiences for a variety of purposes.

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National Standards in Personal Finance Grade 4 Benchmarks Students will know that: • (Money Management) People make choices because they have limited financial resources

and cannot have everything they want. • (Money management) A decision-making process can help people make money decisions. (Spending and Credit) To make a decision, careful consumers compare the benefits and costs

of each spending alternative. (Spending and Credit) Every spending decision has an opportunity cost.

Students will be able to use this knowledge to: • (Money Management) Give examples of situations in which they wanted to buy something

but didn’t have enough money. • (Money Management) Make a financial decision, such as choosing between going to a movie

or saving money to buy a video game, using the steps of the decision-making process. • (Spending and Credit) Identify the benefits and costs of buying a specific product, such as a

video game. • (Spending and Credit) Identify the opportunity cost of a recent purchase. NCEE Voluntary Standards in Economics Students will understand that • (Scarcity) Productive resources are limited. Therefore, people can not have all the goods and

services they want; as a result, they must choose some things and give up others. • (Marginal Cost/Marginal Benefit) Effective decision making requires comparing the

additional costs of alternatives with the additional benefits. Most choices involve doing a little more or a little less of something: few choices are “all or nothing” decisions.

• (Role of Incentives) People respond predictably to positive and negative incentives. Student will be able to use this knowledge to • (Scarcity) Identify what they gain and what they give up when they make choices. • (Marginal Cost/Marginal Benefit) make effective decisions as consumers, producers, savers,

investors and citizens. • (Role of Incentives) Identify incentives that affect people’s behavior and explain how

incentives affect their own behavior.

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STUDENT OBJECTIVES Upon completion of this lesson, the students will be able to: 1. Identify a decision’s opportunity cost. 2. Write sentences explaining a choice they have made. 3. Graph their classmates’ choices. PERSONAL FINANCE BACKGROUND CONCEPTS People use money to buy goods and services. Unfortunately, there isn’t enough money to buy all the goods and services we want. Since we can’t buy everything we want, we have to make choices about what we will and will not buy. The cost of our decision is called an opportunity cost—it is the thing we give up when we make a choice. People’s choices and decisions about how we use our limited money are very personal. They are influenced by factors such as our age, gender, values, wants and needs. What’s important to one person may not be as important to another. The key to wise money management is knowing what is important to you—and why. TIME REQUIRED One or two 50-minute classes MATERIALS AND EQUIPMENT • Williams, Vera (1983). Something Special for Me

New York: Mulberry Books, $5.95 (IBNS: 0-688-06526-0) Also available in Spanish. • One copy of the Activity Sheet 1: Make Choices for each student • One small wooden block (or paper block [see master]) for each student • Six sheets of paper with the name of one goods choice from the activity sheet on each (see

master) • Graph paper and colored markers for math extension activity PROCEDURE Activity1: People Make Different Choices 1. Write the word “consumer” on the board and pronounce it for students. Tell them that this

word describes many people—even you and the students in the class. When they drink water at the water fountain, eat lunch in the lunchroom or buy a toy at a store, they are consumers. a. Ask students to think of other times they are consumers?

(buying clothes or toys, watching a movie, playing an arcade game).

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b. In fact, anyone who buys or uses goods and services is a consumer. Can you think of anyone who is not a consumer? (No, everyone must eat and drink water.)

2. Tell students you are going to read a story about a consumer named Rosa. It is Rosa’s birthday and she is shopping for her birthday gift. Rosa, her mother, and her grandmother put coins in a money jar each evening to save for something special. They have decided the money in the jar will be used to buy a gift for Rosa. If your students are familiar with A Chair for Mother, another book by Vera Williams, you may want to add that Rosa is the same little girl who helped save money in the jar to buy a chair for her mother.

3. Instruct the students to listen carefully for the things that Rosa considered buying as her gift. 4. Read aloud Something Special for Me. 5. Discuss the book using these questions:

a. What things did Rosa consider for her birthday gift? (skates, dress, coat, shoes, hat, sleeping bag, backpack, accordion)

b. Why do you think she wanted the skates? (It would be fun to use them when playing with her friends)

c. Why do you think she liked the clothes? (They made her look nice)

d. What made the backpack and sleeping bag special? (She could use them on camping trips with her family)

e. Why do you think Rosa chose the accordion? (The music made other people happy as well as Rosa)

f. Would your birthday wish list include the same things Rosa considered buying for her birthday? Why or why not? (Possible answers include students preferring other toys and not having anyone to teach them how to play the accordion. Boys may add that they don’t wear dresses.)

6. Explain that their responses are different because people are different. Not everyone likes and wants the same things. What one person thinks is important isn’t always what others think is important. These differences are why there are so many different types of goods, such as shirts, dresses, or toys, in the stores for consumers to buy.

7. Ask students what kinds of things do they think grown-ups would like as a birthday present? (Answers will vary.)

8. As each item is identified, ask students to raise their hands if this is something they would also like to have. (Possible answers include tie, coffee pot, flowers, and jewelry). Reinforce the idea that people’s likes and wants are different.

9. Ask students why Rosa didn’t buy all the things that she considered as birthday gifts? (There was only enough money for one thing.) Explain that no matter what we want, none of us has enough money to buy everything we would like to have. Limited money (resources) forces us to make choices.

22

Activity 2: Make Choices 1. Discuss:

a. Can you think of a choice you made recently? (Answers will vary)

b. Were you happy with your choice? Why or why not? (Answers will vary)

2. Tell students that the best way to make sure they are happy with future choices is to think about what is important to them. One way to do this is to make a list of benefits and costs. Benefits are the good things about a choice. Costs are the bad things.

3. Reread the pages where Rosa imagines herself playing the accordion. Discuss: a. What do you think were the good points that helped Rosa choose the accordion?

(being able to play music, being happy, making others happy, learn playing music) b. What were the possible bad points?

(not knowing how to play so she would have to learn) 4. Distribute a copy of the Activity Sheet 1: Make Choices to each student and instruct them to

complete it. 5. On a flat surface such as a table or the floor side by side, place the six choice sheets. 6. As students complete their activity sheet, provide them with a small wooden or paper block.

Direct each student to stack their block on the item they chose. 7. When all the blocks have been stacked, discuss:

a. Which item was most frequently chosen? (the item with the most blocks).

b. Which item was least frequently chosen? (the item with the least blocks)

c. What were the good points given for the most popular choice? (Answers will vary).

d. Were there any bad points? (Answers will vary).

Activity 3: What We Chose 1. Divide the class into groups of 2-3 students. 2. Give each group graph paper and several different colored markers or crayons. 3. Tell the students that we can better understand the class’s choices by graphing the results. 4. Instruct each group to construct and label a line graph that shows the students’ choices as

tallied by their blocks. 5. Student groups construct line graphs. 6. Discuss:

a. What do the line graphs tell us? (How the items compared with one another in student wants)

b. Why is it easier to tell this from a line graph than the blocks on the item sheets? (All the information is on one sheet; easier to read line graph than to count up the blocks on each sheet; line graph puts all the information together)

23

ASSESSMENT To assess student learning, the instructor will evaluate: 1. Student participation using criteria in the following rubric as appropriate for activity and

grade level. Excellent Good Satisfactory Needs

Improvement

Knowledge





Preparation





Level of Engagement










Delivery





Listening Skills





24

2. Worksheets using criteria on the following rubric as appropriate for grade level. Excellent Good Satisfactory Needs

Improvement

Knowledge





Requirements










Grammar & Spelling






There are no errors in capitalization and punctuation.

There are 1-2 errors in capitalization and punctuation.


There are more than 4 errors in capitalization and punctuation.

Legibility





Neatness

Paper is clean and neat with no wrinkles.




25

3. Graphs using these additional criteria.


Accuracy

Graph fits the data well and makes it very easy to interpret. Elements are located and sized correctly.

Graph fits the data. Typically, elements are located and sized correctly.

Graph fits the data but there is minor distortion in the location and size of elements that makes interpretation difficult at times.

Graph seriously distorts the data making interpretation almost impossible. Elements are missing.

Design

Exceptionally attractive and well designed. Lines are straight and drawn with a ruler. Colors work well together.

Design contributes to readability of graph. Lines are straight. Colors help distinguish various elements

Lines are straight but the graph appears quite plain.

Appears messy. Lines are crooked.

Labeling

All elements (title, bars, axes, etc.) of the graph are clearly and attractively labeled. No spelling errors.

All elements of the graph of accurately labeled. No spelling errors.

All elements of the graph are accurately labeled but some labels are not easy to interpret. Minor spelling errors.

Some elements of the graph are not labeled OR many are difficult to interpret. There may be many spelling errors.



Collaboration





Problem-solving





Focus on the Task









26

NAME______________________________

Activity Sheet 1: I Make Choices

Stuffed Watch Skateboard Roller Blades Soccer Ball Movie Tickets Animal Draw a circle around the two things you would most like to have. What will you choose to buy? The opportunity cost of any decision is your second choice. It is what you give up to get something. What is you opportunity cost? Write two sentences telling the good points of the gift you chose. Write another sentence telling a bad point for something you didn’t choose.

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Block Master

28

Ballot

Stuffed Animal

29

Ballot

Watch

30

Ballot

Skateboard

31

Ballot

Rollerblades

32

Ballot

Soccer Ball

33

Ballot

Movie Tickets

34

Grades K-2 Language Arts: Spending and Credit

ABC in the Marketplace

INTRODUCTION Two early reader books with a multitude of illustrations provide the foundation for this lesson. On Market Street with pictures by Anita Lobel and words by Arnold Lobel provides pictures of goods bought and sold in the market place. Richard Scarry’s What Do People Do All Day? provides drawings of both the goods and services exchanged in the marketplace. The students learn that consumers buy the goods and services sold by producers. Two guessing games are played to help students differentiate between goods and services. In the first game, students provide fellow classmates with sentence clues that describe goods and how goods are used. In the second game, teams of students role play services provided by producers. To reinforce student learning, students then prepare alphabet books that have pictures of goods and services. PERSONAL FINANCE CONCEPTS See the glossary of terms for definitions of the following personal finance concepts. Consumer Goods Marketplace Opportunity cost Producer Services

CONTENT STANDARDS CORRELATIONS This lesson can be used to teach these standards and benchmarks. TEKS 3-5 Language Arts 110.2 Kindergarten The student: • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of

oral language experiences. • (3a-c, e) Listening/speaking/audiences/oral grammar. Speaks appropriately to different

audiences for different purposes and occasions. • (4a-d) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words.

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• (5a-g) Reading/print awareness. Demonstrates knowledge of concepts of print. • (7a-b) Reading/letter-sound relationships. Uses letter-sound knowledge to decode written

language. • (8a-c) Reading/vocabulary development. Develops an extensive vocabulary. • (9a-c) Reading/comprehension. Uses a variety of strategies to comprehend selections read

aloud. • (10a-d) Reading/literary response. Responds to various texts. • (12a-c) Reading/inquiry/research. Generates questions and conducts research about topics

introduced through selections read aloud and from a variety of other sources. • (14a-c, e) Writing/spelling/penmanship. Develops the foundations of writing. • (15b) Writing/composition. Composes original texts. • (16b) Writing/inquiry/research. Uses writing as a tool for learning and research. 110.3 Grade 1 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of


audiences for different purposes and occasions. • (4a-d) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (5a-h) Reading/word identification. Uses a variety of word identification strategies. • (7a-b) Reading/letter-sound relationships. Uses letter-sound knowledge to decode written

language. • (8a-g) Reading/word identification. Uses a variety of word identification strategies. • (11a-c) Reading/vocabulary development. Develops an extensive vocabulary. • (12a-g) Reading/comprehension. Uses a variety of strategies to comprehend selections read

aloud and selections read independently. • (13a-d) Reading/literary response. Responds to various texts. • (15a-d) Reading/inquiry/research. Generates questions and conducts research about topics

introduced through selections read aloud. • (17a-c, e) Writing/penmanship/capitalization/punctuation. Develops the foundations of

writing. • (18b, e) Writing/purposes. Writes for a variety of audiences and purposes, and in various

forms. • (19b-f) Writing/writing processes. Selects and uses writing processes to compose original

text. • (20a-d) Writing/spelling. Spells proficiently.

36

110.4 Grade 2 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of


audiences for different purposes and occasions. • (4a-c) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (5a-h) Reading/word identification. Uses a variety of word identification strategies. • (8a-d) Reading/vocabulary development. Develops an extensive vocabulary. • (9a-g) Reading/comprehension. Uses a variety of strategies to comprehend selctions read

aloud and selections read independently. • (10a-d) Reading/literary response. Responds to various texts. • (12a-c, g-h) Reading inquiry/research. Generates questions and conducts research using

information from various sources. • (14a-d) Writing/purposes. Writes for a variety of audiences and purposes, and in various

forms. • (15a) Writing/penmanship/capitalization/punctuation. Composes original texts using the


• (16a-d) Writing/spelling. Spells proficiently. National Standards in Personal Finance Grade 4 Benchmarks Students will know that: • (Spending and Credit) Information about goods and services comes from many sources. • (Spending and Credit) Every spending decision has an opportunity cost. • (Income) entrepreneurs, who work for themselves by starting new businesses, hope to earn a

profit, but accept the risk of a loss. Students will be able to use this knowledge to: • (Spending and Credit) Identify whether print, television, and online advertising statements

are fact or opinion. • (Spending and Credit) Identify the opportunity cost of a recent purchase. • (Income) Identify entrepreneurs in the community, and describe the risks and rewards of

starting a new business.

37

Standards for the English Language Arts Students • Read a wide range of print and nonprint texts to build an understanding of texts, of




NCEE Voluntary Standards in Economics Students will understand that • (Allocation of Goods and Services) different methods can be used to allocate goods and

services. People acting individually or collectively through government must choose which methods to use to allocate different kinds of goods and services.

• (Gain from Trade) voluntary exchange occurs only when all participating parties expect to gain. This is true for trade among individuals or organizations within a nation, and usually among individuals or organizations in different nations.

Student will be able to use this knowledge to • (Allocation of Goods and Services) Evaluate different methods of allocating goods and

services, by comparing the benefits and costs of each method. • (Gain from Trade) Negotiate exchanges and identify the gains to themselves and others.

They will be able to compare the benefits and costs of policies that alter trade barriers between nations, such as tariffs, and quotas.

STUDENT OBJECTIVES Upon completion of this lesson, the students will be able to: 1. Recognize marketplaces in their local community 2. Identify and differentiate goods and services. 3. Differentiate between consumers and producers (entrepreneurs) in the marketplace. 4. Place items in alphabetical order.

38

PERSONAL FINANCE BACKGROUND CONCEPTS A marketplace is any place where people buy and sell goods and services—it may be a collection of small shops along a street, a shopping mall, a farmer’s vegetable stand in the country, or buying and selling on the Internet. Goods are tangible things that we can see and touch like clothing, food and school supplies. Services are not tangible—they are actions that people do for other people—like haircuts, cleaning floors, and doing laundry. The people who provide goods and services are called producers. For example, barbers are producers who cut people’s hair Many producers are also entrepreneurs, such as the producer who owns the barbershop. In a marketplace, barbers and other producers are paid for the goods and services they provide. Students are producers when they do homework and household chores. The people who buy and use goods and services are consumers. Everyone is a consumer because they buy and use goods and services or these are bought for them (a baby for instance). TIME REQUIRED One or two 50-minute classes MATERIALS AND EQUIPMENT • Lobel, Anita and Arnold (1981). On Market Street. New York: Greenwillow Books,

(ISBN: 0-688-80309-1) • Scarry, Richard (1987). Busy Workers . New York: Golden Books Publishing Co.,

Inc.,(ISBN: 0-307-11872) • One index card or copy from the masters for each student that has the name of a different

good—with one extra card for the teacher to use in modeling the activity. • One index card or copy from the masters for every two students that has the name of a

different producer. • 26 8 ½” by 1” sheets of paper for each alphabet book (see master) • 2 sheets of construction paper or tag board for each alphabet book • Scissors, glue, yarn or string, and a three-hole punch for construction of books • Miscellaneous magazines, catalogs, advertisements and other print materials with pictures of

goods and service workers that students can cut and paste in their books. PROCEDURE Activity 1: On Market Street 1. Before starting the lesson, create a reference area that offers magazines, catalogs, and other

materials with pictures that can be cut out for creation of a class alphabet book.

39

2. Write the word “market” on the board and say it aloud. Ask students what they think a market is. Help them by pointing out they may have bought groceries at a ‘super’ market or vegetables at a farmer’s market. Farmers and ranchers take animals to market when they want to sell the animals. (A market is a place where people buy and sell goods [things] and services.)

3. Show the students the front cover of On Market Street and tell them they are going to take a journey to an imaginary place called “Market Street.” Market Street is a make-believe place where people buy and sell things.

4. Write the term “goods” on the board and pronounce it. Tell them that the things that are sold on Market Street are called goods. Goods are things that we can see and touch. There are lots of goods sold on Market Street. In fact, there is a good for every letter in the alphabet. Challenge them to try to remember as many of the goods as possible as you read the book.

5. Read On Market Street. Draw attention to the boy in the story and point out that he is the consumer in the story. Consumers buy goods in markets and then use them to fulfill their needs and wants.

Activity 2: Guessing Goods Game 1. Give each student an index card or copy from the masters with the name of a different good printed on

it. You may want to use some of the goods mentioned in On Market Street. Keep one card for modeling the game to the students. Caution students not to show their card to anyone else.

2. Explain how to play the game: a. One student will give clues about the good listed on his/her card. b. The other students in the class will use these clues to guess what good is on the card.

3. Model the game by giving clues for the good on your index card. 4. Instruct each student to make a list of ten sentences that provide clues to the good named on his/her

card. These clues can describe the good or tell how it is used. Sample clues for an apple include: • I am a fruit. • I am crunchy • I am often red on the outside. • Sometimes I am green. • I can taste sweet or sour. • I have seeds inside me. • Students give me to their favorite teachers. • I make a very good pie.

5. Ask one student to come to the front of the class and give one clue. A second student is given an opportunity to guess what the good is based on this first clue. When the student guesses, he/she should say, “I am a consumer and I want to buy a(n) __________.” The blank space is the name of the good being guessed.

6. If the student does not guess the correct good, another clue is given and the next student is asked to make a guess. Continue to move around the room until a student successfully names the good. The student who guesses correctly is the next person to stand and give clues. If this student has already given their clues, they select someone who has not stood to be next.

7. Repeat the guessing game until everyone has had an opportunity to give clues.

40

Activity 3: Producers Make Goods and Services 1. Write the sentence “Consumers buy goods and services” on the board. Tell students that goods aren’t

the only things consumers buy in the marketplace—consumers also buy services. 2. Explain that services are things people do for other people. Unlike goods, we can’t feel or touch

services, but we can watch someone provide a service. 3. Give some examples of services you provide as a teacher; for example, collecting lunch money,

teaching students how to do math, reading books to the class, and checking homework. 4. Open Richard Scarry’s Busy Workers to its inside back cover. Hold the book so students can see the

illustrations inside the back cover and explain that the book has pictures of another imaginary marketplace. The marketplace in On Market Street was full of goods for sale. The marketplace in Busy Workers has services.

5. Now read Busy Workers to the students. 6. Explain that producers make and sell goods and services. Consumers buy and use the goods and

services. 7. Point to various producers in the illustrations and ask questions such as:

a. Who is the producer in the auto repair shop? (the auto mechanic)

b. What service does the auto mechanic provide? (repairing cars and trucks)

c. The producer in the butcher shop is a butcher. What service does the butcher provide? (cut and sell meat and poultry)

d. Which producer picks up the trash/garbage from the shops in the market? (garbage collectors)

8. For review purposes, point to different shops in the illustration and ask students to identify some of the goods that consumers might buy. Questions that could be asked include: a. What might consumers buy at the news stand?

(newspapers, magazines, candy) b. Are these goods or services?

(goods) c. What good does an artist sell?

(painting, statues, jewelry) d. What good would you buy from a book printer?

(books)

Activity 4: Services Charades 1. Organize students into teams of two and tell them they are now going to pretend they are producers

providing services. Give each team an index card or copy from the masters with service identified on it. Tell students to keep the contents of their cards secret.

2. To play the game, teams will role play the service on their card. Their classmates will guess the service they are providing.

3. Give students time to prepare their role play. 4. Select a team to role play the service on their card. 5. Move around the class allowing each student team one guess as to the service provided. When they

guess, they must identify the producer and the service provided.

41

6. The team that guesses correctly is next to act out its service. If the team has already done so, let that

team pick the next team to role play a service. 7. Continue playing the game until all student teams have had an opportunity to role play. Activity 5: Alphabet Book 1. Tell students they are going to use what they have learned about goods and services to create an

alphabet book like One Market Street. They will create one page for each letter of the alphabet (X, Y, Z may be exception). If they are not already familiar with alphabetical order, you will need to explain the concept.

2. Provide each student with a sheet of 8 ½” x 11” paper. Model how to fold the paper in half and put a letter at the top of the page. Below the letter, they should write “GOODS” on the left hand side and “SERVICES” on the right. (Alternately, you can distribute sheets already printed with a letter and GOODS and SERVICES on them. See master.) Make available sufficient paper for all students to complete the project. If you prefer, you can save time by assigning just one or two letters to each student and construct a class Alphabet Book.

3. Instruct each student to prepare one sheet of paper for each letter of the alphabet or assign one or two letters of the alphabet to each student.

4. Instruct the students to paste a picture of a good under the word “GOODS”. Below the picture, the name of the good will be written. Under the word “SERVICES”, paste a picture of someone who provides a service and the kind of service written below the picture. Just like in On Market Street, the good and service should start with the letter on the page.

5. Show the sample page using Visual 1: Goods and Services.

G GOODS

picture

groceries

SERVICES

picture

gardening

6. Show the students the magazines, advertisements and other materials on the reference table

that they can use to find pictures. 7. Provide students with two sheets of construction paper or tag board to use as a cover for each alphabet

book. 8. Direct them to write “Consumers Buy Goods and Services” on one cover and “Producers Provide

Goods and Services” on the other. Those who have extra time can draw pictures of consumers and producers on their covers.

42

9. Show the sample cover using Visual 2: The Marketplace.

In the Marketplace

Consumers buy

Goods and Services

10. Use a hole punch and cord to bind together the pages of the books. ASSESSMENT To assess student learning, the instructor will evaluate:

43



Knowledge





Preparation





Level of Engagement










Delivery





Listening Skills





44


Improvement

Knowledge





Requirements










Grammar & Spelling










Legibility





Neatness





45

3. Alphabet book(s) of goods and services. Excellent Good Satisfactory Needs

Improvement

Knowledge





Requirements

All guidelines are followed. Goes beyond requirements on some elements.

Meets requirements. Barely meets the requirements.

Does not meet requirements. Some pages are not completed.

Graphics

Images chosen are exceptional representations.

Images are adequate representations.

Images are adequately representations but are not always easy to identify.

Images are not relevant or incomplete.

Spelling

No errors in spelling. A few minor errors in grammar and/or spelling.

Some errors in spelling. The majority are minor.

Many errors in spelling.

Appearance

Exceptionally attractive in terms of design, layout, and neatness.

Attractive in terms of design, layout, and neatness.

Acceptable though there are some problems such as corners that are not squared, messy gluing, and torn edges.

Distractingly messy and not attractive.

46

Visual 1: Goods and Services

G GOODS

groceries

SERVICES

gardening

47

Visual 2: The Marketplace

In the Marketplace

Consumers Buy

Goods

and

Services

48

clocks

eggs flowers

doughnuts

gloves hats

apples books

49

ice cream jewels

kites lollipops

noodles musical instruments

oranges playing cards

50

quilts

wigs Xmas trees

ribbons

toys shoes

vegetables umbrellas

51

yarns zippers

bus driver salesperson

waiter/waitresscar washer

house cleaner gardener

52

taxi driver florist

dog groomer hair stylist

barber dry cleaner

chimney sweep chef

53

librarian teacher

doctor

manicurist

dog walker

lawyer

dentist

photographer

54

police officer

flight attendant

military officer

park ranger crossing guard

cable installer

musician

firefighter

55

toll collector

EMT driver

accountant

pilot

physician assistant

stock broker

56

___________________

GOODS SERVICES

57

Grades K-2 Language Arts: Saving and Investing

Saving for the Future!! INTRODUCTION Students are introduced to the basics of saving to achieve a goal including why it is important to establish goals. After reading A Chair for Mother by Vera Williams and learning how the family members in the story save for their goal, the students establish goals for themselves and research the costs of these goals. Students examine the elements of a successful plan, prepare a personalized savings plan and later, prepare a written a progress report. PERSONAL FINANCE CONCEPTS See the glossary of terms for definitions of the following personal finance concepts. Bank Credit Union Earning Goal Income Interest Opportunity Cost Save Savings Savings Account

CONTENT STANDARDS CORRELATIONS This lesson can be used to teach these standards and benchmarks. TEKS 3-5 Language Arts 110.2 Kindergarten The student: • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of

oral language experiences. • (4a-d) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (5a-h) Reading/print awareness. Demonstrates knowledge of concepts of print. • (8a-c) Reading/vocabulary development. Develops an extensive vocabulary.

58

• (9a-c) Reading/comprehension. Uses a variety of strategies to comprehend selections read aloud.

• (10a-d) Reading/literary response. Responds to various texts. • (11b-c, e) Reading/text structures/literary concepts. Recognizes characteristics of various

types of texts. • (14a-e) Writing/spelling/penmanship. Develops the foundations of writing. • (15c, e-f) Writing/composition. Composes original texts. 110.3 Grade 1 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of

oral language experiences. • (4a-d) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (5a-k) Reading/print awareness. Demonstrates knowledge of concepts of print. • (11a-c) Reading/vocabulary development. Develops an extensive vocabulary. • (12a-c) Reading/comprehension. Uses a variety of strategies to comprehend selections read

aloud. • (13a-e) Reading/literary response. Responds to various texts. • (14b-c, e-i) Reading/text structures/literary concepts. Recognizes characteristics of various

types of texts. • (17a-g) Writing/spelling/penmanship/punctuation. Develops the foundations of writing. • (18c-e) Writing/purposes. Writes for a variety of audiences and purposes and in a variety of



grammar and usage. 110.4 Grade 2 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in a variety of

oral language experiences. • (4a-c) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (8a-d) Reading/vocabulary development. Develops an extensive vocabulary. • (9a-i) Reading/comprehension. Uses a variety of strategies to comprehend selections read

aloud and selections read independently. • (10a-d) Reading/literary response. Responds to various texts.

59

• (11b-c, f-j) Reading/text structures/literary concepts. Recognizes characteristics of various types of texts.

• (14a-b) writing/purposes. Writes for a variety of audiences and purposes, and in various forms.

• (15a-d) Writing/spelling/penmanship/punctuation. Composes original texts using the conventions of written language such as capitalization and penmanship to communicate clearly.

• (16a-d) Writing/spelling. Spells proficiently. • (17a-d) Writing/grammar/usage. Composes meaningful texts by applying knowledge of

grammar and usage. • (18b-f) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. National Standards on Personal Finance Spending and Credit Grade 4 Benchmarks Students will be able to: • Identify sources of income. • Explain how limited personal financial resources affect the choices people make. • Perform basic financial management tasks • Design a plan for earning, spending, saving, and investing personal financial resources. • Describe reasons for saving and reasons for investing Students will know that: • People can get income by earning wages and salaries or by receiving money gifts. • People make choices because they have limited financial resources and cannot have

everything they want. • People save for future financial goals. • Every saving decision has an opportunity cost. • Banks, savings and loan associations, and credit unions are places people can save money

and earn interest. • Piggy banks, savings accounts, and savings bonds are alternatives for savings.

60

Standards for the English Language Arts Students • Apply a wide range of strategies to comprehend, interpret, evaluate, and appreciate texts.

They draw on their prior experiences, their interactions with other readers and writers, their knowledge of word meaning and of other texts, their word identification strategies, and their understanding of textual features (e.g., sound-letter correspondence, sentence structure, context, graphics).

• Apply knowledge of language structure, language conventions (e.g., print and nonprint texts, artifacts, people) to communicate their discoveries in ways that suit their purpose and audience.

• Use a variety of technological and information resources (e.g., libraries, databases, computer networks, video) to gather and synthesize information and to create and communicate knowledge.


NCEE Voluntary Standards in Economics Students will understand that • (Scarcity). Productive resources are limited. Therefore, people can not have all the goods

and services they want; as a result, they must choose some things and give up others. • (Marginal cost/marginal benefit). Effective decision making requires comparing the


Students will be able to use this knowledge to • (Scarcity). Identify what they gain and what they give up when they make choices. • (Marginal cost/marginal benefit). Make effective decisions as consumers, producers, savers,

investors, and citizens. STUDENT OBJECTIVES Upon completion of this lesson, the students will be able to: 1. Identify a financial goal and develop a saving plan to reach it. 2. Give an example of how saving means giving up the purchase of something today for the

purchase of something in the future. 3. Draw a picture of and write a description of a favorite chair. (Optional)

61

PERSONAL FINANCE BACKGROUND CONCEPTS A goal is something that you want for yourself or someone you care about. It can be anything—a bicycle, a gift for a parent, a car or a college education. When people set aside part of their money to achieve a future goal, they are saving. They are giving up something today in order to get something later. Often people save for very expensive things that they can’t afford right away. Sometimes it is difficult to save because spending is fun. Some people put the money they are saving in a piggy bank or glass jar so they can easily get their savings when they want to use it. Unfortunately, it can also be too easy to get the money. It is tempting to spend the money on something other than one’s goal or someone could steal it. Banks and credit unions are other places people put their money. Savings accounts are a safer place to keep money and interest is earned on the money saved. Banks and credit unions pay interest to savers for the use of their money and charge interest to those who borrow money. TIME REQUIRED One 50-minute class MATERIALS AND EQUIPMENT • Williams, Vera (1982). A Chair for Mother, New York: Greenwillow Books.

(ISBN: 0-688-04074-8) • Paper and markers for students to draw pictures of their goals • Catalogs, newspaper advertisements and other materials students can use to research the cost

of their goals. • One copy of Activity Sheet 2: My Savings Plan for each student PROCEDURE Activity 1: A Chair for Mother 1. Begin the lesson by asking students:

a. How many of you have ever wanted something and been told you would have to save your money to buy it? (Answers will vary.)

b. Who was able to save enough money to buy what you wanted? (Answers will vary.)

2. Announce that the story you are going to read is about a little girl and her family who wanted something, but they didn’t have enough money to buy it. Show students the cover of the book A Chair for Mother by Vera Williams and explain that the little girl and her family wanted a chair for her mother.

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3. Explain that the word “saving” is both a verb and a noun. The little girl’s family was saving money. The money they collected over time in the jar was also called savings.

4. Explain that the little girl, her mother and her grandmother had a goal—to save enough money to buy a chair. A goal is something people plan to do or have in the future. a. Some examples of goals you might have are: to learn to ride a bicycle, learn to

rollerblade, save enough money to buy a specific item, read 10 books this school year, or go to visit a relative.

b. What is a goal that you or your family has? (Answers will vary.)

5. Read A Chair for Mother. 6. Discuss:

a. How did the little girl get money to save for the chair? (She earned it at the diner where her mother worked)

b. How did her mother get money? (She earned tips and wages)

c. Where did the grandmother’s money come from? (She saved money when buying groceries.)

d. Who else helped them save money for the chair? (Uncle Sandy provided a quarter)

e. Where did they keep their savings? (in a glass jar)

f. Did they reach their goal? (yes)

g. When the little girl’s home was destroyed in the fire, they lost lots of things. Imagine the family is going to fill the glass jar again—what other goals do you think they might have for future money they save? (Answers might include more chairs, table, rug, curtain, bed, pots, pans, silverware, dishes, toys, books)

Activity 2: My Savings Plan 1. Ask students to identify something they would like to save for such as a pet, toy or gift for a

family member. Help them to choose goals that are achievable for their age and available resources.

2. Explain that when people set goals, it is important to know how much the goal will cost in time, energy, and/or money. Knowing how much a goal costs in money helps them decide how much to save and how long it will take to reach their goal. Provide catalogs and other materials so they can research the cost of their desired item.

3. Once all students have identified a goal, have them draw a picture of the goal with a price tag stating the goal’s cost. Post their pictures on the wall under a sign that says “We are saving for our goals.” Organize the drawings from least to most expensive.

4. Tell students that to reach their goals, they will need to create a plan for saving their money. Discuss: a. How can you get money for your goal?

(earn it, allowance, gifts from grandparents, and sell something they already own are common answers)

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b. How much can you save? (Answers will vary)

c. What are you giving up to achieve your goal? (Answers will vary but may include a toy, a snack or time spent playing in order to earn money)

d. Point out that the second best use of the money that was given up so they could save the money is their opportunity cost.

5. Distribute Activity Sheet 1: My Saving Plan 6. Instruct students to develop a savings plan for their goals. Explain that some of them may

want to give their money to their parents so they are not tempted to spend their savings on something else. If they are saving for something expensive like a bicycle, they may want to put their money in a bank or credit union. People who want to save for expensive things like cars and college often put their savings in a bank or credit union because it is safer than keeping it at home in a jar or piggy bank. Financial institutions also pay interest.

7. At the end of the day, encourage students to take their picture home and post it someplace where it will remind them of their goal so they aren’t tempted to spend their money on something else.

8. In a few weeks, ask students to write a paragraph reporting on their progress toward achieving their goal.

Activity 3: My Favorite Chair 1. Show student the picture of the chair purchased in A Chair for Mother. 2. Ask students to identify words that describe the kind of chair the little girl in the story

wanted? (big, fat, stuffed, velvet, flowered)

3. Ask students to draw a picture of their favorite chair and describe it using Activity Sheet 2: My Favorite Chair.

ASSESSMENT To assess student learning, the instructor will evaluate:

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Knowledge





Preparation





Level of Engagement










Delivery





Listening Skills





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2 Worksheets and a paragraph reporting on their progress toward achieving their goal using criteria on the following rubric as appropriate.


Improvement

Knowledge





Requirements










Grammar & Spelling










Legibility





Neatness





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NAME______________________________

Activity Sheet 1: My Savings Plan A picture of my goal My goal is ______________________________________________ My goal will cost ______________________________________________ The amount I plan to save every week is ______________________________________________

It will take me this many weeks to reach my goal. ______________________________________________

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I plan to keep my money in o a piggy bank or jar at home o a savings account at a bank o other

Some of the ways I plan to get the money are 1. ________________________________________________________________ 2.________________________________________________________________ 3. ________________________________________________________________ 4. ___________________________________________________________________ My opportunity cost will be ______________________________________________

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NAME______________________________

Activity Sheet 2: My Favorite Chair Draw a picture of your favorite chair.

Describe your favorite chair. Use words that tell about its shape, color, smell, sound and use.

Language Arts & Personal Finance

Section IIGrades 3-5

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Grades 3-5 Language Arts: Income

“Mother, May I?” INTRODUCTION In this lesson, students learn about their current earning potential while using persuasive writing techniques. Students identify something they wish to buy that will require savings. They determine how long it will take them to save the money they need based on their potential earnings. Students then compile this information and strategically place it in a persuasive writing assignment to convince a parent (or guardian) to allow them to earn the money for the item they want to purchase. Students should have prior knowledge about writing paragraphs, letters, or memos. PERSONAL FINANCE CONCEPTS See the glossary of terms by following the link for these personal finance concepts. Earning Financial plan Goals Human capital Income Saving Skills Trade-offs Wages

CONTENT STANDARDS CORRELATIONS This lesson can be used to teach the following standards and benchmarks. TEKS 3-5 Language Arts 110.5 Grade 3 The student • (12d) Reading/inquiry/research. Uses multiple sources, including print such as an

encyclopedia, technology, and experts, to locate information that addresses questions (3). • (14 a-b, d) Writing/purposes. Write for a variety of audiences and purposes and in various

forms.

3

• (15 a-b) Writing/penmanship/capitalization/punctuation. Composes original texts using the conventions of written language such as capitalization and penmanship to communicate clearly.

• (16 a-h) Writing/spelling. Spells proficiently. • (17 a-e) Writing/grammar/usage. Composes meaningful texts applying knowledge of

grammar and usage. • (18 a-f) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (19 a-d) Writing/evaluation. Evaluates his/her own writing and the writing of others. • (20 a-d) Writing/inquiry/research. Use writing as a tool for learning and research. 110.6 Grade 4 The student • (13 c, e, g-h) Reading/inquiry/research. Inquires and conducts research using a variety of

sources. • (15 a-b, f) Writing/purposes. Writes for a variety of audiences and purposes, and in a variety

of forms. • (16 a-b) Writing/penmanship/capitalization/punctuation. Composes original texts, applying

the conventions of written language such as capitalization, punctuation, and penmanship to communicate clearly.

• (17 a-d) Writing/spelling. Spells proficiently. • (18 a-h) Writing/grammar/usage. Applies standard grammar and usage to communicate

clearly and effectively in writing. • (19 a-i) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (20 a-c) Writing/evaluation. Evaluates his/her own writing and the writings of others. • (22 a-b) Writing/connections. Interacts with writers inside and outside the classroom in ways

that reflect the practical uses of writing. 110.7 Grade 5 The student • (13 c, e, g-h) Reading/inquiry/research. Inquires and conducts research using a variety of

sources. • (15 a-b, f) Writing/purposes. Writes for a variety of audiences and purposes, and in a variety


the conventions of written language such as capitalization, punctuation, and penmanship to communicate clearly.

• (17 a-d) Writing/spelling. Spells proficiently. • (18 a-h) Writing/grammar/usage. Applies standard grammar and usage to communicate

clearly and effectively in writing.

4

• (19 a-i) Writing/writing processes. Selects and uses writing processes for self-initiated and assigned writing.

• (20 a-c) Writing/evaluation. Evaluates his/her own writing and the writings of others. • (22 a-b) Writing/connections. Interacts with writers inside and outside the classroom in ways

that reflect the practical uses of writing. Standards for the English Language Arts Students • Adjust their use of spoken, written, and visual language (e.g., conventions, style, vocabulary)

to communicate effectively with a variety of audiences and for different purposes. • Apply knowledge of language structure, language conventions (e.g., spelling and

punctuation), media techniques, figurative language, and genre to create, critique, and discuss print and nonprint texts.

• Conduct research on issues and interests by generating ideas and questions, and by posting problems. They gather, evaluate, and synthesize data from a variety of sources (e.g., print and nonprint texts, artifacts, people) to communicate their discoveries in ways that suit their purpose and audience.

• Whose first language is not English make use of their first language to develop competency in the English language arts and to develop understanding of content across the curriculum.


National Standards in Personal Finance Grade 4 Benchmarks Students will know that • (Income 1). People can get income by earning wages and salaries or by receiving money

gifts. • (Income 2). Workers can improve their ability to earn income by gaining new knowledge,

skills, and experiences. • (Saving and Investing 1). People save for future financial goals. • (Saving and Investing 2). Every saving decision has an opportunity cost. • (Saving and Investing 4). Piggy banks, savings accounts, and savings bonds are alternatives

for savings.

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Students could use this knowledge to: • (Income 1). Identify jobs that children can do to earn income. • (Income 2). Explain why learning new skills, such as technology and communication skills,

can increase a person’s ability to earn income. • (Saving and Investing 1). Identify a financial goal and develop a saving plan to reach it. • (Saving and Investing 2). Give an example of how saving means giving up the purchase of

something today for the purchase of something in the future. • (Saving and Investing 4). Compare the advantages and disadvantages of savings alternatives. National Council on Economic Education Voluntary Standards in Economics Students will understand that • When individuals, regions and nations specialize in what they can produce at the lowest cost

and then trade with others, both production and consumption increase. • Money makes it easier to trade, borrow, save, invest, and compare the value of goods and

services. • Income for most people is determined by the market value of the productive resources they

sell. What workers earn depends, primarily, on the market value of what they produce and how productive they are.

Students will be able to use this knowledge to • Explain how they can benefit themselves and others by developing special skills and

strengths. • Explain how their lives would be more difficult in a world with no money, or in a world

where money sharply lost its value. • Predict future earnings based on their current plans for education, training, and career

options. STUDENT OBJECTIVES Upon completion of this lesson, the students will be able to: 1. Explain the concepts of goal, wage, earning, income, saving, and trade-off. 2. Inquire and conduct research using a variety of sources. 3. Write an effective persuasive letter using correct sentence and paragraph structure, grammar,

punctuation, capitalization, and spelling.

6

PERSONAL FINANCE BACKGROUND CONCEPTS

Sometimes people do not have enough money to purchase something they want. By finding a way to earn extra money (income) and saving what they earn, they may be able to buy what they want at some point in the future. How quickly they are able to make their purchase depends on how much they are able to earn and save. Giving up the purchase of something they want today for the purchase of something in the future (trade-off) is also necessary to reach their goal. When student wants to earn money for a future goal, they may need to convince a parent or guardian that both the goal and method for earning money are appropriate. If the student plans to do chores within the home to earn the money, they may also need to convince family members that the work they are doing is worth the money they want to earn. Persuasive writing is a technique that can be used to convince others to a particular point of view—in this case, the student’s goal and means for achieving the goal. TIME REQUIRED 50 minutes MATERIALS AND EQUIPMENT • Chalkboard/Overhead projector • Chalk/Markers • One copy of Activity Sheet: My Earning and Savings Plan for each student. PROCEDURE Activity 1: Calculating Earnings 1. Begin the lesson using the following questions:

a. Do any of you have something you would like to have but don’t have the money to buy? What is it? (Answers will vary.) Write the answers on the board.

b. How much will each of the items listed on the board cost? (Answers will vary.) Write the estimates on the board.

2. When a person can’t afford to buy something they really want, they may try to find a way to earn extra money to buy it. They save the money they earn until they have enough to make their purchase. Lead discussion using the following questions: a. How could you earn money to buy the things listed on the board?

(Answers will vary but might include doing extra chores at home, delivering newspapers, helping a neighbor or older family member, starting a small business selling homemade cookies). Write the student’s ideas on the board.

b. How much do you think you can earn doing these jobs? (Answers will vary.)

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c. Do you have the skills needed to do these jobs? If not, how could you learn the skills needed? (Answers will vary but may include learning from parents, brothers or sisters, other relatives or friends; a book; TV or video; newspaper or magazine.)

d. How will the amount you can earn (wage) change depending on your skills (human capital)? (Look for the answer that the better their skills for the job the higher the wage they can earn.)

3. Divide the students into small groups. Have each group calculate how long it would take at different wage levels to earn enough money to buy one of the desired items. Each group reports to the class.

4. Tell students that they are assuming in their calculations that they will not spend the money they earn on something else before they have reached their goal (trade-offs). Ask, “What can you do to be sure you are not tempted to spend the money you earn on something else?” (Answers might be putting the money in a bank, having a parent keep the money or putting a picture of their goal next to their piggy bank as a reminder of what they want most.)

Activity 2: Persuasive Writing 1. Distribute Activity Sheet: My Earning and Savings Plan. Explain to students that they are

going to try to convince their parents to let them earn the money to buy something special that they want. Tell students that the first step is developing a plan for earning and saving money to achieve a goal. a. Choose one item that you would really like to buy but would have to earn money to

purchase. b. Research the price of the item. c. Identify jobs you can do to earn the money needed. d. Estimate what you can realistically earn (wage) each time you do the job minus any job-

related expenses. e. Calculate how long it will take to earn all the money needed. f. Specify how you will avoid the temptation to spend your money on something else.

2. When students have completed their plans, direct them to each write a persuasive letter to their parents telling them about their goal and how they want to achieve it. The letter should be so convincing that their parents won’t be able to say no. The letter should tell: a. Why your goal is important. b. How you plan to earn the money to achieve your goal. Be specific as to the amount of

money you think you can earn and how you will earn it. c. How you will avoid the temptation to spend your money on something else. d. How the adult will benefit by helping you earn the money needed for your goal.

ASSESSMENT

To assess student learning, the instructor will evaluate:

8



Improvement

Knowledge





Preparation





Level of Engagement





Mathematics

No math errors. No major math errors or serious flaws in reasoning.

May be some serious math errors or flaws in reasoning.

Major math errors or serious flaws in reasoning.






Delivery





Listening Skills





9


Improvement

Knowledge





Requirements










Grammar & Spelling



Some errors in grammar and/or spelling. The majority is minor.





Some errors in capitalization and punctuation. The majority is minor.


Legibility





Neatness





10

3. Joint efforts using these additional criteria. Excellent Good Satisfactory Needs

Improvement Collaboration





Problem-solving





Focus on the Task









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4. Persuasive letters outlining student plans for achieving a goals.


Knowledge

Demonstrates complete understanding of concepts.

Demonstrates substantial understanding of concepts

Demonstrates some understanding of concepts

Demonstrates little or no understanding of concepts.

Strategy & Procedures

Solution to problem is outstanding in terms of creativity and strategy details.

Solution is appropriate for problem and includes a detailed strategy.

Solution is marginally appropriate. Some details may be missing.

Strategy to solve problem is not appropriate. Details may be missing.

Format

Complies with all the requirements for a persuasive letter. Content is well organized.

Complies with all the requirements for a persuasive letter. Content is organized.

Complies with most of the requirements for a persuasive letter but there are a few inconsistencies.

Does not comply with requirements for a persuasive letter.

Persuasive Elements

Letter clearly expresses position with strong support statements.

Letter states a position and has convincing support statements.

Letter states a position and supports it but statements could be more convincing.

Position or support is weak, unclear or missing.

Mathematics

There are no mathematical errors.

There is one mathematical error but it does not have a significant impact on plan.

There are two mathematical errors but they have only a minor impact on the plan.

There are more than two mathematical errors OR one error has a significant impact on the plan.


Sentences and paragraphs are complete, well constructed and of varied structure.

All sentences and paragraphs are complete and well constructed (no fragments or run-ons).



Grammar & Spelling

There are no errors in grammar or spelling.

There are 1-2 errors in grammar and/or spelling.

There are 3-4 errors in grammar and/or spelling

There are more than 4 errors in grammar and/or spelling.






Length The letter is 20 or more sentences.

The letter is 15 to 19 sentences.

The letter is 10-14 sentences.

The letter is less than 10 sentences.

Legibility

Typing or writing is legible with no distracting corrections.

Typing or writing is legible but there are 1-2 distracting corrections.

Typing or writing is marginally legible OR there are 3-4 distracting corrections.

Typing or writing is not legible OR there are more than 4 distracting corrections.

Neatness

Document is clean and neat with no wrinkles.

Document is generally clean but has some folds or worn edges.

Document is slightly crumpled or stained.

Document is very crumpled or stained.

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NAME______________________________

My Earning and Savings Plan

Item Wanted Savings Goal (Cost of Item) Job Description Earnings (Minus any Expenses) Per Day or Job Number of Days or Jobs To Reach Savings Goal Two Ways to Avoid the Temptation to Spend Your Savings on Something Else 1. 2.

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Grades 3-5 Language Arts: Money Management

“Where, Oh Where, Did My Money Go?” INTRODUCTION Reading the story Alexander Who Used to Be Rich Last Sunday, students learn how impulse purchases can make it difficult to get the things we really want. They discover that some of our economic wants are more important than others—we need some things like shelter and food to survive while other things are just nice to have. Students survey their personal spending habits and those of their families. After compiling and graphing the results, they write a report comparing their personal and family spending habits. PERSONAL FINANCE CONCEPTS See the glossary by following link for following personal finance concepts. Financial plan Goals Impulse purchase Money management Needs Opportunity costs Saving Wants

CONTENT STANDARDS CORRELATIONS This lesson can be used to teach these standards and benchmarks. TEKS 3-5 Language Arts 110.5 Grade 3 The student • (1a-e) Listening/speaking/purposes. Listens attentively and engages actively in various oral

language experiences. • (3c, e) Listening/speaking/audiences/oral grammar. Speaks appropriately to different


feelings into spoken words. • (8a, c-d) Reading/vocabulary development. Develops an extensive vocabulary. • (10a-d) Reading/literary response. Responds to various texts.

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• (12a, d-h, j) Reading/inquiry/research. Generates questions and conducts research using information from various sources.

• (14a-d) Writing/purpose. Writes for a variety of audiences and purposes and in various forms.

• (15a-b) Writing/penmanship/capitalization/punctuation. Composes original texts using the conventions of written language such as capitalization and penmanship to communicate clearly.

• (16a-h) Writing/spelling. Spells proficiently. • (17a-e) Writing/grammar/usage. Composes meaningful texts applying knowledge of

grammar and usage. • (18a-f) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (19b-c) Writing/evaluation. Evaluates his/her own writing and the writing of others. 110.6 Grade 4 The student • (1 a-c) Listening/speaking/purposes. Listens actively and purposefully in a variety of

settings. • (2a-d) Listening/speaking/critical listening. Listens critically to analyze and evaluate a

speaker’s message(s). • (3a) Listening/speaking/appreciation. Listens, enjoys, and appreciates spoken language. • (5b, d, f) Listening/speaking/audiences. Speaks clearly and appropriately to different

audiences for different purposes and occasions. • (9a-e) Reading/vocabulary development. Acquires an extensive vocabulary through reading

and systematic word study. • (11a-d) Reading/literary response. Expresses and supports responses to various types of

texts. • (13a, c-h) Reading/inquiry/research. Inquires and conducts research using a variety of

sources. • (15a-c, e-f) Writing/purposes. Writes for a variety of audiences and purposes, and in a variety

of forms. • (16a-b) Writing/penmanship/capitalization/punctuation. Composes original texts using the


• (17a-d) Writing/spelling. Spells proficiently. • (18a-h) Writing/grammar/usage. Applies standard grammar and usage to communicate

clearly and effectively in writing. • (19a-h) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (20a-c) Writing/evaluation. Evaluates his/her own writing and the writings of others. • (22a) Writing/connections. Interacts with writers inside and outside the classroom in ways

that reflect the practical uses of writing. • (23b) Viewing/representing/interpretation. Understands and interprets visual images,

messages, and meanings.

15

110.7 Grade 5 The student • (1a-c) Listening/speaking/purposes. Listens actively and purposefully in a variety of

settings. • (2a-d) Listening/speaking/critical listening. Listens critically to analyze and evaluate a

speaker’s message(s). • (3a) Listening/speaking/appreciation. Listens to enjoy and appreciate spoken language. • (5b, d, f) Listening/speaking/audiences. Speaks clearly and appropriately to different

audiences for different purposes and occasions. • (9a-e) Reading/vocabulary development. Acquires an extensive vocabulary through reading

and systematic word study. • (11a-d) Reading/literary response. Expresses and supports responses to various types of

texts. • (13a, c-h) Reading/inquiry/research. Inquires and conducts research using a variety of

sources. • (15a-c, e-f) Writing/purposes. Writes for a variety of audiences and purposes, and in a variety

of forms. • (16a-b) Writing/penmanship/capitalization/punctuation. Composes original texts using the


• (17a-d) Writing/spelling. Spells proficiently • (18a-h) Writing/grammar/usage. Applies standard grammar and usage to communicate

clearly and effectively in writing. • (19a-h) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (20a-c) Writing/evaluation. Evaluates his/her own writing and the writings of others. • (22a) Writing/connections. Interacts with writers inside and outside the classroom in ways

that reflect the practical uses of writing. • (23b) Viewing/representing/interpretation. Understands and interprets visual images,

messages, and meanings. National Standards in Personal Finance Grade 4 Benchmarks Students will know that: • (Money Management 1). People make choices because they have limited financial resources

and cannot have everything they want. • (Money Management 2). A first step toward reaching financial goals is to identify needs and

wants and rank them in order of importance. • (Spending and Credit 1). To make a decision, careful consumers compare the benefits and

costs of each spending alternative. • (Spending and Credit 3). Every spending decision has an opportunity cost. • (Saving and Investing 1). People save for future financial goals.

16

Students could use this knowledge to: • (Money Management 1). Give examples of situations in which they wanted to buy something

but didn’t have enough money. • (Money Management 2). List personal financial goals and indicate which goals are needs and

which are wants. • (Spending and Credit 1). Identify the benefits and costs of buying a specific product. • (Spending and Credit 3). Identify the opportunity cost of a recent purchase. • (Saving and Investing 1). Identify a financial goal and develop a saving plan to reach it. Standards for the English Language Arts Students • Apply a wide range of strategies to comprehend, interpret, evaluate, and appreciate texts.

They draw on their prior experience, their interactions with other readers and writers, their knowledge of word meaning and of other texts, their word identification strategies, and their understanding of textual features (e.g., sound-letter correspondence, sentence structure, context, graphics).




• Students us spoken, written, and visual language to accomplish their own purposes (e.g., for learning, enjoyment, persuasion, and the exchange of information.

National Council on Economic Education Voluntary Standards in Economics Students will understand that: • (Scarcity) Productive resources are limited. Therefore, people cannot have all the goods and

services they want; as a result, they must choose some things and give up others. • (Role of Incentives) People respond predictably to positive and negative incentives. • (Gain from Trade) Voluntary exchange occurs only when all participating parties expect to

gain. This is true for trade among individuals or organizations with a nation, and usually among individuals or organizations in different nations.

17

Students will be able to use this knowledge to • (Scarcity) Identify what they gain and what they give up when they make choices. • (Role of Incentives) Identify incentives that affect people’s behavior and explain how

incentives affect their own behavior. • (Gain from Trade) Negotiate exchanges and identify the gains to themselves and others. STUDENT OBJECTIVES Upon completion of this lesson, the students will be able to: 1. Define money management. 2. Distinguish between needs and wants. 3. Identify impulse purchases and explain how they impact other things people want and can or

cannot buy. 4. Graph the results of a class survey and explain how to read the graph. PERSONAL FINANCE BACKGROUND CONCEPTS An important part of financial management is making a plan for spending our money. Wise money managers make a list of the things they need and want. They buy the things they need first and use the money left over for other things they want. Needs are the things we must have in order to survive such as food, shelter, and basic clothing. Other things we want are just nice to have them. Students may need new shoes for school because their old ones are worn or they no longer fit. When the shoes they buy have a brand name such as NIKE or REEBOK, they are satisfying wants—they may want the brand name that other students are wearing so they fit in with a certain group of peers. Impulse purchases make it more difficult to get the goods and services we need and want. When we make an impulse purchase, it is often something that wasn’t on our list of needs and wants. There is less money available to buy the things on our list of needs and/or wants. The opportunity cost of an impulse purchase is the item on our needs and wants list that we would have bought but now can’t buy because we made the impulse purchase. TIME REQUIRED 50 minutes

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MATERIALS AND EQUIPMENT • Viorst, Judith (1978). Alexander Who Used to Be Rich Last Sunday. New York: Aladdin

Paperbacks, (ISBN: 0-689-71199-1). • Chalkboard/Overhead projector • Chalk/Markers • Large sheets of paper or poster board • One copy of Activity Sheet 1: Money Spending Habits for each student PROCEDURE Activity 1: Story Time 1. Introduce the story, Alexander Who Used to Be Rich Last Sunday by saying, “Today we will

read a story about a boy who is having money management problems.” Ask students what they think “money management” means? (Money management is making and carrying out a spending and saving plan to fulfill goals.)

2. Read Alexander Who Used to Be Rich Last Sunday. 3. Lead discussion using the following questions:

a. What happened to Alexander’s money? (He bought bubble gum; lost bets with brother Anthony, Nicky, and Mom; rented a snake; paid fines for saying certain words; flushed money down the toilet; lost a nickel through a crack; paid Anthony for his candy bar; pennies vanished by magic trick; paid fine for kicking; bought half melted candle, bear with one eye, and incomplete deck of cards at a garage sale)

b. Many of the things that Alex bought were impulse purchases—he bought the items without taking time to think about what he might be giving up. What did Alex give up (opportunity cost)? (savings for a walkie talkie)

c. Impulse purchases are often things that we want versus need. Needs are things that we must have to survive like food, basic clothing and shelter. Wants are things that are just nice to have. Did Alex spend his money on wants or needs? (wants)

d. What do you spend your money on? (Answers will vary. Most student purchases will be for wants because their parents provide for their needs.) Ask students to categorize what they spend their money on as a want or a need.

e. What does your family spend its money on? (Answers will vary. Most family purchases are for needs such as food, housing, clothing, and education. Many families spend a small portion of the family income on wants such as entertainment, trips/vacations, games, going out to dinner, etc. ) Differentiate the needs and wants expenditures.

19

f. How might Alexander have managed his money so that he could buy a walkie talkie? Write their ideas on chalkboard or overhead transparency. (Examples: write down expenses, count expenses, ask someone else to hold the money for him so he can’t spend it, put money in the bank, save money.)

Activity 2: Money Spending Habits 1 Distribute Activity Sheet 1: Money Spending Habits. 2 Have each student place an “I” in the “I” column next to the items the students spend their

own money on. Direct them to place a “F” in the “F” column next to the items the adults in their home spend money on.

3 Ask several students to volunteer their answers and write them on the chalkboard or overhead transparency. Make two columns, one for students (“I”) and one for their families (“F”).

4 Lead discussion using the following questions: a. Which items that you buy are needs and which are wants?

(Put a check in front of the items students buy that are needs.) b. Which items that your family buys are needs and which are wants?

(Put a star in front of the items families buy that are needs.) c. How do the students’ and families’ lists compare and contrast?

(The parent list has many more needs while the student list has more wants.) d. What conclusions can you draw?

(Answer will vary. Parents have responsibility to provide needs for family members. Students, on the other hand, can spend most or all of their money on wants.)

e. What do you think would happen if your parents only spent money on what you spend your money on? (Answers will vary. Basic needs would not be satisfied; there would not be enough money for needs such as housing, food, and clothing; would have fun items but not the basic needs of life and thus could not survive.)

5 Have students put their survey results on master sheets hanging on the classroom wall. 6 Working in small groups, ask students to total the responses for each item and graph their

findings in either a pie chart or bar graph. 7 Ask each student to write a paragraph summarizing the results of the class survey including

how spending was similar and different.

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ASSESSMENT To assess student learning, the instructor will evaluate: 1. Student participation and oral reports using criteria in the following rubric as appropriate for

activity and grade level.


Knowledge





Preparation





Level of Engagement










Delivery





Listening Skills





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2. Worksheets using criteria on the following rubric as appropriate. Excellent Good Satisfactory Needs

Improvement

Knowledge





Requirements










Grammar & Spelling










Legibility





Neatness





22



Knowledge





Strategy & Procedures

Solution to problem is outstanding in terms of creativity and strategy details.

Solution is appropriate for problem and includes a detailed strategy.

Solution is marginally appropriate. Some details may be missing.

Strategy to solve problem is not appropriate. Details may be missing.

Format





Persuasive Elements





Mathematics

There are no mathematical errors.

There is one mathematical error but it does not have a significant impact on plan.

There are two mathematical errors but they have only a minor impact on the plan.

There are more than two mathematical errors OR one error has a significant impact on the plan.






Grammar & Spelling














Legibility





Neatness





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4. Graphs using these additional criteria. Excellent Good Satisfactory Needs

Improvement

Accuracy





Design





Labeling





5. Joint efforts using these additional criteria. Excellent Good Satisfactory Needs

Improvement Collaboration





Problem-solving





Focus on the Task









24

NAME______________________________

Activity Sheet 1: Money Spending Habits Directions: Read the categories that people spend money on. Put a “I” in front of the items you frequently buy. Now think about your parents. What do they buy? Put a “F” next to the items they buy. On what do YOU and YOUR FAMILY spend money? You Family Goods/Services _____ _____ rent/mortgage

_____ _____ clothes

_____ _____ video games and movies

_____ _____ music CD’s and tapes

_____ _____ vacation

_____ _____ going to a movie or sporting event

_____ _____ gifts

_____ _____ taxes

_____ _____ candy and other snacks

_____ _____ car repairs and gasoline

_____ _____ doctors

_____ _____ fast food

_____ _____ sports equipment

_____ _____ toys

_____ _____ groceries

_____ _____ insurance

_____ _____ utilities (electric/gas)

_____ _____ school supplies (paper, pens, notebooks)

25

Grades 3-5 Language Arts: Spending and Credit

“Advertising – Good or Bad?”

INTRODUCTION The purpose of this lesson is to help students understand the sometimes conflicting roles of advertising as a means for businesses to promote goods and services and as a source of information for consumers. Students examine how advertising uses all five of our senses to get our attention and then analyze common techniques used to convince consumers to purchase a product. After reading Arthur’s TV Trouble by Marc Brown, an activity sheet is used to assess student reading comprehension and understanding of the role of advertising. Students are asked to write a persuasive letter to the main character of the book telling him why he should not purchase another item he sees advertised on television. In a third activity, students are challenged to create a multi-media advertising campaign promoting a product. PERSONAL FINANCE CONCEPTS See the glossary by following links for following personal finance concepts. Advertising Business Consumer Emotional Appeal Jingle Price Quality Slogan Opportunity Cost Testimonial

CONTENT STANDARDS CORRELATIONS This lesson can be used to teach these standards and benchmarks. TEKS 3-5 Language Arts

26

110.5 Grade 3 The student • (3a, c-e) Listening/speaking/audiences/oral grammar. Speaks appropriately to different


feelings into spoken words. • (5a-f) Reading/word identification. Uses a variety of word identification strategies. • (6a-c, e) Reading/fluency. Reads with fluency and understanding in texts at appropriate

difficulty levels. • (8a-d) Reading/vocabulary development. Develops an extensive vocabulary. • (9a, c-h, j) Reading/comprehension. Uses a variety of strategies to comprehend selections

read aloud and selections read independently. • (10a-c) Reading/literary response. Responds to various texts. • (11e, h-j) Reading/text structures/literary concepts. Analyzes the characteristics of various

types of texts. • (12a, d, g-j) Reading/inquiry/research. Generates questions and conducts research using

information from various sources. • (14a-d) Writing/purposes. Writes for a variety of audiences and purposes and in various

forms. • (15a-b) Writing/penmanship/capitalization/punctuation. Composes original texts using the


• (16a-h) Writing/spelling. Spells Proficiently. • (17a-e) Writing/grammar/usage. Composes meaningful texts applying knowledge of

grammar and usage. • (18a-f) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (19a-c) Writing/evaluation. Evaluates his/her own writing and the writing of others. • (20a-d) Writing/inquiry/research. Uses writing as a tool for learning and research. 110.6 Grade 4 The student • (2a-d) Listening/speaking/critical listening. Listens critically to analyze and evaluate a

speaker’s message(s). • (5a, c-d, f) Listening/speaking/audiences. Speaks clearly and appropriately to different

audiences for different purposes and occasions. • (6a-c) Reading/word identification. Uses a variety of word recognition strategies. • (7a-d) Reading/fluency. Reads with fluency and understanding in texts at appropriate

difficulty levels. • (9a-e) Reading/vocabulary development. Develops an extensive vocabulary. • (10a-h, j-k) Reading/comprehension. Comprehends selections using a variety of strategies.

27

• (11a-d) Reading/Literary response. Expresses and supports responses to various types of texts.

• (12a-c, h-j) Reading/text structures/literary concepts. Analyzes the characteristics of various types of texts (genres).

• (13a, c, eh) Reading/inquiry/research. Inquires and conducts research using a variety of sources.

• (15a-c, f) Writing/purposes. Writes for a variety of audiences and purposes, and in a variety of forms.

• (16a-b) Writing/penmanship/capitalization/punctuation. Composes original texts, applying the conventions of written language, including capitalization, punctuation, and penmanship, to communicate clearly.


clearly and effectively in writing. • (19a-i) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (20a-c) Writing/evaluation. Evaluates his/her own writing and the writings of others. • (21a-f) Writing/inquiry/research. Uses writing as a tool for learning and research. • (23a-c) Viewing/representing/interpretation. Understands and interprets visual images,

messages, and meanings. • (24a-b) Viewing/representing/analysis. Analyzes and critiques the significance of visual

images, messages, and meanings. • (25a-b) Viewing/representing/production. Produces visual images, messages, and meanings

that communicate with others. 110.7 Grade 5 The student • (2a-d) Listening/speaking/critical listening. Listens critically to analyze and evaluate a

speaker’s message(s). • (5a, c-d, f) Listening/speaking/audiences. Speaks clearly and appropriately to different

audiences for different purposes and occasions. • (6a-c) Reading/word identification. Uses a variety of word recognition strategies. • (7a-d) Reading/fluency. Reads with fluency and understanding in texts at appropriate

difficulty levels. • (9a-e) Reading/vocabulary development. Develops an extensive vocabulary. • (10a-h, j-k) Reading/comprehension. Comprehends selections using a variety of strategies. • (11a-d) Reading/Literary response. Expresses and supports responses to various types of

texts. • (12a-c, h-j) Reading/text structures/literary concepts. Analyzes the characteristics of various

types of texts (genres). • (13a, c, eh) Reading/inquiry/research. Inquires and conducts research using a variety of

sources.

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• (15a-c, f-g) Writing/purposes. Writes for a variety of audiences and purposes, and in a variety of forms.

• (16a-b) Writing/penmanship/capitalization/punctuation. Composes original texts, applying the conventions of written language, including capitalization, punctuation, and penmanship, to communicate clearly.


clearly and effectively in writing. • (19a-i) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (20a-c) Writing/evaluation. Evaluates his/her own writing and the writings of others. • (21a-f) Writing/inquiry/research. Uses writing as a tool for learning and research. • (23a-c) Viewing/representing/interpretation. Understands and interprets visual images,

messages, and meanings. • (24a-b) Viewing/representing/analysis. Analyzes and critiques the significance of visual

images, messages, and meanings. • (25a-b) Viewing/representing/production. Produces visual images, messages, and meanings

that communicate with others. National Standards in Personal Finance Grade 4 Benchmarks Students will be able to: • (Money Management 3) Discuss the importance of taking responsibility for personal

financial decisions • (Money Management 4) Apply a decision-making process to personal financial choices. • (Spending and Credit 2) Evaluate the quality of consumer information from different sources Students will know that: • (Money Management 3) A first step toward reaching financial goals is to identify needs and

wants and rank them in order of importance. • (Money Management 4) A decision-making process can help people make money decisions. • (Spending and Credit 2) Information about goods and services comes from many sources.

29

Standards for the English Language Arts Students • Apply a wide range of strategies to comprehend, interpret, evaluate, and appreciate texts.

They draw on their prior experience, their interactions with other readers and writers, and their understanding of textual features (e.g., sound-letter correspondence, sentence structure, context, graphics).

• Adjust their use of spoken, written, and visual language (e.g., conventions, style, vocabulary) to communicate effectively with a variety of audiences for different purposes.


• Conduct research on issues and interests by generating iideas and questions, and by posing problems. They gather, evaluate, and synthesize data from a variety of sources (e.g., print and nonprint texts, artifacts, people) to communicate their discoveries in ways that suit their purpose and audience.



NCEE Voluntary Standards in Economics Students will know that • (Scarcity) Productive resources are limited. Therefore, people can not have all the goods

and services they want; as a result, they must choose some things and give up others. • (Role of Incentives) People respond predictably to positive and negative incentives. Students will be able to use this knowledge to • (Scarcity) Identify what they gain and what they give up when they make choices. • (Role of Incentives) Identify incentives that affect people’s behavior and explain how

incentives affect their own behavior. STUDENT OBJECTIVES Upon completion of this lesson, the students will be able to: 1. Identify samples of various advertising techniques and explain how they work 2. Explain the conflicting roles of advertising as a source of information and means of

persuasion 3. Write a persuasive letter outlining reasons a person should be skeptical of advertising. 4. Develop an advertising campaign to illustrate advertising techniques and formats.

30

PERSONAL FINANCE BACKGROUND CONCEPTS Product advertisements are used by businesses to tell consumers about goods and services that are available—businesses hope they can convince people to buy their product. To get our attention, advertisements appeal to all five of our senses—sight, hearing, smell, taste and touch. Places where advertisements are found include newspapers and magazines, telephone books, on radio and television, on public signs and in our mailboxes. Some sellers use gimmicks like hot air balloons, sporting events, and free gifts with the name of a company or product on it. A variety of persuasion techniques are used in advertisements; some are more useful to consumers than others. Advertisements that provide factual information on product features, price, quality and availability can help consumers comparison shop. In contrast, advertisements that use the testimony of a famous person, a catchy slogan or jingle, or appeal to our emotions may convince us to buy something we really don’t need. TIME REQUIRED Three 50-minute classes MATERIALS AND EQUIPMENT • Brown, Marc (1995). Arthur’s TV Trouble, New York: Scholastic, Inc.

(INBS 0-590-97314-2). • One copy of Activity Sheet 1: Advertising Techniques Analysis for each student • One copy of Activity Sheet 2: Arthur’s TV Trouble for each student • One copy of Activity Sheet 3: Who Can Help Us? for each student. • Master for What Grabs Your Attention? bulletin board • One copy of Who Can Help Us? class reading for each student • Sample advertisements for bulletin board “What Grabs You Attention? • Tape recorder, camera, poster board and art supplies for recording sample advertisements and

creating an advertising campaign.

PROCEDURE Activity 1: What Grabs Your Attention? 1. Prepare a bulletin board titled “What Grabs Your Attention?” using advertisements from

magazines, newspapers and other sources that are especially attention getting. The collection of ads should include a variety of techniques to garner the attention of the five senses, for example:

Sight. Print ads with color, graphics, or pictures of famous people and experts; words such as free and new.

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Sound. A catchy slogan such as Rice Krispies “Snap, Crackle, Pop” or Frosted Flakes “They’re Grreat”; a photo of a popular musician such as Michael Jackson whose music is used for a soda or other commercial. Smell. Perfume or fabric softener scent sample from a magazine, sample perfume bottle. Taste. Sample foods such as a small pack of peanuts or a miniature candy bar. Touch. Textured paper used in a print ad, fabric sample for upholstery or clothing

2. Show students several different samples of advertising for goods and services; for example, a

newspaper ad, a catalog, and an item of clothing such as a hat or T-shirt with the name of a company or product on it, and a television commercial that uses a catchy jingle. Again, try to include at least one example that appeals to each of the five senses. Ask students: a. What do all of these things have in common?

(They are advertisements calling attention to a good or service). b. What other ways do businesses tell us about their products?

(Answers may include television, radio, the Internet, magazines, billboards, store signs/displays, signs on public transportation, clothing, product packages, free samples). As students offer suggestions, write them on the board.

c. Who pays for these advertisements? (The business that wants to sell the good or service and ultimately, the consumer who buys the product.)

d. Why do you think a business pays for these advertisements? (Answers may include the business wants people to like the business or product, to help people learn about what the business is selling or to encourage people to buy what is being promoted)

3. Ask students to look at the bulletin board “What Gets Your Attention?” Tell students that businesses get our attention through our five senses—sight, hearing, smell, taste, and touch.

4. As a class analyze the ad samples you showed previously and those on the board. Identify how each advertisement appeals to our senses.

5. Divide students into groups of four or five students. As a homework or class activity assignment, ask each group to identify five ad samples. There should be at least one ad sample for each of the five senses. Encourage those who find advertisements on radio or television to tape the ad, write down the words, or act them out in front of the class. Students can draw pictures of or photograph other items that are too large to bring to class such as billboards and store signs.

6. Each group presents their ads to the class. Activity 2: Advertising Techniques Analysis 1. Distribute Activity Sheet 1: Advertising Techniques Analysis. Explain to students that

besides getting our attention, businesses use advertisements to tell us about their goods and services—businesses hope they can convince us to buy their product. There are a variety of techniques that sellers use in advertising. Some are more helpful to consumers than others.

32

2. Using sample advertisements already collected by you and the students, find an example of each technique and discuss how it is being used. Identify information that would help consumers and what additional information not in the ad that would be helpful to consumers.

3. Direct students to complete Activity Sheet 1: Advertising Techniques Analysis by collecting and analyzing five print advertisements from magazines, newspapers, direct mail flyers, etc. that provide an example of each advertising technique.

4. After students have completed Activity Sheet 1, use the advertisements collected to discuss: a. What kinds of emotional appeals were used to convince you to buy the products

advertised? (Answers may include being popular, more attractive, a better parent)

b. What kinds of product and quality information were given that would help you make a decision to buy or not to buy this good or service? (what makes the product or business special, warranties, cost, where the product can be purchased)

c. Why do you think some information wasn’t included in the advertisement? (not enough space or time, the business only wants to tell what is good about the product—not the bad or what it thinks will catch our attention or what will make us buy)

6. Summarize by reminding students that advertisements are created to convince us that a businesses’ product or service is better than everyone else’s product or service. The advertiser is trying to convince us to buy. Advertising can make us buy something for the right or wrong reason.

Activity 3: Warning Arthur 1. Ask students to read or read to the students Marc Brown’s Arthur’s TV Trouble and use the

information in the story to complete Activity Sheet 2: Arthur’s TV Troubles. 2. Discuss their answers on Activity Sheet 2: Arthur’s TV Troubles to determine their

comprehension of the story and effects of advertising on Arthur’s actions. 3. Direct students to write a letter to Arthur warning him about the advertising claims for the

Magic Disappearing Box. Students should tell Arthur why he needs to be wary of claims, such as that the box will astound his friends and eliminate his enemies.

Activity 4: Developing an Advertising Campaign 1. Tell the students that they will create an ad campaign for a product. 2. Discuss the features that might be included in the ads, such as name of product, what makes

the product special, where to get the product, quantity, price, and a slogan that’s easy to remember.

3. Divide students into small groups. 4. Instruct the groups that their advertising campaign will:

a. Include one print ad and one radio or TV script b. Use two or more of the advertising techniques

5. Student groups present their advertising campaigns to the class. 6. Students vote by secret ballot on the product or service they would most likely buy if they

had the money and which one they would most likely not buy.

33

7. Discuss the class vote: a. Why did you vote as you did?

(Answers will vary; may include liked the product or service, catchy, need the product or service, fun product, useful product or service)

b. Which advertising campaign had the most effect on you? Why? (Answers will vary.) List effects on the board.

c. Students identify the top three effects on them. Tabulate on the board. 8. Instruct each student to design a graph (pie or line) to present the tabulation. Activity 5: Who Can Help Us? 1. Introduce the activity by discussing,

a. What can we do if we think we have been misled by advertising or have some other problem with a good that we bought? (Answers will vary. Look for file a complaint with a government agency.)

b. What government agencies would you go to? (Answers will vary. Look for Federal Trade Commission, Consumer Product Safety Commission, and USDA.)

2. Distribute and instruct the students to read the Who Can Help Us? reading. 3. Based on information from class discussion and the reading, assign the students to complete

Activity Sheet 3: Who Can Help Us? 1. Divide students into small groups and assign each of them a local, state, or federal agency to

research. Each group develops an oral report based on their research. Agencies could include local Health Department, Texas Department of Insurance, Texas Consumer Protection Division of the Office of Attorney General, Texas Department of Banking, Texas Securities Board, Texas Public Utility Commission, Texas Weights and Measures, federal Office of Weights and Measures, Federal Student Aid Information Center, Food and Drug Commission, Occupational Safety and Health Administration, Savings Bonds Marketing Office – Customer Service Center, and Federal Reserve System – Division of Consumer and Community Affairs.

2. Student groups present oral reports to the class.

34



Improvement

Knowledge





Preparation





Level of Engagement










Delivery





Listening Skills





35

2. Worksheets using criteria on the following rubric as appropriate for grade level.


Knowledge





Requirements










Grammar & Spelling










Legibility





Neatness





36

3. Presentation of advertising campaigns including at least one print ad and one radio or TV script.


Knowledge





Requirements

Goes beyond requirements. All elements are completed with exceptional detail and creativity

Meets requirements. All elements are completed with appropriate detail and creativity.

Barely meets the requirements with minimal creativity.


Organization of Content

Content is well organized.

Content is logically organized.

Content is logically organized for the most part.

There was no clear or logical organizational structure.

Attractiveness of Visuals

Excellent use of font, color, graphics, effects, etc. to enhance the presentation.

Good use of font, color, graphics, effects, etc. to enhance to presentation.

Use of font, color, graphics, effects, etc. but occasionally these detract from the presentation content.

Use of font, color, graphics, effects etc. but these often distract from the presentation content.

Mechanics

No misspellings or grammatical errors.

One or two errors in spelling and grammar.

Three or four errors in spelling and grammar.

More than 4 errors in spelling or grammar.

Overall Presentation

Well-rehearsed with smooth delivery that holds audience attention.

Rehearsed with fairly smooth delivery that holds audience attention most of the time.

Delivery not smooth, but able to maintain interest of the audience most of the time.

Delivery not smooth and audience attention often lost.

37



Knowledge





Format





Persuasive Elements










Grammar & Spelling














Legibility





Neatness





38



Accuracy





Design





Labeling







Collaboration





Problem-solving





Focus on the Task









39

What Grabs Your Attention?

SMELL

SIGHT SOUND

TASTE

TOUCH

OUR FIVE

SENSES

40

NAME_________________________

Activity Sheet 1: Advertising Techniques Analysis

Advertisements tell consumers about goods, services, and companies. They can make us see something in a new way. Businesses hope they can convince us to buy their goods and services. To achieve this goal several different advertising techniques are used. Sometimes more than one technique is used in the same advertisement. 1. Jingles and slogans are short, simple, fun phrases that help us remember a product. Every

time we hear the jingle or the slogan, we think of the product. 2. Testimonials have people who say they like or use a product. These people are often paid to say nice

things. Some testimonials are given by ordinary people while others are given by famous persons such as athletes and movie stars.

3. Price comparisons tell consumers they can save money because the product is on sale or less

expensive than other similar products. 4. Quality comparisons tell how a product is better than others. It may identify unique design features,

product reliability, a warranty for replacement and repairs, or how the product is healthier or safer. 5. Emotional appeals tell people the product will make their life or their family’s life better—they will

be more popular or life will be fun and exciting. Consumers can benefit from advertising that tells us about a product, the product’s cost and where it can be purchased. Find five magazine ads that use the techniques described. For each ad, write a paragraph that answers the questions below. What product is being advertised? What company is promoting the good or service? What advertising technique(s) is being used and how is it being used? How effective is this advertising technique to make you want to buy the product? What other information would you like to know about this product before you buy it?

41

NAME______________________________

Advertising Techniques Analysis 1. PRODUCT______________________________________________________ 2. PRODUCT______________________________________________________ 3. PRODUCT______________________________________________________

42

4. PRODUCT______________________________________________________ 5. PRODUCT______________________________________________________

43

NAME______________________________

Activity Sheet 2: Arthur’s TV Trouble

Teacher Master

Ads can also be misleading if we don’t understand their purpose. They can make us want to buy something for the wrong reason. What did Arthur buy with the money he earned stacking newspapers? One Treat Timer How much did it cost? $19.95 List four places Arthur saw this item advertised.

1. TV ad on the Bionic Bunny Show 2. Newspaper 3. Radio ad 4. Billboard

How did the advertisement convince Arthur to buy this item? Convinced him his dog Pal needed one. Dogs love Treat Timers. Only $19.95 Item looked big and sounded fun on TV. Why do you think Pal barked and ran for cover when he saw what Arthur had bought? Pal was scared of the noise, flashing lights and the treats shooting out. What did the sign “All Sales Final” in the store mean? The product cannot be returned even if it does not work right or is defective. It is sold “as is”. Would you buy something that had a sign saying “All Sales Final”? Explain your answer. Answers will vary. Look for reasons such as might lose my money, too risky, if the price is low it might be worth the risk.

44

NAME______________________________

Activity Sheet 2: Arthur’s TV Trouble

Ads can also be misleading if we don’t understand their purpose. They can make us want to buy something for the wrong reason. What did Arthur buy with the money he earned stacking newspapers? How much did it cost? List four places Arthur saw this item advertised.

1. 2. 3. 4.

How did the advertisement convince Arthur to buy this item? Why do you think Pal barked and ran for cover when he saw what Arthur had bought? What did the sign “All Sales Final” in the store mean? Would you buy something that had a sign saying “All Sales Final”? Explain your answer.

45

ADVERTISING CAMPAIGN BALLOT Product or service I would buy: ______________________________________________ Product or service I would not buy: ___________________________________________



46

Who Can Help Us?

Have you ever bought something and found out later that it didn’t work like the advertisement said it would? Maybe it was broken during shipping and no one knew until you opened the box. Or maybe the advertisement made it sound better that it really was. A responsible seller will let you bring a broken item back and let you exchange it for one that isn’t broken. If you are dissatisfied with your purchase for another reason, the seller will probably offer you a credit to buy something else or give you your money back.

But what if the seller won’t make things right. There are laws and government agencies that can help you and other consumers. The Federal Trade Commission (FTC) is a federal agency that sets and enforces rules regarding how goods and services are advertised. For example, it is the FTC that requires advertisers to tell you in an advertisement when batteries will be needed for a toy to work. The federal government wants to make sure you know before you buy that you will need to buy something else before the toy works the way it is shown in the ad. The FTC knows that the purpose of advertising is to persuade and that most ads are biased toward making the product look and sound good. Advertisers, however, are not allowed to lie. Deceptive advertisements mislead us and are illegal.

If the product you have purchased could hurt you or someone else, you can contact the Consumer Product Safety Commission (CPSC). This federal agency sets rules to prevent the sales of goods that are dangerous. For example, the CPSC has a rule that toys should not have parts under a specific size that could be swallowed by very young children. Perhaps you have gotten a toy at a fast food restaurant that was recalled by the CPSC because it did not satisfy this small parts rule. The CPSC also tries to stop unsafe toys from getting to stores. They look for toys with small parts, sharp edges, and other features that could make a toy dangerous. The CPSC is interested in more than just toys, it looks for other goods (excluding food) that might be unsafe like clothing and furniture that can catch on fire easily, bunk beds that can collapse because they were not made properly, and car seats that don’t protect children in accidents the way they are supposed to.

There are several federal, state and local agencies that work to make sure the food you eat is safe and that what the seller promises on the food label is true. The U.S. Department of Agriculture (USDA) sets content and safety for some of the food we eat. For example, it says that orange juice must be 100% orange juice and how much fat must be in ice cream. The USDA inspects the places where meat is produced to make sure it is safe for us to eat. Another federal agency, the Food and Drug Administration, also helps make sure that the food we eat as well as the medicines we use when we are sick are safe. Locally, the ??????? inspects the kitchens of the restaurants where we eat to be sure they are clean and our food is being prepared safely. If the restaurant is not following local regulations, they may be shut down until the problem is fixed.

Within your state, there are other government agencies that can help make sure you are treated fairly in the market. You probably take for granted that when you buy a pound of fruit or vegetables that you really are getting a pound. When adults buy gas, how do they know they have really pumped ten gallons of gasoline? The Texas ………..???? helps make sure you are not cheated. It/They check the accuracy of scales and pumps. When they learn there is a problem they will make the seller fix it. The seller may also be forced to pay a money penalty called a fine for the illegal practice.

47

NAME______________________________

Activity Sheet 3: Who Can Help Us?

Teacher Master Federal Trade Commission Local Weights and Measures Consumer Product Safety Commission Local Department of Health U.S. Department of Agriculture Food and Drug Administration Read each consumer problem below then write the name of one of the organizations above that

can help. 1. Straight pins start to stick out of Antonia’s new stuffed animal. Consumer Product Safety Commission 2. Kevin sees a racing car advertised on television that does all kinds of stunts like doing loops

and jumping across huge spaces. When he buys the car, he finds it doesn’t do the things he saw it do in the advertisements.

Federal Trade Commission 3. Candy found a dead bug in her hamburger at a local restaurant.

U.S. Department of Agriculture regulates meat, poultry, and eggs. Most other types of food are regulated by the Food and Drug Administration.

4. At the farmer’s market, Devon bought a pound of strawberries. When he walked around to

other stalls at the market, he realized his pound look smaller than the pounds sold by other sellers. He checked the weight and discovered he had not received a full pound.

Local (local, county, or state) Department of Weights and Measures 5. Jason was given an electronic game for his birthday. When he plugged it in, he got an

electrical shock.

Consumer Product Safety Commission. May also contact Consumer Protection Division of the Texas Office of Attorney General.

Search the government section of the phone book to find other government agencies that might be able to help solve consumer problems. Examples include: Department of Banking, Department of Insurance, State Securities Board, Public Utility Commission, National Highway Traffic Safety Administration, Safe Drinking Water Hotline, Social Security Administration, U.S. Postal Service. Find out whether any local newspapers or television stations help consumers solve problems.

48

NAME______________________________

Activity Sheet 3: Who Can Help Us?

Federal Trade Commission Local Weights and Measures Consumer Product Commission Local Department of Health U.S. Department of Agriculture Food and Drug Administration Read each consumer problem below then write the name of one of the organizations above that

can help. 1. Straight pins start to stick out of Antonia’s new stuffed animal. 2. Kevin sees a racing car advertised on television that does all kinds of stunts like doing loops

and jumping across huge spaces. When he buys the car, he finds it doesn’t do the things he saw it do in the advertisements.

3. Candy found a dead bug in her hamburger at a local restaurant. 4. At the farmer’s market, Devon bought a pound of strawberries. When he walked around to

other stalls at the market, he realized his pound look smaller than the pounds sold by other sellers. He checked the weight and discovered he had not received a full pound.

5. Jason was given an electronic game for his birthday. When he plugged it in, he got an

electrical shock. Search the government section of the phone book to find other government agencies that might

be able to help solve consumer problems. Find out whether any local newspapers or television stations help consumers solve problems.

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Grades 3-5 Language Arts: Saving and Investing

“Saving and Investing Choices” INTRODUCTION Students become investigators exploring their savings and investing options in this series of activities. Students begin by reading background information on saving and investing opportunities that are most likely to be available to young persons. The first step in the investigation is researching savings accounts available in their local community. Next, they interview persons representing a bank and credit union to find out more about how financial institutions operate and the kinds of workers these institutions employ. Students then move on to other options including certificates of deposit, stocks, bonds, mutual funds, and collectibles. They examine the relative risk of the different instruments and the relationship between risk and return. In a culminating activity, students create a chart summarizing the pros and cons of the saving and investing instruments studied and then write paragraphs telling where they would put their money given two different scenarios—one for short-term savings and another for long-term savings/investing. PERSONAL FINANCE CONCEPTS See the glossary by following link for following personal finance concepts. Bonds Certificate of Deposit Collectibles Dividend Decision making Interest Investments Liquidity Maturity Mutual funds Opportunity cost Return Risk Safety of principal Savings Stocks

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CONTENT STANDARDS CORRELATIONS This lesson can be used to teach these standards and benchmarks. TEKS 3-5 Language Arts 110.5 Grade 3 The student • (1 a, d) Listening/speaking/purposes. Listens attentively and engages actively in various oral

language experiences. • (3 a, c-d) Listening/speaking/audiences/oral grammar. Speaks appropriately to different

audiences for different purposes and occasions. • (4 a, c) Listening/speaking/communication. Communicates clearly by putting thoughts and

feelings into spoken words. • (6 a-b, e) Reading/fluency. Reads with fluency and understanding in texts at appropriate

difficulty levels. • (8 a-c) Reading/vocabulary development. Develops an extensive vocabulary. • (9 a-b, d, f, h) Reading/comprehension. Uses a variety of strategies to comprehend selections

read aloud and selections read independently. • (10 b) Reading/literacy response. Responds to various texts. • (12 a, c-g, I-j) Reading/inquiry/research. Generates questions and conducts research using

information from various sources. • (14 b-c) Writing/purposes. Writes for a variety of audiences and purposes and in various

forms. • (15 a-b) Writing/penmanship/capitalization/punctuation. Composes original texts using the


• (16 a-h) Writing/spelling. Spells proficiently. • (17 a-e) Writing/grammar/usage. Composes meaningful texts applying knowledge of

grammar and usage. • (18 d-e) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (20 a-d) Writing/inquiry/research. Uses writing as a tool for learning and research. 110.6 Grade 4 The student • (1 a-c) Listening/speaking/purposes. Listens actively and purposefully in a variety of

settings. • (2 a-d) Listening/speaking/critical listening. Listens critically to analyze and evaluate a

speaker’s message(s).

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• (5 a-b, d, f) Listening/speaking/audiences. Speaks clearly and appropriately to different audiences for different purposes and occasions.

• (6 a-c) Reading/word identification. Uses a variety of word recognition strategies. • (7 a-d, f) Reading/fluency. Reads with fluency and understanding in texts at appropriate

difficulty levels. • (9 b-e) Reading/vocabulary development. Acquires an extensive vocabulary through reading

and systematic word study. • (10 a-c, f-g, k) Reading/comprehension. Comprehends selections using a variety of

strategies. • (11 c-d) Reading/literary response. Expresses and supports responses to various types of

texts. • (13 a-e, g-h) Reading/inquiry/research. Inquires and conducts research using a variety of

sources. • (15 a, c) Writing/purposes. Writes for a variety of audiences and purposes, and in a variety


the conventions of written language, including capitalization, punctuation, and penmanship, to communicate clearly.

• (17 a-c) Writing/spelling. Spells proficiently. • (18 a-h) Writing/grammar/usage. Applies standard grammar and usage to communicate

clearly and effectively in writing. • (19 f, I) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (21 a-c, f) Writing/inquiry/research. Uses writing as a tool for learning and research. 110.7 Grade 5 The student: • (1 a-c) Listening/speaking/purposes. Listens actively and purposefully in a variety of

settings. • (2 a-d) Listening/speaking/critical listening. Listens critically to analyze and evaluate a

speaker’s message(s). • (5 a-b, d, f) Listening/speaking/audiences. Speaks clearly and appropriately to different

audiences for different purposes and occasions. • (6 a-c) Reading/word identification. Uses a variety of word recognition strategies. • (7 a-d, f) Reading/fluency. Reads with fluency and understanding in texts at appropriate

difficulty levels. • (9 b-e) Reading/vocabulary development. Acquires an extensive vocabulary through reading

and systematic word study. • (10 a-c, f-g, k) Reading/comprehension. Comprehends selections using a variety of

strategies. • (11 c-d) Reading/literary response. Expresses and supports responses to various types of

texts.

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• (13 a-e, g-h) Reading/inquiry/research. Inquires and conducts research using a variety of sources.

• (15 a, c) Writing/purposes. Writes for a variety of audiences and purposes, and in a variety of forms.

• (16 a-b) Writing/penmanship/capitalization/punctuation. Composes original texts, applying the conventions of written language, including capitalization, punctuation, and penmanship, to communicate clearly.

• (17 a-c) Writing/spelling. Spells proficiently. • (18 a-h) Writing/grammar/usage. Applies standard grammar and usage to communicate

clearly and effectively in writing. • (19 f, I) Writing/writing processes. Selects and uses writing processes for self-initiated and

assigned writing. • (21 a-c, f) Writing/inquiry/research. Uses writing as a tool for learning and research. National Standards in Personal Finance Grade 4 Benchmarks Students will know that: • (Money Management 3) A decision-making process can help people make money decisions. • (Saving and Investing 2) Every saving decision has an opportunity cost. • (Saving and Investing 3) Banks, savings and loan associations, and credit unions are places

people can save money and earn interest. • (Saving and Investing 4) Piggy banks, savings accounts, and savings bonds are alternatives

for savings. Students could use this knowledge to: • (Money Management 3) Make a financial decision, using decision-making process steps. • (Saving and Investing 2) Give an example of how saving means giving up the purchase of

something today for the purchase of something in the future. • (Saving and Investing 3) Identify financial institutions in their community and the interest

paid on accounts at each place. • (Saving and Investing 4) Compare the advantages and disadvantages of savings alternatives. Standards for the English Language Arts Students • Apply a wide range of strategies to comprehend, interpret, evaluate, and appreciate texts.

They draw on their prior experience, their interactions with other readers and writers, their knowledge of word meaning and of other texts, their word identification strategies, and their understanding of textual features (e.g., sound-letter correspondence, sentence structure, context, graphics).


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• Conduct research on issues and interests by generating ideas and questions, and by posing

problems. They gather, evaluate, synthesize data from a variety of sources (e.g., print and nonprint texts, artifacts, people) to communicate their discoveries in ways that suit their purpose and audience.



NCEE Voluntary Standards in Economics Students will know that • (Marginal cost/marginal benefit) Effective decision making requires comparing the


• (Allocation of Goods and Services) Different methods can be used to allocate goods and services. People acting individually or collectively through government must choose which methods to use to allocate different kinds of goods and services.

• (Role of Incentives) People respond predictably to positive and negative incentives. • (Role of Prices in Market System) Prices send signals and provide incentives to buyers and

sellers. When supply or demand changes, market prices adjust, affecting incentives. • (Role of Interest Rates) Interest rates, adjusted for inflation, rise and fall to balance the

amount saved with the amount borrowed, which affects the allocation of scarce resources between present and future uses.

Students will be able to use this knowledge to: • (Marginal cost/marginal benefit) Make effective decisions as consumers, producers, savers,

investors, and citizens. • (Allocation of Goods and Services) Evaluate different methods of allocating goods and

services, by comparing the benefits and costs of each method. • (Role of Incentives) Identify incentives that affect people’s behavior and explain how

incentives affect their own behavior. • (Role of Prices in Market System) Predict how prices change when the number of buyers or

sellers in a market changes, and explain how the incentives facing individual buyers and sellers are affected.

• (Role of Interest Rates) Explain situations in which they pay or receive interest, and explain how they would react to changes in interest rates if they were making or receiving interest payments.

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STUDENT OBJECTIVES Upon completion of this lesson, the students will be able to: 1. Interview representatives of financial institutions 2. Gather and compare information on savings accounts from different financial institutions. 3. Summarize the pros and cons of the savings and investment options 4. Outline an appropriate plan for money for two different scenarios—one with short-term

savings and another for long-term savings. PERSONAL FINANCE BACKGROUND CONCEPTS When choosing a place to put their money, people consider: 1) how safe their money will be, 2) how easy it is to access, 3) whether it will earn more money, 4) risk, and 5) the next best use of the money. Safety refers to safety of principal which measures the chance of loss of the money you saved or invested. Ease of access refers to liquidity which is how quickly and easily you can get the money you saved or invested. Earning more money refers to the return that is the income from savings or an investment (interest or dividends). There are several types of risk involved in saving and investing. Market price risk is the risk that the market price of stocks, bonds, or mutual funds might go lower than you paid for them. Inflation risk is the risk that the rate of return on savings or an investment will be less than the rate of inflation. Business failure risk is the risk that the business will fail and the investment will be worthless, or the business will be less profitable than expected. Interest rate risk is the risk that the value of your investment will decrease due to a rise in interest rates generally in the economy. The next best use of money is the opportunity cost of saving money. The cost of savings is not being able to use it for something else we want know, and the benefit is the availability of the savings and accumulated interest for a use in the future. Savings. People who have money they don’t want to keep in their wallet or at home often choose to put their money in a savings account at a bank or credit union. These financial institutions pay interest on money deposited. People who have enough money and are willing to promise the money will not be withdrawn for a given amount of time, may be able to get more interest by putting their savings in a Certificate of Deposit via these same institutions. Savers considering these options will want to be sure their accounts are protected by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund (NCUSIF). These federal insurance programs protect regular savings accounts and some CDs up to a maximum of $100,000 per person if a financial institution makes bad investment decisions and goes out of business. Bonds. Slightly higher risk investment options for money are bonds. People who buy bonds are making loans to a government or business for a set period of time. Most bonds pay semi-annual interest, and at the end of this time (maturity), the bondholders get their money back unless the bond issuer is having trouble paying its debts. Bonds issued by the U.S. Treasury, such as U.S. Treasury Bonds and U.S. EE or HH Savings Bonds, are considered less risky than bonds issued by state or local governments or corporations.

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Stocks. Stocks offer a means for people to participate as owners of a business and possibly share in its profits. Companies may distribute a portion of their profits to shareholders as dividends. If a company does well, the value of your stock should go up over time. Of course, there is also the chance that a business is not profitable or goes bankrupt. If this happens, the stockholders can lose the money they have invested. Mutual Funds. You can buy shares in a mutual fund, and the fund manager invests the pooled money of its shareholders in an investment portfolio according to the mutual fund’s objective. For example, if the fund objective is “growth and income”, the portfolio might own common stock of emerging companies and common and preferred stocks and bonds of large, well-known “blue-chip” companies. Once a year, shareholders may receive the dividends, interest, and capital gains earned by the portfolio on a per share basis. Mutual funds are not risk free. Their values rise and fall along with the securities in their portfolio. Collectibles. Collectibles include items such as antiques, stamps, coins, and sports cards collections, gems, precious metals, and Americana items. They are one of the highest risk investment options. If they are investing, collectors hope their collectibles will increase in value over time. Owners of collectibles earn no interest or dividends and make profit only if they sell the items for more than they paid for them. Of course, there is no guarantee the price of what is collected will in go up or that they will not have to sell at a loss. TIME REQUIRED Two 50-minute classes MATERIALS AND EQUIPMENT • One copy of the Reading: My Saving and Investing Choices reading assignment for each

student. • One copy of the Activity 1: Our Savings Account Choices for each student. • One copy of the Activity 2: How Risky Is It? for each student. • One copy of the Activity Sheet 3: Comparing our Savings and Investment Options for

each student. • Brochures and other advertisements from local banks and credit unions that provide

information on savings accounts.

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PROCEDURE Activity 1: Savings Choices 1. Begin the lesson by telling students they are going to be investigators—they will investigate

different places where they can put money they save. 2. Direct them to read My Saving and Investing Choices as an in introduction to the kinds of

options they will be exploring. 3. Tell students that they will first investigate savings account choices. Discuss:

a. Have you ever been inside a bank or credit union? (Answers will vary. Student may know they were in one of them but now which type of institution.)

b. Do any of you have a savings account at one of these places? (Answers will vary.)

c. Why do you have a savings account? (Answers will vary. Look for a safe place to hold money; money available to withdraw at any time; earn interest; less likely to spend it.)

d. Did someone help you set up your savings account? (Answers will vary and may include a teller or bank or credit union customer service representative)

4. Distribute Activity1: Our Savings Account Choices. Explain that when we choose a place to eat, we consider things such as how close the place is to where we are, whether we like the food served, whether the place is clean and the price of the food. When we choose a savings place, we also must consider many things. Discuss each of the considerations listed on the Activity Sheet table.

5. Divide students into small groups. 6. Provide each group several brochures promoting regular savings accounts and certificates of

deposit at local financial institutions. Direct students to use these print materials to answer the questions on Activity Sheet 1: Our Savings Account Choices. If your students have Internet access, consider letting them conduct their research of local banks online. On the back of the sheet, they should choose the savings option that they think is the best for their money and write a paragraph justifying their choice.

7. When students have completed the Activity Sheet 1: Our Savings Account Choices, compare their findings as a class on a summary chart on the board. Vote to determine what the class views as the best savings account and certificate of deposit. Ask small student groups to develop a pie chart and a bar graph on the board to represent the class vote.

Activity 2: Interviewing Saving Institution Representatives 1. Inform students that the class is going to have two visitors. One person works at a bank and

the other is employed by a credit union. Students will be able to interview these people as part of their investigation into saving and investing options. If students are not familiar with the interview process, explain it to them.

2. Direct the students to work in small groups identifying questions they want to ask about savings accounts, services offered by financial institutions and working in a financial institution. Combine the students’ questions and distribute the complete list to the class. Sample questions include: • What kinds of savings accounts are offered?

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• What is the difference between a bank and a credit union? • Are your accounts insured? What does this mean? • What is your job? • How did you get your job? • What kinds of skills do you need to do your work? • What other services do you have besides savings accounts? • Do you have special services for kids? • Who can save money at your bank or credit union? • How do you decide who can borrow money? • How do you decide how much interest you will pay savers?

3. When the first visitor comes to class, assign one-half of the class primary responsibility for conducting the interview. The other half of the class should be responsible for recording answers. Students reverse roles for the second visitor. Consider taping the interviews to use as preparation for future interviews or for future classes when one of the visitors might not be available.

Activity 3: Investment Choices 1. Distribute Activity Sheet 2: How Risky Is It? 2. Tell students they are now going to investigate the alternatives to a regular savings account.

Some of these choices are risky—this means there is a chance they could lose their money. On the other hand, they may be paid more money for taking more risk. Emphasize to students that the information they need to complete the worksheet is provided on the worksheet and the reading that they did previously.

3. Tell students they are going to put together a chart of information that will help them summarize what they have learned about the places they can use for saving and investing their money.

4. Students work in small groups to complete Activity Sheet 2: How Risky Is It? 5. Distribute Activity Sheet 3: Comparing our Savings and Investment Options. 6. Instruct the students to fill in the table using plus and minus signs to answer each question for

each choice. 7. Summarize student learning through discussion:

a. Which types of instruments have the highest safety of principal? (Savings instruments such as passbook or statement savings accounts and CDs and bonds)

b. Which types of instruments have the most risk and thus lowest safety of principal? (Stocks and stock [growth] mutual funds)

c. Which types of instruments usually have the highest and which the lowest rates of return or earnings? (Stocks and stock [growth] mutual funds have the chance of highest returns but also the chance of most loss. Savings instruments usually have much lower average rates of return [interest rate] but also has very little chance of loss of principal. This teaches the principle of costs and benefits or “There ain’t no such thing as a free lunch”.)

d. Where would you put money you want to use to buy an item in six months and money you are saving for college? (Short term savings in savings account. Long term savings in CD, stock, or stock mutual funds)

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e. What is the opportunity cost of putting your money in a savings account? (Your second best choice for use of that money now)



Improvement

Knowledge





Preparation





Level of Engagement










Delivery





Listening Skills





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2. Worksheets and reports using criteria on the following rubric as appropriate.


Knowledge





Requirements










Grammar & Spelling








Some errors in capitalization and punctuation. The majority is minor.


Legibility







Accuracy





Design





Labeling





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Collaboration





Problem-solving





Focus on the Task









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Reading: Saving and Investing Choices

People need a place to keep their money safe. Some people keep their savings in a piggy bank, a sock or cookie jar. The advantage of keeping small amounts of money at home is that the money is easily available when it is needed. There are also disadvantages to keeping money at home. The money could be lost or stolen, it is tempting to spend it, and it isn’t earning interest.

For these reasons, many people keep their savings in a financial institution such as a bank or credit union. These institutions provide financial services such as savings accounts, checking accounts and loans. When you put money into a savings account, you are a depositor making a deposit. The money is always available for you to take out when you want it—the money you take out is called a withdrawal.

Banks and credit unions are businesses. They earn money by lending people’s savings to other people and businesses. The people who borrow money must pay the money back at some time in the future. They also agree to pay the financial institution interest for the privilege of using the money. In turn, the bank or credit union gives its depositors some of the interest for the privilege of using the savers’ money. Another important thing to know about savings accounts is that they are protected by the federal government for up to $100,000 if the financial institution makes some bad lending decisions and goes out of business.

Another low-risk place to put savings is a Certificate of Deposit or CD. Also purchased at banks and credit unions, CDs frequently pay more interest than regular savings accounts because the money must be kept in the account for a specific amount of time—usually six months or longer. A person who takes money out before the agreed date pays a penalty. Some CDs can be purchased for $500 but most are for $1,000 and higher. CDs are usually—but not always—insured by the federal government so this is an important question to ask before you buy one.

There are other choices for our money called investments that are more risky. Risk means there is a chance you won’t get your money back. People who buy bonds, called bondholders, are making a loan to the government or business for a set period of time. At the end of this time, the bondholders get their money back plus interest unless the bond issuer is having trouble paying its debts. The federal government issues U.S. Savings Bonds for amounts as small as $25. The chance that the United States would not pay back loans is very, very small so U.S. Savings Bonds are considered less risky than bonds issued by most other organizations.

Some people invest money by buying stocks. Businesses offer stocks as a way to raise money to operate and grow. People who buy stock become owners of a corporation and are called stockholders. If a business does well, the stockholders may be given some of the profit as dividends. The price of the stock may also go up so the money the stockholder gets for selling a stock would be more than they paid for it. Of course, there is also the chance that a business will not be successful. If this happens, the stockholder could lose the money they have invested.

When people invest in the stocks and bonds of organizations, they must be willing to carefully research the business to be sure it is making money and will be able to pay its debts. The value of stocks and bonds go up and down over time as businesses and people’s spending change. People who can afford to lose the money they are investing and who make wise stock and bond picks have the opportunity to earn more money that they would have earned with a regular savings account or certificate of deposit.

Do you know anyone who collects stamps, trading cards, old coins, Beanie Babies or Barbie dolls? These are examples of another kind of investment—collectibles. People who collect these kinds of items as a hobby or for an investment are named collectors. If they are investing, collectors hope their collectibles will increase in value over time. Of course there is no guarantee the price of what is collected will go up. It can be difficult to predict what people will be willing to spend their money on in the future.

Another type of investment is mutual funds. Investors buy shares in a mutual fund and then the fund managers invest this money in a portfolio of stocks, bonds, and/or CDs. The investor owns mutual fund shares, and the mutual fund owns the portfolio. The portfolio dividends and interest are passed through to the investors once a year.

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NAME______________________________

Activity Sheet 1: Our Savings Account Choices

Research savings accounts at three different financial institutions. Write the name of each institution on the line below. Summarize information about the accounts in the table. 1. Bank Savings Account _______________________________________________________

2. Credit Union Savings Account _________________________________________________ 3. Certificate of Deposit ___________________________________________________ Savings

Account (Bank)

Savings Account

(Credit Union)

Certificate of Deposit

How much money do you need to start a savings account?

Do you need an adult to cosign your account because you are a minor?

What is the interest rate on the account? (Annual Percentage Rate or APR?)

How often is interest added to the account?

What is the service fee for the account? (if any)

How close is the institution to school or your home?

On the other side of this sheet, write two or three paragraphs telling what instrument you would choose and why.

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NAME______________________________

Activity Sheet 2: How Risky Is It?

Teacher Master LEAST RISK MOST RISK Savings Accounts Corporate Stocks Collectibles Certificates of Deposit Municipal Bonds Corporate Bonds U.S. Treasury & Savings Bonds

Mutual Funds There are many choices for helping make your money grow. Some are riskier than others. Risk means the amount of chance you take. If you make a risky choice, there is more chance you could lose your money. However, there is also a chance you will be rewarded with more money for being willing to take the risk. Use what you have read and the graphic above to answer the following questions. If a statement if false, rewrite is so it is correct.

True False 1. U.S. Savings Bonds are very low risk. X 2. Collecting trading cards is a quick and easy way to get rich. X

It takes a long time for trading cards to increase in value, if they ever do.

3. It is more risky to put money in stocks than savings accounts. X

4. A savings account at a credit union is a very risky place X to put money. A savings account in a credit union is very safe because it is insured for up to $100,000 by the federal government.

5. There is a small penalty for withdrawing money from a X Certificate of Deposit too early.

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NAME______________________________

Activity Sheet 2: How Risky Is It?

LEAST RISK MOST RISK Savings Accounts Corporate Stocks Collectibles Certificates of Deposit Municipal Bonds Corporate Bonds U.S. Treasury & Savings Bonds

Mutual Funds There are many choices for helping make your money grow. Some are riskier than others. Risk means the amount of chance you take. If you make a risky choice, there is more chance you could lose your money. However, there is also a chance you will be rewarded with more money for being willing to take the risk. Use what you have read and the graphic above to answer the following questions. If a statement if false, rewrite is so it is correct. True False 1. U.S. Savings Bonds are very low risk. _______ _______ 2. Collecting trading cards is a quick and easy way to get rich. _______ _______

3. It is more risky to put money in stocks than savings accounts. _______ _______

4. A savings account at a credit union is a very risky place _______ _______ to put money.

5. There is a small penalty for withdrawing money from a _______ _______ Certificate of Deposit too early.

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Activity Sheet 3: Comparing our Savings and Investment Options

Teacher’s Master

Will it be

easy to get? Will it help

me not spend it?

Will it be safe from

being stolen?

Can I count on earning

money?

Can I be sure I

won’t lose any of it?

Glass Jar at Home + - - - -

An Adult Keeps it for You + + - - -

Regular Savings Accounts + + + + +

Certificate of Deposit - + + + +

U.S. Savings Bond - + + + +

Corporate Bond - + + - -

Corporate Stock - + + - -

Baseball Cards -

2. Where would you put $500 you were given as a gift and want to save to buy a car when you are older?

Mutual Funds + + + - -

+ - - -

1. Where would you put $100 you are saving to buy a bicycle? tells your choice and your reasons for making it. On the back of this sheet, answer these two questions. For each question, write a paragraph that

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NAME_________________________

Activity Sheet 3: Comparing our Savings and Investment Options

Will it be

easy to get? Will it help

me not spend it?

Will it be safe from

being stolen?

Can I count on earning

money?

Can I be sure I

won’t lose any of it?

Glass Jar at Home

An Adult Keeps it for You

Regular Savings Accounts

Certificate of Deposit

U.S. Savings Bond

Corporate Bond

Corporate Stock

Baseball Cards

One the back of this sheet, answer these two questions. For each question, write a paragraph that tells your choice and your reasons for making it. 6. Where would you put $100 you are saving to buy a bicycle? 7. Where would you put $500 you were given as a gift and want to save to buy a car when you

are older?

Appendix A

Grades K-5: Glossary of Terms Advertising Paid messages that give information and use persuasion to

encourage purchase or promote a point of view. Billboards, news-papers, magazines, radio and television all offer forms of advertising. There are three basic forms of advertising appeals:

Bank Financial business that offers checking and savings accounts, loans, and other financial services to individuals, businesses, and governments; owned by the stockholders.

Benefit Something that is positive or good. A benefit of playing in

the park is spending time with friends. Bond Investment in which investor is loaning money to the

issuing corporation or government for a period of time. Called a debt instrument because the corporation or government is borrowing money from the bond purchaser. Most pay semi-annual interest and the principal at maturity.

Capital gains and losses can also occur.

Borrow To use a good or service owned by someone else that is

expected to be returned. Business A commercial activity which tries to make a profit. Business plan A written plan of how to develop, grow, and profit with a

business. Capital resources Human-made goods, tools, machines and buildings used to

produce other goods and services. Cash Bills and coins; currency; money used in a given place. The

peso, yen, and dollar are currency in different countries. Certificate of deposit Type of savings account that is issued by a bank or credit

union that requires a minimum deposit and has a specific maturity (length of time requirement)

Check Written order asking a bank or credit union to pay money from a

person’s checking account Choice Decision made between two or more alternatives

Appendix A

Collectibles Items people collect, such as stamps, coins, or cultural items, that they think will increase in value over time.

Comparison shopping Carefully analyzing the similarities and differences among

similar products in order to make a choice. Competition Struggle among sellers to attract consumers; often leads to

lower prices. Compounding Practice of leaving interest earned in the account so it too

earns interest. “Money that makes money, makes more money.” Poor Richard’s Almanac

Consumer Person who buys and/or uses (consumers) goods and

services to satisfy economic wants. Cost What must be given up to obtain a benefit. Coupon Piece of paper offering a reduced price. Coupons are

frequently used to attract new buyers and to convince people to switch brands.

Credit Right given by a creditor to pay in the future for buying or

borrowing now. Trust that something owed will be repaid. Credit card A plastic card that lets a person buy now and pay later.

Provided by department stores, oil companies, banks and credit unions. “Buy now and pay later.”

Credit union Non-profit organization owned by the members who have

some characteristics in common, such as employer or geographic area. Accepts deposits (savings and checking accounts), makes loans, and provides other financial services.

Debit card A plastic card that gives the bank or credit union

permission to make a payment from the owner’s checking account electronically and immediately.

Decision Making Choosing one alternative from among two or more

alternatives. Deposit Adding money to an account. Discount Reduced price. Discounts are used to quickly reduce supplies on-

hand, attract new buyers and reward past buyers.

Appendix A

Dividend Payment to stockholders, usually quarterly, that represents their part of the company’s profits

Earn To receive a wage/salary through work; to earn a living. Earnings Wages or salary received for working (providing human

capital). Emotional appeal Trying to get a person to purchase a good or service by

emphasizing an emotional aspect, such as fear, greed, status, vanity.

Entrepreneur An innovator who takes a risk to create a business in order

to earn a profit; one of four factors of production. Expense Payment for goods and services (i.e., spending). Financial plan A plan for how to use resources to meet needs and wants. Financial report Report by a corporation, organization, or individual about

how resources were used to meet needs and wants. Future value How much a specific dollar amount today will be worth at

a time in the future if it earns a specific interest rate over the given period.

Goal Something a person tries to complete soon (less than a year;

short-term) or in a longer time (more than a year; long-term); aim or objective. Short-term goals like learning to read and getting good grades help achieve long- term goals like going to college and getting a job.

Goods Material objects that people use to satisfy their wants. Human capital/resources Quality of the combination of education, skills, and talents

a worker gathers over time and that enhance a worker’s value to an employer.

Human skills Abilities, and knowledge that a person uses to do work;

human capital. Human resources Valuable skills, talents, knowledge, health, and education

that a person possesses. Quality can be improved through investments in education, training and health care. Also call human capital..

Appendix A

Impulse buying Unplanned, quick spending of money with little or no consideration of alternative choices or needs for the money.

. Candy bars are placed near checkout counters to encourage impulse buying.

Income Payment people receive for providing their resources in the economy.

Interest Money people receive for allowing the bank or credit union

or someone else to use their money; price paid for using someone else’s money.

Interest rate Price paid for using someone else’s money, expressed as a

percentage

Investment Stock, bond, property or other financial instrument bought

for income or profit. Jingle A short verse or song with catchy repetition. Often used in

advertising Job Work for another person or organization for a wage or

salary. Limited resources Things used to fulfill needs and wants are restricted; don’t

have enough to fulfill all our wants. Liquidity Can be easily changed into cash or other financial asset. Loss Amount by which the cost of a good or service exceeds the

selling price. Selling an investment for less than originally paid for it.

Market A system for exchange that happens when there are buyers

and sellers exchanging goods and services.

Marketplace Any place where people buy and sell goods and services. A physical market is a shopping mall. The Internet offers a different kind of market.

Maturity Life of a bond or the length of time funds are borrowed.

Appendix A

Money Anything that is generally accepted as a medium of exchange to buy goods and services; serves as a standard of value; and has a store of value. Gold, silver, shells, tobacco, beads, and paper have all been used as money.

Money management A system for income and spending that allows for the

achievement of financial and consumer goals. Money order Form of cash bought for a specific amount and signed over

by the purchaser to the person or firm named on the money order.

Mutual fund Company that sells stock in itself and uses this money to

buy stocks and bonds issued by other companies or governments.

Needs Basic requirements of daily living. Opportunity cost Best alternative given up when a choice is made. Price Amount a buyer pays and a seller receives for a good or

service in the marketplace.

Producer Someone who uses resources to make goods and/or services

Profit Income minus expenses, usually stated in dollars. Extent to

which people or organizations are better off at the end of a period than at the beginning of that period.

Quality Desired characteristics of a good or service. Safety features,

construction details, and seller guarantees are samples of quality factors.

Rebate Refund of part of the original price of a good or service. Resources Things used to fulfill needs and wants. Return Earnings on an investment in the form of interest,

dividends, or capital gains. Revenue Business’ receipts from the sale or rental of goods or

services; money from other sources such as dividends and interest

Risk Chance that money or other property will be lost; situation

where outcome is unknown.

Appendix A

Safety of principal The dollar amount saved or invested is not at risk of being lost. Savings accounts and certificates of deposit.

Salary Fixed pay for work; calculated on monthly, annual, or job

basis; amount not dependent on amount of time worked. Sale Transfer of ownership of a good or service from one person

to another for a price. Salesperson Person employed to sell goods or services. Sales receipt A piece of paper that spells out specific aspects of a sale,

such as item, quantity, price, sales tax, and total price. Save To put money aside from current income to buy something

in the future Savings Income not spent on goods and services right now so it can

be used later. Savings account Bank or credit union account in which the money deposited

earns interest so there will have more money in the future than they deposited.

Scarcity Condition that exists when people’s wants and needs are

more than the resources available to satisfy them. Selling To offer for sale goods or services for a price. Services Activities that people do for others to satisfy economic

wants. Skills Talents people have and use at their job and in daily life.

Employers will pay a higher wage/salary to a person with greater skills.

Slogan Words that sound good but don’t say anything.

Spending The act of exchanging money for goods or services. Stock Investment in which the purchaser buys a share of

ownership in a corporation; equity instrument. Successful companies reward investors with dividends and/or capital gains.

Supply Schedule of how much sellers are willing and able to sell at

different prices in a given period of time.

Appendix A

Testimonial Statement on the benefits of a product with little useful product

information, frequently made by an "expert" or celebrity.

Trade-off Giving up some of one thing to get some of another thing. Unit price Cost for a small unit of measure, such as an ounce or

pound, used to compare the costs of a product in different-sized packages.

Value Something that has a worth that can be expressed in dollars

and cents; price someone would pay for the item or service. Wages Hourly payment people receive for the work they do as

human resources. Withdrawal Subtracting money from an account. Want Desire that can be satisfied by consuming a good or service. Work Activity carried out to complete a job and possibly to earn a

wage or salary.

Appendix B

Infusing Personal Finance into Language Arts and Math Classrooms

Children’s Trade Books

with a Personal Finance Connection

Compiled by the National Institute for Consumer Education – 2002

Early Elementary A Chair for My Mother Williams, Vera B. (1982). Mulberry Books, ISBN: 0-688-04074-8 After a fire destroys their home and possessions, friends and family help Rosa, her mother and grandmother reestablish a home. Coins earned and saved through smart shopping are put in a jar so they can buy a special chair. A Day’s Work Bunting, Eve. (1994). Houghton Mifflin, ISBN: 0-395-84518-1 A touching immigration story about the reversal of roles between child and adult as they interpret the new world. A Dollar for Penny Glass, Julie. (2001). Random House, ISBN: 0-613-07631-1 Penny sells lemonade at her lemonade stand for one penny. As she sells each cup, the price goes up. Eventually, she earns a dollar to buy a birthday card for her mother. Alexander, Who Used to be Rich Last Sunday Viorst, Judith. (1978). MacMillan Publishing Co., IBSN: 0-689-71199-9 Alexander spends a dollar and faces the consequences of not making a careful choice. He also experiences difficulty trying to save a portion of the dollar. Annie's Pet Brenner, Barbara. (1989). Bantan Books, ISBN: 0-000-5NAW On her way to the pet shop to buy an animal with her birthday money, Annie buys a toy, a collar, a dish and a leash, then discovers she has no money left for a pet. A Piano for Julie Schick, Eleanor. (1984). Greenwillow Books, ISBN: 0-688-01819-X Julie’s family sets a goal to buy a piano like Julie’s father’s family had when he was a boy. After a long time they have enough money, and they buy a used piano through the newspaper classified, and Father starts to teach Julie how to play.

Appendix B

Arthur's Funny Money Hoban, Lillian. (1981). Harper & Row, ISBN: 0-060-22344-8 Violet has a numbers problem and Arthur needs money to buy a T-shirt. They consider the positive and negative aspects of different money-making options and decide to set up a bike-washing business. To expand his business, Arthur advertises and washes extra items for a higher price. Arthur’s Pet Business Brown, Marc. (1990). Little, Brown & Co. ISBN: 0-316-11316-6 Arthur starts a pet care business to prove he can handle the responsibility of a puppy. He advertises his business and business is good. Arthur earns an income and gets his pet when one of his "clients" gives birth to puppies under his bed. Arthur’s TV Trouble Brown, Marc. (1995). Scholastic, Inc., ISBN: 0-590-97314-2 Arthur sees a Treat Timer advertised on TV and wants to buy it for his dog, Pal. Arthur counts his money and asks his sister, mother, and father for the rest. They can’t give him money so he gets a job helping Mr. Sipple clean out his garage and wrap and tie newspapers. The Treat Timer didn’t work right and all sales were final. Even then Arthur was tempted by TV ads. Better Than a Lemonade Stand! Small Business Ideas for Kids Bernstein, Daryl. (1992). Beyond Words Publishing, Inc., ISBN: 0-941-83175-2 Fifty-one ways to make money and have fun while you're at it. Bunny Money Wells, Rosemary. (1997). Dial Books, ISBN: 0-803-72146-3 Max and Ruby go shopping and face many choices. One of their choices gets them into trouble causing them to lose some of their savings. Busy Workers Scarry, Richard. (1987). Golden Books Publishing Company, Inc., ISBN: 0-307-11872-X Through words and illustrations, this book introduces students to many kinds of busy workers in their community. Career Day. Rockwell, Anne. (2000). Harper Collins, ISBN: 0-060-27565-0 On Career Day the children in Mrs. Madoff's class take turns introducing special visitors. Every visitor has something interesting to share, and together the class learns about the work different people do. Chicken Sunday Polacco, Patricia. (1992). Philomel Books, ISBN: 0-698-11615-1 Two brothers and their Polish-American friend want to purchase a special gift for the brothers’ grandmother. Mr. Kodinski suggests they make Psyanky eggs and sell them in his store.

Appendix B

Count Your Money With The Polk Street School Giff, Patricia Reilly. (1994). Yearling Books, ASIN: 0-440-40929-2 Ms. Rooney's class is learning all about money and saving to take a trip, while two best friends learn to get along in this story. The board game that comes with this book can help students explore where to save money. Will it be a piggy bank or perhaps a real bank? Curious George Takes a Job Rey, H.A. (1975). Houghton Mifflin, ISBN:0-395-18649-8 Curious George escapes the zoo and goes into town. He gets jobs as a dishwasher and window washer,, but his curiosity gets him into trouble. He also learns about several other types of jobs. Four Dollars and Fifty Cents Kimmel, Eric A. (1989). Holiday House, ASIN: 0-373-05613-3 Shorty won't pay Widow Macrae what he owes her. When he plays dead to avoid payment, he is nearly buried alive. Discover ways that creditors can obtain payment from reluctant debtors. Going to Town Adapted from Laura Ingalls Wilder Little House Books. (1995). HarperCollins Publishers, Inc., ISBN: 0-06-023012-6 Laura goes with her Pa, Ma, and sisters Mary and Carrie, to town for the very first time. The girls have never seen a town before. They shop in the general store and have a picnic beside the lake. How Much Is a Million? Schwartz, David M. (1985). Lothrop, Lee & Shepard Books, ISBN: 0-688-04049-7 Explains with extensive illustrations different ways of describing a million of something. How Much Is That Doggie in the Window?Merrill, Bob. (1997). Whispering Coyote Press, ISBN: 1-879-08574-7 A boy really wants a special dog in the pet store window, but he does not have enough money. He attempts to earn the money needed, but spends his own money on his family members instead. Luckily, his family surprises him with the dog as a gift. How Much Is that Guinea Pig in the Window? Rocklin, Joanne. (1995). Scholastic, ISBN: 0-590-22716-5 Mr. Day's class has been saving money for a class pet. They visit a pet store and consider their options deciding on a guinea pig. When they realize they don't have enough money to purchase food for their pet, they recycle cans to make up the difference. How the Second Grade Got $8,205.50 to Visit the Statue of Liberty Zimelman, Nathan. (1992). Albert Whitman & Co., ISBN: 0-8075-3431-5 A chronicle of the funny fund-raising schemes of an industrious group of second graders who learn about business expenses and profits as they try to raise money for the class trip.

Appendix B

If You Made a Million Schwartz, David M. (1989). Lothrop, Lee & Shepard Books, ISBN: 0-688-13634-6 An illustrated simple introduction to coins, paper currency and checks. Illustrates how money can be earned, spent, used to pay off loans and build interest in the bank. Demonstrates the concept of a million dollars. On Market Street Lobel, Arnold. (1981). Mulberry Books, ISBN: 0-688-08745-0 Beautiful illustrations of a type of good for each letter of the alphabet sold by the merchants on Market Street. Pigs Will be Pigs Axelrod, Amy. (1994). Aladdin Paperbacks, ISBN: 0-613-03566-6 The Pigs are very hungry but there is no food in the house. The family goes on a money hunt so they can buy dinner at their favorite restaurant, The Enchanted Enchilada. Readers can help the Pig family order items from the menu that they can afford. Round and Round the Money Goes Berger, Melvin and Gilda Berger. (1993). Ideals Children’s Books, ISBN: 0-824-98598-2 The origins of money from a barter system to its present usage as cash and checks. The movement of money is followed from earning to saving to spending. Terms such as borrow and interest are defined. There is also an explanation how bills and coins are made. Sam and the Lucky Money Chinn, Karen Chinn. (1997). Lee and Low Books Inc., ISBN: 1-880-00053-9 Sam's grandparents gave him lucky money to celebrate the New Year as he pleased. After shopping in several Chinatown stores for the perfect items, he is disappointed to find that everything he wants is too expensive. He ends up giving his four dollars to a homeless man in need of warm socks for the winter. Something for Sara Ziegler, Sandra. (1977). Child’s Press, ISBN: 0-516-05944-0 Sara learns how to make change and to manage her money as she visits a laundromat and store. Her mother helps her to understand saving, spending and sharing. Some Spanish terms are used in the text. Something Special for Me Williams, Vera B. (1983). Greenwillow Books, ISBN: 0-688-06526-0 Little Rosa has difficulty choosing a birthday present for herself. Knowing that her family has saved the money for a long time makes it difficult to choose a gift -- she finally decides on a gift she can share with her family. Also available in Spanish. The Berenstain Bears' Mad, Mad, Mad Toy Craze Bernstain, Stan and Jan. (1999) Random House, ISBN: 0-679-88958-2 The Berenstain Bears begin a collection of Beary Bubbies. At first, they collect them for fun, but later they begin to think that collecting Beary Bubbies will bring them money in the future.

Appendix B

The Berenstain Bears' Trouble with Money Berenstain, Stan and Jan. (1983). Random House, ISBN: 0-394-95917-5 The cubs spend money, never buy anything sensible, and never save. Papa decides they should work for their spending money. He insists they learn how to balance saving and spending. The Berenstain Bears: Get the Gimmes Berenstain, Stan and Jan. (1988). Random House, ISBN: 0-394-80566-6 Brother and Sister Bear make a fuss when shopping at the supermarket. They learn that they can’t have everything they want. Gramps suggests a plan for the cubs. They must decide on one. The Big Buck Adventure Gill, Shelley and Deborah Tobola. (2000) Charlesbridge Publishing, ISBN: 0-881-06294-4 A little girl learns that there are many ways to spend her dollar. For example, she could buy a hundred jawbreakers, twelve gummy bears, six night crawlers, twenty dill pickles, or three neon guppies. The Big Green Pocketbook Ransom, Candice. (1993). Harper Collins Publishers, ISBN: 0-06-443395-1 A young girl and her mother make a bus trip to town. They visit shops and businesses including a stop for ice cream at the soda shop. Along the way, the little girl puts treasures into her big green pocketbook. The Go Around Dollar Adams, Barbara Johnston. (1993). Four Winds Press, ISBN: 0-027-00031-1 The story of a dollar bill as it travels from person to person. Includes interesting facts about money including where and how money is made. The Lemonade Stand Vaughan, Marcia. (1999). Penguin Putnam Books, ISBN: 0-448-41977-7 Boomer the bear and Squeak the mouse set up a lemonade stand and dream of what they will buy with their profits. To boost sales, the partners decide to make a sign and advertise. A useful book for introducing risk associated with operating a business. The Penny Pot Murphy, Stuart Murphy. (1998) Harper Collins, ISBN: 0-064-46717-1 Various students count their coins to pay fifty cents for face painting at the school fair. Extra pennies are put in the penny pot for other students to use if needed. The Purse Caple, Kathy. (1986). Houghton Mifflin, ISBN: 0-395-62981-0 After spending her money on a purse, Katie is now faced with the problem of getting some money to put it in it.

Appendix B

The Story of Money Maestro, Betsy. (1995). Clarion Books, ISBN: 0-688-13304-5 Intriguing facts abut money in different times and places. Tells about the many forms of money people use, from barter to doubloons to greenbacks to credit cards. Yard Sale Stevenson, James. (1996). Greenwillow Books, ISBN: 0-688-14126-9 Animals hold a community yard sale to get rid of the goods they no longer want. The advertising at the yard sale can be compared to promotional efforts in the real lives of students. Yard Sale Modarressi, Mitra. (2000). DK Publishing, ISBN: 0-789-42651-X People buy items with “magical” attributes at a garage sale that turn out to not work. The yard sale sponsor has disappeared, and the victims learn to live with their “magical” purchases.

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