Money Matters: Making Cents of It All

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  • Lesson Identification and TEKS Addressed

    Cluster : Human Services

    Course : Dollars and Sense

  • TEKS Student Expectations

    • (1) The student demonstrates management of individual and family resources such as finances, food, clothing, shelter, health care, recreation, transportation, time and human capital. The student is expected to:
      • (A) analyze the economic rights and responsibilities of individuals as consumers
      • (B) apply management, planning skills and processes to organize tasks and responsibilities
      • (C) develop and apply multiple strategies for individuals and families to make choices to satisfy needs and wants
  • Basic Direct Teach Lesson

    Instructional Objectives

    Students will:

    • investigate the differences between major and minor financial decisions
    • understand how money management skills are important in everyday life
    • compare sources and costs of credit
  • Rationale

    Script:

    Is having credit a good thing or bad thing? A decision you make regarding credit will determine whether you have money at the end of the week, month and year. Have you ever thought about what you spend your money on or the legal consequences of using credit? Your spending choices can affect you more than you expect. Not only do you have financial responsibilities, but you also have certain rights. Learning the basics of personal financial management can help people get with they need but like Mick Jagger sings, “You can’t always get what you want”. Financial decision-making involves trade-offs.

  • Duration of Lesson

    Four to five 45 minute class periods

  • Word Wall

    Budget: An estimate, often itemized, of expected income and expense for a period of time in the future

    Closed-end credit: Encompasses one-time loans for a specific time period

    Credit: The supplying of goods, services or money in exchange for the promise of future payment

    Compliance: Acting according to certain accepted standards; “their financial statements are in compliance with generally accepted accounting practices”

    Consequence: The effect, result or outcome of something occurring earlier

    Consumer: A person who uses goods and services, usually in exchange for money

    Consumer credit: Credit extended to consumers for personal needs, not business needs

    Decision: The act or process of deciding; determination, as of a question or doubt, by making a judgment

    Decision-making process: The process of selecting from several choices and taking action

    Desire: To wish or long for; to want

    Economic: Pertaining to the production, distribution and use of income, wealth and commodities

    Financial planning: A tool that allows us to define our financial goals by assessing our current financial situations and then planning what we need to do to achieve those goals

    Habit: An acquired behavior pattern regularly followed until it has become almost involuntary

    Human capital: Skills, knowledge and experience possessed by an individual or population viewed in terms of their value or cost to an organization or country

    Open-end credit: Refers to loans available on an ongoing basis within set credit limits

    Procrastination: To put off doing something, especially out of constant carelessness or laziness

    Security: Something deposited or given as assurance of the fulfillment of an obligation; a pledge

    Spontaneity: Unplanned behavior, impulse or movement; spur of the moment

    The Truth in Lending Act (TILA): Protects you against inaccurate and unfair credit billing and credit card practices; it requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans

    Note: Many other terms on the slide presentation can be identified. Encourage students to include the definitions in the assignment.

  • Materials/Specialized Equipment Needed

    Equipment:

    • computer with projector for PowerPoint™ presentation
    • computers with Internet access (Be sure to follow district guidelines for Internet access.)
    • light projector (Elmo)
    • presenter/remote

    Materials:

    • cardstock
    • colored pencils
    • construction paper
    • magazines for cutting out pictures
    • markers
    • scissors

    Supplies:

    • access to a recording of Rolling Stones “You Can’t Always Get What You Want” (chorus only, 30 seconds of playtime allowed) – optional
    • credit card applications (voided)
    • faux credit cards
    • play money (different amounts)
    • samples of credit contracts

    • copies of handouts (see All Lesson Attachments tab)
  • Anticipatory Set

    Prior to class:

    Note to Teacher: More information on finances and consumers can be found in these courses:

    Personal Money Management (Dollars and Sense) for additional resources and activities.
    http://cte.sfasu.edu/lesson-plans/personal-money-management

    The Impact of Technology on the Family Life Cycle (Interpersonal Studies) for additional resources and activities.
    http://cte.sfasu.edu/lesson-plans/the-impact-of-technology-on-the-family-life-cycle

    How the Media Influences Consumers (Dollars and Sense) for additional resources and activities.
    http://cte.sfasu.edu/lesson-plans/how-the-media-influences-consumers

    Laws, Regulations and Taxes That Impact Consumers (Dollars and Sense) for additional activities, ideas and resources.
    http://cte.sfasu.edu/lesson-plans/laws-regulations-and-taxes-that-impact-consumers

    Print the door passes from the SIRDC Door Hanger Pass Template (see All Lesson Attachments tab) on cardstock and cut them apart. The students will be using the door passes as a Lesson Closure activity.

    Display as many of the lesson-related supplies (see Materials or Specialized Equipment Needed) that you have available on a table in front of the room.

    Become familiar with the PowerPoint™, handouts and activities.

    Before class begins:

    Ask a student volunteer to read the article Control Credit! (see All Lesson Attachments tab). Have students draw T-charts on their notebook paper, and ask them to list advantages they can see for using credit on the left side. Ask them to list disadvantages on the right side. Allow them time to complete their T-charts, then facilitate a discussion. Point out whether credit is “good” or “bad” depending upon how effectively it is used. Have students develop guidelines for effective use of credit. Lead groups to share the guidelines.

    Distribute the graphic organizer KWHL Chart – Money Matters: Making Cents of It All (see All Lesson Attachments tab). Ask students to complete the chart by answering the first three sections:

    K – What I know about the factors affecting credit and consumers
    W – What I want to learn about the factors affecting credit and consumers
    H – How can I learn more about the factors affecting credit and consumers?

    The last section will be completed in the Lesson Closure.

    Lead students to share and discuss their responses.

  • Direct Instruction with Special Education Modifications/Accommodations

    Note to teacher: Prior to beginning this lesson, please review, preview and select the appropriate multimedia for your classes.

    Introduce lesson objectives, terms and definitions.

    Distribute the handout Slide Presentation Notes (see All Lesson Attachments tab). Students will be expected to take notes while viewing the slide presentation. Teacher will determine the notes to be recorded by students.

    Introduce the PowerPoint™ Money Matters: Making Cents of It All (see All Lesson Attachments tab).

    Have students read the Cost of Credit (see All Lesson Attachments tab) handout and then complete the Clarifying the Cost of Credit (see All Lesson Attachments tab) handout. Use the questions to guide a discussion regarding the cost of credit.

    Videos included in slide presentation:

    • Dealing with Debt Collectors
      If you’re behind on payments, you’ll probably be hearing from debt collectors. Federal law gives you certain rights in dealing with debt collectors. It’s important to understand those rights when communicating with them.
      http://bcove.me/t6s6l7lf
    • Minimum Payments on Credit Cards
      This video shows what happens when someone makes just the minimum payment on a credit card balance. 
      http://bcove.me/2h4a5k2s

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • providing students with a copy of the notes or a fill-in-the-blank note sheet to follow along with instructions
    • pairing up students with elbow partners who can assist them with verbal and written responses to the lesson

  • Guided Practice with Special Education Modifications/Accommodations

    Have students select one item to purchase and compare credit costs and considerations from three sources. For example, if a student selects a $2,500.00 computer system, possible credit sources could be a store that sells the computer, a secured loan from a credit union or an unsecured loan from a finance company. Distribute the Comparing Sources and Costs of Credit (see All Lesson Attachments tab) handout.

    Lead students to report and discuss their findings.

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • encouraging participation
    • praising students
    • providing the students with a copy of the slide presentations

  • Independent Practice/Laboratory Experience with Special Education Modifications/Accommodations

    Scenario: You are moving into an unfurnished apartment and are going to need to purchase new furniture, a washer and dryer.

    Distribute the Credit: Open and Closed (see All Lesson Attachments tab) handout. Divide the class into groups, and assign each group to research one of the five types of credit to present in greater depth to the class. Ask groups to locate and share examples of credit application forms and contracts for their assigned type (or provide students with examples you have previously collected.)

    The five types of credit include:

    • Installment cash credit
    • Installment sales credit
    • Regular charge accounts
    • Revolving charge accounts
    • Single-payment loan

    Ask each group to cover the following in their presentations:

    • a clear explanation of the type of credit
    • costs, terms and conditions associated with the type of credit
    • examples of purchases (to which students can relate) that might utilize the specific type of credit
    • sources where the credit might be obtained

    Distribute the Rubric for Credit: Open and Closed (see All Lesson Attachments tab) handout so that students may understand what is expected.

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • encouraging participation
    • reducing length of assignment
    • extending length of time for assignment
    • pairing students

  • Lesson Closure

    Review lesson objectives, terms and definitions.

    Students will complete the KWHL Chart – Money Matters: Making Cents of It All (see All Lesson Attachments tab) section labeled L.

    Students will complete the door pass activity SIRDC Door Hanger Pass Template (see All Lesson Attachment tab). This will be their pass as they exit the classroom.

  • Summative/End of Lesson Assessment with Special Education Modifications/Accommodations

    Team presentations will be assessed with the previously provided rubric and personal reflection assignment.

    Students will each write a one-page personal reflection on what they learned from this lesson and how they plan to use the information now and in the future.

    Individualized Education Plan (IEP) for all special education students must be followed. Examples of accommodations may include, but are not limited to:

    • allowing extra time for responses
    • prompting, if necessary

  • References/Resources

    Images:

    • Microsoft Clip Art: Used with permission from Microsoft™.
    • Photos obtained through a license with Shutterstock.com™.

    Textbooks:

    • Campbell, S. R. (2010). Foundations of personal finance. Tinley Park, IL: Goodheart-Willcox.
    • Madura, Jeff, K. Casey Michael, and Sherry Roberts J. (2010). Annotated teacher’s edition to personal financial literacy. Saddle River, NJ: Pearson Education.

    Websites:

    Videos:

    • Dealing with Debt Collectors
      If you’re behind on payments, you’ll probably be hearing from debt collectors. Federal law gives you certain rights in dealing with debt collectors. It’s important to understand those rights when communicating with them.
      http://bcove.me/t6s6l7lf
    • Minimum Payments on Credit Cards
      This video shows what happens when someone makes just the minimum payment on a credit card balance. 
      http://bcove.me/2h4a5k2s
  • Additional Required Components

    English Language Proficiency Standards (ELPS) Strategies

    • Ask students to repeat your instructions back to you to be sure they know what is expected of them before each new phase of the lesson.
    • Discuss vocabulary in detail, and make sure everyone has a firm grasp on it before moving forward with the lesson.
    • Use graphic organizers and visuals to explain the lesson in detail.
    • Utilize the Four Corners Vocabulary / Word Wall Activity:
      http://cte.sfasu.edu/wp-content/uploads/2012/02/Four-Corner-Vocabulary2.pdf
    • Have students say and write the vocabulary words in their primary languages.
  • College and Career Readiness Connection

    AchieveTexas Career Cluster Crosswalks

    The Career Cluster Crosswalks housed on the AchieveTexas website http://www.achievetexas.org/index.html provide Texas teachers with a direct connection between their CTE course TEKS and the College and Career Readiness Standards (CCRS). Language Arts, Mathematics, Science, Social Studies, and Cross-Disciplinary integration are the focus of the CCRS. These college and career readiness standards are essential in the planning and delivery of CTE lessons. The extent to which the integration occurs is determined by the methods and strategies utilized by each teacher.

    Career Cluster Crosswalks for Education and Training, Hospitality and Tourism, and Human Services Career Clusters can be found at:
    http://www.achievetexas.org/Career%20Cluster%20Crosswalks.htm

  • Recommended Strategies

    Reading Strategies

    Current Events:
    Assign students to read about the importance of understanding financial issues. Information can be found in newspaper articles, magazines, journals and online print.
    Suggestions:

    • What You Need to Know: New Credit Card Rules (see All Lesson Attachments tab)
    • Encourage students to connect reading to their life experiences or prior knowledge.
  • Quotes

    What I’m always trying to say to the consumer is: buy less, choose well, make it last.
    -Vivienne Westwood

    Every man is a consumer, and ought to be a producer. He is by constitution expensive, and needs to be rich.
    -Ralph Waldo Emerson

    Obviously we’re a consumer nation and you have the power to influence these big corporations who are running the world right now through what you chose to, or not to purchase.
    -Daryl Hannah

    Are these things really better than the things I already have? Or am I just trained to be dissatisfied with what I have now?
    -Chuck Palahniuk, Lullaby

    Never spend your money before you have earned it.
    -Thomas Jefferson

    Money has never made man happy, nor will it, there is nothing in its nature to produce happiness. The more of it one has the more one wants.
    -Benjamin Franklin

  • Multimedia/Visual Strategies

    PowerPoint™:

    • Money Matters: Making Cents of It All
    • Presentation Notes for Money Matters: Making Cents of It All

    Technology:

    • TED Talk:
      • One Life-Changing Class You Never Took: Alexa von Tobel at TEDxWallStreet
        Alexa von Tobel is the founder and CEO of LearnVest.com which she has been developing and growing since 2006. LearnVest is the leading personal finance and lifestyle website that brings financial literacy to women.
        http://youtu.be/8jkri0AeZWQ

    Videos:

    • Dealing with Debt Collectors
      If you’re behind on payments, you’ll probably be hearing from debt collectors. Federal law gives you certain rights in dealing with debt collectors. It’s important to understand those rights when communicating with them.
      http://bcove.me/t6s6l7lf
    • Minimum Payments on Credit Cards
      This video shows what happens when someone makes just the minimum payment on a credit card balance. 
      http://bcove.me/2h4a5k2s

    • Files for downloading:
  • Graphic Organizers/Handout

    Graphic Organizers:

    • KWHL Chart – Money Matters: Making Cents of It All
    • SIRDC Door Hanger Pass Template
    • Slide Presentation Notes

    Handouts:

    • Clarifying the Cost of Credit
    • Clarifying the Cost of Credit (Key)
    • Comparing Sources and Costs of Credit
    • Control Credit!
    • Cost of Credit
    • Credit: Open and Closed
    • Rubric for Credit: Open and Closed
    • What You Need to Know: New Credit Card Rules

    • Files for downloading:
  • Writing Strategies

    Journal Entries:

    • One of the best financial decisions I’ve ever made was _________________.
    • How does the decision making process effect you on a daily basis?
    • One of the worst financial decisions I’ve ever made was _____________________.
    • Why is it important to spend your money wisely?
    • What is a major decision you’ve had to make regarding money?

    Writing Strategy:

    RAFT Writing Strategy
    Role – Parent
    Audience – Children
    Format – Letter
    Topic – It is important to think about what you’re going to spend your money on before you buy something because ____________.

  • Communication 90 Second Speech Topics

    • A decision I have made with positive results was_________________.
    • If I could spend my money any way I wanted, I would ______________________.
    • Financial money management is important because _______________________.
  • Other Essential Lesson Components

    Enrichment activity

    • Have the students conduct an Internet search (use the search phrase “calculating interest charges”) to locate an online interest-rate calculator, or provide students with access to interest-calculating software. Instruct the students to experiment with varying the amount financed, APR and term/number of payments. Have them record and compare monthly payments and total interest charges. For additional emphasis, students can prepare a chart or graph depicting comparisons.
    • Students will create a game about economic decision-making strategies, for example buying a car, buying a house or going to college. The game can be based on the Game of Life.
    • Students will keep a list of all the economic decisions they make for the week. They are to make a chart for each day of the week and total their spending each day and a grand total for the week.
    • Students can develop a personal budget based on actual income/expenses for themselves.
    • TED Talk:
      TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks videos and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event.
      The video below is related to this lesson. Allow students to view the video and lead a discussion concerning the TED Talk.
      • One Life-Changing Class You Never Took: Alexa von Tobel at TEDxWallStreet
        Alexa von Tobel is the founder and CEO of LearnVest.com which she has been developing and growing since 2006. LearnVest is the leading personal finance and lifestyle website that brings financial literacy to women.
        http://youtu.be/8jkri0AeZWQ
  • Family/Community Connection

    • Family finances interview: Have students interview family members about their attitudes toward finances.
    • Arrange for a Certified Financial Planner to speak to the class.
    • Invite a local banker to come and talk to the class about different types of accounts available, such as a checking account, savings account and other ways to save and invest money. Have students create a phone list of local banks and credit unions that can be distributed to the school and local community.
    • Students will keep a list of their families’ economic decisions made for a week. The students will discuss the results with their parents concerning family money expenditure. At the end of the week the students will write a summary of how their family spends money.
  • CTSO connection

    Family Career and Community Leaders of America (FCCLA)

    http://texasfccla.org

    National Programs:
    FCCLA Family First Project –
    http://www.fcclainc.org/content/families-first

    The FCCLA Families First Project is a national peer education program through which youth gain a better understanding of how families work and learn skills to become strong family members. Its goals are to help youth become strong family members and leaders for today and tomorrow and strengthen the family as the basic unit of society. To help members focus their projects, Families First offers five units. Members may complete projects in one or several units. There is no particular order to them; however, “Families Today” might be a good place to start. This unit covers topics that provide a general overview of families and related issues. The topics are:

    • Families Today: Understand and celebrate families
    • You-Me-Us: Strengthen family relationships
    • Meet the Challenge: Overcome obstacles together
    • Balancing Family and Career: Manage multiple responsibilities
    • Parent Practice: Learn to nurture children

    National Program:
    The FCCLA Financial Fitness national peer education program involves youth teaching one another how to make, save and spend money wisely. Through FCCLA’s Financial Fitness program, youth plan and carry out projects that help them and their peers learn to become wise financial managers and smart consumers.

  • Service Learning Projects

    Successful service learning project ideas originate from student concerns and needs. Allow students to brainstorm about service projects pertaining to the lesson.
    http://www.ysa.org

    Organize a local walk-a-thon to raise money, and donate the money to the community for the renovation of a park, to provide help with minor housing repair needs or to help a family in need.

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