Jump$tart Standards
Financial Literacy
Mini-lessons
Table of Contents
Mini Lesson:
Earning Income 4.1a
Competition!
You will have 2 minutes to create a numbered list of all of the jobs you can think of. Whoever has the most jobs wins 10 ClassBank Bucks!!
The person that has the most jobs will read their list and then if anyone has jobs they didn’t include they will share to see how many we can name as a class!
Mini Lesson:
Earning Income 4.1b
Guessing Game
Selected students will come to the front of the class and hold up a piece of paper with a job for the class to see. The class will help the student to guess what job is on their paper by describing the knowledge, skills, interests, and experience needed for this job!
Mini Lesson:
Earning Income 4.2a
Guessing Game!
Which of the following 2 people is most likely to earn more income?
OR
Kid building legos
Construction Worker building a house
A bit more difficult…
Which of the following 2 people is most likely to earn more income?
OR
Baker who can bake simple cookies
Baker who can bake fancy wedding cakes and special desserts
A bit more difficult…
Which of the following 2 people is most likely to earn more income?
OR
Teacher with 2 years of experience
Teacher with 10 years of experience
Recap!
What affects a person’s ability to earn an income?
Mini Lesson:
Earning Income 4.2b
Brainstorm!
Alex works to bake cookies at a bakery and earns $400 a week ($10 an hour). How can he work to increase his income?
Brainstorm!
Riley as a hairstylist and earns $400 a week ($10 an hour). How can she work to increase his income?
Recap!
How can a person increase their income?
Mini Lesson:
Earning Income 4.3a
Think, Move, Pair Share!
Think: Can you think of anyone with a job? (Maybe family members, community members, friends, etc.) What do they do? Do they get paid for it?
Move: Without talking organize yourselves in a line by birthdays. (From January 1st to December 31st) Tip: maybe use your hands to indicate numbers. Teacher will check the line order and if it's correct everyone will receive a bonus of 5 ClassBank Bucks!
Think, Move, Pair Share!
Pair: With the student next to you discuss who you thought about. What would happen if people didn’t get paid? Why is it important for employers to pay their employees for their labor?
Share: Raise your hand to share with the class!
Mini Lesson:
Earning Income 4.3b
Watch the Video
Attention! - There will be a quiz after the video so make sure to listen for the words: hourly/wages, salaries, commissions, and tips
Quiz!
On a piece of paper match the following definitions on the left with the terms on the right.
Correct your work! If you made any mistakes write a small explanation with the right answer. Turn your paper in to your teacher to earn 1 ClassBank Bucks for each correct answer or for each corrected answer with an explanation!
Mini Lesson:
Earning Income 4.3c
Quiz!
On a piece of paper match the jobs on the right with their typical style of income on the left.
Correct your work! If you made any mistakes write a small explanation with the right answer. Turn your paper in to your teacher to earn 1 ClassBank Buck for each correct answer or each corrected answer with an explanation!
Mini Lesson:
Earning Income 4.4a
Brainstorm Blast!
You get to be an entrepreneur! Create your dream business with the following…
* Make sure to create a visual representation of your business (with at least the name and basic function of the business) for a gallery walk later
Gallery Walk
Display your visual representation on the table and complete a gallery walk to view the businesses of all your classmates!
Vote on your favorite business idea and the student(s) with the most votes will win 10 ClassBank Bucks!!
Mini Lesson:
Earning Income 4.4b
Trivia Matching!
Match each accomplishment on the left with a famous entrepreneur on the right
Correct your work! If you made any mistakes write a small explanation with the right answer. Turn your paper in to your teacher to earn 3 ClassBank Bucks for each correct answer or 2 ClassBank Bucks each corrected answer with an explanation!
Impact of their Work
Failed Business Ideas
Toys "R" Us: once-popular toy store chain.
Blockbuster: a video rental chain.
Juicero: a $400 juice machine.
Theranos: a blood-testing startup
Discussion
What is similar about each of the successful entrepreneurs? What makes them successful?
What about the failed business ideas?
What causes entrepreneurs to fail?
Mini Lesson:
Earning Income 4.4c
Choose to either operate a lemonade stand or lawn mowing service and then decide each of the components listed below your chosen business idea
Money Behind the Business
Note: There are 20 customers per day and 1 cup costs 20 ¢ to create
Decide….
- Selling Price (number of $ per cup of lemonade)
- # of Days in the week stand is open
Lemonade Stand
Lawn Mowing Service
Note: There are 3 lawns to mow per day and it costs 20$ a week to rent the lawn mower
Decide…..
- Charge per lawn
- # of Days in the week spent mowing lawns
Calculate Your Profit
Things to Keep in Mind, In a real world scenario….
Now Calculate Your Profit!
20 customers per day x Number of Days Open a Week x Selling price = Total Sales
Total Sales - (20 customers per day x Number of Days Open a Week x 20¢ to create a cup) = Total Profit each Week
2 lawns per day x Number of Days Mowing Lawns x Charge per Lawn = Total Sales
Total Sales - 20$ weekly rent for lawn mower = Total Profit each Week
Mini Lesson:
Earning Income 4.5a
People can earn income by lending money or renting property to others…
Quick Info
Why do people lend money or rent property to others?
Why are lending and renting important (for both the sellers and buyers)?
What are the pros and cons of lending money or renting property to others? What about of borrowing money or renting property from others?
Discussion
Mini Lesson:
Earning Income 4.5b
Competition!
We know: People can earn income by renting property to others…
You will have 2 minutes to create a numbered list of all of the different types of property you can think of that can be used by owners to earn rental income. Whoever has the most jobs wins 10 ClassBank Bucks!!
Whoever has the most types will read their list and then whoever has types they didn’t include will share to see how many we can name as a class!
Some Example Answers!
Mini Lesson:
Earning Income 4.6a
Competition!
Gifts can be another way of receiving of giving money!
You will have 2 minutes to create a numbered list of all of the different reasons you can think of for gifting money to others. Whoever has the most reasons wins 10 ClassBank Bucks!!
Whoever has the most reasons will read their list and then whoever has reasons they didn’t include will share to see how many we can name as a class!
Some Example Answers!
Mini Lesson:
Earning Income 4.6b
Mini Debate!
Fact: Some families/caregivers pay their children a weekly allowance.
The class will be split into 2 groups. Both groups will receive 5 minutes to prepare points and decide 3 speakers to represent them. Group 1 will argue the pros of paying children this weekly allowance while Group 2 will argue the cons.
The teacher will decide which team had the most quality points and rebuttals to the other teams points. Everyone in this group will receive 10 ClassBank Bucks and each speaker will receive an additional 5 ClassBank Bucks.
Mini Lesson:
Earning Income 4.7a
Watch this Video!
Discussion
What are government provided goods and services? What are some examples?
Do you or anyone you know utilize these goods and services?
Who pays for these goods and services? (How does the government get the funding for them?)
Mini Lesson:
Earning Income 4.7b
Short Story Read-Aloud
The Town Without Taxes
Once upon a time, there was a small town called Maple Grove. It was a happy place where children went to school, families visited the library, and firefighters kept everyone safe. The people of Maple Grove paid taxes, which helped pay for these services.
One day, the townspeople decided they didn’t want to pay taxes anymore. At first, nothing seemed to change. But soon, the fire station couldn’t afford new equipment, and the firefighters had to stop working. When a small fire started in the bakery, no one was there to put it out.
The library also had to close because there was no money to buy books or keep the lights on. Kids had nowhere to go after school to read or learn. Meanwhile, the school couldn’t pay the teachers, so the classrooms became too crowded, and some kids had to stay home instead of learning with their friends.
The streets became dirty, and some roads had potholes that never got fixed. People realized that the services they once took for granted were disappearing.
Finally, the town decided to start paying taxes again. Firefighters returned to work, the library reopened, and the school hired teachers to help every student learn. The town was happy once more, and everyone understood why paying taxes was important for keeping their community safe and strong.
Discussion
Why are citizens required to contribute to the cost of fire protection, police, public libraries, and schools?
What would happen if they didn’t contribute?
Why are taxes important? Why are government-provided goods and service important?
Mini Lesson:
Spending 4.1a
Real World Scenario
People have many different preferences that can influence their spending decisions on goods and services.
Sarah is studying art at her University. She loves spending time with her friends doing all kinds of fun activities!
Juan is a father to 3 boys, 1 of which was just born! He works as a middle school english teacher.
Ana is in 5th grade. She is great at soccer and loves playing many sports! She studies hard in school and also likes animals!
Jared is a police officer. He loves to bake and cook in his free time. He hosts dinner parties all the time!
Think it Out
Based on what you have learned about Sarah, Juan, Ana, and Jared what can you infer about the goods and services they would be most likely to purchase?
Discussion
What causes people to make different decisions when purchasing goods and services?
What factors can influence these decisions?
Should businesses understand these preferences and try to target their products to the most relevant target audiences? How can they do this?
Mini Lesson:
Spending 4.1b
Goal Setting!
Create 3 personal goals for consumption of goods and services with ClassBank. Turn your goals into your teacher so that you can later revisit them to check for your achievement. Those that accomplish their goals will receive a bonus of 20 ClassBank bucks!
Examples of Goals:
Goal Setting!
Make sure to think “SMART” when creating your goals!
Mini Lesson:
Spending 4.1c
Individual Activity
Rate the following items from 1 (Most Important) to 10 (Least Important) in the order that you would purchase them. Note: You have limited money and may not be able to afford all of them.
Fresh Fruit
Dessert
Hygiene
Items
3 Well Balanced Meals
Health Insurance
Disaster Insurance
Games
Clothes
House
Car
Discussion
Mini Lesson:
Spending 4.2a
Individual Quiz
What are services shared amongst people living in a community in the real world? Give at least 3 examples. Earn 5 ClassBank bucks for each correct answer!
Some examples include….
Discussion
How do members of the community share the cost of resources available to everyone?
Think: Who provides these resources? Where do they get the money to create these resources?
Mini Lesson:
Spending 4.2b
Brainstorm & Mind Mapping
How can each of the following factors influence spending decisions?
How people spend their money can be influenced by….
Values: Beliefs about what is important to a person
Attitudes: personal feelings, opinions, or mindsets/lifestyles
Personal Experiences
Family Influences
Cultural backgrounds/beliefs
Priorities and Major Goals
Mini Lesson:
Spending 4.2c
Spending Money Ideas
Money in many scenarios can be spent to increase personal satisfaction. Individually fill out the missing blanks in the following table for how you can spend your money to bring you the most personal satisfaction!
Buying Things You Enjoy... | To Have New Experiences… | To Give/Help Others… | To Learn Something New… | To Improve Comfort… | Any Other Ideas… |
Ex: Art supplies! | Ex: Tickets to go to an amusement park! | Ex: Birthday gift for friend! | Ex: Pay for a piano lesson! | Ex: Buying better shoes! | Ex: New books! |
Mini Lesson:
Spending 4.3a
Real World Scenarios
Molly has $20. She has enough money to either buy new shoes or new art supplies. Molly chose to get the shoes and the opportunity cost of this purchase is the art supplies she wasn’t able to get.
Steven has 3 hours of free time. He can either go to the movies with his friends or learn a new recipe from his grandmother. Steven chose to go to the movies and the opportunity cost of this choice is the time he wasn’t able to spend with his grandmother.
Rose has to pick between learning piano or dance. She picked piano and the opportunity cost of learning piano is not being able to learn dance.
Informed Guessing
Based on these scenarios: make an individual informed guess on what the term opportunity cost means. Earn 10 ClassBank bucks for a close guess!
Once everyone has written down their individual guesses, the teacher will pick a few students to share out their guesses for the class.
Definition Reveal…
If you spend your money, time, or resources on one thing, you miss the chance to spend it on something else. The thing you give up is called the opportunity cost.
There will always be an opportunity cost when making a decision between various options.
Mini Lesson:
Spending 4.3b
What would you do?
Financial choices are how you decide to spend and save your money. Every financial choice has an opportunity cost (the alternative choice you didn’t select). In the following scenarios discuss with your peers what you would do.
Scenario 1: You just received 50$ for your birthday from grandma!
Would you…
Scenario 2: You have 10$ from your weekly allowance!
Would you…
Mini Lesson:
Spending 4.4a
Fill it Out
Different people make different spending choices based on their needs, age, and how much money they have to spend. The costs and benefits of buying an item can vary depending on these factors. Fill out the following table accordingly…
| An Elementary Student that earns a weekly allowance and has some gift money. | A University student with a decent budget and a need to travel sound campus somehow. | A retired senior with large amounts of savings and now has leg and knee pains. |
What costs will it cause to this person specifically? | | | |
What benefits will it provide to this person specifically? | | | |
A New Bike!!
Fill it Out
| An Elementary School student that earns a weekly allowance and has some gift money. | A University student with a decent budget who is living away from their family for the first time. | A retired senior with large amounts of savings that lives alone. |
What costs will it cause to this person specifically? | | | |
What benefits will it provide to this person specifically? | | | |
What about a smartphone?
Discussion
Are different goods and services more valuable for different groups of people?
Are different goods and services more attainable for different groups of people?
What goods and services do you like to purchase? What costs and benefits do they have for you?
Mini Lesson:
Spending 4.4b
Fill it Out
Trading goods and services between family members and friends can have various costs and benefits. Fill out the following table based on the scenario…
Scenario 1: Your older sibling’s weekly chore is to wash dishes. Recently you have been struggling with completing your math homework due to more difficult assignments. You offered your older sibling that you would wash the dishes for the next 2 weeks and in return they could help you prepare for your upcoming math exam.
| For You | For Your Older Sibling |
Costs of doing this trade | | |
Benefits of doing this trade | | |
Fill it Out
Scenario 2: Sam gets the same turkey sandwich and apple for lunch each day. He notices that his friend Mary gets the same chicken pasta and cookie everyday. On the first day, he offers his friend Mary to trade her cookie for his apple one day. The next day he offers Mary to trade her pasta for his sandwich. They decide to continue trading their items in this order and every third day they agree to eat their own original lunches.
| For Sam | For Mary |
Costs of doing this trade | | |
Benefits of doing this trade | | |
Discussion
Is trading goods and services between friends and family valuable?
When should people trade and what should they trade?
How should they decide what is a fair trade?
Have you ever traded with your family or friends? What did you trade and what costs and benefits were placed on the involved people?
Mini Lesson:
Spending 4.5a
Skits and Role-Playing!
Peer pressure happens when friends or classmates influence your choices. It can affect how people spend money, especially when trying to fit in or be part of a group.
The teacher will split the class into groups and give each group a card. Each group will have 5 minutes to create a short skit demonstrating the scenario written on the card.
After 5 minutes, each group will take turns to demonstrate their skits to the class. For each skit that effectively demonstrates the scenario written on the card, each group member will earn 10 ClassBank Bucks!!
Mini Lesson:
Spending 4.5b
Factors Affecting Purchases
1. Price: How much something costs can affect whether or not customers buy it.
Example: Sam was saving money to buy his younger brother a toy for Christmas. However, he purchased the toy in November instead since there was a Black Friday deal on the toy for half price off!
Key Idea: Lower prices may encourage buying, while higher prices might make you wait or choose something else.
Factors Affecting Purchases
2. Peer Pressure/Spending Choices of others: People often buy things because they see others buying them.
Example: Everyone in class has this new trending backpack. Your backpack right now is perfectly functional and you have always liked it. However, after seeing others in your class, you now want that backpack as well.
Key Idea: Peer pressure can make you buy things you might not need just to fit in.
Factors Affecting Purchases
3. Advertising: Companies use ads to make products look fun, useful, or cool so people want to buy them.
Example: You have some savings which you were planning to buy new shoes with. However then you see an add for more expensive shoes but they look so much cooler and the kids wearing them look so happy so you decide to save some more to buy those instead.
Key Idea: Ads often show happy or successful people using a product to make it more appealing.
Mini Lesson:
Spending 4.5c
Sorting Sources
When buying a product, it’s important to find reliable sources of information to make a smart decision. Reliable sources help you learn the truth about a product, not just what an advertisement wants you to believe.
Copy down the following T-chart…
Reliable Sources | Unreliable Sources |
|
|
Sorting Sources
Sort the following sources into your T-chart determining whether they are reliable or unreliable. Earn 3 ClassBank bucks for each correctly sorted source.
Answer Reveal
Check your answers with the following chart! Note: the answers below are generally true however there could be some exceptions with specific scenarios/sources.
Reliable Sources | Unreliable Sources |
|
|
Mini Lesson:
Spending 4.6a
Matching Game
Below match the payment methods on the left to their descriptions on the right. Earn 3 ClassBank Bucks for each correct match!
Similarities in Payment Methods
There are several similarities between paying with cash, check, and debit card. Can anyone guess any?
Mini Lesson:
Spending 4.6b
Debit v.s. Credit
The following table shows the differences between debit and credit cards, however the headings are missing. Try and match the headings “Debit Card” and “Credit Card” to their respective columns. Earn 10 ClassBank Bucks for a correct match!
Type of Card | | |
Source of Money | Takes money directly from your bank account. | Borrows money from the bank (you repay later). |
Spending Limit | Limited to the amount of money in your account. | Limited to your credit card’s borrowing limit. |
Interest Charges | No interest since it's your own money. | Interest is charged if the balance isn't paid in full. |
Ease of Use | Easy to track spending since it’s instant. | Can overspend if not careful, leading to debt. |
Purpose | Best for everyday purchases and budgeting. | Useful for big purchases or building credit history. |
Fees and Charges | Minimal fees (e.g., ATM fees). | Possible fees (e.g., late payments or annual fees). |
Fraud Protection | Generally offers fraud protection. | Offers stronger fraud protection in most cases. |
Debit Card
Credit Card
Discussion
Why do you think different people use different cards?
What do you think are the benefits of using a credit card? A debit card?
What do you think are the disadvantages of using a credit card? A debit card?
Which one would you prefer to use and for what scenarios?
Mini Lesson:
Saving 4.1a
Short Story: Leo’s Empty Jar
Leo had been saving his money to buy a cool new video game that cost $40. He had $20 saved so far and felt excited to reach his goal.
One day, Leo went to the snack shop with his friends after school. He bought a soda for $2. "It's just a small thing," he thought. The next day, he bought a bag of chips for $3. The week after that, Leo spent $5 on a toy he saw at the store.
Week after week, Leo kept making small purchases. Each time, he thought, "It's only a little money. I’ll still save enough."
But one Saturday, Leo looked at his savings jar and was shocked. There was only $5 left! He had spent almost all his money on snacks and toys without realizing it. Now, he didn’t have enough for the video game.
Leo felt disappointed. He decided to stop spending on little things so he could save for the game again. Next time, he would think carefully before spending his money.
Discussion
Why didn’t Leo realize he was running out of money?
What could Leo have done differently to reach his goal?
How do small purchases add up over time?
Have you ever successfully saved money to purchase something?
Why it is often harder to save than to spend money?
Mini Lesson:
Saving 4.1b
Be Creative!
In small groups you will have 5 minutes to create a final product displaying a scenario where you save money for a future purchase instead of buying something now.
You could create…
After 5 minutes each group can quickly present their scenarios!
Mini Lesson:
Saving 4.1c
Watch Video
Discussion
Mini Lesson:
Saving 4.2a
Creating Saving Plans
Individually you will create a saving plan to help achieve a goal to purchase a larger item in the future. Think about something you may want to purchase in your classroom with ClassBank bucks and fill out the following plan!
Goal (Price of Desired Item) | |
Current Savings | |
Additional Money Needed | |
Average Money Made Each Week | |
Average Necessary Spendings From Each Week’s Earnings | |
How Many Total Weeks Needed to Earn Enough Money? (Calculate based on weekly earnings after weekly spendings) | |
Creating Saving Tracker
Once you have created your saving plan, you can use the saving tracker below to measure your progress until your goal is reached. Earn an additional 10 ClassBank bucks if you are able to achieve your goal! Turn in your completed saving plan and tracker after completing your goal to receive the ClassBank bucks reward,
Week # | Money Saved this Week | Total Saved | Remaining to Save |
| | | |
| | | |
| | | |
| | | |
| | | |
Mini Lesson:
Saving 4.2b
Short Story: Maya’s Flat Tire
Maya loved riding her bike to school every day. One morning, as she was heading out, she noticed her bike tire was flat. She needed to get it fixed quickly because she didn’t want to miss school.
The repair shop told her it would cost $15 to fix the tire. Maya was relieved because she had been saving her money for emergencies. She used the $15 from her savings jar to pay for the repair.
Maya was able to get her bike fixed the same day and made it to school on time. She was glad she had set aside some money for situations like this, instead of spending it all on snacks and toys.
Discussion
What would have happened if Maya didn’t have any money saved?
Why is it important to have some savings for emergencies?
Can you think of other emergencies where money might be needed?
Mini Lesson:
Saving 4.2c
Competition!
You will have 2 minutes to create a numbered list of all of the ways you can think of that people can decrease expenses to save more of their money. Whoever has the most jobs wins 10 ClassBank Bucks!!
Whoever has the most jobs will read their list and then whoever has jobs they didn’t include will share to see how many we can name as a class!
Example Answers!
Mini Lesson:
Saving 4.3a
Guess That Reason!
Life circumstances and experiences can cause people to differ in their values and attitudes about saving and their ability to save. In each of the following scenarios guess the person’s values and attitudes towards saving (whether or not they might do it and why?)
Discussion
How can different people’s life circumstances and experiences cause them to differ in their values and attitudes about saving and their ability to save?
What are some reasons why you or people you know may choose to save or not save?
In which scenarios is it very important to save?
Mini Lesson:
Saving 4.3b
Act it Out
Friends and family can influence a person’s values and attitudes about saving
The teacher will split the class into groups and give each group a card. The card will describe a family or friend in a person’s life. Each group will have 5 minutes to create a short skit demonstrating how the family/friend can specifically influence the person’s saving habits.
After 5 minutes, each group will take turns to demonstrate their skits to the class. For each skit that effectively demonstrates the influence of the family/friend written on the card, each group member will earn 10 ClassBank Bucks!!
Mini Lesson:
Saving 4.4a
Trivia Question!
What is one reason saving money in a bank is better than keeping it at home?
A. Your money earns extra money called interest.
B. It’s safer from being lost or stolen.
C. You’re less likely to spend it impulsively.
D. All of the above.
Write down your answer and earn 5 ClassBank Bucks for the correct answer!
Discussion
Have you ever saved your money in a physical jar or piggy bank? Would you consider switching to saving at a real bank instead? Why or why not?
What are the advantages and disadvantages of saving your money in an account in a financial institution?
Mini Lesson:
Saving 4.4b
Safe Places to Save!
Sort the following places to save money along the line below:
Banks or Credit Unions
A Safe at Home
A Trusted Family Member
A Piggy Bank
A Wallet
A Jeans Pocket
Most Safe
Least Safe
Generally Safe
Discussion
Why did you sort the places as you did? Which place was the most safe? Which was the least safe?
Knowing this would you change the way you save money currently (or in the future), why or why not?
Mini Lesson:
Saving 4.5a
Financial Institutions: How it Works
Interest is extra money that banks and credit unions pay you for keeping your money with them.
So, if you save $100 in a bank account that pays 1% interest per year, the bank will give you an extra $1 at the end of the year.
Why do banks pay interest?
Financial Institutions: How it Works
Why do banks want more people to save with them?
The borrowers pay interest as well to the bank on the loans they take out. For instance if someone borrows 200$ with a 5% interest rate, they will have to pay back 210$.
The bank shares part of that interest with savers (as interest on their savings) to reward them for letting the bank use their money.
Recap! Fill in the Blanks…
Using the Word Bank below, try to fill in all of the blanks and recap the information we just learned! Earn 2 ClassBank Bucks for each correctly filled blank.
Word Bank | Pay Back Loans Interest Savings Borrowers |
Banks offer ______ to people who decide to save their money with them.
The bank then ______ part of your money to ________.
Those borrowers are then required to ______ the bank with additional interest.
The bank uses some of that extra money to pay you interest on your ______.
Answer Reveal
Word Bank | Pay Back Loans Interest Savings Borrowers |
Banks offer interest to people who decide to save their money with them.
The bank then loans part of your money to borrowers.
Those borrowers are then required to pay back the bank with additional interest.
The bank uses some of that extra money to pay you interest on your savings.
Mini Lesson:
Saving 4.5b
Comparing Two Banks
Bank A
Interest Rate: 0.10% per year
Traditional bank with many physical branches and ATMs
Bank B
Interest Rate: 1.50% per year
Online-only bank that offers higher rates since it has fewer expenses
Which bank helps your money grow faster?
What if you had $500, how much would you have if you saved in these banks for one year?
(Calculation = Original amount x Interest rate = Amount after 1 year)
Would you choose Bank A or Bank B? Why?
Mini Lesson:
Investing 4.1a
Alex Learns About Investing
One day, Alex had $100 from birthday money and chores. Alex wanted to save for something exciting in the future, but wasn’t sure what to do with the money.
Alex's friend Taylor shared an idea:
"Why not invest your money in something that could grow? For example, there's a toy company called SuperToys that makes cool new toys. If you invest your money in SuperToys, you’re giving them money to help make more toys. When the company does well, your money grows too!"
Alex thought this was interesting and decided to invest the $100 in SuperToys. After a year, SuperToys became super popular, and Alex’s investment grew to $120!
Follow-Up Questions
Why do you think Alex decided to invest instead of keeping the money in a piggy bank?
What might have happened if SuperToys didn’t do well?
Why is investing sometimes better than saving?
More Information!
What is Investing?
Why do people invest?
Mini Lesson:
Investing 4.1b
Long Term Financial Goals
Can you think of examples of long term financial goals?
Here are some examples…
A House or Property
Retirement
College Tuition
Building a Business
Wealth for Future Generations
Buying a Car
Can Investing Help?
Regular investing money over many years can help achieve these long term financial goals!!
Saving vs. Investing
While saving in a bank is safe it grows slowly with low interest rates.
Investing carries more risk but can grow money significantly over decades.
Benefits of Investing
- Over time, the money you invest earns returns, and those returns also grow.
- Adding money regularly, even small amounts, helps your investment grow faster.
- The earlier you start investing, the more time your money has to grow.
Mini Lesson:
Investing 4.2a
Investing vs Saving
Try to fill out the following Venn Diagram with the similarities and differences between Investing and Saving!
Investing
Saving
Both
Some Answers!
Investing
Saving
Both
Help build wealth
Require planning (you need to specifically set money aside)
Teach the importance of budgeting & financial discipline
Can grow your money
Low risk, money is safe
Smaller growth through interest
Easier to access at anytime (can withdraw from savings accounts)
For emergencies & immediate needs
Higher risk, money’s value can decrease
Higher potential growth
Generally, for bigger future financial goals
Harder to access (investments take time to sell)
Mini Lesson:
Investing 4.2b
Warm-up
Have you ever saved money for something? What was it?
What do you think investing means?
📝 Mini activity: Stand up if you’ve ever saved money before!
Did you wait a short time or a long time to get what you wanted?
Matching
Savings
Investment
Are these financial goals a better fit for savings or investment?
Mini Lesson:
Managing Credit 4.1a
Watch Video
Discussion
Mini Lesson:
Managing Credit 4.1b
Competition!
You will have 2 minutes to create a numbered list of all of the reasons you can think of that businesses and individuals would lend money to others. Whoever has the most reasons wins 10 ClassBank Bucks!!
Whoever has the most reasons will read their list and then whoever has reasons they didn’t include will share to see how many we can name as a class!
Some Answers!
Businesses
Interest as Profit - Businesses lend money to earn interest, which is like a fee paid for using their money.
Helping Customers or Clients
Encouraging Economic Growth - Lending money can help grow the economy by allowing businesses to expand start new ventures.
Individuals
To Earn Interest - Like businesses, individuals can lend money to earn interest.
To Help Others in Need
Building Trust and Relationships
Supporting a Business Venture - to help entrepreneurs or small businesses, expecting a return later
Mini Lesson:
Managing Credit 4.2a
What is Credit!
Credit is money that is borrowed to buy goods or services now, with the promise to pay it back later, often with interest. It’s a way to get things that people need or want before they have enough money to pay for them upfront.
Can you think of any goods or services that people may commonly purchase using credit?
What reasons may people have for using credit?
Common Uses of Credit
Goods
Services
Appliances, Cars, Furniture, Electronics
Medical expenses, Education, Travel, Vacation, Home renovations, Emergency Repairs
Mini Lesson:
Managing Credit 4.2b
Trivia!
Why might people may prefer to buy something with credit rather than paying cash?
Recap
Recap
Mini Lesson:
Managing Credit 4.3a
Decision Making!
Imagine you have some extra money and can afford to lend some money to one person only. Which person would you rather lend money to?
Amelia, your cousin who you have always trusted and needs a loan for her university tuition. She hopes to study psychology and become a therapist to pay you back.
Joshua, your friend who you heard sometimes is not the most responsible. He was hoping to loan money to buy new video games and hopes to pay you back once he finds a job.
Who Gets the Money?
Most people would choose Amelia. Can you think of any reasons why?
Who Gets the Money?
Mini Lesson:
Managing Credit 4.3b
Samantha’s Dilemma
Samantha and her friends have always loved playing sports after and during school. For her birthday, Samantha got lots of new sports equipment for all her favorite games!
One day during recess, Jacob asked if he could borrow Samantha’s tennis rackets for the weekend. Samantha knew her friend Mary once loaned Jacob her new pens and never got them back. She also knew Jacob lost his belongings often.
Samantha knew Jacob wanted the rackets to play tennis with his cousins who were coming for the weekend. She is unsure whether or not she should trust him with her new rackets.
What would you do?
If you were Samantha what would you do?
Would you lend the tennis rackets? Why or why not?
What advice would you give Samantha? What would you tell Jacob?
Why do you think a person might be reluctant to lend money or personal possessions to someone who has a history of not repaying previous loans?
Mini Lesson:
Managing Risk 4.1a
Trivia Question!
How many natural disasters occurred worldwide in 2023? Bonus points for listing 4 examples of natural disasters!
Answer: 398
Examples of Natural Disasters Include: Earthquakes, Tornados, Landslides, Storms, Wildfires, Heat Waves, Floods, Tsunamis, Hurricanes, etc.
Trivia Question!
Answer: 55,000 and 40%
Risk is an unavoidable part of daily life…
But we can prepare for them to prevent the damage they cause!
Mini Lesson:
Managing Risk 4.1b
The Caution Man
There once was a man named Edward who never took risks. He lived in a small, safe house and worked a simple job he didn’t like but never left because it was reliable. Every day was the same: wake up, go to work, eat dinner, and sleep.
Edward’s friends would invite him to try new things. “Come invest with us!” they said. “You could grow your money.” But Edward always replied, “What if I lose it?”
Another friend suggested, “Try this new job; it pays more.” Edward shook his head. “What if I fail?”
The Caution Man
Years passed, and Edward watched his friends achieve their dreams. Some made mistakes, but they learned and grew. They traveled, started businesses, and built exciting lives. Edward stayed where he was, safe but stuck.
One day, Edward looked in the mirror and sighed. “I’ve never failed,” he said, “but I’ve also never truly lived.”
From that day forward, Edward decided to take small chances. He tried a new hobby, spoke up at work, and even invested a little money. Bit by bit, Edward discovered that while risks could be scary, they also opened the door to a richer, fuller life.
Discussion
Edward never had failed. Isn’t that great? Why was he disappointed?
What would happen if you never took risks?
Why do people choose to take risks even though they know there’s a chance for misfortune?
Mini Lesson:
Managing Risk 4.1c
Risks and Their Cost
Risks are situations where there’s a chance of losing something valuable, whether it’s money, time, or even physical safety. It’s important to think about the possible costs or losses before taking a risk.
Physical Risks might cause harm to a person, their belongings, or their environment.
Can you think of any physical risks caused by a certain decision, choice, or action?
Examples….
Risks and Their Cost
Financial Risks involve losing money or financial resources
Can you think of any financial risks caused by a certain decision, choice, or action?
Examples….
To Risk or Not to Risk
Think About What You’re Risking:
Is it money, time, health, or something else? Physical and/or financial?
Consider the Worst-Case Scenario:
What is the most you could lose if things go wrong?
Weigh the Potential Loss Against the Reward:
Are you taking unnecessary or reckless risks?
How important is the reward?
So…. Is the risk worth it?
Mini Lesson:
Managing Risk 4.1d
Risk to Valuable Items
Valuable items can include things like electronics, jewelry, clothing, vehicles, or sentimental items like photos. These items can be expensive to replace or impossible to recover if lost or damaged.
Can you think of any ways that valuable items can be at risk?
Mini Lesson:
Managing Risk 4.2a
How to Avoid Risk
To Avoid Risk (as much as possible) Remember…
Put it into Action
Give the following people advice on how to reduce/avoid risk!
Sarah rides her bike everywhere. She doesn’t want to lose it or have it stolen in the busy city. What can she do to avoid this risk?
Connor knows himself. When he goes shopping he always wants to buy too many things outside of his budget and ends up overspending. What can he do to avoid this risk?
Jasmine is a professional soccer player. She absolutely loves the game and doesn’t want to give up the sport, but her parents fear she will get injured. What can she do to avoid this risk?
Mini Lesson:
Managing Risk 4.2b
Trivia!
Multi-Select: Choose as many answers you think are correct. Earn 2 Classbank Bucks for each correctly identified answer!
Question: Which risks are very difficult or impossible for people to entirely reduce or avoid?
Answer: a, c, and d!
Mini Lesson:
Managing Risk 4.3a
Be Creative!
Emergency savings are money set aside to help cover unexpected expenses or financial setbacks. These funds can prevent financial stress and help people recover quickly from life events.
In small groups take 10 minutes to create a final product that displays how emergency savings can be extremely beneficial for specific life situations.
For your final product you can create…
After 10 minutes you will be asked to share with the class!
Recap
Emergency savings can prevent financial stress and help people recover quickly from life events such as….
Medical Emergencies
Home or Car Repairs
Traveling for a Family Emergency
Job Loss or Income Reduction
Mini Lesson:
Managing Risk 4.3b
System to Stay Organized!
Being organized helps prevent the loss of personal items and ensures money is used wisely. A system can make it easy to know where things are and how much money is available.
Tips to creating your own system!
Create Your Own System!
Think about how you currently organize your personal items. Are there any you often misplace? What about how you use your money, do you have trouble budgeting and organizing it?
Using the tips create your own system with a plan for organizing your personal items and keeping track of your money. You can use the template below for inspiration if you’d like.
Organizing My… | What I currently do and problems I may face. | How I can improve. My new organizational system strategy! |
Personal Items | | |
Money | | |
Mini Lesson:
Managing Risk 4.4a
Life Happens
Insurance is a way to protect yourself financially from big risks. People pay a small amount of money regularly (called a premium), and if something bad happens, the insurance company helps cover the costs.
You have a 1000$ monthly salary. Decide whether or not to purchase the following insurance packages and then we will go through a story to see whether or not you made the right decision! Whoever has the most money left will earn 20 ClassBank Bucks!! However, if you go into debt you will lose 8 ClassBank Bucks.
Health Insurance
$100 monthly
Covers doctor visits, hospital stays, & medical emergencies
Car Insurance
$75 monthly
Covers car repairs in an accident, and helps with stolen car
Home Insurance
$50 monthly
Covers damage to the house from fires, storms, or theft
Life Happens: Story Time!
On Saturday, you joined your friends for a basketball game at the park. You leapt for a rebound and landed awkwardly, twisting your ankle. The pain was unbearable. Your friends helped you to the car, and they drove to the doctor’s office.
When you got the bill, her jaw dropped: $500! If you don’t have health insurance, you will have to pay the full amount. If you did have health insurance good news! You will only have to pay $20!
Life Happens: Story Time!
A few days later, you were driving to work on a busy Monday morning. Traffic was heavier than usual, and distracted by your thoughts you didn’t notice the car in front of you suddenly stopping. You slam on the brakes, but it was too late. Your car bumped into the rear of the car ahead with a loud crunch.
You call the repair shop for an estimate and they tell you it will cost $700 without car insurance! If you have car insurance it will cost $50.
Calculate your outcome
$1000 - (Insurances Purchased + Costs from Unexpected Events) = Your Outcome
If you went into debt, you will lose 8 ClassBank Bucks and if you ended up with the highest amount of money in the class you will earn 20 ClassBank Bucks.
Do you regret any of your decisions?
Why might people decide to buy insurance? Why is insurance important?
What would you choose to do in real life? Would you purchase car, home, and health insurance?
Mini Lesson:
Managing Risk 4.4b
Watch this Video
Research, Pair, Share!
Using the resources provided by your teacher spend 5-10 minutes learning a bit more about the different types of insurance!
After the 5-10 minutes share your learning with a partner.
Then a few students will get to share their learnings and discussion with the whole class