Grade: 3 Lesson # 15

Why should you create an emergency fund?How can you establish and maintain an emergency fund?

SS.4.FL.6.4: Discuss the one method to cope with unexpected losses is to save for emergencies.

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Correlated Standards:AFS.3.SL.1.AP.1a:  Provide evidence of being prepared for discussions on a topic or text through appropriate statements made during discussion.LAFS.3.SL.1.AP.1b:  Ask questions to check understanding of information presented in collaborative discussions.LAFS.3.SL.1.AP.1c:  Link personal ideas and comments to the ideas shared by others in collaborative discussions.

SS.4.FL.6.4: Discuss the one method to cope with unexpected losses is to save for emergencies.

Saving for a Rainy DayGrade 3 Lesson Plan

Lesson Number : 15

Correlated Florida Standards (See Full Text on Cover Page) AFS.3.SL.1.AP.1a LAFS.3.SL.1.AP.1b LAFS.3.SL.1.AP.1c

Essential Question Why should you create an emergency fund? How can you establish and maintain an emergency fund?

Learning Goals/ObjectivesStudents will:

Understand that risks are a part of life Define emergency and list examples Explain how creating an emergency fund can help you in the event of an emergency Identify where they should keep an emergency fund

OverviewStudents will explore risks, emergencies and how having an emergency fund can help you during times of distress. Students will practice calculating the “pay yourself first” strategy and will work collaboratively to identify ways to proactively plan to address emergencies as they arise.

Materials

Dry Erase Board Handout: Situation Cards (Included)

Time 30 minutes

Activity SequenceINTRODUCTION/HOOK (4 minutes)1. Tell students that today’s class will address saving for unexpected emergencies.2. Explain to the students that:

Risks are a part of everyday life. Risks are the possible things that could happen. Usually when we use this word, we are talking about negative things. Risks are like consequences. Many people think of risk only as involving things that are considered dangerous. In reality, risk is a part of everyday life. It’s just that some risks are greater or more obvious than others. For example, which of these two activities makes you think of risk: walking down stairs or motorcycle racing? Motorcycle racing is generally considered higher risk than walking down stairs. But what if there is water on the stairs, if your shoes are untied, or if the stairs are in bad shape?

ACTIVITY (25 minutes)1. Explain to students that though there are many things we can do to protect ourselves from risk, such as

wearing knee pads when skating or wearing a helmet when riding a bike, risks cannot be completely eliminated. Accidents happen. Not only do the consequences of these accidents result in harm or injury, but

also added expenses. Going to the hospital for medical care and taking your car to the shop to be repaired after collision costs money. (1 minute)

2. Explain to students that without savings, unexpected events can become large financial burdens. For this reason, it is important o have an emergency fund. Encourage students to list the possible benefits of having an emergency fund when the following emergencies occur:

o Unemploymento Property damage after a stormo Car breaks downo Injury from a fall (3 minutes)

3. Tell students that most experts believe you should have an emergency fund to cover the cost of living for 3 to 6 months. One way of establishing an emergency fund is through the process of “paying yourself first”, meaning setting aside 10-20% of income for savings before spending any of it. Work collaboratively to calculate the possible savings if you were to set aside 10-20% of your $500 income per week, per month, and per year. Guide students through calculating how much money they would be saving through the following income scenarios:

a. 10% of $500 is $50b. 20% of $500 is $100c. 10% off $1000 is $100d. 20% of $1000 is $200 ( 4 minutes)

4. Tell students that in addition to saving for an emergency, families make smart choices to help them be prepared when accidents and emergencies occur. You cannot prevent a hurricane from storming through, but you can certainly have storm shutters on your windows and sufficient consumables to help your family cope during the storm. ( 1 minute)

5. Smart families make “prepared” choices. They are more frugal, meaning they use their money wisely so they can have an emergency fund in place. Prepared families are always thinking of the future, what could possibly happen and always have a plan in place. Explain to students that today they will be playing a detective game that will teach them how to be a prepared family that saves for a rainy day and is ready for life’s unexpected challenges. ( 1 minute)

6. Place students in small groups and provide each group with a stack of situation cards and explain the activity instructions below:

o Students will be working collaboratively to take turns reading aloud a situation card and deciding if the choice the family made is proactive or if a better choice could have been made. Students should be able to explain what the consequences and risks involved in the family’s choice and describe possible measures that can be taken protect the family from harm/loss.

o Each group will present their plan with the class. (15 minutes)

CLOSURE (1 minute) Revisit the essential questions below and have students use details from the lesson to support their

answers.o Why should you create an emergency fund?o How can you establish and maintain an emergency fund?

OPTIONAL EXTENSION SUGGESTION/HOME LEARNING Have students interview a parent or adult in their household regarding a time when their family

experienced hardship due to an unexpected event. In writing, students will describe the situation and explain what measures were taken to be prepared beforehand if any, and what actions did the family take to cope with the emergency situation.

SOURCES/BIBLIOGRAPHIC INFORMATION THAT CONTRIBUTED TO THIS LESSON

Teacher Resources on Proactive Planning developed by Junior Achievement: (includes enclosed situation cards)

• https://www.juniorachievement.org/documents/20009/31090/JA_Proactive_Planning.pdf/f595616c-be8b- 41dd-a80a-dcae54230453

Article on emergency funds:• https://investor.vanguard.com/emergency-fund/amount

Life Happens Lesson Resources from Scholastic • http://www.scholastic.com/nextgeneration/lessons&worksheets/risk.htm • http://www.scholastic.com/nextgeneration/pdf/Risk_The-411-on-Risk.pdf