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Never Too Young: Personal Finance for Young Learners After School Program for Elementary School Students in Personal Finance and Economics
Authors
Judy Austin
Economic Education Consultant
Center for Economic Education & Entrepreneurship
University of Delaware
Cindy Fitzthum
Social Studies Teacher
Princeton High School
Princeton, MN
This material was made possible through funding by the ING DIRECT Kids Foundation.
2
The Council for Economic Education expresses its thanks to the many individuals who were involved with this project.
Acknowledgments
Council for Economic Education
Rosanna Castillo
Manager, Program Administration
Chris Caltabiano
Vice President, Domestic Programs
ING DIRECT
Cathy MacFarlane
former Head of Corporate Relations
Brian Myres
Head of Sales
Bonnie Meszaros
Assistant Professor of Economics
Associate Director
Center for Economic Education
and Entrepreneurship
University of Delaware
Boy Scouts of America
Central Minnesota Council
Jane Holmberg
ScoutReach Coordinator
Mohamed Moalim
Program Aide
David Trehey
Scout Executive
Boy Scouts of America
DEL‐MAR‐VA Council
Atiya Chase
Cub Scout Program Specialist
Will Nielsen
Cub Scout Program Specialist
Cindy Olsavsky
Field Director
Denise Perez
ScoutReach Coordinator
Ken Rebeck
Associate Professor of Economics
Director, Center for Economic Education
St. Cloud State University
Field Test Sites
Bel Clare Community Center
St. Cloud, MN
East Side Boys and Girls Club
St. Cloud, MN
La Cruz Community Center
St. Cloud, MN
Ministry of Caring’s Homeless Shelter
Wilmington, DE
Roosevelt Boys and Girls Club
St. Cloud, MN
Southside Boys and Girls Club
St. Cloud, MN
Stubbs Elementary School
Wilmington, DE
3
Introduction
The Council for Economic Education (CEE) is the leading organization in the United States that focuses on the economic and financial education of students from kindergarten through high school. For the past 60 years, our mission has been to instill in young people the fourth “R”—a real‐world understanding of economics and personal finance. CEE delivers its core mission of teaching K–12 students through professional development of teachers, providing educators with instruction in content and pedagogy, and developing engaging content in personal finance and economics. The K–5 after‐school program, Never Too Young: Personal Finance for Young Learners, is a critical program through which CEE delivers this mission.
Never Too Young: Personal Finance for Young Learners was developed in response to a growing interest in teaching students about personal finance through settings outside of the traditional school day. While there is no lack of material for teaching personal finance, there are few approaches that take into account the particular features of an after‐school setting—for example, the broader range in age and ability of students participating in an after‐school group; that the group may meet in a location that is not set up like a standard classroom; more sporadic participant attendance; and, perhaps most importantly, a lack of trained educators prepared to teach personal finance in this setting. This program responds to these gaps. The program teaches young students about financial choices, cost‐benefit analysis for purchases, the role of an entrepreneur, and the economics and finances of their individual communities—all with a goal of helping children understand that saving is a good thing for us as individuals and as a nation. The program has two distinctive features that align with CEE’s delivery strategy of providing both content and pedagogy: a 12‐lesson manual and a training component for service providers. The lessons in the manual focus on topics including scarcity, choice, opportunity cost, decision making, saving, spending, earning income, budgeting, taxes, and entrepreneurship. They are drawn from a range of sources, including CEE’s financial education series Financial Fitness for Life. All lessons have been modified from their original sources to better align to an after‐school setting. All lessons are hands‐on, keeping the students actively engaged with the content. One key feature is ECONObucks, which reward students for participating, being good citizens and correctly answering questions. During the lessons and at the conclusion of the program, students are provided with the opportunity to redeem their ECONObucks for prizes. ECONObucks both increase student participation and teach important money skills. The program is designed to be taught by after‐school service providers, with support from content experts. The service providers are connected to seasoned economic educators, who train providers on both the content and delivery, and then provide follow‐up support during initial implementation to ensure that service providers are comfortable with teaching the lessons.
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Table of Contents
Acknowledgements ............................................................................ 3
Introduction ....................................................................................... 4
Lesson Features .................................................................................. 6
ECONObucks ...................................................................................... 7
Lessons ............................................................................................... 9
Lesson 1 We Have Wants ................................................................ 9
Lesson 2 Scarcity ........................................................................... 23
Lesson 3 Choices, Costs and Benefits ............................................ 30
Lesson 4 Consumers, Producers and Resources ........................... 36
Lesson 5 Entrepreneurs in the Community and Advertising ......... 47
Lesson 6 Entrepreneurship and Problem‐Solving ......................... 62
Lesson 7 Entrepreneurship and Market Day ................................. 76
Lesson 8 Budgeting ....................................................................... 86
Lesson 9 Saving Your Money ......................................................... 96
Lesson 10 Government‐Provided Goods and Services ............... 104
Lesson 11 Market Day—Implementation ................................... 112
Lesson 12Market Day—Wrap‐up ................................................ 117
Word Wall Cards ............................................................................ 122
Children’s Literature ....................................................................... 133
5
Lesson Features
Question of the Day—Each lesson has a question of the day. Each question sets the focus
for a lesson. Questions of the day are introduced in Procedure Step 1 of each lesson; older
students are asked to answer the question of the day as a lesson assessment.
Word Wall Cards—Vocabulary is a critical part of learning economics and personal
finance. Each lesson introduces three to four concepts. Word Wall Cards are included for
each new vocabulary word. If space is available, these cards can be displayed on a Word
Wall for the duration of the 12 lessons.
Assessments—Each lesson has a short assessment. Because these materials will be used
by a range of students in kindergarten through Grade 5, two assessments are offered—
one for younger students and one for older students.
Preparation—All 12 lessons require materials preparation. The Materials section lays out
specific instructions on what is needed. A starburst to the left of the lesson title signals
that additional preparation is required beyond the recommended 30 minutes prep time
per lesson.
Market Day—Lesson 11 is the Market Day, in which students sell goods and services they
have produced to adults, family members, and one another. Preparation is required
before running the Market Day. Some lessons have an additional lesson component at the
end called Market Day Preparation. This section lays out for instructors what needs to be
done at various points during the 12 weeks to be ready for Market Day. In addition, any
handouts related to Market Day are identified with a black border. These include such
things as a parent letter, a Market Day timeline, and list of business ideas.
Age Levels—Lessons are designed for use with students in Grades K–5. To address this
range of grades, hands‐on activities are included throughout the lessons. These activities
were carefully selected for this purpose, and where appropriate, suggestions are given on
how to adapt them for use with students of different ages.
Lesson Order—Lessons 1–4 focus on economic concepts with particular attention to
wants, scarcity, and choice. Lessons 5–7 teach about entrepreneurship and include
preparation for Market Day. Personal finance content is taught in Lessons 8–10. The last
two lessons focus on setting up and running Market Day, determining if businesses made
a profit, and completing reflections on the experience.
6
ECONObucks
ECONObucksareusedasincentivesthroughoutthe12lessonsinNeverTooYoung:PersonalFinanceforYoungLearnerstoincreaseparticipationandmotivation.StudentsarerewardedwithECONObucksinavarietyofwaysforparticipating,beinggoodcitizens,completingwork,andansweringquestions.StudentscanredeemtheirECONObucksforprizesduringlessonsandattheconclusionofMarketDay.GettingStarted
StartbyduplicatingmultiplesheetsofECONObucksongreenpaper,ifpossible,andcuttingapartthebills.(Seethefollowingpage.)
Makesuretogiveeachstudentanenvelope,orhavethestudentscreatewalletsforstoringtheirECONObucks.Collecttheenvelopesorwalletsattheconclusionofeachlessontoeliminatethechancethatstudentswilllosetheirmoney.
UsingECONObucks
Touseasanincentiveprogram,simplygiveECONObuckstostudentswhoareparticipatinginactivities,beingmodelcitizens,correctlyansweringquestions,etc.
StudentsuseECONObucksearnedasproducerstopurchasematerialstomakeproductstosellandasconsumerstopurchasegoodsandservicesatMarketDay.
ForstudentstospendtheirECONObucks,setupatableofsmalltoys,candy,pencils,orstickers,andpriceeachiteminECONObucks.Beforeallowingstudentstoshop,remindthemthattheywillbeabletopurchaseadditionalitemsafterMarketDay.Letstudentschooseiftheywanttospendtheirmoneynoworsaveit.Thiswouldbeagreattimetoreviewopportunitycost.SalesheldduringtheLessons1‐10areoptional.ThefinalsaleinLesson12isacriticalpartoftheprogram.
Attheendofall12lessons,haveafinalsalegivingthestudentsonelastopportunitytospendtheirECONObucks.AnalternativeistoconductanauctionusingECONObucks.Priortobidding,havestudentscountthenumberofECONObuckstheyhave.AnotherapproachistohavestudentswritetheirnamesontheECONObucksattheconclusionoftheprogram.Placeenvelopesbyvariousprizes.HavestudentsplacetheirECONObucksintheenvelopesofprizestheywouldliketowin.DrawanECONObuckfromeachenvelopeandannouncethewinner.
UseECONObuckstoteachsimplebankingskills.Forinstance,givestudentsbankingregistersandteachthemtotracktheirincomeandexpensesthroughthelessons.Implementasavingsprogram(withtheteacheractingasthebank)andrewardstudentswith“interest”forsaving.
CreatenewsheetsofECONObucksusingdifferentdenominationstoteachadditionalmoneyskills.
7
8
Lesson1–WeHaveWants
QuestionoftheDay:Whydowehavetomakechoices? LessonComponents
Description
LessonDescription
Whenshoppingatastore,astudentmaysay“Iwantthis”toanadult.However,studentsmayalsowantlotsofotheritems,too!Studentswillidentifywantsandhowtheycanprioritizetheirwantstogainthemostsatisfaction.
Concepts Wants Choice Economics
Objectives Studentswillbeableto: Identifywhatawantis. Explainwhytheyhavetomakechoices. Explainwhyitisnecessarytoprioritizetheirwants.
TimeRequired
60minutes
Materials Visual1.1(QuestionoftheDay)–onecopyforinstructor Visual1.2(Song)–onecopypertwostudents Handout1.1(NicholasHasManyWants)–onecopyforinstructor WordWallCards–wants,choice,economics Coloredpencils,crayons,ormarkers Whiteboardorchalkboard Blankpaper–onesheetperstudent Pencils–oneperstudent
Procedure 1. DisplayVisual1.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.
2. Askstudentswhytheycan’thaveeverythingtheywant.(Answersmay
vary.)3. Write“Wants”ontheboard.4. Drawacirclearounditandincluderoomtowritestudents’responses
aroundtheword.5. Tellstudentsthatawantissomethingdesiredorwishedforlikea
newbike,avacation,orapet.Displaythe“wants”WordWallCard.6. Brainstormfivewantsandwritethemontheboardasaclass.
9
7. Distributeablankpieceofpapertoeachstudent.Havethemfoldthepaperintofoursections.Havethemdrawfourpicturesofwantstheycurrentlyhave,oneineachbox.Askstudentstoputtheirnamesonthebackoftheirpapers.
8. Discussthefollowing:
a. Canyouhaveallofyourwants?(Manywillsayno.)b. Whynot?(Parentswon’tbuythem,ortheydonothaveenoughtime
ormoney.)c. Becauseyoucan’thaveeverythingyouwant,whatdoyouhaveto
do?(Makeachoice.)
9. Tellstudentsthatmakingachoicemeansmakingadecisionwhenfacedwithtwoormorepossibilities.Displaythe“choice”WordWallCard.
10. Explainthatbecausetheycan’thaveeverythingtheywant,theymust
makeachoice.Tohelpthemmakeachoicetheyneedtoprioritizeorranktheirwants.
11. Tellthestudentsthattheyaregoingtorankorprioritizetheirfour
wants.Givethestudentsafewminutestoranktheirwants1–4byplacinga“1”nexttothepictureofthewanttheywouldmostliketohaveanda“4”nexttotheitemtheywouldwanttheleast.
12. Tellthestudentsyouarenowgoingtoreadthemastoryaboutsaving
forawant.Tellstudentsthatsavingmeanssettingmoneyasideforfutureuse.
13. ReadHandout1.1(NicholasHasManyWants).
Discussthefollowing:a. WhatweresomeofNicholas’swantsinthestory?(acandybar,
goldfish,ahamster)b. WhywasNicholassorryhehadboughtthecandybar?(Heateit,
andthenitwasgoneandhewasoutofmoney.)c. WhydidDadsayNicholashadtomakeadecision?(Hehadlotsof
wants,butnotalotofmoney.)d. WhatspendingchoicemustNicholasmake?(Hemustdecideifhe
wantstobuyahamsteroragoldfish.)e. HaveanyofyouhadtomakeadecisionlikeNicholas?(Answers
mayvary.)f. WhatcouldNicholasdotosavemoneytoachievehisgoalofbuying
apet?(Savehisallowance;openalemonadestand.)
10
14. Tellthestudentstolookattheirwantpictures.Explaintothemthatoverthenextfewweekstheyaregoingtostartlearningaboutsomethingcalledeconomics.Displaythe“economics”WordWallCard.Tellstudentsthateconomicsisastudyofhowpeoplesatisfytheirwantsthroughchoicestheymake.
Closure 1.Discussthefollowing:
a. Whydowehavetomakechoicesamongourwants?(becausewecan’thaveeverythingwewant)
b. Whycan’tyouhaveallofyourwants?(notenoughtime,notenoughmoney)
c. Howdoyoumakeachoiceamongyourwants?(Answersmayvary.)d. Whyisitimportanttorankyourwants?(becauseithelpsyoumake
aninformeddecisiononwhatyouwantthemost)e. Whatiseconomics?(learninghowpeoplesatisfytheirwants
throughchoicestheymake)
2.DisplayVisual1.2(Song)orhandoutcopiestostudents.3.Explaintothestudentsthattheywillbesingingasongcalled“I’veGotMoney”tothetuneof“AreYouSleeping,BrotherJohn.”
4.Singthesonganddiscussthefollowing:
a. Whatwerethewantsinthesong?(Savetogetsomethinglater,somethingbig;spendtogetsomethingnow,somethingsmall;ordosomeofboth.)
b. Whywasitnecessarytomakeachoiceonwhattodowiththemoney?(notenoughmoneytospendandsavingallofit)
c. Wouldyouspend,save,ordosomeofboth?(Answerswillvary.)
Assessment 1. Olderstudents–HavestudentswriteananswertotheQuestionoftheDay.
2. Youngerstudents–Readthefollowingstory:
Nicholas’ssisterAnnahasonedollar.Shegoestothetoystoreandseestwothingsshewantstobuy.Bothcostonedollareach.
Then,askstudentsthefollowing:a. CanAnnahavebothitems?(no)b. Whynot?(Shedoesnothaveenoughmoney.)c. WhatdoesAnnahavetodo?(Makeachoice.)d. HowcanAnnamakeagoodchoice?(Rankherwants.)
Sources FinancialFitnessforLife:StudentStorybookK–2,CouncilforEconomicEducation,2010
FinancialFitnessforLife:TeacherGuideK–2,CouncilforEconomicEducation,2010
11
Visual1.1
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Visual1.2–Song
I’veGotMoneyLyricsThefollowingisasongaboutdecisionsconcerningspendingandsaving.
Tune:AreYouSleeping,BrotherJohn
I’vegotMoney,I’vegotMoney,WhatshouldIdo?WhatshouldIdo?
Imustmakeachoice,Imustmakeachoice,
Spendorsave,Spendorsave.
I’vegotMoney,I’vegotMoney,Icouldspend,Icouldspend,
Gettingsomethingnow,Gettingsomethingnow,
Somethingsmall,Somethingsmall.
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Visual1.2(cont.)–Song
I’vegotMoney,I’vegotMoney,Icouldsave,Icouldsave,
Gettingsomethinglater,Gettingsomethinglater,
Somethingbig,Somethingbig.
I’vegotMoney,I’vegotMoney,WhatshouldIdo?WhatshouldIdo?Spendalittlenow,Spendalittlenow,Savesome,too!Savesome,too!
14
56 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
15
Mom, Dad, Christopher and Nicholas were sitting at the dinner table
talking about the day and what everyone had done. Nicholas told
Dad about going to the grocery store with Mom and Christopher.
He mentioned that he had bought a candy bar with some of his birthday money,
and he had eaten the candy on the way home.
Dad asked, “Well, have you decided what to do with the rest of your money?”
Nicholas shook his head. “No, I haven’t,” he said. “I’ve been dreaming about all
the things I want to buy. I want to go to the school carnival. I want to see the new
movie at the theater. I would like to buy some new baseball cards for my collection,
but I think I really, really want a hamster.”
“Sounds to me like you have a problem, son,” Dad said. “You have a lot of
wants but not a lot of money. You satisfied one of your wants when you bought that
candy bar, but now you have even more wants.”
Story 8
Nicholas Has Many Wants
57FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
16
58 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
17
“Yes, I really wanted that candy bar this morning,” Nicholas said. “But now I’m
sorry I bought it, because it’s gone, and so is the money!”
“And now you want a lot of things,” Dad said. “You want to go places and do
things, you want baseball cards, and you want a hamster. You are really going to
have to make some choices.”
Christopher interrupted, “Oh boy! We're going to get a hamster! Yea! Yea!”
“Now wait a minute, Christopher,” Nicholas said. “This isn’t your money, and it
isn’t your decision. I haven’t made up my mind yet.”
Dad asked, “What makes you want a hamster so much? You’ve been talking
about this for quite a while.”
“Brian has a hamster, and he’s always telling me how much fun it is to play with
Scamper,” said Nicholas.
“Is that why you want a hamster—because Brian has one? Do you know anything
about hamsters?” Dad asked.
59FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
18
60 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
19
“Well, I know that Scamper eats out of Brian’s hand,” Nicholas said. “And he
plays in his cage, and he has an exercise ball that he runs around in. Brian says the
whole family laughs at him and enjoys watching him. Scamper even stores food in
his cheeks … kind of like Christopher does. Only Scamper’s a lot cuter!” Nicholas
chuckled as he looked at Christopher, and Christopher scowled back at him.
Dad replied, “Nicholas, don’t tease your brother. I know you want a hamster, but
before you make a decision you need to think about all the things a hamster needs.
You will have to take care of the hamster and feed it. You said Scamper has a cage
and an exercise ball. What else does a hamster need to have? You should find out
more about hamsters before you make a decision.”
Nicholas looked at Mom. “Will you take me to the pet store some time,” he
asked, “so I can find out more about hamsters?”
“Sure,” Mom said. “Maybe we could go tomorrow afternoon.”
61FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
20
The next day as Mom and the boys approached the pet store, Christopher ex-
claimed, “Oh, look at the picture of the pretty fish. What kind is it? What does the
sign say?”
“It says S-A-L-E, and that spells sale,” Mom answered, pointing to the letters.
“The sign says that goldfish are on sale for a special price. And if you buy one, you
get one free.”
“You know, Mom, goldfish might be fun,” Nicholas said. “And they wouldn’t
cost very much either. Maybe that’s what I’ll get!”
“But Nicholas,” Mom said as they entered the store, “you told us last night that
you wanted a hamster. Now this afternoon you want goldfish. You don’t have
enough money to buy a hamster and goldfish. Are you sure you’re ready to make a
decision?"
Just then a sales clerk approached them. “Hello. How can I help you?” he asked.
“I came here to find out what a hamster costs," Nicholas replied. He hesitated
and then said, "But now I don’t know whether I want a hamster or goldfish. Making
money choices is pretty hard. My wants just keep going on and on, but my money
doesn’t!”
Nicholas knew he had to make a decision.
62 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
21
63FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
22
Lesson2–Scarcity
QuestionoftheDay:Whatisscarcity?LessonComponents
Description
LessonDescription
Studentswilllearnaboutgoodsandservicesandwhytheycan’thaveallthegoodsandservicestheywant.Peopleexperiencescarcityofgoodsandservicesthroughouttheirdailylives.Throughactivities,studentswilllearnthatscarcityrequiresthemtomakechoices.
Concepts Goods Services Scarcity
Objectives Studentswillbeableto: Defineagoodasanobjectthatsatisfiesaperson’swants
(somethingthatcanbetouched). Defineaserviceasanactionthatsatisfiesaperson’swants
(somethingsomeonedoesforyou). Definescarcityasnotenoughtosatisfyeveryone’swants. Giveexamplesofscarcity. Explainwhyscarcityalwaysrequiresapersontomakeachoice.
TimeRequired
60minutes
Materials
Visual2.1(QuestionoftheDay)–onefortheinstructor Handout2.1(Wheels)–cutapart,enoughcopiesforfourwheelsper
student Handout2.2(NotEnoughWheels!)–onecopyperstudent WordWallCards–goods,services,scarcity Chalkboardorwhiteboard Aninexpensiveitemsuchasaspecialpenorcandy Glue Musicsource Chairs–oneperstudent
Procedure 1. DisplayVisual2.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.
2. Thethingswewantarecalledgoodsandservices.Displaythe“goods”
and“services”WordWallCards.Drawtwocolumnsontheboard;labelonecolumn“Goods”andtheother“Services.”
3. Explaintothestudentsthatgoodsarethingsthatwecantouch,suchas
itemsinaclassroom.Askseveralstudentstogiveexamplesofgoods.(food,shoes,books,games,etc.)Writethesuggestionsinthe“Goods”column.
23
4. Explaintothestudentsthatservicesarethingsthatsomeoneelsedoes
foryou.Askseveralstudentstonamesomeservices.WritethesesuggestionsintheServicescolumn.(amechanicfixingyourcar,Momcleaningyourbedroom,Scoutleadergiveninstructions,policeofficerdirectingtraffic,etc.)
5. Askstudentsiftheycanhaveeverythingtheywant.(no)Tellthe
studentsthatthereasontheycan’thaveeverythingtheywantisduetoscarcity.Displaythe“scarcity”WordWallCard.
6. Tellstudentsthatscarcitymeansnotenoughofsomethingtosatisfy
everyone’swants.Tellstudentsthereisneverenoughtimetodoallthethingstheywouldliketodoormoneytobuyallthethingstheywouldliketohave.Becauseofscarcity,peoplemustconstantlymakechoicesaboutwhattodoorhowtousetheirtimeormoney.Askstudentswhatchoicemeans.(havingtomakeadecisionbetweentwoormorepossibilities)
7. Askthestudentswhatkindsofthingstheycanthinkofthatmightbe
scarce.(moneytobuyicecreamwhenthetruckcomesthroughtheneighborhood,schoolcomputersforeveryonewhowantstouseone,landforanewplayground,treestomakeallofourpaperproducts,timetoplaysocceranddohomeworkafterschool,etc.)
8. Explaintothestudentsthatsometimestherecanbeascarcityof
somethingyoudon’tthinkisscarce.Holduptheitemyoubrought(somethinginexpensivesuchasaspecialpenorpenciloracandybar)thatstudentsmightliketohave.Askstudents:a. Howmanyofyouwouldlikethisitem?(Moststudentswillwantthe
item.)b. Whatistheproblemtheclassfaces?(notenoughforeveryonewho
wantsone)c. Whatisthisproblemcalled?(scarcity)
9. Havestudentsgivesuggestionsabouthowtodecidewhoshouldgetthescarceitem.(Possibleanswersincludelottery,astudentwiththebestparticipationorbehavior,aclassleaderorrolemodel,anauctionusingECONObucks,divideitup,taketurnswithit,etc.)Writethesuggestionsontheboard.Allowstudentstovoteontheallocationmethodtheythinkisbest,andusethewinningmethodtodeterminewhowillgetthescarcegood.
24
10. Distributetoeachstudentglue,acopyofHandout2.2(NotEnough
Wheels!)andfourwheelsfromHandout2.1(Wheels).Explainthatthecirclesarewheels.Pointoutthatlotsoftoysandtypesoftransportationhavewheels.
11. Discussthefollowing:
a. WhatisthetotalnumberofwheelsthatwouldbeneededforalloftheitemspicturedinHandout2.2?(20)
b. Howmanywheelsdoyouhave?(4)c. Whatisscarce?(wheels)
12. Tellstudentsthatbecauseofscarcity,theywillhavetomakechoices.Tellstudentstochoosehowtheywouldliketousetheirwheelsandthengluetheirwheelsintoplaceontheactivitysheet.Pointoutthattheymaychoosemorethanoneofanitem(forexample,twoscootersorfourunicycles).
13. Whenthestudentshavefinishedgluing,askifanyonechosetheroller
skate.(no)Whynot?(can’tuseasinglerollerskate)Ifyouwantedrollerskates,whatcouldyoudotosolvethisproblem?(Youandafriendcouldbothchoosetoputwheelsonskatesandthensharethepair.)
14. Havestudentstellhowtheyusedtheirwheelsandwhy.(pickedfavorite
ormostuseful;perhapswantedmostitemspossiblesochosebicycleortricycleandunicycle,ortwoscooters,orfourunicycles)Aftereveryonehashadaturn,askifeveryonemadethesamechoice.(no)Whynot?(Individualshavedifferentwants.)
15. Playmusicalchairs.Attheendofthegame,ask:
a. Dideveryonegetachair?(no)b. Whynot?(becausechairskeptdisappearing;ascarcityofchairs)c. Ifthereisnotenoughofsomethingforeveryonewhowantsit,what
dowecallthisproblem?(scarcity)
16. Rewardthewinner(s)withECONObucks.
Closure 1. Discussthefollowing:a. Whataregoods?(objectsthatsatisfyaperson’swants;something
thatcanbetouched)b. Whatareservices?(anactionthatsatisfiesaperson’swants;
somethingsomeonedoesforyou)c. Whatisscarcity?(notenoughofsomethingtosatisfyeveryone’s
wants)d. Namethingsthatarescarce.(time,money,food,etc.)
25
Assessment 1. Olderstudents–HavestudentswriteananswertotheQuestionofthe
Day.2. Youngerstudents–Readthefollowingstorytothestudents:
A2ndgradeclasshasthreefieldtripsplanned.Theyareplanningtogotoathemepark,asciencemuseum,andthezoo.Oneday,theprincipalannouncesthereareonlyenoughbusesforonetrip.Thestudentsmustnowchoosewhattriptheywanttogoon.
Then,askstudentsthefollowing:a.Whatisscarce?(buses)b.Howdoyouthinktheclassmightchoose?(Answerswillvary.)
Source StrategiesforTeachingEconomics,PrimaryLevel(Grades1–3),Joint
CouncilonEconomicEducation,1977
26
Visual2.1
27
Handout2.1–Wheels
28
Handout2.2–NotEnoughWheels!
Name_____________________________
29
Lesson3–Choices,Costs,andBenefits
QuestionoftheDay:HowdoImakethebestchoice?
LessonComponents
Description
LessonDescription
Studentswilllearnthatlifeisallaboutchoices.Studentswillexplorehowpeoplemakechoicesbyevaluatingtheopportunitycostsoftheirdecisions.Makingchoicesisnever‐endingandnevereasy,butnecessarybecauseourresourcesarealwayslimited.Youmustweighthepros(benefits)andcons(costs)tomakethebestpossibledecisions.
Concepts
Benefits Costs OpportunityCost
Objectives
Studentswillbeableto: Identifychoicespeoplemakeeveryday. Definecostsasthingsthatareunfavorabletoadecisionmaker. Defineopportunitycostasthenextbestthinggivenupwhen
someonemakesachoice. Definebenefitsasthingsthatarefavorabletoadecisionmaker. Analyzecostsandbenefitswhenmakingachoice. Identifytheopportunitycostofachoice.
TimeRequired
60minutes
Materials
Visual3.1(QuestionoftheDay)–onecopyforinstructor Handout3.1(BenefitsandCostsGrid)–onecopypergroup Handout3.2(OpportunityCostScenarioCards)–onecopy,cut
apartandplacedinacontainer WordWallCards–benefits,costs,opportunitycost Pencils–oneperstudent Whitepaper–onesheetperstudent
Procedure
1. DisplayVisual3.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthislessonwillhelpthemanswerthequestion.
2. Readthefollowingintroductiontothestudents:
Decisions,decisions!Everythinginlifeinvolvesmakingdecisions.WhatshouldIweartoday?WhatshouldIhaveforbreakfast?ShouldIstudymoreforthetest?
Askstudentswhatothersituationstheycanthinkofthatrequiremakingchoices(Answerswillvarybutmayinclude:WhatshouldIhaveforlunch?ShouldIspendmymoneyorsaveit?ShouldIgotoamoviewithfamilyorspendtimeplayingatafriend’shouse?)
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3. Makethefollowingpoints:
Choicesaremadebypeoplebasedupontheirtastes,theirincome,andthepricesofgoodsorservices.
Everydecisionthatyoumakewillhavesomethingsthataregood,calledbenefits,andsomethingsthatmightnotbesogood,calledcosts.Benefitsarethingsthatarefavorabletoadecisionmaker,andcostsarethingsthatareunfavorabletoadecisionmaker.Displaythe“benefits”and“costs”WordWallCards.
Whenmakingachoice,ifyoucanimmediatelythinkoflotsofcosts,youmostlikelywon’tmakethatchoice.Forinstance,ifyoudon’tlikerollercoastersandtheweatherisrainy,youmightdecidenottogotothecarnival.Ontheotherhand,youneedtolookatthebenefitsofgoingtothecarnival.Maybeyouwouldenjoybeingwithyourfriendsandplayingthearcadegamesatthecarnival,andmaybeyourmomhasofferedtopay.
Youmustweighthecostsandbenefitstohelpyoudecidewhatyouwanttodo.Oftenithelpstowritedownthecostsandbenefitssoyoucanactuallyseewhichlistislonger.
4. Askstudentshowtheymakechoices.Havestudentssuggestwaysto
helpmakedecisions.Giveexamplestopromptresponses.Forexample,youwanttorideyourbikeandreadabook,butit’sraining.Whatwouldinfluenceyourchoice?(weather)
5. Dividethestudentsintogroupsofthree.(Youmightwishtodivide
accordingtogradelevel.)Eachgroupmustselectarecorder.DistributeonecopyofHandout3.1(BenefitsandCostsGrid)pergroup.Tellstudentstolistthecostsandbenefitsforeachalternativeanddeterminewhichactivitytheywilldothissummerbyratingeachactivity1–4with“1”beingtheirfirstchoiceand“4”beingtheirlastchoice.Pointoutthatthereisaspaceforthemtowriteanactivitytheywouldliketodothatisn’tlisted.Havegroupssharetheirdecisions.Askstudentswhyallgroupsdidnotmakethesamechoice.(Differentpeoplehavedifferentinterestsandtastes;groupshavedifferentcriteria.)
6. Askeachgroupwhattheirsecondchoicewouldhavebeen.Explain
thatyoursecondchoicehasaspecialname.Itiscalledyouropportunitycost.Explainthatopportunitycostisyournextbestalternativeyougiveup.Itisyoursecondchoice.Yourfirstchoicehascostyoutheopportunitytodoyoursecondchoice.Displaythe“opportunitycost”WordWallCard.
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7. Distributeapieceofplainwhitepapertoeachstudent.Havestudentswritedownordrawpicturesoftheirthreefavoriteactivitiestodoafterschool.Havethemputa“1”bytheirmostfavorite,a“2”bytheirsecondfavorite,anda“3”bytheirthirdfavoriteactivity.Tellthemtodrawacirclearoundtheirfavoritechoiceanddrawaboxaroundtheopportunitycost(onlychoice“2”).Havethemeachshare,statingtheirfirstchoiceandtheiropportunitycost.
Closure
1.Discussthefollowing:a. Whatarecosts?(thingsthatareunfavorabletothedecisionmaker,
lossorsacrificenecessarytoachieveorobtainsomething)b. Whatarebenefits?(thingsthatarefavorabletoadecisionmaker)c. Whatisopportunitycost?(thenextbestalternativegivenupwhen
achoiceismade)Assessment 1.Olderstudents–HavestudentswriteananswertotheQuestionofthe
Day.2.Youngerstudents–Handeachstudentaslipofpaperfromthe
containerthatcontainsscenariosfromHandout3.2(OpportunityCostScenarioCards).Eachstudentwillreadthescenario,statethechoice,andthenselectanotherstudenttotellwhattheopportunitycostisinthatscenario.Continueuntilallslipshavebeenread.
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Visual3.1
33
Handout3.1–BenefitsandCostsGrid
Names___________________________________________________
Problem:WhatactivitydoIwanttodothissummer?
Activities Costs
Benefits
Basedonyourcostsandbenefits,numberyourchoices1,2,3,4
Sportsteam
Swimming
Camping
Chooseyourown
____________________
Decision___________________________________________________________________________
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Handout3.2–OpportunityCostScenarioCards
YouchoosetogotothemovieswithfamilyinsteadofgoingtoMcDonald’swith
yourfriends.
Johndecidedtoeatahamburgerinsteadofahotdog.
Theblueshirtwascool,butMatthewdecidedtogettheyellowone.
Danalovespuddle‐splashing,butdecidedtousehistimemakingmudsculptures.
Lesreallywantedanewvideogame,butusedhismoneytobuythebikehelmetthatheneeded.
IfRyanbuyssneakers,hewon’tbeabletoaffordanewfootballjersey.
IfIbuyalessexpensivebike,Icouldsavetheextramoney.
Jaimewantstwonewbooks,Ripley’sBelieveItorNotandachoose‐your‐own‐endingmystery.HecouldusesomefactsfromRipley’stowritehisreportfor
school.
Mackenziereallyfeelslikesleddingandswimming,butitis20degreesoutside!
Samwouldliketobeoutsideplaying,butheknowshehasasciencetesttomorrow.
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Lesson4–Consumers,Producers,andResources
QuestionsoftheDay:Howarepeoplebothproducersandconsumers?Whatarehumanandcapitalresources?
LessonComponents
Description
LessonDescription
Peoplearebothproducersandconsumers.Whenpeopleareprovidinglabor,theyarehumanresources,andthetoolsandmachinestheyusetoproducegoodsorservicesarecapitalresources.Inthislesson,studentswillbegroupedintosmallcompaniestoproduceasmanybirthdaydecorationsaspossiblewithscarceresources.
Concepts Consumer Producer HumanResources CapitalResources
Objectives Studentswillbeableto: Defineaconsumerasapersonwhousesgoodsandservices. Defineaproducerassomeonewhomakesgoodsorprovidesa
service. Givethreeexamplesofhumanresourcesandcapitalresources.
TimeRequired
60minutes(plusadditionalpreptime)
Materials Visuals4.1aand4.1b(QuestionsoftheDay)–onecopyforinstructor
Handout4.1(ProductionInstructions)–onecopypergroup Handout4.2(Patterns)–cutapart,onesetofpatternsper
group Handout4.3(ClassifyingResources)–onecopyperstudent Handout4.4(ClassifyingResourcesAnswerKey)–onecopyfor
instructor WordWallCards–consumer,producer,humanresources,
capitalresources Whiteboardorchalkboard Foreachteam:
Threepencils Threepairsofscissorsperteam Fivesheetseachofred,blue,yellowandgreen
constructionpaper Tensandwichbags Onepaperlunchbag
WatchortimerProcedure 1. DisplayVisuals4.1aand4.1b(QuestionsoftheDay)totheclass.
Readthequestionsandtellstudentsthatthislessonwillhelpthem
REQUIRES ADDITIONAL PREP TIME
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answerthequestions.2. Askstudentsthefollowing:
a. Whatisaconsumer?(apersonwhobuysand/orusesgoodsandservicestosatisfytheperson’swants)Displaythe“consumer”WordWallCard.
b. Whataresomeexamplesofthingsyoudoasaconsumer?(Writewithapencil,eatlunch,buyclothes,etc.)
c. Whatisaproducer?(someonewhomakesgoodsorprovidesaservice)Displaythe“producer”WordWallCard.
d. Whataresomeexamplesofthingsyoudoasaproducer?(Answersmightincludecleaningyourbedroom,mowinglawns,makinglemonadetosell,helpingyourneighborcarrygroceries,etc.)
3. Write“BirthdayParty”ontheboard.Askstudentswhatcomesto
mindwhentheythinkofabirthdayparty;writethesuggestionsontheboard.(Answerswillvary.)
4. Dividetheclassintogroupsoffour.Giveeachgroupthreepencils,
threepairsofscissors,onesetoffourpatterns(Handout4.2),andfivesheetseachofred,green,blueandyellowpaper,apaperlunchbag,and10sandwichbags.
5. Explainthattheyareallgoingtobeproducers.Eachgroupisa
smallcompanythatwillbeproducingbirthdaydecorations.Theyaregoingtoproduceasmanyitemsastheycanin20minutes.
6. Showthecut‐outbirthdaypartypatternsandpassoutHandout4.1
(ProductionInstructions).Readtheinstructionstothestudents.Tellthestudentsthatwhenmakingaproduct,qualityismoreimportantthanquantity,soitisveryimportanttocutouteachdecorationverycarefullyandoneatatimesothateachcompletedproducthassmoothedges.
7. Informthestudentstheyhave20minutestoproducetheir
assigneditems.Startproduction.8. Stopproductionafter10minutes,andtellstudentstheyhaveused
halftheallottedtime.Givethestudentstwominutestoinspecttheirworktomakesureitisofgoodqualityandtoreorganizetheircompaniestobemoreefficient.
9. Tellproducerstheyhave10moreminutes.Resumeproduction.
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10. Stopproductionafter10minutes.Haveproducersplaceallthe
completedsandwichbagscontainingdecorationsintothepaperbagandlabelthebagwiththestudents’names.Collectallcompletedbags.Collectallunusedmaterials.
11. Givethecompletedbagstoapanelofjudges(sittingawayfromthe
group)whowillinspectthematerialstomakesuretheyareneatandcomplete.Givethegrouponepointforeachcorrectandneatpacket.
12. Explaintothestudentsthatpeoplewhodothementalandphysical
worktoproducegoodsorservicesarecalledhumanresources.Displaythe“humanresources”WordWallCard.
13. Explaintothestudentsthatgoodsthatareproducedandusedto
produceothergoodsandservicesarecalledcapitalresources.Examplesaretools,equipment,andfactories.Pointouttostudentsthatcapitalresourcesarenotusedupintheproductionprocess.Theyareusedoverandover.Displaythe“capitalresources”WordWallCard.
14. Discussthefollowing:
a. Whowerethehumanresourceswhenmakingthedecorations?(thestudents)
b. Whatcapitalresourcesortoolsdidyouusetomakethedecorations?(scissors,patterns,andpencils)
c. Howmanygroupshadenoughcoloredpapertoproduce10ofeachofthedecorations?(all)
d. Howmanygroupshadenoughoftheothersuppliesforeachpersontoproducecompletesets?(none)
e. Whyweren’tyouabletoproduce10qualitysets?(Answersmightincludenotenoughworkers;notenoughresourcesforeverypersontodoeveryjob;inordertogettheneatestproduct,youhadtomatchaperson’sskillswithhisjob.)
f. Whatwasscarceinthisactivity?(humanandcapitalresources,space)
g. Howdidyourcompaniessolvetheseproblems?(Answerswillvary,butmightincludecreatinganassemblylineinordertomakesuretheycouldcompletethesets.)
h. Howcouldyouhaveincreasedyourproduction?(morecapitalandhumanresources)
i. Howcouldyoubeaconsumerinthisactivity?(whenyoupurchasethedecorationsfromthestore)
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15. Afterthejudging,announcethewinningproductionteam.YoucouldpaythemwithECONObucks.
Closure 1.Discussthefollowing:a. Whatisaconsumer?(apersonwhousesgoodsandservicessuch
assomeonegettingahaircutorbuyinggroceries)b. Whatisaproducer?(someonewhomakesgoodsorprovidesa
servicesuchasateacherordoctor)c. Whatarehumanresources?(peoplewhodothementaland
physicalworktoproducegoodsandservices)Giveanexample.(Answerscouldincludeteachers,Scoutleaders,etc.)
d. Whatarecapitalresources?(goodsthatareproducedandusedtomakeothergoodsandservices)Giveanexample.(Answerscouldincludeanytools,equipment,orphysicalplants.)
Assessment 1. Olderstudents–HavestudentswriteanswerstotheQuestionsof
theDay.2. Youngerstudents–DistributeonecopyofHandout4.3(Classifying
Resources)toeachstudent.Workingindependently,studentswilllisthumanandcapitalresourcesneededforcertainbusinesses.Shareanswersuponcompletion.
Sources Focus:Grades3–5Economics,NationalCouncilonEconomic
Education,2005
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Visual4.1a
40
Visual4.1b
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Handout4.1–ProductionInstructionsYourtaskistomake10setsofpartydecorationsandpackagethem.1.Tracepatternsoncoloredpaperasfollows:
Red:partyhat Green:gift Blue:balloon Yellow:cake
2.Cutoutthetraceddesignsforeachdecoration.Cutonlyoneatatimetomakesureyouarecuttingneatly.3.UseapenciltoneatlyprintHappyBirthday!oneachcut‐out.4.Placeonesetofdecorations(oneeachofhat,gift,balloon,andcake)inasandwichbagandclosethebag.5.Produceasmanysetsasyoucanin20minutes.REMEMBER:QUALITYISMOREIMPORTANTTHANQUANTITY.
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Handout 4.2 - Patterns
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Handout 4.2 - Patterns
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Handout4.3–ClassifyingResources
Name_____________________________
WritealltheresourceslistedintheWordBankinthecorrectcategoriesbelow.Business
Human
Capital
Lawncare
Lemonadestand
Dogsitter
Word Bank walking shoes pitcher table long-handled spoon gas can leash person supplying care lemon squeezer person mowing lawn mower salesperson person making lemonade food dishes chair lawn trimmer
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Handout4.4–ClassifyingResourcesName___AnswerKey________ WritealltheresourceslistedintheWordBankinthecorrectcategoriesbelow.Business
Human
Capital
Lawncare
personmowing
lawnmowergascanlawntrimmer
Lemonadestand
personmakinglemonadesalesperson
long‐handledspoonpitcherlemonsqueezertablechair
Dogsitter
personsupplyingcare
walkingshoesfooddishesleash
Word Bank walking shoes pitcher table long-handled spoon gas can leash person supplying care lemon squeezer person mowing lawn mower salesperson person making lemonade food dishes chair lawn trimmer
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Lesson5–EntrepreneursintheCommunityandAdvertising
QuestionsoftheDay:Whatisanentrepreneur?Howarebusinessesinterdependent?LessonComponents
Description
LessonDescription
Thislessonwillhelpstudentsseethatbeinganentrepreneurandstartingabusinessisaviableoptionforearningincomeandthatbusinessesareinterdependent.Theywilllearnhowentrepreneursfamiliarizepeoplewiththeirbusinessesthroughtheuseoflogos,slogans,andadvertising.Byexaminingadvertisements,studentswilllearnhowcompaniesattempttoinfluenceconsumerchoices.
Concepts Entrepreneur Interdependence Logo Slogan Advertising
Objective Studentswillbeableto: Defineanentrepreneurasapersonwhostartsanewbusiness. Giveanexampleofhowbusinessesareinterdependent. Explainhowbusinessesaffectoneanotherandthecommunity. Explainwhybusinessesadvertise.
TimeRequired
60minutes
Materials
Visual5.1aand5.1b(QuestionsoftheDay)–oneeachfortheinstructor
Visuals5.2–5.11(Logos)–cutapart,oneofeachfortheinstructor Handout5.1(Script)–onefortheinstructor Handout5.2(NamingaBusiness)–onecopyperstudent Handout5.3(ItAll“Ads”Up)–onecopypergroupoftwoorthree
students Handout5.4(YoungAssessment)–cutapart,onecopyperstudent WordWallCards–entrepreneur,interdependence,logo,slogan,
advertising Ballofyarn Advertisementscutfromnewspapersandmagazines–oneper
groupProcedure 1. DisplayVisuals5.1aand5.1b(QuestionsoftheDay)totheclass.Read
thequestionsandtellstudentsthatthislessonwillhelpthemanswerthequestions.
2. Explaintothestudentsthatinordertohaveastrongcommunity,
businessesandconsumersmustdependoneachother.
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3. Haveeveryonesitinacircleonthefloor,andexplainthatthiscircle
representsacommunity.4. Handtheballofyarntoanystudent.5. BeginreadingHandout5.1(Script),substitutingthenamesofyour
studentsfortheunderlinednames,inrandomorder(nottheorderinwhichtheyareseated).Read(a),substitutingthenameofthestudentholdingtheballofyarn.
6. Read(b);thestudentwiththeballofyarnholdsontotheendand
rollstheballtothepersonnamedin(b).7. Thepersonnamedin(b)holdsontotheyarnandrollstheballtothe
personnamedin(c).8. Continuereadinguntileveryonehashadaturntotosstheyarn.Add
extralinestothescriptifmoreareneededinorderforeveryonetohaveaturn.Theballofyarnwillendupwiththepersonwhostartedtheweb.
9. Instructstudentstoobservethewebthathasbeencreatedwiththe
yarn.Callonastudenttosummarizewhatthewebshows.(Inasuccessfulcommunity,businessesandconsumersareconnectedandtheydependononeanother.)
10. Discussthefollowing:
a. Howdobusinessesdependononeanother?(Businessesbuysuppliesfromotherbusinesses;employeesspendtheirpaychecksinotherstores;etc.)
b. Whathappenstothecommunityifabusinessfailsorcloses?(Employeeslosejobsandthenwon’tbeabletobuyproductsorservicesfromotherbusinesses.)
11. Explaintothestudentsthatwhenbusinessesandpeopledependon
eachother,itiscalledinterdependence.Displaythe“interdependence”WordWallCard.
12. Explaintothestudentsthatmostpeopleareemployedbyacompany
oranindividual,butsomepeopledecidetheydonotwanttoworkforsomeoneelse.Theydecidethey’dliketobetheirownbossandwillstarttheirownbusiness.Apersonwhostartsanewbusinessiscalledanentrepreneur(pronouncedahntruhprenyour).Displaythe“entrepreneur”WordWallCard.
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13. Explainthatentrepreneurscangetideasforbusinessesinmanyways.
Theyrecognizeopportunities,suchasseeingaproductthatcouldbemadebetterorinadifferentwayorcomingupwithawholenewproductthatnooneelsehasthoughtof.
14. Askthestudentswhatskillsortalentswouldbeneededinordertobe
asuccessfulentrepreneur.(creativity,patience,organization,problemsolving,competitivespirit,energy,etc.)
15. Askthestudentshowtheyidentifyorknowaboutbusinessesintheir
community.(signs,businessnames,logos,slogans)16. Explaintothestudentsthatabusinessoftenhasaclevernamethat
willgiveacluetotheproductsorservicesthebusinessoffers.17. DistributeHandout5.2(NamingaBusiness).Completethepageasa
classorinpairs.18. Explaintothestudentsthatbusinessescansometimesbeidentified
justbyusingasymbolcalledalogoorbyacatchyphrasecalledaslogan.Displaythe“logo”and“slogan”WordWallCards.
19. DisplayVisuals5.2–5.11(Logos)andhavestudentsidentifythe
companies.(5.2,Disney;5.3,Apple;5.4,Chevrolet;5.5,McDonald’s;5.6,Nike;5.7,Domino’s;5.8,Pepsi;5.9,Microsoft;5.10,Energizer;5.11,Converse)
20. Readthefollowingsloganstotheclass.Askstudentsiftheycan
identifythebusiness. It’sthecheesiest!(KraftMacaroniandCheese) Justdoit!(Nike) Goodmoodfood(Arby’s) It’stherealthing(Coca‐Cola) Thequicker‐picker‐upper(Bountypapertowels) Finger‐lickin’good(KFC–KentuckyFriedChicken) Meltsinyourmouth,notinyourhand(M&Ms)
21. Companiesspendalotofmoneyonadvertisingsothatpeoplewillgettoknowabouttheirproductsandservices.Displaythe“advertising”WordWallCard.Explainthatadvertisingiswhencompaniesuseadvertisementssuchaspublicnotices,displays,orpresentationstopromotethesaleofgoodsorservices. Askstudentswheretheyseeadvertisements.(newspapers,online,television,billboards,flyers,mailings)Explaintothestudentsthatmanyofour
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wantsareactuallyinfluencedbyadvertising.Asconsumers,people,includingyoungpeople,canbenefitbylearningtocriticallyexamineadvertisements.
22. Discussthefollowing:
a. Cansomeonedescribeacommercialyouhaveseenontelevisionlately?(Answerswillvary.)
b. Didtheadvertisementmakeyouwantthisitem?Whyorwhynot?(Answerswillvary.)
23. Note:Thefollowingactivityisgearedtoolderstudents.Youmight
prefertopartneranolderstudentwithayoungerstudentorcompletetheactivityasawholegroup.
Dividetheclassintogroupsoftwoorthreestudents.GiveeachgrouponeadvertisementandonecopyofHandout5.3(ItAll“Ads”Up).Havegroupscompletethequestionsandsharewiththeclass.
Closure 1. Discussthefollowing:
a. Whatisanentrepreneur?(apersonwhostartsanewbusiness)b. Howarebusinessesinterdependent?(Theydependoneachother
fortheirsupplies;employeesspendincomeatotherbusinesses;etc.)c. Howdobusinessesaffectoneanotherandthecommunity?
(Businessesgivepeoplejobs;peoplearethenabletospendtheirearningsinotherplaces.Whenabusinesscloses,peoplelosejobs.Peoplehavelessmoneytospend,puttingotherbusinessesinjeopardy.)
d. Whyisadvertisingimportantforbusinesses?(Throughadvertising,includingtheuseofcatchyslogansandlogos,peoplebecomefamiliarwithabusiness’sproducts.)
Assessment 1. Olderstudents–HavestudentswriteanswerstotheQuestionsofthe
Day.2. Youngerstudents–DistributeacopyofHandout5.4(Young
Assessment)toeachstudent.Askstudentstocirclethepictureofanentrepreneur.(c–mansellinghotdogs.)
Sources FinancialFitnessforLife:StudentWorkbookGrades3–5,Councilfor
EconomicEducation,2010 FinancialFitnessforLife:TeacherGuideK–2,CouncilforEconomic
Education,2010
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Visual5.2
Visual5.3
51
Visual5.4
Visual5.5
52
Visual5.6
Visual5.7
53
Visual5.8
Visual5.9
54
Visual5.10
Visual5.11
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Handout5.1–Script
a. JohnownstheDelightfulDollarStore.b. SidworksforJohn.c. SidgoestoFred’sgrocerystore.d. SallyworksforFredatthegrocerystore.e. SallybuyscarinsurancefromBill.f. BilltakeshiscartoJay’sgarageforrepairs.g. JayhastotakehissontothehospitalwhereMeredithisanx‐raytechnician.
h. MeredithandherfamilygotoJake’sDinerfordinner.i. JakegoestoMatthew’sMeatMarkettobuybeefforhisrestaurant.
j. MatthewgoestoKate’sKitchenEquipmentCompanytobuyanewmeatgrinder.
k. CaroleworksforKate.l. CaroletakesherpaychecktothebankwhereJuanisanemployee.m. JuanloansKate’smoneyto(a)Johnsohecanexpandhisbusiness,theDelightfulDollarStore.
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Handout5.2–NamingaBusiness
Name________________________________Guesswhatkindsofbusinessesmighthavethesenames.
NameofBusiness TypeofBusiness7thInningStretchSeamsToBeAboutTime!DirtyDogAlphaGraphicsTheLighthouseTheManeEventNowseeifyoucanmakeupclevernamesforthesekindsofbusinesses.1. partysupplies__________________________________________
2. pizzashop_____________________________________________
3. antiques______________________________________________
4. gardencenter__________________________________________
5. resale(used)items______________________________________
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Handout5.2–NamingaBusinessAnswerKey
Guesswhatkindsofbusinessesmighthavethesenames.
NameofBusiness TypeofBusiness7thInningStretch BaseballshopSeamsToBe Tailor/seamstressAboutTime! Watch/clockrepairDirtyDog Dogwashing/groomingAlphaGraphics PrintingTheLighthouse LampsandlightingTheManeEvent HairsalonNowseeifyoucanmakeupclevernamesforthesekindsofbusinesses.1. partysupplies__________________________________________
2. pizzashop_____________________________________________
3. antiques______________________________________________
4. gardencenter__________________________________________
5. resale(used)items___________________________________
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Names___________________________Handout5.3–ItAll“Ads”UpDirections:Lookatyourmagazineadvertisementandfillinthefollowinginformation.1. Whatistheproductfeaturedinyouradvertisement?2. Whatagegroupdoyouthinktheadvertisementistargeting(tryingtoreach)?Circleyourchoice.preschoolchildren middleschoolstudents elementaryschoolstudents highschoolstudentsadults
3. Whatinformationintheadmakesyouthinkthisistheagegroupbeingtargeted?
4. Doestheadtargetmales,females,orboth?
5. Circleallofthefollowingsalesmethodsthatyoufindinyourad. Brandnamefamiliarity(logoorslogan) Celebrityendorsement(afamouspersonintheadvertisement)
Authorityendorsement(Expertssuchasdoctorsorteachersrecommendthisproduct.)
Bandwagon(Everyoneisgettingone.) Qualitycomparison(Ourproductisbetterthanothersimilarproducts.)
6. Alladstellsomefactsabouttheproduct.Listthefactsyoucanfindinyourad.
7. Wouldyoubuythisproduct?Whyorwhynot?
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Names___________________________Handout5.3–ItAll“Ads”UpDirections:Lookatyourmagazineadvertisementandfillinthefollowinginformation.1. Whatistheproductfeaturedinyouradvertisement?2. Whatagegroupdoyouthinktheadvertisementistargeting(tryingtoreach)?Circleyourchoice.preschoolchildren middleschoolstudents elementaryschoolstudents highschoolstudentsadults
3. Whatinformationintheadmakesyouthinkthisistheagegroupbeingtargeted?
4. Doestheadtargetmales,females,orboth?
5. Circleallofthefollowingsalesmethodsthatyoufindinyourad. Brandnamefamiliarity(logoorslogan) Celebrityendorsement(afamouspersonintheadvertisement)
Authorityendorsement(Expertssuchasdoctorsorteachersrecommendthisproduct.)
Bandwagon(Everyoneisgettingone.) Qualitycomparison(Ourproductisbetterthanothersimilarproducts.)
6. Alladstellsomefactsabouttheproduct.Listthefactsyoucanfindinyourad.
7. Wouldyoubuythisproduct?Whyorwhynot?
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Handout5.4–YoungAssessmentName___________________________Circlethepicturethatshowsanentrepreneur.
Name___________________________Circlethepicturethatshowsanentrepreneur.
Name___________________________Circlethepicturethatshowsanentrepreneur.
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Lesson6–EntrepreneurshipandProblemSolving
QuestionoftheDay:Whydobusinessesadvertise?LessonComponents
Description
LessonDescription
Advertisingisacrucialfactorinhavingasuccessfulbusiness.Insmallgroups,studentswillcreatenewproductsanddevelopadvertisingcampaignsthatwillbepresentedtotheentireclass.
Concepts Income Expenses Advertising
Objectives Studentswillbeableto: Explainthepurposeofadvertising. Createadvertisementsthatwillincludeelementssuchasclever
naming,slogans,andlogos. Defineincomeasmoneythatcomesfromworkingandother
sources. Defineexpensesasmoneypaidoutforgoodsandservices.
TimeRequired
60minutes
Materials
Visual6.1(QuestionoftheDay)–onefortheinstructor Visual6.2(AdvertisingProject)–onefortheinstructor Handout6.1(Penny’sNewBusiness)–onefortheinstructor Handout6.2(AdvertisingHints)–oneperstudent WordWallCards–income,expenses,advertising Posterpaper–twopiecespergroup Pencils Markers Paper–oneperstudentforyoungerstudentassessment
Procedure 1. DisplayVisual6.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.
2. ReadHandout6.1(Penny’sNewBusiness)tothestudents.3. ExplaintothestudentsthatthemoneyPennyearnsiscalledincome.
Displaythe“income”WordWallCard.Tellstudentsthatincomeismoneythatcomesfromworkingandothersources.PointoutthatPennywillneedtobuysomeleashesandpayherfriendwhowillworkforher.Paymentsforgoodsandservicesarecalledexpenses.Displaythe“expenses”WordWallCard.
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4. Discussthefollowing:a. Pennywantedtobeanentrepreneur.Howdidshewanttoearn
income?(dogwalking)b. Whatexpenseswouldshehavewithherbusiness?(leashes,paying
heremployees)c. Whatresourceswouldsheneedforherbusiness?(human
resources–peopletohelpherwalkthedogs;capitalresources–leashes)
d. HowwasPennygoingtoletpeopleknowaboutherbusiness?(Putasigninthefrontyard;writenotestotheneighbors.)
e. Whatdowecallmakingsignsforyourbusiness?(advertising)Tellstudentsthatadvertisingiswhencompaniesuse advertisementssuchaspublicnotices,displays,orpresentationstopromotethesaleofgoodsorservices.Displaythe“advertising”WordWallCard.
5. Dividestudentsintogroupsofthree.Giveeachgrouppencils,markers,
andonepieceofposterpaper.GiveeachstudentonecopyofHandout6.2(AdvertisingHints).
6. Explaintothestudentsthattheyaregoingtocreateadvertisingfora
businesstheywillcreate.Theadvertisingwillincludeaposterandatelevisioncommercial.Whentheyhavefinished,theywillshowtheirposterandperformtheircommercialinfrontoftheclass.
7. ReadHandout6.2(AdvertisingHints)together.Explaintothestudents
thattheirpostersmusthavealltheelementslistedonthehandout.8. Readthefollowingscenario:
Afamousicecreamcompanyhasaproblem.Ithasbeenlosingsales.Inordertoimprovesales,theownersmustdevelopanexcitingandunusualnewicecreamproductorflavor.They’vehiredyoutocomeupwithacreativeideaforanewproduct.Yourtaskistocreateanewicecreamproductorflavor.
9. DisplayVisual6.2(AdvertisingProject).Reviewthestepsthateachgroupmustcomplete: Createanewicecreamproductorflavor. Comeupwithacatchynameforyourproductorflavor. Decidewhatisunusualaboutyourproduct(uniquesellingpoints). Designanadvertisingposterthathasthenameofthenewproduct,
theprice,andwhereitisavailable. Createapeppytelevisionadvertisementthatwillincludeaslogan
andtellwhyaconsumershouldbuytheproduct.
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10. Usingtheposterasaprop(hangituporplaceitonaneasel),eachgroupwillactoutitstelevisionadinfrontofthewholegroup.Aftereachgroup’spresentation,havestudentsgivefeedbackbydiscussingtheproductandtheeffectivenessoftheadvertising.Thenhavestudentsvoteonwhetherornottheywouldpurchaseit.
11. Askstudentswhyitwasimportantforeachgrouptocreate
advertisementsfortheirproduct.(toletconsumersknowwhatisforsale,convincepeopletobuytheirproducts,tellwhytheirproductsarebetterthanthoseoftheircompetitors)
Closure 1. Discussthefollowing:
a. Whatisincome?(moneythatcomesfromworkingandothersources)
b. Whatareexpenses?(paymentsforgoodsandservices)c. Whydoentrepreneursadvertisetheirbusiness?(toletconsumers
knowwhatisforsaleandwhytheirproductisbetterthanothers,toconvinceconsumerstobuytheirproducts)
Assessment 1. Olderstudents–HavestudentswriteananswertotheQuestionofthe
Day.2. Youngerstudents–Readthefollowingtostudents:
A3rdgradeclasshasdecidedtomakecupcakesandsellthemtoraisemoneytobuybooksforthelibrary.Howcantheyletthestudentsintheirschoolknowabouttheircupcakesale?Distributeapieceofpapertoeachstudent.Askstudentstodrawapicturetoshowwhattheclassmightdotoletconsumersknowabouttheircupcakesale.(Answerswillvary.)
Source FinancialFitnessforLife:StudentStorybookK–2,Councilfor
EconomicEducation,2010MarketDayPreparation
1. CollectHandout6.2(AdvertisingHints)andsaveforuseinLesson11.
64
Visual6.1
65
Visual6.2–AdvertisingProject
1. Createanewicecreamproductor
flavor.2. Comeupwithacatchynameforyour
productorflavor.3. Decidewhatisunusualaboutyour
product(uniquesellingpoints).4. Designanadvertisingposterthathas
thenameofthenewproduct,theprice,andwhereitisavailable.
5. Createapeppytelevision
advertisementthatwillincludeasloganandtellwhyaconsumershouldbuytheproduct.
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8 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
67
P enny was sitting on her porch counting the money she had earned for
walking Mr. Lopez's dog, Mullido. She was so proud of herself. Then
she heard a bark and looked up to see Mr. Lopez and Mullido walking
down the sidewalk toward her.
Mr. Lopez called out to Penny. “Do you want to join us? It’s such a beautiful day.
We've decided to go for a walk.”
Penny carefully put her money into the pockets of her new jeans as she walked
toward Mr. Lopez. She said, “You know, Mr. Lopez, I was just counting the money
I earned. It’s the money you called my income because I earned it by working.
I really like earning income. I sure wish I could earn some more. Do you need me
to walk Mullido for you again?”
Story 2
Penny’s New Business
9FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
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10 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
69
Mr. Lopez laughed. “No, Penny,” he said. “I want to walk Mullido myself
because I need to exercise my sore ankle. But you provided me with a valuable
service by walking Mullido after I hurt my ankle. I was glad to pay you for that
service.”
“What do you mean by a service?” Penny asked.
“Well, Penny, that’s when you do things for people—things that they want,”
said Mr. Lopez.
“Do you think other people in the neighborhood might want me to walk their
dogs? That’s a service I like to do! Is anyone sick or hurt? I’m a good dog walker,”
Penny said. “I'd like to do that for lots of people and earn more income.”
Mr. Lopez agreed with Penny. “You sure are a good dog walker,” he said.
Mullido barked in agreement. “Why, Miss Penny, I believe you’re thinking just like
an entrepreneur!” exclaimed Mr. Lopez.
“ON-TRAY-PRAY-NOOR? What’s that?” asked Penny.
11FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
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12 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
71
Mr. Lopez smiled. He pronounced the word again, slowly, and he explained.
“Penny, an entrepreneur is a person who starts a business and sells goods and
services to other people. You would be an entrepreneur if you started a
dog-walking business.”
“WOW! I like that idea! I'll be an entrepreneur,” Penny said, “and call my
business Penny's Dog-Walking Service. I'm going to be an entrepreneur, and I'll
really make lots and lots of money!”
“Now, hold on a minute,” said Mr. Lopez. “Being an entrepreneur is hard work.”
“I don't care. Working hard would be fun, if it’s walking dogs. I like dogs!
Especially you, Mullido,” Penny said, patting Mullido on the head. “And I like
money, too!” she added.
“And Mullido likes you. You do seem to have a way with animals. That would be
a good skill to have in the dog-walking business,” said Mr. Lopez.
As Penny walked along with Mr. Lopez, thinking about this new idea, she
began to get more and more excited. “I could put a sign in the front yard so people
would know about my dog-walking service. And I could write little notes to all the
neighbors to tell them about my business,” she said.
Penny began to talk faster and faster as she thought of more ideas for her new
business. “I could buy lots of leashes, so that I could walk several dogs at one time.
I might even go to some classes and learn how to bathe dogs and train them. And
I might start taking care of cats, too, and...and...and.... Boy! I’ll earn lots of money!
If the weather is good, I could walk tons of dogs. I might even have so many
customers that I’d have to get Nicholas and Brian to work for me, so I can earn
more money. I’ll have lots of income! I’ll be rich!” Penny jumped around in
excitement.
13FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
72
Mr. Lopez interrupted her, “Yes, Penny you are going to need all of those
productive resources to become an entrepreneur.”
“What do you mean by productive resources, Mr. Lopez?” Penny asked.
“Productive resources are the natural resources, human resources, and capital
resources you will use to provide your dog-walking service,” Mr. Lopez explained.
He continued: “Many of the things you named will be your productive resources.
Brian and Nicholas would be human resources—providing some of the human effort
needed for walking dogs. The leashes would be capital resources—that is, a good
you would use as you provide dog-walking services. You would also use natural
resources such as grass and fresh air as you walk the dogs. These three kinds of
resources are used by entrepreneurs to produce goods and provide services.”
“I guess I have a lot to think about before I can become an entrepreneur, but
I want to get started real soon and earn lots of money!” Penny exclaimed.
“Wait a minute!” Mr. Lopez interrupted. “You are thinking too fast for me.
I guess a young entrepreneur like you gets pretty excited when she thinks about a
new business. But maybe you’d better talk this over with your parents before you
go too far with the idea.”
“That’s a great idea,” Penny said. She waved goodbye to Mr. Lopez and Mullido
as she scampered back down the street toward home. Many thoughts about
becoming an entrepreneur were swirling around in her head.
14 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
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15FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education
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Handout6.2–AdvertisingHints
Onposters,yourletteringmustbe: BIG
Colorful
Clear
Yourpostermusthave: Nameofyourproduct Nameofyourbusiness Uniquesellingpoint Priceofyouritem(s) Additionaldescriptions(adjectives)
Trysomeoftheseideas: Usecreativelettering,suchas ,underlining,orsshhaaddoowwss
Makelettersfromthematerialsyouareusingforyourproduct(beads,sequins,feathers,sand)
WearyouradvertisingonahatorT‐shirt
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Lesson7–EntrepreneurshipandMarketDay
QuestionoftheDay:HowcanImakeaprofit?LessonComponents
Description
LessonDescription
StudentswillbegintoplanforMarketDaybydiscussingpotentialbusinessesandlearningthatthegoalistomakeaprofit.Eachstudentwillmakeasimpleflagusingavailablematerials.Uponcompletingtheflag,eachstudentwillfigureoutthecostofmakingtheflagbaseduponamaterialspricelist,andthenfigurewhatthesellingpricewouldhavetobeinordertomakeaprofit.
Concepts Profit Loss Revenue Expenses
Objective Studentswillbeableto: Explainthedifferencebetweenprofitandloss. Explainwhyasellingpricemustbegreaterthanthecostofmaking
aproduct.TimeRequired
60minutes(plusadditionalpreptime)
Materials
Visual7.1(QuestionoftheDay)–onefortheinstructor Handout7.1(SuggestionsforStudentBusinesses)–onecopyper
student,tobesenthome Handout7.2(PricingProducts)–onecopyperstudent Handout7.3(ParentLetter)–onecopyperstudent,tobesent
home Handout7.4(MarketDayTimeline)–onecopyperstudent,tobe
senthome WordWallCards–profit,loss,revenue,expenses Suppliesforactivity:
9”×12”constructionpaper–atleastoneperstudent Drinkingstraws–atleastoneperstudent Stickers–severalperstudent Markers–varietyofcolors Staplers Transparenttape Scissors
Procedure 1. DisplayVisual7.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.
2. Reviewbyaskingthestudentstoexplainwhatanentrepreneuris.(a
personwhostartsanewbusiness)
REQUIRES ADDITIONAL PREP TIME
76
3. Askthestudentswhatchangesinlifestylewouldhaveinspiredan
entrepreneurtoinventthefollowingproducts: Fastfood(busyschedules) Childcarecenters(workingparents) Exercisebikes(gettingexercisewhenpeoplecan’tbeoutside) Nursinghomes(peoplelivinglonger) Microwaveovens(nothavingtimetocookandpreparemeals)
4. Explaintothestudentsthattheyaregoingtohaveanopportunitytobeentrepreneurs.Overthenextmonth,theywillworkathomeonproducingproductsandcreatingadvertising.On(dateofLesson11)thegroupwillhaveaMarketDaywhenthestudentswillbringtheirproductstosell.Amarketplacewillbesetup;invitedguestsandstudentswillbeabletocometoshopusingECONObucks.
5. Askthestudentswhatthegoalisofanyonewhoownsabusiness.(to
makeaprofit)6. Explaintothestudentsthatthegoalofbusinessownersistomakea
profit.Profitiswhenthemoneyabusinesstakesinfromsellingitsproductsisgreaterthanitsexpenses.Themoneyabusinessreceivesfromsellingitsproductsiscalledrevenue.Displaythe“profit”and“revenue”WordWallCards.Businessownershavemanyexpenses.Reviewthatanexpenseismoneypaidoutforgoodsandservices.Displaythe“expenses”WordWallCard.
7. Askstudentswhataresomeexpensesabusinessmighthave.(rent,
utilities,employees,supplies,andmachinery)8. Explainthatwhenyourbusinesstakesinmoremoneythanitpays
out,thedifferenceiscalledaprofit.Ifrevenueislessthanexpenses,thebusinesshasaloss.Displaythe“loss”WordWallCard.Ifabusinessdoesnotmakeaprofit,itwilleventuallyhavetoclose.
9. ExplainthatwhenthinkingaboutwhatbusinesstoopenonMarket
Day,studentsmustthinkaboutwhattheircustomerswillwanttobuy.
10. Discussthefollowing:a. Doyouthinkasurfingshopwouldbeagoodbusinessin
Minnesota?(no)Whynot?(notneartheocean)b. Doyouthinkawintersportsshop(skis,snowshoes,parkas,etc.)
wouldbeagoodbusinessinFlorida?(no)Whynot?(climatetoowarm,nosnow)
c. WhatwouldbeagoodbusinesstohaveinFlorida?(bathingsuit
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shop,surfingshop,coldbeverages,etc.)
11. Discusswhatproductsstudentsmightbeabletomakefortheirbusinesses.Havestudentssuggestpossibleproductstheycouldmake,andwritethelistontheboard.ThendistributeHandout7.1(SuggestionsforStudentBusinesses)toeachstudent.Readthroughthelisttogether.Ifstudentsgivesuggestionsthatdonotappearonthelist,havethemaddthosetotheircopiesofHandout7.1.
12. Explainthatinchoosingaproducttomake,eachstudentshould
matchhisorherinterestsandabilitiestothechosenbusiness.Ifastudentlikestocook,perhapsheorshewouldliketomakecookiesorbrownies.Ifgardeningisaninterest,decoratingsmallflowerpotsorStyrofoamcupsmightbeagoodchoice,fillingthemwithpottingsoil,thenplantingshootsfromaspiderplant(orsomeotherhouseplant)orseedlingssuchasmarigolds.
13. DistributeHandout7.3(ParentLetter)andHandout7.4(MarketDay
Timeline)toeachstudent.TellstudentstotakethemhomealongwithHandout7.1.Theyneedtodiscusswiththeirparentsorwiththeinstructorwhatwouldbeagoodbusiness.Whenstudentshavedecidedonabusiness,theymusttelltheinstructor.Note:Ifsomeoneelsehasalreadychosenthesameproduct,youmightwanttoencouragethestudenttochooseadifferentproductinordertolessendirectcompetition,ordiscusshowtomakeitdifferentfromthecompetition.Inreallife,someonewhowantedtohaveabakerywouldnotchoosetoopenitnextdoortoanexistingbakery.
14. Explaintothestudentsthatapersonmusthavemoneytostarta
business.Askthestudentswhymoneyisneeded.(Youmightneedtopurchasematerialsandingredients,payemployees,rentspace.)ExplainthatsincethestudentshaveallbeenearningECONObucks,theyhaveenoughmoneytogettheirbusinessesstarted.
15. Explainthatstudentswillhaveseveralbusinessexpenses.Theymust
paytheirparents(ortheinstructor)withECONObucksforthesuppliesneededtomaketheirproducts.(SeetheMarketDayPreparationsectionattheendofthislessonforadditionalinformation.)Ifanyonehelpswithmakingtheproducts(parents,brother,sister,grandparents,friends),those“employees”mustbepaidfortheirtime.
16. Spreadsupplies(constructionpaper,straws,stickers,markers,
staplers,scissors,andtape)onacentraltable.DistributeHandout7.2(PricingProducts)toeachstudent.Explainthatthestudentswilleach
78
createaflaghowevertheylike.Eachitemfromthesupplytablehasaprice;thepricingchartisHandout7.2.Allowstudentstogotothesupplytableandselectmaterialstobeginmakingtheirflags.Studentsmayreturntothetableasneeded.Allowaspecificamountoftimeformakingtheflags.
17. Whenthetimeisup,askthestudentstostop.HavethemfillintheMy
SuppliessectionofHandout7.2,recordingthecostforeachitemusedandthenaddingupallthecoststogetatotalcost.
18. HavestudentsanswerthequestionsatthebottomofHandout7.2.
(Answerswillbedifferentdependingonindividualcosts.)Askstudentshowtheyarrivedatasellingprice.(Theymustchargemorethanthecostofmakingtheproduct;itemsthatrequiremoreexpensivematerialswillrequireahighersellingprice.)
Closure 1. Readthefollowingprompt:
OnahotSaturdaymorning,Janedecidestoopenalemonadestandandselllemonade.Shepays$3forapoundofsugar,$4forlemons,and$2forcups.Jane’scustomerslikeherlemonade.Discussthefollowing:a. WhatisthemoneycalledthatJanebringsinfromselling
lemonade?(revenue)b. WhatareJane’sexpenses?($3forsugar,$4forlemons,and$2for
cups)c. Whatarehertotalexpenses?($9)d. Janemade$12inrevenuefromsellinglemonade.Didshemakea
profitoraloss?(profit)Howmuchprofit?($3)
Assessment 1. Olderstudents–HavestudentswriteananswertotheQuestionoftheDay.
2. Youngerstudents–Distributeasmallpieceofpapertoeachstudent.
Readthefollowingtothegroup:AnentrepreneurismakingnecklacesforMarketDay.Afterpayingforsuppliesandbusinessexpenses,eachnecklacecost23¢tomake.Atwhatpriceshouldshesellhernecklacesinordertomakeaprofit?Havethestudentseachwritetheirnameandananswertothequestiononthepaper.
Source Focus:Grades3–5Economics,NationalCouncilforEconomicEducation,2005
79
MarketDayPreparation
1. EachstudentmusttakehometogivetoparentsacopyofHandout7.1(SuggestionsforStudentBusinesses),Handout7.3(ParentLetter),andHandout7.4(MarketDayTimeline).TheParentLetterisasample;youwillneedtocustomizeitforyourgroup.InserttheMarketDaydateintheletterandintheMarketDayTimeline.
2. Keepalist(andpossiblyachart)ofbusinessesstudentshaveselected.3. Dependingonthecircumstancesofyourstudents,youmightneedto
purchasebusinesssuppliesforstudentsusingmoneysuppliedbyaScoutcouncil,PTA,etc.Theeasiestwayofchargingthestudentsistodividethebusinesssuppliesintothreecategories–least,middle,most–thensetanamountforeachcategory(withconsiderationforthenumberofECONObucksstudentshaveearnedduringthecourseofthisunit).Suggestedamountsmightbe:suppliesthatcosttheleast,5–10ECONObucks;amoderateamount,10–20ECONObucks;most,20–30ECONObucks.
4. Youwillwanttosendinvitationstoparents,staff,administrators,and
othervisitorstocomeandshoponMarketDay.5. Constantlyencouragethestudentstoworkontheirproducts.If
studentshavechosensomethinglikeplantingseeds,theywillneedtogetstartedrightaway.Ifthebusinessistomakefooditems,theywillwanttowaituntilclosertoMarketDaytomaketheirproducts.Remindstudentstheywillneedtomakeplentyofproductstosell.
80
Visual7.1
81
Handout7.1–BusinessSuggestions
SuggestionsforStudentBusinesses
food/beverageitems woodworking dreamcatchers keychains petrocks canvasbags bookmarks puzzles jewelry plantsorflowers decoratedflowerpots fancypencilsorpens banks(madefromjars,milkcartons,plasticjuicecontainers)
cards(greetingornotecards)
vases seashellitems seasonalitems buttons/badges visors sandpaintings pictureframes clayordoughitems magnets
Ifinthefutureyouwanttostartabusinessthatisaservice,youmightwanttoconsider:
garagesale bikerepair cleaning lawnmowing leaf/snowremoval tutoring carwashing babysitting plantwatering petsitting technology refereeingsports
gardening(weeding,
planting,harvesting)
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Handout7.2–PricingProducts
Name_______________________
Supplies Price
Constructionpaper 10¢ per¼sheetStraws 5¢ eachStickers 3¢ eachMarkers 2¢ permarkerStaples 1¢ eachTape 2¢ perpieceScissors 10¢ torent
MySupplies HowMany Cost
TOTAL
1. Howmuchdiditcosttomakeyourflag?________________________2. Inordertomakeaprofit,whatshouldbeyoursellingpricefor
eachflag?_____________________________________
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Handout–7.3ParentLetterDearParents,Wehavebeenworkingonaseriesoflessonsallaboutmoney–earning,spending,andsaving.Thegoalistoteachouryoungstersaboutthewiseuseofmoneyandhowoureconomyworks.Thestudentshavelearnedthatbeinganentrepreneur(owningone’sownbusiness)isacareeroption.Eachstudentisgoingtobecomeanentrepreneurforthisnextmonth,selectingaproduct,producingenoughitemstosell,creatingadvertising,andthenactuallyopeningforbusinessonMarketDay.Theitemsmaynotbestore‐boughtproductssuchascandy,cookies,orpencils.Theymaybehomemadefooditemsoracraftofsometype.Wehavediscussedbusinesses,andsomeofthestudentshaveideasaboutwhattheywouldliketomake.Yourpartinthisprojectwillbetohelpyourchilddecideonabusiness,helptogetthenecessarysuppliestomaketheproduct,andgiveencouragement.(Contactusifyouneedhelpwithsupplies.)YourchildwillpayyouinECONObucks(ourgroup9’smoney)forallmaterialsoringredientsandforyourtimeasanemployee.Forinstance,youmightchargetwoECONObucksanhourforhelping.PLEASEREMEMBERTHATTHESTUDENTMUSTMAKETHEPRODUCTS,BUTYOUMAYHELP.Afteryougetpaid,youwillhavewhatwouldseemtobeuselessECONObucks,butholdontothem!YoucanspendthemwhenyoucometoshoponMarketDay.TheweekafterMarketDaywewillhaveasalewherestudentswillbeabletospendtheirprofitsoranyECONObuckstheyhavesaved.PLEASESAVETHEDATE!MarketDaywillbeon______________________ andyouareallencouragedtocomeandbeourcustomers.Thankyouforyoursupport.
84
Handout7.4–MarketDayTimelineName_______________________ Insertdateswhenyouwillhavecompletedeachtaskbelow.Date Task
Discusswithyourparentswhatyoumightwanttoproduceforyourbusiness.
Letyourinstructorknowwhatyou’dliketoproduce.Ifsomeoneelsehasalreadychosenthat,youmightwanttochoosesomethingdifferenttoreducedirectcompetition.
Workonmakingproducts.
Createanadvertisingposter.
Keeptrackofallyourexpensesonanaccountsheet(likeHandout7.2.)
Planyourdisplay.(Thiswillbediscussedinthenextcoupleofweeks.)
Rememberthatanyfooditemsmustbewrappedorbagged.
CollecteverythingthatyouwillneedforMarketDay:products,moneybox,plasticgrocerybags,anddisplayitems.
Remember:ThedateforMarketDayis___________________________
85
Lesson8–Budgeting
QuestionoftheDay:Whatisabudget?LessonComponents
Description
LessonDescription
Studentswilllearnwhatabudgetisandhowtocreateone.Then,studentswilllearnhowtobalanceabudgetbyearningextraincomeorreducingexpenses.
Concepts Budget BalancedBudget Income Expenses
Objectives Studentswillbeableto: Constructabudgetandunderstandthedifferencebetweenincome
andexpenses. Explainwhatabalancedbudgetisandhowtoachieveone.
TimeRequired
60minutes
Materials
Visual8.1(QuestionoftheDay)–onecopyforinstructor Visual8.2(AmusementPark)–onecopyforinstructororpaper
copiesforstudents Envelopeforeachstudentcontainingthefollowing: Handout8.1(BudgetCards)–cutapart Handout8.2(DollarBills)–cutapart,sixdollarsperastudent Handout8.3(Quarters)–cutapart,eightquarterspera
student Handout8.4(Budgeting)–onecopyperstudent
WordWallCards–budget,balancedbudget,income,expenses Whiteboardorchalkboard Blankpaper–onesheetperstudent Pencils–oneperstudent
Procedure 1. DisplayVisual8.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.
2. Write“Budget”ontheboard.Underneathit,write“Income”ontheleft
and“Expenses”ontheright.Explaintostudentsthatabudgetisaspendingandsavingsplanthatliststheincomeandexpensesthatapersonhas.Displaythe“budget,”“income,”and“expenses”WordWallCards.
3. Discussthefollowing:
a. Whatisincome?(moneythatcomesfromworkingandothersources)
b. Whataresomewaysyoucanearnincome?(allowance,giftsfrom
REQUIRES ADDITIONAL PREP TIME
86
adults,lemonadestand,etc.)Recordtheiranswersunder“Income.”c. Whatareexpenses?(moneythatgetsspentongoodsandservices)d. Howdoyouspendyourmoney?(Buythingssuchastoysand
candy;donatetodifferentcharities;saveit.)Recordtheiranswersunder“Expenses.”
4. Tellstudentstheyaregoingtoworkonmakingaweeklybudget.Abudgetmeanskeepingtrackofallyourincomeandexpenses.Thegoalistohaveabalancedbudget,whichmeansthatyourincomeequalsyourexpenses.Displaythe“balancedbudget”WordWallCard.
5. Handoutanenvelopetoeachstudent.(Seematerialsforspecial
instructions.)6. Tellthestudentstospreadthecontentsoftheenvelopesontheir
desks.Tellthemthe“MoneyIn”cardsshowhowtheycangetmoney(income)andthe“MoneyOut”cardsshowmoneyleavingtheirhands(expenses).
7. Tellthemtoputtheir“MoneyIn”cardsfaceupontheleftsideoftheir
desks.8. Tellthemtoputtheir“MoneyOut”cardsfaceupontherightside.
Checktoseeiftheyhavegroupedthecardscorrectly.9. Tellthestudentstolookatthemoneytheyhaveintheirenvelopes.
Discussthefollowing:a. Whatisthevalueofaquarter?(25cents)b. Howmanyquartersareinadollar?(four)c. Howmuchmoneydoyouhavealltogether?(eightdollars)
10. Discussthesourcesoftheirincome(“MoneyIn”cards).Tellthemto
place$1.00ontheir“IncomefromhelpingGrandmabydoingyardworkcard,$1.00on“Incomefromwalkingthedog,”and$2.00for“Incomefromallowance”cards.Tellthemnottoputanymoneyonthe“Extraallowanceneeded”card,becausetheydon’tyetknowhowmuchtheywillneed.
11. Afterthestudentshaveplacedtheirmoneyontheappropriatecards,
havethemremovetheirmoneyfromthepicturesandholditintheirhands.
12. Havethestudentslookattheirexpenses(“MoneyOut”cards).Tell
themtoplace$3.00on“SpendingmoneyonPockets,”theirpet,25¢on“GivingMoneytotheChildren’sHospital,”75¢on“Savingmoneyforgifts,”and$1.00on“Spendingmoneyforfun.”
87
13. Havethestudentstakethemoneyoutoftheirhandsandplacethe
appropriateamountsoneachcorrespondingcard.Theexpenseseachweektotal$5.00,buttheirincomeisonly$4.00eachweek.Discussthefollowing:a. Isyourbudgetbalanced?(no)b. Whynot?(Theirexpensestotalmorethantheirincome.)c. Howcouldyoubalanceyourbudget?(Theywilleitherneedtoearn
anadditionaldollarorreducetheirexpenses.)Explainthatabalancedbudgetmeansbothsidesadduptothesameamountofmoney.Theycouldbalancethebudgetbyearninganadditionaldollarofallowanceorbycuttingtheirexpensesbyadollar.
14. Asksomestudentstosharewiththeclasshowtheywouldchoosetobalancetheirbudgets.Pointoutthatiftheadjustmentstheymadeshowedmoreincomethanexpenses,theremainingincomewouldbesavings.
Note:SavethequartersforuseintheAssessmentsectionforyoungerstudents.
Closure 1. Discussthefollowing:a. Whatisabudget?(aspendingandsavingplanthatshowsyour
incomeandexpenses)b. Whatisabalancedbudget?(Bothsidesofthebudget,incomeand
expenses,equaleachother.)c. Ifabudgetisnotbalanced,howcantheproblembesolved?(Either
reduceexpensesorincreaseincome.)2. DisplayVisual8.2(AmusementPark).3. Distributeablankpieceofpaperandapenciltoeachstudent.4. Havethestudentscreatetwocolumns–onelabeledincomeandone
labeledexpenses.Underincome,thestudentsshouldrecord$40.Underexpenses,havethestudentslisthowtheywouldspendtheirmoneyattheamusementpark.
5. Havethestudentssharetheirbudgetswithotherswhentheyare
finished.
Assessment 1. Olderstudents–HavethestudentswriteananswertotheQuestionoftheDay.
88
2. Youngerstudents–Giveeachstudenteightquarters(theirallowance)andacopyofHandout8.4(Budgeting).Havestudentsallocatetheirmoneytothevariousexpenses.Makesuretheycreateabalancedbudget.
Source FinancialFitnessforLife:TeacherGuideK–2,CouncilforEconomicEducation,2010
89
Visual8.1
90
Visual8.2–AmusementPark
Luckyyou!Youwillbegoingtoanamusementparkwithsomefriendsfortheday.Yourmomgaveyou$40.00tospendonfoodandentertainment,soyouwillhavetobudgetcarefullytomakesureyoucandoallthethings
youwouldliketodo!
Item Price Item PriceVideoArcade $5 Frozen
Lemonade$2
CottonCandy
$4 RollerCoaster $4
SpeedyGo‐Carts
$5 HotDog&Drink $4
Twister
$5 Free‐FallTower $5
FunHouse
$4 DunkTank $5
BumperBoats $6 BasketballDunk
$4
Souvenir
$5 IceCreamCone $3
ChiliCheeseFries
$5 FerrisWheel $6
91
Handout8.1–BudgetCards
92
Handout8.2–DollarBills
93
Handout8.3–Quarters
94
Handout8.4–Budgeting
CottonCandy(3quarters)
ColoredPencils(4quarters)
ToyCar(6quarters)
Lemonade(2quarters)
95
Lesson9–SavingYourMoney
QuestionoftheDay:Whyisitimportanttosave?LessonComponents
Description
LessonDescription
Studentswillexplorehowtodepositandwithdrawmoneyinasavingsaccount.Manychildrenhaveapiggybankontheirdresserthatcollectsalltheircoins.Inthislesson,studentswillplayagamethatexplainshowabankislikeapiggybank–itacceptsdeposits,andyoucanwithdrawmoneyfromit.Studentswillbeintroducedtowhyitisimportanttosavetheirmoney.
Concepts Saving Deposit Withdrawal SavingsAccount SavingsGoal
Objectives Studentswillbeableto: Differentiatebetweendepositsandwithdrawals. Explaintheimportanceofsaving.
TimeRequired
60minutes
Materials Visual9.1(QuestionoftheDay)–onecopyforinstructor WordWallCards–saving,deposit,withdrawal,savingsaccount,
savingsgoal Whiteboardorchalkboard Blankpaper–onesheetperstudent Coloredpencils,crayons,ormarkers PlasticzipBag,onepergroup,containingthefollowing: Handout9.1(BankingCards)–cutapart Handout9.2(PiggyBank)–onecopypergroup Handout9.3(SavingsRegister)–onecopypergroup Onedie 50pennies(orECONObucks) Calculator(optional)
Procedure 1. DisplayVisual9.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.
2. Askstudentsiftheysavemoney.Tellthemthatsavingmeansnot
spendingmoneynow,butinsteadkeepingmoneytobuysomethinginthefuture.Displaythe“saving”WordWallCard.
3. Askthestudentswheretheysavetheirmoney.Askiftheysavetheir
moneyinapiggybankathome.Explainthatwhentheyputmoney
REQUIRES ADDITIONAL PREP TIME
96
intotheirbank,theyaremakingadeposit.4. Displaythe“deposit”WordWallCard.Tellstudentsthatwhenthey
depositmoneyintotheirbanks,theyaresaving.5. Askstudentsiftheyevertakemoneyoutoftheirpiggybanks.Ask
why.(Answerswillvary.)Explaintothemthatwhentheytakemoneyout,theyaremakingawithdrawal.Displaythe“withdrawal”WordWallCard.
6. Tellthestudentstheyaregoingtoplayafungameaboutdepositsand
withdrawals.Dividetheclassintogroupswithnomorethanfourstudentsineachgroup.
7. Giveeachgroupaplasticzipbagfullofthematerials.(Seematerials
section.)8. Havethestudentsremoveallthecontentsfromtheplasticzipbag
exceptthepennies.Tellthemtoshufflethedepositandwithdrawalcardsandstackthemfacedowninthemiddleofthegroup.
9. Tellthestudentsthatyouhavegiveneachgroupapiggybanktostart
asavingsaccount.Explainthatasavingsaccountisanaccountatthebankwherepeoplecankeepthemoneytheyhavesaved.Displaythe“savingsaccount”WordWallCard.
10. Tellstudentsthateachgrouphas10penniesintheirsavingsaccount.
Havethestudentsplace10penniesonthepig.11. Demonstratehowthegameisplayed.Eachplayer:
Takesaturnrollingthedieandcallingoutthetotalrolled. Drawsacardfromthepileandturnsthecardovertofindout
whethertodepositorwithdrawtheamountshownonthedie. RecordsthisinformationonacopyofHandout9.3(Savings
Register). Withdrawspenniesfromthepiggybankordepositsmoney
intothebankusingpenniesfromthebag.Aseachstudentaddsorsubtractspenniesfromthepiggybank,thestudentwillgiveareason,suchas:“Irolledafour,andthecardsaysdeposit.ThisissomemoneyIearnedforcleaningmyroom.”
Placesthecardatthebottomofthedrawpileandpassesthesavingsregistertothenextpersontotakeaturn.
Note:Ifthefirstfewturnsareallwithdrawals,explaintothegroupthattheymustrecordanegativebalanceontheirSavingsRegister.
97
Therearefourwithdrawalslipsandeightdepositslipspergroup.Ifstudentshavenotbeenintroducedtonegativenumbers,arrangeeachgroup’sdeckofwithdrawalanddepositcardssogroupsbeginwithtwoorthreedepositcards.
12. Remindstudentsthattheyneedtoworktogethertoplaythegameandtheteamwiththemostmoneyattheendofthegamewins.ContinueplayuntileachgrouphasfilledouttheirentireSavingsRegister.
13. HavethestudentslookovertheirSavingsRegister.Checktomake
surethestudentsaddedandsubtractedcorrectly.RewardwithECONObucksiftheydiditcorrectly.RewardthegroupthathadthehighestamountsavedwithECONObucks.
14. Tellthestudentstheyjustlearnedhowmakingdepositsand
withdrawalsinasavingsaccountworksatabank.Explaintothemthatinthisgamethehighestamountsavedwasdeterminedbyluck.Inreallife,goodsaversarepeoplewhoplantosaveandworkhardatit.Askthestudentstoshareanystoriestheyhaveofsavingmoneyandwhattheyaresavingfor.
15. Asaclass,discusswhypeoplesavetheirmoney.(tobuysomethingin
thefuture,tohavemoneyforanemergency)Askthestudentswhattheywouldliketosavetheirmoneyfor.(Answerswillvary.)
16. Passoutablankpieceofpapertoeachstudent.Instructthemtodraw
apictureofsomethingtheywouldliketosavefor.Oncethedrawingsarecomplete,congratulatethemonhavingasavingsgoal.Tellstudentsthatasavingsgoalisanygoodorservicethatyouaresavingmoneyfor.Displaythe“savingsgoal”WordWallCard.
17. Encouragestudentstotaketheirsavingsgoalhomeandhangit
somewherewheretheycanberemindedofwhytheywanttosavetheirmoney.
Closure 1. Discussthefollowing:
a. Whatisthedifferencebetweendepositingmoneyandwithdrawingmoney?(Youputmoneyintoyouraccountwhenyoudeposit;youtakemoneyoutofyouraccountwhenyouwithdraw.)
b. Whyisitagoodideatohavemoneyinyoursavingsaccount?(tosavetobuysomethinginthefuture,tohavemoneyforemergencies)
c. Whatisasavingsgoal?(somethingyouwouldliketopurchaseandaresavingmoneytodoso)
Assessment 1. Olderstudents–HavestudentswriteananswertotheQuestionoftheDay.
98
2. Youngerstudents–Askstudentsdrawapictureofasavingsgoalthey
have.Havestudentssharetheirsavingsgoalandgivethestepstheywilltaketoachieveit.
Source FinancialFitnessforLife:TeacherGuideK–2,CouncilforEconomicEducation,2010
99
Visual9.1
100
Handout9.1–BankingCards
101
Handout9.2–PiggyBank
102
Handout9.3–SavingsRegister
Roll Student’sName
Deposit(+)
Withdrawal(–)
Balance
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Lesson10–Government‐ProvidedGoodsandServices
QuestionoftheDay:Whataregovernment‐providedgoodsandservicesandhowaretheypaidfor?
LessonComponents
Description
LessonDescription
Studentswilldifferentiatebetweenprivateandgovernment‐providedgoodsandservicesbycreatingacommunity.Studentswilllearnwhopaysforcertaingoodsandservicesinacommunity.
Concepts
Taxes Government‐ProvidedGoodsandServices PrivateGoodsandServices
Objectives
Studentswillbeableto: Explainthedifferencebetweenprivatelyownedandgovernment‐
providedgoodsandservices. Definegovernment‐providedasthosegoodsandservicesthatare
paidforwithmoneycollectedfromtaxesandareprovidedbythegovernment.
Identifyatleastfivegovernment‐providedgoodsorservices. Explainwhypeoplepaytaxes.
TimeRequired
60minutes
Materials
Visual10.1(QuestionoftheDay)–onecopyforinstructor Handout10.1(CommunityCards)–onecopy,cutapartand(except
trafficlightsandstreetlamps)placedinacontainer Handout10.2(YoungAssessment)–onecopyperyoungstudent WordWallCards–taxes,government‐providedgoodsand
services,privategoodsandservices Drawingorconstructionpaper–onesheetperstudent Markersorcrayons Narrowstripsofyellowconstructionpaper(sidewalks) Widestripsofblackconstructionpaper(roads) Toycarorapictureofacar
Procedure
1. DisplayVisual10.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.
2. Displaythe“taxes”WordWallCard.Definetaxesasrequiredpaymentsindividualsandbusinessesmaketothegovernment.Askwhatkindsoftaxestheyhaveheardof.(salestax,propertytax,incometax)
3. Askwhytheythinkpeoplepaytaxes.Explainthattaxesbenefitthecommunitybyprovidinggoodsandservicestothepeople.A
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communityisanareainwhichpeoplework,playandshop.4. Distributeapieceofpaperandmarkersorcrayonstoeachstudent.5. Haveeachstudentpullacommunitycardfromthecontainer.Explaintothemthattheywilldrawandcolorapictureofwhateverisnamedontheircommunitycard.Makesuretheylabelthepicture.
6. Wheneveryonehasfinished,havethestudentsplacetheirpicturesinarectangleonthefloorwithedgestouching(nogapsinthelargerectangle).
7. Saytothestudentsthatyouaregoingtotakeawalkthroughtown.Starttotakeastep,butthenhesitate.Say:“Ithinksomethingismissing.Whatisit?”(sidewalks)“Let’sputinsomesidewalks!”
8. Separatethepicturesintoblockswithfourpicturesperblockand,usingyellowconstructionpaperstrips,havestudentsputdownsidewalks.
9. Nameastudentwhodrewahouseorapartmentandsaythestudentneedstogotothegrocerystore.Thestudentwillhavetodrivesinceheorsheneedslotsofgroceries.Handthetoycartothestudenttodrivefromhisorherhousetothestore.
10. Thestudentsmightobservethattherearenoroads.Separatethe
buildingsfurther.Usingtheblackconstructionpaper,havestudentsputintheroadsaroundtheblocks,withsidewalkstoonesideoftheroads.
11. Discussthefollowing:
a. Whopaysforsidewalksandroads?(thegovernment)b. Wheredoesthegovernmentgetthemoneytopayforroadsand
sidewalks?(fromcollectingtaxes)
12. Explainthattaxespayforthingsthatmanypeopleusebutcan’treallypayforindividually.Askstudentsiftheycanthinkofsomemethodofmakingpeoplepaytowalkonthesidewalk.Tellstudentsthatthethingsthatareprovidedbygovernmenttoitscitizensandpaidforwithmoniescollectedfromtaxesarecalledgovernment‐providedgoodsandservices.Displaythe“government‐providedgoodsandservices”WordWallCard.
13. Explaintothestudentsthattheyaregoingtorearrangetheir
communitysothatallhousingisinonearea,privatelyowned
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businessesaretogetherinanotherarea,andgovernment‐providedservicesareinyetanotherarea.Havestudentspickuptheirpictures,leavingtheroadsandsidewalksinplace.
14. Askstudentswhoareholdingsometypeofhousingtoholduptheir
pictures.Askthemwhousuallypaysforthis?(anownerorrenter)Havethosestudentssettheirpicturesinonesectionoftown.
15. Askwhoisholdingabusinessownedbyanentrepreneur.Havethese
studentsholduptheirpictures.Tellstudentsthesebusinessesareprivatelyownedandprovideprivategoodsandservices.Havethesestudentsplacetheirpicturesinanothersectionoftown.Displaythe“privategoodsandservices”WordWallCard.
16. Askstudentswhopaysforthegoodsandservicesprovidedbyprivate
businesses.(individualconsumerswiththeirpersonalincome)17. Explaintothestudentsthattherearestillquiteafewthingsthatdon’t
fitintothecategoriesofhousingorbusinessesthatareprivatelyowned.Haveallthestudentsstillholdingpicturestellwhattheyhave.
18. Discussthefollowing:
a. Aretheseprivatelyowned?(no)b. Whopaysfortheservicestheyprovide?(thegovernmentwithmoniescollectedfromtaxes.)Havestudentsplacethesepicturesintheremainingblocksofthecommunity.
c. Howistrafficcontrolledatbusyintersections?(trafficlights)Havestudentsplacesometrafficlightsatintersections.
d. Whathelpsustoseewherewe’rewalkingintownatnight?(streetlamps)Havestudentsplacestreetlampsinthecommunity.
e. Whodoyouthinkpaysfortheselightsandtheelectricitytorunthem?(Thegovernmentpaysforthemwithmoneycollectedfromtaxes.)Havestudentsplaceafewstreetlampsinthecommunity.
Closure
1. Itappearsthatourcommunityiscomplete.Discussthefollowing:a. Whocanexplainwhatgovernment‐providedgoodsandservices
are?(goodsandservicesthatareprovidedbythegovernment)b. Howdoesgovernmentpayforthem?(Thegovernmentpayswith
moniescollectedfromtaxes.)c. Whydopeoplepaytaxes?(sothatthegovernmentcanprovidegoods
andservicesforthecommunity)d. Whatareexamplesofgovernment‐providedgoodsandservicesin
yourcommunity?(Answerswillvary.)
106
Assessment
1. Olderstudents–HavestudentswriteananswertotheQuestionoftheDay.
2. Youngerstudents–DistributeacopyofHandout10.2(YoungAssessment)toeachstudent(b–library)
Sources AdaptedfromEconomicsfortheElementaryClassroom,SPECPublishers,Inc.,2005
OldMacDonaldtoUncleSam,NationalCouncilonEconomicEducation,2002
107
Visual10.1
Whataregovernment‐providedgoodsandservices,andhoware
theypaidfor?
108
Handout10.1–CommunityCards
Marty’sMeat
Market
Sally’sSalon
Harry’sHomeBuilders
Tanya’sTravel
Agency
Mabel’sMovie
Theater
Robert’sRestaurant
house
house
house
apartmentbuilding
apartmentbuilding
house
firehouse
volunteerambulancecompany
policedepartment
statehighwaydepartmentbuilding
prison
school
Gary’sGroceryStore
Paul’sPetShop
Lucy’sLawFirm
recyclingcenter
publiclibrary
communitycenter
109
Handout10.2–YoungAssessmentName___________________________Circlethepicturethatshowsagovernment‐providedgoodorservice.
Name___________________________Circlethepicturethatshowsagovernment‐providedgoodorservice.
Name___________________________Circlethepicturethatshowsagovernment‐providedgoodorservice.
110
Lesson11–ImplementationofMarketDay
LessonComponents
Description
LessonDescription
MarketDayistheculminatingactivityofthisunit.Studentswillbeabletodemonstratewhattheyhavelearnedaboutentrepreneurship,advertising,andrunningabusiness.Theywillsetupshops,displayingtheiradvertisingsignsandtheproductstheyhavemade.Visitorsareencouragedtoattendasshoppers.
Objectives Studentswillbeableto: Demonstratequalitiesofsuccessfulentrepreneurship. Tallynumbersofsalesanddeterminetheirrevenue.
TimeRequired
60minutes
Materials
Handout11.1(Bills)–cutapart,onebillperstudent Handout11.2(BusinessLicense)–onecopyperstudent Handout11.3(TallySheet)–onecopyperstudent Handout6.2(AdvertisingHints)–usedinLesson6 ExtraECONObucksforvisitors–cutapart Desksortables Maskingandtransparenttape Markers Pencils
Studentswillsupply: Products Pricetags Advertising Moneybox Tablecoveringsanddisplayitemssuchasbaskets(optional)
Procedure INADVANCE:1. HavestudentscounttheirECONObucksandrecordtheamountson
theoutsidesoftheirwallets.
2. Iftheinstructorshavepurchasedsuppliesforstudentbusinesses,decideonanappropriatenumberofECONObuckstochargeeachstudent.YoumightwanttobasethisonthenumberofECONObucksyourstudentshave.Forexample,forstudentswhosesupplieswerenottooexpensive,perhapscharge5–10ECONObucks,themostexpensivesupplies25–30ECONObucks.
3. FilloutabillfromHandout11.1foreachstudent,charging5ECONObucksforabusinesslicenseandanappropriateamountforsuppliesthathavebeenpurchasedforthatstudent’sbusiness.
111
4. CompleteHandout11.2(BusinessLicense)foreachstudent.
5. Meetwitheachstudentindividuallytopresentandexplainthebill,
thenhavethestudentcountoutthenumberofECONObucksowed.Explainthatallexpenseshavenowbeenpaid,soanythingearnedonMarketDaywillbeprofit.
6. Havestudentsmakesignsfortheirbusiness.RedistributeHandout6.2(AdvertisingHints)usedinLesson6.Reviewtheattributesofagoodadvertisement.
IMPORTANTINFORMATION:Ifyouareinvitingoutsiderstoshop,theywillnothaveECONObucks.Setanexchangerate(suggestedrate:$1=5ECONObucks)andhaveanadultactasthebankertohandletheexchanges.UsetheU.S.currencytopurchaseitemsthatstudentswillwanttopurchase.InLesson12,studentswillbeabletousetheirremainingECONObucksonelasttimetopurchasetheseitems.Ifamoneyexchangeisnotappropriateforyourclientele,give5–10ECONObuckstoanyonewhocomestoshop.ONMARKETDAY:CompleteSteps1–5beforeopeningthemarkettoconsumers.1. BeforeMarketDaybegins,explaintothestudentsthatthevisitor
shopperswillpurchasefirst.TowardtheendofMarketDay,studentswillhaveanopportunitytopurchaseproductsfromeachother.However,theymightwanttosavesomeoftheirECONObucksforthefollowingweekwhenyouwillbeholdingasale.
2. GiveacopyofHandout11.3(TallySheet)toeachstudent.Havethemlisttheirproductsforsaleandthesellingprices.Demonstratehowtokeeptallies;studentswilltallyeverysalemadeduringMarketDay.(ThelasttwocolumnswillbecompletedduringLesson12Wrap‐Up.)
3. Arrangedesksortablestoresembleamarketarea.
4. Eachstudentwillselectalocationforhisorherbusiness.Makesurethatanyentrepreneurwhoneedselectricityisnearaplug.Iflongtablesareused,youmightwanttoassigntwostudentstoeachtable.
5. Studentswillsetuptheirbusinessareas,creatingappealingdisplaysbyusingtablecloths,baskets,etc.,andwillprominentlydisplay
112
advertisingpostersandproductprices.
6. Whenvisitorsbegintoshop,studentswillrecordsalesontheirtallysheets.
7. Asastudentsellsoutofaproduct,thestudentmay“closeupshop”andgoshoppingatotherbusinesses.Ifentrepreneursarenotsatisfiedwithhowtheirproductsareselling,theymaywishtohaveasalebymarkingdownthepricesontheiritems.
8. Towardtheendofasetamountofbusinesstime(perhaps30minutes),theremainingstudents(twoorthreeatatimesonotallbusinessesareclosedatthesametime)willhavetheoptiontoshopatotherbusinesses.
9. AttheendofMarketDay,collectthestudents’tallysheets.SaveforusewithLesson12.
10. Cleanupthemarketarea.
113
Handout11.1–Bills
BILLfor_______________
Youhaveearned_______ECONObucks.
Oweforsupplies:_______ECONObucks
OweforBusinessLicense:_______ECONObucks
Youhave_______ECONObucksremaining.
BILLfor
_______________
Youhaveearned_______ECONObucks.
Oweforsupplies:_______ECONObucks
OweforBusinessLicense:_______ECONObucks
Youhave_______ECONObucksremaining.
BILLfor
_______________
Youhaveearned_______ECONObucks.
Oweforsupplies:_______ECONObucks
OweforBusinessLicense:_______ECONObucks
Youhave_______ECONObucksremaining.
BILLfor
_______________
Youhaveearned_______ECONObucks.
Oweforsupplies:______ECONObucks
OweforBusinessLicense:_______ECONObucks
Youhave_______ECONObucksremaining.
BILLfor
_______________
Youhaveearned_______ECONObucks.
Oweforsupplies:_______ECONObucks
OweforBusinessLicense:_______ECONObucks
Youhave_______ECONObucksremaining.
BILLfor
_______________
Youhaveearned_______ECONObucks.
Oweforsupplies:______ECONObucks
OweforBusinessLicense:_______ECONObucks
Youhave_______ECONObucksremaining.114
Handout11.2
BUSINESS LICENSE Business Owner _____________________________________________
Product ____________________________________________________
Business Name ______________________________________________
Business Owner’s Signature __________________________________
Leader’s Signature __________________________________________
115
Handout11.3–TallySheetName___________________________________
ItemsforSale
Price Tallies
NumberofItemsSold
RevenuefromItemsSold
EXAMPLE:NecklaceBracelets
2Ebucks1Ebuck
lllllll
43
8Ebucks3Ebucks
TOTALAMOUNTOFREVENUE
116
Lesson12–Wrap‐Up
QuestionoftheDay:HowdoIknowifImadeaprofit?LessonComponents
Description
LessonDescription
ThissessionwillbeginbyanalyzingindividualbusinessesfromMarketDay.Studentswillcalculateprofitorlossfortheirbusinesses.Thentheywillreflectontheexperiencebycompletingaquestionnaire.ThefinalactivitywillbeasalewherestudentsmayspendtheirremainingECONObucks.
Concepts Profit Loss
Objectives Studentswillbeableto: Calculateprofitorlossforabusiness
TimeRequired
60minutes
Materials
Visual12.1(QuestionoftheDay)–onefortheinstructor Handout11.3(TallySheet)–completedbyeachstudentin
Lesson11 Handout12.1(WasYourBusinessaSuccess?)–onecopyper
student Handout12.2(ReflectionsofMarketDay)–onecopyperstudent
Procedure INADVANCE:Purchaseavarietyofdollarstoreitems(and/orhaveparentsdonatesmallitems)forthefinalsale.Makepricetagsanddisplayalloftheseitemsonatablethatstudentscanbrowse.1. DisplayVisual12.1(QuestionoftheDay)totheclass.Readthe
questionandtellstudentsthatthislessonwillhelpthemanswerthequestion.
2. DistributetheirTallySheetstothestudents(Handout11.3)fromMarketDayandapencil.HavestudentscountuptheirtallymarksandwritethetotalforeachproductinColumn4(NumberofItemsSold).Then,usingadditionormultiplication(price×numbersold),figurerevenuefromeachproductandrecordtheamountinColumn5.Writethetotalrevenueinthelastboxonthepage.
3. DistributeHandout12.1(WasYourBusinessaSuccess?).Workthroughthispagestepbystepasagroup,withthestudentseachrecordingtheirowninformation.Askthestudentshowmanymadeaprofit.(Answerswillvary.)
4. Timewillvaryforthisnextactivity.ExplaintothestudentsthatthosewhostillhaveECONObuckstospendaregoingtoparticipatein
117
asale.Anyonewhoisinterestedinbuyingitemsmaypurchasethemfortheamountonthepricetag.
Closure 1. DistributeHandout12.2(ReflectionsofMarketDay).Dependingontheagelevelofyourgroup,youmightwanttoallowabout5minutesforstudentstothinkaboutthequestionsandjotdownsimpleresponses.Thequestionswillthenbethebasisfordiscussion.
Assessment 1. AskstudentstoanswertheQuestionoftheDayeitherinwritingororally.
118
Visual12.1
119
Handout12.1–WasYourBusinessaSuccess?
Name___________________________________
Expenses Amount
Suppliestomakeproducts ______________ECONObucks
Wagespaidtoemployees ______________ECONObucks
Businesslicense ______________ECONObucks
TOTALEXPENSES ______________ECONObucks
TOTALREVENUE(moneyreceived)
______________ECONObucks
PROFIT/LOSS
(TOTALREVENUEminusTOTAL
EXPENSES)
______________ECONObucks
Remember:IfyourREVENUEwasmorethanyourEXPENSES,yourbusinessmadeaPROFIT.IfyourEXPENSESweremorethanyourREVENUE,yourbusinesshadaloss.DidyourbusinesshaveaPROFIToraLOSS?________________
120
Handout12.2–ReflectionsofMarketDay
Name___________________________________
1.Whatthingsdidyouparticularlylikeaboutyourbusiness?
2. Didyoursignhave(circleone):
Lotsofcolors? YesorNo Biglettering? YesorNo Clearprices? YesorNo Goodadvertising? YesorNo
3. Wereyousatisfiedwithyourdisplay(productpackaging,tablecloth,baskets,etc.)?Whyorwhynot?
4. Howwelldidyoupriceyourproduct?
5. Ifyourproductsweren’tsellingwell,whatdidyoudotoimprovesales?
6. Didyouuseanykindof“gimmick”toattractcustomers(freesamples,acostume,fancypackaging,etc.)?
7. WhatwouldyoudodifferentlyifweweretohaveanotherMarketDay?
8. WhatisonethingyoulearnedfromMarketDay?
121
Lesson 1
Lesson 1
Lesson 1
122
Lesson 2
Lesson 2
Lesson 2
123
Lesson 3
Lesson 3
Lesson 3
124
Lesson 4
Lesson 4
Lesson 4
125
Lesson 4
Lesson 5
Lesson 5
126
Lesson 5
Lesson 5
Lessons 5 & 6
127
Lessons 6 - 8
Lessons 6 & 8
Lesson s7 & 12
128
Lesson s 7 & 12
Lesson 7
Lesson 8
129
Lesson 8
Lesson 9
Lesson 9
130
Lesson 9
Lesson 9
Lesson 9
131
Lesson 10
government‐providedgoods&
servicesLesson 10
Lesson 10
132
Children’s Literature
Many of the concepts taught in Lessons 1‐12 can be reinforced through the use of children’s
literature. Below is a list of children’s books that are recommended. Most do not specifically
use an economic concept by name but provide an opportunity for the instructor to ask for
examples of a concept from the text.
Lessons 1‐4
Barbour, Karen. Little Nino’s Pizzeria. Sandpiper, 1990. Concepts: consumer, producer, capital
resources, human resources, goods, services.
Barton, Bryon. Building a House. Greenwillow Books, 1990. Concepts: goods, services.
Blood, Charles L. The Goat in the Rug. Aladdin, 1990. Concepts: consumer, producer, capital
resources.
Brett, Jan. The Mitten. Putnam Juvenile, 1996. Concepts: scarcity.
Carle, Eric. Pancakes, Pancakes!. Aladdin, 1998. Concepts: consumer, producer, capital
resources, human resources.
Gilman, Phoebe. Something From Nothing. Scholastic Press, 1993. Concepts: opportunity cost.
McClosky, Robert. Homer Price. Puffin, 2005. Concepts: producer, capital resources.
Murphy, Stuart J. Monster Musical Chairs. Perfection Learning, 2000. Concepts: scarcity.
Numeroff, Laura. If You Give a Mouse a Cookie. HarperCollins, 1985. Concepts: wants.
Paulsen, Gary. The Tortilla Factory. Sandpiper, 1998. Concepts: capital resources, human
resources.
Sturges, Philemon. The Little Red Hen Makes a Pizza. Puffin, 2002. Concepts: consumer,
producer, capital resources, human resources, goods, services.
Williams, Vera B. Something Special for Me. Greenwillow, 1986. Concepts: choice, costs,
benefits, opportunity cost.
Lessons 5‐7, 11 and 12
Bair, Shelia. Isabel’s Car Wash. Albert Whitman & Company, 2011. Concepts: advertising,
entrepreneurship, profit, loss, revenue.
Lindsey, Kathleen D. Sweet Potato Pie. Lee & Low Books, 2008. Concepts: entrepreneurship.
133
Milway, Katie Smith. One Hen – How One Small Loan Made a Big Difference. Kids Can Press,
Ltd., 2008. Concepts: entrepreneurship.
Murphy, Stuart J. Lemonade for Sale. HarperCollins, 1997. Concepts: advertising, profit.
Murphy, Stuart J. Slugger’s Car Wash. HarperCollins, 2002. Concepts: advertising, profit, loss.
Paulsen, Gary. Lawn Boy. Yearling, 2009. Concepts: profit, revenue.
Lessons 8‐10
Bair, Shelia. Rock, Brock, and the Savings Shock. Albert Whitman & Company, 2006. Concepts:
interest, saving, spending.
Groenewald, Catherine. Jingle‐Jingle In My Pocket. Jacana Media, 2011. Concepts: saving,
savings goal.
Kennedy, Frances. The Pickle Path Bathtub. Tricycle Press, 2004. Concepts: saving, savings goal,
opportunity cost.
Malaspina, Ann. Yasmin’s Hammer. Lee & Low Books, 2010. Concepts: income, saving, savings
goal.
McBrier, Page. Beatrice’s Goat. Aladdin, 2004. Concepts: saving, savings goal.
Mitchell, Margaree King. Uncle Jed’s Barbershop. Aladdin, 1998. Concepts: saving, savings goal.
Murphy, Stuart J. Less Than Zero. HarperCollins, 2003. Concepts: saving, spending, income,
borrowing.
Nolen, Jerdine. Pitching in for Eubie. Amistad, 2007. Concepts: income, saving.
Viorst, Judith. Alexander, Who Used to Be Rich Last Sunday. Atheneum Books for Young
Readers, 1987. Concepts: saving, spending.
Wells, Rosemary. Bunny Money. Puffin, 2000. Concepts: goods, saving, spending, savings goal.
Williams, Vera B. A Chair for My Mother. Greenwillow Books, 1984. Concepts: saving, savings
goal, income.
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The Council for Economic Education (CEE) is the leading organization in the United States that focuses on the economic and financial education of students from kindergarten through high school. For the past 60 years, our mission has been to instill in young people the fourth “R”—a real-world understanding of economics and personal finance. It is only by acquiring economic and financial literacy that children can learn that there are better options for a life well lived, will be able to see opportunity on their horizon line and, ultimately, can grow into successful and productive adults capable of making informed and responsible decisions.
www.councilforeconed.org
Teaching Opportunity®
122 East 42nd Street, Suite 2600, New York, NY 10168
Tel: (212) 730-7007