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Stage 3 Teacher Resource
Pack
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Introduction Welcome to the Commonwealth Bank Foundation’s StartSmart Primary Teacher Resource
Pack (TRP).
This pack has been designed to complement the StartSmart Primary workshops. In it, you
will find post-workshop activities that build upon and reinforce the key concepts covered by
our program. These activities come in a wide variety of formats including worksheets,
teacher-led discussions, games and research assignments.
The Commonwealth Bank Foundation is dedicated to the development of financial literacy
skills in young Australians. A fundamental tenant of the Foundation is to provide educational
resources without promoting Commonwealth Bank products. The StartSmart Primary
program aims to engage students in an interactive and fun learning environment while
equipping them with essential money management skills, primarily through engaging and
educational workshops.
This pack contains activities tailored to the learning needs of Stage 3 students.
Thank you for your participation in the StartSmart program. If you require any further
information about our program, please visit www.startsmart.com.au.
©2010 Commonwealth Bank Foundation Pty Ltd
RESTRICTED WAIVER OF COPYRIGHT
The material in this document is subject to restricted waiver of copyright to allow the material contained in the
publication for use within a school, subject to the conditions below:
1. All copies of the printed material shall be made without alteration or abridgement and must retain
acknowledgement of the copyright.
2. The school or college shall not sell, hire or otherwise derive revenue from copies of the material, nor
distribute copies of the material for any other purpose.
3. The restricted waiver of copyright is not transferable and may be withdrawn in the case of breach of any
of these conditions.
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Contents Stage 3 Key Learning Outcomes Covered in this Pack ........................................................... 4
Curriculum Points Covered in this Pack ................................................................................. 4
Activities ................................................................................................................................. 6
Activity 1 – Consumer Rights and Responsibilities ............................................................ 6
Hidden Costs .............................................................................................................. 8
Text in to Win ............................................................................................................ 8
A Real Winner? ........................................................................................................ 11
Activity 2 – Comparative Shopping .................................................................................. 12
The Best Deal ........................................................................................................... 13
The Mobile Phone Plan for You ............................................................................... 15
Activity 3 – Budgeting ...................................................................................................... 16
Budget ..................................................................................................................... 18
Savings Plan ............................................................................................................. 19
Activity 4 – A School Fundraiser ...................................................................................... 21
Business Plan Brainstorm ........................................................................................ 24
Business Plan ........................................................................................................... 25
Business Accounts ................................................................................................... 28
Answers ................................................................................................................................ 31
Glossary of Key Terms .......................................................................................................... 32
Further Reading and Resources ........................................................................................... 34
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Stage 3 Key Learning Outcomes Covered in this Pack - Revise and reinforce the key concepts introduced in the Stage 3 workshop - Explore different ways to earn an income.
- Look at the important considerations for earning money in different ways, such as
obtaining parental consent, ensuring safety, and the importance of financial
education.
- Learn and understand the importance of having a savings goal and strategy.
- Balance a budget and get excited about the prospect of setting goals and saving to
meet them.
- Learn the importance of, and strategies for comparative shopping – remembering
the price of an item isn’t the only consideration in determining best value (e.g.
delivery costs, warranty and quality ratings should also be considered).
Curriculum Points Covered in this Pack National Financial Literacy Framework TAS Curriculum
NFLF KU5.1 Understand that buyers have rights and responsibilities. NFLF KU5.2 Understand that there are different forms of income. NFLF C5.1 Classify and compare goods and services. NFLF C5.2 Prepare simple plans and examine financial records. NFLF E5.1 Use initiative and explore opportunities that can or may contribute to income. NFLF R5.3 Explore the values associated with participating in an enterprise. NFLF KU7.1 Understand consumer rights and responsibilities. NFLF KU7.2 Understand that a range of factors affect choice. NFLF KU7.3 Understand the value of setting personal financial goals. NFLF C7.1 Justify selection of a range of goods and services. NFLF C7.2 Resolve consumer disputes.
TAS Mathematics Number S4S10.9 Providing opportunities to compare costs, determine value for money and assess the accuracy and appropriateness of advertising. TAS Mathematics Proportional Number S4S10.4 Explicitly teaching proportional reasoning in a limited range of situations e.g. checking “best buys” through unitary analysis. TAS EL Communicating S3.3 Understands why information is useful and valuable and why it should be used responsibly. TAS Mathematics Number S3S7.7 Focusing on the idea that money can be saved or spent. TAS Mathematics Measurement S3S9.9 Provide opportunities to solve money problems linked to real contexts e.g. sales at the school canteen and to prepare simple budgets for class events and personal spending. TAS Mathematics Number S3S7.6 Focusing on the idea that money is limited and can be obtained in a variety of ways e.g. salary, pocket money, gifts. TAS Mathematics Number S4S10.10 Exploring ways to develop budgets that consider particular needs and wants, and ways to keep simple financial records.
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NFLF C7.3 Develop simple budgets and financial records. NFLF E7.1 Make decisions to increase income and wealth. NFLF E7.2 Take informed risks associated with earning income.
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Activities
Activity 1 – Consumer Rights and Responsibilities
Learning Outcomes - Recognise that consumers have rights and responsibilities
Curriculum Points National Financial Literacy Framework TAS Curriculum
NFLF KU5.1 Understand that buyers have rights and responsibilities. NFLF KU7.1 Understand consumer rights and responsibilities. NFLF C7.2 Resolve consumer disputes.
TAS EL Communicating S3.3 Understands why information is useful and valuable and why it should be used responsibly. TAS Mathematics Number S4S10.9 Providing opportunities to compare costs, determine value for money and assess the accuracy and appropriateness of advertising.
Materials Required - One copy of the Hidden Costs and Text in to Win worksheets per student
(worksheets provided after this activity)
- Pencils/Pens
Running the Activity - Discuss consumer rights and responsibilities with students and the importance of
being wary of hidden costs and scams.
- Read the consumer rights and responsibilities narrative (provided below) to your
class and get students to brainstorm ways that scams can be avoided.
- Get students to describe times when they, or their parents, have exercised their
consumer rights.
- Following the discussion, get students to complete the Hidden Costs and Text in to
Win worksheets.
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Consumer Rights and Responsibilities Narrative Stacey was a teenager in Melbourne and at age 15, her mum gave her a mobile phone with
$20 a month for a prepaid phone card which bought $120 worth of texts, calls and data.
That’s plenty of credit, right?
Well there was just one problem. Stacey loved ring tones. One day when Stacey was
watching TV she saw an advertisement which said that if she texted a number, a free
ringtone would be sent to her phone.
That sounded like a pretty good deal, so Stacey texted in, and sure enough she received a
free ringtone which made her pretty happy. In fact, the phone company that she texted
started sending her a ringtone every day, which she thought was fantastic!
That is, until she ran out of credit on her phone 3 weeks before the end of the month.
Stacey couldn’t figure out what had gone wrong until she saw the ad again. At the bottom of
the ad in very small text it explained that just to text the number cost her $10. And that by
texting the number she had agreed to receive daily ringtones at $10 a pop!
Stacey panicked. She kept buying more credit so that she could call her friends and use her
phone, but the ringtones kept coming and her credit rarely lasted more than 1 or 2 weeks.
A few weeks passed and Stacey’s mum realised how much money Stacey was spending on
her phone. She wasn’t pleased at all, and Stacey got into a lot of trouble.
[Open up for brief discussion.]
This is an example of a scam – you think you’re getting a good deal, but there are lots of
hidden costs involved. What could Stacey do to try to fix the situation?
[Accept answers such as: cancel the ringtone service; call the phone company; text ‘STOP’ to
the number.]
What could Stacey have done to stop this from happening in the first place?
[Accept answers such as: carefully read advertisements and deals to understand what
you’re really signing up for; check terms and conditions before you buy.]
[Close off discussion.]
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Hidden Costs Hint: You might want to refer to the table on the following page!
Emily had a budget of $250. She wanted to buy an MP3
player online.
Online, she found MP3 players for three prices. One for $180, one for $200 and
one for $210. Emily decided to buy the cheapest player.
Which player did she chose? _____________________________________
Emily was very pleased with herself until… the invoice was sent to her and
included a $70 delivery charge!
How much would she ACTUALLY have to pay? _______________________
Emily then realised that her player didn’t come with a warranty included, so
she would have to spend another $20 on the warranty.
If she wants the warranty, how much will she pay? ____________________
How far over budget is she? ______________________________________
Emily went back online to check the other deals. The $200 player had a $20
delivery charge and warranty for $20.
The $210 player came with free delivery and warranty included.
So, which was ACTUALLY the best deal in the end? _____________________
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Hidden Costs (cont)
MP3 Player 1
MP3 Player 2
MP3 Player 3
Cost
$180
$200 $210
Delivery
$70
$20 FREE!
Warranty
$20
$20 FREE!
Total
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Just answer this simple question – How many letters in Vanuatu? Text to 0412 345 678.
TEXT COSTS $5.50. BY TEXTING IN, YOU ENTER THE DRAW TO WIN A HOLIDAY TO VANUATU AND SIGN UP TO THE SHADY QUIZ SERVICE FOR AN
$8.00 JOINING FEE. MEMBERS AGREE TO RECEIVE 10 SMS QUIZ QUESTIONS EACH MONTH AT THE COST OF $6.00 PER MESSAGE. TO UNSUBSCRIBE
TEXT ‘STOP’ TO 0412 345 678.
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A Real Winner?
Look at the advertisement above. Does texting in the correct answer guarantee that you will win the holiday? ____________________ How much does it cost to SMS your answer to the quiz company? (Hint: Check the fine print at the bottom of the advertisement.) ____________________ Are there any additional costs when you answer the question? ____________________ How many messages will you receive each month once you subscribe to the service? ___________________ How much will each additional message cost? ___________________ How do you unsubscribe to the quiz service? ___________________ If you text in to win how much will you spend in the first month? ___________________
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Activity 2 – Comparative Shopping
Learning Outcomes - Recognise the value of comparative shopping
Curriculum Points National Financial Literacy Framework TAS Curriculum
NFLF C5.1 Classify and compare goods and services. NFLF KU7.2 Understand that a range of factors affect choice. NFLF C7.1 Justify selection of a range of goods and services. NFLF E7.1 Make decisions to increase income and wealth.
TAS Mathematics Number S4S10.9 Providing opportunities to compare costs, determine value for money and assess the accuracy and appropriateness of advertising.
TAS Mathematics Proportional Number S4S10.4 Explicitly teaching proportional reasoning in a limited range of situations e.g. checking “best buys” through unitary analysis.
Materials - One copy of The Best Deal and The Mobile Phone Plan for You worksheet per student
- Pencils/Pens
Running the Activity - Remind students that comparative shopping is an effective way to save money when
purchasing items.
- Discuss common mistakes people make when comparative shopping, including:
o Buying more than you need to get a cheaper price per unit
o Ignoring hidden costs
o Ignoring your individual needs when trying to get the best deal
- Have students complete The Best Deal and The Mobile Phone Plan for You
worksheets.
- Discuss the answers with the class.
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The Best Deal
Help Sean to choose the best deals for him!
Shopping List
2 cartons of juice
1 pair of shoes
1 carton of milk
6 loaves of bread
Deal 1 Deal 2 How much will Sean Pay?
Juice $6.50
Juice $3.00
Shoes $14.00
Shoes $12.00
2 Bottles for $6.00
1 Bottle for $4.00
Hint: How much does Sean actually need? Can you store extra milk for later?
3 loaves for $9.00
2 loaves for $8.00
$
½ Price!
20% OFF!!
The Mobile Phone Plan for You
Match each individual with the best mobile phone plan for them!
Rob: Doesn’t call many people – just a few good friends. Loves to surf the internet on his phone looking at pictures of rabbits.
Eazee Phones:
$30-a-month plan. SMS – 55c MMS - $1.40
Calls – 40c per minute Internet data limit – 0.5MB
Deal: 600 free minutes each month
Jake: Loves to talk. Will talk on the phone for hours. If he has nothing left to say, he calls people and talks about how he has nothing left to say.
Phon-tech-ics:
$25-a-month plan. SMS – 40c MMS - $1.00
Calls – 45c per minute Internet data limit – 1MB
Deal: 300 free SMS each month; 100 free MMS each month
Sarah: Communicates only using SMS and MMS. Wishes she invented famous SMS phrases like LOL and LMAO. Trying to introduce the phrase YTKOVKYUDBBL to the SMS world.
Phones-R-Us:
$20-a-month plan. SMS – $1.00 MMS - $1.50
Calls – 30c per minute Internet data limit – 10MB
Deal: Free calls to any 3 friends
Activity 3 – Budgeting
Learning Outcomes - Recognise the value of saving
- Complete a simple budget
- Set a long-term savings goal
- Explore saving strategies
Curriculum Points National Financial Literacy Framework TAS Curriculum
NFLF C5.2 Prepare simple plans and examine financial records NFLF C5.3 Accurately complete simple financial forms NFLF R5.1 Value savings NFLF KU7.3 Understand the value of setting personal financial goals NFLF C7.3 Develop simple budgets and financial records NFLF E7.1 Make decisions to increase income and wealth
TAS Mathematics Number S3S7.7 Focusing on the idea that money can be saved or spent. TAS Mathematics Measurement S3S9.9 Provide opportunities to solve money problems linked to real contexts e.g. sales at the school canteen and to prepare simple budgets for class events and personal spending. TAS Mathematics Number S4S10.10 Exploring ways to develop budgets that consider particular needs and wants, and ways to keep simple financial records.
Materials Required - Paper
- Pencils/Pens
- One copy of the Budget worksheet per student
- Optional: one copy of the Budget and Savings Plan worksheet per student, per week
Running the Activity - Get students to construct a simple budget that details how they plan to spend their
pocket money that week.
- When making the budget students should consider:
o What items they need and what they want
o How much they want to save each week
o Whether there are any large expenses that they need to plan for
o They must be realistic about how much they will spend on ‘wants.’ It is not
realistic that they will save every cent, and spend nothing on treats for
themselves
- At the end of the week, get students to review their expenses and determine
whether they were able to stick to the budget they had created.
Activity Extension/Alternatives - For homework, ask students to bring in a picture, and find the cost, of an item under
$100 that they want to save for.
- For the first week of the activity, students record their expenses in the Budget
worksheet without attempting to save money.
- After the first week, get students to review their list of expenses and identify ways to
reduce their expenses. Examples include:
o Bring a packed lunch from home
o Buy treats in bulk from the supermarket rather than from the canteen
o Leave money at home so that they’re not tempted to spend it
- Students set a single goal for the week that will allow them to then reduce their
expenses, and detail this on the Savings Plan worksheet.
- Again, they record their expenses for the week on the Savings Plan worksheet.
- Following the second week, students compare their expenses from the first week
and their expenses from the second. They determine how much they saved, and how
much extra money they saved compared to week 1, and record this on the Savings
Plan worksheet.
- Students repeat this activity weekly, and keep track of their savings. Students can
calculate how long it will take to reach their savings goal.
Budget
Sources of Income Amount Earned
Expenses
Amount Spent
Balance (Hint: Subtract your expenses from your income.)
Savings Plan Name: __________________________________________________
Savings Goal: __________________________________________________
Price: __________________________________________________
Week: Amount Saved Saved more than week 1?
Amount more to save
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Total:
Week _______: This week I will save money by ___________________ ____________________________________________.
Income Amount
Pocket Money Other
Total Income:
Expenses Amount
Total Expenses:
Amount Saved
This week I saved __________ more than in Week 1.
Activity 4 – A School Fundraiser
Learning Outcomes - Explore creative ways to earn money and other rewards
- Complete a simple business plan
- Complete a simple budget
- Keep track of money
- Understand profit
- Recognise the responsibilities and costs associated with running a business
- Recognise the value of a financial education when undertaking business ventures
Curriculum Points National Financial Literacy Framework TAS Curriculum
NFLF KU5.2 Understand that there are different forms of income NFLF C5.2 Prepare simple plans and examine financial records NFLF C5.3 Accurately complete simple financial forms NFLF E5.1 Use initiative and explore opportunities that can or may contribute to income NFLF R5.3 Explore the values associated with participating in an enterprise NFLF KU7.1 Understand consumer rights and responsibilities NFLF C7.3 Develop simple budgets and financial records NFLF E7.1 Make decisions to increase income and wealth NFLF E7.2 Take informed risks associated with earning income
TAS Mathematics Number S3S7.6 Focusing on the idea that money is limited and can be obtained in a variety of ways e.g. salary, pocket money, gifts. TAS Mathematics Measurement S3S9.9 Provide opportunities to solve money problems linked to real contexts e.g. sales at the school canteen and to prepare simple budgets for class events and personal spending. TAS Mathematics Number S4S10.9 Providing opportunities to compare costs, determine value for money and assess the accuracy and appropriateness of advertising. TAS Mathematics Number S4S10.10 Exploring ways to develop budgets that consider particular needs and wants, and ways to keep simple financial records.
Materials - One copy of the Business Plan Brainstorm, Business Plan and Business Accounts
worksheets per student, or per group of students (worksheets provided after this
activity)
- Materials required to run a class business (this will vary from class to class)
- Pencils/Pens
Running the Activity - Ask students to decide upon a class savings goal – for example, money for a farewell
present to the school (if they are in Year 6) or a charitable donation.
- Get students to discuss ways that they could raise the money as a class.
- Students should consider the costs associated with running a business, as well as the
issues they should take into account when running a business including:
o Cost of materials. Note: students should research this option to ensure that
they have an accurate idea of how much materials will cost.
o Pricing their goods/services at a price that people are willing to pay (for
example, no one would pay $20 for a glass of lemonade).
o Whether people will want the good/service that they are providing (for
example, people would not pay for mud pies).
o Starting capital – how much should students spend on materials before they
start to earn money?
o Advertising – would posters or fliers around the school help sell their items?
How much should they spend on posters?
o Profit – students must sell goods and services for more than they cost to
make.
o The number of items that must be sold to make a profit.
o Other markets that the business will be competing against.
o How they will keep track of their money.
- Following the class discussion, either as a class, or in groups, fill out the Business Plan
Brainstorm worksheet
- Using the completed Business Plan Brainstorm worksheet/s, decide upon a class
business model. Ideas for businesses that the students could engage in include:
o Selling frozen fruit kebabs (i.e. Frozen fruit cubes on a skewer)
o A chocolate drive
o A car wash
o A cake stall
o A second hand goods stall/garage sale
- Fill in the Business Plan worksheets as a class.
- Run the business over a period of days or weeks.
- Have students keep track of expenses using the Business Accounts worksheets.
- Following the activity, get students to discuss their fundraiser and determine
whether it was successful or not. Students should consider:
o How much money did the business make?
o How much money did they expect the business to make?
o How much work was involved in running the business? Was the amount of
money earned proportional to the amount of effort that was put into the
business?
o What was their greatest accomplishment?
o If they were to do it again, what would they change?
o Is there a way that they can increase income without doing much more
work? (For example, are there additional products that they could sell at the
same time or additional people who want their services)?
Activity Extension/Alternatives - Before deciding upon a business plan, have students divide into smaller groups and
develop a number of business plans.
- Get students to conduct a school-wide survey to understand which products will
likely be the most popular and how much people would be willing to pay for
products.
- Using this research get students to decide on the best fundraising idea.
Business Plan Brainstorm
List 3 or 4 things that you are good at. 1. 3.
2. 4.
List 3 or 4 ideas on how you could use your talents to make a good or service that you might be able to sell. Remember it can’t be too hard to make this product. 1.
2.
3.
4.
Choose your favourite idea:
Who would buy this product?
How much time will it take to make the product?
How much would someone be willing to pay for your product?
Business Plan
Business Name: _______________________________________________
Product Sold: _______________________________________________
Target Profit: _______________________________________________
Picture of Product Sold
Business Logo
Business Plan
EXPECTED COSTS
Item Price
Materials Required:
Total Amount for Materials:
Materials for Advertising:
Total Cost of Advertising:
Other Costs:
Total for Other Costs:
TOTAL EXPECTED BUSINESS COSTS:
EXPECTED INCOME
Item Price
Product 1:
Amount you’re charging for product: ____________
Number of products you hope to sell: ____________
Amount you plan to earn from the product:
Product 2:
Amount you’re charging for product: ____________
Number of products you hope to sell: ____________
Amount you plan to earn from the product:
Product 3:
Amount you’re charging for product: ____________
Number of products you hope to sell: ____________
Amount you plan to earn from the product:
TOTAL PLANNED BUSINESS INCOME:
Business Accounts
COSTS
Item Price
Materials Purchased:
Total Amount for Materials:
Materials for Advertising:
Total Cost of Advertising:
Other Costs:
Total for Other Costs:
TOTAL BUSINESS COSTS:
INCOME
Item Price
Product 1:
Amount charged for product: ____________
Number of products you sold: ____________
Amount you earned from the product:
Product 2:
Amount charged for product: ____________
Number of products you sold: ____________
Amount you earned from the product:
Product 3:
Amount you charged for product: ____________
Number of products you sold: ____________
Amount you earned from the product:
TOTAL BUSINESS INCOME:
Total Expected Business Costs: _____________________________________
Total Expected Business Income: _____________________________________
Expected Profit: _____________________________________
Total Business Costs: _____________________________________
Total Business Income: _____________________________________
Profit: _____________________________________
Answers Hidden Costs
$180; $250; $270; $20; $210
A Real Winner
No; $5.50; $8.00 joining fee; 10; $6.00; SMS STOP to 0412 345 678; $73.50
The Best Deal
Deal 2, $6.00; Deal 1, $11.20; Deal 2, $4.00 (Note: deal 1 is the better price per bottle, but
Sean only needs one bottle of milk. If he gets deal 1 he will end up paying more money
and probably waste the milk.) Deal 1, $18.00. Total: $39.20
The Mobile Phone Plan for You
Rob – Phones-R-Us; Jake – Eazee Phones; Sarah – Phon-tech-ics.
Glossary of Key Terms Advertising A form of communication that attempts to persuade
potential customers to purchase a good or service.
ATM Automatic teller machine – a computerised device that allows individuals to use a bank card to access money in their bank accounts without going into a bank. It can also be used to check the balance of a bank account.
Bank Statement A document issued by the bank detailing how much money you have in your account, and transactions that you have conducted.
Budget A document that details how much money you are spending and how much you are earning. Can be used as a savings plan.
Comparative Shopping/Shopping Around
Comparing similar items to determine which product is the best product for you. In its simplest form, it involves comparing product prices, though it can also be used to compare the properties of different products.
Consumer Responsibilities What a consumer should always do when conducting a purchase.
Consumer Rights What a consumer should always get when conducting a purchase.
Credit Card A bank card that lets you borrow money from the bank, which you need to pay back.
EFTPOS Electronic funds transfer at point of sale – a system that allows you to directly pay for things that you buy with money that you have in the bank using a key card. It also allows you to withdraw cash at the same time as purchasing a product or service.
Foreign Currency The currency used in a country that is not Australia.
Hidden Costs Costs of an item that might not appear on the price tag.
Interest The cost of borrowing money. If you save money in the bank you are rewarded with interest. If you borrow money from the bank, you must pay interest.
Key Card A bank card that lets you spend money that you’ve put in the bank.
Needs Something that you must have to survive.
Peer Pressure The influence exerted by a peer group in encouraging a person to change their attitudes, values or behaviour to conform to group norms.
Receipt A document which provides proof of purchase. It is usually required to return items to a store.
Saving Putting money aside, in a bank or piggy bank.
Scam An offer which dishonestly tricks consumers into spending money.
Wants Things that you’d like to have but that you don’t need to survive.
Further Reading and Resources Australian Competition and Consumer Commission (ACCC) -
http://www.accc.gov.au/content/index.phtml/itemId/142
NSW Office of Fair Trading - http://www.fairtrading.nsw.gov.au/default.html
