Financial Literacy for Children Minds Their. 2 What is Financial Literacy? Why do we need it?

Financial Literacy for

Children

Minds

Their

2

What is Financial Literacy?

Why do we need it?

3

What are some misconceptions elementary children have about money?

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Not developing a sound understanding of

personal financial literacy can result in . . .

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K-2 Materials

companion website: http://fffl.councilforeconed.org/

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Features of Financial Fitness for Life• Based on national standards• Engage students in the economic way of

thinking• Call for active learning• Address concepts in a developmentally

appropriate manner• Emphasize a variety of teaching methods

compatible with different learning styles• Reinforced by assessments• Invite parents to play a role

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Topics:

• Earning Income• Saving• Spending• Credit• Money management

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A Good Day for Money

Objectives

• List simple skills required for jobs (K.9C)

• Define money earned as income (1.9A)

• Differentiate between money received as income and money received as gifts (K.9B)

• Identify ways to earn income (K.9A)

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A Good Day for Money

Activity 1: Making a Pocket Graph

Count pockets

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Vocabulary:

• gift money• earn• income• pictograph• producer/worker• work skills

1

2

3

4

5

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Activity 1: Making a Pocket GraphNumber

of Pockets

Students

7

6

5

4

3

2

1

0

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Activity 1: Making a Pocket GraphNumber

of Pockets

Students

7

6

5

4

3

2

1

0

Analyze Pocket GraphHow many pockets do most of the students have on their clothing?

How many students have no pockets on their clothing?

How many students have 3 pockets on their clothing?

How many more students have 5 pockets than 3 pockets?

Do any groups have the same number of pockets? Which ones?

How many pockets are there in total, on all the clothing?13

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Activity 2: Exploring Human Capital (Work Skills)

Day 2

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Activity 3: Income Chain

Money We Receive

Income Earned Gift Money

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Activity 3: Income Chain

Money We Receive

Income Earned Gift Money

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Activity 3: Income ChainMoney We Receive

10

9

8

7

6

5

4

3

2

1

Earned Income

Gift Money

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Activity 3: Income Chain

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Extension

• Music: Earning Income sung to the tune of She’ll be Coming Around the Mountain

• Literature: Little Rabbit’s Loose Tooth by Lucy Bates

Earning Income (She’ll be Coming Around the Mountain)

• Verse:

We’ll be earning lots of income when we work (when we work).

We’ll be earning lots of income when we work (when we work).

We’ll be earning lots of income, We’ll be earning lots of income,

We’ll be earning lots of income when we work (when we work). 20

• Chorus:

We will sometimes get some money as a gift (as a gift).

We will sometimes get some money as a gift (as a gift).

We will sometimes get some money, We will sometimes get some money,

We will sometimes get some money as a gift

(as a gift).

How We Save

Objectives• Identify income as a means of obtaining

goods and services, oftentimes making choices between wants and needs (1.9B)

• Distinguish between spending and saving (1.9C)

• Calculate how money saved can accumulate into a larger amount over time (2.11A)

• Distinguish between a deposit and a withdrawal (2.11C)

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How We Save

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Lesson 6 Vocabulary

• Scarcity• Choices• Opportunity cost• Deposit• Withdrawal

• Save• Spend• Savings register• Number sentence• Comparison

statement

Activity 1: A Pocket Problem on the Floor

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What do you like to put in your pockets?

What is your opportunity cost?

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Activity 2: Helping Hands: Depositing or Withdrawing

Penny’s mom put money in her bank account every payday so that she would have money to spend during the upcoming holiday season. Was this a deposit or a withdrawal?

Penny shook her piggy bank to listen to the money rattle one last time. Then she opened it and took the money out and put it in her pocket to spend at the fair. Was this a deposit or a withdrawal?

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Activity 3: Game: Savings Roll Along

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Extensions• Math

• Music: I’ve got Money sung to the tune of Are

You Sleeping, Brother John? • Literature

Item wanted Price of item How much money I have

How much money I need

On-line tools and resources

• Clarifying Tasks

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Thank You from TCEE

and Valerie Johsevjohse@aol.com