Laura Ewing President/CEO 1801 Allen Parkway, Houston, TX 77019 P: 713.655.1650

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Laura EwingPresident/CEO

1801 Allen Parkway, Houston, TX 77019

P: 713.655.1650 F: 713.655.1655

laura@economicstexas.org

Helping young people learn to think, choose, and make better economic and financial choices in a global economy

Cindy ManzanoDirector of Smarter Texas

1801 Allen Parkway, Houston, TX 77019

C: 713.503.5338F: 713.655.1655

cindy@economicstexas.orgwww.economicstexas.org

www.smartertexas.org

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Laura RosenOpportunityTexas CoordinatorCenter for Public Policy Priorities

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J. Pat Hickman, Chairman & CEO, Happy State Bank

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Cari Roach, Marketing Director

Stacie Smith, CRA Officer

Morgan Graser, Kids’ Bank Coordinating

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• Resources for lessons:• Financial Fitness For Life• Spiraled Curriculum

• Kindergarten – Grade 2• Grades 3 – 5 • Grades 6 – 8 • Grades 9 – 12

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What is personal financial literacy?

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What are some misconceptions elementary children have about money?

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Lesson 1The Grasshopper and the Ant

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“You can’t have your cake and eat it too.”

10Opportunity Cost

• Use time to play soccer or basketball• If I choose to play soccer during recess, my

opportunity cost is the chance to play basketball.• Use money to buy a toy or a snack

• If I buy a toy, my opportunity cost is the snack that I would otherwise have purchased with the same amount of money.

11Opportunity Cost

• Use time to watch TV or study for math test• If I use my time to watch television, my opportunity

cost is studying for my math test.• Use allowance to buy new video game or save it

• If I save my allowance to purchase a new video game, my opportunity cost is the things I would otherwise have bought with the same amount of money.

12Opportunity Cost

• Share an example using the term opportunity cost.• Why did you choose one alternative over

the other?• What influenced your choice?

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Let’s read The Grasshopper and the Ant

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Listen for these words:• Borrow• Spend• Save• Earn• Bank• Interest• Opportunity cost

15The Ant

• What is spending?• What is savings?• What was the ant’s messagethe moral of the

story?• What does this message mean to you?• How did the ant earn the money she was putting

in the bank?

16 The Grasshopper

• Think of time you made a choice, like the grasshopper, and later wished that you hadn’t made that choice.

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• Where did the ant save her money?

• How did the ant explain the concept of interest to the grasshopper?

• Why didn’t the grasshopper understand what the ant was saying about interest?

18Banks pay interest

19Trade-off

• Giving up some of one thing to get some of another thing.• Not buying a new television set

now in order to have money for new tires for the family car.

20Closure

• What did the ant say we give up when we spend?

• What did the ant call the next-best alternative that is given up when a choice is made?

• “What did the ant say the bank pays her to save?

• What is interest?

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Lesson 2Savings Starts with Wanting More – Part 1

22Goods and Services

•Repairing a bicycle•Grooming a dog•Watching a movie

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What do these 4 things have in common?

24Sources of income

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Chores as a source of income

26Saving Money

• Where can students keep their savings?

• Do you decide whether or not you will save money, or do your parents make that decision for you?

• Why do you save?

27Goal

28My Savings Plan

1. Fold a blank sheet of paper hamburger style.

2. Write your name on the top right.3. Write “My Savings Plan” on the front

cover.4. Decorate cover page only.

29My Savings Plan

1. Set a Goal2. Calculate a Savings Plan3. Where Will I Save My Money?

30Step 1: Set a Goal

• List 10 goods and services that you want to have.

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Lesson 3Savings Starts with Wanting More – Part 2

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Step 2: Calculate a Savings Plan

• Is your savings target realistic?

• Can you really set that amount of money aside each week or month?

• What can you do if the targeted amount is too much or too little?

• What will you give up by saving the targeted amount each week or month?

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Step 3: Where Will I Save My Money?

Incentive

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Step 3: Where Will I Save My Money?

Incentive - a reward or penalty that influences how people behave.

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Lesson 4Saving Starts with Wanting More – Part 3

36Deposit or Withdrawal

• Rodrigo put his birthday money into his account.

• Rodrigo wrote a check to pay the vet bill.

• Rodrigo used his debit card to get money out of his account.

• The bank pays you $1.25 in interest.

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• What was the beginning balance on October 31, 2009?

• How much did Ms. Savealot deposit during November?

• How much was withdrawn during November?

• How much interest was earned this month?

• What is the ending balance in the account on November 30, 2009?

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39Savings Account Register

in out

40Savings Account Register

41Savings Account Register

42Savings Account Register

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$100,000 Pyramid Game

• Choose your partner.

Game 1

• Goal• Services• Withdrawal• Opportunity cost• Interest

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Game 2

• Bank• Short-term goal• Income• Trade-off• Deposit

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Lesson 5It’s a Balancing Act

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47Budget

IncomeExpensesSaving

48Net Income

• GROSS INCOME – TAXES = NET INCOME• NET INCOME = $1200

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You will need Ex. 15.1, Act. 15.2, scissors and glue

50Fixed Expenses

• Remain the same month to month

51Variable Expenses

• Vary month to month

52Exercise 15.1

Answer questions 4 -10 on your own.

53Exercise 15.1

11. Write a mathematical sentence showng the relationship between the Trans’ income and expenses for June.

Expenses = Income

54Exercise 15.1 - Savings

• Did the Trans’ family budget for savings?• Why might they save?• Have you ever saved money to be able to buy

something in the future?• Have other members of your family saved for

somethng in the future?

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The Monroe Family

56Monroe Family Budget

• What changes would the Monroe family have to make in order to put aside $20 more per month for their vacation?

57Closure for Lesson 5

• What is income?• What are expenses?• What is a budget?• If a person’s expense are greater than his income,

what must he do to balance his budget?• What are variable expense? Can you give an

example?• What are fixed expenses? Can you give an

example?

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Money In, Money Out

Lesson 6

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Create a budget for Jordan.

60Closure

• What is a budget?• Why is having a budget important?• What is income?• What are expenses?• What does it mean to have a balanced budget?• What must you do if your expenses exceed your

income? • Why is it important to have a savings?

61SIFE: Students in Free Enterprise

62West Texas A&M SIFE

63Jean Walker, DirectorWest Texas Center for Economic EducationCollege of BusinessWest Texas A&M University