Financial Literacy Unit Plan

7/25/2019 Financial Literacy Unit Plan

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Unit Title: Financial Literacy

Grade level: 11thand 12th

Length of unit: 2 weeks

Stage 1 Desired Results

Meaning

Enduring Understandings/Generalizations:

Financial responsibility and planning are lifelong skills thatlead to successful financial independence.

Developing financial goals and establishing a budget areessential financial planning skills.

Credit is an essential tool used to establish financialindependence.

Maintaining good credit is the cornerstone for financial

responsibility.

Essential Questions:

How do individuals develop short- and long-term financial goals?

How do financial choices affect your standard of living?

Why is budgeting beneficial for personal finance?

How does an individual create a monthly budget?

What is the purpose of credit?

What is the relationship between debt and credit?

Why is it important to establish good credit?

What are the advantages and disadvantages of using credit?

Knowledge & Skills Acquisition

Learning Goals: (e.g., Iowa/Common Core standards.)

21.9-12.FL.1 Demonstrate financial responsibility and planning skills to achieve financial goals for a lifetime of financial health.

21.9-12.FL.2 Manage money effectively by developing spending plans and selecting appropriate financial instruments to maintain positivecash flow.

21.9-12.FL.3 Make informed and responsible decisions about incurring and repaying debt to remain both creditworthy and financiallysecure.


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Students will know

Key Financial Concepts:

o

Financial Goalo

Budgeto

Spending Plano

Incomeo Expenseo Savings

o Credito Debto

Bankruptcyo Credit score

Students will be able to

Develop short- and long-term financial goals.

Distinguish between wants and needs.

Identify the purpose of a budget.

Understand the components of a budget.

Establish budget goals based on personal needs and wants.

Demonstrate effective decision-making in spending.

Explain how budgeting is beneficial for personal finance.

Create a personal, monthly budget.

Identify the purpose of credit.

Identify ways to establish credit.

Identify personal responsibilities of using credit.

Explain the advantages and disadvantages of using credit.

Resources/Materials:

Giant sticky notes (4)

Individual whiteboards

Whiteboard markers

Budget sample

Budget template

Computers/iPads

Internet access

Comparison of Credit Card Costs and Featureso Cardtrak.com

Current Loan and Credit Card Rateso

Bankrate.com

Credit Law Informationo

Ftc.gov

o Federalreserve.govo Creditunions.iowa.gov


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Stage 2 Evidence (Assessment)

Types of assessment: Selected-Response (tests, quizzes); Personal Communication (interview, oral exam, discussion);Written Response (short constructed response questions, entrance/exit slips, essays); Performance Assessment (role-play,Simulation, labs, dramatization)

Pre-assessment:

Carousel Brainstorming Activity: Students will rotate around the classroom in small groups, stopping at 4 different stations forapproximately 3 minutes each. The topics at the stations will include financial literacy, financial goals, budgeting, and credit &debt. While at each station, students will activate their prior knowledge of these topics (what they already know), as well as whatthey want to know, through conversation with peers. Ideas shared will be posted at each station for all groups to read. Throughmovement and conversation, prior knowledge will be activated, providing scaffolding for new information to be learned in theproceeding lesson activity. If students know a lot about one or more of the topics, I will know not to spend as much time covering itin class and can focus on another topic they want to learn more about.

Formative Assessment:

Exit Slip:o

List 1 ofyour short-term goals and why? List 1 ofyour long-term goals and why?

o Why is budgeting beneficial for personal finance? List 2-3 reasons.

Think-Pair-Share:o

What does the term financial goal mean to you? And how to individuals develop financial goals?o

Why is it important to establish good credit?

Vocabulary quizzes (two) on words related to financial literacyo These will be the same vocabulary words and in the same format (matching words and definitions) they will see on the unit

exam

Cause and Effect Thinking Map: Good and bad examples of establishing credit.

Guest speaker summary/reflection (1-2 paragraphs) Conferencing: Check in with students while they are creating their personal, monthly budget


4/12

Summative Assessment:

Monthly Budget Plan: Students will create a budget for 1 month. In their monthly budget, they will include monthly income(paycheck), as well as their monthly expenses (rent, utilities, cell phone bill, car payment, gas money, groceries, savings, andentertainment). Each student will receive the same monthly income of $2,000. I will also provide a total for utilities ($180.50) andgroceries ($295.75). Then, students will research apartments, cars, and cell phone plans and pick the place they would like to live,the car they would like to drive, and which cell phone plan they will have. They will also use the short-term goal and long-term goal

to figure out how much they would need to save each month in order to reach the short-term goal in 6 months and the long-term goalin 1-5 years (depending on what it is). Once they pick a car, they will have to research its average miles-per-gallon to determine howmuch they will need to spend in gas per month if they travel 400 miles per month. The purpose of this assessment is for students to

live within their means.

End-of-Unit Exam: Students will be assessed on what they learned throughout the entire unit. The exam includes matchingvocabulary words with their definition, fill in the blank questions, short answer questions and an application problem. The types ofknowledge that will be assessed include key financial concepts (vocabulary), identifying the advantages and disadvantages of usingcredit, explaining why budgeting is beneficial for personal finance, how financial choices affect an individuals standard of living,and decision-making skills in real world situations.


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Week Day 1 Day 2 Day 3 Day 4 Day 5

1

Opening Exercise:

Carousel Brainstorming

Activity- Have studentscount off by 4's. Group 1

will start at the first stationtitled Financial Literacy.

Group 2 will start at the

second station titledFinancial Goals. Group 3with start at the third

station titled Budgeting.Group 4 will start at the

fourth station titled Credit& Debt. While at each

station, students willconverse with peers and (1)

write what they already

knowabout the topic, then(2) write what they wanttoknow about the topic. They

will spend 5 minutes ateach station, rotating

through all 4 stations. (25minutes)

Come back together whole

class and discuss the ideas

shared at each station. (15minutes)

Introduce the unitFinancial Literacy and

post the enduringunderstandsand learninggoals/standards on the

front board to remain forthe entire unit. (5 minutes)

Introduce the essentialquestionsfor the lesson (2

minutes)-

How do individualsdevelop short- and

long-term financialgoals?

How do financialchoices affect yourstandard of living?

Think-Pair-Share (3

minutes)- What does theterm financial goal mean

to you? And how doindividuals develop

financial goals?

Hand out individualwhiteboards and markers to

each student. Discussdefinition and examples

(30 minutes)-

Financial goal-goals that

individuals set thatrevolve around

finances andmoney, driven by

specific futurefinancial wants and

needs

Short-term goals-can be achieved in a

couple-6 monthso Video

games

Introduce the essentialquestionsfor the lesson (2

minutes)-

Why is budgetingbeneficial for

personal finance?

How does an

individual create amonthly budget?

Discuss definitions andidentify the

purpose/benefits of abudget (20 minutes)-

Budget- a plan forspending and savingmoney over a

specific period oftime

A budget helps youtrack over a specificperiod of time the

money that youearn (money

coming in) andmoney that you

spend (money going

out) each month Money is a limited

resource

The importance of

planning andfollowing that plan

Puts you in controlof your money

Determines howmuch money you

Monthly Budget Plan-Students will begin to

create their 1-month budget(45 minutes).

Students will get onthe iPads andresearch:

o

Apartmentsin the metro

area anddecide

which onethey can

afford torent

o Cars thatthey can

afford andthe average

miles-per-gallon to

determinehow much

they willneed to

spend in gaseach month

if they travel400 miles

each montho Cell phone

planso How much

their short-term and

long-termgoals are, so

Monthly Budget Plan-Students will continue to

work on their 1-monthbudget (45 minutes).

Students will get onthe iPads andresearch:

o

Apartmentsin the metro

area anddecide

which onethey can

afford torent

o Cars thatthey can

afford andthe average

miles-per-gallon to

determinehow much

they willneed to

spend in gaseach month

if they travel400 miles

each montho Cell phone

planso How much

their short-term and

long-termgoals are, so


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Enduring

Understandings:

Financialresponsibility and

planning arelifelong skills that

lead to successful

financialindependence.

Developingfinancial goals and

establishing abudget are essential

financial planningskills.

Credit is anessential tool used

to establishfinancialindependence.

Maintaining goodcredit is thecornerstone for

financialresponsibility.

Learning

Goals/Standards: 21.9-12.FL.1

Demonstrate

financialresponsibility and

planning skills toachieve financial

goals for a lifetimeof financial health.

21.9-12.FL.2

Manage money

o Clothes

o Concerttickets

!

Haveeach

student

writea

short-term

goalthey

haveon

theirwhit

eboard,then

holdit up

so Ican

viewthem

.

Long-term goals-can be achieved in ayear or more

o Laptop

o College

tuitiono Car

! Haveeachstude

nt

have to spend

during a specificperiod of time

Keeps you fromoverspending

Helps you create asavings plan for

future financialgoals

Helps youdetermine what youcan and cannot

afford to buy

It is financiallyresponsible

Identify the components of

a budget (8 minutes)- Income

o Salary

o Allowance

Expenseso

Rento

Car paymento

Cell phone

plano

Groceries

o

Utilitieso Clothing

o Entertainment

Savingso

Short-term

goalso Long-term

goalso Emergencies

they can

plan on howmuch they

will need toput into

savings eachmonth

Conferencing: Check in

with students while theyare creating their budget.

they can

plan on howmuch they

will need toput into

savings eachmonth

Conferencing: Check in

with students while theyare creating their budget.


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effectively by

developingspending plans and

selectingappropriate

financialinstruments to

maintain positivecash flow.

21.9-12.FL.3 Makeinformed andresponsible

decisions aboutincurring and

repaying debt toremain both

creditworthy and

financially secure.

write

along-

termgoal

theyhave

ontheir

whiteboa

rd,then

holdit up

so Ican

viewthem.

Distinguish thedifference between

wants and needso Want-

somethingyou would

liketo have,

notabsolutelynecessary

! iPod! Movi

eso Need-

somethingyou havetohave, cant

live without

Vocabulary Quiz & Exit

Slip Questions(5minutes)-

Financial goal

Budget

Income

Expense

Savings

Why is budgetingbeneficial for

personal finance?List 2 reasons.

Introduce the Monthly

Budget Planproject- Handout the directions sheet,

rubric, and template. Then,

read through the directions

with the students and allowfor questions (10 minutes)


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it

! Food! Shelt

er

Financial goals, aswell as wants and

needs are important

because these typesof financial choiceswill affect your

standard of living.

Income- money thatyou earn, money

in

Expense- moneythat you spend,

money out

Savings- moneythat you put away to

use later

Exit Slip- Students willestablish personal budget

goals based on their needsand wants- Remind

students, they will have toplan to save for this in their

personal, monthly budgetthey create (10 minutes)

List 1 of your short-term goals and why.Approximately how

much do you thinkit will cost.

List 1 of your long-term goals and why.Approximately how

much do you think


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it will cost?


10/12

2

Introduce the essential

questionsfor the lesson (2minutes)-

What is the purposeof credit?

What is therelationship

between debt andcredit?

Discuss definitions and

examples and purpose ofcredit (10 minutes)-

Credit- borrowingmoney to repay at alater date, loan

o Borrowing

lunchmoney froma friend

o Credit cards

o Car loans

Debt- money thatyou owe to a lender

Credit can be agreat tool, but can

also become a huge

financial burden ifnot used wisely

Discuss ways to establishcredit (13 minutes)-

Important: Toestablish credit forthe first time, you

must demonstratethat you are a

responsible

Introduce the essential

questionsfor the lesson (2minutes)-

Why is it importantto establish goodcredit?

What are the

advantages anddisadvantages of

using credit?

Discuss definitions andexamples (8 minutes)-

Credit score- anumber thatrepresents your

creditworthiness,

used to assess yourrisk to pay back andyour interest rate

Bankruptcy- Unableto pay your debts,insolvent

o Lose yourhouse

o Creditscore=0

Think-Pair-Share (5

minutes)- Now that youknow the relationship

between debt and credit,why is it important to

establish good credit?

Discuss ways to establishgood credit (10 minutes)

Only charge what

Vocabulary Quiz (5

minutes)-

Credit

Debt

Bankruptcy

Credit Score

Explore features and costsof various credit cards (10

minutes)-

CardTrak:Comparison of

Costs and Features:www.cardtrak.com

Current Loan andCredit Card Rates:

www.bankrate.com

Ask students which creditcard they would use (5

minutes)

Explore credit lawinformation on the iPads(10 minutes)-

Federal TradeCommission

website:www.ftc.gov

Federal ReserveSystem website:www.federalreserve

.gov

Iowa Division ofCredit Unions

website:https://creditunions.

iowa.gov

Guest Speaker-

Accountant from WellsFargo Bank talking about

credit (35 minutes)

Summary/reflection on

the guest speaker- 1 to 2

paragraphs including thefollowing (10 minutes):

1 new thing theylearned

1 thing that stoodout to them the

most

1 question they stillhave about credit

End of Unit Exam (45

minutes)

After students havecompleted the exam

and turned it in,they are expected to

silently read or

quietly work onunfinished work.


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individual

Obtain a credit card

Obtain a store creditcard

Purchasing a carand making car

payments

Purchasing a houseand making

mortgage payments

School loans

Weddings

Cause and Effect

Thinking Map-Good andbad examples of

establishing credit (10

minutes)

Discuss the responsibilities

of using credit (10minutes)-

Borrow only whatyou can repay

Read andunderstand the

contract your bank

provides

Pay debts promptlyand on time

Report lost or stolencredit cards

immediately

Never give yourcredit card

information unlessmaking a purchase

you can afford to

pay back

Make payments ontime every month

Avoid applying fornumerous creditcards/store cards

Discuss advantagesof

using credit (10 minutes)-

Building a creditline- establishing a

good credit history

Emergencies-provides money

immediately

Purchase power-easier to make bigpurchases

Discuss disadvantagesof

using credit (10 minutes)-

Interest rates-charge you a large

amount of intereston the balance you

dont pay off by theend of the month

Blowing yourbudget andincreased debt-

spend money thatyou dont have

Credit fraud- youmight youre yourcredit card or

someone might

Leave time for students toask any questions aboutwhat they have learned

throughout the unit. Handout study guide for the

exam (15 minutes).


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steal your credit

card/number andrack up debt

Documents

Financial Literacy Unit Plan