MONEY MATTERS - XAPcalled “Money Matters.” In this unit, you’re going to learn all about money — how to keep track of what you earn, how to save it, and how to spend it wisely

UNIT

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MONEY MATTERS6

Money Matters 1: Setting a BudgetHow can budgeting now help me make a big purchase later?

Money Matters 2: Take it to the Bank!Why should I have a bank account and how do I use one?

Money Matters 3: Keeping Track of Your MoneyHow can I keep track of the money in my checking account?

Money Matters 4: Using Credit Cards with CareWhat are the advantages and risks of using credit cards?

Money Matters 5: Before You Sign: ContractsWhat are some important things to consider before signing a contract?

Lesson Descriptions

521

PLANNING PYRAMID

522 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.

Most Students Will:

•Recognize the need for savings in case of an emergency.•Givenaweeklyincome,figureoutnetpay,setasidemoneyfor

college, and create a budget for the remaining money.• Identifythingstoconsiderwhenpurchasingacellphoneplan.•Understandthatcreditcardcompanieschargefeesforlatepaymentsandinterestifthebalanceisn’tpaidinfulleachmonth.

•Understandthatpeoplewithpoorcreditreportsmayhaveto payhigherratesforcreditcards,carloans,andmortgages.

•Useacheckregistertorecorddepositsandchecks.• Identify credits, debits, and the account balance in an online

bank statement.

All Students Will:

• Recognizetheneedtoplanaheadwhensavingmoneyforcollegeexpenses.•Understandthatmoneychargedtoacreditcardmustbepaidback.•Understandthepurposeofacheck,andknowhowtowriteone.•Understandtheimportanceofknowinghowmuchmoneyyouhaveinyour

checking account.•Understandthatacellphonecontractmaycontainhiddenchargesbeyondtheadvertisedmonthlyprice.

•Understandthatpotentialemployersandlendershaveaccesstocreditreports.

•Use a budget as a guide whenconsideringpurchases.

Some Students Will:

GRADE 10, Unit 6, Money Matters

© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org. 523© 2012 Roads to Success; All Rights Reserved.

Did you know?

Roads to Success

Grade 10

A part-time job can give your child a new sense of financial freedom. It may be the first time that he has his own money and choices about how to spend it. This is a great time to show him how to make smart money decisions. Here aresome ideas about whereto begin:

Budgeting Basics: Help your child develop a budget to save and spend wisely. Talk with her to figure out what her big goals are. If she wants to save for a computer or for college, help her figure out a reasonable amount to set aside each week to reach her goal. While saving needs to be a priority,

some money should be left over for fun.

Keeping Track of Your Money: Students interested in opening savings and

checking accounts will need to know how to keep track of deposits and withdrawals. Show your child how you keep track of this information using savings passbooks, check registers, or online banking.

is a new program designed to help middle and high school students prepare for their futures. This newsletter will keep you posted on what we’re doing in school, and how families can follow through at home.

For more information about Roads to Success, please visit our website:www.roadstosuccess.org

An $8,000 credit card debt, at a rate of 18% interest, will take over 18 years to pay off and cost more than $27,000 if you pay only the minimum amount of $125 each month.

http://www.practicalmoneyskills.com(online calculator) In 10th grade, students in

Roads to Success participate in five real-life lessons on managing money. In this unit students take on the role of a high school senior preparing for life after graduation. Here is what they will learn:

•Budgeting: Students calculate their take-home income from a summer job, then create a budget that allows them to save

for college with money left over for day-to-day expenses.

•Banking: Students examine the difference between a savings and a checking account. They practice using a checkbook register and analyzing online bank statements.

•Credit Cards: After examining the dangers of credit card debt for recent

college graduates, students learn about the advantages and disadvantages of credit cards.

•Contracts: Students examine cell phone plans to identify best values and hidden costs.

Managing Money

The Real Cost of Credit: Credit cards can be useful tools for managing money, but their misuse can cause financial hardship. Explain how credit cards work and what happens if a customer doesn’t pay a bill on time. Let your child know that finance charges and late fees can cause consumers to spend a lot more on products than they originally cost.

Resources: For more information, check out these websites:

• www.360financialliteracy.org/Life-Stages/Parents-Children/

• www.practicalmoneyskills.com

Grade by Grade

Money Matters

Family Newsletter

525© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.

MONEY MATTERS1Setting a Budget

Approx.45minutes

I. WarmUp:ImagineThis... (5 minutes)

II. Summer Income, Savings, andExpenses(15minutes)

III. SummerBudget:Doesit AddUp?(10minutes)

IV. SavingfortheUnexpected (10 minutes)

V. WrapUp(5minutes)

Duringthislesson,thestudent(s)will:

• Basedonafictionalscenario,determinehowtosetaside$1,000forcollegeexpensesinthefall.

• Determinetheirsummerexpenses,includingwhattheywillneedtocovertransportation,food,entertainment,andclothing.

• Developandreviseabudgetbasedontheirexpectedincomesandexpenses.

• Modifytheirbudgetstohandleunexpectedexpenses.

❑ STUDENT HANDBOOK PAGES: • StudentHandbookpage132,

ThisIsYourLife

• StudentHandbookpage133, Income Worksheet

• StudentHandbookpage134, WeeklyExpensesWorksheet

❑ FACILITATOR PAGES: • Facilitator Resource 1, Chance Cards

(one card for every two students)

• Facilitator Resource 2, Income Worksheet Answer Key

❑ Calculators(oneperstudent)

❑ Overheadprojector

AGENDA MATERIALS

OBJECTIVES

• Howcanbudgetingnowhelpmemakeabigpurchaselater?

TheBIG Idea


OVERVIEW ...........................................................................................

In this lesson, studentswillbeginaunitonMoneyMatters inwhich they’llexplore importantfinancial tools and concepts, like budgets, deductions, and bank accounts. Throughout thisunit, they will be following a fictional scenario in which they are high school seniors who have beenaccepted tocollege in the fall,andwillbebusywitha full-time jobover the summer.In this lesson, they’re settinga summerbudget thatwill allow them toputaside$1,000 forcollegeexpenses.They’lldeterminetheirsummerincome,learnaboutthepercentageofincomethat’ssubtractedfortaxes,andunderstandthedifferencebetweentheirgrossandnetincomes.Studentswilldetermineiftheirincomewillcovertheirsummerexpenses,suchastransportation,food,andentertainment.Finally,they’llbegivena“chancecard”withanunexpectedexpense,andconsiderwhyit’simportanttosetasidesomeextrasavingswhendevelopingabudget.

PREPARATION ....................................................................................

❑ Listtheday’sBIG IDEA and activities on the board.

❑ Writetheday’svocabularywordsanddefinitionsontheboard.

❑ Thefollowinghandoutsneedtobemadeintooverheadtransparenciesorcopiedontochartpaper:• Student Handbook page 132, This Is Your Life

• Student Handbook page 133, Income Worksheet

• Student Handbook page 134, Weekly Expenses Worksheet

❑ Print out Facilitator Resource 1, Chance Cards and cut out the individual cards. Note:Youwillneedtoprintthispagetwicetoprovideonecardforeachpairof students.

❑ For Activity I, Warm Up: Imagine This..., write the following three questions on chart paperbeforeyouteachthislesson.a. HowmuchwillIneedtosetasideforcollegeeachweek?b. HowwillIspendtheremainingmoney?c. HowcanIplanforunexpectedexpenses?

Grade 10, Money Matters 1: Setting a Budget


VOCABULARY .....................................................................................

Budget:Aplanthathelpspeopletrackspendingsotheycangetthethingstheyneedand want without running out of money.

Income: Themoneyyouhavecomingin.

Deductions:Moneytakenoutofyourincomefortaxes.

Expenses: Whatyouspendmoneyon.

Gross Income: Themoneyyouearnbeforetaxesaretakenout.

Net Income: Your“takehome”payorpaycheckamount; themoneyyouearnafter taxesaretakenout.

IMPLEMENTATION OPTIONS ...........................................................

In Activity III, Summer Budget: Does It Add Up?,studentsmayneedtoseeanexampleofhowtomaketheirbudget.Youmaywishtomodelthisfortheclassinthecolumnmarked“1stTry,”makingsuretolistexpensesthattotalmorethan$96.

In Activity IV, Saving For the Unexpected, you may change the scenarios to better fit your students’interestsandcostsinyourarea.



ACTIVITY STEPS ..................................................................................

I. Warm Up: Imagine This… (5 minutes)

1. SAY SOMETHING LIKE:Welcome,everybody.Thisisthefirstweekofanewunitcalled“MoneyMatters.”Inthisunit,you’regoingtolearnallaboutmoney—howtokeeptrackofwhatyouearn,howtosaveit,andhowtospenditwisely.Throughouttheunit,you’regoingtotakeonanewpersona.You’regoingtoimagineyou’renotsophomores,buthighschoolseniors.Asseniors,you’llhavesomeimportantfinancialdecisionsandplanstomake,whichyou’llbedoingthroughoutthisunit.Forexample:Howcanyouplanabudgettosavemoneyforthefuture?Howdoyoukeepyourmoneysafeandsecure?Howdoyoukeeptrackofyourmoneyonceit’sinthebank?What’sthebestwaytochoose—anduse—creditcards?Ifyoudecidetouseyourmoneyforacellphoneplan,howdoyoureviewacontracttomakesureit’sinyourbestinterest?Asyouanswerthesequestions,you’lllearnaboutbanks,checkingandsavingsaccounts,ATMsandonlinebanking,creditcards,andcontracts.

2. [HandoutcopiesofStudent Handbook page 132, This is Your Life. Have a volunteerreadthisaloudtotheclass.Encouragestudentstolistenclosely,asthey’llneedthisinformationinthelesson:

You’reaseniorinhighschool.It’sMarchandyou’vebeenacceptedtocollege.Yourfamilyhasagreedtopayforsomeofthetuition,andyou’reworkingoutagoodfinancialaidpackage,too.However,yourealizeyou’restillgoingtoneedabout$1,000asemester—or$2,000total—tocoversomeimportantexpenses,likebooksanddailylivingcostslikelaundry,schoolsupplies,andanoccasionalpizzaoutwithfriends.Youknowthatifmoneygetstight,thereareplentyofworkopportunitiesoncampus,butyoureally want to have this money saved before you begin school.

Luckyforyou,youalreadyhaveagreatafter-schooljob,andyourbosshaspromisedyoufull-timeworkoverthesummer.You’vefiguredoutyoucansaveabout$80aweekinyourpart-timejobuntilschool’sout.BytheendofMay,you’llhaveput$1,000asideforyourcollegefund.Thatmeansyou’llneedtosave$1,000duringJune,July,andAugusttomakeyourgoalof$2,000.]



3. SAY SOMETHING LIKE:Anyquestionssofar?OK,nowit’stimetofigureoutyourbudgetforthesummer.(Displaythefollowingthreequestionsonchartpaper.)

Therearethreequestionsyouneedtoanswer:• HowmuchwillIneedtosetasideforcollegeeachweek?

• HowwillIspendtheremainingmoney?

• HowcanIplanforunexpectedexpenses?

That’sthegoalfortoday’slesson.

II. Summer Income, Savings, and Expenses (15 minutes)

1. SAY SOMETHING LIKE:OK,weknowwe’llhave$1,000savedfromourafter-schooljob,soweneedtosave$1,000tomeetourgoalof$2,000forourcollegefund.Ifwe’reworkingfor10weeksoverthesummer,howmuchdoweneedtosaveeachweektosaveanadditional$1,000?($100aweek)

Thenextstepistofigureoutaweeklybudgettoseehowwe’regoingtosavethatmoneyandcoverourothersummerexpenses.What’sthenextthingweneedtodeterminebeforewecanfigureoutthisbudget?(Figureouthowmuchwe’regoingtomakeeachweek.)Let’sdothistogether.PleaseturntoyourStudent Handbook page 133, Income Worksheet.

[ProjectatransparencyofStudent Handbook page 133, Income Worksheet for the classtosee.]

2. [Asaclass,reviewthedetailsforthefull-timejobontheIncome Worksheet.Thenworktogethertocalculatethe“WeeklyGrossIncome.”]

SAY SOMETHING LIKE:Nowyoumightbethinkingthateveryweek,yourpaycheckwillbe$290.Butinreality,yourgrossweeklyincomeisdifferentfromyourtake-homepay,oryourpaycheck,becausemoneyisdeducted,ortakenout,ofeverypaycheckyouearn.Thesearecalleddeductions.Doesanyoneknowwhatdeductionspayfor?

That’sright—taxes.Themaintaxesdeductedfromyourpaycheckarefederalincometax,stateandlocalincometax,andSocialSecuritytax.Federal,state,andlocalincometaxespayforthingslikeroads,themilitary,schools,parks,andpoliceandfireservices.SocialSecuritytaxhelpspaybenefitstopeoplewhoaredisabledorretired.



3. SAY SOMETHING LIKE:Onthisworksheet,we’reestimatingthatabout30%isdeductedfromyourpaycheck.However,thisamountmayvary,dependingondifferentfactorslikewhereyoulive,howmuchyoumake,andhowmanypeoplearefinanciallydependentonyou,suchaschildren.

4. SAY SOMETHING LIKE: Let’sfigureoutyouractualpaycheckif30%isdeductedfortaxes.Wedeterminedthatourgross weekly income, or the money you earn before taxesaretakenout,is$290.Yourtaxesarebasedonyourgrossincome.

5. SAY SOMETHING LIKE: Nowlet’sfigureoutyourdeductions.If30%isdeductedfortaxes,youcancalculatethedeductionsbymultiplyingyourgrossincomeby30%or0.3. Use your calculators to see what the deductions would be.

[Onthetransparency,write$87nexttolineB,Deductions.]

Note:Ifyouaren’tearningafull-time,year-roundsalary,youmaygetsomeofthismoneybackasataxrefundinthespringbyfilinganincometaxreturn.

6. SAY SOMETHING LIKE:Sohowmuchmoneywillbeinyourpaycheck?Subtractyourdeductions from the gross weekly income.What’sleftisyournet weekly income. Use your calculators to see what the net weekly income would be.

[Onthetransparency,write$203nexttolineC,NetWeeklyIncome.]

Areyousurprisedatthedifferencebetweenyoursalaryandwhatyouactuallygettotakehome?

7. SAY SOMETHING LIKE:Nowlet’sfigureouthowmuchofthatpaycheckwe’llhaveleft over after we set some aside for our college fund. Remember, we need to save $1,000over10weeks.Sohowmucharewesettingasideeachweekforourcollegefund?($100aweek)

[WritethisonlineD,“WeeklySavingsforCollegeFund.”]

8. SAY SOMETHING LIKE:Howmuchisleftoverforotherexpenses—ormaybealittleextrasavings?

[Model how to subtract the Weekly Savings for College Fund (line D) from Net Weekly Income(lineC),andwrite$103onlineE.]



III. Summer Budget: Does It Add Up? (10 minutes)

1. SAY SOMETHING LIKE:Willthisbeenoughtocoverourexpenses?Let’sfindout!NowI’dlikeyoutoturntoyourStudent Handbook page 134, Weekly Expenses Worksheet. Thisiswhereyou’llfigureoutyourweeklysummerspending.Takeamomenttothinkabouthowmuchyou’llneedtospendeachweekineachcategory.Writetheamountnexttoeachcategoryinthecolumn“1stTry,”thentotalyourweeklyspending.LookbackatyournetweeklyincomeonyourIncome Worksheet. Will you haveenoughtocoverthoseexpenses?(Areyourtotalexpenseslessthan$103?)Ifnot,tryreworkingyourexpensesinthenextcolumnunder“2ndTry.”

IV. Saving for the Unexpected (10 minutes)

1. SAY SOMETHING LIKE:Ifyouhadmoneyleftover,whowouldspenditonsomethingextra?[Showofhands.]Whowouldputitintosavings?[Showofhands.]Whyaresavingsimportant?[Allowstudentstorespond.Thenexplainthatsavingshelpcoverunexpectedexpenses,whichareboundtohappentoyounomatterhowcarefullyyoubudget.]

2. SAY SOMETHING LIKE:Afterall,justlikeyoucan’tpredictwhathappensinlife,youcan’tpredictwhatexpensesmightpopup.I’dlikeeachofyoutopartnerwiththepersonsittingnexttoyou.I’mgoingtohandeachpaira“chancecard”withoneoftheseunexpectedexpenses.Don’tfocusonwhatexpenseyouweregivenoritscost.Instead,justthinkabouthowyoucanadjustyourbudgettocoverthisexpense.

3. [Hand out Facilitator Resource 1, Chance Cards,onetoeachpair.]

4. SAY SOMETHING LIKE:Ifyoudon’thavealittleextrasavings,howwillyouhandlethisexpense?

5. [Havepartnersdiscussstrategiesforcoveringtheextraexpense,thensharetheirideaswiththegroup.]

6. SAY SOMETHING LIKE:Supposeyouhadbeensettingaside$15aweekforemergencies.Howmanyweekswouldittaketosaveforthisexpense?Whatexpenseswouldyoucutfromyourweeklybudgettomakethispossible?



7. [Have students use the third column on their Weekly Expenses Worksheet,“SavingforEmergencies,”torefiguretheirbudgets,allowing$15aweekforsavings.]

V. Wrap Up (5 minutes)

1. SAY SOMETHING LIKE:Whofeltlikeyoucouldhandleyourexpenses,saveforyourcollegefund,andputalittleextraintosavingsfortheunexpected?

Ifyoufeltlikeyoujustcouldn’tcoveryourexpensesinreallife,whataresomethingsyoucoulddo?(Cutbackexpenses,getanotherjob—orabetter-payingjob)

2. SAY SOMETHING LIKE:Whyisitimportanttosetabudget?Whydoesithelptosetagoalwhencreatingabudget?Whatifyoudecidedtospendasmuchmoneyasyouwantedinthefirstpartofthesummer,thenstartsavinglaterinthesummer?

3. SAY SOMETHING LIKE:Thiswasagreatstarttoour“MoneyMatters”unit.Nextweek,we’regoingtotalkaboutwhattodowiththemoneyyou’resavingforcollege.Howdoyoukeepitsafeandsecureoverthesummer?Asyouprobablyguessed,nextweekisallaboutchoosingabankaccountthat’srightforyou.



Grade 10, Money Matters 1: Setting a BudgetFacilitator Resource 1, Chance Cards

Chance Cards

Congratulations,graduates! Youandafewfriendshosta

graduation cookout. But burgers andsoftdrinksaren’tfree.

Expense:$125

Oops,sorrybro.Youhada fenderbenderinyourbrother’scar. Youpromisetopayforthedamage.

Expense:$200

DidsomeonesayTHEMEPARK? Yourfriendsaregoingonadaytrip toathemeparkonSaturday andyoudon’twanttomissit.

Expense:$50

Whoeverheardoflabfees? Youjustfoundoutyourfallsemester

chemistry class is going to cost a little more.

Expense:$150

Ah....CHOO! Yournoseisrunning,yourheadis throbbing,andyoucan’tstop sneezing.Takeadayoffwork.

Expense:$40 (deductionofoneday’spay)

Whatarebestfriendsfor? Youhelpyourfriendmovetocollege,

whichtakesalittleextragas money this week.

Expense:$50

A new school, a new you. Yougetacoolnewhaircut beforesummer’sout.

Expense:$40

Dorm room design 101. Youtalktoyournewroommateanddecide

on matching sheets and comforters.

Expense:$50

Needtunestostudy? Youfindtheperfectportable stereo for your dorm room.

Expense:$100

Happy4thofJuly! ThelocalJuly4thfestivalis

this weekend, and you need cash for rides, tickets, and food.

Expense:$20

HappyBirthday! Yourfriend’sbirthdayiscomingup, andyouknowjustwhatshewants.

Expense:$15

Go,State! Youspotacoolsweatshirtfor yournewuniversity—onsale.

Expense:$20


Grade 10, Money Matters 1: Setting a BudgetFacilitator Resource 2, Income Worksheet (Answer Key)

Income Worksheet (Answer Key)

Usethisworksheettofigureouthowmuchmoneyyou’lltakehomeeachweek,andhowmuchyou’llhavelefttospendafterputtingmoneyintoyourcollegefund.

Details for Full-Time Summer Job

Pay:$7.25/hour

Hours:40/week

Workweeks(June–August):10weeks

Weekly Income

A) Gross Weekly Income $ 290 (hourly rate X total weekly hours)

B) Deductions $ 87 (30%ofA)

C) Net Weekly Income $ 203 (A–B=C)

Available Money for Savings and Expenses

D) Weekly Savings for College Fund $ 100 ($1,000/10weeks)

E) WeeklySpendingMoney $ 103 (C–D=E)


Grade 10, Money Matters 1: Setting a BudgetStudent Handbook, This is Your Life

132

This is Your LifeForthenextfewweeks,ourclasswillbeparticipatinginanewunitcalled“MoneyMatters.”Throughoutthisunit,youwillimagineyourselfinthefollowingsituation:

You’reaseniorinhighschool.It’sMarchandyou’vebeenacceptedtocollege.Yourfamilyhasagreedtopayforsomeofthetuition,andyou’reworkingoutagoodfinancialaidpackage,too.However,yourealizeyou’restillgoingtoneedabout$1,000asemester—or$2,000total—tocoversomeimportantexpenses,likebooksanddailylivingcostslikelaundry,schoolsupplies,andanoccasionalpizzaoutwithfriends.Youknowthatifmoneygetstight,thereareplentyofworkopportunitiesoncampus,butyoureallywanttohavethismoneysavedbeforeyoubeginschool.

Luckyforyou,youalreadyhaveagreatafter-schooljob,andyourbosshaspromisedyoufull-timeworkoverthesummer.You’vefiguredoutyoucansaveabout$80aweekinyourpart-timejobuntilschool’sout.BytheendofMay,you’llhaveput$1,000asideforyourcollegefund.Thatmeansyou’llneedtosave$1,000duringJune,July,andAugusttomakeyourgoalof$2,000.


Grade 10, Money Matters 1: Setting a BudgetStudent Handbook, Income Worksheet

133

Income WorksheetUsethisworksheettofigureouthowmuchmoneyyou’lltakehomeeachweek,andhowmuchyou’llhavelefttospendafterputtingmoneyintoyourcollegefund.

Details for Full-Time Summer Job

Pay:$7.25/hour

Hours:40/week

Workweeks(June–August):10weeks

Weekly Income

A) Gross Weekly Income $ (hourly rate X total weekly hours)

B) Deductions $ (30%ofA)

C) Net Weekly Income $ (A–B=C)

Available Money for Savings and Expenses

D) Weekly Savings for College Fund $ ($1,000/10weeks)

E) WeeklySpendingMoney $ (C–D=E)


Weekly Expenses WorksheetUsethisworksheettofigureoutyourexpenseseachweek.Thinkabouthowyou’llgettowork,whatyou’lleatforlunch,whatyou’lldoinyourfreetime,andthe extrasyoumightbuyforcollege.

Possible Expenses (Foreachcategorybelow,pickoneofthethreeoptions.Thenrecordthevalue into your budget below.)

TransportationCar=$30.00/week(leave 15 minutes before work)

Carpoolorsubway=$20.00/week(leave45minutes before work)

Bicycleorwalk= $0.00(leave90minutesbefore work)

Food Eat out with co-workers =$7.00/day

Buy lunch from work cafeteria=$3.00/day

Carrypackedlunch=$1.00/day

EntertainmentGo with friends to a movie,popcorn,andsoda=$20.00/week

Gobowlingorplayvideo games at an arcade=$10.00/week

Rent movie and havefriendover=$5.00/week

Clothing Buynamebrand=$40.00 ShopatGAP=$25.00 Shopatdiscount/outlet

clothingstore=$15.00

Expense Details 1st Try 2nd Try Saving for Emergencies

Transportation

Food

Entertainment

Clothing

Other: ________________________

$___________

$___________

$___________

$___________

$___________

$___________

$___________

$___________

$___________

$___________

$___________

$___________

$___________

$___________

Savings$15

Total Weekly Expenses $___________ $___________ $___________

Grade 10, Money Matters 1: Setting a BudgetStudent Handbook, Weekly Expenses Worksheet

MONEY MATTERS2Take it to the Bank!

Approx.45minutes

I. WarmUp:WhyaBank? (5 minutes)

II. CheckingAccounts:PuttingYourMoney In (15 minutes)

III. CheckingAccounts:GettingYourMoneyBackOut (20 minutes)

IV. WrapUp(5minutes)


• Understand the difference between checking and savings accounts.

• Discusswaystodepositandwithdrawmoneyfromacheckingaccount.

• Reviewandcompleteadepositslip.

• Reviewandcompleteapersonalcheck.


SampleDepositSlip

• StudentHandbookpage136, BlankDepositSlip

• StudentHandbookpage137, SamplePersonalCheck

• StudentHandbookpage138, Blank Personal Check

❑ FACILITATOR PAGES: • Facilitator Resource 1, Chance Cards

(onecardperstudent)


AGENDA MATERIALS

OBJECTIVES

• WhyshouldIhaveabankaccountandhowdoIuseone?

539

TheBIG Idea



OVERVIEW ...........................................................................................

Inthislesson,studentswilllearnwhybankaccountsareasafeplacetokeeptheirmoney,andunderstandthedifferencebetweencheckingandsavingsaccounts.Thenthey’ll learnhowtodepositmoneyintoacheckingaccountandfilloutasampledepositslip.Next,they’ll learnaboutthedifferentwaystogetmoneyoutofacheckingaccount.Inthisactivity,they’llreviewthepartsofapersonalcheck.Finally,they’llreceivea“chancecard”withanexpenseforwhichthey’llwritetheirownsamplecheck.

PREPARATION ....................................................................................

❑ ListtheBIG IDEAandtheday’sactivitiesontheboard.


❑ Thefollowinghandoutsneedtobemadeintooverheadtransparenciesorcopiedontochartpaper:• Student Handbook page 135, Sample Deposit Slip

• Student Handbook page 137, Sample Personal Check

❑ Print out Facilitator Resource 1, Chance Cards and cut out the individual cards. Note:Youmayneedtoprintthispagetwoorthreetimestoprovideonecardperstudent.

❑ YoumaywishtomakeextracopiesofStudent Handbook page 138, Blank Personal Check in case students make mistakes or want to write out a check for a second chance card.

Grade 10, Money Matters 2: Take it to the Bank!


VOCABULARY .....................................................................................

ATM: ShortforAutomatedTellerMachine;amachinethatallowsyoutogetcashormakedepositsanytimeoftheday.

Checking Account:Abankaccountthatallowsyoutowithdrawmoneyormakepaymentsusing checks.

Deposit: Toputmoneyintoabankaccount.

Savings Account: A bank account that earns interest on the money held.

Withdraw: Totakemoneyoutofabankaccount.

IMPLEMENTATION OPTIONS ..........................................................

DO NOW(Youmay choose topresent theWarmUpactivityasawrittenDoNow. Present the shortpassageandquestionsontheboardoroverhead,andhavestudentswriteonly their answers onindexcards.)

Questions:1. Imagineyoujustgotyourfirstpaycheckofthesummer.Wherecanyougo

tocashthischeck?

2. What do you think the difference is between a checking account and a savingsaccount?

[Give the students three minutes to answer these questions, and then begin with the Warm Up aswritten.]

In Activity III, Checking Accounts: Getting Your Money Back Out, you may wish to have your studentswriteouttwochecks.Aftertheyhavecompletedtheirinitialcheckwiththeirfirstchancecard,havethestudentsswitchchancecardswithapartnerandwriteoutasecondcheck.

Youmaywishtocontactalocalbanktoseeifyoucansecuremockcheckbooksforthedurationof the unit.



I. Warm Up: Why a Bank? (5 minutes)

1. SAY SOMETHING LIKE:Welcomeback,everybody.Thisisthesecondweekofour“MoneyMatters”unit.Lastweek,youalltookonanewpersonaasahighschoolseniorwho’sheadedforcollegeinthefall.Youalsosetaweeklybudgettofollowsoyoucouldsavemoneyforthefall.Thisweek,you’rethesameseniorinhighschool.Butnowsummerhasbegun,andyoujustreceivedyourfirstpaycheck.Nowyou’rewonderingwhattodowiththemoneytokeepitsafe,butstillhaveeasyaccesstoitforyourdifferentsummerexpenses.

Wheredoyouthinkyoushouldputyourmoney?[Takeanswersfromafewvolunteers.]

2. [Discusswhyputtingyourmoneyinabankisthebestoptioninthissituation.Somestudentsmaybefamiliarwithcheck-cashingbusinesses,placesthatwillcashchecksonthespot.Theproblemis,theseplaceschargeapercentageofthecheckamount,andsometimesaddotherhighfees.Andkeepingcashathomehasitsownrisks.First,thecashcouldgetlostorstolen.Second,itmightbetooeasytospendthecashifit’srightatyourfingertips.]

SAY SOMETHING LIKE:Placingyourmoneyinabankaccountkeepsitsafeandsecure.It’salsoeasytokeeptrackofyourmoneyinthebank.Andasyou’regoingtolearninthislesson,it’sveryeasytoputmoneyinandtakemoneyoutofabanking account.

3. [Review the difference between checking and savings accounts. • Checking accounts are accounts that allow you to withdraw money easily, such as

throughATMsorbywritingchecks.Onlyyoucanwriteachecktotakemoneyoutof your account.

• Savings accountsarebankingaccountsthatpayinterestonthemoneyheld.]

SAY SOMETHING LIKE:Whydoyouthinkit’sagoodideatoputmoneyintoasavingsaccountifyou’resavingforsomethingspecial?(It’seasytotrackyoursavingsandmoredifficultto“dipinto”foreverydayspending.Mostimportantly,thesavingsaccountwillpayyouinterest,oracertainpercentageofthemoneythatyouhaveinyouraccount.Thebankpaysyouinterestinreturnforusingyourmoneytomakeotherloans—eventhoughyoucangetitbackanytimeyouwant.Inotherwords,themoneyinyoursavingsaccountcouldcontinuetogrowjustbysittingthere!Ofcourse,the

ACTIVITY STEPS ..................................................................................



amountofinterestyouearndependsonthreethings:theinterestrate,theamountofmoney you have in the account, and the length of time your money is in the account.)

II. Checking Accounts: Putting Your Money In (15 minutes)

1. SAY SOMETHING LIKE:Fortherestofthislesson,we’regoingtofocusoncheckingaccounts.Onceyousetupacheckingaccount,thefirstquestionis,How do I put money into my account? In other words, how do you depositmoneyintoyouraccount?

Youcandepositeithercashorchecksmadeouttoyouintoyouraccount.AsImentionedearlier,youhavejustreceivedyourfirstpaycheck.Toputthismoneyintotheaccount,thefirstthingyouhavetodoisendorse,orsign,yourpaycheck.Todothis,youturnyourcheckoverandyou’llseealineatthetopthatwillreadsomethinglike“Endorsehere.”Youjustsignyournameonthatline.Andifyou’regoingtodepositthemoneyintoyourcheckingaccount,it’salsoagoodideatowrite“Depositinaccount#12345678,”orwhateveryourcheckingaccountnumberis.

Thenyoufilloutadepositslip.Whenyouopenacheckingaccount,you’llreceivechecksanddepositslipswithyourname,address,andaccountnumbers.

2. SAY SOMETHING LIKE:Let’stakealookatanexampleofadepositslip.Pleaseturn to your Student Handbook page 135, Sample Deposit Slip. [Place Student Handbook page 135, Sample Deposit Sliponanoverheadprojector.Revieweachoftheitemsonthedepositslip.Asyoudiscusseachitem,fillitouttomodelhowtocompleteadepositslip.]

3. SAY SOMETHING LIKE:Nowit’syourturntofillinyourowndepositslip.TurnthepagetotheStudent Handbook page 136, Blank Deposit Slip. Carefully read the directionstoseewhatitemsyou’redepositingintoyouraccount.Thencompletethedepositslip.

4. [Whenstudentshavecompletedthedepositslip,askthemtosharethenettotalofthedeposit.]

III. Checking Accounts: Getting Your Money Back Out (20 minutes)

1. SAY SOMETHING LIKE:Congratulations!Youhavesuccessfullyputmoneyintoyourcheckingaccount.Butwhatifyouneedtotakemoneyout?Afterall,you’reboundtohavealotofsummerexpenses.Well,thereareafewdifferentwaystowithdraw,



or take out, money from your account. Here are some of the most common ways to withdrawmoney:

• Withdrawal at the bank:Whenyoumakeadeposit,youcouldhavethemgiveyousomecashbackratherthandepositingtheentireamountintoyouraccount.

• Withdrawal at an ATM(AutomatedTellerMachine):Whenyouopenacheckingaccount,you’llreceiveanATMcard,whichwillallowyoutomakewithdrawalsatanyATMthatisaffiliatedwithorhasanagreementwithyourbank.Beware,youmaybechargedfeesforsomeATMwithdrawals.Forexample,ifyouuseanATMatabankthat’snotyours,yourbankcouldchargeyouafeefromabout$2.00toover$5.00.(Thefeesvaryfrombanktobank.)AndifyouuseanATMatanon-bankingbusiness,suchasaconveniencestore,chancesareyou’llpaythebusinessafeeaswell.You’llprobablyuseATMsoftentoaccessmoney,sowhenyouopenabankaccount,lookforbankswithATMsnearwhereyouliveandwork.Also,look for banks that offer low withdrawal fees.

• Using a debit or bank card:Youcanusethesecardsatstoresjustlikecreditcards.Thedifferenceis,thechargeisautomaticallywithdrawnfromyouraccount.

• Paying a bill online: Many banks offer online banking, which allows you to access informationaboutyourcheckingaccountonline.Italsoletsyoupaybillsonline.Forexample,manyphoneandpowercompaniesofferonlinebillpaying,whichallows you to transfer the amount of your bill directly from your account to the company—withouthavingtowriteacheck.

• Writing a personal check: Apersonalcheckis awrittenorderthatrepresentscash.Youcanwriteacheckfortheexactamountofapurchase,andthecheckissafer to carry than cash since only you can write a check from your account.

2. SAY SOMETHING LIKE:Let’stalkmoreaboutpersonalchecks,sinceyou’regoingtobewritingmanyoftheseinyourlifetime!PleaseturntoyourStudent Handbook page 137, Sample Personal Check.

[Placethispageonanoverheadprojector.Asaclass,reviewthedifferentfeaturesofapersonalcheck.Asyoudo,discussandmodelhowtoproperlyfillineachfield.Thefeaturesyouwillrevieware:• Yournameandaddress• Date• Payee• Amountofcheck(innumbers)• Amountofcheck(inwords)• Memo



• Signature• Identificationnumbers(forbank,account,andcheck)]

3. SAY SOMETHING LIKE:Nowit’stimetowriteyourownchecks!First,pleaseturntoyour Student Handbook page 138, Blank Personal Check.

[Handeachstudentone“chancecard,”whichyoucutoutfromFacilitator Resource 1, Chance Cards.]

Youareeachgoingtoreceiveone“chancecard”describingasummerexpenseyoumustcover.Readyourcardcloselytoidentifythepayeeandtheamountofthecheck.Thencompletetheblankchecktocoverthatexpense.Ifyoumakeamistake,justwritethewordVOIDinallcapsacrossthecheckandbeginagain.

4. [Givestudentsafewminutestocompletetheircheck.Thenhavethemsharetheircheckwithapartner.Ifstudentsareunsureifthey’vecompletedacheckcorrectly,havethemaskyoutoreviewit.]

IV. Wrap Up (5 minutes)

1. [Toendthelesson,reviewsomeoftheadvantagesofcheckingaccountsandpersonalchecks.

Explainthatanotheradvantageyoudidn’tdiscussisthatit’seasytotrackthemoneyyouspendusingpersonalchecks.Wheneveryouwriteapersonalcheckandthepersonorbusinesscashesit,thecheckwillappearonyourbankstatement.Thatmakesiteasytogobackandseewhereyouspentyourmoneyandcheckyourcurrentbalance.]

2. SAY SOMETHING LIKE:Keepingtrackofyourcurrentbalanceisextremelyimportant.Afterall,youcan’twriteapersonalcheckformorethanthetotalinyourcheckingaccount.Andthat’swhatwe’regoingtotalkaboutnextweek—keepingtrackofthemoney in your checking account.



Chance Cards

Youandafewfriendsareplanninga graduation cookout.

Youspend$35.23attheGreen Grocery on burgers and sodas.

Yourbrother,SamSmith,lentyouhis car for the day. After a fender bender,youpayhim$192.55toreimburse him for the damage.

Youandyourfriendshead tothethemeparkMooseMountain

onSaturday.Youbuya T-shirtfor$15.42.

Youhavetopayyourstateuniversity$150.00tocover

lab fees for the fall semester chemistry class.

You’vegotaterriblesummercoldandstopatTownDrugsforsomemedicineandnosedrops($9.88).

You’rehelpingyourfriendmoveandyoupulloveratQuik-Stopto

fillupthecarfor$27.43.

Youjustgotagreatnewhaircut atDoorDyefor$45.00

(includingtip).

Yournewroommate,ChrisJones,bought the matching sheets and comfortersthetwoofyoupicked

out together. Reimburse your roommate$48.71foryourset.

Youbuytheportablestereoforyour dorm room. It was on sale, only$102.67atMusicNow.

AttheJuly4thfestival,you donate$15.00toGreenStreams,an organization working to clean

the waterways in your area.

YourjustboughtyourfriendanewCDforherbirthday.Youfoundit

for$14.58atTownTunes.

Youbuyacoolsweatshirtfor yournewuniversity—onsale atSportsGearfor$21.72.

Grade 10, Money Matters 2: Take it to the Bank!Facilitator Resource 1, Chance Cards


Sample Deposit SlipHere’salookatasampledepositslipyouwouldcompletewhenyoudepositcashand checks into your checking account.

FIRST BANKJohnDoe123 Main StreetAnytown,USA12345

Date_________________________________________ deposits may not be available for immediate withdrawal

_____________________________________________ Signhereifcashreceivedfromdeposit

1234 5678 123456789 00123 1234567

Dollars CentsCASH

Checks

Subtotal

LessCash

TOTAL

A. Yournameandaddress.

B. Thedateyouaremakingthedeposit.Noticethephraseunderneath:“Depositsmaynotbeavailableforimmediatewithdrawal.”Thismeansthatitmaytakethebankafewdaystoprocessyourdepositandmakethemoneyavailabletoyou.Soifyoudeposit$200intheafternoon, that money may not be in your bank account that evening if you return to make an ATMwithdrawal.

C. Yoursignature(onlyincludeifyouwishtoreceivecashbackfromyourdeposit.)

D. Numbers that identify the bank and your account number.

E. Listallcashyoumaybedepositing,suchasagraduationgiftortipsfromarestaurant.

F. Listanychecksyouaredepositing.Listeachcheckseparately,placingthechecknumberinthefirstcolumn.

G. Thesubtotalofallcashandchecksyouaredepositing.

H. Theamountofcashyouwouldliketoreceivebackfromthedeposit.(Besuretoincludeyoursignature on line C.)

I. Subtracttheamountofcashbackfromthesubtotal.Thisisthetotalamountyouaredepositingintoyouraccount,alsocalledthe“NetDeposit.”

A

B

C

D

E

F

G

H

I

Grade 10, Money Matters 2: Take it to the Bank!Student Handbook, Sample Deposit Slip


Blank Deposit SlipNowmakeyourowndepositintoyourcheckingaccount.Youjustreceived thefollowing:

• $25.00incashfromyourAuntSallyasagraduationgift.

• Acheck(#345)for$83.00fromyournewroommatetoreimburseyouforanew mini-fridge for your dorm room.

• Yourfirstpaycheck(#5432)for$203.

Filloutthedepositslipbelowtodeposittheseitemsintoyourcheckingaccount.

FIRST BANKJohnDoe123 Main StreetAnytown,USA12345

Date_________________________________________ deposits may not be available for immediate withdrawal

_____________________________________________ Signhereifcashreceivedfromdeposit

1234 5678 123456789 00123 1234567

Dollars CentsCASH

Checks

Subtotal

LessCash

TOTAL

Grade 10, Money Matters 2: Take it to the Bank!Student Handbook, Blank Deposit Slip


Sample Personal CheckPersonal checks come in many different colors and designs, but they all include the samebasicinformation.Here’salookatthefeaturesyou’llfindoneverycheck,includingdirectionsonhowtofillouteachitemcorrectly.Whenyoufilloutacheck,alwayswriteclearlyanduseaninkpen.

A. Yournameandaddress.

B.Thechecknumber,whichisdifferentforeachcheck.

C. Thedateyouarewritingthecheck.Youcanwriteinwordsornumbers,butbesuretoinclude the year.

D. Thenameofthepersonorcompanyyouarewritingthecheckto.Thisiscalledthepayee.

E. Theamountofthecheckinnumbers,suchas$75.25.Writethenumbersclosetothedollarsign($)sothere’snoroomforanyonetoaddextranumbers.

F. Theamountofthecheckinwords.Startingatthefarleft,writethedollaramountfollowedbythewordand,thentheamountofcentsoverthenumber100.(Forexample:Seventy-fiveand25/100.)Drawalinethroughanyspaceleftontheline.

G. Thereasonforthecheck,oranyinformationrequestedbythepayee.Forexample,ifyou’rewritingachecktothephonecompany,youwouldwriteyouraccountnumberhere

H. Yoursignature,whichshouldalwaysbewrittenthesameway.

I. Numbers that identify the bank, your account, and the check number.

FIRST BANK 567JohnDoe123 Main StreetAnytown,USA12345 Date________________________

Pay to the order of _____________________________________________________ $______________

________________________________________________________________________________________

Memo_____________________________ _______________________________________________

1234 5678 123456789 00123 1234567

A

D

F

G

C

E

H

I

Grade 10, Money Matters 2: Take it to the Bank!Student Handbook, Sample Personal Check

B


Blank Personal CheckMakeoutthecheckbelowtocovertheexpenseonthechancecardyoureceived.Remembertowriteclearlyanduseapen.Ifyouneedtostartagain,writeVOIDinlarge letters across the check and start again with the second check below.



________________________________________________________________________________________

Memo_____________________________ _______________________________________________

1234 5678 123456789 00123 1234568



________________________________________________________________________________________

Memo_____________________________ _______________________________________________

1234 5678 123456789 00123 1234569

Grade 10, Money Matters 2: Take it to the Bank!Student Handbook, Blank Personal Check

MONEY MATTERS3Keeping Track of Your Money

Approx.45minutes

I. WarmUp:WhereDidtheMoneyGo?(10minutes)

II. HowToKeepTrack:MakeSureItAddsUp(15minutes)

III. OnlineStatements:JustLogOn!(15 minutes)



• Learnabouttherisksofnotknowingyourcurrentaccountbalance.

• Reviewacheckregisterandpracticeaddingtheirownwithdrawalsanddepositstotheregistertofindtheircurrentbalance.

• Review an online statement and use the statement to answer questions.


What’sInYourWallet?

• StudentHandbookpage140, Checkbook Register

• StudentHandbookpage141, Online Statement

• StudentHandbookpage142, OnlineStatementQuestions

❑ FACILITATOR PAGES: • Facilitator Resource 1, Chance Cards,

onecardperstudent

• FacilitatorResource2,What’sInYourWallet?AnswerKey

• Facilitator Resource 3, Online Statement QuestionsAnswerKey

❑ Calculators(oneperstudent)


AGENDA MATERIALS

OBJECTIVES

• HowcanIkeeptrackofthemoneyinmycheckingaccount?

551

TheBIG Idea



OVERVIEW ...........................................................................................

Inthislesson,studentswilllearnhowtotrackthemoneyintheircheckingaccount.First,they’ll

discoverwhykeepingtrackoftheircurrentbalanceissoimportant—especiallywhenwriting

personalchecks.Thenthey’llreviewacheckregisterandpracticeaddingtheirownwithdrawals

ordepositstotheregister.Next,they’llreviewanexampleofanonlinestatement—afastand

convenientwaytocheckacurrentaccountbalance.Finally,they’llusethatonlinestatementto

answeraseriesofquestionsaboutrecentwithdrawalsanddeposits.

PREPARATION ....................................................................................



❑ Print out Facilitator Resource 1, Chance Cards, and cut out the individual cards. Note:Youmayneedtoprinttwoorthreecopiesinordertoprovideonecardtoeach student.

❑ Thefollowinghandoutsneedtobemadeintooverheadtransparenciesorcopiedontochartpaper:• Student Handbook page 140, Checkbook Register

• Student Handbook page 141, Online Statement

VOCABULARY .....................................................................................

Checking Account:Abankaccountthatallowsyoutowithdrawmoneyormakepaymentsusing checks.

Credit: Themoneyyouputintoabankaccount.

Debit: Themoneyyoutakeoutofabankaccount.

Deposit:Toputmoneyintoabankaccount.

Withdraw: Totakemoneyoutofabankaccount.

Grade 10, Money Matters 3: Keeping Track of Your Money


ACTIVITY STEPS ..................................................................................

I. Warm Up: Where Did the Money Go? (10 minutes)

1. SAY SOMETHING LIKE:Welcomeback,everybody.Lastweek,youlearnedaboutcheckingaccounts,andevenpracticedfillinginyourowndepositslipsandpersonalchecks.Asyou’veseen,youcouldhavealotofmoneygoinginandcomingoutofyouraccountoverthesummer.Thisweek,we’regoingtotalkaboutkeepingtrackofallthatmoney.You’veprobablyheardabout“balancing”yourcheckbook.Ifitsoundscomplicated,don’tworry.Tobalanceacheckbook,youusethesamebasicskillsyouusetokeeptrackofthemoneyinyourwallet.

2. SAY SOMETHING LIKE:Let’sstarttodaywithasimpleexampleofkeepingtrackofmoney. Please turn to your Student Handbook page 139, What’s In Your Wallet? [Displaythisstudenthandbookpageontheoverhead.Haveadifferentvolunteerreadeachofthethreeparagraphs,makingsuretounderlinethekeyinformationontheoverhead.Then,modelhowtofillinthechartforSaturdayandSunday.Studentswillthencompletetherestofthechartontheirown.]

3. SAY SOMETHING LIKE:Asyoujustsaw,keepingtrackofyourmoneydoesn’thavetobedifficult—butitisextremelyimportant!It’sespeciallyimportantwhenyoustartmakingmoneyofyourown.Eventhoughyoumightfeellikeyou’vegotlotsofmoney,youcanspenditmuchfasterthanyouthink.Andifyoudon’tkeeptrackofthemoneyinyourcheckingaccount,youcouldgetintotrouble.Imaginethis:

You’vesetupyourbankaccount,you’vedepositedyourfirstpaycheck,andyou’veevenwrittenafewchecks.Nowit’stimetogetoutsomecold,hardcashforanightoutwithyourfriends.Youpulluptothedrive-thruATMandpunchin$25.00.You’rewaitingpatientlyforsomefreshbillstocomeslidingoutoftheATM,butinsteadthewords“InsufficientFunds”blinkonthescreen.What’sup?

4. SAY SOMETHING LIKE:Whathappened?Youweretryingtotakeoutmorethanyouhaveinyouraccount—andasyouknow,youcan’tdothat!IfyoutrytomakeawithdrawalatthebankorgetmoneyoutofanATMwhenyouhaveinsufficientfunds,thebanksimplywon’tgiveittoyou.

Butwhathappensifyoutrytowriteacheckformorethanyouhaveinyourcheckingaccount?Thisisanentirelydifferentstory,becausethebankcan’twarnyouwhenyou’rewritingacheckformoremoneythanyouhaveinyouraccount.Whenyouwrite



acheck,you’retellingthebanktotakemoneyoutofyouraccountandpaysomeone.Writingacheckformoremoneythanyouhaveinyouraccountisaproblembecausethepersonyou’vewrittenachecktocan’tbepaid.Writingabadcheckisillegal,embarrassing,andexpensive.

5. SAY SOMETHING LIKE:Whyiswritingabadcheckexpensive?[Allowstudentstorespond.]That’sright—itwillcostyoumoremoney.That’sbecausewhenyouwriteacheckthatyouraccountcan’tcover,youhavetopayafine.Somebankschargeasmuchas$30ifacheck“bounces,”orcan’tbecoveredbyyouraccount.Butyoumayowemoremoneytothepersonorbusinessyouwrotethecheckto,sincesomebusinesses charge for receiving a bad check. Say you write a check at the grocery storeandthere’snotenoughmoneyinyouraccounttocoverit.Youhavetopaytwofines—$30tothebankandanother$20tothegrocerystore.That’s$50justfornotkeepingtrackofyourmoney.

6. SAY SOMETHING LIKE:Asyoucansee,keepingtrackofyourmoneyisveryimportant.BeforeyouwriteacheckortakemoneyoutofanATM,you’llwanttoknowyouraccountbalance—ortheamountofmoneyyoucurrentlyhaveinyouraccount.

II. How To Keep Track: Make Sure It Adds Up (15 minutes)

1. SAY SOMETHING LIKE:Oneofthebestwaystokeeptrackofyourmoneyiswithyourcheckbookregister.You’llreceiveacheckbookwhenyouopenacheckingaccount,andeverycheckbookcomeswitharegister.Thisisahelpfulwaytotrackyourchecks,withdrawals,anddepositsandkeepupwithyourcurrentbalance.

Let’stakealookatacheckbookregistertogether.PleaseturntoStudent Handbook page 140, Checkbook Register.[Projectacopyofthehandbookpageontoanoverheadprojector.]

Asyoucansee,thischeckbookregisterhasbeenfilledouttoshowthedateandamountofcheckswritten,ATMwithdrawals,andanydeposits.Thestartingbalanceiswrittenatthetop.

3. [Asaclass,reviewthecheckbookregisterandanexampleofacheck,anATMwithdrawal,andadeposit.Pointoutthatthemaindepositorcreditinformationisincludedonthewhiteline.Directlybelowonthegraylineistheplacetoaddthereasonforthepurchaseunder“Description.”Inthefarright-handcolumn,theycandeterminetheircurrentbalancebyaddingdepositsandsubtractinganypaymentsor



withdrawals.Havestudentsusetheregistertoanswerthefollowingquestions:• Howmanytimesdidyouputmoneyintoyouraccount?(Twice, $25 on 7/6/12

and $196.23 on 7/8/12, shown in the “Deposit” column.)

• Howmanytimesdidyoutakemoneyout?(Four times, shown in the “Withdrawal” column)

• Whowascheck1451writtento?(State University) Forwhatamount?($100)Forwhatpurpose?(dorm deposit)

• Whenwasyourlastentry?(a withdrawal on 7/11/12) Ifyouhaven’tmadeanywithdrawalsordepositssincethisdate,whatisyourcurrentbalance?($432.20) (Besurestudentsunderstandthatthelastamountunder“Balance”isthecurrentbalance, as long as all credits and debits have been entered in the register.)

4. SAY SOMETHING LIKE:Nowit’stimetoenteranotheriteminthecheckbookregister.

[Handeachstudentone“chancecard,”whichyoucutoutfromFacilitator Resource 1, Chance Cards.]

Youareeachgoingtoreceiveone“chancecard”describingacreditoradebit.Readyourcardcloselytoidentifytheamountofthecheck,withdrawal,ordeposit.Thenenterthisitemintoyourcheckregister.Let’ssaythedateisJuly12,2012.Onceyou’veenteredthenewitemintoyourregister,calculateyournewbalance.Rememberto add for credits and subtract for debits.

5. [Givestudentsafewminutestocompletetheirregister.Whenthey’redone,haveseveralstudentsdemonstrateordiscusstheiranswerstoshowhowtheycompletedtheirregisters.]

III. Online Statements: Just Log On! (15 minutes)

1. SAY SOMETHING LIKE:Nomatterhowcarefullyyoucompleteyourregister,chancesareatsomepointyou’llleavesomethingoutormakeanerrorcalculatingyourbalance.Fortunately,thebankiskeepingtrackofthisinformation,too.Attheendofthemonth,thebankwillmailyouastatementthatreflectsyourdebits,credits,andcurrentbalance.It’sagoodideatocheckyourregisteragainstthisstatement.

2. SAY SOMETHING LIKE:Butsometimesyoucan’twaituntiltheendofthemonthto double-check your balance. Or maybe you forgot to write down the amount of yourlastcheckandyouneedtoknowyourbalancebeforewritingthenextcheck.



Accessingyouraccountinformationcanbeaseasyasgoingonline!Manybanksoffer online banking, which allows you to check your credits, debits, and current balance anytime.

3. SAY SOMETHING LIKE:Let’stakealookatasampleonlinestatement.Pleaseturnto your Student Handbook page 141, Online Statement.Thisshouldlookveryfamiliar. It has a lot of the same information as your checkbook register. But as you’llsee,thecurrentbalanceandmostrecentcreditsanddebitsarelistedatthetopratherthanthebottom.

4. [Reviewtheonlinestatement.Pointouthowyoucancheckdifferentaccountsonline,soyoucouldalsocheckthetotalinyoursavingsaccount.Youcanalsoselectdifferentdates. Most online statements cover about a month, but you can go back and look at statementsfrompreviousmonths,too.]

5. SAY SOMETHING LIKE:Anonlinestatementisagreatwaytokeeptrackofchecksyouwrite.Forexample,youcangoonlinetoseeifchecksyou’vewrittenhavecleared,in other words, if the money has been deducted from your account.

Togetasenseforhowthisinformationcanhelpyou,I’dlikeyoutoturntoyourStudent Handbook page 142, Online Statement Questions. Please use the online statement to answer these questions.

7. [Completethefirsttwoquestionsasaclass,andthengivestudentseightminutestoanswertherestofthequestions.Whenthey’redone,havethemchecktheiranswerswithapartner.]


1. [Asaclass,reviewwhatwascoveredinthelesson.]

SAY SOMETHING LIKE:Whyisitimportanttokeeptrackofyourmoney?Whataresomewaystodothis?

2. SAY SOMETHING LIKE:Sofar,we’vetalkedabouttwowaystospendmoney:withcashandwithpersonalchecks.Nextweek,we’regoingtotalkaboutadifferentwaytospendmoney:creditcards.Creditcardscanbeaconvenientwaytomakepurchases,butlikepersonalchecks,theycanberiskyifyoudon’tusethemcarefully!



Chance Cards

It’spayday! Youjustreceivedapaycheckfor$203.00.Deposititrightaway.

Youoweyourlittlesister$12.00 for Girl Scout cookies you ordered.

Make the check out to Girl Scouts of America.

You’reheadingtothetheme parkthisweekend.Stopbythe ATMandtakeout$75.00.

Sendacheckfor$150.00to State University to cover lab fees for

your fall semester chemistry class.

Thanks,Grandpa! Youjustreceived$30.00asabirthdaygift.Youvowtodeposititrightaway.

Yousendyournewroommate acheckfor$48tocoveranewset

of sheets.

Yourmomlentyou$30.00lastmonth, so you write her a check topaybacktheloan.


Youneedsomecashfor theJuly4thfestival.Stopbythe ATMandtakeout$25.00.

Youjustgottahavethatcoolsweatshirtfor your new university. Write a checktoSportsGearfor$21.34.

Youjustearned$20.00for mowingtheneighbor’slawn.

Deposititrightaway.

You’reheadingoutforanight atthemovies.Betterstopby theATMandtakeout$25.00 formovieticketsandpopcorn.


Afriend’smomgivesyou$35.00 towalktheirdogwhilethey’re onvacation.Depositittoday!

Grade 10, Money Matters 3: Keeping Track of Your MoneyFacilitator Resource 1, Chance Cards


What’s in Your Wallet? Answer Key

Facilitator Directions:Readthestorybelowasaclass.Asyouread,highlightthekeyinformationthatwillhelpthestudentskeeptrackofhowmuchmoneyisintheirwalletseachday.ModelhowtocompleteSaturdayandSunday,andthenletthestudentscompletetherestofthechartontheirown.Onceallthestudentshavecompletedtheirwork,callonavolunteertoanswerthequestionatthebottom.

OnSaturday,yougotothemallwithyourbrother.YouseeacoolT-shirtofyourfavoriteband,butyoudon’thaveanymoneyleftinyourwallet.Yourbrotherloansyou$15.00topayfortheshirtandyoupromisetopayhimbackinaweek.Afterall,youknowyou’llbemakingmoneythatweekmowinglawns.

OnSunday,youmake$20.00mowinglawnsandputthemoneyinyourwallet.Monday,yougooutwithfriendsforicecreamandspend$4.00.Tuesday,youmake$10.00mowinganotherlawn,andspend$8.00thatnightatthemovies.Wednesday,yougotothemallwithfriendsandspend$13.00onanewCDand$2.00onasoda.Thursday,youmowanotherlawnandadd$10.00toyourwallet.

Fridaynight,yourbrotherasksforthe$15.00youowehim.Youcheckyourwallet,confidentthere’splentytheretopayhimback.Afterall,youmade$40.00mowinglawns this week. How much is left in your wallet?

Day Income Expenses Amount in Your Wallet

Sunday $20 0 $20

Monday 0 $4 $16

Tuesday $10 $8 $18

Wednesday 0 $15 $3

Thursday $10 0 $13

Friday 0 0 $13(notenoughtopay your brother back)

Grade 10, Money Matters 3: Keeping Track of Your MoneyFacilitator Resource 2, What’s in Your Wallet? Answer Key


Online Statement Questions Answer Key

Use the online statement to answer the questions below.

1. InlateJune,youwroteachecktoyourcollegetocoveradormdepositof$100.00.Younotedthatitwascheck#1451inyourregister.You’vejustreceivedaletterthatyoustillowethemoney.Lookatyourstatement.Didthecheckclear?(Inotherwords,wasthemoneydeductedfromyouraccount?)Ifso,onwhatdate?

It was subtracted from your account on 7/2/12. (Remind students that when you write a check, the person you write the check to takes it to his bank, and their bank presents it to your bank for payment. When your bank pays, the check has “cleared.” A copy of the cancelled check — provided by your bank — is proof that you’ve paid.)

2. Yourweeklypaycheckis$203.00.Didyoudepositallfourpaychecksthismonth?

Yes. Your statement shows all 4 deposits: 7/08, 7/15, 7/22, and 7/29.

3. YousentachecktoyournewroommateChristocoverasmallmicrowaveforyourdormroom.Fromyourcheckregister,youknowitwascheck#1453.Hasthemoneybeendeductedfromyouraccountyet?

No, because it hasn’t appeared on your statement yet.

4. WhatdatesdidyoumakeATMwithdrawals?Howmuchhaveyouwithdrawnsofarthismonth?

7/05, 7/15, and 7/20, for a total of $125.

5. AtthefamilyJuly4thpicnic,yourUncleSalgaveyou$25.00asagraduationgift.Youweregoingtodepositittokeepfromspendingitrightaway,butnowyoucan’trememberifyoudid.Didyoudepositit?Ifso,when?

You made a deposit for $25 on 7/06, so probably yes. This is where your check register comes in handy, since you can write “Uncle Sal’s gift” on the description line.

6. Howmuchmoneyhaveyoudepositedintoyouraccountthismonth?

$837.00. Four paychecks of $203.00 each, plus $25.

7. Howmanycheckshavebeenpaidbythebankthismonth?

Five checks: numbers 1451, 1452, 1454, 1455, and 1456.

8. WhatwasyouraccountbalanceattheendofJune(beforeyouwrotethechecktoStateUniversity)?Whatisitnow?

$423.45 at the end of June, $912.76 now.

Grade 10, Money Matters 3: Keeping Track of Your MoneyFacilitator Resource 3, Online Statement Questions Answer Key


What’s in Your Wallet?

OnSaturday,yougotothemallwithyourbrother.YouseeacoolT-shirtofyourfavoriteband,butyoudon’thaveanymoneyleftinyourwallet.Yourbrotherloansyou$15.00topayfortheshirtandyoupromisetopayhimbackinaweek.Afterall,youknowyou’llbemakingmoneythatweekmowinglawns.

OnSunday,youmake$20.00mowinglawnsandputthemoneyinyourwallet.Monday,yougooutwithfriendsforicecreamandspend$4.00.Tuesday,youmake$10.00mowinganotherlawn,andspend$8.00thatnightatthemovies.Wednesday,yougotothemallwithfriendsandspend$13.00onanewCDand$2.00onasoda.Thursday,youmowanotherlawnandadd$10.00toyourwallet.

Fridaynight,yourbrotherasksforthe$15.00youowehim.Youcheckyourwallet,confidentthere’splentytheretopayhimback.Afterall,youmade$40.00mowinglawns this week. How much is left in your wallet?

Day Income Expenses Amount in Your Wallet

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Grade 10, Money Matters 3: Keeping Track of Your MoneyStudent Handbook, What’s in Your Wallet?


Checkbook RegisterEverycheckbookcomeswitharegister.Thisisahelpfulwaytotrackyourchecks,withdrawals,anddepositsandkeepupwithyourcurrentbalance.Noticethatthemaindepositorcreditinformationisincludedonthewhiteline.Directlybelowonthegrayline,youcanaddthereasonforthepurchaseunder“Description.”Inthefarright-handcolumn,youcandetermineyourcurrentbalancebyaddingdepositsandsubtractinganypaymentsorwithdrawals.

CheCk no.

Date DesCription payment, WithDraWal

Deposit, CreDit

BalanCe

$ 423.451451 6/28/12 State University 100.00 100.00

Dorm deposit 323.45ATM 7/5/12 ATM 50.00 50.00

Spending money 273.457/6/12 Deposit 25.00 25.00

Graduation gift 298.457/8/12 Paycheck 203.00 203.00

501.451452 7/9/12 Town Tunes 17.48 17.48

Birthday gift 483.971453 7/11/12 Chris Jones 45.00 45.00

Dorm microwave 438.97

Grade 10, Money Matters 3: Keeping Track of Your MoneyStudent Handbook, Checkbook Register


Online StatementMany banks offer online banking, which allows you to check your current balance anytime. Online statements vary, but many share some of these common features.

FIRST BANK ONLINEBANKING Working for you!

Account Details Account: [Checkingaccount–1234](Clicktochangeaccount)Date: [7/1/12throughpresent](Clicktochangedates)

Transactions

DateDescription (click to see details)

Type Amount Balance

7/29/12 Check1456 Check –$32.56 $912.76

7/29/12 Deposit Deposit +$203.00 $945.32

7/22/12 FirstBankATMWithdrawal Withdrawal –$25.00 $742.32

7/20/12 Deposit Deposit +$203.00 $767.32

7/18/12 Check1455 Check –$24.13 $564.32

7/17/12 Check1454 Check –$48.52 $588.45


7/15/12 Deposit Deposit +$203.00 $686.97

7/09/12 Check1452 Check –$17.48 $483.97

7/08/12 Deposit Deposit +$203.00 $501.45

7/6/12 Deposit Deposit +$25.00 $298.45


7/2/12 Check1451 Check –$100.00 $323.45

$423.45

Grade 10, Money Matters 3: Keeping Track of Your MoneyStudent Handbook, Online Statement


Online Statement QuestionsUse the online statement to answer the questions below.

1. InlateJune,youwroteachecktoyourcollegetocoveradormdepositof$100.00.Younotedthatitwascheck#1451inyourregister.You’vejustreceivedaletterthatyoustillowethemoney.Lookatyourstatement.Didthecheckclear?(Inotherwords,wasthemoneydeductedfromyouraccount?)Ifso,onwhatdate?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

2. Yourweeklypaycheckis$203.00.Didyoudepositallfourpaychecksthismonth?

__________________________________________________________________________

3. YousentachecktoyournewroommateChristocoverasmallmicrowaveforyourdormroom.Fromyourcheckregister,youknowitwascheck#1453.Hasthemoneybeendeductedfromyouraccountyet?

__________________________________________________________________________

4. WhatdatesdidyoumakeATMwithdrawals?Howmuchhaveyouwithdrawnsofarthismonth?

__________________________________________________________________________

5. AtthefamilyJuly4thpicnic,yourUncleSalgaveyou$25.00asagraduationgift.Youweregoingtodepositittokeepfromspendingitrightaway,butnowyoucan’trememberifyoudid.Didyoudepositit?Ifso,when?

__________________________________________________________________________

__________________________________________________________________________

6. Howmuchmoneyhaveyoudepositedintoyouraccountthismonth?

__________________________________________________________________________

7. Howmanycheckshavebeenpaidbythebankthismonth?

__________________________________________________________________________

8. WhatwasyouraccountbalanceattheendofJune(beforeyouwrotethechecktoStateUniversity)?Whatisitnow?

__________________________________________________________________

Grade 10, Money Matters 3: Keeping Track of Your MoneyStudent Handbook, Online Statement Questions

MONEY MATTERS4Using Credit Cards with Care

Approx.45minutes

I. WarmUp:BuyNow,PayLater!(10 minutes)

II. ItAddsUpFast!HowInterestRates Work (15 minutes)

III. WhyItMatters:FinancialTroublesandCreditRating (10 minutes)

IV. WrapUp:AdvicetoaFriend(10 minutes)


• Understand the risks of credit cards and how interest rates can increase your credit card balance.

• Learnaboutcreditrecordsandtheimportanceofgoodcredit.

• Explainwhyit’simportanttopaycreditcardbillsinfullandontime.

❑ STUDENT HANDBOOK PAGES: • StudentHandbookpage143,ChargeIt?

• StudentHandbookpage144,ThingstoRemember About Credit Cards

❑ FACILITATOR PAGES: • FacilitatorResource1,ChargeIt?

(Answer Key)


❑ Laptop,LCDprojector,andspeakers

❑ Internetaccess(optional)

❑ Ruledpaper

AGENDA MATERIALS

OBJECTIVES

• Whataretheadvantagesandrisksofusingcreditcards?

565

TheBIG Idea



OVERVIEW ...........................................................................................

In this lesson, students will watch a brief video about a recent college graduate who learned a valuablelessonrackingupcreditcardchargesshedidn’tpayoff.They’lldiscussadvantagesanddisadvantagesofcreditcards,specificallythedangersassociatedwithinterestrates.They’llreviewsomeexamplesofhowinterestratescanincreasetheactualcostofitemsifcreditcardchargesaren’tpaidinfullandontime.Finally,studentswilllearnaboutcreditreports—andwhythewaytheyhandlecreditnowcanhaveabigimpactontheirfutures.

PREPARATION ....................................................................................



❑ PrintoutacopyoftheStudent Handbook page 143, Charge It?ontoatransparencytoshowonanoverheadprojector.

❑ PreviewtheCreditCardDebt:AStudent’sStoryvideoat... http://www.aie.org/managing_your_money/Credit-cards/Credit-Card-Debt-A-Student-Story.cfm (under Credit Cards), and make arrangements to view it in class by downloading it to your laptop(orviaInternetconnectioninclass.)

VOCABULARY .....................................................................................

Credit: Moneyyouborrow(forexample,fromabank)withthepromisetopayitbackatalater date or over time.

Interest: The amountyoupayforthemoneyyouborrow,usuallyapercentageofthemoneyyou borrow.

Annual Percentage Rate (APR): Theamountofinterestyoupayoverayear.

Credit Record:Arecordofallthemoneyyou’veborrowed,includingcreditcards,andyourpaymenthistory.

Grade 10, Money Matters 4: Using Credit Cards with Care


IMPLEMENTATION OPTIONS .........................................................

ThechartonStudent Handbook page 143, Charge It? is based on an online calculator found athttp://www.practicalmoneyskills.com/.

Mouseoverthe“Calculators”tabnearthetopofthepageandselectthe“Credit&Debt”optionfromthedrop-downmenu.Under‘SelectaCalculator,’click“CostofCredit.”Youcanenterapurchaseprice,interestrate,andmonthlypayment,thenseehowlongitwilltaketopayoffyourcreditcardandhowmuchtotalinterestyou’llpay.Studentsmayenjoythisasasupplementtotheinformationpresentedinthechart.

In Activity II, ifyourstudentsseemcompletelylostwhenyouaremodelinghowtopredictthenumberofpaymentsandinterestchargeson Student Handbook page 143, Charge It? feel freetomodel the last tworowsasaclass. Youshouldfollowthesameformataswritten insection 5 of this activity.



I. Warm Up: Buy Now, Pay Later! (10 minutes)

1. SAY SOMETHING LIKE:Whoherethinksyou’llhaveacreditcardwhenyouturn18?Whilecreditcardssoundveryappealing,theyshouldbeusedwithcaution.Let’sstartby watching a short video about a recent college graduate who used her credit card throughout her college years.

2. [Show the class the Credit Card Debt: A Student’s Story video from the following website:http://www.aie.org/managing_your_money/Credit-cards/Credit-Card-Debt-A-Students-Story.cfm. (See Preparation.)]

3. SAY SOMETHING LIKE:WhatcanwelearnfromRobyn’sexperience?[Havestudentssharetheiranswers.]Thevideostatesthat21%ofcollegestudentsgraduatewith$7,000increditcarddebt.Whathappenstothatamountthelongerittakestopayoffthatdebt?[Allowstudentstorespond.]

4. SAY SOMETHING LIKE:Ofcourse,itcanbehardtoresistthetemptationofcreditcards.Let’simagineourselvesinthissituation:It’sthesummerbeforecollegeandyou’reshoppingforsomenewclothes.You’reabouttobuya$40sweater,whenthesalespersonasksifyou’dliketoopenacreditcardwiththestore.Ifyouopenanaccounttoday,youcansave15%offyourpurchase.Wow,youthink—youcouldsave$6onthatsweater!Plus,thatwouldleave$40cashinyourpocketyoucouldspendonsomethingelse.Whatwouldyoudo?Whatdoyouneedtoknowbeforemakingthisdecision?

[Note:Therearemanyfinancialexamplesinthislessonthatillustratepurchaseprices,interest,minimumpayments,latefees,etc.Thoughit’snotnecessarytogothroughelaboratecalculationsforeachexample,it’shelpfultowritethenumbersontheboardsostudentscanfollowthediscussion.]

5. SAY SOMETHING LIKE:Onceyouturn18,you’regoingtoreceivealotofenticingoffersforcreditcards.Butit’simportanttounderstandthebenefitsanddangersofcredit before you think about credit cards. First, what is credit?Creditallowsyoutoborrowmoney,forexample,fromabank,andpayitbackatalaterdateorovertime.Soacreditcardletsyoubuysomethingnowandpaylater.Banksandotherfinancialinstitutionsissuecreditcards.Sowhenyouusetheircreditcard,you’reborrowing money from them.

ACTIVITY STEPS ..................................................................................



6. SAY SOMETHING LIKE:We’regoingtospendalotoftimetalkingabouttherisksofcreditcardstoday.Buttheydohavesomeadvantages.Cananyonethinkofany?[Makealistontheboard,suchas:• Theyallowyoutomakepurchasesnowandpaylater.

• Theyallowyoutomakepurchasesinanemergencywhenyoudon’thave the cash.

• They’resaferandmoreconvenienttocarrythancashorchecks.

• Theykeeparecordofyourpurchases.

• They’renecessarytopurchasethingsonline.

• Ifusedresponsibly,theyallowyoutoestablishahistoryofgoodcredit, which will make getting loans for a car, school, or a house easierdowntheroad.]

7. SAY SOMETHING LIKE:Creditcardssoundprettygreat,don’tthey?Well,here’sthemostimportantthingtoknowaboutcreditcards.[Youmaywanttowritethisontheboard.]

If you don’t pay your credit card bill IN FULL and ON TIME, it will cost you a lot of money.

Yousee,ifyoudon’tpaybackthatloanrightaway,you’regoingtopayinterest andlatefees.You’llpayinterest,oracertainpercentage,onanychargesthataren’tpaidinfull.Soifyouowe$100,andyouonlypay$10,you’lloweinterestontheremaining$90.Andifyoudon’tmakeanypayment,ordon’tpayontime,you’llpayalatefee.

Whydoesitcostsomuchtoborrowmoney?Well,banksareinthebusinesstomakemoney.Andthey’regoingtochargeyouforborrowingtheirmoney.Here’stheotherimportantthingtoremember:

Thelongeryouputoffpayingyourcreditcardbill,themoreyou’regoingtoowe.

Inotherwords,ifyoucharge$100.00onyourcreditcard,it’snotgoingtostayat$100.00.Withinterestratesandfees,thatamountwillkeepincreasinguntilyoumaynotbeabletopayyourbillsatall.

8. SAY SOMETHING LIKE:Intoday’slesson,we’regoingtotakeacloserlookattheserisks and why it matters in the long term.



II. It Adds Up Fast! How Interest Rates Work (15 minutes)

1. SAY SOMETHING LIKE:Let’ssayyoudecidedtoopenacreditcardaccountatthestorewhereyouboughtthesweater.Afewweekslater,youreceiveyourfirstbillfor$34.00.Younoticeyoucouldmakea“minimumpayment”of$15.00,butyoureallyneedthatmoneythisweekend.Youdecidenottopayanythingnow,andstickthebillinyourdresser.Thenextmonth,youopenyourbillandyounoticeit’s$59.61.Whathappened?Youthoughtyoupaid$34forthatsweater!Youlookcloselyatthebillandseethosechargescamefromfinancechargesandlatefees.

2. SAY SOMETHING LIKE: Youoweafinance chargeanytimeyoudon’tpayyourbillinfull.Afinancechargeistheamountofinterest you owe. Remember, interest is money youpayforwhatyou’veborrowed.Interestratesaredescribedaspercentages.Thehighertheinterestrate,themoremoneyyoupay.

Youowealate feeanytimeyoudon’tmakeaminimumpayment,orifyoumakeapaymentlate.Latefeescanbeveryhigh,soevenifyoucan’tpayinfull,it’simportanttomakeaminimumpaymentandpayontime.

3. SAY SOMETHING LIKE:Let’stakeacloserlookathowinterestrateswork.Creditcards describe interest as an annual percentage rate (APR), or the amount of interest youpayoverayear.SayyouhaveanewcreditcardwithanAPRof18%.Youuseyourcardtopayforabunchofstuffforyourdormroom.Yourcardhasabalanceof$1,000.00.Youstopusingyourcard,butdon’tpaythatbalanceforafullyear.Ayearlater,you’lloweanadditional18%ininterest—or$180.Yourbalancejustclimbedto$1,180.00!(And,ofcourseyouhavetokeepmakingpaymentsandpayaportionofthisinteresteverymonth.)

4. SAY SOMETHING LIKE:Atrapsomepeoplefallintoisthinkingtheycanjustmakeaminimumpaymentontheircreditcardandkeeponcharging.Taketheexampleabove.Yourcreditcardbalanceis$1,000.Youdecidetostopusingyourcard,andstartmakingtheminimumpaymentof$20everymonth.Howmanymonthswouldittaketopayoffabillof$1,000at$20permonth?Youmightthinkitwouldtake50months—afterall,divide$1,000by$20andyouget50,right?

Well,thinkagain.Eventhoughyou’repaying$20eachmonth,thebankischargingyouinterest(18%APR)onthemoneyyoustillowe.Eachmonth,thatinterestisaddingup.Meaningthelongerittakestopay,themoreyouowe!Soeventhoughyou’repaying$20amonthtocoverthe$1,000balance,itwilltakealmostEIGHTYEARSto



payofftheloan.Intheend,youwillhavepaid$862ininterest(financecharges).Inotherwords,you’dhavetopay$1,862foritemsworthonly$1,000!

5. SAY SOMETHING LIKE:TurntoyourStudent Handbook page 143, Charge It? [Displaythepageonanoverheadprojector.]

Here’salookathowmuchyou’denduppayingforitemswhenyoumakesmallpaymentsandarechargedinteresteverymonth.Wejustdiscussedthefirstexample,inwhichyoupaidoffa$1,000balancewithpaymentsof$20.Lookatthesecondexample.Whathappensifyouincreaseyourmonthlypaymentsto$40?Inthiscase,youwouldbedoublingyourminimumpayment.Howmanypaymentsdoyouthinkyou’llneedtomake?[Allowstudentstorespond.]Inthiscase,Iwouldhaveguessedthatthenumberofpaymentswouldhavedecreasedbyonehalfsincewedoubledtheminimumpayment.Thiswouldmeanthatitwouldtake47monthstopayoffa$1,000billwithaminimumpaymentof$40.Inreality,itwouldtake32monthstopayoffthisbill.Why?(Becausethebalanceisreducedmorequickly,you’dpaylessinterest.)

Nowwe’regoingtopredicttheamountofinterestyouwouldbechargedforaminimumpaymentof$40.Ifaminimumpaymentof$20resultsininterestof$862.23,whatdoyouthinktheinterestchargeswouldbeforaminimumpaymentof$40?[Allowstudentstorespond,andthenfillinthecorrectanswerfortheinterestchargesandfinalcostontheoverhead.]Increasingtheminimumpaymentby$20savedabout$600.

[Theninstructthestudentstomakepredictionsfortheremainingblanksections.Explaintothestudentsthatit’sOKiftheygetthewronganswer.Theyshouldtrytomaketheirpredictionsreasonable,butthereisnopenaltyforanswersthatarewayoff.Givethemthreeminutestocompletethiswork,andthengooverthecorrectanswers as a class. (See Facilitator Resource 1, Charge It? Answer Key).]

SAY SOMETHING LIKE:Soremember:If you only pay your minimum payments, it will take years to pay off your credit card — and you’ll end up paying a lot more!

III. Why It Matters: Financial Troubles and Credit Rating (10 minutes)

1. SAY SOMETHING LIKE:Everyyear,millionsofAmericansmakethemistakeofignoringtheirever-growingcreditcardbills.ThecreditcarddebtcarriedbytheaverageAmericanisover$8,000!AndAmericanspaybillionsofdollarsinfinancechargeseveryyear.Maybetheyhopetheproblemwillgoaway.Ortheymightthinkthatitwon’tgetanyworse.Butthelongertheyignoretheproblem,theworseitgets.



Evenifsomeonestopsusinghiscreditcardaltogether,hisbalancewillkeepgrowingasfinancechargeskeepaddingup.

2. SAY SOMETHING LIKE:Financialtroubleisjustonereasontopayyourbillsontime.Youcouldalsogetintolegaltrouble.Afterall,whenyousignacontractforacreditcard,youaremakingalegalobligationtothebankordepartmentstoretopaythemoney back on time. If you fail to do so, they could take legal action against you.

3. SAY SOMETHING LIKE:Butthere’sanotherveryimportantreasonyoushouldbecarefultopayyourcreditcardbillsontime:yourcredit record.Yourcreditrecordisbasicallyarecordofallthemoneyyou’veborrowed—includingallyourcreditcards—andyourpaymenthistory.Ifyouhaveborrowedmoneyandpaiditbackontime,youwillhavegoodcredit.Ifyouhavenotpaidbackmoneyontime,you’llhave bad credit.

4. SAY SOMETHING LIKE:Youmightbewonderingwhythismatters—afterall,who’sgoingtoseeyourcreditrecord?Theansweris,lots of people — from banks to future employers.Yousee,yourcreditrecordfollowsyouwhereveryougo.Anytimeyouapplyforaloanoranyothercreditcard,yourcreditrecordischecked.Futureemployersmayalsocheckyourcreditrecord.Afterall,peoplewanttoseeifyouarereliableandtrustworthy—doyoukeepyourpromisewhenyouowepeoplemoney?Withabadcreditrating,youcouldgetturneddownforajobyoureallywant.Oryoumightnotbeabletogetaloantopurchasesomethingreallyimportant,suchasahomeor a car.

In some cases, you may still receive a loan, but at a much higher interest rate. For example:Ifyouhavegoodcredit,youmightbeabletoborrowmoneytobuyahouseat6%interest.Ifyourcreditisbad,itwillcostyoumore,suchas7%interest.Thatmightnotsoundlikealot,butoverthe30yearsittakestopayoffa$200,000mortgage,badcreditwillcostyou$47,340more!

5. SAY SOMETHING LIKE:Thebottomlineisthis:The way you handle your money now can have a big impact on your future.



IV. Wrap Up: Advice to a Friend (10 minutes)

1. Have students turn to their Student Handbook, page 144, Things to Remember About Credit Cards. Review the list as a class.

2. SAY SOMETHING LIKE:Wetalkedalotaboutthedangersofcreditcardstoday.Butifusedcarefully,creditcanplayanimportantroleinourlives.Creditallowspeopletoaffordbigpurchasesthatwillbeusefulformanyyears.Forexample,inyourlifetime,youwillprobablytakeoutloansforahouse,acar,andmaybeevencollege. Not only do these loans carry lower interest rates than credit cards, these purchasescanoftenbeaverywiseinvestmentbecausetheyhavelastingvalue.Yourcollegeeducationwillhelpyouthroughoutyourlife.Yourhomeprovidesaplaceforyourfamilytolive—andwillprobablyincreaseinvalueovertime.

3. SAY SOMETHING LIKE:Beforeweendtoday,I’dlikeyoutoimagineyou’reoutshoppingwithafriend.You’reatoneofyourfavoritestoresandthesalespersonasksyourfriendaboutopeninganewcardandsavingontoday’spurchase.Yourfriendisreadytosignuponthespot.Whatwouldyousaytoyourfriendtohelphimorhermakeaninformeddecision?Writeanotewithyouradvice.



Charge It? (Answer Key)

Givestudentsthreeminutestocompletethepredictionsonthechartbelowandthenreview the answers as a class.

Item and Original Cost

Minimum Payment

Number of Payments

Interest Charges

Final Cost

Stuff for dorm room $1,000

$20 94months (Seven years and 10 months)

$862.23 $1,862.23


$40 32 months (Two years and eight months)

$262.72 $1,262.72

Stereo $500

$20 32 months (Twoyears,eightmonths)

$131.39 $631.39

Stereo $500

$40 14 months $57.85 $557.85

Miscellaneousexpenses(clothes, CDs, dinners out) $3,000

$50 155 months (almost13years!)

$4,732.78 $7,732.78


$75 62 months (Five years and two months)

$1,615.73 $4,615.73

Tocreateyourownexamplesshowingthecostofcreditcards,clickon http://www.practicalmoneyskills.com/wizards/credit/index.phpandtrytheonlinecalculator.

Grade 10, Money Matters 4: Using Credit Cards with CareFacilitator Resource 1, Charge It? (Answer Key)


Charge It?Youhaveanewcreditcardwithan18%APR,orannualpercentagerate.Thechartbelowgivesyoualookatwhatyou’llreallyspendondifferentitems—andhowlongitwilltaketopaythebill—ifyoudon’tpaythebillinfulleachmonth.

Directions:Predictthenumberofpayments,interestcharges,andfinalcostfortheblankspacesbelow.

Item and Original Cost

Minimum Payment

Number of Payments

Interest Charges

Final Cost


$20 94months (Seven years and 10 months)

$862.23 $1,862.23


$40

Stereo $500

$20 32 months (Twoyears,eightmonths)

$131.39 $631.39

Stereo $500

$40


$50 155 months (almost13years!)

$4,732.78 $7,732.78


$75

Tocreateyourownexamplesshowingthecostofcreditcards,clickon http://www.practicalmoneyskills.com/wizards/credit/index.phpandtrytheonlinecalculator.

Grade 10, Money Matters 4: Using Credit Cards with CareStudent Handbook, Charge It?


Things to Remember About Credit CardsThinkingaboutgettingacreditcardwhenyouturn18?Herearesomeimportantthingstoremember:

• Whenyouuseacreditcard,youareborrowingmoneyfromabankwiththepromisetopayitback.

• Ifyoudon’tpayyourcreditcardINFULLandONTIME,youwillendupowingMOREthan the money you borrowed. Two major reasons are:

❑ Late Fees:Ifyoudon’tmakeanypaymentwhenthebillisdue—orifyoumakeapaymentaftertheduedate—youwillbechargedlatefees.Latefeescanbeveryhigh,suchas$25.00perlatepayment.

❑ Interest Charges (orfinancecharges):Ifyoudon’tpayyourbillinfull,youmustpayinterestonthemoneyyouowe.Theinterestisapercentageofthemoneyyouowe.Thisinterestkeepsaddingupaslongasyouowethemoney.

• Thelongeryouputoffpayingyourcreditcardbill,themoreyou’regoingtoowe.

❑ Evenifyoumakeminimumpaymentseverymonth,theinterestisstilladdinguponthe money you still owe.

• If you only pay your minimum payments, it will take years to pay off your credit card. If you don’t pay your credit card bills in full and on time, you could face:

❑ Financial Trouble: Thelongeryouignoreyourbills,themoreyourbalancewillgrow—untilyourbillsmaybeimpossibletopay.

❑ Legal Trouble:Whenyousignacontractforacreditcard,you’remakingalegalobligationtothebankordepartmentstoretopaymoneybackontime.Ifyoufail to do so, they could take legal action against you.

❑ A Poor Credit Record:Yourcreditrecordtracksallthemoneyyou’veborrowedandyourpaymenthistory.Whenyouapplyforaloan,anothercreditcard,andevenajob,peoplewillcheckyourcreditrecord.Youcouldgetturneddownforfutureloansandjobswithapoorcreditrecord.

• Thewayyouhandleyourmoneynowcanhaveabigimpactonyourfuture.

Grade 10, Money Matters 4: Using Credit Cards with CareStudent Handbook, Things to Remember About Credit Cards

MONEY MATTERS5Before You Sign: Contracts

Approx.45minutesI. WarmUp:YourOwnCell

Phone (10 minutes)

II. ComparingPlans(15minutes)

III. ReadingtheFinePrint: Reviewing Contracts (10 minutes)



• Understandtheimportanceofcarefullyreviewingacontract.

• Comparethreedifferentcellphoneplansandanswerquestionsbasedontheinformation.

• Review a service contract to identify rules, limitations, and any hidden costs of a cell phoneplan.

❑ PORTFOLIO PAGES: • Portfoliopages28–30,Grade10SkillsChecklist

❑ STUDENT HANDBOOK PAGES: • StudentHandbookpage145,ChooseYourPlan

• StudentHandbookpages146–147, StudentQuestions

• StudentHandbookpage148, Cell Phone Service Contract

• StudentHandbookpage149, WrapUp:YourFirstPhoneBill

❑ FACILITATOR PAGES: • Facilitator Resource 1, Cell Phone Ad

• FacilitatorResource2,StudentQuestions Answer Key

• FacilitatorResource3,YourFirstPhoneBillAnswer Key


❑ Calculators

❑ Highlighters(oneperstudent)

AGENDA MATERIALS

OBJECTIVES

• Whataresomeimportantthingstoconsiderbeforesigning acontract?

577

TheBIG Idea



OVERVIEW ...........................................................................................

Inthislesson,studentswilllearnabouttheimportanceofcarefullyreviewingcontracts,astheyselectacellphoneplanfortheirfirstyearincollege.They’llbeginbyconsideringanenticingadvertisementforafictionalcellphoneplan.Next,they’llcomparethreeplansofferedbythecellphonecompanyandusetheinformationtoanswerspecificquestionsabouttheplans.Thenthey’llreadthecompany’sservicecontracttoidentifysomeofthehiddencostsandlimitationsoftheplan.Finally,they’llbegivenasimplescenarioofcellphoneuseanddeterminetheamountof the first monthly bill.

PREPARATION ....................................................................................


❑ Writetheday’svocabularywordanddefinitionontheboard.

❑ Thefollowinghandoutsneedtobemadeintooverheadtransparenciesorcopiedontochartpaper:• Student Handbook pages 146–147, Student Questions

• Student Handbook page 149, Wrap Up: Your First Phone Bill

• Facilitator Resource 1, Cell Phone Ad

VOCABULARY .....................................................................................

Contract: Asignedagreement(ordocument)betweentwoormoreparties,suchasanindividualandacompany.

IMPLEMENTATION OPTIONS ..........................................................

Forclassesnotproficientinmath,youmaywishtoworkthroughthecalculationstogether,usingtheblackboardoroverheadprojector.

Grade 10, Money Matters 5: Before You Sign: Contracts


I. Warm Up: Your Own Cell Phone (10 minutes)

1. SAY SOMETHING LIKE:Welcomeback,everybody.Lastweekyoulearnedaboutcreditcards—andwhythewayyouusethemnowcanhaveabigimpactonyourfuture.Thisweek,we’regoingtotalkaboutsomethingelsethatcanhaveabigimpactonyourfuture:contracts.

2. SAY SOMETHING LIKE:Youwillsignmanycontractsinyourlifetime,whetheryou’resigningupforacreditcard,aserviceforyourhomelikeelectricityorwater,orevenmedicaltreatment.Whoknowswhatacontractis?[Takeanswersandjotdownrelevantwordsorphrasesontheboard.]

A contractisasignedagreementbetweenyouandacompanyoranotherindividual.Acontractclearlystatesthetermsofanagreement,suchaswhatwillbeprovidedandfor how long. A contract is a legal document, so you are making a legal commitment whenyousignacontract.Thatmeanstherecouldbefinancialorlegalpenaltiesifyouchangeyourmind.Andthat’swhyit’ssoimportanttoreviewanycontractverycarefully before you sign it.

3. SAY SOMETHING LIKE:Let’slookatanexampleofatimeinthenearfuturewhenyoumightbesigningacontract:whenit’stimetochooseandpayforyourowncellphoneplan.

Imaginethisscenario:You’reabouttoleaveforcollege,whereyou’llneedanewcellphonetokeepintouchwithfriendsandfamily.YourparentshavecellphoneservicewithacompanycalledRingRing.RingRingoffersfreecallstoanyoneelsethatusestheirnetwork,soyouhavedecidedtochooseaplanwithRingRing.Yourparentshaveofferedtopay$50permonthtocoveryourcellphonecharges.Youjustneedtofigureoutwhichplanworksforyou.

Asyou’reflippingthroughthenewspaperoneafternoon,youseethisad.[PuttheFacilitator Resource 1, Cell Phone Adontheoverheadprojector.]

Youfallinlovewiththeorangephone—you’veneverseenanotheronelikeit!Plus,it’sFREEifyousignupfortheStudentPlan,whichlookslikeit’sinyourbudget.

ACTIVITY STEPS ..................................................................................



4. SAY SOMETHING LIKE:Whatdoyouthink?Shouldyousignuprightaway? [Takeanswers.]

No,youprobablyshouldn’tjustchooseaplanbasedonthephone,right?Whataresomethingsyou’llneedtoconsiderbeforechoosingacellphoneplan?[Takeanswersfromtheclass;makealistontheboard.(Examples:numberoffreeminutes;costforcallswhenyouexceedyourminutes;peakandoff-peakhours;costforout-of-areaorinternationalcalls;costfortextmessagingorInternetaccess;taking/sendingpictures;downloads;etc.)]

II. Comparing Plans (15 minutes)

1. SAY SOMETHING LIKE:OK,let’ssayyoumakeawisechoice—tocomparedifferentplansofferedbyRingRinginsteadofjustchoosingtheplanthatgetsyouthecoolorangephone.TurntoyourStudent Handbook page 145, Choose Your Plan and lookatthethreebasicplansofferedbyRingRing.

2. SAY SOMETHING LIKE:Howaretheseplansdifferent?[Takeanswers,suchasnumberoffreeminutes,costforadditionalminutes,andoverallcost.]

3. SAY SOMETHING LIKE:Next,turntoStudent Handbook pages 146–147, Student Questions. Use the chart in Student Handbook page 145, Choose Your Plan to answerthefirstsetofquestions.[Givestudents10minutestocompletethequestions,andthenreviewtheanswersasaclass.]

III. Reading the Fine Print: Reviewing Contracts (10 minutes)

1. SAY SOMETHING LIKE:Sayyou’vedecidedtogowithPlanB,theStudentPlan,andyou’rereadytosignup.Butbeforeyoudo,it’simportanttocarefullyreviewthecontractfortheplan.Eventhoughcontractscanbecumbersometoreadsometimes,theyincludeimportantinformation—andextracosts—youmaynothaveconsidered.Afterall,flashyadvertisementsaredesignedtohighlightjustthedesirablefeaturesofaproductorservice.Youhavetoreadthefineprinttofindtherealtruthbehindtheadvertisement.Usually,nothing’sas“free”or“easy”asitsounds!

2. [Have the class turn to Student Handbook page 148, Cell Phone Service Contract. Give each student a highlighter. Instruct students to use the information in this contract to answer the second set of questions on the Student Handbook pages 146–147,



Student Questions. Students should highlight this information on their contract. Give thestudentssevenminutestocompletethesequestions.Iftimepermits,reviewtheanswersasaclass.]


1. SAY SOMETHING LIKE:Beforeweendfortheday,I’dlikeyoutoturntoyourStudent Handbook page 149, Wrap Up: Your First Phone Bill. In this scenario, you havedecidedtogowithPlanB,theStudentPlan—youjustcouldn’tresistthatorangephone.ButwhenthefirstbillarrivesattheendofSeptember,you’reabitsurprised.Readthedetailsonyourstudenthandbookpage,andfigureoutthetotalofyourfirstbill.

2. [Iftimepermits,bringstudentstogethertosharetheiranswers.DiscusswhetherPlanBwasthebestdecision,orhowyoucouldchangeyourcellphoneusetoloweryourfuturecellphonebills.]

SKILLS CHECKLISTDirectstudents’attentiontoPortfolio pages 28–30, Grade 10 Skills Checklist. Have studentscompletetheskillschecklistquestionsforMoneyMattersskills.

Money MattersI can…

Explainwhyabudgetisimportant,andcanname categories to include when creating one.

❏

not at all❏

somewhat❏

very well

Keeptrackofthemoneyinacheckingaccount.❏

not at all❏

somewhat❏

very well

Describetheprosandconsofusinga credit card.

❏

not at all❏

somewhat❏

very well

Explainwhattothinkaboutwhenconsidering acontractforacellphone.

❏

not at all❏

somewhat❏

very well



As you head off to college…

What will your cell phone say about you?

Chooseaphonethatfitsyourpersonalstyle. Available in ruby red, Florida orange, lemon yellow, grass green, sky blue, and plum purple.

TheNewRainbow Phone from RING RING.

YoursFREE with the Student Plan —only$49.99/month.

❑ 500 minutes a month

❑ Unlimitednights&weekends

❑ Free calls to anyone in the RING RING network.

RING RING Connecting you to your world.

Grade 10, Money Matters 5: Before You Sign: ContractsFacilitator Resource 1, Cell Phone Ad


Student Questions Answer KeyPART 1

1. Excludingcallstoyourfamily,youestimateabout30minutesoftalktimeeachdayduringdaytimehours(thatis,beforeyourfreenights/weekendstakeeffect).Completethecalculationsbelowusingeachofthethreeplans.

PLAN A CostMonthly access fee $39.99

Over-limit charge

a. 30 minutesperdayx20weekdays/month= 600 (minutes talked)

b. 600 (minutestalked)– 400 minutesallowed= 200 (extraminutes)

c. 200 (extraminutes)x$.45/minute= $90 (over-limit charge)

$90.00

Total Cost $129.99

PLAN B CostMonthly access fee $49.99

Over-limit charge


b. 600 (minutestalked)– 500 minutesallowed= 100 (extraminutes)


$40.00

Total $89.99

PLAN C CostMonthly access fee $59.99

Over-limit charge


b. 600 (minutestalked)– 650 minutesallowed= 00 (extraminutes) Since the minutes talked was less than the minutes allowed, no extra minutes were used.


$0.00

Total Cost $59.99

2. Basedonyouranswerstoquestion1,whichplanareyoubetteroffchoosing?Explain.You’re much better off with Plan C, which will allow you to talk your estimated 30 minutes per weekday. With Plan B, you’re paying $40.00 for extra minutes, bringing your total monthly bill to $89.99. For Plan A, you’re paying $90.00 for extra minutes, which raises your total monthly bill to $129.99.

Grade 10, Money Matters 5: Before You Sign: ContractsFacilitator Resource 2, Student Questions Answer Key


Student Questions Answer Key

PART 2

1. Howmuchwillyouhavetopaytoactivateyourlinethefirstmonth?(See“activationfee.”)$35

2. Nameatleasttwootherfeesyou’llpayeachmonth.Taxes, monthly universal service charge, monthly regulatory charge, monthly administrative charge

3. YouliketheRingRingplansbecausetheyofferunlimitednightandweekendcalls.Whattimedofreecallsbeginintheevening?Monday–Friday evening at 9:01 pm

4. ImagineyouchoosePlanB,whichoffers500freeminutes.InSeptember,youonlyuse475minutes.Whathappenstoyourunusedminutes?”Unused allowance minutes lost”

5. Whenyougettoschool,youfindthatyoudon’tgetverygoodreceptionfromyourdormroom.YoudecidetodropRingRingaltogether.Yousignedupforayear-longcontract.Howmuchmightyouhavetopaytocancel(terminate)yourcontractearly?Up to $175

6. Sinceyou’renewtotown,youmightneedtocallinformation(411)oftentofindlocalnumbers.Howmuchwilleachcallcostyou?$1.49 per call plus airtime

7. Youcarefullyplanthecallsyoumake(orOUTGOINGcalls)soyoudon’tgooveryourminutes.ButwhataboutcallsthatotherpeoplemakeTOyou,orINCOMINGcalls)?Willthosetakeupyourminutesaswell?Yes, when the call connects to the Ring Ring network on incoming calls.

Grade 10, Money Matters 5: Before You Sign: ContractsFacilitator Resource 2, Student Questions Answer Key


Wrap Up: Your First Phone Bill Answer Key

AftercomparingthedifferentRingRingplans,youdecidedtogowithPlanB,theStudentPlan.YoudecidedyoujustHADtohavethatorangephone,andtheplan($49.99)waswithinthemonthlybudgetyourparentsofferedtopay.However,you’reinforasurprisewhenthebillarrivesattheendofthefirstmonth.Tobegin,youwentoveryourallowanceofminutes,talkingfor575minutes.Youalsosentandreceived17textmessages,andcalledinformationfourtimes.Andsincethiswasthefirstmonth,therewasanactivationfeeof$35.00.Totopitoff,therewere$14.50ofmonthlyservicecharges.

1. Whatwasthetotalcost?

Basic rate: $49.99

Extra minutes x Cost per minute:

75 minutesx .40 /minute=

$30.00

Text messages x Cost per message:

17 textmessagesx $.40 /message=

$3.40

Information calls x Cost per call:

4 callsx $1.49 /call=$5.96

Activation fee $35.00

Service charges & fees: $14.50

Total cost: $138.85

2. WasStudentPlanBthebestplanforyouconsideringyourcellphoneusethismonth?Whyorwhynot?

No. Excess minutes cost $30. All of those minutes would have been paid for with Plan C for only $10 more.

Grade 10, Money Matters 5: Before You Sign: ContractsFacilitator Resource 3, Wrap Up: Your First Phone Bill Answer Key


Choose Your PlanBelowisanoverviewofRingRing’sthreevoicebasicplansforindividuals.Readthechartcloselyandanswerthequestionsinpart1ofStudent Handbooks pages 146–147, Student Questions.

Ring, Ring Basic Voice

Plans

Monthly Anytime Minutes

Monthly Access

Per-Minute Rate After Allowance

Text Messages Plan Includes

PLAN A (Starter Plan)

400 minutes $39.99 $0.45

$0.20 (for received

and sent) •UnlimitedNight&WeekendMinutes

•VoiceMail

•CallerID

PLAN B (Student Plan)

500 minutes $49.99 $0.40

$0.20 (for received

and sent)

PLAN C (DeluxePlan)

650 minutes $59.99 $0.35

$0.20 (for received

and sent)

Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Choose Your Plan


Student Questions

PART 1

1. Excludingcallstoyourfamily,youestimateabout30minutesoftalktimeeachdayduringdaytimehours(thatis,beforeyourfreenights/weekendstakeeffect).Completethecalculationsbelowusingeachofthethreeplans.

PLAN A CostMonthly access fee

Over-limit charge

a. minutesperdayx20weekdays/month= (minutes talked)

b. (minutestalked)– minutesallowed= (extraminutes)

c. (extraminutes)x$.45/minute= (over-limit charge)

Total Cost

PLAN B CostMonthly access fee

Over-limit charge


b. (minutestalked)– minutesallowed= (extraminutes)


Total

PLAN C CostMonthly access fee

Over-limit charge


b. (minutestalked)– minutesallowed= (extraminutes) Since the minutes talked was less than the minutes allowed, no extra minutes were used.


Total Cost

2. Basedonyouranswerstoquestion1,whichplanareyoubetteroffchoosing?Explain.

_____________________________________________________________________________

_____________________________________________________________________________

Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Student Questions


Student Questions

PART 2

3. Howmuchwillyouhavetopaytoactivateyourlinethefirstmonth? (See“activationfee.”)

____________________________________________________________________

4. Nameatleasttwootherfeesyou’llpayeachmonth.

____________________________________________________________________

5. YouliketheRingRingplansbecausetheyofferunlimitednightandweekendcalls.Whattimedofreecallsbeginintheevening?

Monday–Friday evening ____________________________________

6. ImagineyouchoosePlanB,whichoffers500freeminutes.InSeptember,youonlyuse475minutes.Whathappenstoyourunusedminutes?

____________________________________________________________________

7. Whenyougettoschool,youfindthatyoudon’tgetverygoodreceptionfromyourdormroom.YoudecidetodropRingRingaltogether.Yousignedupforayear-longcontract.Howmuchmightyouhavetopaytocancel(terminate)yourcontractearly?

____________________________________________________________________

8. Sinceyou’renewtotown,youmightneedtocallinformation(411)oftentofindlocalnumbers.Howmuchwilleachcallcostyou?

____________________________________________________________________

9. Youcarefullyplanthecallsyoumake(orOUTGOINGcalls)soyoudon’tgooveryourminutes.ButwhataboutcallsthatotherpeoplemakeTOyou,orINCOMINGcalls)?Willthosetakeupyourminutesaswell?

____________________________________________________________________

Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Student Questions


Cell Phone Service ContractBelowisthecontractforRingRingwirelessphoneservice.Readitcarefullyandanswerthequestionsinpart2ofStudent Handbook pages 146–147, Student Questions.

Important Calling Plan Information Allminutes(freeminutes,callstootherRingRingcustomers,freenight&weekendminutes)areforusefromwithintheRing Ring Coverage Area.

• UnlimitedDomesticLongDistance.(Airtimeapplies.)

• Nodomesticroamingcharges.(Coveragenotavailableinallareas.)

• UnlimitedNight&WeekendMinutes: NightHrs:(M–F)9:01p.m.–5:59a.m. WkndHrs:12:00a.m.Sat.–11:59p.m.Sun.

Calling Other Ring Ring CustomersYoucantalkwithanyofourcustomersanytimefromwithintheUnitedStatesandPuertoRicocoverageareas.

Information (411) Calls$1.49percallplusairtime.

Minimum Term, Activation, and Early Termination Fees• One-ortwo-yearminimumtermrequiredperline.

• ActivationFee:$35/line.

• EarlyTerminationFee:Upto$175perline.

Taxes, Surcharges, and Fees• Tolls,taxes,surcharges,andotherfeesvarybymarket(andasofJuly1,2007,addbetween4%and

34%toyourmonthlybill)andareinadditiontoyourmonthlyaccessfeesandairtimecharges.

• MonthlyFederalUniversalServiceCharge(variesquarterlybasedonFCCrate)is11.3%.

• MonthlyRegulatoryCharge(subjecttochange)is4¢perline.

• MonthlyAdministrativeCharge(subjecttochange)is70¢perline.

• TheFederalUniversalService,RegulatoryandAdministrativeChargesareRingRingcharges,nottaxes.

Other Important Information:Ratesdo notapply to credit cardor operator-assisted calls,whichmaybe required in certainareas. Usageroundeduptonextfullminute.Unusedallowanceminuteslost.ChargesstartwhenyoufirstpressSEND or the call connects to a network on outgoing calls, and when the call connects to a network (which may be before it rings)onincomingcalls.TimemayendseveralsecondsafteryoupressEND or the call otherwise disconnects. For calls made on our network, we only bill for calls that connect (which includes calls answered by machines). Calls to ‘toll-free’numbersaretoll-free;youwillbebilledairtime.Billingforairtimeandrelatedchargesmaysometimesbedelayed.Delayedairtimewillbeappliedagainsttheincludedairtimeforthemonthwhenyouactuallymadeorreceivedthecall,eventhoughsuchchargesmayshowuponalaterbill.Thismayresultinchargeshigherthanyou’dexpectinthelatermonth.

Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Cell Phone Service Contract


Wrap Up: Your First Phone Bill

AftercomparingthedifferentRingRingplans,youdecidedtogowithPlanB,theStudentPlan.YoudecidedyoujustHADtohavethatorangephone,andtheplan($49.99)waswithinthemonthlybudgetyourparentsofferedtopay.However,you’reinforasurprisewhenthebillarrivesattheendofthefirstmonth.Tobegin,youwentoveryourallowanceofminutes,talkingfor575minutes.Youalsosentandreceived17textmessages,andcalledinformationfourtimes.Andsincethiswasthefirstmonth,therewasanactivationfeeof$35.00.Totopitoff,therewere$14.50ofmonthlyservicecharges.

1. Whatwasthetotalcost?

Basic rate:

Extra minutes x Cost per minute:

____minutesx_____/minute=_____

Text messages x Cost per message:

_____textmessagesx_____/message=_____

Information calls x Cost per call:

____callsx_____/call=______

Activation fee

Service charges & fees:

Total cost:

2. WasStudentPlanBthebestplanforyouconsideringyourcellphoneusethismonth?Whyorwhynot?

__________________________________________________________________________

__________________________________________________________________________

Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Wrap Up: Your First Phone Bill

Documents

MONEY MATTERS - XAPcalled “Money Matters.” In this unit, you’re going to learn all about money — how to keep track of what you earn, how to save it, and how to spend it wisely