Never Too Young: Personal Finance for Young … Too Young: Personal Finance for Young Learners ... Personal Finance for Young Learners was ... done at various points during the 12

Never Too Young: Personal Finance for Young Learners After School Program for Elementary School Students in Personal Finance and Economics

Authors

Judy Austin

Economic Education Consultant

Center for Economic Education & Entrepreneurship

University of Delaware

Cindy Fitzthum

Social Studies Teacher

Princeton High School

Princeton, MN

This material was made possible through funding by the ING DIRECT Kids Foundation.

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The Council for Economic Education expresses its thanks to the many individuals who were involved with this project.

Acknowledgments

Council for Economic Education

Rosanna Castillo

Manager, Program Administration

Chris Caltabiano

Vice President, Domestic Programs

ING DIRECT

Cathy MacFarlane

former Head of Corporate Relations

Brian Myres

Head of Sales

Bonnie Meszaros

Assistant Professor of Economics

Associate Director

Center for Economic Education

and Entrepreneurship

University of Delaware

Boy Scouts of America

Central Minnesota Council

Jane Holmberg

ScoutReach Coordinator

Mohamed Moalim

Program Aide

David Trehey

Scout Executive

Boy Scouts of America

DEL‐MAR‐VA Council

Atiya Chase

Cub Scout Program Specialist

Will Nielsen

Cub Scout Program Specialist

Cindy Olsavsky

Field Director

Denise Perez

ScoutReach Coordinator

Ken Rebeck

Associate Professor of Economics

Director, Center for Economic Education

St. Cloud State University

Field Test Sites

Bel Clare Community Center

St. Cloud, MN

East Side Boys and Girls Club

St. Cloud, MN

La Cruz Community Center

St. Cloud, MN

Ministry of Caring’s Homeless Shelter

Wilmington, DE

Roosevelt Boys and Girls Club

St. Cloud, MN

Southside Boys and Girls Club

St. Cloud, MN

Stubbs Elementary School

Wilmington, DE

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Introduction

The Council for Economic Education (CEE) is the leading organization in the United States that focuses on the economic and financial education of students from kindergarten through high school. For the past 60 years, our mission has been to instill in young people the fourth “R”—a real‐world understanding of economics and personal finance. CEE delivers its core mission of teaching K–12 students through professional development of teachers, providing educators with instruction in content and pedagogy, and developing engaging content in personal finance and economics. The K–5 after‐school program, Never Too Young: Personal Finance for Young Learners, is a critical program through which CEE delivers this mission.

Never Too Young: Personal Finance for Young Learners was developed in response to a growing interest in teaching students about personal finance through settings outside of the traditional school day. While there is no lack of material for teaching personal finance, there are few approaches that take into account the particular features of an after‐school setting—for example, the broader range in age and ability of students participating in an after‐school group; that the group may meet in a location that is not set up like a standard classroom; more sporadic participant attendance; and, perhaps most importantly, a lack of trained educators prepared to teach personal finance in this setting. This program responds to these gaps. The program teaches young students about financial choices, cost‐benefit analysis for purchases, the role of an entrepreneur, and the economics and finances of their individual communities—all with a goal of helping children understand that saving is a good thing for us as individuals and as a nation. The program has two distinctive features that align with CEE’s delivery strategy of providing both content and pedagogy: a 12‐lesson manual and a training component for service providers. The lessons in the manual focus on topics including scarcity, choice, opportunity cost, decision making, saving, spending, earning income, budgeting, taxes, and entrepreneurship. They are drawn from a range of sources, including CEE’s financial education series Financial Fitness for Life. All lessons have been modified from their original sources to better align to an after‐school setting. All lessons are hands‐on, keeping the students actively engaged with the content. One key feature is ECONObucks, which reward students for participating, being good citizens and correctly answering questions. During the lessons and at the conclusion of the program, students are provided with the opportunity to redeem their ECONObucks for prizes. ECONObucks both increase student participation and teach important money skills. The program is designed to be taught by after‐school service providers, with support from content experts. The service providers are connected to seasoned economic educators, who train providers on both the content and delivery, and then provide follow‐up support during initial implementation to ensure that service providers are comfortable with teaching the lessons.

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Table of Contents

Acknowledgements ............................................................................ 3

Introduction ....................................................................................... 4

Lesson Features .................................................................................. 6

ECONObucks ...................................................................................... 7

Lessons ............................................................................................... 9

Lesson 1 We Have Wants ................................................................ 9

Lesson 2 Scarcity ........................................................................... 23

Lesson 3 Choices, Costs and Benefits ............................................ 30

Lesson 4 Consumers, Producers and Resources ........................... 36

Lesson 5 Entrepreneurs in the Community and Advertising ......... 47

Lesson 6 Entrepreneurship and Problem‐Solving ......................... 62

Lesson 7 Entrepreneurship and Market Day ................................. 76

Lesson 8 Budgeting ....................................................................... 86

Lesson 9 Saving Your Money ......................................................... 96

Lesson 10 Government‐Provided Goods and Services ............... 104

Lesson 11 Market Day—Implementation ................................... 112

Lesson 12Market Day—Wrap‐up ................................................ 117

Word Wall Cards ............................................................................ 122

Children’s Literature ....................................................................... 133

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Lesson Features

Question of the Day—Each lesson has a question of the day. Each question sets the focus

for a lesson. Questions of the day are introduced in Procedure Step 1 of each lesson; older

students are asked to answer the question of the day as a lesson assessment.

Word Wall Cards—Vocabulary is a critical part of learning economics and personal

finance. Each lesson introduces three to four concepts. Word Wall Cards are included for

each new vocabulary word. If space is available, these cards can be displayed on a Word

Wall for the duration of the 12 lessons.

Assessments—Each lesson has a short assessment. Because these materials will be used

by a range of students in kindergarten through Grade 5, two assessments are offered—

one for younger students and one for older students.

Preparation—All 12 lessons require materials preparation. The Materials section lays out

specific instructions on what is needed. A starburst to the left of the lesson title signals

that additional preparation is required beyond the recommended 30 minutes prep time

per lesson.

Market Day—Lesson 11 is the Market Day, in which students sell goods and services they

have produced to adults, family members, and one another. Preparation is required

before running the Market Day. Some lessons have an additional lesson component at the

end called Market Day Preparation. This section lays out for instructors what needs to be

done at various points during the 12 weeks to be ready for Market Day. In addition, any

handouts related to Market Day are identified with a black border. These include such

things as a parent letter, a Market Day timeline, and list of business ideas.

Age Levels—Lessons are designed for use with students in Grades K–5. To address this

range of grades, hands‐on activities are included throughout the lessons. These activities

were carefully selected for this purpose, and where appropriate, suggestions are given on

how to adapt them for use with students of different ages.

Lesson Order—Lessons 1–4 focus on economic concepts with particular attention to

wants, scarcity, and choice. Lessons 5–7 teach about entrepreneurship and include

preparation for Market Day. Personal finance content is taught in Lessons 8–10. The last

two lessons focus on setting up and running Market Day, determining if businesses made

a profit, and completing reflections on the experience.

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ECONObucks

ECONObucksareusedasincentivesthroughoutthe12lessonsinNeverTooYoung:PersonalFinanceforYoungLearnerstoincreaseparticipationandmotivation.StudentsarerewardedwithECONObucksinavarietyofwaysforparticipating,beinggoodcitizens,completingwork,andansweringquestions.StudentscanredeemtheirECONObucksforprizesduringlessonsandattheconclusionofMarketDay.GettingStarted

StartbyduplicatingmultiplesheetsofECONObucksongreenpaper,ifpossible,andcuttingapartthebills.(Seethefollowingpage.)

Makesuretogiveeachstudentanenvelope,orhavethestudentscreatewalletsforstoringtheirECONObucks.Collecttheenvelopesorwalletsattheconclusionofeachlessontoeliminatethechancethatstudentswilllosetheirmoney.

UsingECONObucks

Touseasanincentiveprogram,simplygiveECONObuckstostudentswhoareparticipatinginactivities,beingmodelcitizens,correctlyansweringquestions,etc.

StudentsuseECONObucksearnedasproducerstopurchasematerialstomakeproductstosellandasconsumerstopurchasegoodsandservicesatMarketDay.

ForstudentstospendtheirECONObucks,setupatableofsmalltoys,candy,pencils,orstickers,andpriceeachiteminECONObucks.Beforeallowingstudentstoshop,remindthemthattheywillbeabletopurchaseadditionalitemsafterMarketDay.Letstudentschooseiftheywanttospendtheirmoneynoworsaveit.Thiswouldbeagreattimetoreviewopportunitycost.SalesheldduringtheLessons1‐10areoptional.ThefinalsaleinLesson12isacriticalpartoftheprogram.

Attheendofall12lessons,haveafinalsalegivingthestudentsonelastopportunitytospendtheirECONObucks.AnalternativeistoconductanauctionusingECONObucks.Priortobidding,havestudentscountthenumberofECONObuckstheyhave.AnotherapproachistohavestudentswritetheirnamesontheECONObucksattheconclusionoftheprogram.Placeenvelopesbyvariousprizes.HavestudentsplacetheirECONObucksintheenvelopesofprizestheywouldliketowin.DrawanECONObuckfromeachenvelopeandannouncethewinner.

UseECONObuckstoteachsimplebankingskills.Forinstance,givestudentsbankingregistersandteachthemtotracktheirincomeandexpensesthroughthelessons.Implementasavingsprogram(withtheteacheractingasthebank)andrewardstudentswith“interest”forsaving.

CreatenewsheetsofECONObucksusingdifferentdenominationstoteachadditionalmoneyskills.

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Lesson1–WeHaveWants

QuestionoftheDay:Whydowehavetomakechoices? LessonComponents

Description

LessonDescription

Whenshoppingatastore,astudentmaysay“Iwantthis”toanadult.However,studentsmayalsowantlotsofotheritems,too!Studentswillidentifywantsandhowtheycanprioritizetheirwantstogainthemostsatisfaction.

Concepts Wants Choice Economics

Objectives Studentswillbeableto: Identifywhatawantis. Explainwhytheyhavetomakechoices. Explainwhyitisnecessarytoprioritizetheirwants.

TimeRequired

60minutes

Materials Visual1.1(QuestionoftheDay)–onecopyforinstructor Visual1.2(Song)–onecopypertwostudents Handout1.1(NicholasHasManyWants)–onecopyforinstructor WordWallCards–wants,choice,economics Coloredpencils,crayons,ormarkers Whiteboardorchalkboard Blankpaper–onesheetperstudent Pencils–oneperstudent

Procedure 1. DisplayVisual1.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.

2. Askstudentswhytheycan’thaveeverythingtheywant.(Answersmay

vary.)3. Write“Wants”ontheboard.4. Drawacirclearounditandincluderoomtowritestudents’responses

aroundtheword.5. Tellstudentsthatawantissomethingdesiredorwishedforlikea

newbike,avacation,orapet.Displaythe“wants”WordWallCard.6. Brainstormfivewantsandwritethemontheboardasaclass.

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7. Distributeablankpieceofpapertoeachstudent.Havethemfoldthepaperintofoursections.Havethemdrawfourpicturesofwantstheycurrentlyhave,oneineachbox.Askstudentstoputtheirnamesonthebackoftheirpapers.

8. Discussthefollowing:

a. Canyouhaveallofyourwants?(Manywillsayno.)b. Whynot?(Parentswon’tbuythem,ortheydonothaveenoughtime

ormoney.)c. Becauseyoucan’thaveeverythingyouwant,whatdoyouhaveto

do?(Makeachoice.)

9. Tellstudentsthatmakingachoicemeansmakingadecisionwhenfacedwithtwoormorepossibilities.Displaythe“choice”WordWallCard.

10. Explainthatbecausetheycan’thaveeverythingtheywant,theymust

makeachoice.Tohelpthemmakeachoicetheyneedtoprioritizeorranktheirwants.

11. Tellthestudentsthattheyaregoingtorankorprioritizetheirfour

wants.Givethestudentsafewminutestoranktheirwants1–4byplacinga“1”nexttothepictureofthewanttheywouldmostliketohaveanda“4”nexttotheitemtheywouldwanttheleast.

12. Tellthestudentsyouarenowgoingtoreadthemastoryaboutsaving

forawant.Tellstudentsthatsavingmeanssettingmoneyasideforfutureuse.

13. ReadHandout1.1(NicholasHasManyWants).

Discussthefollowing:a. WhatweresomeofNicholas’swantsinthestory?(acandybar,

goldfish,ahamster)b. WhywasNicholassorryhehadboughtthecandybar?(Heateit,

andthenitwasgoneandhewasoutofmoney.)c. WhydidDadsayNicholashadtomakeadecision?(Hehadlotsof

wants,butnotalotofmoney.)d. WhatspendingchoicemustNicholasmake?(Hemustdecideifhe

wantstobuyahamsteroragoldfish.)e. HaveanyofyouhadtomakeadecisionlikeNicholas?(Answers

mayvary.)f. WhatcouldNicholasdotosavemoneytoachievehisgoalofbuying

apet?(Savehisallowance;openalemonadestand.)

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14. Tellthestudentstolookattheirwantpictures.Explaintothemthatoverthenextfewweekstheyaregoingtostartlearningaboutsomethingcalledeconomics.Displaythe“economics”WordWallCard.Tellstudentsthateconomicsisastudyofhowpeoplesatisfytheirwantsthroughchoicestheymake.

Closure 1.Discussthefollowing:

a. Whydowehavetomakechoicesamongourwants?(becausewecan’thaveeverythingwewant)

b. Whycan’tyouhaveallofyourwants?(notenoughtime,notenoughmoney)

c. Howdoyoumakeachoiceamongyourwants?(Answersmayvary.)d. Whyisitimportanttorankyourwants?(becauseithelpsyoumake

aninformeddecisiononwhatyouwantthemost)e. Whatiseconomics?(learninghowpeoplesatisfytheirwants

throughchoicestheymake)

2.DisplayVisual1.2(Song)orhandoutcopiestostudents.3.Explaintothestudentsthattheywillbesingingasongcalled“I’veGotMoney”tothetuneof“AreYouSleeping,BrotherJohn.”

4.Singthesonganddiscussthefollowing:

a. Whatwerethewantsinthesong?(Savetogetsomethinglater,somethingbig;spendtogetsomethingnow,somethingsmall;ordosomeofboth.)

b. Whywasitnecessarytomakeachoiceonwhattodowiththemoney?(notenoughmoneytospendandsavingallofit)

c. Wouldyouspend,save,ordosomeofboth?(Answerswillvary.)

Assessment 1. Olderstudents–HavestudentswriteananswertotheQuestionoftheDay.

2. Youngerstudents–Readthefollowingstory:

Nicholas’ssisterAnnahasonedollar.Shegoestothetoystoreandseestwothingsshewantstobuy.Bothcostonedollareach.

Then,askstudentsthefollowing:a. CanAnnahavebothitems?(no)b. Whynot?(Shedoesnothaveenoughmoney.)c. WhatdoesAnnahavetodo?(Makeachoice.)d. HowcanAnnamakeagoodchoice?(Rankherwants.)

Sources FinancialFitnessforLife:StudentStorybookK–2,CouncilforEconomicEducation,2010

FinancialFitnessforLife:TeacherGuideK–2,CouncilforEconomicEducation,2010

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Visual1.1

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Visual1.2–Song

I’veGotMoneyLyricsThefollowingisasongaboutdecisionsconcerningspendingandsaving.

Tune:AreYouSleeping,BrotherJohn

I’vegotMoney,I’vegotMoney,WhatshouldIdo?WhatshouldIdo?

Imustmakeachoice,Imustmakeachoice,

Spendorsave,Spendorsave.

I’vegotMoney,I’vegotMoney,Icouldspend,Icouldspend,

Gettingsomethingnow,Gettingsomethingnow,

Somethingsmall,Somethingsmall.

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Visual1.2(cont.)–Song

I’vegotMoney,I’vegotMoney,Icouldsave,Icouldsave,

Gettingsomethinglater,Gettingsomethinglater,

Somethingbig,Somethingbig.

I’vegotMoney,I’vegotMoney,WhatshouldIdo?WhatshouldIdo?Spendalittlenow,Spendalittlenow,Savesome,too!Savesome,too!

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56 FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education

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Mom, Dad, Christopher and Nicholas were sitting at the dinner table

talking about the day and what everyone had done. Nicholas told

Dad about going to the grocery store with Mom and Christopher.

He mentioned that he had bought a candy bar with some of his birthday money,

and he had eaten the candy on the way home.

Dad asked, “Well, have you decided what to do with the rest of your money?”

Nicholas shook his head. “No, I haven’t,” he said. “I’ve been dreaming about all

the things I want to buy. I want to go to the school carnival. I want to see the new

movie at the theater. I would like to buy some new baseball cards for my collection,

but I think I really, really want a hamster.”

“Sounds to me like you have a problem, son,” Dad said. “You have a lot of

wants but not a lot of money. You satisfied one of your wants when you bought that

candy bar, but now you have even more wants.”

Story 8

Nicholas Has Many Wants

57FINANCIAL FITNESS FOR LIFE: Student Storybook Grades K-2 ©Council for Economic Education

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“Yes, I really wanted that candy bar this morning,” Nicholas said. “But now I’m

sorry I bought it, because it’s gone, and so is the money!”

“And now you want a lot of things,” Dad said. “You want to go places and do

things, you want baseball cards, and you want a hamster. You are really going to

have to make some choices.”

Christopher interrupted, “Oh boy! We're going to get a hamster! Yea! Yea!”

“Now wait a minute, Christopher,” Nicholas said. “This isn’t your money, and it

isn’t your decision. I haven’t made up my mind yet.”

Dad asked, “What makes you want a hamster so much? You’ve been talking

about this for quite a while.”

“Brian has a hamster, and he’s always telling me how much fun it is to play with

Scamper,” said Nicholas.

“Is that why you want a hamster—because Brian has one? Do you know anything

about hamsters?” Dad asked.


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“Well, I know that Scamper eats out of Brian’s hand,” Nicholas said. “And he

plays in his cage, and he has an exercise ball that he runs around in. Brian says the

whole family laughs at him and enjoys watching him. Scamper even stores food in

his cheeks … kind of like Christopher does. Only Scamper’s a lot cuter!” Nicholas

chuckled as he looked at Christopher, and Christopher scowled back at him.

Dad replied, “Nicholas, don’t tease your brother. I know you want a hamster, but

before you make a decision you need to think about all the things a hamster needs.

You will have to take care of the hamster and feed it. You said Scamper has a cage

and an exercise ball. What else does a hamster need to have? You should find out

more about hamsters before you make a decision.”

Nicholas looked at Mom. “Will you take me to the pet store some time,” he

asked, “so I can find out more about hamsters?”

“Sure,” Mom said. “Maybe we could go tomorrow afternoon.”


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The next day as Mom and the boys approached the pet store, Christopher ex-

claimed, “Oh, look at the picture of the pretty fish. What kind is it? What does the

sign say?”

“It says S-A-L-E, and that spells sale,” Mom answered, pointing to the letters.

“The sign says that goldfish are on sale for a special price. And if you buy one, you

get one free.”

“You know, Mom, goldfish might be fun,” Nicholas said. “And they wouldn’t

cost very much either. Maybe that’s what I’ll get!”

“But Nicholas,” Mom said as they entered the store, “you told us last night that

you wanted a hamster. Now this afternoon you want goldfish. You don’t have

enough money to buy a hamster and goldfish. Are you sure you’re ready to make a

decision?"

Just then a sales clerk approached them. “Hello. How can I help you?” he asked.

“I came here to find out what a hamster costs," Nicholas replied. He hesitated

and then said, "But now I don’t know whether I want a hamster or goldfish. Making

money choices is pretty hard. My wants just keep going on and on, but my money

doesn’t!”

Nicholas knew he had to make a decision.


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Lesson2–Scarcity

QuestionoftheDay:Whatisscarcity?LessonComponents

Description

LessonDescription

Studentswilllearnaboutgoodsandservicesandwhytheycan’thaveallthegoodsandservicestheywant.Peopleexperiencescarcityofgoodsandservicesthroughouttheirdailylives.Throughactivities,studentswilllearnthatscarcityrequiresthemtomakechoices.

Concepts Goods Services Scarcity

Objectives Studentswillbeableto: Defineagoodasanobjectthatsatisfiesaperson’swants

(somethingthatcanbetouched). Defineaserviceasanactionthatsatisfiesaperson’swants

(somethingsomeonedoesforyou). Definescarcityasnotenoughtosatisfyeveryone’swants. Giveexamplesofscarcity. Explainwhyscarcityalwaysrequiresapersontomakeachoice.

TimeRequired

60minutes

Materials

Visual2.1(QuestionoftheDay)–onefortheinstructor Handout2.1(Wheels)–cutapart,enoughcopiesforfourwheelsper

student Handout2.2(NotEnoughWheels!)–onecopyperstudent WordWallCards–goods,services,scarcity Chalkboardorwhiteboard Aninexpensiveitemsuchasaspecialpenorcandy Glue Musicsource Chairs–oneperstudent


2. Thethingswewantarecalledgoodsandservices.Displaythe“goods”

and“services”WordWallCards.Drawtwocolumnsontheboard;labelonecolumn“Goods”andtheother“Services.”

3. Explaintothestudentsthatgoodsarethingsthatwecantouch,suchas

itemsinaclassroom.Askseveralstudentstogiveexamplesofgoods.(food,shoes,books,games,etc.)Writethesuggestionsinthe“Goods”column.

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4. Explaintothestudentsthatservicesarethingsthatsomeoneelsedoes

foryou.Askseveralstudentstonamesomeservices.WritethesesuggestionsintheServicescolumn.(amechanicfixingyourcar,Momcleaningyourbedroom,Scoutleadergiveninstructions,policeofficerdirectingtraffic,etc.)

5. Askstudentsiftheycanhaveeverythingtheywant.(no)Tellthe

studentsthatthereasontheycan’thaveeverythingtheywantisduetoscarcity.Displaythe“scarcity”WordWallCard.

6. Tellstudentsthatscarcitymeansnotenoughofsomethingtosatisfy

everyone’swants.Tellstudentsthereisneverenoughtimetodoallthethingstheywouldliketodoormoneytobuyallthethingstheywouldliketohave.Becauseofscarcity,peoplemustconstantlymakechoicesaboutwhattodoorhowtousetheirtimeormoney.Askstudentswhatchoicemeans.(havingtomakeadecisionbetweentwoormorepossibilities)

7. Askthestudentswhatkindsofthingstheycanthinkofthatmightbe

scarce.(moneytobuyicecreamwhenthetruckcomesthroughtheneighborhood,schoolcomputersforeveryonewhowantstouseone,landforanewplayground,treestomakeallofourpaperproducts,timetoplaysocceranddohomeworkafterschool,etc.)

8. Explaintothestudentsthatsometimestherecanbeascarcityof

somethingyoudon’tthinkisscarce.Holduptheitemyoubrought(somethinginexpensivesuchasaspecialpenorpenciloracandybar)thatstudentsmightliketohave.Askstudents:a. Howmanyofyouwouldlikethisitem?(Moststudentswillwantthe

item.)b. Whatistheproblemtheclassfaces?(notenoughforeveryonewho

wantsone)c. Whatisthisproblemcalled?(scarcity)

9. Havestudentsgivesuggestionsabouthowtodecidewhoshouldgetthescarceitem.(Possibleanswersincludelottery,astudentwiththebestparticipationorbehavior,aclassleaderorrolemodel,anauctionusingECONObucks,divideitup,taketurnswithit,etc.)Writethesuggestionsontheboard.Allowstudentstovoteontheallocationmethodtheythinkisbest,andusethewinningmethodtodeterminewhowillgetthescarcegood.

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10. Distributetoeachstudentglue,acopyofHandout2.2(NotEnough

Wheels!)andfourwheelsfromHandout2.1(Wheels).Explainthatthecirclesarewheels.Pointoutthatlotsoftoysandtypesoftransportationhavewheels.


a. WhatisthetotalnumberofwheelsthatwouldbeneededforalloftheitemspicturedinHandout2.2?(20)

b. Howmanywheelsdoyouhave?(4)c. Whatisscarce?(wheels)

12. Tellstudentsthatbecauseofscarcity,theywillhavetomakechoices.Tellstudentstochoosehowtheywouldliketousetheirwheelsandthengluetheirwheelsintoplaceontheactivitysheet.Pointoutthattheymaychoosemorethanoneofanitem(forexample,twoscootersorfourunicycles).

13. Whenthestudentshavefinishedgluing,askifanyonechosetheroller

skate.(no)Whynot?(can’tuseasinglerollerskate)Ifyouwantedrollerskates,whatcouldyoudotosolvethisproblem?(Youandafriendcouldbothchoosetoputwheelsonskatesandthensharethepair.)

14. Havestudentstellhowtheyusedtheirwheelsandwhy.(pickedfavorite

ormostuseful;perhapswantedmostitemspossiblesochosebicycleortricycleandunicycle,ortwoscooters,orfourunicycles)Aftereveryonehashadaturn,askifeveryonemadethesamechoice.(no)Whynot?(Individualshavedifferentwants.)

15. Playmusicalchairs.Attheendofthegame,ask:

a. Dideveryonegetachair?(no)b. Whynot?(becausechairskeptdisappearing;ascarcityofchairs)c. Ifthereisnotenoughofsomethingforeveryonewhowantsit,what

dowecallthisproblem?(scarcity)

16. Rewardthewinner(s)withECONObucks.

Closure 1. Discussthefollowing:a. Whataregoods?(objectsthatsatisfyaperson’swants;something

thatcanbetouched)b. Whatareservices?(anactionthatsatisfiesaperson’swants;

somethingsomeonedoesforyou)c. Whatisscarcity?(notenoughofsomethingtosatisfyeveryone’s

wants)d. Namethingsthatarescarce.(time,money,food,etc.)

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Assessment 1. Olderstudents–HavestudentswriteananswertotheQuestionofthe

Day.2. Youngerstudents–Readthefollowingstorytothestudents:

A2ndgradeclasshasthreefieldtripsplanned.Theyareplanningtogotoathemepark,asciencemuseum,andthezoo.Oneday,theprincipalannouncesthereareonlyenoughbusesforonetrip.Thestudentsmustnowchoosewhattriptheywanttogoon.

Then,askstudentsthefollowing:a.Whatisscarce?(buses)b.Howdoyouthinktheclassmightchoose?(Answerswillvary.)

Source StrategiesforTeachingEconomics,PrimaryLevel(Grades1–3),Joint

CouncilonEconomicEducation,1977

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Visual2.1

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Handout2.1–Wheels

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Handout2.2–NotEnoughWheels!

Name_____________________________

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Lesson3–Choices,Costs,andBenefits

QuestionoftheDay:HowdoImakethebestchoice?

LessonComponents

Description

LessonDescription

Studentswilllearnthatlifeisallaboutchoices.Studentswillexplorehowpeoplemakechoicesbyevaluatingtheopportunitycostsoftheirdecisions.Makingchoicesisnever‐endingandnevereasy,butnecessarybecauseourresourcesarealwayslimited.Youmustweighthepros(benefits)andcons(costs)tomakethebestpossibledecisions.

Concepts

Benefits Costs OpportunityCost

Objectives

Studentswillbeableto: Identifychoicespeoplemakeeveryday. Definecostsasthingsthatareunfavorabletoadecisionmaker. Defineopportunitycostasthenextbestthinggivenupwhen

someonemakesachoice. Definebenefitsasthingsthatarefavorabletoadecisionmaker. Analyzecostsandbenefitswhenmakingachoice. Identifytheopportunitycostofachoice.

TimeRequired

60minutes

Materials

Visual3.1(QuestionoftheDay)–onecopyforinstructor Handout3.1(BenefitsandCostsGrid)–onecopypergroup Handout3.2(OpportunityCostScenarioCards)–onecopy,cut

apartandplacedinacontainer WordWallCards–benefits,costs,opportunitycost Pencils–oneperstudent Whitepaper–onesheetperstudent

Procedure

1. DisplayVisual3.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthislessonwillhelpthemanswerthequestion.

2. Readthefollowingintroductiontothestudents:

Decisions,decisions!Everythinginlifeinvolvesmakingdecisions.WhatshouldIweartoday?WhatshouldIhaveforbreakfast?ShouldIstudymoreforthetest?

Askstudentswhatothersituationstheycanthinkofthatrequiremakingchoices(Answerswillvarybutmayinclude:WhatshouldIhaveforlunch?ShouldIspendmymoneyorsaveit?ShouldIgotoamoviewithfamilyorspendtimeplayingatafriend’shouse?)

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3. Makethefollowingpoints:

Choicesaremadebypeoplebasedupontheirtastes,theirincome,andthepricesofgoodsorservices.

Everydecisionthatyoumakewillhavesomethingsthataregood,calledbenefits,andsomethingsthatmightnotbesogood,calledcosts.Benefitsarethingsthatarefavorabletoadecisionmaker,andcostsarethingsthatareunfavorabletoadecisionmaker.Displaythe“benefits”and“costs”WordWallCards.

Whenmakingachoice,ifyoucanimmediatelythinkoflotsofcosts,youmostlikelywon’tmakethatchoice.Forinstance,ifyoudon’tlikerollercoastersandtheweatherisrainy,youmightdecidenottogotothecarnival.Ontheotherhand,youneedtolookatthebenefitsofgoingtothecarnival.Maybeyouwouldenjoybeingwithyourfriendsandplayingthearcadegamesatthecarnival,andmaybeyourmomhasofferedtopay.

Youmustweighthecostsandbenefitstohelpyoudecidewhatyouwanttodo.Oftenithelpstowritedownthecostsandbenefitssoyoucanactuallyseewhichlistislonger.

4. Askstudentshowtheymakechoices.Havestudentssuggestwaysto

helpmakedecisions.Giveexamplestopromptresponses.Forexample,youwanttorideyourbikeandreadabook,butit’sraining.Whatwouldinfluenceyourchoice?(weather)

5. Dividethestudentsintogroupsofthree.(Youmightwishtodivide

accordingtogradelevel.)Eachgroupmustselectarecorder.DistributeonecopyofHandout3.1(BenefitsandCostsGrid)pergroup.Tellstudentstolistthecostsandbenefitsforeachalternativeanddeterminewhichactivitytheywilldothissummerbyratingeachactivity1–4with“1”beingtheirfirstchoiceand“4”beingtheirlastchoice.Pointoutthatthereisaspaceforthemtowriteanactivitytheywouldliketodothatisn’tlisted.Havegroupssharetheirdecisions.Askstudentswhyallgroupsdidnotmakethesamechoice.(Differentpeoplehavedifferentinterestsandtastes;groupshavedifferentcriteria.)

6. Askeachgroupwhattheirsecondchoicewouldhavebeen.Explain

thatyoursecondchoicehasaspecialname.Itiscalledyouropportunitycost.Explainthatopportunitycostisyournextbestalternativeyougiveup.Itisyoursecondchoice.Yourfirstchoicehascostyoutheopportunitytodoyoursecondchoice.Displaythe“opportunitycost”WordWallCard.

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7. Distributeapieceofplainwhitepapertoeachstudent.Havestudentswritedownordrawpicturesoftheirthreefavoriteactivitiestodoafterschool.Havethemputa“1”bytheirmostfavorite,a“2”bytheirsecondfavorite,anda“3”bytheirthirdfavoriteactivity.Tellthemtodrawacirclearoundtheirfavoritechoiceanddrawaboxaroundtheopportunitycost(onlychoice“2”).Havethemeachshare,statingtheirfirstchoiceandtheiropportunitycost.

Closure

1.Discussthefollowing:a. Whatarecosts?(thingsthatareunfavorabletothedecisionmaker,

lossorsacrificenecessarytoachieveorobtainsomething)b. Whatarebenefits?(thingsthatarefavorabletoadecisionmaker)c. Whatisopportunitycost?(thenextbestalternativegivenupwhen

achoiceismade)Assessment 1.Olderstudents–HavestudentswriteananswertotheQuestionofthe

Day.2.Youngerstudents–Handeachstudentaslipofpaperfromthe

containerthatcontainsscenariosfromHandout3.2(OpportunityCostScenarioCards).Eachstudentwillreadthescenario,statethechoice,andthenselectanotherstudenttotellwhattheopportunitycostisinthatscenario.Continueuntilallslipshavebeenread.

32

Visual3.1

33

Handout3.1–BenefitsandCostsGrid

Names___________________________________________________

Problem:WhatactivitydoIwanttodothissummer?

Activities Costs

Benefits

Basedonyourcostsandbenefits,numberyourchoices1,2,3,4

Sportsteam

Swimming

Camping

Chooseyourown

____________________

Decision___________________________________________________________________________

34

Handout3.2–OpportunityCostScenarioCards

YouchoosetogotothemovieswithfamilyinsteadofgoingtoMcDonald’swith

yourfriends.

Johndecidedtoeatahamburgerinsteadofahotdog.

Theblueshirtwascool,butMatthewdecidedtogettheyellowone.

Danalovespuddle‐splashing,butdecidedtousehistimemakingmudsculptures.

Lesreallywantedanewvideogame,butusedhismoneytobuythebikehelmetthatheneeded.

IfRyanbuyssneakers,hewon’tbeabletoaffordanewfootballjersey.

IfIbuyalessexpensivebike,Icouldsavetheextramoney.

Jaimewantstwonewbooks,Ripley’sBelieveItorNotandachoose‐your‐own‐endingmystery.HecouldusesomefactsfromRipley’stowritehisreportfor

school.

Mackenziereallyfeelslikesleddingandswimming,butitis20degreesoutside!

Samwouldliketobeoutsideplaying,butheknowshehasasciencetesttomorrow.

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Lesson4–Consumers,Producers,andResources

QuestionsoftheDay:Howarepeoplebothproducersandconsumers?Whatarehumanandcapitalresources?

LessonComponents

Description

LessonDescription

Peoplearebothproducersandconsumers.Whenpeopleareprovidinglabor,theyarehumanresources,andthetoolsandmachinestheyusetoproducegoodsorservicesarecapitalresources.Inthislesson,studentswillbegroupedintosmallcompaniestoproduceasmanybirthdaydecorationsaspossiblewithscarceresources.

Concepts Consumer Producer HumanResources CapitalResources

Objectives Studentswillbeableto: Defineaconsumerasapersonwhousesgoodsandservices. Defineaproducerassomeonewhomakesgoodsorprovidesa

service. Givethreeexamplesofhumanresourcesandcapitalresources.

TimeRequired

60minutes(plusadditionalpreptime)

Materials Visuals4.1aand4.1b(QuestionsoftheDay)–onecopyforinstructor

Handout4.1(ProductionInstructions)–onecopypergroup Handout4.2(Patterns)–cutapart,onesetofpatternsper

group Handout4.3(ClassifyingResources)–onecopyperstudent Handout4.4(ClassifyingResourcesAnswerKey)–onecopyfor

instructor WordWallCards–consumer,producer,humanresources,

capitalresources Whiteboardorchalkboard Foreachteam:

Threepencils Threepairsofscissorsperteam Fivesheetseachofred,blue,yellowandgreen

constructionpaper Tensandwichbags Onepaperlunchbag

WatchortimerProcedure 1. DisplayVisuals4.1aand4.1b(QuestionsoftheDay)totheclass.

Readthequestionsandtellstudentsthatthislessonwillhelpthem

REQUIRES ADDITIONAL PREP TIME

36

answerthequestions.2. Askstudentsthefollowing:

a. Whatisaconsumer?(apersonwhobuysand/orusesgoodsandservicestosatisfytheperson’swants)Displaythe“consumer”WordWallCard.

b. Whataresomeexamplesofthingsyoudoasaconsumer?(Writewithapencil,eatlunch,buyclothes,etc.)

c. Whatisaproducer?(someonewhomakesgoodsorprovidesaservice)Displaythe“producer”WordWallCard.

d. Whataresomeexamplesofthingsyoudoasaproducer?(Answersmightincludecleaningyourbedroom,mowinglawns,makinglemonadetosell,helpingyourneighborcarrygroceries,etc.)

3. Write“BirthdayParty”ontheboard.Askstudentswhatcomesto

mindwhentheythinkofabirthdayparty;writethesuggestionsontheboard.(Answerswillvary.)

4. Dividetheclassintogroupsoffour.Giveeachgroupthreepencils,

threepairsofscissors,onesetoffourpatterns(Handout4.2),andfivesheetseachofred,green,blueandyellowpaper,apaperlunchbag,and10sandwichbags.

5. Explainthattheyareallgoingtobeproducers.Eachgroupisa

smallcompanythatwillbeproducingbirthdaydecorations.Theyaregoingtoproduceasmanyitemsastheycanin20minutes.

6. Showthecut‐outbirthdaypartypatternsandpassoutHandout4.1

(ProductionInstructions).Readtheinstructionstothestudents.Tellthestudentsthatwhenmakingaproduct,qualityismoreimportantthanquantity,soitisveryimportanttocutouteachdecorationverycarefullyandoneatatimesothateachcompletedproducthassmoothedges.

7. Informthestudentstheyhave20minutestoproducetheir

assigneditems.Startproduction.8. Stopproductionafter10minutes,andtellstudentstheyhaveused

halftheallottedtime.Givethestudentstwominutestoinspecttheirworktomakesureitisofgoodqualityandtoreorganizetheircompaniestobemoreefficient.

9. Tellproducerstheyhave10moreminutes.Resumeproduction.

37

10. Stopproductionafter10minutes.Haveproducersplaceallthe

completedsandwichbagscontainingdecorationsintothepaperbagandlabelthebagwiththestudents’names.Collectallcompletedbags.Collectallunusedmaterials.

11. Givethecompletedbagstoapanelofjudges(sittingawayfromthe

group)whowillinspectthematerialstomakesuretheyareneatandcomplete.Givethegrouponepointforeachcorrectandneatpacket.

12. Explaintothestudentsthatpeoplewhodothementalandphysical

worktoproducegoodsorservicesarecalledhumanresources.Displaythe“humanresources”WordWallCard.

13. Explaintothestudentsthatgoodsthatareproducedandusedto

produceothergoodsandservicesarecalledcapitalresources.Examplesaretools,equipment,andfactories.Pointouttostudentsthatcapitalresourcesarenotusedupintheproductionprocess.Theyareusedoverandover.Displaythe“capitalresources”WordWallCard.


a. Whowerethehumanresourceswhenmakingthedecorations?(thestudents)

b. Whatcapitalresourcesortoolsdidyouusetomakethedecorations?(scissors,patterns,andpencils)

c. Howmanygroupshadenoughcoloredpapertoproduce10ofeachofthedecorations?(all)

d. Howmanygroupshadenoughoftheothersuppliesforeachpersontoproducecompletesets?(none)

e. Whyweren’tyouabletoproduce10qualitysets?(Answersmightincludenotenoughworkers;notenoughresourcesforeverypersontodoeveryjob;inordertogettheneatestproduct,youhadtomatchaperson’sskillswithhisjob.)

f. Whatwasscarceinthisactivity?(humanandcapitalresources,space)

g. Howdidyourcompaniessolvetheseproblems?(Answerswillvary,butmightincludecreatinganassemblylineinordertomakesuretheycouldcompletethesets.)

h. Howcouldyouhaveincreasedyourproduction?(morecapitalandhumanresources)

i. Howcouldyoubeaconsumerinthisactivity?(whenyoupurchasethedecorationsfromthestore)

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15. Afterthejudging,announcethewinningproductionteam.YoucouldpaythemwithECONObucks.

Closure 1.Discussthefollowing:a. Whatisaconsumer?(apersonwhousesgoodsandservicessuch

assomeonegettingahaircutorbuyinggroceries)b. Whatisaproducer?(someonewhomakesgoodsorprovidesa

servicesuchasateacherordoctor)c. Whatarehumanresources?(peoplewhodothementaland

physicalworktoproducegoodsandservices)Giveanexample.(Answerscouldincludeteachers,Scoutleaders,etc.)

d. Whatarecapitalresources?(goodsthatareproducedandusedtomakeothergoodsandservices)Giveanexample.(Answerscouldincludeanytools,equipment,orphysicalplants.)

Assessment 1. Olderstudents–HavestudentswriteanswerstotheQuestionsof

theDay.2. Youngerstudents–DistributeonecopyofHandout4.3(Classifying

Resources)toeachstudent.Workingindependently,studentswilllisthumanandcapitalresourcesneededforcertainbusinesses.Shareanswersuponcompletion.

Sources Focus:Grades3–5Economics,NationalCouncilonEconomic

Education,2005

39

Visual4.1a

40

Visual4.1b

41

Handout4.1–ProductionInstructionsYourtaskistomake10setsofpartydecorationsandpackagethem.1.Tracepatternsoncoloredpaperasfollows:

Red:partyhat Green:gift Blue:balloon Yellow:cake

2.Cutoutthetraceddesignsforeachdecoration.Cutonlyoneatatimetomakesureyouarecuttingneatly.3.UseapenciltoneatlyprintHappyBirthday!oneachcut‐out.4.Placeonesetofdecorations(oneeachofhat,gift,balloon,andcake)inasandwichbagandclosethebag.5.Produceasmanysetsasyoucanin20minutes.REMEMBER:QUALITYISMOREIMPORTANTTHANQUANTITY.

42

Handout 4.2 - Patterns

43

Handout 4.2 - Patterns

44

Handout4.3–ClassifyingResources

Name_____________________________

WritealltheresourceslistedintheWordBankinthecorrectcategoriesbelow.Business

Human

Capital

Lawncare

Lemonadestand

Dogsitter

Word Bank walking shoes pitcher table long-handled spoon gas can leash person supplying care lemon squeezer person mowing lawn mower salesperson person making lemonade food dishes chair lawn trimmer

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Handout4.4–ClassifyingResourcesName___AnswerKey________ WritealltheresourceslistedintheWordBankinthecorrectcategoriesbelow.Business

Human

Capital

Lawncare

personmowing

lawnmowergascanlawntrimmer

Lemonadestand

personmakinglemonadesalesperson

long‐handledspoonpitcherlemonsqueezertablechair

Dogsitter

personsupplyingcare

walkingshoesfooddishesleash

Word Bank walking shoes pitcher table long-handled spoon gas can leash person supplying care lemon squeezer person mowing lawn mower salesperson person making lemonade food dishes chair lawn trimmer

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Lesson5–EntrepreneursintheCommunityandAdvertising

QuestionsoftheDay:Whatisanentrepreneur?Howarebusinessesinterdependent?LessonComponents

Description

LessonDescription

Thislessonwillhelpstudentsseethatbeinganentrepreneurandstartingabusinessisaviableoptionforearningincomeandthatbusinessesareinterdependent.Theywilllearnhowentrepreneursfamiliarizepeoplewiththeirbusinessesthroughtheuseoflogos,slogans,andadvertising.Byexaminingadvertisements,studentswilllearnhowcompaniesattempttoinfluenceconsumerchoices.

Concepts Entrepreneur Interdependence Logo Slogan Advertising

Objective Studentswillbeableto: Defineanentrepreneurasapersonwhostartsanewbusiness. Giveanexampleofhowbusinessesareinterdependent. Explainhowbusinessesaffectoneanotherandthecommunity. Explainwhybusinessesadvertise.

TimeRequired

60minutes

Materials

Visual5.1aand5.1b(QuestionsoftheDay)–oneeachfortheinstructor

Visuals5.2–5.11(Logos)–cutapart,oneofeachfortheinstructor Handout5.1(Script)–onefortheinstructor Handout5.2(NamingaBusiness)–onecopyperstudent Handout5.3(ItAll“Ads”Up)–onecopypergroupoftwoorthree

students Handout5.4(YoungAssessment)–cutapart,onecopyperstudent WordWallCards–entrepreneur,interdependence,logo,slogan,

advertising Ballofyarn Advertisementscutfromnewspapersandmagazines–oneper

groupProcedure 1. DisplayVisuals5.1aand5.1b(QuestionsoftheDay)totheclass.Read

thequestionsandtellstudentsthatthislessonwillhelpthemanswerthequestions.

2. Explaintothestudentsthatinordertohaveastrongcommunity,

businessesandconsumersmustdependoneachother.

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3. Haveeveryonesitinacircleonthefloor,andexplainthatthiscircle

representsacommunity.4. Handtheballofyarntoanystudent.5. BeginreadingHandout5.1(Script),substitutingthenamesofyour

studentsfortheunderlinednames,inrandomorder(nottheorderinwhichtheyareseated).Read(a),substitutingthenameofthestudentholdingtheballofyarn.

6. Read(b);thestudentwiththeballofyarnholdsontotheendand

rollstheballtothepersonnamedin(b).7. Thepersonnamedin(b)holdsontotheyarnandrollstheballtothe

personnamedin(c).8. Continuereadinguntileveryonehashadaturntotosstheyarn.Add

extralinestothescriptifmoreareneededinorderforeveryonetohaveaturn.Theballofyarnwillendupwiththepersonwhostartedtheweb.

9. Instructstudentstoobservethewebthathasbeencreatedwiththe

yarn.Callonastudenttosummarizewhatthewebshows.(Inasuccessfulcommunity,businessesandconsumersareconnectedandtheydependononeanother.)


a. Howdobusinessesdependononeanother?(Businessesbuysuppliesfromotherbusinesses;employeesspendtheirpaychecksinotherstores;etc.)

b. Whathappenstothecommunityifabusinessfailsorcloses?(Employeeslosejobsandthenwon’tbeabletobuyproductsorservicesfromotherbusinesses.)

11. Explaintothestudentsthatwhenbusinessesandpeopledependon

eachother,itiscalledinterdependence.Displaythe“interdependence”WordWallCard.

12. Explaintothestudentsthatmostpeopleareemployedbyacompany

oranindividual,butsomepeopledecidetheydonotwanttoworkforsomeoneelse.Theydecidethey’dliketobetheirownbossandwillstarttheirownbusiness.Apersonwhostartsanewbusinessiscalledanentrepreneur(pronouncedahntruhprenyour).Displaythe“entrepreneur”WordWallCard.

48

13. Explainthatentrepreneurscangetideasforbusinessesinmanyways.

Theyrecognizeopportunities,suchasseeingaproductthatcouldbemadebetterorinadifferentwayorcomingupwithawholenewproductthatnooneelsehasthoughtof.

14. Askthestudentswhatskillsortalentswouldbeneededinordertobe

asuccessfulentrepreneur.(creativity,patience,organization,problemsolving,competitivespirit,energy,etc.)

15. Askthestudentshowtheyidentifyorknowaboutbusinessesintheir

community.(signs,businessnames,logos,slogans)16. Explaintothestudentsthatabusinessoftenhasaclevernamethat

willgiveacluetotheproductsorservicesthebusinessoffers.17. DistributeHandout5.2(NamingaBusiness).Completethepageasa

classorinpairs.18. Explaintothestudentsthatbusinessescansometimesbeidentified

justbyusingasymbolcalledalogoorbyacatchyphrasecalledaslogan.Displaythe“logo”and“slogan”WordWallCards.

19. DisplayVisuals5.2–5.11(Logos)andhavestudentsidentifythe

companies.(5.2,Disney;5.3,Apple;5.4,Chevrolet;5.5,McDonald’s;5.6,Nike;5.7,Domino’s;5.8,Pepsi;5.9,Microsoft;5.10,Energizer;5.11,Converse)

20. Readthefollowingsloganstotheclass.Askstudentsiftheycan

identifythebusiness. It’sthecheesiest!(KraftMacaroniandCheese) Justdoit!(Nike) Goodmoodfood(Arby’s) It’stherealthing(Coca‐Cola) Thequicker‐picker‐upper(Bountypapertowels) Finger‐lickin’good(KFC–KentuckyFriedChicken) Meltsinyourmouth,notinyourhand(M&Ms)

21. Companiesspendalotofmoneyonadvertisingsothatpeoplewillgettoknowabouttheirproductsandservices.Displaythe“advertising”WordWallCard.Explainthatadvertisingiswhencompaniesuseadvertisementssuchaspublicnotices,displays,orpresentationstopromotethesaleofgoodsorservices. Askstudentswheretheyseeadvertisements.(newspapers,online,television,billboards,flyers,mailings)Explaintothestudentsthatmanyofour

49

wantsareactuallyinfluencedbyadvertising.Asconsumers,people,includingyoungpeople,canbenefitbylearningtocriticallyexamineadvertisements.


a. Cansomeonedescribeacommercialyouhaveseenontelevisionlately?(Answerswillvary.)

b. Didtheadvertisementmakeyouwantthisitem?Whyorwhynot?(Answerswillvary.)

23. Note:Thefollowingactivityisgearedtoolderstudents.Youmight

prefertopartneranolderstudentwithayoungerstudentorcompletetheactivityasawholegroup.

Dividetheclassintogroupsoftwoorthreestudents.GiveeachgrouponeadvertisementandonecopyofHandout5.3(ItAll“Ads”Up).Havegroupscompletethequestionsandsharewiththeclass.

Closure 1. Discussthefollowing:

a. Whatisanentrepreneur?(apersonwhostartsanewbusiness)b. Howarebusinessesinterdependent?(Theydependoneachother

fortheirsupplies;employeesspendincomeatotherbusinesses;etc.)c. Howdobusinessesaffectoneanotherandthecommunity?

(Businessesgivepeoplejobs;peoplearethenabletospendtheirearningsinotherplaces.Whenabusinesscloses,peoplelosejobs.Peoplehavelessmoneytospend,puttingotherbusinessesinjeopardy.)

d. Whyisadvertisingimportantforbusinesses?(Throughadvertising,includingtheuseofcatchyslogansandlogos,peoplebecomefamiliarwithabusiness’sproducts.)

Assessment 1. Olderstudents–HavestudentswriteanswerstotheQuestionsofthe

Day.2. Youngerstudents–DistributeacopyofHandout5.4(Young

Assessment)toeachstudent.Askstudentstocirclethepictureofanentrepreneur.(c–mansellinghotdogs.)

Sources FinancialFitnessforLife:StudentWorkbookGrades3–5,Councilfor

EconomicEducation,2010 FinancialFitnessforLife:TeacherGuideK–2,CouncilforEconomic

Education,2010

50

Visual5.2

Visual5.3

51

Visual5.4

Visual5.5

52

Visual5.6

Visual5.7

53

Visual5.8

Visual5.9

54

Visual5.10

Visual5.11

55

Handout5.1–Script

a. JohnownstheDelightfulDollarStore.b. SidworksforJohn.c. SidgoestoFred’sgrocerystore.d. SallyworksforFredatthegrocerystore.e. SallybuyscarinsurancefromBill.f. BilltakeshiscartoJay’sgarageforrepairs.g. JayhastotakehissontothehospitalwhereMeredithisanx‐raytechnician.

h. MeredithandherfamilygotoJake’sDinerfordinner.i. JakegoestoMatthew’sMeatMarkettobuybeefforhisrestaurant.

j. MatthewgoestoKate’sKitchenEquipmentCompanytobuyanewmeatgrinder.

k. CaroleworksforKate.l. CaroletakesherpaychecktothebankwhereJuanisanemployee.m. JuanloansKate’smoneyto(a)Johnsohecanexpandhisbusiness,theDelightfulDollarStore.

56

Handout5.2–NamingaBusiness

Name________________________________Guesswhatkindsofbusinessesmighthavethesenames.

NameofBusiness TypeofBusiness7thInningStretchSeamsToBeAboutTime!DirtyDogAlphaGraphicsTheLighthouseTheManeEventNowseeifyoucanmakeupclevernamesforthesekindsofbusinesses.1. partysupplies__________________________________________

2. pizzashop_____________________________________________

3. antiques______________________________________________

4. gardencenter__________________________________________

5. resale(used)items______________________________________

57

Handout5.2–NamingaBusinessAnswerKey

Guesswhatkindsofbusinessesmighthavethesenames.

NameofBusiness TypeofBusiness7thInningStretch BaseballshopSeamsToBe Tailor/seamstressAboutTime! Watch/clockrepairDirtyDog Dogwashing/groomingAlphaGraphics PrintingTheLighthouse LampsandlightingTheManeEvent HairsalonNowseeifyoucanmakeupclevernamesforthesekindsofbusinesses.1. partysupplies__________________________________________

2. pizzashop_____________________________________________

3. antiques______________________________________________

4. gardencenter__________________________________________

5. resale(used)items___________________________________

58

Names___________________________Handout5.3–ItAll“Ads”UpDirections:Lookatyourmagazineadvertisementandfillinthefollowinginformation.1. Whatistheproductfeaturedinyouradvertisement?2. Whatagegroupdoyouthinktheadvertisementistargeting(tryingtoreach)?Circleyourchoice.preschoolchildren middleschoolstudents elementaryschoolstudents highschoolstudentsadults

3. Whatinformationintheadmakesyouthinkthisistheagegroupbeingtargeted?

4. Doestheadtargetmales,females,orboth?

5. Circleallofthefollowingsalesmethodsthatyoufindinyourad. Brandnamefamiliarity(logoorslogan) Celebrityendorsement(afamouspersonintheadvertisement)

Authorityendorsement(Expertssuchasdoctorsorteachersrecommendthisproduct.)

Bandwagon(Everyoneisgettingone.) Qualitycomparison(Ourproductisbetterthanothersimilarproducts.)

6. Alladstellsomefactsabouttheproduct.Listthefactsyoucanfindinyourad.

7. Wouldyoubuythisproduct?Whyorwhynot?

59

Names___________________________Handout5.3–ItAll“Ads”UpDirections:Lookatyourmagazineadvertisementandfillinthefollowinginformation.1. Whatistheproductfeaturedinyouradvertisement?2. Whatagegroupdoyouthinktheadvertisementistargeting(tryingtoreach)?Circleyourchoice.preschoolchildren middleschoolstudents elementaryschoolstudents highschoolstudentsadults

3. Whatinformationintheadmakesyouthinkthisistheagegroupbeingtargeted?

4. Doestheadtargetmales,females,orboth?

5. Circleallofthefollowingsalesmethodsthatyoufindinyourad. Brandnamefamiliarity(logoorslogan) Celebrityendorsement(afamouspersonintheadvertisement)

Authorityendorsement(Expertssuchasdoctorsorteachersrecommendthisproduct.)

Bandwagon(Everyoneisgettingone.) Qualitycomparison(Ourproductisbetterthanothersimilarproducts.)

6. Alladstellsomefactsabouttheproduct.Listthefactsyoucanfindinyourad.

7. Wouldyoubuythisproduct?Whyorwhynot?

60

Handout5.4–YoungAssessmentName___________________________Circlethepicturethatshowsanentrepreneur.

Name___________________________Circlethepicturethatshowsanentrepreneur.

Name___________________________Circlethepicturethatshowsanentrepreneur.

61

Lesson6–EntrepreneurshipandProblemSolving

QuestionoftheDay:Whydobusinessesadvertise?LessonComponents

Description

LessonDescription

Advertisingisacrucialfactorinhavingasuccessfulbusiness.Insmallgroups,studentswillcreatenewproductsanddevelopadvertisingcampaignsthatwillbepresentedtotheentireclass.

Concepts Income Expenses Advertising

Objectives Studentswillbeableto: Explainthepurposeofadvertising. Createadvertisementsthatwillincludeelementssuchasclever

naming,slogans,andlogos. Defineincomeasmoneythatcomesfromworkingandother

sources. Defineexpensesasmoneypaidoutforgoodsandservices.

TimeRequired

60minutes

Materials

Visual6.1(QuestionoftheDay)–onefortheinstructor Visual6.2(AdvertisingProject)–onefortheinstructor Handout6.1(Penny’sNewBusiness)–onefortheinstructor Handout6.2(AdvertisingHints)–oneperstudent WordWallCards–income,expenses,advertising Posterpaper–twopiecespergroup Pencils Markers Paper–oneperstudentforyoungerstudentassessment


2. ReadHandout6.1(Penny’sNewBusiness)tothestudents.3. ExplaintothestudentsthatthemoneyPennyearnsiscalledincome.

Displaythe“income”WordWallCard.Tellstudentsthatincomeismoneythatcomesfromworkingandothersources.PointoutthatPennywillneedtobuysomeleashesandpayherfriendwhowillworkforher.Paymentsforgoodsandservicesarecalledexpenses.Displaythe“expenses”WordWallCard.

62

4. Discussthefollowing:a. Pennywantedtobeanentrepreneur.Howdidshewanttoearn

income?(dogwalking)b. Whatexpenseswouldshehavewithherbusiness?(leashes,paying

heremployees)c. Whatresourceswouldsheneedforherbusiness?(human

resources–peopletohelpherwalkthedogs;capitalresources–leashes)

d. HowwasPennygoingtoletpeopleknowaboutherbusiness?(Putasigninthefrontyard;writenotestotheneighbors.)

e. Whatdowecallmakingsignsforyourbusiness?(advertising)Tellstudentsthatadvertisingiswhencompaniesuse advertisementssuchaspublicnotices,displays,orpresentationstopromotethesaleofgoodsorservices.Displaythe“advertising”WordWallCard.

5. Dividestudentsintogroupsofthree.Giveeachgrouppencils,markers,

andonepieceofposterpaper.GiveeachstudentonecopyofHandout6.2(AdvertisingHints).

6. Explaintothestudentsthattheyaregoingtocreateadvertisingfora

businesstheywillcreate.Theadvertisingwillincludeaposterandatelevisioncommercial.Whentheyhavefinished,theywillshowtheirposterandperformtheircommercialinfrontoftheclass.

7. ReadHandout6.2(AdvertisingHints)together.Explaintothestudents

thattheirpostersmusthavealltheelementslistedonthehandout.8. Readthefollowingscenario:

Afamousicecreamcompanyhasaproblem.Ithasbeenlosingsales.Inordertoimprovesales,theownersmustdevelopanexcitingandunusualnewicecreamproductorflavor.They’vehiredyoutocomeupwithacreativeideaforanewproduct.Yourtaskistocreateanewicecreamproductorflavor.

9. DisplayVisual6.2(AdvertisingProject).Reviewthestepsthateachgroupmustcomplete: Createanewicecreamproductorflavor. Comeupwithacatchynameforyourproductorflavor. Decidewhatisunusualaboutyourproduct(uniquesellingpoints). Designanadvertisingposterthathasthenameofthenewproduct,

theprice,andwhereitisavailable. Createapeppytelevisionadvertisementthatwillincludeaslogan

andtellwhyaconsumershouldbuytheproduct.

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10. Usingtheposterasaprop(hangituporplaceitonaneasel),eachgroupwillactoutitstelevisionadinfrontofthewholegroup.Aftereachgroup’spresentation,havestudentsgivefeedbackbydiscussingtheproductandtheeffectivenessoftheadvertising.Thenhavestudentsvoteonwhetherornottheywouldpurchaseit.

11. Askstudentswhyitwasimportantforeachgrouptocreate

advertisementsfortheirproduct.(toletconsumersknowwhatisforsale,convincepeopletobuytheirproducts,tellwhytheirproductsarebetterthanthoseoftheircompetitors)


a. Whatisincome?(moneythatcomesfromworkingandothersources)

b. Whatareexpenses?(paymentsforgoodsandservices)c. Whydoentrepreneursadvertisetheirbusiness?(toletconsumers

knowwhatisforsaleandwhytheirproductisbetterthanothers,toconvinceconsumerstobuytheirproducts)

Assessment 1. Olderstudents–HavestudentswriteananswertotheQuestionofthe

Day.2. Youngerstudents–Readthefollowingtostudents:

A3rdgradeclasshasdecidedtomakecupcakesandsellthemtoraisemoneytobuybooksforthelibrary.Howcantheyletthestudentsintheirschoolknowabouttheircupcakesale?Distributeapieceofpapertoeachstudent.Askstudentstodrawapicturetoshowwhattheclassmightdotoletconsumersknowabouttheircupcakesale.(Answerswillvary.)

Source FinancialFitnessforLife:StudentStorybookK–2,Councilfor

EconomicEducation,2010MarketDayPreparation

1. CollectHandout6.2(AdvertisingHints)andsaveforuseinLesson11.

64

Visual6.1

65

Visual6.2–AdvertisingProject

1. Createanewicecreamproductor

flavor.2. Comeupwithacatchynameforyour

productorflavor.3. Decidewhatisunusualaboutyour

product(uniquesellingpoints).4. Designanadvertisingposterthathas

thenameofthenewproduct,theprice,andwhereitisavailable.

5. Createapeppytelevision

advertisementthatwillincludeasloganandtellwhyaconsumershouldbuytheproduct.

66


67

P enny was sitting on her porch counting the money she had earned for

walking Mr. Lopez's dog, Mullido. She was so proud of herself. Then

she heard a bark and looked up to see Mr. Lopez and Mullido walking

down the sidewalk toward her.

Mr. Lopez called out to Penny. “Do you want to join us? It’s such a beautiful day.

We've decided to go for a walk.”

Penny carefully put her money into the pockets of her new jeans as she walked

toward Mr. Lopez. She said, “You know, Mr. Lopez, I was just counting the money

I earned. It’s the money you called my income because I earned it by working.

I really like earning income. I sure wish I could earn some more. Do you need me

to walk Mullido for you again?”

Story 2

Penny’s New Business


68


69

Mr. Lopez laughed. “No, Penny,” he said. “I want to walk Mullido myself

because I need to exercise my sore ankle. But you provided me with a valuable

service by walking Mullido after I hurt my ankle. I was glad to pay you for that

service.”

“What do you mean by a service?” Penny asked.

“Well, Penny, that’s when you do things for people—things that they want,”

said Mr. Lopez.

“Do you think other people in the neighborhood might want me to walk their

dogs? That’s a service I like to do! Is anyone sick or hurt? I’m a good dog walker,”

Penny said. “I'd like to do that for lots of people and earn more income.”

Mr. Lopez agreed with Penny. “You sure are a good dog walker,” he said.

Mullido barked in agreement. “Why, Miss Penny, I believe you’re thinking just like

an entrepreneur!” exclaimed Mr. Lopez.

“ON-TRAY-PRAY-NOOR? What’s that?” asked Penny.


70


71

Mr. Lopez smiled. He pronounced the word again, slowly, and he explained.

“Penny, an entrepreneur is a person who starts a business and sells goods and

services to other people. You would be an entrepreneur if you started a

dog-walking business.”

“WOW! I like that idea! I'll be an entrepreneur,” Penny said, “and call my

business Penny's Dog-Walking Service. I'm going to be an entrepreneur, and I'll

really make lots and lots of money!”

“Now, hold on a minute,” said Mr. Lopez. “Being an entrepreneur is hard work.”

“I don't care. Working hard would be fun, if it’s walking dogs. I like dogs!

Especially you, Mullido,” Penny said, patting Mullido on the head. “And I like

money, too!” she added.

“And Mullido likes you. You do seem to have a way with animals. That would be

a good skill to have in the dog-walking business,” said Mr. Lopez.

As Penny walked along with Mr. Lopez, thinking about this new idea, she

began to get more and more excited. “I could put a sign in the front yard so people

would know about my dog-walking service. And I could write little notes to all the

neighbors to tell them about my business,” she said.

Penny began to talk faster and faster as she thought of more ideas for her new

business. “I could buy lots of leashes, so that I could walk several dogs at one time.

I might even go to some classes and learn how to bathe dogs and train them. And

I might start taking care of cats, too, and...and...and.... Boy! I’ll earn lots of money!

If the weather is good, I could walk tons of dogs. I might even have so many

customers that I’d have to get Nicholas and Brian to work for me, so I can earn

more money. I’ll have lots of income! I’ll be rich!” Penny jumped around in

excitement.


72

Mr. Lopez interrupted her, “Yes, Penny you are going to need all of those

productive resources to become an entrepreneur.”

“What do you mean by productive resources, Mr. Lopez?” Penny asked.

“Productive resources are the natural resources, human resources, and capital

resources you will use to provide your dog-walking service,” Mr. Lopez explained.

He continued: “Many of the things you named will be your productive resources.

Brian and Nicholas would be human resources—providing some of the human effort

needed for walking dogs. The leashes would be capital resources—that is, a good

you would use as you provide dog-walking services. You would also use natural

resources such as grass and fresh air as you walk the dogs. These three kinds of

resources are used by entrepreneurs to produce goods and provide services.”

“I guess I have a lot to think about before I can become an entrepreneur, but

I want to get started real soon and earn lots of money!” Penny exclaimed.

“Wait a minute!” Mr. Lopez interrupted. “You are thinking too fast for me.

I guess a young entrepreneur like you gets pretty excited when she thinks about a

new business. But maybe you’d better talk this over with your parents before you

go too far with the idea.”

“That’s a great idea,” Penny said. She waved goodbye to Mr. Lopez and Mullido

as she scampered back down the street toward home. Many thoughts about

becoming an entrepreneur were swirling around in her head.


73


74

Handout6.2–AdvertisingHints

Onposters,yourletteringmustbe: BIG

Colorful

Clear

Yourpostermusthave: Nameofyourproduct Nameofyourbusiness Uniquesellingpoint Priceofyouritem(s) Additionaldescriptions(adjectives)

Trysomeoftheseideas: Usecreativelettering,suchas ,underlining,orsshhaaddoowwss

Makelettersfromthematerialsyouareusingforyourproduct(beads,sequins,feathers,sand)

WearyouradvertisingonahatorT‐shirt

75

Lesson7–EntrepreneurshipandMarketDay

QuestionoftheDay:HowcanImakeaprofit?LessonComponents

Description

LessonDescription

StudentswillbegintoplanforMarketDaybydiscussingpotentialbusinessesandlearningthatthegoalistomakeaprofit.Eachstudentwillmakeasimpleflagusingavailablematerials.Uponcompletingtheflag,eachstudentwillfigureoutthecostofmakingtheflagbaseduponamaterialspricelist,andthenfigurewhatthesellingpricewouldhavetobeinordertomakeaprofit.

Concepts Profit Loss Revenue Expenses

Objective Studentswillbeableto: Explainthedifferencebetweenprofitandloss. Explainwhyasellingpricemustbegreaterthanthecostofmaking

aproduct.TimeRequired

60minutes(plusadditionalpreptime)

Materials

Visual7.1(QuestionoftheDay)–onefortheinstructor Handout7.1(SuggestionsforStudentBusinesses)–onecopyper

student,tobesenthome Handout7.2(PricingProducts)–onecopyperstudent Handout7.3(ParentLetter)–onecopyperstudent,tobesent

home Handout7.4(MarketDayTimeline)–onecopyperstudent,tobe

senthome WordWallCards–profit,loss,revenue,expenses Suppliesforactivity:

9”×12”constructionpaper–atleastoneperstudent Drinkingstraws–atleastoneperstudent Stickers–severalperstudent Markers–varietyofcolors Staplers Transparenttape Scissors


2. Reviewbyaskingthestudentstoexplainwhatanentrepreneuris.(a

personwhostartsanewbusiness)


76

3. Askthestudentswhatchangesinlifestylewouldhaveinspiredan

entrepreneurtoinventthefollowingproducts: Fastfood(busyschedules) Childcarecenters(workingparents) Exercisebikes(gettingexercisewhenpeoplecan’tbeoutside) Nursinghomes(peoplelivinglonger) Microwaveovens(nothavingtimetocookandpreparemeals)

4. Explaintothestudentsthattheyaregoingtohaveanopportunitytobeentrepreneurs.Overthenextmonth,theywillworkathomeonproducingproductsandcreatingadvertising.On(dateofLesson11)thegroupwillhaveaMarketDaywhenthestudentswillbringtheirproductstosell.Amarketplacewillbesetup;invitedguestsandstudentswillbeabletocometoshopusingECONObucks.

5. Askthestudentswhatthegoalisofanyonewhoownsabusiness.(to

makeaprofit)6. Explaintothestudentsthatthegoalofbusinessownersistomakea

profit.Profitiswhenthemoneyabusinesstakesinfromsellingitsproductsisgreaterthanitsexpenses.Themoneyabusinessreceivesfromsellingitsproductsiscalledrevenue.Displaythe“profit”and“revenue”WordWallCards.Businessownershavemanyexpenses.Reviewthatanexpenseismoneypaidoutforgoodsandservices.Displaythe“expenses”WordWallCard.

7. Askstudentswhataresomeexpensesabusinessmighthave.(rent,

utilities,employees,supplies,andmachinery)8. Explainthatwhenyourbusinesstakesinmoremoneythanitpays

out,thedifferenceiscalledaprofit.Ifrevenueislessthanexpenses,thebusinesshasaloss.Displaythe“loss”WordWallCard.Ifabusinessdoesnotmakeaprofit,itwilleventuallyhavetoclose.

9. ExplainthatwhenthinkingaboutwhatbusinesstoopenonMarket

Day,studentsmustthinkaboutwhattheircustomerswillwanttobuy.

10. Discussthefollowing:a. Doyouthinkasurfingshopwouldbeagoodbusinessin

Minnesota?(no)Whynot?(notneartheocean)b. Doyouthinkawintersportsshop(skis,snowshoes,parkas,etc.)

wouldbeagoodbusinessinFlorida?(no)Whynot?(climatetoowarm,nosnow)

c. WhatwouldbeagoodbusinesstohaveinFlorida?(bathingsuit

77

shop,surfingshop,coldbeverages,etc.)

11. Discusswhatproductsstudentsmightbeabletomakefortheirbusinesses.Havestudentssuggestpossibleproductstheycouldmake,andwritethelistontheboard.ThendistributeHandout7.1(SuggestionsforStudentBusinesses)toeachstudent.Readthroughthelisttogether.Ifstudentsgivesuggestionsthatdonotappearonthelist,havethemaddthosetotheircopiesofHandout7.1.

12. Explainthatinchoosingaproducttomake,eachstudentshould

matchhisorherinterestsandabilitiestothechosenbusiness.Ifastudentlikestocook,perhapsheorshewouldliketomakecookiesorbrownies.Ifgardeningisaninterest,decoratingsmallflowerpotsorStyrofoamcupsmightbeagoodchoice,fillingthemwithpottingsoil,thenplantingshootsfromaspiderplant(orsomeotherhouseplant)orseedlingssuchasmarigolds.

13. DistributeHandout7.3(ParentLetter)andHandout7.4(MarketDay

Timeline)toeachstudent.TellstudentstotakethemhomealongwithHandout7.1.Theyneedtodiscusswiththeirparentsorwiththeinstructorwhatwouldbeagoodbusiness.Whenstudentshavedecidedonabusiness,theymusttelltheinstructor.Note:Ifsomeoneelsehasalreadychosenthesameproduct,youmightwanttoencouragethestudenttochooseadifferentproductinordertolessendirectcompetition,ordiscusshowtomakeitdifferentfromthecompetition.Inreallife,someonewhowantedtohaveabakerywouldnotchoosetoopenitnextdoortoanexistingbakery.

14. Explaintothestudentsthatapersonmusthavemoneytostarta

business.Askthestudentswhymoneyisneeded.(Youmightneedtopurchasematerialsandingredients,payemployees,rentspace.)ExplainthatsincethestudentshaveallbeenearningECONObucks,theyhaveenoughmoneytogettheirbusinessesstarted.

15. Explainthatstudentswillhaveseveralbusinessexpenses.Theymust

paytheirparents(ortheinstructor)withECONObucksforthesuppliesneededtomaketheirproducts.(SeetheMarketDayPreparationsectionattheendofthislessonforadditionalinformation.)Ifanyonehelpswithmakingtheproducts(parents,brother,sister,grandparents,friends),those“employees”mustbepaidfortheirtime.

16. Spreadsupplies(constructionpaper,straws,stickers,markers,

staplers,scissors,andtape)onacentraltable.DistributeHandout7.2(PricingProducts)toeachstudent.Explainthatthestudentswilleach

78

createaflaghowevertheylike.Eachitemfromthesupplytablehasaprice;thepricingchartisHandout7.2.Allowstudentstogotothesupplytableandselectmaterialstobeginmakingtheirflags.Studentsmayreturntothetableasneeded.Allowaspecificamountoftimeformakingtheflags.

17. Whenthetimeisup,askthestudentstostop.HavethemfillintheMy

SuppliessectionofHandout7.2,recordingthecostforeachitemusedandthenaddingupallthecoststogetatotalcost.

18. HavestudentsanswerthequestionsatthebottomofHandout7.2.

(Answerswillbedifferentdependingonindividualcosts.)Askstudentshowtheyarrivedatasellingprice.(Theymustchargemorethanthecostofmakingtheproduct;itemsthatrequiremoreexpensivematerialswillrequireahighersellingprice.)

Closure 1. Readthefollowingprompt:

OnahotSaturdaymorning,Janedecidestoopenalemonadestandandselllemonade.Shepays$3forapoundofsugar,$4forlemons,and$2forcups.Jane’scustomerslikeherlemonade.Discussthefollowing:a. WhatisthemoneycalledthatJanebringsinfromselling

lemonade?(revenue)b. WhatareJane’sexpenses?($3forsugar,$4forlemons,and$2for

cups)c. Whatarehertotalexpenses?($9)d. Janemade$12inrevenuefromsellinglemonade.Didshemakea

profitoraloss?(profit)Howmuchprofit?($3)


2. Youngerstudents–Distributeasmallpieceofpapertoeachstudent.

Readthefollowingtothegroup:AnentrepreneurismakingnecklacesforMarketDay.Afterpayingforsuppliesandbusinessexpenses,eachnecklacecost23¢tomake.Atwhatpriceshouldshesellhernecklacesinordertomakeaprofit?Havethestudentseachwritetheirnameandananswertothequestiononthepaper.

Source Focus:Grades3–5Economics,NationalCouncilforEconomicEducation,2005

79

MarketDayPreparation

1. EachstudentmusttakehometogivetoparentsacopyofHandout7.1(SuggestionsforStudentBusinesses),Handout7.3(ParentLetter),andHandout7.4(MarketDayTimeline).TheParentLetterisasample;youwillneedtocustomizeitforyourgroup.InserttheMarketDaydateintheletterandintheMarketDayTimeline.

2. Keepalist(andpossiblyachart)ofbusinessesstudentshaveselected.3. Dependingonthecircumstancesofyourstudents,youmightneedto

purchasebusinesssuppliesforstudentsusingmoneysuppliedbyaScoutcouncil,PTA,etc.Theeasiestwayofchargingthestudentsistodividethebusinesssuppliesintothreecategories–least,middle,most–thensetanamountforeachcategory(withconsiderationforthenumberofECONObucksstudentshaveearnedduringthecourseofthisunit).Suggestedamountsmightbe:suppliesthatcosttheleast,5–10ECONObucks;amoderateamount,10–20ECONObucks;most,20–30ECONObucks.

4. Youwillwanttosendinvitationstoparents,staff,administrators,and

othervisitorstocomeandshoponMarketDay.5. Constantlyencouragethestudentstoworkontheirproducts.If

studentshavechosensomethinglikeplantingseeds,theywillneedtogetstartedrightaway.Ifthebusinessistomakefooditems,theywillwanttowaituntilclosertoMarketDaytomaketheirproducts.Remindstudentstheywillneedtomakeplentyofproductstosell.

80

Visual7.1

81

Handout7.1–BusinessSuggestions

SuggestionsforStudentBusinesses

food/beverageitems woodworking dreamcatchers keychains petrocks canvasbags bookmarks puzzles jewelry plantsorflowers decoratedflowerpots fancypencilsorpens banks(madefromjars,milkcartons,plasticjuicecontainers)

cards(greetingornotecards)

vases seashellitems seasonalitems buttons/badges visors sandpaintings pictureframes clayordoughitems magnets

Ifinthefutureyouwanttostartabusinessthatisaservice,youmightwanttoconsider:

garagesale bikerepair cleaning lawnmowing leaf/snowremoval tutoring carwashing babysitting plantwatering petsitting technology refereeingsports

gardening(weeding,

planting,harvesting)

82

Handout7.2–PricingProducts

Name_______________________

Supplies Price

Constructionpaper 10¢ per¼sheetStraws 5¢ eachStickers 3¢ eachMarkers 2¢ permarkerStaples 1¢ eachTape 2¢ perpieceScissors 10¢ torent

MySupplies HowMany Cost

TOTAL

1. Howmuchdiditcosttomakeyourflag?________________________2. Inordertomakeaprofit,whatshouldbeyoursellingpricefor

eachflag?_____________________________________

83

Handout–7.3ParentLetterDearParents,Wehavebeenworkingonaseriesoflessonsallaboutmoney–earning,spending,andsaving.Thegoalistoteachouryoungstersaboutthewiseuseofmoneyandhowoureconomyworks.Thestudentshavelearnedthatbeinganentrepreneur(owningone’sownbusiness)isacareeroption.Eachstudentisgoingtobecomeanentrepreneurforthisnextmonth,selectingaproduct,producingenoughitemstosell,creatingadvertising,andthenactuallyopeningforbusinessonMarketDay.Theitemsmaynotbestore‐boughtproductssuchascandy,cookies,orpencils.Theymaybehomemadefooditemsoracraftofsometype.Wehavediscussedbusinesses,andsomeofthestudentshaveideasaboutwhattheywouldliketomake.Yourpartinthisprojectwillbetohelpyourchilddecideonabusiness,helptogetthenecessarysuppliestomaketheproduct,andgiveencouragement.(Contactusifyouneedhelpwithsupplies.)YourchildwillpayyouinECONObucks(ourgroup9’smoney)forallmaterialsoringredientsandforyourtimeasanemployee.Forinstance,youmightchargetwoECONObucksanhourforhelping.PLEASEREMEMBERTHATTHESTUDENTMUSTMAKETHEPRODUCTS,BUTYOUMAYHELP.Afteryougetpaid,youwillhavewhatwouldseemtobeuselessECONObucks,butholdontothem!YoucanspendthemwhenyoucometoshoponMarketDay.TheweekafterMarketDaywewillhaveasalewherestudentswillbeabletospendtheirprofitsoranyECONObuckstheyhavesaved.PLEASESAVETHEDATE!MarketDaywillbeon______________________ andyouareallencouragedtocomeandbeourcustomers.Thankyouforyoursupport.

84

Handout7.4–MarketDayTimelineName_______________________ Insertdateswhenyouwillhavecompletedeachtaskbelow.Date Task

Discusswithyourparentswhatyoumightwanttoproduceforyourbusiness.

Letyourinstructorknowwhatyou’dliketoproduce.Ifsomeoneelsehasalreadychosenthat,youmightwanttochoosesomethingdifferenttoreducedirectcompetition.

Workonmakingproducts.

Createanadvertisingposter.

Keeptrackofallyourexpensesonanaccountsheet(likeHandout7.2.)

Planyourdisplay.(Thiswillbediscussedinthenextcoupleofweeks.)

Rememberthatanyfooditemsmustbewrappedorbagged.

CollecteverythingthatyouwillneedforMarketDay:products,moneybox,plasticgrocerybags,anddisplayitems.

Remember:ThedateforMarketDayis___________________________

85

Lesson8–Budgeting

QuestionoftheDay:Whatisabudget?LessonComponents

Description

LessonDescription

Studentswilllearnwhatabudgetisandhowtocreateone.Then,studentswilllearnhowtobalanceabudgetbyearningextraincomeorreducingexpenses.

Concepts Budget BalancedBudget Income Expenses

Objectives Studentswillbeableto: Constructabudgetandunderstandthedifferencebetweenincome

andexpenses. Explainwhatabalancedbudgetisandhowtoachieveone.

TimeRequired

60minutes

Materials

Visual8.1(QuestionoftheDay)–onecopyforinstructor Visual8.2(AmusementPark)–onecopyforinstructororpaper

copiesforstudents Envelopeforeachstudentcontainingthefollowing: Handout8.1(BudgetCards)–cutapart Handout8.2(DollarBills)–cutapart,sixdollarsperastudent Handout8.3(Quarters)–cutapart,eightquarterspera

student Handout8.4(Budgeting)–onecopyperstudent

WordWallCards–budget,balancedbudget,income,expenses Whiteboardorchalkboard Blankpaper–onesheetperstudent Pencils–oneperstudent


2. Write“Budget”ontheboard.Underneathit,write“Income”ontheleft

and“Expenses”ontheright.Explaintostudentsthatabudgetisaspendingandsavingsplanthatliststheincomeandexpensesthatapersonhas.Displaythe“budget,”“income,”and“expenses”WordWallCards.


a. Whatisincome?(moneythatcomesfromworkingandothersources)

b. Whataresomewaysyoucanearnincome?(allowance,giftsfrom


86

adults,lemonadestand,etc.)Recordtheiranswersunder“Income.”c. Whatareexpenses?(moneythatgetsspentongoodsandservices)d. Howdoyouspendyourmoney?(Buythingssuchastoysand

candy;donatetodifferentcharities;saveit.)Recordtheiranswersunder“Expenses.”

4. Tellstudentstheyaregoingtoworkonmakingaweeklybudget.Abudgetmeanskeepingtrackofallyourincomeandexpenses.Thegoalistohaveabalancedbudget,whichmeansthatyourincomeequalsyourexpenses.Displaythe“balancedbudget”WordWallCard.

5. Handoutanenvelopetoeachstudent.(Seematerialsforspecial

instructions.)6. Tellthestudentstospreadthecontentsoftheenvelopesontheir

desks.Tellthemthe“MoneyIn”cardsshowhowtheycangetmoney(income)andthe“MoneyOut”cardsshowmoneyleavingtheirhands(expenses).

7. Tellthemtoputtheir“MoneyIn”cardsfaceupontheleftsideoftheir

desks.8. Tellthemtoputtheir“MoneyOut”cardsfaceupontherightside.

Checktoseeiftheyhavegroupedthecardscorrectly.9. Tellthestudentstolookatthemoneytheyhaveintheirenvelopes.

Discussthefollowing:a. Whatisthevalueofaquarter?(25cents)b. Howmanyquartersareinadollar?(four)c. Howmuchmoneydoyouhavealltogether?(eightdollars)

10. Discussthesourcesoftheirincome(“MoneyIn”cards).Tellthemto

place$1.00ontheir“IncomefromhelpingGrandmabydoingyardworkcard,$1.00on“Incomefromwalkingthedog,”and$2.00for“Incomefromallowance”cards.Tellthemnottoputanymoneyonthe“Extraallowanceneeded”card,becausetheydon’tyetknowhowmuchtheywillneed.

11. Afterthestudentshaveplacedtheirmoneyontheappropriatecards,

havethemremovetheirmoneyfromthepicturesandholditintheirhands.

12. Havethestudentslookattheirexpenses(“MoneyOut”cards).Tell

themtoplace$3.00on“SpendingmoneyonPockets,”theirpet,25¢on“GivingMoneytotheChildren’sHospital,”75¢on“Savingmoneyforgifts,”and$1.00on“Spendingmoneyforfun.”

87

13. Havethestudentstakethemoneyoutoftheirhandsandplacethe

appropriateamountsoneachcorrespondingcard.Theexpenseseachweektotal$5.00,buttheirincomeisonly$4.00eachweek.Discussthefollowing:a. Isyourbudgetbalanced?(no)b. Whynot?(Theirexpensestotalmorethantheirincome.)c. Howcouldyoubalanceyourbudget?(Theywilleitherneedtoearn

anadditionaldollarorreducetheirexpenses.)Explainthatabalancedbudgetmeansbothsidesadduptothesameamountofmoney.Theycouldbalancethebudgetbyearninganadditionaldollarofallowanceorbycuttingtheirexpensesbyadollar.

14. Asksomestudentstosharewiththeclasshowtheywouldchoosetobalancetheirbudgets.Pointoutthatiftheadjustmentstheymadeshowedmoreincomethanexpenses,theremainingincomewouldbesavings.

Note:SavethequartersforuseintheAssessmentsectionforyoungerstudents.

Closure 1. Discussthefollowing:a. Whatisabudget?(aspendingandsavingplanthatshowsyour

incomeandexpenses)b. Whatisabalancedbudget?(Bothsidesofthebudget,incomeand

expenses,equaleachother.)c. Ifabudgetisnotbalanced,howcantheproblembesolved?(Either

reduceexpensesorincreaseincome.)2. DisplayVisual8.2(AmusementPark).3. Distributeablankpieceofpaperandapenciltoeachstudent.4. Havethestudentscreatetwocolumns–onelabeledincomeandone

labeledexpenses.Underincome,thestudentsshouldrecord$40.Underexpenses,havethestudentslisthowtheywouldspendtheirmoneyattheamusementpark.

5. Havethestudentssharetheirbudgetswithotherswhentheyare

finished.

Assessment 1. Olderstudents–HavethestudentswriteananswertotheQuestionoftheDay.

88

2. Youngerstudents–Giveeachstudenteightquarters(theirallowance)andacopyofHandout8.4(Budgeting).Havestudentsallocatetheirmoneytothevariousexpenses.Makesuretheycreateabalancedbudget.

Source FinancialFitnessforLife:TeacherGuideK–2,CouncilforEconomicEducation,2010

89

Visual8.1

90

Visual8.2–AmusementPark

Luckyyou!Youwillbegoingtoanamusementparkwithsomefriendsfortheday.Yourmomgaveyou$40.00tospendonfoodandentertainment,soyouwillhavetobudgetcarefullytomakesureyoucandoallthethings

youwouldliketodo!

Item Price Item PriceVideoArcade $5 Frozen

Lemonade$2

CottonCandy

$4 RollerCoaster $4

SpeedyGo‐Carts

$5 HotDog&Drink $4

Twister

$5 Free‐FallTower $5

FunHouse

$4 DunkTank $5

BumperBoats $6 BasketballDunk

$4

Souvenir

$5 IceCreamCone $3

ChiliCheeseFries

$5 FerrisWheel $6

91

Handout8.1–BudgetCards

92

Handout8.2–DollarBills

93

Handout8.3–Quarters

94

Handout8.4–Budgeting

CottonCandy(3quarters)

ColoredPencils(4quarters)

ToyCar(6quarters)

Lemonade(2quarters)

95

Lesson9–SavingYourMoney

QuestionoftheDay:Whyisitimportanttosave?LessonComponents

Description

LessonDescription

Studentswillexplorehowtodepositandwithdrawmoneyinasavingsaccount.Manychildrenhaveapiggybankontheirdresserthatcollectsalltheircoins.Inthislesson,studentswillplayagamethatexplainshowabankislikeapiggybank–itacceptsdeposits,andyoucanwithdrawmoneyfromit.Studentswillbeintroducedtowhyitisimportanttosavetheirmoney.

Concepts Saving Deposit Withdrawal SavingsAccount SavingsGoal

Objectives Studentswillbeableto: Differentiatebetweendepositsandwithdrawals. Explaintheimportanceofsaving.

TimeRequired

60minutes

Materials Visual9.1(QuestionoftheDay)–onecopyforinstructor WordWallCards–saving,deposit,withdrawal,savingsaccount,

savingsgoal Whiteboardorchalkboard Blankpaper–onesheetperstudent Coloredpencils,crayons,ormarkers PlasticzipBag,onepergroup,containingthefollowing: Handout9.1(BankingCards)–cutapart Handout9.2(PiggyBank)–onecopypergroup Handout9.3(SavingsRegister)–onecopypergroup Onedie 50pennies(orECONObucks) Calculator(optional)


2. Askstudentsiftheysavemoney.Tellthemthatsavingmeansnot

spendingmoneynow,butinsteadkeepingmoneytobuysomethinginthefuture.Displaythe“saving”WordWallCard.

3. Askthestudentswheretheysavetheirmoney.Askiftheysavetheir

moneyinapiggybankathome.Explainthatwhentheyputmoney


96

intotheirbank,theyaremakingadeposit.4. Displaythe“deposit”WordWallCard.Tellstudentsthatwhenthey

depositmoneyintotheirbanks,theyaresaving.5. Askstudentsiftheyevertakemoneyoutoftheirpiggybanks.Ask

why.(Answerswillvary.)Explaintothemthatwhentheytakemoneyout,theyaremakingawithdrawal.Displaythe“withdrawal”WordWallCard.

6. Tellthestudentstheyaregoingtoplayafungameaboutdepositsand

withdrawals.Dividetheclassintogroupswithnomorethanfourstudentsineachgroup.

7. Giveeachgroupaplasticzipbagfullofthematerials.(Seematerials

section.)8. Havethestudentsremoveallthecontentsfromtheplasticzipbag

exceptthepennies.Tellthemtoshufflethedepositandwithdrawalcardsandstackthemfacedowninthemiddleofthegroup.

9. Tellthestudentsthatyouhavegiveneachgroupapiggybanktostart

asavingsaccount.Explainthatasavingsaccountisanaccountatthebankwherepeoplecankeepthemoneytheyhavesaved.Displaythe“savingsaccount”WordWallCard.

10. Tellstudentsthateachgrouphas10penniesintheirsavingsaccount.

Havethestudentsplace10penniesonthepig.11. Demonstratehowthegameisplayed.Eachplayer:

Takesaturnrollingthedieandcallingoutthetotalrolled. Drawsacardfromthepileandturnsthecardovertofindout

whethertodepositorwithdrawtheamountshownonthedie. RecordsthisinformationonacopyofHandout9.3(Savings

Register). Withdrawspenniesfromthepiggybankordepositsmoney

intothebankusingpenniesfromthebag.Aseachstudentaddsorsubtractspenniesfromthepiggybank,thestudentwillgiveareason,suchas:“Irolledafour,andthecardsaysdeposit.ThisissomemoneyIearnedforcleaningmyroom.”

Placesthecardatthebottomofthedrawpileandpassesthesavingsregistertothenextpersontotakeaturn.

Note:Ifthefirstfewturnsareallwithdrawals,explaintothegroupthattheymustrecordanegativebalanceontheirSavingsRegister.

97

Therearefourwithdrawalslipsandeightdepositslipspergroup.Ifstudentshavenotbeenintroducedtonegativenumbers,arrangeeachgroup’sdeckofwithdrawalanddepositcardssogroupsbeginwithtwoorthreedepositcards.

12. Remindstudentsthattheyneedtoworktogethertoplaythegameandtheteamwiththemostmoneyattheendofthegamewins.ContinueplayuntileachgrouphasfilledouttheirentireSavingsRegister.

13. HavethestudentslookovertheirSavingsRegister.Checktomake

surethestudentsaddedandsubtractedcorrectly.RewardwithECONObucksiftheydiditcorrectly.RewardthegroupthathadthehighestamountsavedwithECONObucks.

14. Tellthestudentstheyjustlearnedhowmakingdepositsand

withdrawalsinasavingsaccountworksatabank.Explaintothemthatinthisgamethehighestamountsavedwasdeterminedbyluck.Inreallife,goodsaversarepeoplewhoplantosaveandworkhardatit.Askthestudentstoshareanystoriestheyhaveofsavingmoneyandwhattheyaresavingfor.

15. Asaclass,discusswhypeoplesavetheirmoney.(tobuysomethingin

thefuture,tohavemoneyforanemergency)Askthestudentswhattheywouldliketosavetheirmoneyfor.(Answerswillvary.)

16. Passoutablankpieceofpapertoeachstudent.Instructthemtodraw

apictureofsomethingtheywouldliketosavefor.Oncethedrawingsarecomplete,congratulatethemonhavingasavingsgoal.Tellstudentsthatasavingsgoalisanygoodorservicethatyouaresavingmoneyfor.Displaythe“savingsgoal”WordWallCard.

17. Encouragestudentstotaketheirsavingsgoalhomeandhangit

somewherewheretheycanberemindedofwhytheywanttosavetheirmoney.


a. Whatisthedifferencebetweendepositingmoneyandwithdrawingmoney?(Youputmoneyintoyouraccountwhenyoudeposit;youtakemoneyoutofyouraccountwhenyouwithdraw.)

b. Whyisitagoodideatohavemoneyinyoursavingsaccount?(tosavetobuysomethinginthefuture,tohavemoneyforemergencies)

c. Whatisasavingsgoal?(somethingyouwouldliketopurchaseandaresavingmoneytodoso)


98

2. Youngerstudents–Askstudentsdrawapictureofasavingsgoalthey

have.Havestudentssharetheirsavingsgoalandgivethestepstheywilltaketoachieveit.

Source FinancialFitnessforLife:TeacherGuideK–2,CouncilforEconomicEducation,2010

99

Visual9.1

100

Handout9.1–BankingCards

101

Handout9.2–PiggyBank

102

Handout9.3–SavingsRegister

Roll Student’sName

Deposit(+)

Withdrawal(–)

Balance

103

Lesson10–Government‐ProvidedGoodsandServices

QuestionoftheDay:Whataregovernment‐providedgoodsandservicesandhowaretheypaidfor?

LessonComponents

Description

LessonDescription

Studentswilldifferentiatebetweenprivateandgovernment‐providedgoodsandservicesbycreatingacommunity.Studentswilllearnwhopaysforcertaingoodsandservicesinacommunity.

Concepts

Taxes Government‐ProvidedGoodsandServices PrivateGoodsandServices

Objectives

Studentswillbeableto: Explainthedifferencebetweenprivatelyownedandgovernment‐

providedgoodsandservices. Definegovernment‐providedasthosegoodsandservicesthatare

paidforwithmoneycollectedfromtaxesandareprovidedbythegovernment.

Identifyatleastfivegovernment‐providedgoodsorservices. Explainwhypeoplepaytaxes.

TimeRequired

60minutes

Materials

Visual10.1(QuestionoftheDay)–onecopyforinstructor Handout10.1(CommunityCards)–onecopy,cutapartand(except

trafficlightsandstreetlamps)placedinacontainer Handout10.2(YoungAssessment)–onecopyperyoungstudent WordWallCards–taxes,government‐providedgoodsand

services,privategoodsandservices Drawingorconstructionpaper–onesheetperstudent Markersorcrayons Narrowstripsofyellowconstructionpaper(sidewalks) Widestripsofblackconstructionpaper(roads) Toycarorapictureofacar

Procedure

1. DisplayVisual10.1(QuestionoftheDay)totheclass.Readthequestionandtellstudentsthatthislessonwillhelpthemanswerthequestion.

2. Displaythe“taxes”WordWallCard.Definetaxesasrequiredpaymentsindividualsandbusinessesmaketothegovernment.Askwhatkindsoftaxestheyhaveheardof.(salestax,propertytax,incometax)

3. Askwhytheythinkpeoplepaytaxes.Explainthattaxesbenefitthecommunitybyprovidinggoodsandservicestothepeople.A

104

communityisanareainwhichpeoplework,playandshop.4. Distributeapieceofpaperandmarkersorcrayonstoeachstudent.5. Haveeachstudentpullacommunitycardfromthecontainer.Explaintothemthattheywilldrawandcolorapictureofwhateverisnamedontheircommunitycard.Makesuretheylabelthepicture.

6. Wheneveryonehasfinished,havethestudentsplacetheirpicturesinarectangleonthefloorwithedgestouching(nogapsinthelargerectangle).

7. Saytothestudentsthatyouaregoingtotakeawalkthroughtown.Starttotakeastep,butthenhesitate.Say:“Ithinksomethingismissing.Whatisit?”(sidewalks)“Let’sputinsomesidewalks!”

8. Separatethepicturesintoblockswithfourpicturesperblockand,usingyellowconstructionpaperstrips,havestudentsputdownsidewalks.

9. Nameastudentwhodrewahouseorapartmentandsaythestudentneedstogotothegrocerystore.Thestudentwillhavetodrivesinceheorsheneedslotsofgroceries.Handthetoycartothestudenttodrivefromhisorherhousetothestore.

10. Thestudentsmightobservethattherearenoroads.Separatethe

buildingsfurther.Usingtheblackconstructionpaper,havestudentsputintheroadsaroundtheblocks,withsidewalkstoonesideoftheroads.


a. Whopaysforsidewalksandroads?(thegovernment)b. Wheredoesthegovernmentgetthemoneytopayforroadsand

sidewalks?(fromcollectingtaxes)

12. Explainthattaxespayforthingsthatmanypeopleusebutcan’treallypayforindividually.Askstudentsiftheycanthinkofsomemethodofmakingpeoplepaytowalkonthesidewalk.Tellstudentsthatthethingsthatareprovidedbygovernmenttoitscitizensandpaidforwithmoniescollectedfromtaxesarecalledgovernment‐providedgoodsandservices.Displaythe“government‐providedgoodsandservices”WordWallCard.

13. Explaintothestudentsthattheyaregoingtorearrangetheir

communitysothatallhousingisinonearea,privatelyowned

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businessesaretogetherinanotherarea,andgovernment‐providedservicesareinyetanotherarea.Havestudentspickuptheirpictures,leavingtheroadsandsidewalksinplace.

14. Askstudentswhoareholdingsometypeofhousingtoholduptheir

pictures.Askthemwhousuallypaysforthis?(anownerorrenter)Havethosestudentssettheirpicturesinonesectionoftown.

15. Askwhoisholdingabusinessownedbyanentrepreneur.Havethese

studentsholduptheirpictures.Tellstudentsthesebusinessesareprivatelyownedandprovideprivategoodsandservices.Havethesestudentsplacetheirpicturesinanothersectionoftown.Displaythe“privategoodsandservices”WordWallCard.

16. Askstudentswhopaysforthegoodsandservicesprovidedbyprivate

businesses.(individualconsumerswiththeirpersonalincome)17. Explaintothestudentsthattherearestillquiteafewthingsthatdon’t

fitintothecategoriesofhousingorbusinessesthatareprivatelyowned.Haveallthestudentsstillholdingpicturestellwhattheyhave.


a. Aretheseprivatelyowned?(no)b. Whopaysfortheservicestheyprovide?(thegovernmentwithmoniescollectedfromtaxes.)Havestudentsplacethesepicturesintheremainingblocksofthecommunity.

c. Howistrafficcontrolledatbusyintersections?(trafficlights)Havestudentsplacesometrafficlightsatintersections.

d. Whathelpsustoseewherewe’rewalkingintownatnight?(streetlamps)Havestudentsplacestreetlampsinthecommunity.

e. Whodoyouthinkpaysfortheselightsandtheelectricitytorunthem?(Thegovernmentpaysforthemwithmoneycollectedfromtaxes.)Havestudentsplaceafewstreetlampsinthecommunity.

Closure

1. Itappearsthatourcommunityiscomplete.Discussthefollowing:a. Whocanexplainwhatgovernment‐providedgoodsandservices

are?(goodsandservicesthatareprovidedbythegovernment)b. Howdoesgovernmentpayforthem?(Thegovernmentpayswith

moniescollectedfromtaxes.)c. Whydopeoplepaytaxes?(sothatthegovernmentcanprovidegoods

andservicesforthecommunity)d. Whatareexamplesofgovernment‐providedgoodsandservicesin

yourcommunity?(Answerswillvary.)

106

Assessment

1. Olderstudents–HavestudentswriteananswertotheQuestionoftheDay.

2. Youngerstudents–DistributeacopyofHandout10.2(YoungAssessment)toeachstudent(b–library)

Sources AdaptedfromEconomicsfortheElementaryClassroom,SPECPublishers,Inc.,2005

OldMacDonaldtoUncleSam,NationalCouncilonEconomicEducation,2002

107

Visual10.1

Whataregovernment‐providedgoodsandservices,andhoware

theypaidfor?

108

Handout10.1–CommunityCards

Marty’sMeat

Market

Sally’sSalon

Harry’sHomeBuilders

Tanya’sTravel

Agency

Mabel’sMovie

Theater

Robert’sRestaurant

house

house

house

apartmentbuilding

apartmentbuilding

house

firehouse

volunteerambulancecompany

policedepartment

statehighwaydepartmentbuilding

prison

school

Gary’sGroceryStore

Paul’sPetShop

Lucy’sLawFirm

recyclingcenter

publiclibrary

communitycenter

109

Handout10.2–YoungAssessmentName___________________________Circlethepicturethatshowsagovernment‐providedgoodorservice.

Name___________________________Circlethepicturethatshowsagovernment‐providedgoodorservice.

Name___________________________Circlethepicturethatshowsagovernment‐providedgoodorservice.

110

Lesson11–ImplementationofMarketDay

LessonComponents

Description

LessonDescription

MarketDayistheculminatingactivityofthisunit.Studentswillbeabletodemonstratewhattheyhavelearnedaboutentrepreneurship,advertising,andrunningabusiness.Theywillsetupshops,displayingtheiradvertisingsignsandtheproductstheyhavemade.Visitorsareencouragedtoattendasshoppers.

Objectives Studentswillbeableto: Demonstratequalitiesofsuccessfulentrepreneurship. Tallynumbersofsalesanddeterminetheirrevenue.

TimeRequired

60minutes

Materials

Handout11.1(Bills)–cutapart,onebillperstudent Handout11.2(BusinessLicense)–onecopyperstudent Handout11.3(TallySheet)–onecopyperstudent Handout6.2(AdvertisingHints)–usedinLesson6 ExtraECONObucksforvisitors–cutapart Desksortables Maskingandtransparenttape Markers Pencils

Studentswillsupply: Products Pricetags Advertising Moneybox Tablecoveringsanddisplayitemssuchasbaskets(optional)

Procedure INADVANCE:1. HavestudentscounttheirECONObucksandrecordtheamountson

theoutsidesoftheirwallets.

2. Iftheinstructorshavepurchasedsuppliesforstudentbusinesses,decideonanappropriatenumberofECONObuckstochargeeachstudent.YoumightwanttobasethisonthenumberofECONObucksyourstudentshave.Forexample,forstudentswhosesupplieswerenottooexpensive,perhapscharge5–10ECONObucks,themostexpensivesupplies25–30ECONObucks.

3. FilloutabillfromHandout11.1foreachstudent,charging5ECONObucksforabusinesslicenseandanappropriateamountforsuppliesthathavebeenpurchasedforthatstudent’sbusiness.

111

4. CompleteHandout11.2(BusinessLicense)foreachstudent.

5. Meetwitheachstudentindividuallytopresentandexplainthebill,

thenhavethestudentcountoutthenumberofECONObucksowed.Explainthatallexpenseshavenowbeenpaid,soanythingearnedonMarketDaywillbeprofit.

6. Havestudentsmakesignsfortheirbusiness.RedistributeHandout6.2(AdvertisingHints)usedinLesson6.Reviewtheattributesofagoodadvertisement.

IMPORTANTINFORMATION:Ifyouareinvitingoutsiderstoshop,theywillnothaveECONObucks.Setanexchangerate(suggestedrate:$1=5ECONObucks)andhaveanadultactasthebankertohandletheexchanges.UsetheU.S.currencytopurchaseitemsthatstudentswillwanttopurchase.InLesson12,studentswillbeabletousetheirremainingECONObucksonelasttimetopurchasetheseitems.Ifamoneyexchangeisnotappropriateforyourclientele,give5–10ECONObuckstoanyonewhocomestoshop.ONMARKETDAY:CompleteSteps1–5beforeopeningthemarkettoconsumers.1. BeforeMarketDaybegins,explaintothestudentsthatthevisitor

shopperswillpurchasefirst.TowardtheendofMarketDay,studentswillhaveanopportunitytopurchaseproductsfromeachother.However,theymightwanttosavesomeoftheirECONObucksforthefollowingweekwhenyouwillbeholdingasale.

2. GiveacopyofHandout11.3(TallySheet)toeachstudent.Havethemlisttheirproductsforsaleandthesellingprices.Demonstratehowtokeeptallies;studentswilltallyeverysalemadeduringMarketDay.(ThelasttwocolumnswillbecompletedduringLesson12Wrap‐Up.)

3. Arrangedesksortablestoresembleamarketarea.

4. Eachstudentwillselectalocationforhisorherbusiness.Makesurethatanyentrepreneurwhoneedselectricityisnearaplug.Iflongtablesareused,youmightwanttoassigntwostudentstoeachtable.

5. Studentswillsetuptheirbusinessareas,creatingappealingdisplaysbyusingtablecloths,baskets,etc.,andwillprominentlydisplay

112

advertisingpostersandproductprices.

6. Whenvisitorsbegintoshop,studentswillrecordsalesontheirtallysheets.

7. Asastudentsellsoutofaproduct,thestudentmay“closeupshop”andgoshoppingatotherbusinesses.Ifentrepreneursarenotsatisfiedwithhowtheirproductsareselling,theymaywishtohaveasalebymarkingdownthepricesontheiritems.

8. Towardtheendofasetamountofbusinesstime(perhaps30minutes),theremainingstudents(twoorthreeatatimesonotallbusinessesareclosedatthesametime)willhavetheoptiontoshopatotherbusinesses.

9. AttheendofMarketDay,collectthestudents’tallysheets.SaveforusewithLesson12.

10. Cleanupthemarketarea.

113

Handout11.1–Bills

BILLfor_______________

Youhaveearned_______ECONObucks.

Oweforsupplies:_______ECONObucks

OweforBusinessLicense:_______ECONObucks

Youhave_______ECONObucksremaining.

BILLfor

_______________





BILLfor

_______________





BILLfor

_______________


Oweforsupplies:______ECONObucks



BILLfor

_______________





BILLfor

_______________


Oweforsupplies:______ECONObucks


Youhave_______ECONObucksremaining.114

Handout11.2

BUSINESS LICENSE Business Owner _____________________________________________

Product ____________________________________________________

Business Name ______________________________________________

Business Owner’s Signature __________________________________

Leader’s Signature __________________________________________

115

Handout11.3–TallySheetName___________________________________

ItemsforSale

Price Tallies

NumberofItemsSold

RevenuefromItemsSold

EXAMPLE:NecklaceBracelets

2Ebucks1Ebuck

lllllll

43

8Ebucks3Ebucks

TOTALAMOUNTOFREVENUE

116

Lesson12–Wrap‐Up

QuestionoftheDay:HowdoIknowifImadeaprofit?LessonComponents

Description

LessonDescription

ThissessionwillbeginbyanalyzingindividualbusinessesfromMarketDay.Studentswillcalculateprofitorlossfortheirbusinesses.Thentheywillreflectontheexperiencebycompletingaquestionnaire.ThefinalactivitywillbeasalewherestudentsmayspendtheirremainingECONObucks.

Concepts Profit Loss

Objectives Studentswillbeableto: Calculateprofitorlossforabusiness

TimeRequired

60minutes

Materials

Visual12.1(QuestionoftheDay)–onefortheinstructor Handout11.3(TallySheet)–completedbyeachstudentin

Lesson11 Handout12.1(WasYourBusinessaSuccess?)–onecopyper

student Handout12.2(ReflectionsofMarketDay)–onecopyperstudent

Procedure INADVANCE:Purchaseavarietyofdollarstoreitems(and/orhaveparentsdonatesmallitems)forthefinalsale.Makepricetagsanddisplayalloftheseitemsonatablethatstudentscanbrowse.1. DisplayVisual12.1(QuestionoftheDay)totheclass.Readthe

questionandtellstudentsthatthislessonwillhelpthemanswerthequestion.

2. DistributetheirTallySheetstothestudents(Handout11.3)fromMarketDayandapencil.HavestudentscountuptheirtallymarksandwritethetotalforeachproductinColumn4(NumberofItemsSold).Then,usingadditionormultiplication(price×numbersold),figurerevenuefromeachproductandrecordtheamountinColumn5.Writethetotalrevenueinthelastboxonthepage.

3. DistributeHandout12.1(WasYourBusinessaSuccess?).Workthroughthispagestepbystepasagroup,withthestudentseachrecordingtheirowninformation.Askthestudentshowmanymadeaprofit.(Answerswillvary.)

4. Timewillvaryforthisnextactivity.ExplaintothestudentsthatthosewhostillhaveECONObuckstospendaregoingtoparticipatein

117

asale.Anyonewhoisinterestedinbuyingitemsmaypurchasethemfortheamountonthepricetag.

Closure 1. DistributeHandout12.2(ReflectionsofMarketDay).Dependingontheagelevelofyourgroup,youmightwanttoallowabout5minutesforstudentstothinkaboutthequestionsandjotdownsimpleresponses.Thequestionswillthenbethebasisfordiscussion.

Assessment 1. AskstudentstoanswertheQuestionoftheDayeitherinwritingororally.

118

Visual12.1

119

Handout12.1–WasYourBusinessaSuccess?

Name___________________________________

Expenses Amount

Suppliestomakeproducts ______________ECONObucks

Wagespaidtoemployees ______________ECONObucks

Businesslicense ______________ECONObucks

TOTALEXPENSES ______________ECONObucks

TOTALREVENUE(moneyreceived)

______________ECONObucks

PROFIT/LOSS

(TOTALREVENUEminusTOTAL

EXPENSES)

______________ECONObucks

Remember:IfyourREVENUEwasmorethanyourEXPENSES,yourbusinessmadeaPROFIT.IfyourEXPENSESweremorethanyourREVENUE,yourbusinesshadaloss.DidyourbusinesshaveaPROFIToraLOSS?________________

120

Handout12.2–ReflectionsofMarketDay

Name___________________________________

1.Whatthingsdidyouparticularlylikeaboutyourbusiness?

2. Didyoursignhave(circleone):

Lotsofcolors? YesorNo Biglettering? YesorNo Clearprices? YesorNo Goodadvertising? YesorNo

3. Wereyousatisfiedwithyourdisplay(productpackaging,tablecloth,baskets,etc.)?Whyorwhynot?

4. Howwelldidyoupriceyourproduct?

5. Ifyourproductsweren’tsellingwell,whatdidyoudotoimprovesales?

6. Didyouuseanykindof“gimmick”toattractcustomers(freesamples,acostume,fancypackaging,etc.)?

7. WhatwouldyoudodifferentlyifweweretohaveanotherMarketDay?

8. WhatisonethingyoulearnedfromMarketDay?

121

Lesson 1

Lesson 1

Lesson 1

122

Lesson 2

Lesson 2

Lesson 2

123

Lesson 3

Lesson 3

Lesson 3

124

Lesson 4

Lesson 4

Lesson 4

125

Lesson 4

Lesson 5

Lesson 5

126

Lesson 5

Lesson 5

Lessons 5 & 6

127

Lessons 6 - 8

Lessons 6 & 8

Lesson s7 & 12

128

Lesson s 7 & 12

Lesson 7

Lesson 8

129

Lesson 8

Lesson 9

Lesson 9

130

Lesson 9

Lesson 9

Lesson 9

131

Lesson 10

government‐providedgoods&

servicesLesson 10

Lesson 10

132

Children’s Literature

Many of the concepts taught in Lessons 1‐12 can be reinforced through the use of children’s

literature. Below is a list of children’s books that are recommended. Most do not specifically

use an economic concept by name but provide an opportunity for the instructor to ask for

examples of a concept from the text.

Lessons 1‐4

Barbour, Karen. Little Nino’s Pizzeria. Sandpiper, 1990. Concepts: consumer, producer, capital

resources, human resources, goods, services.

Barton, Bryon. Building a House. Greenwillow Books, 1990. Concepts: goods, services.

Blood, Charles L. The Goat in the Rug. Aladdin, 1990. Concepts: consumer, producer, capital

resources.

Brett, Jan. The Mitten. Putnam Juvenile, 1996. Concepts: scarcity.

Carle, Eric. Pancakes, Pancakes!. Aladdin, 1998. Concepts: consumer, producer, capital

resources, human resources.

Gilman, Phoebe. Something From Nothing. Scholastic Press, 1993. Concepts: opportunity cost.

McClosky, Robert. Homer Price. Puffin, 2005. Concepts: producer, capital resources.

Murphy, Stuart J. Monster Musical Chairs. Perfection Learning, 2000. Concepts: scarcity.

Numeroff, Laura. If You Give a Mouse a Cookie. HarperCollins, 1985. Concepts: wants.

Paulsen, Gary. The Tortilla Factory. Sandpiper, 1998. Concepts: capital resources, human

resources.

Sturges, Philemon. The Little Red Hen Makes a Pizza. Puffin, 2002. Concepts: consumer,

producer, capital resources, human resources, goods, services.

Williams, Vera B. Something Special for Me. Greenwillow, 1986. Concepts: choice, costs,

benefits, opportunity cost.

Lessons 5‐7, 11 and 12

Bair, Shelia. Isabel’s Car Wash. Albert Whitman & Company, 2011. Concepts: advertising,

entrepreneurship, profit, loss, revenue.

Lindsey, Kathleen D. Sweet Potato Pie. Lee & Low Books, 2008. Concepts: entrepreneurship.

133

Milway, Katie Smith. One Hen – How One Small Loan Made a Big Difference. Kids Can Press,

Ltd., 2008. Concepts: entrepreneurship.

Murphy, Stuart J. Lemonade for Sale. HarperCollins, 1997. Concepts: advertising, profit.

Murphy, Stuart J. Slugger’s Car Wash. HarperCollins, 2002. Concepts: advertising, profit, loss.

Paulsen, Gary. Lawn Boy. Yearling, 2009. Concepts: profit, revenue.

Lessons 8‐10

Bair, Shelia. Rock, Brock, and the Savings Shock. Albert Whitman & Company, 2006. Concepts:

interest, saving, spending.

Groenewald, Catherine. Jingle‐Jingle In My Pocket. Jacana Media, 2011. Concepts: saving,

savings goal.

Kennedy, Frances. The Pickle Path Bathtub. Tricycle Press, 2004. Concepts: saving, savings goal,

opportunity cost.

Malaspina, Ann. Yasmin’s Hammer. Lee & Low Books, 2010. Concepts: income, saving, savings

goal.

McBrier, Page. Beatrice’s Goat. Aladdin, 2004. Concepts: saving, savings goal.

Mitchell, Margaree King. Uncle Jed’s Barbershop. Aladdin, 1998. Concepts: saving, savings goal.

Murphy, Stuart J. Less Than Zero. HarperCollins, 2003. Concepts: saving, spending, income,

borrowing.

Nolen, Jerdine. Pitching in for Eubie. Amistad, 2007. Concepts: income, saving.

Viorst, Judith. Alexander, Who Used to Be Rich Last Sunday. Atheneum Books for Young

Readers, 1987. Concepts: saving, spending.

Wells, Rosemary. Bunny Money. Puffin, 2000. Concepts: goods, saving, spending, savings goal.

Williams, Vera B. A Chair for My Mother. Greenwillow Books, 1984. Concepts: saving, savings

goal, income.

134

The Council for Economic Education (CEE) is the leading organization in the United States that focuses on the economic and financial education of students from kindergarten through high school. For the past 60 years, our mission has been to instill in young people the fourth “R”—a real-world understanding of economics and personal finance. It is only by acquiring economic and financial literacy that children can learn that there are better options for a life well lived, will be able to see opportunity on their horizon line and, ultimately, can grow into successful and productive adults capable of making informed and responsible decisions.

www.councilforeconed.org

Teaching Opportunity®

122 East 42nd Street, Suite 2600, New York, NY 10168

Tel: (212) 730-7007

Documents

Never Too Young: Personal Finance for Young … Too Young: Personal Finance for Young Learners ... Personal Finance for Young Learners was ... done at various points during the 12