title lesson - obea | ontario business educators' … · web viewlesson 1 see url for word...

Resource Title Business Studies – Introduction to Business BBI10, BBI20Strand – Finance – Saving and Spending IssuesLesson 1 & 2

Intended Audience X Teacher only All Audiences (teachers, learners, parents) for All Audiences

Description of resource Students will develop an understanding of income, saving and spending issues facing individuals.

Key Terms (list up to 10) Financial Literacy, status, peer pressure, trends, Pay Yourself First, forced savings,compound interest, expense summaries, lines of credit, credit-card limits

Association OBEA (Ontario Business Educators’ Association)Creation Date 2012Grade(s) 9 & 10Subject(s) Introduction to Business BBI10, BBI20Strand(s) Finance

Overall expectation(s) -demonstrate an understanding of income and spending issues facing individuals and business

Teaching/Learning Strategies (Check up to four)

X Activity-Based StrategiesArts-Based Strategies

X Cooperative StrategiesDirect Instruction StrategiesIndependent Learning StrategiesInquiry and Research ModelsLearning StylesTechnology/Media-Based Applications

X Thinking Skill StrategiesResource Type (Optional)(check one)

Assessment LessonBest practice Lesson plan XCollection MapComputer activity Module or unitCourse Policy or procedureData set Project Demonstration ReferenceEducator’s guide ReportExercise SimulationExperiment Summative taskForm SyllabusGlossary TextGuidelines TutorialIndex or bibliography Visual aid

Learning Style(s)(Check up to four)

Bodily-Kinaesthetic intelligenceInterpersonal intelligence Intrapersonal intelligence

X Logical-Mathematical intelligence Musical-Rhythmic IntelligenceNaturalist Intelligence

X Verbal-Linguistic IntelligenceVisual-Spatial Intelligence

Software/Hardware Requirements (Optional)

Computers, internet connection, web browser.

Financial Literacy Lesson Plan 2012-Business Studies-Introduction to Business BBI

Financial Literacy Lesson Plan TemplateBusiness Studies – Introduction to Business BBI10, BBI20

Lesson 1

Connections to Financial Literacy understanding needs and wants; social, ethical and environmental implications of financial decisions;

Unit #: Day #: (Title) Subject/Course Code/Title/Curriculum Policy

Curriculum Expectations Learning GoalsIntroduction to Business, Grade 9 or 10 Strand: FinanceOverall expectation:-demonstrate an understanding of income and spending issues facing individuals and businessSpecific Expectations:-Identify the factors that need to be assessed in order to make effective purchasing decisions

Students will develop an understanding of what motivates us to make a purchase. Students will assess their spending habits.Students will develop an understanding of the difference between needs and wants.

Instructional Components and ContextReadinessStudents will need to know good discussion etiquette.For discussion etiquette refer to:Think Literacy: Cross Curricular Approach, 7-12 page 176 available at www.edu.gov.on

Terminologystatus, peer pressure, trends, customs & habits, advertising, price, promotion, impulse, fad

MaterialsTeacher will need a copy of “The Wealthy Barber Returns” by David Chilton, ISBN 978-0-9683947-4-8 published 2011


http://www.edu.gov.on/

Minds On Establishing a positive learning environment Connecting to prior learning and/or experiences Setting the context for learning

ConnectionsExplicitly label:

Assessment for learning

Assessment as learning

Assessment of learning

Explicitly identify planned differentiation of content, process, or product based on readiness, interest, or learning

Whole Class Read, Listen & Discussion

DescriptionRead to the class the chapter “The Power of Perspective” pages 29 to 33 from “The Wealthy Barber Returns” by David ChiltonThe teacher will use guiding questions after the reading to encourage class discussion. The reading encourages question like:How spoiled are we?Have we won the lottery by living in Canada? Why? Give examples.How fortunate are we compared to others in the world? Give examples.Are we living the dream that our grandparents strived for?What do you think life was like when our grandparents were teenagers?Do we need all this stuff? Have we as a society gone too far in our pursuit of stuff?This leads to an explanation of needs and wants and a discussion about:Why we buy? (status, peer pressure, trends, customs & habits, advertising, price, promotion, impulse, fad)Read to the class the chapter “Status Update” pages 11 to 13 from “the Wealthy Barber Returns” by David ChiltonDiscuss with the class the idea that “many of our purchases are made with others in mind”.

A student who may have difficulty with assessing spending habits and buying behaviour could prepare a bulletin board with pictures demonstrating needs, wants, fads, impulse purchases, status purchases, trends etc.

A student who may have difficulty with the class discussion the pair/share and/or assessment of spending could prepare a one page written answer to the discussion questions.

AaL: assessment as learningAction! Introducing new learning or extending/reinforcing prior learning Providing opportunities for practice and application of learning (guided > independent)DescriptionAsk each student to assess their spending habits by making a list of everything they can remember buying in the past several months or longer (food, clothing, makeup, movie, video game etc.) and what it cost. Beside each expenditure indicate if it was a need or want, stuff or experience. For five items on your list answer the following questions. What motivated you to make the purchase? Was it a wise decision? Did you get a lot of satisfaction from making the purchase? If you work at minimum wage of $10.25 per hour, how many hours did you have to work to pay for the purchase? Which purchase made you the happiest, was it stuff or an experience (hockey game, movie, golf game, vacation)? Pair and share your list with one other student. SEE ATTACHMENT

AfL – assessment for learning

Consolidation Providing opportunities for consolidation and reflection Helping students demonstrate what they have learnedWhole Class Student reflection

DescriptionAoL: assessment of learning


Bring the class back together and have each group of two answer the questions above related to one purchase. Poll the class on which purchases make them the happiest “stuff” or “experiences”.


ASSESS YOUR SPENDING HABITSLIST OF SPENDING

List the items you have purchased in the past several months, stuff or experience (examples: clothing, food, makeup, paintball game, yoga class, hockey game, cell phone, etc.)

ITEM PRICE NEED WANT STUFF EXPERIENCE________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

________ ________ ________ ________ ________ ________

For five items on your list answer the following questions:

What motivated you to make the purchase?

Was it a wise decision?

Did you get a lot of satisfaction from making the purchase?

If you work at minimum wage of $10.25 per hour how many hours did you have to work to pay for the purchase?

Which of the five purchases made you the happiest, was it stuff or an experience? Explain.

Pair and share your list with one other student.


Financial Literacy Lesson Plan TemplateBusiness Studies – Introduction to Business BBI10, BBI20

Lesson 2

Connections to Financial Literacy

understanding needs and wants; personal financial planning such as budgeting, saving and investing; planning for the future.

Unit #: Day #: (Title) Subject/Course Code/Title/Curriculum Policy

Curriculum Expectations Learning GoalsIntroduction to Business, Grade 9 or 10 Strand: FinanceOverall expectation:-demonstrate an understanding of income and spending issues facing individuals and businessSpecific Expectations:-Identify the factors that need to be assessed in order to make effective purchasing decisions

At the end of this lesson, students will have an understand of:

- good saving strategies (ie. Pay Yourself First)

- compound interest- why it is important to save- value of expense summaries- efficient spenders- Rule of 72

Instructional Components and ContextReadinessLesson 1See URL for word search attached last page

Terminology “Pay Yourself First”, forced savings techniques, payroll deduction, automatic withdrawal, compound interest, expense summaries, lines of credit, credit-card limits, opportunity cost, wise spenders, efficient spenders, “latte factor”, rule of 72

MaterialsTeacher will need a copy of “The Wealthy Barber Returns” by David ChiltonISBN 978-0-9683947-4-8 published 2011Prepare a savings chart like example 1 & 2 attached for the students to use when they go online to use a savings calculator.Latte Factor saving each month $20.00Interest Rate 1yr. 3yrs. 5yrs. 10yrs. 15yrs. 20yrs. 30yrs. 2% 3% 4% 5% 6%See attachment


Minds On Establishing a positive learning environment Connecting to prior learning and/or experiences Setting the context for learning

ConnectionsExplicitly label:

Assessment for learning

Assessment as learning

Assessment of learning

Explicitly identify planned differentiation of content, process, or product based on readiness, interest, or learning

Whole Class Read, Listen, Discuss

DescriptionRead to the class the chapter “My Frustration” pages 75 to 77 from “The Wealthy Barber Returns” by David ChiltonDuring the reading explain to the class the concept of “Pay Yourself First”, forced savings techniques, payroll deduction, automatic withdrawal. Explain to the students why over their working career even when you are working part-time as a teenager, why, why, why, you must learn to save for the long term. Why it is important to develop the habit of saving while you are young? So you will become a saver as an young adult and benefit from the compound interest factor.Convince the students about saving by reading chapter “When You Assume” pages 93 to 96 and going over the case of the twin brothers Hank and Simon and the difference compound interest makes when you start saving at a young age.Use a spreadsheet to demonstrate the case with different scenarios.See Attached examples 1 and 2. Ask the students if they could save $20.00 a week for 20 years. It may just mean “brown bagging” it to school and work for lunch three days a week or not buying that latte twice a week. Read to the class chapters “A Worthwhile Hassle” and “And Furthermore” pages 81 to 88. During the reading explain to the class, expense summaries, lines of credit, credit-card limits, opportunity cost, wise spenders, efficient spenders, latte factor.

AfL – assessment for learning

Action! Introducing new learning or extending/reinforcing prior learning Providing opportunities for practice and application of learning (guided > independent)

DescriptionHave the students go back to lesson one and look at their spending habits list; it looks a lot like an expense summary. List and add up the dollar amount you spent on little things, the “latte factor”. How much did you spend? Do you have the discipline to save rather than spend? Are you a “wise, efficient, spender”?

Go online and using a savings calculator check out how much money you would have after 10, 20, 30, year if you saved the “latte factor” money each month.Reflect on the results.When you spend money you have lost the opportunity to put the money to work for you. When you save money you have put the money to work for you. WOW! If you make $10.25 in interest that is equivalent to working for one hour at minimum wage. Do you get the idea; your money is working for you making you more money. So spend less, save more, put your money to work so you don’t have to someday.

AaL: assessment as learning


Consolidation Providing opportunities for consolidation and reflection Helping students demonstrate what they have learned

DescriptionHave the students go to www.practicalmoneyskills.ca and use the saving calculator. Have the students use different monthly saving amounts, interest rates and terms and see how much they have after 5,10, 20, 30, 40 years. Calculate how much you would have if you invested $10.00 per week starting at 20 years of age until you are 50. Change the initial investment, regular deposit, compound interest rate, and number of years in future. Note the difference between compound interest rate calculated daily and yearly. Read the example above the calculator, “a $100 balance compounded quarterly at 5%”.Explain to the students “The Rule of 72”. The years to double your money = 72/rate of return compounded annually.At 8% compounded annually, it will take you 9 years to double your money (72/8). At 12% it would take you only 6 years (72/12).

Suggested websiteshttp://www.practicalmoneyskills.ca/foreducators/

http://www.fcac-acfc.gc.ca/eng/education/index-eng.asp

http://www.themoneybelt.gc.ca/thecity-lazone/eng/login-eng.aspx

Bonus ChallengeGo to website www.practicalmoneyskill.ca Experiment with the different calculators, “auto loans”, “cost of credit”, “save a million”, “save for post secondary education”. Let me know what numbers you put in and what you discovered, (i.e., How long will it take you to become a millionaire). The average student leaves university/college with a $40,000 loan. Input $40,000 into the “cost of credit” calculator, with monthly payments of $500 at 6% APR (annual percentage rate). What are your “Total Finance Charge” and “Total Cost”? How much did it cost you to borrow the $40,000 for 8.5 years? Reflect on the results. How do you feel about the cost? Is there anything you can do to change the cost amount? Discuss with you teacher.




http://www.themoneybelt.gc.ca/thecity-lazone/eng/login-eng.aspx

http://www.fcac-acfc.gc.ca/eng/education/index-eng.asp

http://www.practicalmoneyskills.ca/foreducators/

http://www.practicalmoneyskills.ca/

Pay Yourself First

example 1:Save this each week At % Interest In 10 years you’ll have$7.00 5% $4,72014.00 5% 9,44021.00 5% 14,16028.00 5% 18,88035.00 5% 23,600

example 2:If you invest $1,000 each year ($19.20 per week)Interest Rate 5 yrs. 10 yrs. 15 yrs. 20 yrs.

5% $5,525 $12,578 $21,578 $33,0656% 5,637 13,181 23,276 36,7867% 5,751 13,816 25,129 40,9958% 5,867 14,487 27,152 45,7629% 5,985 15,193 29,361 51,16010% 6,105 15,937 31,772 57,25711% 6,228 16,722 34,405 64,20312% 6,353 17,548 37,279 75,052


Latte Factor saving each month $20.00

Interest Rate 1yr. 3yrs. 5yrs. 10yrs. 15yrs. 20yrs. 30yrs.2%

3%

4%

5%

6%

7%

8%

9%

10%


CHECK OUT SAVING & INVESTING WORD SEARCH AT URL BELOW

file:///C:/Documents%20and%20Settings/Owner/My%20Documents/DON/FINANCIAL%20LITERACY%20PROJECT%20MINISTRY/Financial%20Literacy%20-%20Saving%20Investing-wordfind.htm
