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Never Too Young: Personal Finance for Young Learners

After School Program for Elementary School Students in Personal Finance and Economics

Presented for United Way After School Programs by:

Laura Ewing, PresidentTexas Council on Economic Education

Houston, Texas

Jean Walker, DirectorWest Texas Center for Economic

EducationCollege of Business, WTAMU

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Questions and Answers• As you complete the registration form, please consider the following:• Place Never Too Young for the Materials Rec’d

– If you are one of the 60 receiving a stipend, please also place Pin Drive and circle on Materials line.

• If receiving a stipend, put stipend to the right of your name and circle.• Trainers: Laura Ewing and Jean Walker• If you are a center director or board member, you will provide how

many students are in your center for the bottom section.• Please write in lower right corner:

1. Can you complete these six lessons by December 15? If not, when is your date of completion?2. Will you be able to attend the second half of the training in January? If so, when is a good date?

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Thanks to the following sponsors:

The after school program is made possible by funding from the Council for Economic Education, United Way and TCEE.

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Overview of the Lessons• 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 .............................. 63‐• Lesson 7 Entrepreneurship and Market Day ...................................... 77• Lesson 8 Budgeting ....................................................................... 87• Lesson 9 Saving Your Money ......................................................... 97• Lesson 10 Government Provided Goods and Services .................... 105‐• Lesson 11 Market Day—Implementation ........................................ 113• Lesson 12Market Day—Wrap up ..................................................... 118‐

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Parameters of the CEE Grant

• Complete all lessons– Make modifications for K to 2 in that they draw or have a

teacher led discussion in cases where they may need more prompting

• Include pedagogy and classroom management in the training

The goal is to teach in a hands-on manner appropriate for an after school program

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Tricks of the Teaching Trade• Have all supplies and materials ready before moving students into the room.• Try to hold lessons in classroom separate from the after school program

– Quieter– Change in venue changes behavior

• Teaching position, interactive position, discipline position matter• Quiet teacher voices reduces noise level• Make clear the classroom expectations• Have a signal so that students will end talking-use a different symbol from

that of the after school program.• Clap and students respond• Raise your hand• Snap• Play the drums: stomp, clap, snap and then finger to mouth

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Strategies for Lesson Success• Opening question centered around student’s world is important• Interactive lessons to acquire and grow the knowledge helps shape behavior• Practice, practice, practice—even at the snack table• Closure in which they review important• Keep lessons to 45 minutes and include all of the steps• Wait time in calling on students• Say the question and wait 10 seconds then call on someone• Call on a variety of students• Use the tongue depressor method: put each student’s name on one and

then choose one out as you ask the question. Leave the “called on person’s” stick on the desk. Replace all to the holder when the session ends.

• Yes No and Maybe

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Strategies for Lesson Success 2• Elbow partners• Think Pair Share: 1, 2, 3• Avoid “wrong answers” by saying, “You are on the right track, that is close, you are

getting warm”• Rules for brainstorming: • Throw out answers—no comments allowed• Allow quiet for more answers• Discuss• Make choices with positive reasons for selections• Air of mystery: what is in the box, what do you think happens next? • Make stories interactive• Symbols for characters• Inflection of voice• Word Wall-post for lesson and point to it as talk about it (may need portable science

board)

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Lesson 1-We Have Wants

• Concepts for Word WallWants

ChoicesEconomics

• Objectives Identify what a want is

Explain why they have to make choicesExplain why it is necessary to prioritize their wants.

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Think

• Materials: paper and pencil for each student• Students: – Make a hotdog and then hamburger fold so that

you have four sections on your paper– Write or draw a want you have right now—one

want in each section– Put your name on the back of the paper

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Pair and Then Share

• With an elbow partner, discuss:– Can you have all of your wants?– Why or why not?– What does the word choice have to do with your

wants?– Summarize your answer in case you are called on to

share with everyone.

• Share three answers with the whole class

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WANTS and CHOICE

• We are going to start a word wall. We will begin with the word wants. What do we mean by wants?

• WANTS• What do we mean by the word choice?

• CHOICE

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Rank or Prioritize Your 4 Wants

• 1. Place a 1 by the drawing that represents your first choice.

• 2. By your second choice

• 3. By your third choice

• 4. By your fourth choice

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Questions for Nicholas Story

As you listen to the story, think about these questions:1. What are some of Nicholas’s wants in the story?2. Why was Nicholas sorry he had bought the candy

bar?3. Why did Dad say Nicholas had to make a decision?4. What spending choice must Nicholas make?5. Have any of you had to make a decision like Nicholas?6. What could Nicholas do to save money to achieve his

goal of buying his big item?

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Nicholas Has Many Wants• Every time you hear the word __ hold up __• Want

• Choices

• Money, buy

• Hamster

• Fish

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Think,Pair, Share About Nicholas’ Story

As I read each question, think about the answer.

1. What are some of Nicholas’s wants in the story?2. Why was Nicholas sorry he had bought the candy bar?3. Why did Dad say Nicholas had to make a decision?4. What spending choice must Nicholas make?5. Have any of you had to make a decision like Nicholas?6. What could Nicholas do to save money to achieve his

goal of buying a pet?

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ECONOMICS

• Look back at your four choices and how you rank ordered them.

• What do you think the word economics means?

• We will study the term economics over the next few weeks.

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Economics is...

• The study of how people satisfy their wants through choices they make.

What About YOU??

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I’ve Got Money LyricsTune: Are you Sleeping, Brother John

• I’ve got Money,• I’ve got Money,• What should I do?• What should I do?• I must make a choice,• I must make a choice,• Spend or save,• Spend or save.

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I’ve Got Money 2

• I’ve got Money,• I’ve got Money,• I could spend,• I could spend,• Getting something now,• Getting something now,• Something small,• Something small

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I’ve Got Money 3

• I’ve got Money,• I’ve got Money,• I could save,• I could save,• Getting something later,• Getting something later,• Something big,• Something big.

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I’ve Got Money 4

• I’ve got Money,• I’ve got Money,• What should I do?• What should I do?• Spend a little now,• Spend a little now,• Save some, too!• Save some, too!

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Think Pair Share About the Song

• 1. What were the wants in the song?

• 2. Why was it necessary to make a choice on what to do with the money?

• Would you spend, save or do some of both?

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Closure and Assessment

1. What Words Did We Learn Today?

2. What do they mean?

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wants

Lesson 1 – We Have Wants

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choice

Lesson 1 – We Have Wants

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economics

Lesson 1 – We Have Wants

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Why Do We Have to Make

Choices?

Lesson 1 – We Have Wants

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Questions to Answer

• Nicholas’s sister Anna has one dollar - $1.00. She goes to the toy store and sees two things she wants to buy. Both cost one dollar each - $1.00.

1. Can Anna have both items?2. Why or why not?3. What does Anna have to do?4. How can Anna make a good choice?

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What is scarcity?

Lesson 2 – Scarcity

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goods

Lesson 2 – Scarcity

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services

Lesson 2 – Scarcity

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Think, Pair, Share

Two Questions:1. What is a good, 2. What is a service?

Think by yourself.Share with an elbow partnerShare answers while I write on the board:

Goods Services

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What Are Goods and Services?

• Good • Service

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Two Questions:

• Think: – 1. If you had all the money in the world, what is one

thing you would buy?– 2. If you have $10, what would you buy?

• Pair: Discuss your answers with elbow partner• Share: What was the difference between your

answers and why?• Which question is reality? Why can’t you buy

everything you want?

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What Does Scarcity Mean?

• We lack the resources to buy everything we want.

• We lack the time to do everything we want.• So, because of scarcity, people have to make

choices. • What does “choice” mean?

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Candy• Are there lots of candy bars in the world? Are there many

of them available at the store?• I have one candy bar. • How many would like this?• Is there a problem? • What is the problem called?• How do we distribute the candy bar? In other words,

who gets it? • What are your suggestions? • Let’s vote on the best way to decide.

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Not EnoughWheels!

• You will receive a-– Glue– Handout with different vehicles needing wheels– 4 wheels

• How many wheels do you need? • How many wheels do you have?• What is scarce?

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Scarcity

• Because of ______ of wheels, you will have to make ______.

• Make your choice. Glue your wheels on the vehicles or transportation you would like to choose. You may choose more than one but you only have ____ wheels.

• Who chose roller skate? Why or why not?• Think, pair, share who you used your wheels and

why.

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ECONObucks• Getting started:– Duplicate multiple sheets of ECONObucks on

green paper and cut the bills apart.– Provide each student an envelope to keep their

ECONObucks in.– Put each student’s name on envelope.– Hand out envelopes each time and take up at end

of lesson.

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ECONObucks• Use as INCENTIVES:– to increase motivation– for participation– to reward good citizenship– for completing work

• Use for BUYING and SELLING in multiple lessons.

• Use for DEPOSITS and WITHDRAWALS in lessons that teach banking skills.

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ECONObucks• Other ideas for ECONObucks:

– Each afterschool program will have a small amount of money to purchase items on which students can spend ECONObucks. Each program should develop its own rules for this.

– In the second semester, students will produce goods for a “market day” and will need to have ECONObucks to purchase resources as producers and to purchase each other’s goods as consumers.

– For older students, ECONObucks can be created that have other values -- $5, $10, $20.

– Remember—we are modeling saving for the future, budgeting, and spending.

– At the end, you need an activity such as a sale that gets all of the ECONObucks out of the hands of the students because they lose value once the lessons are over.

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ECONObuck Register• Name________ Grade_____ School _______

Check # Date Transaction/Description Subtractions Additions Balance

Amount of Payment $$$

Amount of Deposit $$$

$$$$

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Musical Chairs

• Let’s play musical chairs.

• Think, pair, share: What happened?• How does this activity represent scarcity?• What choices did you have to make?

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Closure

Work with a partner on the actions below• Draw or write two examples of goods. • Write a definition of goods.• Draw or write two examples of services.• Write a definition of services.• What is scarcity?• Name three things that are scarce.

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Assess What You Know

• What is Scarcity???? Draw and define your answer.

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What Do You Know?

• A 2nd grade class has three field trips planned. They are planning to go to a theme park, a science museum, and the zoo. One day the principal announces there are only enough buses for one trip. The students must now choose what trip they want to go on.

• 1. What is scarce?• 2. How do you think the class might choose?

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How do I make the best choice?

Lesson 3 – Choices, Costs, and Benefits

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benefits

Lesson 3 – Choices, Costs, and Benefits

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costs

Lesson 3 – Choices, Costs, and Benefits

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opportunitycosts

Lesson 3 – Choices, Costs, and Benefits

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Procedure for Lesson 3 Activity

Lesson 3 – Choices, Costs, and Benefits

Divide students into groups of three.

One of the three is the “recorder.”

Give each group one copy of Handout 3.1.

Students will decide which activity they will do next summer. Already listed are:

Sports teamSwimmingCampingChoose your own

A column lists “costs”. A column lists “benefits.”

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Procedure for Lesson 3 Activity

Lesson 3 – Choices, Costs, and Benefits

Have students analyze all four alternatives by listing cost and benefits. Then they should vote and rank 1 to 4.

Have each group report back.

Make the point that what they picked 1st is their choice, and what they picked 2nd is their opportunity cost.

Next activity: Distribute a piece of paper and have each student write down or draw pictures of their three favorite activities to do after school.

The should put “1” by the first choice, “2” and second choice, and “3” on the third choice.

Have them circle their choice.Have them draw a box around their opportunity cost.

Have them report by saying, “__________ is my choice, and ____________ is my opportunity cost.”

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Assessment for Lesson 3

Lesson 3 – Choices, Costs, and Benefits

Have older students write an answer to the question, “How do I make the best choice.”

For younger students, use Handout 3.2. Cut the strips apart and have them draw one out of a container.

They read the scenario (or they draw it out and you read it), then they state their choice and select another student to tell the opportunity cost.

Example: The blue shirt was cool, but Matthew decided to get the yellow one.

the blue shirt is the choice

the yellow shirt is the opportunity cost

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How are people both producers

and consumers?

Lesson 4 – Consumers, Producers, and Resources

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producer

Lesson 4 – Consumers, Producers, and Resources

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consumer

Lesson 4 – Consumers, Producers, and Resources

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BirthdayParty

Lesson 4 – Consumers, Producers, and Resources

What comes to mind when you think of a birthday party?

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Activity – Lesson 4

Lesson 4 – Consumers, Producers, and Resources

Divide into groups of 4.

Each groups gets:3 pencils3 pairs of scissors1 set of 4 patterns5 sheets each - red, green, blue, and yellow

papera paper lunch bag10 sandwich bagsHandout 4.1 – the instructions

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Activity – Lesson 4

Lesson 4 – Consumers, Producers, and Resources

Explain they are all going to be PRODUCERS.

Each group will be producing birthday decorations.

Read the instructions to the groups and show the cut-outs.

Tell them that quality is more important than quantity, so it is important to cut out each decoration very carefully and one at a time so that each complete product has smooth edges.

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Activity – Lesson 4

Lesson 4 – Consumers, Producers, and Resources

Each group is a small company of PRODUCERS.

Groups have 20 minutes to work.

Stop production after 10 minutes. Tell teams to inspect work for quality and reorganize the production if necessary.

After 10 more minutes, stop production.

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Activity – Lesson 4

Lesson 4 – Consumers, Producers, and Resources

All sandwich bags of decorations should be put into the lunch bag and labeled with names.

Collect unused materials.

Give bags to panel of judges to make sure quality is good. Give 1 point for each correct packet.

Reward the winner with ECONbucks.

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Activity – Lesson 4

Lesson 4 – Consumers, Producers, and Resources

Use the work done as a point of discussion for:

Human resources – the mental and physical work to produce goods and services

Capital resources – the tools, equipment, and factories in the production process

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What are human and

capital resources?

Lesson 4 – Consumers, Producers, and Resources

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human resources

Lesson 4 – Consumers, Producers, and Resources

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capital resources

Lesson 4 – Consumers, Producers, and Resources

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natural resources

Lesson 4 – Consumers, Producers, and Resources

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What is a budget?

Lesson 8 – Budgeting

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BudgetSpending and savings plan that lists the income and expenses that a person has.

Lesson 8 – Budgeting

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income

Lesson 8 – Budgeting

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IncomeMoney $$$ from working and other

sources.What are ways you can earn money?

Lesson 8 – Budgeting

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balanced budget

Lesson 8 – Budgeting

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expenses

Lesson 8 – Budgeting

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ExpensesMoney $$$ that is spent on

goods and services.

Lesson 8 – Budgeting

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Weekly Budget

• You are going to work on making a weekly budget. In a budget you keep track of the money spent on your goods and services.

• What is a BALANCED BUDGET?

• My Budget

Income Expenses

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Envelopes

Money In Cards Are Your ??? Money Out Cards Are Your ????

Spread The Envelope Contents Out

Place your cards face up on your desk as they are on the board: Left for Money In and ……………………………Right for Money Out

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Look At Your Money Money Money

1. What is the value of a quarter?

2. How many quarters do you have?

3. What is the total value of your quarters?

4. How many dollars do you have?

5. What is the total value of your money?

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Sources of Income or “Money In Cards”

• Income from helping grandma by doing yard work card—place $1.00 on top

• Income from walking the dog – place $1.00 on top

• Income from allowance – place $2.00 on top

• Do not place any money on the Extra Allowance Needed.

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Money In Your Hands

• Now, take the money from the three cards and hold in your hand.

• How much do you have for income?

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Look At Expenses or“Money Out Cards”

• 1. Place $3.00 on Spending Money on Pockets, your pet.

• 2. Place $.25 on Giving Money to the Children’s Hospital.

• Place $.75 on Saving Money for Gifts.

• Place $1.00 on Spending Money for Fun.

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Balanced Budget Time

• Take your money and place the appropriate amounts on the cards

• Your expenses = __________? Show with your fingers the total of our expenses.• Your income = _________?• Show with your fingers the total of your income.

• Is your budget balanced? Yes No Maybe

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How Do You Balance the Budget?

• Think how you would do it.

• Pair with your elbow partner and discuss how to balance your budget.

• Share 3 ideas out with the group.

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Closure

• What is a budget?• What is a balanced budget?• What is income?• What is an expense?

• You will need paper and pencil for the next activity.

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Visual 8.2 Amusement Park• Item Price Item Price• Video Arcade $5 Frozen• Lemonade $2• Cotton Candy $4 • Roller Coaster $4• Speedy Go‐Carts $5 • Hot Dog & Drink $4• Twister $5 • Free‐Fall Tower $5• Fun House$4 • Dunk Tank $5• Bumper Boats $6 • Basketball Dunk $4• Souvenir $5 • Ice Cream Cone $3• Chili Cheese Fries $5 • Ferris Wheel $6

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Setting Up A Budget For the Amusement Park

• Income• Expenses

Income Expenses

Write….$40 List how you will spend your money at the amusement park.

Be sure that your budget is balanced

After completing your budget, share your expenses with an elbow partner.

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Assessment

• What is a budget?

• You will each receive 8 quarters.• How much is that worth?• Look at Handout 8.4 and divide your money

among the expenses. • Make sure your budget is balanced.

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Why is it important to

save?

Lesson 9 – Saving Your Money

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Where do you save your money?

Lesson 9 – Saving Your Money

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deposit

Lesson 9 – Saving Your Money

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withdrawal

Lesson 9 – Saving Your Money

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savings accounts

Lesson 9 – Saving Your Money

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savings goal

Lesson 9 – Saving Your Money

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Banking Game• Divide into groups

of 4.• Each group has:– 50 ECONObucks– 8 deposit cards– 4 withdrawal cards– A “piggy bank”– A “probabilities

cube” (a die)– A savings register

like the one here

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Banking Game• Each group starts by putting

10 ECONObucks in the bank.• Then each person rolls,

draws a card, and deposits or withdraws.

• The balance must be kept.• Each person will explain out

loud. • For example: “I rolled a 3

and drew “deposit,” so I will deposit 3 ECONObucks that I earned for carrying out trash.

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Banking Game• They roll until they

have filled out the entire register.

• Discuss what people save money for.

• Give each a sheet of paper to draw a picture of something they want to save for.

• Put the drawings on a “savings goal” wall.

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Assessment of Lesson 9• Have older students answer the

question:Why is it important to save?

• For younger students:Using the picture they have drawn, have students

explain the steps they would take to complete their savings goal.

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Read About Saving