Transcript Smarter Texans Save - Texas Council on Economic Education

Helping young people learn to think, choose, and make better
economic and financial choices in a global economy
Laura Ewing
President/CEO
1801 Allen Parkway,
Houston, TX 77019
P: 713.655.1650
F: 713.655.1655
[email protected]
Cindy Manzano
Director of Smarter Texas
1801 Allen Parkway,
Houston, TX 77019
C: 713.503.5338
F: 713.655.1655
[email protected]
www.economicstexas.org
www.smartertexas.org
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Laura Rosen
OpportunityTexas Coordinator
Center for Public Policy Priorities
2
J. Pat Hickman,
Chairman & CEO, Happy
State Bank
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Cari Roach, Marketing Director
Stacie Smith, CRA Officer
Morgan Graser, Kids’ Bank
Coordinating
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• Resources for lessons:
• Financial Fitness For Life
• Spiraled Curriculum
• Kindergarten – Grade 2
• Grades 3 – 5
• Grades 6 – 8
• Grades 9 – 12
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What is personal
financial literacy?
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What are some
misconceptions elementary
children have about money?
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Lesson 1
The Grasshopper and the Ant
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“You can’t have your
cake and eat it too.”
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• Use time to play soccer or basketball
• If I choose to play soccer during recess, my
opportunity cost is the chance to play basketball.
• Use money to buy a toy or a snack
• If I buy a toy, my opportunity cost is the snack that I
would otherwise have purchased with the same
amount of money.
Opportunity Cost
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• Use time to watch TV or study for math test
• If I use my time to watch television, my opportunity
cost is studying for my math test.
• Use allowance to buy new video game or save it
• If I save my allowance to purchase a new video game,
my opportunity cost is the things I would otherwise
have bought with the same amount of money.
Opportunity Cost
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• Share an example using the
term opportunity cost.
• Why did you choose one alternative over
the other?
• What influenced your choice?
Opportunity Cost
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Let’s read The
Grasshopper and the
Ant
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Listen for these words:
•
•
•
•
•
•
•
Borrow
Spend
Save
Earn
Bank
Interest
Opportunity cost
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• What is spending?
• What is savings?
• What was the ant’s messagethe moral of the
story?
• What does this message mean to you?
• How did the ant earn the money she was putting
in the bank?
The Ant
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• Think of time you made a choice, like the
grasshopper, and later wished that you hadn’t made
that choice.
The Grasshopper
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• Where did the ant save her money?
• How did the ant explain the concept of interest to
the grasshopper?
• Why didn’t the grasshopper understand what the ant
was saying about interest?
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Banks pay interest
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• Giving up some of one thing to get
some of another thing.
• Not buying a new television set
now in order to have money for
new tires for the family car.
Trade-off
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• What did the ant say we give up when
we spend?
• What did the ant call the next-best
alternative that is given up when a
choice is made?
• “What did the ant say the bank pays
her to save?
• What is interest?
Closure
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Lesson 2
Savings Starts with Wanting More –
Part 1
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• Repairing a bicycle
• Grooming a dog
• Watching a movie
Goods and Services
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What do these 4 things have
in common?
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Sources of income
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Chores as a source of
income
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• Where can students keep their
savings?
• Do you decide whether or not you will
save money, or do your parents make
that decision for you?
• Why do you save?
Saving Money
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Goal
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1. Fold a blank sheet of paper
hamburger style.
2. Write your name on the top right.
3. Write “My Savings Plan” on the front
cover.
4. Decorate cover page only.
My Savings Plan
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1. Set a Goal
2. Calculate a Savings Plan
3. Where Will I Save My Money?
My Savings Plan
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• List 10 goods and services that
you want to have.
Step 1: Set a Goal
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Lesson 3
Savings Starts with Wanting More – Part 2
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• Is your savings target realistic?
• Can you really set that amount of money
aside each week or month?
• What can you do if the targeted amount is
too much or too little?
• What will you give up by saving the
targeted amount each week or month?
Step 2: Calculate a
Savings Plan
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Incentive
Step 3: Where Will I
Save My Money?
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Incentive - a reward or penalty that
influences how people behave.
Step 3: Where Will I
Save My Money?
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Lesson 4
Saving Starts with Wanting More –
Part 3
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• Rodrigo put his birthday money into
his account.
• Rodrigo wrote a check to pay the vet
bill.
• Rodrigo used his debit card to get
money out of his account.
• The bank pays you $1.25 in interest.
Deposit or Withdrawal
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• What was the beginning
balance on October 31,
2009?
• How much did Ms.
Savealot deposit during
November?
• How much was
withdrawn during
November?
• How much interest was
earned this month?
• What is the ending
balance in the account
on November 30, 2009?
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38
in
out
Savings Account Register
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Savings Account Register
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Savings Account Register
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Savings Account Register
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• Choose your partner.
$100,000 Pyramid
Game
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• Goal
• Services
• Withdrawal
• Opportunity cost
• Interest
Game 1
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• Bank
• Short-term goal
• Income
• Trade-off
• Deposit
Game 2
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Lesson 5
It’s a Balancing Act
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Income
Expenses
Saving
Budget
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• GROSS INCOME – TAXES = NET INCOME
• NET INCOME = $1200
Net Income
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You will need Ex. 15.1, Act.
15.2, scissors and glue
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• Remain the same month to month
Fixed Expenses
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• Vary month to month
Variable Expenses
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Answer questions 4 -10 on your
own.
Exercise 15.1
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11. Write a mathematical sentence
showng the relationship between
the Trans’ income and expenses for
June.
Expenses = Income
Exercise 15.1
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• Did the Trans’ family budget for savings?
• Why might they save?
• Have you ever saved money to be able to buy
something in the future?
• Have other members of your family saved for
somethng in the future?
Exercise 15.1 - Savings
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The Monroe Family
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• What changes would the Monroe family have to
make in order to put aside $20 more per month for
their vacation?
Monroe Family Budget
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•
•
•
•
What is income?
What are expenses?
What is a budget?
If a person’s expense are greater than his income,
what must he do to balance his budget?
• What are variable expense? Can you give an
example?
• What are fixed expenses? Can you give an
example?
Closure for Lesson 5
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Money In, Money Out
Lesson 6
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Create a budget for
Jordan.
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•
•
•
•
•
•
What is a budget?
Why is having a budget important?
What is income?
What are expenses?
What does it mean to have a balanced budget?
What must you do if your expenses exceed your
income?
• Why is it important to have a savings?
Closure
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SIFE: Students in Free Enterprise
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West Texas A&M SIFE
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Jean Walker, Director
West Texas Center for Economic
Education
College of Business
West Texas A&M University
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