Laura Ewing President/CEO 1801 Allen Parkway, Houston, TX 77019 P: 713.655.1650 F: 713.655.1655...

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Laura EwingPresident/CEO

1801 Allen Parkway, Houston, TX 77019

P: 713.655.1650 F: 713.655.1655

laura@economicstexas.org

Helping young people learn to think, choose, and make better economic and financial choices in a global economy

Cindy ManzanoDirector of Smarter Texas

1801 Allen Parkway, Houston, TX 77019

C: 713.503.5338F: 713.655.1655

cindy@economicstexas.orgwww.economicstexas.org

www.smartertexas.org

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Financial Fitness For Life– Spiraled Curriculum

• Kindergarten – Grade 2• Grades 3 – 5 • Grades 6 – 8 • Grades 9 – 12

Financial Fitness for Life CDs provided by Council for Economic Education

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• Free lessons for grades 4-8

– Full 5E lesson for each PFL TEKS

– Lessons for grades 4-6 funded by

– Lessons for grades 7-8 funded by

– www.smartertexas.org under Resource tab

1) www.smartertexas.org2) Choose: Resource Tab 3) Choose: PFL Test Resources

If you have any difficulty, accessing the files or have any questions about the tests or stipends, please

contact Cindy at cindy@economicstexas.org

Level Password3 Verna684 Meyer19695 Fisher1970

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The TCEE programs are made possible by the following TCEE partners.

copyDR.

EnviroChem

Services, Inc.

Trout Foundation

John Anderson

Less B. FoxRBC Wealth Management

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To build financial capability, what knowledge and skills do students need to understand?

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What are some misconceptions elementary children have about money?

83-5 Resource

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FFFL: Lesson 4The Grasshopper and the Ant

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Listen for these words:• Borrow• Spend• Save• Earn• Bank• Interest• Opportunity cost

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Write down everything you want.

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Opportunity cost:

• The next-best alternative that is given up when a choice is made.

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Opportunity Cost

• Sofia must decide whether to finish her math assignment or read a book right after dinner. If she chooses her limited time to do the math assignment, what is her opportunity cost?

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Opportunity Cost

• Maurice must decide whether to put books or gym shoes on the shelf in his locker. If he chooses to use the shelf space for books what is his opportunity cost?

16Opportunity Cost

When have you had to make a choice due to limited time, limited

space, or limited money?• Use the phrase “opportunity cost” to describe

your situation.• Why did you choose one alternative over the

other?• What influenced your choice?

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Let’s read The Grasshopper and the Ant

18The Ant

• What is spending?• What is savings?• What was the ant’s messagethe moral of the story?• What does this message mean to you?• How did the ant earn the money she was putting in

the bank?

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The Grasshopper

• Think of time you made a choice, like the grasshopper, and later wished that you hadn’t made that choice.

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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?

21Banks pay interest

22Closure

• 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?

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FFFL: Lesson 5Savings Starts with Wanting More

24FFFL: Lesson 5

• Math PFL 3.9A: explain the connection between human capital/labor and income

• Math PFL 3.9E: List reasons to save and explain the benefit of a savings plan, including for college

• Math PFL 3.9F: Identify decisions involving income, spending, saving, credit, and charitable giving

• Math PFL 4.10C: Compare the advantages and disadvantages of various savings options

• Math PFL 4.10E: describe the basic purpose of financial institutions, including keeping money safe, borrowing money, and lending

• Math PFL 5.10D: Develop a system for keeping and using financial records

25Vocabulary

• Savings• Goals• Interest• Goods• Services• Opportunity cost

26Goods and Services

• Repairing a bicycle• Grooming a dog• Watching a movie

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Saving Starts with Wanting More

28Sources of income

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Chores as a source of income

30Saving Money

• 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?

31Goal

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Setting goals for your money

33My Savings Plan

1. Fold a blank sheet of paper along the shortest line of symmetry.

2. Write your name on the top right.

3. Write “My Savings Plan” on the front cover.

4. Decorate cover page only.

34My Savings Plan

1. Set a Goal

2. Calculate a Savings Plan

3. Where Will I Save My Money?

35 My Savings Plan

• 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?

36Making Decisions

Pair students up to discuss the following:• Explain your savings plan.• Decide where you will keep your

money.

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Deposit or Withdrawal

• 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.

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Savings Account Register

in out

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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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Assessments:

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$100,000 Pyramid Game

• Choose your partner.

46Game 1

• Goal• Services• Withdrawal• Opportunity cost• Interest

47Game 2

• Bank• Income• Borrow • Earn• Deposit

TCEE: Grade 4, Lesson 1Not Enough Bucks

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49Not Enough Bucks

TCEE created lesson

Grade 4, Lesson 1

• PFL Math 4.10A: distinguish between fixed and variable expenses

50Expenses

• Fixed expenses are those expenses that remain the same each week or month.

• Variable expenses are those expenses that vary from week to week or month to month.

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TCEE: Grade 4, Lesson 2Ideas for Raising Profit

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Ideas for Raising Profit

TCEE created lesson

Grade 4, Lesson 2

• PFL Math 4.10B: calculate profit in a given situation

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Capital Elementary School is getting ready to begin a fundraiser to buy additional playground equipment for their school. Mr. Cash’s fourth grade class has asked if they could work together to help with the project.

54Reader’s Theater

• Penny • Buck • Richey • Bill• Mr. Cash

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• What are some of the things each team will need to consider before you can put your fund raising plan into effect?

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• Assign each group a fund raising project.• Create a supply list needed to carry out

your fund raising project.

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• Which items can be borrowed or donated?• Circle items to purchase.

58Vocabulary

• Expenses –

• Revenue –

• Profit –

59Vocabulary

• Expenses – cost for supplies• Revenue –

• Profit –

60Vocabulary

• Expenses – cost for supplies• Revenue – total amount each project earns• Profit –

61Vocabulary

• Expenses – cost for supplies• Revenue – total amount each project earns• Profit – revenue minus expenses

62Profit

Yesterday my neighbor bought a birdhouse that I made. I spent $1.50 for wood and 25¢ for nails to make the birdhouse. I already had glue and paint. My neighbor gave me $5.00 for the birdhouse. How much profit did I make?

• profit = revenue – expenses

63Activity 4.2-2

64Closing

• Which fundraiser would you do? Why?

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TCEE: Grade 5, Lesson 1The Case of the Disappearing Paycheck

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The Case of the Disappearing Paycheck

TCEE created lesson

Grade 5, Lesson 1

• PFL Math 5.10A: define income tax, payroll tax, sales tax, and property tax

• PFL Math 5.10B: explain the difference between gross income and net income

67Word Splash

• Write any word or phrase or draw a picture on each chart paper to show what you know about each tax.

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The Case of the Disappearing Paycheck

• Create a tax flipbook• Number 1-4• Move to your number

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The Case of the Disappearing Check

• Group 1 will become experts on income tax.• Group 2 will become experts on payroll taxes.• Group 3 will become experts on sales tax.• Group 4 will become experts on property tax.

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The Case of the Disappearing Paycheck

• Read the section about your tax category.• Discuss the important points about your tax

category.• Create a visual on chart paper that

communicates the important information about your assigned tax.

• Plan your presentation.

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The Case of the Disappearing Paycheck

• What points will you write in your flipbook?• Now that you know more about taxes, where

does the money come from that one uses to pay taxes?

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The Case of the Disappearing Paycheck

• Here’s what Mr. Cash made in a one week period. He worked 40 hours and made $14.50 per hour. This means that he earned $580.00 that week. His federal withholding tax was $47.00, Social Security tax paid was $35.96, and his Medicare tax contribution was $8.41.

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The Case of the Disappearing Paycheck

• How much did Mr. Cash pay in taxes that week?

• What was his final net income? • How did you determine his net income?

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TCEE: Grade 5, Lesson 4Money In, Money Out

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Money In, Money Out

TCEE created lesson

Grade 5, Lesson 4

• PFL Math 5.10E: describe actions that might be taken to balance a budget when expenses exceed income

• PFL Math 5.10F: balance a simple budget

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Handsonbanking.org

Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00

mow the yard

$15.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00

mow the yard

$15.00

bathe the dog $5.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00

bathe the dog $5.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

entertainment $10

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

entertainment $10

Total: $30.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

entertainment $10

Total: $30.00 Total: $22.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

entertainment $10.00

saving for basketball shoes

Total: $30.00 Total: $22.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

entertainment $10.00

saving for basketball shoes $16.00

Total: $30.00 Total: $22.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

entertainment $10.00

saving for basketball shoes $16.00

Total: $30.00 Total: $22.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

entertainment $10.00

saving for basketball shoes $16.00

Total: $30.00 Total: $22.00 $38.00

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91Expenses

• Fixed expenses are those expenses that remain the same each week or month.

• Variable expenses are those expenses that vary from week to week or month to month.

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts $2.00

mow the yard

$15.00 college savings $5.00

bathe the dog $5.00 cell phone $5.00

entertainment $10.00

saving for basketball shoes $16.00

Total: $30.00 Total: $22.00 $38.00

Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts - f $2.00

mow the yard

$15.00 college savings - f $5.00

bathe the dog $5.00 cell phone - f $5.00

Entertainment - v $10.00

saving for basketball shoes $16.00

Total: $30.00 Total: $22.00 $38.00

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Column AWeekly Income

Column BWeekly Expenses

Source Amount Item Amount

allowance for household chores $10.00 dues for Scouts – f $2.00

mow the yard

$15.00 college savings – f $5.00

bathe the dog $5.00 cell phone – f $5.00

entertainment – v $10.00 $2.00

saving for basketball shoes – v $16.00

Total: $30.00 Total: $22.00 $38.00

$30.00 94

Jordan can reduce his entertainment from $10 to $2 for 5 weeks.

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96

97Evaluate

• How would you describe a budget?• Why is having a budget important?• What may happen if you do not stick

to your budget?

98Ginger’s Budget

We’ve worked on Jordan’s budget together to make sure he has a balanced budget. Now it’s your turn to help Ginger.

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Plan a weekly budget for yourself.

• You must have at least $30.00 weekly income. No more than $15.00 can be allowance. You must show jobs that you can do and would be willing to do every week.

• You must save at least $5.00 of your weekly income in a college savings plan.

• You must share/donate some of your income with others.

• You must spend some of your money. Your spending must be reasonable for someone your age.

• Your expenses may not exceed your income.

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Extension

• The Mint Kids – http://themint.org/kids/determining-your-budget.html

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Extension

• Students may create a skit about the Budgee twins, Spender and Saver. As their names imply, Spender likes to spend money while Saver prefers to save his money. The skit should illustrate problems that arise when one does not have a balanced budget.