Basic Finance Concepts
Lesson Overview
Media: Video (20 minutes)
Seat Time: 8 Classes | 400 minutes teaching
Goal:
To gain an understanding of basic financial concepts.
Description:
This lesson analyzes the functions of money, identifies types of currency and evaluates forms of financial exchange. Students will gain a basic understanding of credit, financial documents, major financial laws and the importance of financial responsibility.
Objectives:
1. To analyze the functions of money.
2. To identify various types of currency.
3. To evaluate forms of financial exchange.
4. To understand credit and credit worthiness.
5. To identify major financial laws and agencies.
6. To discuss the importance of financial responsibility.
Class 1
Class Overview:
Basics of Money Video Segment
Action Plan
Vocabulary Handout
Key Concepts
Basics of Money Check for Understanding
Know Your Cash Activity
Essential Questions:
1. What is money?
2. What are the functions of money?
3. What is currency?
4. What are financial exchanges?
Step 1: Bell Ringer:
· Have students write a sentence about their thoughts when they hear the word “money”.
Step 2: Distribute the Action Plan, Vocabulary Handout and Key Concepts.
· The Action Plan lays out a list of tasks for students to complete during the lesson.
· The Vocabulary Handout is a list of terms used throughout the lesson.
· The Key Concepts is an outline which identifies the main ideas presented in the lesson which students can fill in to aid in note taking during the lesson.
Step 3: Show the Basics of Money video segment.
· This video is six minutes long.
· Be sure to utilize the Key Concepts for this segment of the lesson.
Step 4: Administer the Basics of Money Check for Understanding.
· The check for understanding is a short review of the content presented in the segment.
Step 5: Students should begin the Know Your Cash Activity.
· Students will research a denomination of paper money to understand its features.
Step 6: Exit Ticket:
· Have students write down two questions they still have about the basics of money and lead a class discussion over the responses.
Class 2
Class Overview:
Action Plan
Know Your Cash Activity
Pros & Cons of Forms of Financial Exchange Activity
Step 1: Students should complete the Know Your Cash Activity.
· Students will research a denomination of paper money to understand its features.
Step 2: Students should complete the Pros & Cons of Forms of Financial Exchange Activity.
· Students will use online resources to research the pros and cons of different forms of financial exchange.
Step 3: Exit Ticket:
· Have students turn in the Know Your Cash Activity and the Pros & Cons of Forms of Financial Exchange Activity.
Class 3
Class Overview:
Basics of Credit Video Segment
Action Plan
KWL Chart Bell Ringer Activity
Key Concepts
Basics of Credit Check for Understanding
In the Know on Credit Reporting Activity
Essential Questions:
1. What is credit?
2. What are the different types of credit?
3. How is credit evaluated?
4. What are financial documents?
Step 1: Bell Ringer:
· Students will complete the Know and the Want to Know columns of the KWL Chart Bell Ringer Activity.
Step 2: Show the Basics of Credit video segment.
· This video is seven minutes long.
· Be sure to utilize the Key Concepts for this segment of the lesson.
Step 3: Administer the Basics of Credit Check for Understanding.
· The check for understanding is a short review of the content presented in the segment.
Step 4: Students should complete the In the Know on Credit Reporting Activity.
· Students will use online resources to research questions regarding one of the three main credit reporting agencies.
Step 5: Exit Ticket:
· Students will complete the Learned column of the KWL Chart Bell Ringer Activity and then turn in the In the Know on Credit Reporting Activity.
Class 4
Class Overview:
Financial Responsibility Video Segment
Action Plan
Key Concepts
Financial Responsibility Check for Understanding
Financial Laws Timeline Project
Essential Questions:
1. What is financial responsibility?
2. What is included in financial contracts?
3. What are major financial laws?
Step 1: Bell Ringer:
· Have students brainstorm an answer to the first Essential Question, “what is financial responsibility”. Lead a class discussion over the responses.
Step 2: Show the Financial Responsibility video segment.
· This video is seven minutes long.
· Be sure to utilize the Key Concepts for this segment of the lesson.
Step 3: Administer the Financial Responsibility Check for Understanding.
· The check for understanding is a short review of the content presented in the segment.
Step 4: Students should begin the Financial Laws Timeline Project.
· Students will create a timeline of financial laws which congress has passed concerning financial institutions, consumer credit, currency or any laws dealing with finance and banking.
Step 5: Exit Ticket:
· Have students show their progress for the Financial Laws Timeline Project.
Class 5
Class Overview:
Action Plan
Financial Laws Timeline Project
Step 1: Students should complete the Financial Laws Timeline Project.
· Students will create a timeline of financial laws which congress has passed concerning financial institutions, consumer credit, currency or any laws dealing with finance and banking.
Step 2: Exit Ticket:
· Have students turn in the Financial Laws Timeline Project.
Class 6
Class Overview:
Action Plan
Key Concepts
Basic Finance Concepts Final Assessment
Federal Financial Agency Infographic Project
Step 1: Bell Ringer:
· Have students review their notes to prepare for the assessment.
Step 2: Administer the Basic Finance Concepts Final Assessment.
· The assessment is a comprehensive assessment covering material throughout the entire lesson.
Step 3: Students should begin the Federal Financial Agency Infographic Project.
· Students will create an infographic on a federal financial agency.
Step 4: Exit Ticket:
· Have students show their progress on the Federal Financial Agency Infographic Project.
Class 7
Class Overview:
Action Plan
Federal Financial Agency Infographic Project
Step 1: Bell Ringer:
· Have students brainstorm answers to the following question: “Which financial law has impacted our society most and why?”.
Step 2: Students should complete the Federal Financial Agency Infographic Project.
· Students will create an infographic on a federal financial agency.
Step 3: Exit Ticket:
· Have students turn in the Federal Financial Agency Infographic Project.
Class 8
Class Overview:
Action Plan
Purchasing Power Simulation Activity
Step 1: Bell Ringer:
· Turn and Talk: Have students turn to a partner and discuss the following prompt:
- How does inflation affect what an individual can buy with the same amount of money over time?
Step 2: Students should complete the Purchasing Power Simulation Activity.
· Students will reflect on the impact of inflation by comparing the cost of various goods over time and determining how a fixed budget should be used.
Step 3: Exit Ticket:
· Have students turn in the Purchasing Power Simulation Activity.
Activity Overview
Know Your Cash
Students will research a denomination of paper money to understand its features.
Accommodations:
After students complete one feature, review their work to ensure it is completed correctly.
Modifications:
Limit the sections students need to complete.
Extension:
Allow students to research more than one denomination of paper money.
Pros & Cons of Forms of Financial Exchange
Students will use online resources to research the pros and cons of different forms of financial exchange.
Accommodations:
After students complete the first form of financial exchange, review their work to ensure it is completed correctly.
Modifications:
Limit either the Pros or Cons section for students to complete.
Extension:
Students can compile their table into another output type, such as a paragraph summary.
In the Know on Credit Reporting
Students will use online resources to research questions regarding one of the three main credit reporting agencies.
Accommodations:
Allow students to answer the questions in small groups or together as a class.
Modifications:
Limit the number of questions students need to complete.
Extension:
Allow students to research two or more of the three main credit reporting agencies and compare the results.
Purchasing Power Simulation
Using their assigned decade to focus on, students will reflect on the impact of inflation by comparing the cost of various goods over time and determining how a fixed budget should be used. They will then research to identify the cost of various goods in current time and in the assigned decade. Then, students will use a fixed budget to purchase a list of goods and reflect on how inflation affects the same amount of money over time. This activity allows students to explore the idea of inflation by seeing what they can purchase with $50, depending on the decade.
Accommodations:
Allow students to work with a partner on this activity.
Modifications:
Provide the cost of each item according to the student’s decade.
Extension:
Students will create a timeline to highlight the cost of three selected goods over the last 100 to 200 years.
Project Overview
Financial Laws Timeline
Students will create a timeline of financial laws which congress has passed regarding financial institutions, consumer credit, currency or any laws dealing with finance and banking.
Accommodations:
Review the students' work after each completion of the first federal financial law to ensure the steps are completed correctly.
Modifications:
Limit the number of laws students must include in their timelines.
Extension:
Have students present their timelines to the class.
Federal Financial Agency Infographic
Students will create an infographic on a federal financial agency.
Accommodations:
Review the student's work after completing the first draft sketch to ensure the project is completed correctly.
Modifications:
Limit the information students must include on the infographic.
Extension:
Have students present their infographics to the class.
Career & Technical Student Organizations
BPA
Banking & Finance
Financial Math & Analysis Concepts-Open
Business Math Concepts – Open
Financial Literacy
FBLA
Banking & Financial Systems
Business Calculations
Business Financial Plan
Personal Finance
Career Connections
Using the Career Connections Activity allows students to explore careers associated with this lesson by viewing career interviews with various industry professionals. The career interviews are located on the Select Playlist drop down menu on the lesson page. See the Career Connections Activity for more details.
Wilfred Carter, Financial Advisor, Morgan Stanley Wealth Management
R. Anthony Darty, Financial Analyst, United Supermarkets
Jacque Garcia, Financial Planner, Mass Mutual Financial Group
TJ Hill, Credit Analyst, Plains Capital Bank
