Third-Fifth Grade
Money Matters
The basics of money, its manufacture and design, and an overview of supply and demand
Students learn the basics of money from who uses it and why, to its manufacture and design. A brief history of money and an overview of supply and demand are also included in this module.
Key Concepts
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Money is what we use to obtain the things we need. Money is our currency of exchange and comes in the form of coins and bills.
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Trading & Bartering is what people did before money existed. It is a way of getting something we need by trading it for something we have. For example, you could trade your apple for your friend's banana.
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Producers are people who make things that others need and want. For example, someone produced the pencil that you are using today.
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Consumers are people who use the things others produce. You are the consumer of the pencil you are using today. Supply is how much of something is available.
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Demand is how much of something people want.
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Supply & Demand work together. For example, if you have 3 hats and your friends want 2 of them the supply is 3 and the demand is 2. But it works the other way as well. Sometimes the demand is greater than the supply; meaning sometimes people want more of a product than what is available.
Session 1: What is Money?
Duration: 30 minutes
Objectives:
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To learn what people used before money
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To understand why people began using paper and coin currency
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To identify the basic components of a dollar bill
Downloadable materials (pdf)
Presenter outline
Classroom activities
Session 2: How We Use Money
Duration: 30 minutes
Objectives:
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To distinguish between the roles of producers and consumers
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To understand the influence of supply and demand
Downloadable materials (pdf)
Presenter outline
Classroom activities
Take home activities
Manage It
Distinguishing between needs and wants, and creating and sticking to a budget
Responsible money management is as easy as mastering two skills: distinguishing between needs and wants, and creating and sticking to a budget. Students learn both in this module as well as long-term financial goal-setting and prioritization of needs.
Key Concepts
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A Need is something that we must have in order to survive. Water, food, shelter and clothing are examples of needs.
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Want is something that we desire, but do not need in order to live. A new bicycle is an example of a want.
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A Goal is something specific that you work towards. For example, you might have a goal to get A grades in all of your classes this year.
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Budget is a plan for your money.
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Income is all of the money that you are given or earn. Gross Income is the amount of money your boss pays to you. Net Income is the amount of money that you receive after taxes have been taken.
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Taxes are the money that people pay to the government for public services such as roads, schools, police and fire departments.
Session 1: Do I Need That?
Duration: 30 minutes
Objectives:
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To differentiate, and prioritize between, needs and wants
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To create short-term and long-term financial goals
Downloadable materials (pdf)
Presenter outline
Classroom activities
Session 2: Planning for Your Money
Duration: 30 minutes
Objectives:
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To recognize the general aspects of a budget
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To relate income and expenses to daily living
Downloadable materials (pdf)
Presenter outline
Classroom activities
Take home activities
Get Banked
A brief history of money and an overview of supply and demand
Banks and Credit Unions are important tools when it comes to money management. In this module, students learn how to utilize these institutions and the many features they offer. This module also includes an overview of checking and savings accounts and a lesson in making deposits and withdrawals.
Key Concepts
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A Bank is a financial institution that provides accounts and services to help people manage their money. Banks are a for-profit business.
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A Credit Union is similar to a bank with accounts and services to help their members manage their money, but they are a non-profit organization.
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A Savings Account is a place to store the money that you want to save for something in the future. Most savings accounts earn interest.
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Interest is the fee to borrow money. If you borrow money you pay interest. If someone borrows money from you they pay interest.
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A Checking Account is a place to store the money that you use on a regular basis for things such as groceries, gas and bills.
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You Deposit money when you put it into your bank or credit union account.
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You Withdraw money when you take it out of your bank or credit union account.
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Account Balance is how much money you have in your account. It is very important to keep track of this.
Session 1: Keep it Safe
Duration: 30 minutes
Objectives:
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To distinguish between Banks and Credit Unions
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To differentiate between checking and savings accounts
Downloadable materials (pdf)
Presenter outline
Classroom activities
Session 2: Show Me the Money
Duration: 30 minutes
Objectives:
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To learn how to make deposits and withdrawals
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To understand the basics of balancing an account
Downloadable materials (pdf)
Presenter outline
Classroom activities
Take home activities
Smart Future
Keeping financial grades up (i.e. credit score) and the basics of investing and the power of interest
Just like school grades, everybody has a financial grade - their credit score. In this module students learn how to keep their (financial) grades up and how having high marks can increase opportunities and decrease overall expenses. Students also learn the basics of investing and the power of interest.
Key Concepts
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A Credit Score is your financial report card, but instead of letters it consists of numbers (300-850). Instead of measuring how well you do in school, it measures how well you do at paying back money you borrow and how well you manage your money. If you pay your bills on time and do not borrow more than you can pay back you will have a good credit score.
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A Debit Card looks like a credit card, but it actually accesses your own money. If you use your debit card the money is taken right out of your checking account.
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A Credit Card allows you to borrow money from the bank or lending institution whenever you want, but you have to pay it back. If you don't pay it back fast you will be charged extra money we call interest. The interest rate you are charged per year is called Annual Percentage Rate (APR). With a credit card you have a limit as to how much you can spend.
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A Loan is when you borrow money from a bank, credit union or other financial institution. Loans are usually used for larger purchases such as college, a car, or a house. With a loan you must pay it back within a certain time and pay a certain interest rate. You should know what the interest rate and the terms (how long you have to pay it back) are before getting the loan.
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Interest is the fee to borrow money. If you borrow money you pay interest as with a credit card or loan. If someone borrows money from you they pay interest. This is similar to the interest you receive on your savings account. You are essentially lending your money to the bank to use for other loans and they, in return, pay you interest.
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Compounding Interest can work for you or against you. Compounding interest is when interest grows on interest. For example, you put $100 into an investment that earns 10% interest per year. $100 x 10% = $110. At the end of the first year you have $110. But in year 2 you will earn 10% on the entire $110 (not just the original $100). $110 x 10% = $121.
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The Rule of 72 shows you have long it will take for your investment to double. Let us say that you saved $1,000 to invest. You invest this money in an account that pays you 8% interest. Here is how you calculate the Rule of 72: 72 ÷ 8 = 9 years. That means that your $1,000 will double every 9 years.
Session 1: Can I Borrow That?
Duration: 30 minutes
Objectives:
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To recognize the importance of a credit score and how to obtain a strong score
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To understand how a credit card works and how to use one responsibly
Downloadable materials (pdf)
Presenter outline
Classroom activities
Session 2: Put Your Money to Work
Duration: 30 minutes
Objectives:
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To understand compound interest
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To calculate interest on investments using the Rule of 72
Downloadable materials (pdf)