Learning to Give, Philanthropy education resources that teach giving and civic engagement

Spend, Save, Invest, or Donate (2nd grade)
Lesson 1
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Lesson
Handouts
Academic Standards
Philanthropy Framework

Purpose:

This lesson will introduce the basic personal finance terms spend, save, invest and donate in the context of making economic decisions or choices with money. The important economic concepts of scarcity and opportunity cost, plus the concepts of philanthropy and common good, will be taught and reinforced through the discussion of Sam’s choices in Sam and the Lucky Money. Reasons why people invest and donate will also be explored. Younger students will discuss, sing and perform the song “You Can Bank on Me.”

Teacher Note: This lesson offers an activity journal for students (see Attachment Five). Copy and staple or bind in some way for student use during all the lessons. If reproducing this is not appropriate or possible for each of your students, selected pages may be used independently during the unit

Duration:

Grades 2 & 3—Two 45-50 Minute Class Periods
Grades 4 & 5—Three 45-50 Minute Class Periods

Objectives:

The learner will:

  • define philanthropy (philanthropist) as giving time, talent, or treasure, and taking action for the common good.
  • describe the concepts of: wants, needs, resources, scarcity, opportunity cost.
  • define the vocabulary words spend, save, invest, and donate.
  • sing the song “You Can Bank on Me.” (younger learners)
  • brainstorm motivations for giving, and options for donating.
  • describe choices one can make with money.

Service Experience:

Although this lesson contains a service project example, decisions about service plans and implementation should be made by students, as age appropriate.
Learn more about the stages of service-learning.


Materials:

  • Chart paper and markers
  • Overhead projector transparency or teacher created classroom poster of lyrics for the song “You Can Bank on Me”  (Attachment One)
  • Personal Finance Definitions: Save, Invest, Spend, Donate  (Attachment Two)
  • Economics and Money Visual Organizer (Attachment Three)
  • Letter to Families (Attachment Four)
  • A copy of the book Sam and the Lucky Money by Karen Chin (see Bibliographical References).
  • A large jar or clear container for collecting change.
  • Activity Journals (Attachment Five) available for download.
     
Handout 1
You Can Bank on Me
Handout 2
Personal Finance Definitions
Handout 3
Spend, Save, Invest or Donate
Handout 4
Letter to Families
Handout 5
Activity Journal

Instructional Procedure(s):

Day One:

Anticipatory Set:
Display a $20 bill and ask the students what they would do with $20 if it were given to them. Ask students if they ever receive gifts of money for holidays or special occasions. Discuss with students what they usually do with their own money. Tell the students that today they are going to learn about some different things people can do with their money.

Teacher note: Review student and expanded teacher definitions of save, spend, invest, and donate prior to class (Attachment Two) and use as needed in the following class discussion.

  • Tell the students that there are four different things they can do with their money. They can spend it, save it, invest it, or donate it.  On four separate pieces of chart paper, list the following words as headings: spend, save, invest, and donate. Lead a class discussion generating ideas to define these vocabulary words.
    1. What does it mean to spend money?
    2. How do people save money?
    3. What does it mean to donate money?
    4. What does it mean to invest money?
  • List the children’s responses on the appropriate charts. Add to their responses as needed to clarify the definitions.

  • Display the four charts in the following manner in the front of the classroom:

 

  • Use the charts visual positions to explain that all donating is a form of (a subset of) spending, and likewise, all investing is a form of (subset of) saving. To donate money, money must be spent, to invest money, money must first be saved. In other words, all donating is a form of spending, since you are indeed spending money on something, but not all spending is donating, since you can always spend money on your own wants and needs. In a similar fashion, all investing is a form of saving, since the money had to be set aside or saved in the first place to be invested in something. Some kinds of saving, such as simply keeping money in a container or under a mattress, does not grow in value or does not gain interest. Those funds are saved, but not invested, and are usually saved for short-term goals.

  • Tell the class that you are going to teach them a new word and you want to see if they can pronounce it correctly. Tell them it is related to the word “donate". Philanthropy is giving time, talent, or treasure and taking action for the common good. Write that definition on a new piece of chart paper or the display area. Practice pronouncing the word with the class. Talk about what the students’ treasures, time and talents might be (money, candy, a special toy, time to offer help to someone, talents they might use to help someone in need, etc.) and how adults donate treasure for various philanthropic organizations or charities.

  • For younger students, proceed to the discussion of wants and needs below.

  • For older students, as appropriate, use the Economics and Money Visual Organizer (Attachment Three) with the overhead projector for the following discussion about wants, needs, and resources. Reveal only the top parts of the transparency relating to Wants and Resources and cover the remaining portions of the visual organizer and for now. (The rest of the visual organizer will be used on Day Two with the Sam and the Lucky Money discussion.)

  • Discuss wants and needs with students. Wants are desires for goods and services we would like to have. Many wants that people have, including of course the numerous wants that younger students have, are not really necessary to have for survival. People have unlimited wants. They never seem to be satisfied. They always want more.

  • Confirm this with students by naming desired goods and services for students their age and asking who wants them.

  • Needs are a special kind of want, and refer to things we must have or “need” to survive, such as food, water, shelter, etc.  Discuss with students some concrete examples of wants and needs in their lives. 

Teacher Note: Most economists do not distinguish between wants and needs because what some people call “needs” can vary greatly by individual and might simply be a wants for others. Instead of debating whether one person’s need is just another person’s want, economists avoid the argument by lumping needs into the general category of wants. The important thing for students to learn here is that wants in general are unlimited, even though individuals can certainly limit their own wants voluntarily and might say they only have a limited number of needs and wants.

  • Discuss with students how resources are limited in the world. There is a limit to everything in the world. We simply cannot have everything we want and this defines the problem of scarcity, which everyone must face.

  • Write the word scarcity on the board. Ask students to give examples of times in their lives when they “can’t have everything they want” or “can’t have it all”. Explain that the condition or problem of scarcity forces people everywhere to have to choose, or make a choice, between one thing and another. Scarcity is inescapable and makes life interesting because of the choices we can make. Ask students:

What prevents you from having everything that you want?
Is it possible to ever be fully satisfy your wants?
What happens when your last “want” is satisfied?

  • Referring back to the word philanthropy. Explain to students that the time, talent, and treasure voluntarily given for the common good is an excellent  example of scarcity at work. At the heart of philanthropy is an economic choice that an individual makes. It is a choice of what to do with these limited  resources. (Time, talent, treasure-there is a limit as to how many of these resources are available to give!  Someone chooses to spend some of their limited resources for the common good.)

  • Explain that a when a person chooses to spend, they have to make choices,  because of the condition of scarcity. They can choose to spend money on goods and services to satisfy their own wants and needs, or they can choose to spend, or donate to a special cause or charity.Explain to the class that in the near future they will help select a charity to receive donations from the class.

  • Brainstorm with students and build a list of some local examples of philanthropy or of charity. (Examples could include various school fund drives, programs for hungry and homeless people, arts events, church programs, local parks, environmental groups, etc.)

  • Mention to students that in the letter to their families, (Attachment Four), families are asked to suggest a charity that is important to their family for the class to consider before making the decision in Lesson 3 about which charity will receive funds raised by the class.

  • Discuss with the class who benefits from philanthropy. Is it the individual only?  What benefits do the school, the neighborhood, the community receive? Does our nation benefit? How about the world?

  • Write the definition of common good, “working together for the benefit of everyone” on the chart or board.  Ask students who has a responsibility for the common good.

     
  • Explain that paying taxes is one way to meet that responsibility. Give examples of taxes (sales, gasoline, income, business, property, etc.) to make the point

  • Besides paying taxes for local, state and national government to advance our common good, explain that philanthropy is another important way we can choose to contribute to the common good. Philanthropy is a choice, it is also a valuable freedom to be able to spend or donate time, talent, or treasure to improve the common good.

  • For older students, explain that common good is an important democratic principle. Many people believe in the importance of voluntarily giving of time, talent, and treasure to work together to promote the general betterment of everyone in society. Explain that the United States was founded with this principle in mind.

  • For second graders, teach the children the lyrics for the song “You Can Bank on Me.” (See Attachment One.) Make sure the students understand the concepts in the lyrics.

  • For older students, review and rehearse the words and definitions. Suggestions include writing all words on the board or overhead and calling on volunteers to do one or more of the following:

1. supply missing words from teacher prompts
2. use a particular term properly in a sentence
3. compare the meanings of certain terms   
4. pick one word from the list and link it in some way to another
5. reflect on how the vocabulary and concepts in the lesson could impact their attitudes and behavior regarding money 

Day Two: (Grades 4 & 5)

Purpose:
Students learn how to multiply and calculate part of a number, given the percentage rate of interest and the number itself. Students will learn that interest on invested savings can easily be calculated and added to the principal.

Teacher note: This is an opportune time teach more about decimals, percentages, and interest, and practice some computations common in later elementary (grades 4-5) math curriculum. Both multiplying by hand and calculators can be used.

  • Before discussing the concept of “invest,” introduce the concept of a goal to the students.  Ask students if they know what a goal is.  Explain that a goal is something you plan to do in the future, either in the short-term (something soon, usually less than a year) or for the long-term (usually longer than a year away).  Give examples of goals and ask students if they or their families have any goals (they do not have to be monetary).

  • Help students relate goals to goods or services for which they or their family have saved money.  Explain that if you are saving money to buy goods or services for the future, you have a goal.  Ask students to identify some short-term and long-term saving goals they or their families might have.

  • Long-run goals that involve saving money for future goods and services could include buying a house, a car, a big family trip, paying for college, or saving for retirement.  Tell students that when saving for a long-run goal it is very common to invest savings because there is more time for it to grow in value until it will be needed. 

  • Display the “invest” bank section of the Learning to Give four-part bank.  Explain that when money is invested money wisely, it grows in value.  It grows by receiving additional money payments (interest) from other groups, such as other individuals, banks, companies, governments, etc., who pay for the privilege of being able to use the money invested with them.  So, the money payment one receives over and above what they originally loaned out (invested) is called interest.  It is like being paid “rent” for being able to use the money.  Banks and credit unions will pay interest to students who loan them some money to use for a specified time period. 

 
Teacher note: To extend this learning further, a phone call or stop at a local bank or credit union may result in brochures that describe simple savings accounts that students and families can use for simple investing. 

  • “Interest is interesting” because it can go two ways.  It might also have to be paid to someone else for the privilege of borrowing their money.  Consumers (people who consume goods and services) can also be borrowers and have to pay interest, rather than receive interest. This happens when borrowers pay interest (money payment or fee) to lenders, such as other individuals, bank and credit card companies, credit unions, or other sources.

  • So, interest is simply the money payment for being able to use someone else’s money. Interest is either “payments spent for the use of borrowed money or payments received (income) for invested money”, depending on which side of the transaction one is on.  When one saves and then invests money, it is the money received.  When one borrows, it is the additional money one spends.

Teacher Note: If teaching the concepts of principal, interest, percentage, converting percents to decimals, computations of interest earned, and compounding interest are not appropriate for your students, please omit part or all of the following instructional procedures and proceed to the “closing” procedures.  Compounding of interest may or may not be discussed here, depending on the readiness of your students.

  • Explain to students:
    1. The original amount of money they have set aside to invest, upon which interest will be calculated, is called the principal. If the student were borrowing money, the original amount borrowed would also be called the principal.
    2. In the following example it is assumed they will be gaining interest at the interest rate (expressed as a percentage of the principal) of 10% per year on the “invested” part of their savings.
    3. Percentage means parts per hundred, so 10% would be .10, or ten hundredths.Explain that any percentage can be changed to a decimal by moving the decimal point two places to the left. Show examples of how 6% becomes .06 after adding a zero in the decimal place for tenths and how 50% becomes .50 quite easily by moving two places to the left of the zero and installing a decimal point in front of the number five. In the same vein, show students that 150% would translate into a decimal of 1.50. Check for understanding by quizzing students using a variety of examples.
  • On the board show the computation of 10% annual interest on a $1000 amount invested. Use multiplication operations to show the $1000 principal multiplied by (.10) resulting in $100 as the amount of interest. Ask students to make the same calculation on paper and with a calculator. The $100 interest, in this case, is a money payment being paid to the investor, a benefit, because they invested some of their savings in an interest bearing account and are receiving a return on it. Also, show students that if they borrowed $1000 and paid 10% interest, that the money payment would be going in the opposite direction and would be a cost for them to be able to borrow.

  • Ask students to calculate various interest rate percentages to see if they properly convert percents to decimals and correctly multiply to obtain the interest amount. Explain that a sound knowledge of mathematics makes it possible to make better economic and personal financial decisions. This can greatly impact how much money they have to spend, donate, save, or invest.

  • As review, ask students to name the four choices a person has with the interest (money) they might earn:
    1. spend the interest earned now on a good or service,
    2. spend by donating it to a charity for the common good,
    3. save it for the short-term without gaining interest,
    4. save the interest and re-invest the new interest earned by adding it to the original principal. (or re-invest in something else where interest is earned!) If interest is now added to the principal, ask students what will happen to the interest earned after the next time period if the interest rate remains the same. (Interest earned will be higher because the principal has increased due to interest being added to it.)
  • Ask students to brainstorm places where people can invest money to increase its value for spending, saving, investing, or donating.  Record their responses on chart paper or the board.

  • Hand out appropriate saving and investing information from local banks, credit unions, United States government, etc. and check for current interest rates and particulars for basic statement savings accounts, Certificates of Deposit (CD’s) of various lengths, and United States Savings Bonds.

  • In closing, use the four part bank as a model to review and check for understanding of spend, donate, save, invest, and the terms interest, percentage, and principal.

 
Teacher Note:  Excellent lessons for Grades K-12 on the concepts of investing, interest, compounding interest, etc. are available through the National Council on Economic Education sponsored web site at http://www.econedlink.org/lessons/.


Day Two: Grades 2 & 3
Day Three: Grades 4 & 5

Anticipatory Set:
Tell the students, “Yesterday we learned about the words spend, save, invest, and donate. Today we are going to talk about why anyone would choose to donate their money, time or talents to someone else.”

  • Review the definitions on the chart paper from yesterday.


Teacher Note: This is a book about a young boy going shopping in Chinatown with his mom. He receives a gift of “lucky money” which he can spend any way he chooses. Sam soon finds he can’t always get everything he wants, so, like everyone, he faces the problem of scarcity, he has to make choices with what to do with a limited resource, in this case, money. Sam’s surprise encounter with a needy person sets the stage for our main topic today: donate.  It would be helpful to share with students that everyone who spends, saves, invests, or donates has to deal with the scarcity problem, since people always seem to want more than they can get. Sometimes, such as the case with the poor man in the story, they cannot even get what they need. 
Use the Economics and Money Visual Organizer (Attachment Three) again to facilitate the following class discussion, reviewing wants and resources from the previous day, revealing new portions (scarcity, opportunity cost, choice, spend, save, donate, and invest) of the visual organizer as the discussion unfolds.

  • Before beginning the discussion of the book, briefly review the essential economics concept of scarcity, “the condition of not being able to have all of the goods and services that you want.” Add this definition to the chart paper of definitions from yesterday.

  • Remind students that because of scarcity, we are forced to make choices. Every choice we make has an opportunity cost, which is the next best alternative given up when the choice is made. Make sure students understand that the “cost” part of opportunity cost does not necessarily refer to money costs given up, but to all possible things we may give up when we choose one thing over another, like time, talents, other resources, or lost opportunities to do other things. This is an important distinction for students to understand. Ask students to give examples of various opportunity costs they have experienced with choices they have made.

  • Read aloud the book Sam and the Lucky Money by Karen Chin (see Bibliographical References). Ask students to listen for examples of wants and needs, the condition of scarcity, choices, and opportunity costs.

  • Ask the students to recall and/or discuss:
    1. What are some economic wants that Sam had? What were some of his needs? Were there any other needs in the story?
    2. Why is it important for Sam to learn the difference between needs and our wants (to be able to manage our money wisely)
    3. What choices did Sam have for spending his money?
    4. What was the scarcity problem in the story that made Sam angry and disappointed?
    5. Have the students ever felt the way Sam did in the story when he was angry that he didn’t have more money?
    6. What was the scarcity problem faced by the needy person in the story?
    7. What are some possible reasons why the man was so poor that he did not have shoes?
    8. How did Sam finally spend his money?
    9. Have students ever felt like donating their money to someone who needed it more?
    10. Who, in life, has to face scarcity situations with their money? Do rich people?
    11. The last sentence in the story says: “As they headed home for more New Year’s celebration, Sam knew he was the lucky one.” Ask students to reflect on what this means.
    12. Finally, refer to the “donate” chart on the board and ask students how the scarcity problem we all face relates to the word “donate.”
  • Brainstorm on the “donate” chart, if there is room, different people, organizations, and/or charitable groups who could make good use of donations.

  • Ask the children to reflect quietly about why someone might like to donate time, treasure or talent. Ask them to raise their hands and tell the class possible reasons to donate. Talk about the benefits when someone donates. Talk about the costs of donating and remind students that every choice they make has an opportunity cost.

  • Ask the students to raise their hands if they would like to raise some money to donate. Inform students they will decide later in the week to whom they will donate their money.

  • Show the students the jar for collecting money. Tell them that they may bring in coins from home. If students are able to bring in coins, it will add up to enough money to donate to a charity of their choice. Talk with the students about where the money might come from. They are not to solicit money—it should come from them (and their families). Students could offer to do jobs to earn money to donate.

Assessment:

Teacher observation of student responses during the group discussions.
A teacher created vocabulary quiz,if desired.

School/Home Connection:

Interactive Parent/Student Homework: 
Send home a letter introducing the unit and explaining that the class will be raising money for a donation to a charitable cause.  Encourage the students to get small change from their own savings banks and earn money doing extra jobs around the house.  Encourage families to suggest a charity that the class might consider. (See Attachment Four: Letter to Families.

Cross-Curriculum Extensions:

Show the video of the book “Sam and the Lucky Money” to give the students another perspective of the story.

Create a display by having students draw or cut pictures from magazines. Display the pictures under the appropriate heading: Wants or Needs.

Divide a display area into four sections: Spend, Save, Donate, Invest.  Ask each student to create a card that describes and illustrates each vocabulary word and post them in the appropriate section of the board.

Give students an “allowance” of play money each day.  Offer them options for spending it on teacher provided extra school supplies, snacks, privileges, etc.  Tell the students that you will match the amount of any ”allowance” they chose to donate with a contribution of your own to the class collection for a charity.  At the end of each day ask the students to choose how to use the remainder of the allowance from that day--save it or donate it.  At the end of the unit, match the amount of money the students choose to donate with a teacher contribution to the charity chosen for the coin collection donation by the students.  Parents and other staff members may also be asked to join this challenge.

Bibliographical References:

  • Chin, Karen.Sam and the Lucky Money.Lee and Low Books (reprint edition), 1997.ISBN: 1880000539

Lesson Developed By:

John Noling
Curriculum Consultant
Learning to Give

Handouts:

Handout 1Print Handout 1

You Can Bank on Me

Sing to the tune of “Do you know the Muffin Man?”
Emphasize underlined words for children to practice and learn.


Did you know you can bank on me, bank on me, bank on me?
Oh, did you know you can bank on me?
It’s in the bank.

Did you know you could bank on me, bank on me, bank on me?
Oh, did you know you could bank on me?
It’s there for you to spend.

Did you know you could bank on me, bank on me, bank on me?
Oh, did you know you could bank on me?
I’ll help you save.

Did you know you can bank on me, bank on me, bank on me?
Oh, did you know you can bank on me?
I’ll help you invest.

Did you know you can bank on me, bank on me, bank on me?
Oh, did you know you can practice philanthropy?
You can donate for the common good!

Handout 2Print Handout 2

Personal Finance Definitions

Following are some definitions for student and teacher reference:

Save: 

a. student definition: keep or put aside money for future wants or needs.
b. teacher expanded definition: to put by as a store or reserve (such as part of an allowance each week); to accumulate or put aside for a particular purpose or occasion (a favorite shirt for a special day or some candy to share with a friend). 

Invest:    

a. student definition: save money in a way that increases its value for future donating or spending. 
b. teacher expanded definition: invest often refers to that part of what you save that is loaned out to others and receives interest (additional money payments paid to you besides payment for the amount you loaned out).  Any kind of property can also be an investment if it grows in value. 
Saving becomes investing when the resource (money, property, human labor and talent, gifts of nature) is directed to a place where it will increase in value.  Students should know that in order to invest a resource like money, you must necessarily have saved it first.  Even money earning very low interest in a standard bank savings account is technically invested.  Invest is a subset of save.

Spend: 

a. student definition: use money for something you want or need.
b. expanded teacher definition: to pay out, trade money for goods or services, use money freely.  Spending includes paying taxes, donating to charity, and spending on other wants and needs.

Donate: 

a. student definition: give time, talent, or treasure with no expectation of something in return.
b. expanded teacher definition: to voluntarily make a free gift or a grant of; contribute or give esp. to a  charity or charitable cause (example: money for a soup kitchen or food pantry) or toward a public-service institution (example: someone donates a site for a park).  Donate is a subset of spend.
 

Handout 3Print Handout 3

Spend, Save, Invest or Donate

Handout 4Print Handout 4

Letter to Families

Dear Families,

We have started a financial literacy unit called “Money Smart Children.”  This unit encourages students to think about choices people make with their money.  We will learn the differences between spending, saving, investing, and donating.  The concept of philanthropy (giving or sharing time, talent or treasure for the common good) will be introduced.
One of our projects involves collecting small change to donate to a special cause.  Children should be encouraged to make a choice with their own money. They may use some money of their own or earn some money by doing some extra jobs. This is not meant to be a major donation, but something from the hearts and generosity of the students.  Please do not send your child door to door.  Spend time with your child talking about where they can get some small change for this project.  The money that our class gathers until the date of _____________ will be collected in one large classroom bank.  We will sort and count the money, and the class will use an economic decision-making model to come to a consensus as to how it will be donated. Please talk to your child about your favorite charity.  Clip off and return the form at the bottom of this letter sharing a charity that is important to your family

At the end of this unit, each child will bring home a four-part bank, a working personal budget to reinforce these economic, civic, and philanthropic concepts, and a Parent Guide for teaching financial literacy.

To reinforce learning, please use the following vocabulary words and concepts with your child:

Please use the following vocabulary words and concepts with your child:

Philanthropy:  giving or sharing of time, talent or treasure for the common good.
Budget:  a plan for keeping track of money income and expenditures
Spend:  using money for immediate needs or wants.
Save:  keeping for future needs or wants.
Invest:  saving money to increases its value in the long-term, often by earning interest
Donate:  to make a gift of money, time or talent, to be philanthropic.
Community:  a group of people that work, live or gather together for a purpose.
Consensus:  when a group comes to an agreement.
Charity:  Money or help given to aid those in need or for the common good.

Thank you for your support!

 

--------Please detach here and send completed form tomorrow---------

 

A Charity Important to Our Family

Our family would suggest a possible donation to _______________________________________________________

because _____________________________________________________________________________________

 ____________________________________________________________________________________________

Signed:  ______________________________________________________________________________________


Handout 5Print Handout 5

Activity Journal

Money Smart Children!

Dear Families,


We have just completed a unit called “Money Smart Children.” This unit encourages students to think about choices people make with their money.  We learned the differences between spending, saving, investing, and donating, as well as the concept of philanthropy (giving or sharing time, talent or treasure for the common good).

During the unit we collected money to donate to a charity.  The students themselves, using an economic decision-making model to come to a consensus as to how it was donated. 

Along with this student booklet, the children are bringing home a four-part bank, a working personal budget to reinforce economic, civic, and philanthropic concepts, and a Parent Guide for teaching financial literacy. 

Please look over this booklet with your child and affirm what they have learned as well as their efforts in the future to use their new “money smarts.”

 

Personal Finance Definitions


Save:  keep or put aside money for future wants or needs.

Invest:  save money in a way that increases its value for future donating or spending.

Spend:  use money for something you want or need.

Donate:  give time, talent or treasure with no expectation of something in return.

 

Draw a picture or icon to illustrate these concepts:

 

Spend

 

 

 

 

 

 

 

 

Donate

 

 

 

 

 

 

 

 

Save

 

 

 

 

 

 

 

 

Invest

 

 

 

 

 

 

 

 

Philanthropy is giving time, talent or treasure, and taking action for the common good.

I can give my time by   _________________________________________________________________________________

__________________________________________________________________________________________________

I can give my talent by  _________________________________________________________________________________

__________________________________________________________________________________________________

I can give my treasure by  ______________________________________________________________________________

__________________________________________________________________________________________________

 

Wants and Needs

Wants are desires for goods and services we would like to have.
Needs are a special kind of want, and refer to things we must have or “need” to survive, such as food, water and shelter. 

Directions:  Cut pictures out of magazines that are examples of “wants” and “needs.”

Wants

Needs

 

Common Good

Common Good:  working together for the benefit of everyone. 

Citizens have rights and they also have responsibilities for the benefit of all.

Citizen Rights

All Americans have the right to:

  • Go to a good school
  • Vote
  • Freedom of speech
  • Trial by jury
  • Meet when and where you want
  • Go to the church of your choice
  • Live where you want and own what you want
  • You may keep people from searching your home

Citizen Responsibilities

As American citizens, we have the following responsibilities:

  • Obey laws
  • Respect the rights and property of others
  • Help police
  • Serve on a jury
  • Pay taxes
  • Vote
  • Keep informed on what is going on around you
  • Help change things that are not good
  • Help save America’s natural resources

 

Opportunity Cost

Opportunity Cost is caused by scarcity because we are forced to make choices.  Every choice that we make has an opportunity cost.

Directions:  On the table below write a choice in the first column and then in the second column write the opportunity cost.

         Choice        

Opportunity Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sam and the Lucky Money
by Karen Chin

Directions:  During the reading of Sam and the Lucky Money you were asked to listen for examples of wants and needs, the condition of scarcity, choices and opportunity costs. 

Please read and answer the following comprehension questions:

  1. What were some economic wants that Sam had? 
  2. What were some of his needs? 
  3. Why is it important for Sam to learn the difference between needs and wants? 
  4. What choices did Sam have for spending his money? 
  5. What was the scarcity problem in the story that made Sam angry and disappointed? 
  6. What was the scarcity problem faced by the needy person in the story? 
  7. How did Sam finally spend his money?
  8. The last sentence in the story says:  “As they headed home for more New Year’s celebration, Sam knew he was the lucky one.”  What do you think this means? 

 

 

Donating

 I think that donating is important because:

 

 

There are many benefits to donating.  Some of them are:

 


There are also opportunity costs to donating.  Some of them are:

 

You Can Bank on Me
Sing to the tune of “Do you know the Muffin Man?


Did you know you can bank on me, bank on me, bank on me?
Oh, did you know you can bank on me?
It’s in the bank.

Did you know you could bank on me, bank on me, bank on me?
Oh, did you know you could bank on me?
It’s there for you to spend.

Did you know you could bank on me, bank on me, bank on me?
Oh, did you know you could bank on me?
I’ll help you save.

Did you know you can bank on me, bank on me, bank on me?
Oh, did you know you could bank on me?
I’ll help you invest.

Did you know you can bank on me, bank on me, bank on me?
Oh, did you know you can practice philanthropy?
You can donate for the common good!

 

Incentives

Incentives are positive or negative factors that motivate or influence people.  Positive incentives are like rewards that motivate you to do something.  Negative incentives are like penalties that motivate or persuade you to not do something.

Directions:  On the chart below list as many positive (+) and negative (-) incentives as you can think of.

+

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alexander Who Used to Be Rich Last Sunday

by Judith Viorst

Directions:  During the reading of Alexander Who Used to Be Rich Last Sunday you were asked to listen for positive or negative influences that affected the way that Alexander spent his money.  Please read and answer the following comprehension questions.

  1. What choices did Alexander have with his income? 
  2. What is the scarcity problem in this story? 
  3. What resource is scarce for Alexander? 
  4. Give one example of an unwise decision Alexander made with his money. 
  5. In the story we hear Alexander say “Saving is hard.”  Do you think this is true?  Why or why not? 
  6. Why do you think Alexander didn’t choose to donate any of his money? 

 

Goals

Goals help us achieve something in the future.  There are two basic kinds of goals, short-term run and long-term.

Short-term goals are for something people plan to buy soon, in less than one year.

Long-term goals are for something people plan to buy in the future, for example a car or a college education.

 

A Chair for My Mother
By Vera Williams

Directions: During the reading of A Chair for My Mother you were asked to listen for examples of scarcity, opportunity cost, incentives, goals and philanthropy.  Please read and answer the following questions:

  1. What is the scarcity problem in the story?
  2. What are some of the things that are scarce for this family?
  3. By choosing to save, what do you think might be a possible opportunity cost for Rosa?
    For her mother?
    For her grandmother?
  4. What jobs did Rosa do? What job did her mama do?
  5. How did this family use this new, special chair?
  6. What were some positive incentives that might have motivated Rosa, her mother, and her grandmother to keep saving?
  7. Do you think saving for the chair was a short-term goal or a long-term goal?
  8. What so you think Rosa will do the next time she gets money?
  9. What do you think the family will do with the empty jar?
  10. Where in the story did you see philanthropy?

 

Charity

Charity is money or other help given to aid those individuals or groups who are in need.

 

Economic Decision-Making Model

Action Ideas or Choices

                        What's Important to Us?                       

 

 

 

  

 

  

 

  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EconAround Philanthropy Bingo

Vocabulary List

Benefits – Something good that happens to someone.

Budget – A spending plan that helps people keep track of their money.

Charity – Money or other help given to aid people in need.

Choice – When someone must make a decision between two or more things.

Common Good – Working together for the benefit of everyone.

Consumer – People who buy or use goods or services.

Cost – The price of a good or service.

Donate – Give time, talent or treasure with no expectation of something in return.

Goals – Helps us achieve something in the future.

Goods – Objects that people can have to satisfy their wants.

Incentives – Positive or negative factors that motivate or influence people.

Income – Money that you take in.

Interest – The money earned on money saved.

Invest – Save money in a way that increases its value for future donating or spending.

Money – What people use to buy goods or services.

Natural Resources – Things from nature that are used to produce goods or services.

Needs – Things we must have or “need” to survive, such as food, water and shelter. 

Opportunity Cost – When choices are made, the cost of the next best thing given up.

Philanthropy – Giving of time, talent or treasure for the common good.

Price – The amount a buyer pays and the seller receives for goods and services.

Producer – People who make or sell goods or provide services.

Save – Keep or put aside money for future wants or needs.

Scarcity – When we cannot have everything we want because all resources are limited.

Services – Actions or work that a person does for someone else to satisfy their wants.

Spend – Use money for something you want or need.

Trade – To exchange goods and services with people for other goods and services.

Volunteer – A person who gives or donates their time without pay.

Wants – Desires for goods and services we would like to have.

 

Data Table

Tite: ___________________________________

Name of coin or bill

Number of coins or bills counted

Amount of Money

Penny ($0.01)

   

Nickel ($0.05)

   

Dime ($0.10)

   

Quarter ($0.25)

   

Half Dollar ($0.50)

   

Dollar coins ($1.00)

   

Bills of any kind
in dollars

   

 

 

 

 

Budget Vocabulary

Income is money that you take in.

Budget is a time-based spending plan that helps people keep track of money and reach financial goals.

 

My Budget

Create a budget for the next month based on your expected income and expenses.

Income

Allowance, gifts, other earnings

                $                          

Expenses

Save, spend, donate, invest

                   $                   

       
       
         
       
       
       $
       $
       $
 Totals    $

 

Discussion questions: 

  1. Why should your income (money you get) and expenses (money you spend) balance? 
  2. If your expenditures are greater than your income, what are your choices?
  3. If your expenditures are less than your income, what are your choices?
  4. Why is it important to budget money?

 

A Note to Families

Our class been learning about different ways to use money: spending for immediate wants and needs; saving for something big or special in the short-term (in the coming weeks and months); investing, a special kind of saving for the long-term (one year or more); and donating to a cause or charity.  This bank your child brings home will help your child plan for these four important money decisions.  

As your child receives or earns money for any purpose in the coming weeks, such as allowance, gifts, earnings, etc., he or she can place coins in appropriate parts of the bank to plan for its use.  If appropriate, please work with your child to determine some ways they can earn money in order to have some income to use with the bank.

Help your child make appropriate plans, or refine the plan already made, for the money he or she earns or receives.  Any financial plan, or budget, is just that, a plan.  Please feel free to review, discuss and adjust the budget your child has brought home.  Budgets are meant to be revised with careful thought - this is a good thing!

Thank you so much for helping to reinforce the concepts of smart money choices with your child.  The objective is for your child to keep in mind where their money comes from, where it is meant to go, and to make it happen that way!  Learning how to budget with real life situations, starting small, and being successful with their first budget, is an important first step in financial literacy. 

Just a word about donating.  The students are excited about the importance of philanthropy: giving time, talent, or treasure for the common good.  Using
“treasure” in the donate part of the bank is just one of many ways they can give or share with others.  By choosing a charity or cause with your child and making a contribution, however small, a valuable life-long lesson on the importance of giving can be learned. 

Thank you once again for your interest and participation with your child in our “Money Smart Children” unit.

Philanthropy Framework:

Comments

Kathy, League Teacher – Romulus, MI5/31/2007 7:07:07 PM

(The positive aspects of this lesson is) teaching the difference between selfish and selfless using the book, Sam and the Lucky Money was a concept the students could quickily understand. We made connections to their lives about times they were selfless and selfish.

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