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A mix of economic example lesson plans and activities to use in math instruction. Useful ideas for ESL to ASE. Best practices in math and personal financial literacy. Lessons include student activities and background information on economic or personal finance content and how it relates to mathematics. These activities have varied lesson delivery styles that reach a variety of learning styles. Students can apply their mathematics to real world situations. Money Math Matters: Life, Education, and Assessment Presented by: Michael Matos matosmichael2@gmail.com Albany Park Community Center – Chicago, Illinois COABE Conference 2015 in Denver, Colorado Friday, 4/24 1:45pm-3:00pm, L4 Capitol Ballroom 6
The Essential Question is designed to “hook” the learner, promote inquiry and engagement with the lesson, and allow students toexercise problem-solving abilities. It addresses a larger concept, does not have a right or wrong answer, and requires higher order thinking skills. Some Financial Literacy TeachingStrategies
KEY OPERATION WORDS For Solving Word Problems
Creating educational Activities with Excel, PowerPoint, and Word Excel – self checking Excel Spreadsheets completed with IF Functions, Conditional Formatting, screen shots, and Developer Tab options PowerPoint - screen shots, Developer Tab options, animations Word - screen shots, Developer Tab options
VOCABULARY Word Sort
Budget Scenarios Budget Decision Making
Values Valuesstrongly influence our spending habits. We don’t usually spend our money on things we do not feel are important. Typically, the more important somethingis, the more we are willing to spend on it.
Values Family Friends Work Honesty Self Reliance Independence Religion The beliefs and practices in your life that are very important to you.
Values, Wants and Needs To be Happy in Life, you must learn the difference between what you Want vs. What you Need
Scarcity “Scarcity is an economic principle stating that because of limited resources, an economic system cannot possibly produce all the goods and services that people want; therefore, choices must be made about how the limited resources will be used.” -Consumer Economics & Education, Glencoe, 2003
NEEDS vs WANTS • NEEDS • Essentials…the basics of life • Food • Clothing • Shelter
NEEDS vs WANTS WANTS Simply increase the quality of living
Learn to Like (Used to compare emotions of Shania Twain song, Ka-Ching) Learn to like what doesn't cost much. Learn to like reading, conversation, and music. Learn to like plain food, plain service and plain cooking. Learn to like fields, trees, brooks, hiking, rowing, climbing hills. Learn to like people, even thought some of them may be different, different from you. Learn to like work and enjoy the satisfaction of doing your job as well as it can be done. Learn to like the songs of birds, the companionship of a dog. Learn to like gardening, puttering around the house, and fixing things. Learn to like the sunrise and the sunset, the beating of the rain on the roof and windows, and the gentle fall of snow on a winter day. Learn to keep your wants simple and refuse to be controlled by the likes and dislikes of others. ~Lowell Bennion
TRUE/FALSE QUESTIONS ARE YOU HEAVY ON THE MUST-HAVES? 1. I worry about having enough money to cover my regular bills, like my electric bill. 2. It seems like most of my money goes to things I cannot control, like rent or car payments. 3. By the time I pay my bills, there is hardly anything left over. 4. The cost of living for just the basics - housing, car, insurance - seems way out of reach. 5. I only spend money on things I need, but there still is not enough. 6. Even though I never buy anything extravagant, I do not have anything in savings. 7. I cannot think of anything in my budget that I could really cut back on. If you marked true to more than one, you are probably heavy on the must haves.
TRUE/FALSE QUESTIONS DO YOU OVERSPEND ON WANTS? 1. When I go shopping, I am never quite sure how much I can afford to spend on things. 2. When I see something I really want, I just buy it, even if I do not have the money. 3. I never know where all the money goes. 4. I buy things, and then after I get them home I worry that I couldn't really afford them. 5. Worrying about money sometimes takes the pleasure out of outings that are supposed to be fun. 6. When holidays or birthdays come up, I am not sure how much I can afford to spend. 7. I probably spend too much on clothes, restaurant meals, and/or going out for fun. 8. I work hard, so I buy the things I deserve. If you marked true to more than one, you are probably overspending on wants.
Money Matters: Making Decisions, Making Money,Budgeting, Banking Services, Saving and Investing, Credit, Buying a Home, Cars and Loans, Consumer Awareness, Consumer Privacy, Advertising Decision Making
Basic Economic Principles People choose because of limited resources. People’s choices involve costs. People respond to incentives in predictable ways. People create economic systems that influence individual choices and incentives. People gain when they trade voluntarily People’s choices have consequences that lie in the future.
The Decision-Making Process Identify the problem Gather information and list possible alternatives Consider consequences of each alternative Select the best course of action Evaluate the results
Factors that canInfluence a Decision Values What is important to your family, others in your culture? B. Peers People you know Pressure for positive or negative behaviors C. Habits You are accustomed to doing it this way D. Feelings(love, anger, frustration, ambivalence, rejection) If you do make a certain decision If you don’t make a certain decision
Factors that canInfluence a Decision E. Family Your family’s preference Decisions other family members have made F. Risks and consequences What (or how much) you stand to win What (or how much) you stand to lose G. Age Minor Adult
Common Decision-Making Strategies spontaneity Choosing the first option that comes to mind; giving little or no consideration to the consequences of the choice. compliance Going along with family, school, work, or peer expectations. procrastination Postponing thought and action until options are limited.
Common Decision-Making Strategies agonizing Accumulating so much information that analyzing the options becomes overwhelming. intention Choosing an option that will be both intellectually and emotionally satisfying. desire Choosing the option that might achieve the best result, regardless of the risk involved.
Common Decision-Making Strategies avoidance Choosing the option that is most likely to avoid the worst possible result. security Choosing the option that will bring some success, offend the fewest people, and pose the least risk. synthesis Choosing the option that has a good chance to succeed and which you like the best.
T-Chart Using a T-chart (are a type of chart, a graphic organizer in which you list and examine two facets of a topic)to list pros and cons related to decisions can help make the decision making process simple.
Directions: Choose a situation and document each step of the decision-making process. Decision-Making Process 1. Identify the problem. 2. Gather information and list possible alternatives. What information would be helpful to consider before making the decision?
Directions Continued: Choose a situation and document each step of the decision-making process. Decision-Making Process 3. Consider consequences of each alternative.
Directions Continued: Choose a situation and document each step of the decision-making process. Decision-Making Process 4. Select the best course of action. 5. Evaluate the results. Why do you think this is the best decision possible?
SITUATION 1 Fred loves clothes. His favorite activity is to go shopping at the mall and try on new clothes. He looks forward to the day when he has a job so he can buy all the clothes he wants. Next week is Fred’s birthday and he will receive $75.00 for his present. He saw a pair of jeans at the mall that were $72.00; however, he also needs new shirts, new shorts, and some swim trunks for the summer. His $75.00 could purchase all of these things or it could purchase the one pair of designer jeans. All the kids at school wear these jeans. Fred states, “If only I had a pair of these jeans, I would be popular.” What should Fred do? Decision-Making Process
SITUATION 2 Katie loves clothes. She wishes she could have all the designer clothes she wants. Unfortunately, she can’t; she has two brothers and three sisters, and her parents cannot afford to buy all their children designer clothes. Katie has a few friends that have some designer jeans. Her friends let her borrow the jeans, even though this is against her parents’ wishes. Her parents felt that Katie should not borrow them in case something were to happen to them. In that case, they would need to purchase an outfit to replace the damaged one. One day on the way home from school, Katie tripped and fell on her knees. She tore holes in both knees of the designer jeans she had borrowed from her friend, Julie. Katie was crying, not only because she had injured her knees, but because the new jeans were ruined and they weren’t even hers. What is Katie going to do? Decision-Making Process
SITUATION 3 Steve is fourteen and has taken piano lessons since he was five. He feels that he misses out on many fun activities because he has to practice everyday after school. He wants to quit piano lessons, but his mother will not allow him to; she says, “If you quit the piano now you’ll be sorry when you get older.” Steve wants to quit anyway. What should Steve do? Decision-Making Process
Choosing Brand Name Jeans Over No-Name Jeans Cost More Better Fit Popular people will notice me. I will look just like everyone else. Feel better about myself. I can only afford one pair.
Economic Influences on Decision-Making These economic factors may influence personal and financial decisions: consumer prices changes in the buying power of the dollar, inflation consumer spending demand for goods and services gross domestic product (GDP) total value of goods and services produced within the country housing starts the number of new homes being built
These economic factors may influence personal and financial decisions: Economic Influences on Decision-Making interest rates the cost of borrowing money money supply funds available for spending in the economy stock market index (such as the Dow Jones Averages, Standard & Poor’s 500) indicate general trends in the value of U.S. stocks unemployment the number of people without employment who are willing to work
Risks are associated with every decision. The following are common risks related to personal and financial decision making: Risks Associated with Decision-Making personal risks factors that may create a less than desirable situation. Personal risk may be in the form of inconvenience, embarrassment, safety, or health concerns. inflation risk rising prices cause lower buying power. Buying an item later may mean a higher price. interest-rate risk changing interest rates affect your costs (when borrowing) and your benefits (when saving or investing).
Risks are associated with every decision. The following are common risks related to personal and financial decision making: Risks Associated with Decision-Making income risk changing jobs or reduced spending by consumers can result in a lower income or loss of one’s employment. Career changes or job loss can result in a lower income and reduced buying power. liquidity risk certain types of savings (certificates of deposit) and investments (real estate) may be difficult to convert to cash quickly
Opportunity Costs opportunity cost refers to what a person gives up when a decision is made. This cost, also called a trade-off, may involve one or more of your resources (time, money, and effort). personal opportunity costs may involve time, health, or energy. For example, time spent on studying usually means lost time for leisure or working. However, this trade-off may be appropriate since your learning and grades will likely improve. financial opportunity costs involve monetary values of decisions made. For example, the purchase of an item with money from your savings means you will no longer obtain interest on those funds.
Time Value of Money time value of moneycan be used to measure financial opportunity costs using interest calculations. For example: spending $1,000 from a savings account paying 4% a year means an opportunity cost of $40 in lost interest. Calculations: $1,000 x .04 (4%) x 1 year = $40 Over 10 years, that $40 a year (saved at 4%) would have a value of $480 when taking into account compound interest.
Forms of Peer Pressure as it Relates to Purchasing Decisions • Friends • Newspapers • Magazines • Telephone Directories • Direct Mail • Commercials • Catalogs • Radio Advertisements
Emotional Factors Related to Peer Pressure • Gossip • Acceptance • Disapproval • Insecurities • Boyfriend/Girlfriend • Sarcasm • Fear • Clubs • Athletics • Cliques • Rich/Poor
Marketing, Advertising & Sales Strategies People who sell products and services are fishing for customers. They lure them in with sales, coupons, and other enticements. Unlike fish, consumers can benefit in this situation – if they know how to take advantage of special purchasing opportunities.
Attractive Décor • Background Music • Items purchased most often are in back of store (bread/milk) • Most profitable items are given prominent positions. • Clearance Sales • Holiday Sales • Coupons • Rebates • Sweepstakes • Contests • Sales People Examples of Marketing, Advertising & Sales Strategies
Learn to Like (Used to compare emotions of Shania Twain song, Ka-Ching) Learn to like what doesn't cost much. Learn to like reading, conversation, and music. Learn to like plain food, plain service and plain cooking. Learn to like fields, trees, brooks, hiking, rowing, climbing hills. Learn to like people, even thought some of them may be different, different from you. Learn to like work and enjoy the satisfaction of doing your job as well as it can be done. Learn to like the songs of birds, the companionship of a dog. Learn to like gardening, puttering around the house, and fixing things. Learn to like the sunrise and the sunset, the beating of the rain on the roof and windows, and the gentle fall of snow on a winter day. Learn to keep your wants simple and refuse to be controlled by the likes and dislikes of others. by Lowell Bennion
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Money Matters: Making Decisions, Making Money,Budgeting, Banking Services, Saving and Investing, Credit, Buying a Home, Cars and Loans, Consumer Awareness, Consumer Privacy, Advertising Bankruptcy
