Suggested Target
Age: Grades
5-12
Time Required:
Approximately 30 minutes
Topics:
job-searching, money
management, time management,
budgeting, saving, spending,
taxes
Sources:
Girl
Scouts, Moneyopolis
What Will the
Students Learn:
- The value of work
- The importance of
time management
- How to budget money
earned
- The difference between
gross income and net
income, and how to
calculate net income
State Standards:
California:
Mathematics: Number
Sense: (Grade 5) 1.0,
2.0; (Grade 6) 2.0;
(Grade 7) 1.3, 1.7;
Florida:
Economics: SS.D.1.2.5,
SS.D.1.3.3; Mathematics:
MA.B.4.2, MA.A. 1.3,
MA.B.4.3,
Indiana:
Mathematics: 5.2.1,
5.2.5, 6.2.3, 6.2.8,
7.2.1, 7.2.3, 8.2.1;
Social Studies: 5.4.8,
E.1.11, E.4.5
Virginia:
Mathematics: 5.3, 5.4,
5.5, 5.6, 6.6, 6.8,
7.5, 8.3; Civics and
Economics: CE.11; Economics
Education and Financial
Literacy: Objectives
1, 3, 4, 11, 14
Materials Required:
NOTE: This lesson
does not require access
to computers or the
Internet.
Lesson Plan:
- Pass out the “Making
Cents” Worksheet
to each of the students
and make sure they
all have a writing
utensil. Explain the
activity to them:
they will be saving
up for an item that
they would like to
purchase. In order
to do so they have
to find a job and
manage their time
and money wisely.
You as the instructor
should also complete
a worksheet, writing
your information from
the first three sections
of the worksheet down
on the board for the
students to see. (Do
not write down your
gross or net income,
as you will be having
the students calculate
that together later.)
- Looking at the first
section of the Worksheet,
have each of the students
select which item
they would like to
purchase. They may
choose something not
on the list as long
as you decide on a
price for that item.
Once they have decided
on an item, have them
write it down, with
the price, in the
“What would
you like to buy?”
box on their “Making
Cents” Worksheet.
- Tell the students
that right now they
don’t have any
money. They asked
their parents to buy
the item for them,
but their parents
said, “You need
to get a job and buy
it yourself.”
Now it’s time
for them to choose
a job.
- Give the students
2-3 minutes to look
over the jobs list.
Then have them choose
one and write the
name of the job and
salary in the “What
job would you like
to apply for?”
box on your “Making
Cents” Worksheet.
- The next step is
budgeting their time.
Have them fill in
the “Activities”
section of their “Making
Cents” Worksheet.
There are 168 hours
in a week, but they
must factor in sleep
and going to school,
so those are already
filled in. This leaves
them with 72 hours,
which must be divided
among their various
activities. Have them
think about the activities
that they are involved
in or that they would
like to be involved
in. They must check
them off and fill
in the number of hours
they will spend with
each. Make
sure the total, including
sleep and school,
adds up to 168.
- After they make
their time budget,
they need to calculate
how much money they
will make each week.
To do this, they must
multiply their number
of hours worked by
their salary per hour.
Explain to the students
that the amount they
come up with is their
“gross income.”
- Write the definition
of gross income
on the board:
Gross
Income:
The total amount
of money you earn
before expenses
such as taxes.
Now have the students
calculate your weekly
gross income for
the job and hours
you have chosen
(shown by the information
from your own worksheet
on the board). When
the students have
correctly calculated
your gross income,
write it down on
the board. Now have
them calculate their
own gross income
using their own
worksheets.
- Now explain that
in the real world,
taxes are taken out
from workers’
paychecks. For the
purpose of this activity,
students will have
a total of 15% percent
taken out of their
paycheck for taxes.
Explain to the students
that the amount of
the paycheck after
taxes are taken out
is called “net
income.”
- Write the definition
of net income
on the board:
Net Income:
The amount of
money you earn,
less your expenses.
Explain that to
determine their
net income, they
will follow a
two-step formula.
Step one; they
multiply their
gross income by
15%. Then, step
two; they subtract
that amount from
their gross income.
Using the information
you have written
down on the board
from your own worksheet,
walk with the students
through the calculation
of your net income.
When they have correctly
calculated it, write
your net income
on the board. Now
have them calculate
their own net income
using their own
worksheets.
- The students will
now make a budget
for the money they
are earning. The “Budgeting
Your Money”
section of the worksheet
lists various ways
they may want to spend
their earnings. Have
them check off each
of the categories
that they will need
to pay for. Once they
have checked them
off, they must add
up the amount that
they will be able
to save each week.
Note: They will
need to change either
their time budget
or money budget if
the sum price of their
activities is more
than what they make
each week. Also, if
they realize that
you want to save more
money each week so
they will be able
to purchase their
desired item sooner,,
give them some time
to adjust their time
and money budgets.
- Now that they’ve
identified how much
they will save each
week, they can figure
out how long it will
take before they can
purchase the item
they chose in the
beginning of the activity.
To determine this,
have them divide the
price of the item
by the amount they
will save each week.
Go through your example
on the board with
the students. When
they have calculated
it correctly for you,
have them make the
calculations for themselves
using the information
on their own worksheets.
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