Unit Title: Understanding The Importance Of Personal Finance

Subject: Personal Finance

Teacher(s): Ms. Smith, Ms. Balliet

School: Bloomsburg University

I. Overview:

In order for students to achieve financial success, it is important to understand the background information related to personal finance. Due to the fluctuating economy students need to be able to identify financial objectives, understand the importance of financial planning, and become familiar with different ways of investing. This will allow students to effectively plan out their financial future. The majority of the information for this unit plan can be found at http://bus.utk.edu/finance/black.htm

II: Topics to be covered:

The following topics will be discussed concerning personal finance:

1. Types of financial objectives

2. Managing cash and savings

3. Managing credit

4. Dimensions of credit cards

5. Various consumer loans

6. Areas of investment

II. Student Performance Objectives:

Students will be able to:

1. Orally identify issues related personal finance such as the following: importance of personal finance, issues with managing cash and savings, fundamentals of managing credit, and the concepts of credit cards.

2. Identify different areas related to personal finance using class activities, worksheets, case studies, etc.

3. Present to the class the reasons why or why not a specific credit card is a wise investment choice.

III. Outline of Unit

I. Understanding the Importance of Personal Finance

A. Financial Objectives

1. Immediate Goals

2. Long-Term Goals

B. Work

1. Controlling Your Financial Life

2. What To Do With Your Paycheck

A. Spending vs. Saving

3. The Importance of Saving

C. Going To College

1. College Graduates vs. High School Graduates

2. Increased Skill In The Workplace

D. Insurance

1. Health And Disability Insurance

2. Life Insurance

II. Managing Cash And Savings

A. Cash

1. Checking Accounts

2. ATMS

3. Debit Cards

B. Savings

1. Statement Savings

2. CD’s

3. Money Market Accounts

4. Money Market Mutual Funds

C. Choosing A Bank

1. Convenience

2. Costs

3. Services

III. Managing Credit

A. Buy and Paying on Credit

B. How To Establish Credit

C. How to Manage Your Credit.

D. Bankruptcy

E. Credit Bureaus And How They Work

1. Credit Evaluation

2. Credit Scoring

IV. Credit Cards

A. Types Of Credit Cards

1. Bank Cards

2. Travel And Entertainment Cards

3. Single Merchant Cards

B. Interest Charges

C. Annual Fees

D. The Pros And Cons Of Credit Cards.

V. Consumer Loans

A. Types of Loans

1. Installment Loans

2. Secured Loans

3. Unsecured Loans

4. Interest Rate

B. Houses/Apartments

1. Purchasing vs. Renting

2. Searching for Houses

3. Issues Related To Renting

4. Issues Related To Purchasing

5. Financing

6. Mortgages and Homeowners Insurance

VI. Investments

A. What Is Investing?

B. Risk and Return

C. Different Types of Investment

1. Savings Instruments

2. Stocks and Bonds

3. Mutual Funds

IV. Learning Activities

1. Given a classroom discussion, students will explain the importance of personal finance in their lives.

2. Students will individually complete a worksheet that emphasizes the need for different types of insurance

3. In groups, students will use worksheets that allow them to identify the different ways of managing cash and savings.

4. Students will complete a group activity that reinforces the issues related to managing credit such as the following: buying and paying on credit, how to establish credit, etc.

5. Through implementation of the learning center, students will present to the class the negative and positive aspects of specific available credit cards.

6. In groups students will create a personal finance plan using a scenario provided for them by the finance plan guidelines. Students will create this plan incorporating all areas of personal finance that is covered throughout this unit.

Reference materials

“Personal finance and financial planning: A web-assisted approach.” http://bus.utk.edu/finance/black/htm

“Jump Start Coalition.” http://www.jumpstart.org/principles.cfm

“Credit Counselors of America.” http://www.ccoa.org/TPFa.htm

“Investigating Investments.” http://www.plan.ml.com/family/teachers/investact.html

National Standards for Business Education, “Economics and Personal Finance - Personal Finance.” Reston, VA: National Business Education Association, 2001.

Supplementary materials

In-class computers with Internet availability (at least 30)

Case studies

Handouts

Worksheets

Transparencies

Power point presentation

Overhead projector

Poster paper

Markers

Thumbtacks

Multi-colored “post-it” notes

Current News Papers

Contingency Plan

If computers are not available within the classrooms, then students will be given time in the lab.

If the Internet is not available, then teacher will need to bring in the classified section of various newspapers for some activities.

If the Internet is down and the activity can absolutely not be completed, have a worksheet on hand for students to complete.

Supplementary Materials

PowerPoint Presentation/Transparencies

Worksheet on Insurance

Blank notebook paper

At least 30 computers with Internet capability

Overhead projector

Subject: Personal Finance

Lesson: Introduction to Personal Finance: The Importance of Personal Finance

Date: November 26, 2002

Period: One

Objectives:

At the end of classroom lectures, discussions and activities students will be able to:

1. Identify financial objectives immediate and long-term in compliance with the teacher’s key.

2. Based on what was covered in class, describe ways that you can control your financial life in a brief paragraph according to the teacher’s key.

3. Explain the differences in the workplace for a college graduate and a high school graduate using a worksheet provided by the teacher.

4. Differentiate between the different types of insurance (and their importance for financial success) upon reading different case studies in compliance with the answer key.

Introduction:

State the following scenario to the students:

“Your uncle recently decided to give you $1000.00 cash. The money is yours to do anything you wish.”

Tell students to take out a sheet of paper and write a brief paragraph discussing what they would do with this money. Have students then share their choices with the class.

Tell the students “what you chose to do with your money greatly affects your personal finance. Therefore, we will discuss the importance of this in class today.”

Procedures and Content:

1. What is personal finance? Can anyone tell me what he or she thinks personal finance is?

After students have volunteered their answers, provide students with the actual definition. (Begin using power point presentation or transparencies; see appendix A)

2. Let’s talk about financial objectives and what they mean for you.

· Immediate Goals

· Long-Term Goals

· Provide definitions and examples for both types of goals. (Using either power point presentation or transparencies.)

· 3. How do you feel you can control your financial life?

· Talk with students about how working can help them to control their financial freedom and life.

· Have a classroom discussion about what you can do with your paycheck. Spending it all vs. saving some for another time.

· Use to students how they can use this to control their financial life.

5.College Graduates vs. high school Graduates

· Have a discussion with students about the difference in wage earning potential with respect to jobs that require a high school diploma versus a college degree and ultimately the effect this can have on their savings.

· Students will now begin the “hotjobs” Internet activity. (See assignment #1)

6.Insurance

· Introduce students to the three different types of insurance: health, disability, and life through the use of power point presentations or transparencies. Proceed with lesson by giving students examples of when each type of insurance would be needed and how it could potentially protect them financially.

· Student will now be given the Insurance worksheet. This paper must be completed for homework due the following day. (See assignment #2. See Appendix B for Insurance Worksheet and Teachers Key)

Assignment:

#1. Students will log onto the network and access the following website: www.hotjobs.com. Students will be given 15 minutes to explore the site and locate two jobs that interest them. One choice must require a college degree and the other only a high school diploma. Also, students must find the potential salary for each of their job choices. Students will receive participation points for this assignment according to teacher’s observation.

#2. Students will be given an insurance worksheet that they will complete for homework. Student will be required to read over the different case studies provided at the top of the worksheet. For each study, students must provide the type of insurance referenced and the necessity of the insurance. This assignment will be evaluated according to the teacher’s key with a point value of 15 points.

#3. The students will participate in a class discussion that will close the lesson for the day (See Summary). Students will be assessed on how they recall information for the day’s lecture. The student will be awarded participation points according to the teacher’s observation.

Summary:

To summarize class for the day the students will join in on a class discussion about how they feel about the importance of personal finance. The students will be asked to refer back to material that was gone over in the class lecture to support their answers. The students will be asked how they plan to take hold of their financial life.

Evaluation:

The students will be assessed through the teacher’s observation. The teacher will observe the students during the class lecture for attentiveness and participation. The teacher will observe the students during the summary activity for participation and recall of information form the lecture. Students will be evaluated for the worksheet according to the teacher’s key.

Student Learning Center

Unit: Introduction to Personal Finance

Lesson: Establishing Good Credit

Learning Center Name: THE MONEY TREE

Objectives: Given a credit card application, students will orally express to the class the pros and cons of that particular card to be graded according to the rubric.

Materials: Bulletin board, large tree cut out from construction paper, thumbtacks, and credit card applications (supplied by both students and teacher)

Procedures:

-Students and teacher will gather different credit card applications from the local retailers. Applications will be tacked up on the board.

-Once the lesson on credit cards and managing your credit has been taught, students will get the opportunity to chose an application off the “Money Tree”

-Students will have a few days to prepare an oral 5 minute presentation in which they discuss with the class both the pros and cons of their particular credit card

DENOTED VARIOUS CREDIT CARD APPLICATIONS

THE MONEY TREE -Students will be graded according to the rubric (See appendix)

SAMPLE LEARNING CENTER LAYOUT:

Learning Center

Rubric for oral presentation

Presenter’s name ________________________________________

Length of presentation _____________

Category	Excellent 5 points	Good 4-3 points	Satisfactory 2 points	Needs Improvement 1-0 points
Comprehension of subject matter	Student is able to name 2 valid pros and 2 valid cons with respect to classroom lectures	Student names 2 pros and 2 cons however, the reasoning is not in accordance with previously learned material	Student names only 1 valid pro and 1 valid con; the reasoning is okay	Student doesn’t state any valid pros or cons; no evidence of learned concept
Content	Showed a full understanding of credit cards; used proper terminology	Showed a good understanding of the topic; some terminology present	Parts of the presentation displayed understanding of the topic	No showing of any understanding of the topic or subject terminology
Time-Limit	Presentation is 5 minutes long	Presentation was only 4 minutes long	Presentation was in the 3 minute range	Presentation was only 1-2 minutes
Listens to other presentations	Listens to peers; is respectful and undisruptive	Listens to peers but appears restless and uninterested	Appears to not be listening at all but isn’t talking out loud	Disruptive behavior; talking to friends, tapping on desk, etc.

Total Possible Points: 20

Points earned: _________

Cooperative Learning Activity

Subject:

The subject of this cooperative learning activity is the Importance of Personal Finance in every day life.

Purpose:

The purpose of this group activity is to give the student a better understanding of the importance of personal finance in their present and future lives.

Procedures:

Students will be broken up into six groups consisting of four to five students in a group depending on class size. Each student will be given a color post-it there will be six different color post-it’s representing the six different groups (red, blue, yellow, orange, pink, and green). The students that receive the red post-it’s will be in the red group, the blue post-it’s the blue group and so on. Modifications can be made to the groups at the teacher’s discretion.

Each group will be given a copy of the Personal Finance Plan guidelines. Each group will be given a different scenario that they will use to develop their personal finance plan. The group will have to work together to develop a personal finance plan. This plan will have to developed the plan according to the guidelines using information that was learned throughout the unit. This activity will be the culminating activity for this Unit. Students will be asked to pull in content from each area of the unit. Students will be given time in class and time in the computer lab (if needed) to complete this project. The students will not be asked to work on this project outside of classroom time. Students should be allotted five classroom days to complete this project. The students will use different resources for this project. Students will use the Internet, Newspapers, the learning center; information from class lessons and any other resource that they feel is necessary to complete this assignment.

Each group will designate a group leader. The group leader will be responsible for keeping the group on track and coordinating the activities for the plan. The facilitator will be required to keep the teacher informed of the groups progress. This can be done through a verbal update during classroom time when the students are working on the project or through e-mail.

Students will be required to orally present their plan to the class. Students are required to use visuals of their choice (power point/posters/transparencies) for their presentation and each student in the group must play an active role in the presentation.

Materials

· 30 computers in class or in the computer lab with Internet access.

· Newspapers

· Personal Finance Plan scenarios

· Personal Finance Plan Guidelines

· Overhead Projector

· Poster Board

· Markers

Group Name: (Red, Yellow, Blue, Orange, Pink, Green)

Names of Individual Group Members:

Personal Finance Plan Scenario

Instructions: Please refer to this sheet for the particular scenario assigned to your group. Refer to Personal Finance Plan Guidelines for detailed instruction for the project.

Scenario for Red Group

You make $1000.00 per week after taxes. Your goal is to manage your finances successfully. You will need to acquire a place of residence. Keep in mind that you will also have to pay bills, buy food and have money for other personal items. Second you must obtain a credit card. Last you must invest a portion of your income. How will manage your finances in this situation?

Scenario for Blue Group

You make $525.00 per week after taxes. Your goal is to manage your finances successfully. You will need to acquire a place of residence. Keep in mind that you will also have to pay bills, buy food and have money for other personal items. Second you must obtain a credit card. Last you must invest a portion of your income. How will manage your finances in this situation?

Scenario for Yellow Group:

You make $3500.00 per week after taxes. Your goal is to manage your finances successfully. You will need to acquire a place of residence. Keep in mind that you will also have to pay bills, buy food and have money for other personal items. Second you must obtain a credit card. Last you must invest a portion of your income. How will manage your finances in this situation?

Scenario for Orange Group:

You make $310.00 per week after taxes. Your goal is to manage your finances successfully. You will need to acquire a place of residence. Keep in mind that you will also have to pay bills, buy food and have money for other personal items. Second you

must obtain a credit card. Last you must invest a portion of your income. How will manage your finances in this situation?

Scenario for Pink Group:

You make $2100.00 per week after taxes. Your goal is to manage your finances successfully. You will need to acquire a place of residence. Keep in mind that you will also have to pay bills, buy food and have money for other personal items. Second you must obtain a credit card. Last you must invest a portion of your income. How will manage your finances in this situation?

Scenario for Green Group:

You make $820.00 per week after taxes. Your goal is to manage your finances successfully. You will need to acquire a place of residence. Keep in mind that you will also have to pay bills, buy food and have money for other personal items. Second you must obtain a credit card. Last you must invest a portion of your income. How will manage your finances in this situation?

Group Name: (Red, Yellow, Blue, Orange, Pink, Green)

Names of Individual Group Members:____________________, ___________________, _____________________, ____________________, ___________________.

Personal Finance Plan Guidelines

Each group will provided with a financial scenario. As a group you must develop a plan as to how you will manage your finances successfully. You will provide me with a report on how you plan to achieve this goal of financial success. You will use the guidelines below for the body of your report. This report should be no less than three pages please use the unbound report format and double space between lines. Please provide me with a list of the resources that you use to compile this report. You must use correct grammar and format for this report. The heading for the report will be “Personal Finance Plan” this will be followed by your group name and the names of the individual group members.

As a group you will orally present the results of your plan to the class. You will be given five to ten minutes to highlight the key aspects of your plan. Please use visuals for your presentation. Visuals may consist of a PowerPoint demonstration, overhead transparencies, poster board, or any visual you feel appropriate. Each member of the group must play an active role in the presentation.

Each group must nominate a group leader. The group leader will be responsible for keeping the group on track and coordinating the activities for the plan. The facilitator will be required to keep the teacher informed of the groups progress. This can be done through a verbal update during classroom time when you are working on the project or through e-mail.

There will be a possible 36 points for the report and a possible 20 points for the presentation. Each person in the group will receive the same grade. Please refer to the rubrics for a break down of the points.

Please read on below for the details that will be included in your final report.

· Acquiring a Place of Residence:

To complete this area of the plan you will need to look through the classified section of the newspaper and find a residence that will fit into your budget. You may also use the Internet and search realty sites (www.realty.com is a good one to try).

You will not be purchasing this home you will be renting. You must provide me with at least one reason as to why renting is the right choice for your financial situation.

You must keep in mind that you will also have to pay bills; you must set aside an amount of money for this. You may estimate what you may need to pay your bills. You must use a realistic figure for this if you are not sure about the figure that you come up with please see me. (Hint: Ask your parents how much they pay for bills each month, this will point you in the right direction.)

In your report please provide me with the type of residence you have chosen to rent (house/apartment etc.). Also provide the amount of money you will be spending per month on rent and bills.

· Obtaining a Credit Card

You must obtain a credit card. To do this I would like you to use the information collected for the learning center. Evaluate the different types of Credit Cards look at their APR and the different benefits that they provide. You must choose a credit card that is appropriate for your situation. In the body of your report provide me with the type of credit card that you have chosen and your reasoning for this decision.

· Investing

You must decide on a way that you will invest a portion of your money. You will need to go back through the information that was covered in class on investing and the different types of investments. In the body of the report you must include how you plan to invest you money, how much you plan to invest and why you are choosing this type of investment.

Personal Finance Plan Rubric

Criteria	Acceptable	Needs Work	Unacceptable
Content (5)	Content covers each area provided in the Personal Finance Plan Guidelines. (5)	Content covers some areas of the Personal Finance Plan Guidelines (2)	Content does not cover the areas presented in the Personal Finance Plan Guidelines (0)
Acquiring a Place of Residence (7)	Students listed how much they will be paying for rent and bills. (3) Students provided valid reasoning and support for their decision. (4)	Students listed how much they would be paying for rent and bills. (3) Students reasoning behind their decisions were unclear. There was no validity or support for this decision. (1)	Students did not include payment for rent and bills in their report. (0) There was no reasoning behind their decisions. (0)
Obtaining a Credit Card (7)	Students listed in the body of their report what type of credit card they have chosen. (3) Students provided valid reasoning and support for their decision. (4)	Students listed in the body of their report what type of credit card they have chosen. (3) Students reasoning behind their decisions were unclear. There was no validity or support for this decision. (1)	Students did not provide what type of credit card they have chosen. (0) There was no reasoning behind their decisions. (0)
Investing (7)	Students have listed in the body of their report how they have chosen to invest their money and how much they will invest. (3) Students have provided valid reasoning and support for their decision. (7)	Students have listed in the body of their report how they have chosen to invest their money and how much they will invest. (3) Students reasoning behind their decisions were unclear. There was no validity or support for this decision. (1)	Students did not provide what type of investment they will make, or how much will be invested. (0) There was no reasoning behind their decisions. (0)
Format (5)	Students used proper format for the repot. Correct report format, spacing, and header. (5)	Students prepared the report correctly, some errors were found in the formatting. (3)	Students did not use correct format. (0)
Grammar (5)	There were no grammatical errors found. (5)	There were 1-3 grammatical errors found. (3)	There were more than 3 grammatical errors found. (1-0)

Total Points_____________/36

Personal Finance Plan Presentation Rubric

Criteria	Acceptable	Unacceptable
Visual Aids	Students used proper visual aids (5)	Students did not use visual aids. (0)
Participation	Each student in the group played an active role in the presentation. (5)	One or more student(s) did not play an active role in the presentation. (0)
Organization	The presentation appeared to be organized. (5)	The presentation was unorganized students did not appear to know what they were doing. (0)
Information	The information provided was relevant and was based on the “Personal Finance Plan Guidelines”. (5)	The information provided was not relevant. (0)

Total Points __________/20

Student Evaluation

Sample Assessments

Throughout this unit, students will be assessed through classroom discussions, case studies and worksheets, and various projects.

Assessment examples:

Classroom discussions

o Students will be assessed according to teacher observation.

Case studies

o The class will be presented with the case study that they will be required to do a one-minute paper on followed by a class discussion.

o Students will individually read case studies for homework and provide answers on the worksheets given.

o Students will be assessed according to their knowledge and ability to use material learned through class lectures in relation to the case studies.

Worksheets

o Students will complete worksheets on various topics throughout the unit.

o Students will be assessed in accordance to the teacher’s key that is created for each individual worksheet.

Projects:

· Cooperative Learning Activity- Personal Finance Plan

Students will complete a group project consisting of a final report and an oral presentation. Please see the Guidelines for the Personal Finance Plan Guidelines and the teachers’ rubric for the specifics in assessing this assignment.

· Student Learning Center

Students will create a learning center dealing with credit cards. Students will use this learning center to complete an oral and written project. Please see the Student learning Center and Leaning Center Rubric for details related to assessing this assignment.

Student Learning Center

Format (5)

Grammar (5)

Total Points_____________/36

Personal Finance Plan Presentation Rubric

Participation