Topics Scaffolding Chart 5-8 Grade 5 Earning Income Grade 6 Earning Income Earning Money Grade 7 Earning Income Path to a Career Differences Between Jobs and Careers Planning Your Future What is a Career? Characteristics of Jobs/Careers (Lesson Plan: Introduction to Earning Money http://www.moneyinstructor.com/lesson/ea rnmoney.asp ) (Lesson Plan: Jobs vs. Careers http://lesson.moneyinstructor.com/91/jobsvs-careers.html ) Grade 8 Earning Income SS.8.FL.1.1 Explain that careers are based on working at jobs in the same occupation or profession for many years. Describe the different types of education and training required by various careers. Exploring Careers Career Readiness Topic(s): Jobs vs. Careers – Characteristics Comparing Careers (U.S. Bureau of Labor Statistics- Career Exploration http://www.bls.gov/k12/content/students/ca reers/career-exploration.htm ) Career Stages Timeline Requirements for Different Careers (U.S. Bureau of Labor Statistics Activity: Choosing a Career http://www.bls.gov/k12/content/teachers/pd f/choosing_a_career.pdf) Career Choices Factors That Affect Career Choices How Career Choices Affect Income Interests Guide Career Choices What does it take to become a (doctor, teacher, etc)? Different Careers: Different Lifestyles (Resource Tool –U.S. Bureau of Labor Statistics Occupational Outlook HandbookInteractive Site Shows Occupations by: Median Pay; Education Level; Training; # of New Jobs Projected; and Projected Growth Rate http://www.bls.gov/ooh/ ) (Lesson Plan: To Be or Not To Be http://www.econedlink.org/teacherlesson/393 ) Education- What’s It Worth? Human Capital Explaining Human Capital (Lesson Plan: Why Work Now? http://www.econedlink.org/teacherlesson/368 ) (Lesson Plan: Human Capital for Money http://www.econedlink.org/lessons/index.p hp?lid=231&type=educator ) (Lesson Plan: The Mystery of the Amazing Farmers http://www.econedlink.org/teacherlesson/206 ) SS.8.FL.1.2 Identify the many decisions people must make over a lifetime about their education, jobs, and careers that affect their incomes and job opportunities. Topic(s): Explore Career Options Career Research Career Paths Careers and Income (Resource Tool –U.S. Bureau of Labor Statistics Occupational Outlook HandbookInteractive Site Shows Occupations by: Median Pay; Education Level; Training; # of New Jobs Projected; and Projected Growth Rate http://www.bls.gov/ooh/ ) SS.8.FL.1.3 Explain that getting more education and learning new job skills can increase a person’s human capital and productivity. Topic(s): How Education Increases Human Capital Human Capital Investment Building Human Capital Grade 5 Better Education: Better Job Grade 6 Grade 7 Increase Job Skills, Increase Income Impact of Education on Income (Lesson Plan: The Value of Education http://www.moneyasyoulearn.org/tasks/the -value-of-education/?bid=35_valueofeducation ) (Background Information- Statistics College Board: Education Pays Report https://trends.collegeboard.org/sites/defaul t/files/education-pays-2013-full-report.pdf) Grade 8 SS.8.FL.1.4 Examine the fact that people with less education and fewer job skills tend to earn lower incomes than people with more education and greater job skills. Topic(s): The Education – Income Connection Factors that Affect Income Career Preparation Career Preparation- Analyze the Return Costs and Benefits of Education and Job Training (Lesson Plan: You’re Going to College – costs and benefits http://www.econedlink.org/teacherlesson/789 ) SS.8.FL.1.5 Examine the fact that investment in education and training generally has a positive rate of return in terms of the income that people earn over a lifetime, with some education or training having a higher rate of return than others Topic(s): Comparing Income – Does Education Matter? More Education- More Income Effects of Investment in Education on Lifetime Earnings Opportunity Costs Costs Associated Training with College and Opportunity Costs of Job Training SS.8.FL.1.6 Identify the opportunity costs that education, training, and development of job skills have in the terms of time, effort, and money. Topic(s): Opportunity Costs of Taking a First-Aid Course Opportunity Costs of a College Education (U.S. Bureau of Labor Statistics: Occupational Outlook Handbook – Search Occupations by –Median Pay; Entry Level Education; On the Job Training; Number of New Jobs Projected; Projected Growth Rate http://www.bls.gov/ooh/ ) Interest Income Earning Money Through Financial Investing Investments Define gift, rent, tip, commission, and business profit income. SS.8.FL.1.7 Identify that interest, dividends, and capital appreciation (gains) are forms of income earned from financial investments. Investing to Meet Financial Goals Topic(s): Calculating Interest Earnings (Lesson Plan: You Can Bank on This – Grade 5 savingsinterest http://www.econedlink.org/teacherlesson/585 Grade 6 Grade 7 Grade 8 Interest, Dividends and Capital Gain Different Investments: Different Risk Level Using Data to Compare Investment Performance Government Income Assistance Why Governments Take Care of Their People Understanding Medicaid Different Forms of Government Assistance What is SNAP? (Government Assistance for Homeless http://www.nationalhomeless.org/factsheet s/Fact%20Sheet%20and%20LessonPlan6-8.pdf ) (SNAP Information http://www.nutrition.gov/food-assistanceprograms/supplemental-nutritionassistance-program ) SS.8.FL.1.8 Discuss the fact that some people receive income support from government because they have low incomes or qualify in other ways for government assistance. Topic(s): Federal Assistance Programs in the United States Out of Work: How Can the Government Help Me (and My Family)? Beginnings of Government Assistance in the United States: The Great Depression (Background Information – Center on Budget and Policy PrioritiesFederal Programs for Low-Income Families http://www.cbpp.org/research/vario us-supports-for-low-incomefamilies-reduce-poverty-and-havelong-term-positive-effects ) Buying Goods and Services Buying Goods and Services Buying Goods and Services Buying Goods and Services Spending Money Factors That Influence What You Buy Research for a Major Purchase Deciding What to Buy As Seen on TV Gather Information Before You Buy! Spending Choices Read Those Reviews! SS.8.FL.2.1 Explain why when deciding what to buy, consumers may choose to gather information from a variety of sources. Describe how the quality and usefulness of information provided by sources can vary greatly from source to source. Explain that, while many sources provide valuable information, other sources provide information that is deliberately misleading. (Lesson Plan: What Can I Affordcomparing cell phone plans http://www.thirteen.org/edonline/lessons/af ford/index.html ) Topic(s): Being a Smart Consumer Grade 5 Advertising Grade 6 Why Companies Advertise Grade 7 Analyzing Advertisements The Influence of Advertising (Lesson Plan: Be an Ad Detective http://www.econedlink.org/teacherlesson/645 ) Grade 8 Deceptive Selling Practices Informed Consumerism SS.8.FL.2.2 Analyze a source’s incentives in providing information about a good or service, and how a consumer can better assess the quality and usefulness of the information. Topic(s): Product Recommendation: Consider the Source Celebrity Endorsements: Would You Buy Pantyhose From an NFL Player? (Lesson Plan: Did You Get The Message? – Advertising Techniques and Incentives http://www.econedlink.org/teacherlesson/634 ) Cash or Credit Understanding “Credit” Using Credit Wisely Buy Now – Pay Later How Using Credit Affects You What is “Layaway?” Rent to Own SS.8.FL.2.3 Describe the variety of payment methods people can use in order to buy goods and services. Topic(s): Methods of Paying for Goods and Services Differences Among Debit Cards, Credit Cards and Prepaid Cards: Summarize the advantages and disadvantages of checks, stored value cards, debit cards, gift cards and online and mobile payment systems. (Lesson Plan: Payment Parliament https://www.kansascityfed.org/publicat/edu cation/teachingresources/Payment%20Par liament.pdf ) Credit Cards vs. Debit Cards Costs and Benefits of Paying for Goods and Services with Cash Costs and Benefits of Buying with a Credit Card SS.8.FL.2.4 Examine choosing a payment method, by weighing the costs and benefits of the different payment options. Topic(s): Costs and Benefits of Different Payment Options Grade 5 Grade 6 Grade 7 Grade 8 Should I Pay for That Coca Cola with a Credit Card? Why or Why Not? Basics of Budgeting Budgets (Lesson Plan: Money Comes and Goesunderstand and design a budget http://www.econedlink.org/teacherlesson/483 ) Saving (Expense Tracking Activity: Expense Tracking ) (Activity: Hello Working World Making a Budget http://www2.scholastic.com/content/collate ral_resources/pdf//s//SB1711%20MarHello LO2.pdf ) Saving The Unexpected: What happened to My Budget? Topic(s): Unplanned Expenses = Budget Revisions Budgets: Planning for Unexpected Events Saving The Business Of Banking What Banks Do With Your Money SS.8.FL.2.5 Discuss the fact that people may revise their budget based on unplanned expenses and changes in income. Savers, Lenders, Borrowers Basics of Banking Savings Accounts Bank Accounts Earn Interest How Banks Work http://www.themint.org/kids/how-bankswork.html Saving SS.8.FL.3.1 Explain that banks and other financial institutions loan funds received from depositors to borrowers and that part of the interest received from these loans is used to pay interest to depositors for the use of their money. Topic(s): Banking Flow Chart: Saver to Borrower Show Me The Money: How Banks are Able to Pay Interest What is Earned Interest Bank Accounts and Interest Calculating Savings Interest Simple Interest vs. Compound Interest (Lesson Plan: Climb the Savings Mountain http://www.econedlink.org/teacherlesson/515 ) Interest Rates: Not Always the Same Compare Savings Interest Rates Before You Deposit Inflation and Interest Rates SS.8.FL.3.2 Explain that, for the saver, an interest rate is the price a financial institution pays for using a saver’s money and is normally expressed as an annual percentage of the amount saved. Topic(s): Savings: Understanding Annual Percentage Rate SS.8.FL.3.3 Discuss that interest rates paid on savings and charged on loans, like all prices, are determined in a market. The Money Market Comparing Loan Interest Rates Topic(s): Why Interest Rates Fluctuate Grade 5 Grade 6 Grade 7 Grade 8 How the Market Determines Interest Rates Relationship Between Interest Rates and Money Demand Supply and Demand in the Money Market Growing My Savings How Rising Interest Rates Affect Savings Rising Interest Rates= Increased Savings Earnings Building Wealth SS.8.FL.3.4 Explain that, when interest rates increase, people earn more on their savings and their savings grow more quickly. Topic(s): Calculating Interest Rates on Two Different Certificates of Deposit What is Principal? Let Your Principal Work for You I SS.8.FL.3.5 Identify principal as the initial amount of money upon which interest is paid. Topic(s): Principal vs. Interest: What’s the Difference? Every Dollar Counts Importance of Beginning to Save Early Start Saving Early: Reach Your Financial Goals Calculating Compound Interest (Lesson Plan: M & M InterestingCalculating –comparing simple and compound interest rates- opportunity cost http://ecedweb.unomaha.edu/lessons/M& M6-8.pdf# ) SS.8.FL.3.6 Identify the value of a person’s savings in the future as determined by the amount saved and the interest rate. Explain why the earlier people begin to save, the more savings they will be able to accumulate, all other things equal, as a result of the power of compound interest. Topic(s): Short Term Saving vs. Long Term Saving Evaluate the Benefits of Beginning a Savings Program Early in Life How Compound Interest Increases Your Savings Over Time Time Value of Money Saving Money Saving for Your Future Achieving Financial Goals Why People Save Money What are Your Saving Goals? Saving for What You Really Want SS.8.FL.3.7 Discuss the different reasons that people save money, including large purchases (such as higher education, Grade 5 Grade 6 Why Saving is Important Grade 7 Personal Choices Preferences Dictate Savings Grade 8 autos, and homes), retirement, and unexpected events. Discuss how people’s tastes and preferences influence their choice of how much to save and for what to save. Topic(s): Savings Choices Reasons People Save Money Comparing Savings Choices of Children, Teens, and Middle-Aged Adults Is My Money Really Safe in the Bank? What if Your Bank Fails? Why a Government Agency Insures U.S. Banks What is the FDIC? Video: The Deposit Insurance Fund: How it Works https://www.youtube.com/watch?v=dBOFi DpmESI SS.8.FL.3.8 Explain that, to assure savers that their deposits are safe from bank failures, federal agencies guarantee depositors’ savings in most commercial banks, savings banks, and savings associations up to a set limit. Understanding The NCUA Topic(s): Bank-Run: Could It Happen Today? How the Government Insures Your Bank Savings Major Responsibilities of the FDIC and NCUA Using Credit Using Credit Using Credit Different Types of Loans Costs and Benefits of Credit Buying Comparing Loan Interest Rates Credit Cards (Lesson Plan: Introduction to Credit http://www.tdbank.com/wowzone/lessons/ Gr4-5Lesson3.pdf ) (Lesson Plan: What Happens When a Bank Makes a Loan? http://www.pathwaytofinancialsuccess.org/ wpcontent/uploads/2014/04/UpperElementary lesson31.pdf ) Using Credit SS.8.FL.4.1 Explain that people who apply for loans are told what the interest rate on Making Good Borrowing Decisions: the loan will be. An interest rate is the price Factors to Consider of using someone else’s money expressed as an annual percentage of the loan Repaying Loans: Principal Plus Interest principal. (Lesson Plan: Borrowing MoneyRemember the Interest http://lesson.moneyinstructor.com/136/rem ember-interest.html ) Topic(s): Loan Interest Rates Calculating Loan Interest (Lesson Plan: Calculating Simple Interest Rates http://www.econedlink.org/teacherlesson/1008 ) Grade 5 Grade 6 Credit Card Fees Grade 7 Credit Card Interest Rates Comparing Interest Rates: Credit Cards vs. Secured Loans Grade 8 SS.8.FL.4.2 Identify a credit card purchase as a loan from the financial institution that issued the card. Explain that credit card interest rates tend to be higher than rates for other loans. In addition, financial institutions may charge significant fees related to a credit card and its use. Topic(s): The Cost of Using Credit Cards Examining and Analyzing Credit Card Statements The Pros and Cons of Using Credit Cards Monthly Interest Charges on Credit Cards What is a “Grace Period?” Credit Card Interest Multiplies Quickly Making Credit Card Payments Beware of the Minimum Payment (Consumer Credit.com: Credit Card Interest Calculator http://www.consumercredit.com/financialeducation/financial-calculators/credit-cardinterest-calculator.aspx ) SS.8.FL.4.3 Examine the fact that borrowers who use credit cards for purchases and who do not pay the full balance when it is due pay much higher costs for their purchases because interest is charged monthly. Explain how a credit card user can avoid interest charges by paying the entire balance within the grace period specified by the financial institution. Give advice to a friend explaining what happens to the total cost of borrowing on a credit card when only the minimum payment is made each month. Topic(s): Borrowing Costs When Making “Minimum Payments” Avoiding Interest on Credit Cards Minimizing Credit Card Costs (Video: Minimum Payment on Credit Cards https://www.youtube.com/watch?v=X0w2i46flg&list=PLM0VFPSPoWJPXgPcCdEnK3Q1OMUUH1Fa&index=3 ) Building Good Credit A Good Credit Record Has Its’ Rewards How Credit Records Affect Interest Rates SS.8.FL.4.4 Explain that lenders charge different interest rates based on the risk of Grade 5 Grade 6 Consequences of Not Repaying a Debt Grade 7 Your Credit Score- Why It’s Important (Basics of Building Credit http://cdn.comparecards.com/pdf/educatio n-center/Middle-School-Building-Credit.pdf Answer Guide http://cdn.comparecards.com/pdf/educatio n-center/Middle-School-Answer-Guide.pdf) Credit: Friend or Foe Grade 8 nonpayment by borrowers. Describe why the higher the risk of nonpayment, the higher the interest rate charged by financial institutions, and the lower the risk of nonpayment, the lower the interest rate charged. Topic(s): Why Interest Rates Vary Among Borrowers Higher Risk: Higher Interest Rates Financial Investing Financial Investing Financial Investing What is a Financial Asset? Differences Between Stocks and Bonds Investing in Mutual Funds (Lesson Plan: Saving and Investing – Compare Savings Acct, Money Market, CD; Bonds; Stock; Mutual Fund http://www.takechargeamerica.org/wpcontent/themes/tca/pdfs/teachingresources/grade-five-saving-andinvesting.pdf ) Bankers Analyze Potential Borrowers Financial Investing SS.8.FL.5.1 Describe the differences among the different types of financial assets, including a wide variety of financial instruments such as bank deposits, stocks, bonds, and mutual funds. Explain that real estate and commodities are also often viewed as financial assets. Stock Market Investing Real Estate and Commodities Competency: Describe the differences among the different types of assets. Find the prices of a variety of current possible investments. Topic(s): Financial Assets: Bank Deposits; Stocks; Bonds; Mutual Funds; and Real Estate (Lesson Activity: The U.S. Economy: Buy; Sell; Lend http://lei.councilforeconed.org/documents/9 78-1-56183-572-0-activity-lesson-10.pdf ) Interest Income Interest Income From Bank Accounts Interest Income from Government Bonds Corporate Interest Income from Lending Money or SS.8.FL.5.2 Calculate the amount of interest income received from depositing a certain amount of money in a bank account paying 1 percent per year and from owning a bond paying 5 percent per year in order to analyze that interest is received from money deposited in bank accounts as well as by owning a corporate or government bond or making a loan. Grade 5 Grade 6 Grade 7 Grade 8 Topic(s): Calculating Interest on Investments Calculate and Compare Interest Earnings: Bank Account; Corporate or Government Bond; Making a Loan (Lesson Plan: Where to Invest Money http://www.moneyinstructor.com/lesson/wh ereinvest.asp#LESSON_PRINTABLE_MA TERIALS_-_WORKSHEETS ) What is a stock? Stock Markets Capital Gains from Stock Market Investments Why People Invest in Stocks How to Buy and Sell Stocks (Activity: Ups and Downs of the Market http://www.teachnology.com/worksheets/math/stocks/ver3/) Do All Stocks Pay Dividends: Why or Why Not? Why Companies Issue Stock (Stock Market Web Quest: http://frontiernet.net/~jljkd/stock/ ) SS.8.FL.5.3 Discuss that when people buy corporate stock, they are purchasing ownership shares in a business that if the business is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stock’s value, that the increase in the value of an asset (like a stock) is called a capital gain, and if the business is not profitable, investors could lose the money they have invested. Topic(s): Stock Dividends Research and Calculate Stock Dividends Understanding the “Market” – Risks and Rewards (Lesson Plan: Why Study The Stock Market: http://financeintheclassroom.org/download s/WhyStudyStockMarket.pdf Financial Markets Buyers and Sellers in a Financial Market Consequences of a Stock Market Run S & P 500 SS.8.FL.5.4 Explain that the price of a financial asset is determined by the interaction of buyers and sellers in a financial market. Topic(s): Why the Stock Market Fluctuates Grade 5 Grade 6 Grade 7 Grade 8 How Stock Prices are Determined Bull Market – Bear Market The Cost of “Secure Investments” Investment Return Higher Investment Risk- Higher Rate of Return Lesson Plan: Risk and Return http://www.moneyinstructor.com/wsp/riskr w.asp SS.8.FL.5.5 Explain that the rate of return earned from investments will vary according to the amount of risk and, in general, a trade-off exists between the security of an investment and its expected rate of return. Topic(s): Investments: Risk and Return (Lesson Plan- Managing Risk http://lei.councilforeconed.org/docu ments/978-1-56183-572-0-activitylesson-18.pdf ) Protecting and Insuring Protecting and Insuring Protecting and Insuring Protecting and Insuring Financial Risks Financial Risk from Unexpected Events Managing Financial Risk (Lesson Plan- Understanding and Managing Risk http://www.pwc.com/us/en/aboutus/corporate-responsibility/corporateresponsibility-report2011/community/financial-literacycurriculum-pdfs/8-risk-management-3-5/1pwc-risk-management-3-5-lesson.pdf ) (Lesson: Economics of Disasters Activity ) Risk Management Strategies SS.8.FL.6.1 Analyze the fact that personal financial risk exists when unexpected events can damage health, income, property, wealth, or future opportunities. (Car Insurance Lesson: http://www.moneyinstructor.com/wsp/carlia bility.asp ) Topic(s): Personal Financial Risk Created by Unexpected Events Weathering the Storm: Ultimate Costs of Hurricanes (Lesson Plan Financial Planning for Catastrophe: http://www.thirteen.org/edonline/lessons/fe _planning/index.html#close ) What is Insurance? Identifying Different Forms of Insurance Consequences of Not Having Insurance (Lesson Activity – Insurance Inventory: What Financial Expenses are Covered By….? (Health Insurance, Liability Insurance, Car Insurance, etc.) Project-Based Learning for the Personal Finance Classroom ... ) I SS.8.FL.6.2 Identify insurance as a product that allows people to pay a fee (called a premium) now to transfer the costs of a potential loss to a third party. Topic(s): Insurance: Premiums and Protection Grade 5 Grade 6 Grade 7 Grade 8 The Structure of Insurance Companies (Video- Understanding Insurance With Professor Birdthistle https://www.youtube.com/watch?v=qDygB YoaoNg ) What is self-insuring? How to Self-Insure Opportunity Cost of Self -Insuring Benefits of Self-Insuring SS.8.FL.6.3 Describe how a person may self-insure by accepting a risk and saving money on a regular basis to cover a potential loss. Topic(s): Choosing Items/Costs to Self-Insure Calculations for Self Inurning Accepting Self-Insurance Risks Getting an Insurance Policy Insurance Premiums Insurance: Relationship Between Coverage and Premium SS.8.FL.6.4 Discuss why insurance policies that guarantee higher levels of payment in the event of a loss (coverage) have higher prices. Insurance: Higher Coverage = Higher Premium Lower Deductible- Higher Premium Insurance Coverage is Proportional to Premium Why Insurance Companies Charge a Higher Premium to “Bad Drivers” Life Insurance Premiums: Age Makes a Difference Factors that Affect Insurance Premiums SS.8.FL.6.5 Discuss that insurance companies charge higher premiums to cover higher-risk individuals and events because the risk of monetary loss is greater for these individuals and events. Topic(s): Insurance: Higher Risk = Higher Premium Accepting Risk Risk: Accept; Avoid; or Reduce Transferring Risk SS.8.FL.6.6 Explain that individuals can choose to accept some risk, to take steps Grade 5 Grade 6 Grade 7 Risk Management Strategies Grade 8 to avoid or reduce risk, or to transfer risk to others through the purchase of insurance and that each option has different costs and benefits. Topic(s): Insurance: Cost; Benefits; and Risk Options Risk: Choices and Consequences Insurance Decision-Making What is Identity Theft? (Video: Safe Online Shopping http://www.moneymanagement.org/Budget ing-Tools/Credit-Videos/MoneyTalks/SafeOnline-Shopping.aspx ) The Costs of Identity Theft Protection From Identity Theft (Lesson Plan: To Pay the Price https://www.kansascityfed.org/publicat/edu cation/teachingresources/Pay_the_Price_l esson.pdf ) (Video: The Protection Connection http://www.onguardonline.gov/media/video -0003-protection-connection ) SS.8.FL.6.7 Evaluate social networking sites and other online activity from the perspective of making individuals vulnerable to harm caused by identity theft or misuse of their personal information Topic(s): The Internet and Identity Theft Protecting Your Personal Information (Grade 6-8 Lesson Plan- Protecting Yourself From Online Identity Theft: http://bcpshelpdesk.weebly.com/uploads/4/ 8/6/4/4864176/3rd_9_weeks_securityprivatepersonal-lessonplan.pdf (Game Identity Theft FaceOff http://www.onguardonline.gov/media/game -0005-id-theft-faceoff )