Lesson Plan
Course Title: Principles of Business Management, Finance, and Marketing
Session Title: Personal Investment Plan
Performance Objective (LSI Quadrant 1- Why are we doing this?):
The purpose of this lesson is to examine investment growth by developing a personal investment plan and completing
an income tax statement.
Approximate Time:
4-5 days
Specific Objectives (LSI Quadrant 1- Why are we doing this?):
SWBAT (Student Will Be Able To):
 Identify and examine investment options
 Analyze investment options
 Prepare an income tax statement (1040EZ)
 Develop a personal investment plan
TERMS
Investment - the purchase of a financial product or item of value with an expectation of favorable future returns…the
use of money in the hope to make more money.
US Savings Bond - a registered, non-callable, non-transferable bond issued by the US Government and backed by its
full faith and credit.
Certificates of Deposit (CDs) - short or medium-term, interest bearing, FDIC insured debt instrument offered by banks
and savings and loans.
Mutual Fund s- an open-ended fund operated by an investment company which raises money from shareholders and
invests in a group of assets, in accordance with a stated set of objectives.
Stock - an instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its
proportional share in the corporation’s assets and profits.
Real Estate - a piece of land, including the air above it and the ground below it, and any buildings or structures on it.
Collectibles - rare, valuable items such as antiques, art, books, and coins, acquired for their value as an investment.
Commodities - a physical substance such as food, grains, and metals, which is interchangeable with another product of
the same type and which investors buy or sell.
Penny Stock - a stock which sells for less than one dollar per share, or in some cases less than five dollars per share.
Rate of Return - the rate of return on an investment is expressed as a percentage of the total amount invested and is
usually, but not always, calculated annually.
Income Tax Statement - a form used to record your yearly financial information and turned in to the IRS for tax
purposes.
W-2 - The form that an employer must send to an employee and the IRS at the end of the year. The W-2 form reports
an employee's annual wages and the amount of taxes withheld from his or her paycheck.
W-4 Form - a tax form prepared by an employee for an employer indicating the employee’s exemptions and social
security number, and enabling the employer to determine the amount of taxes to be withheld for the employee.
1040 EZ Form - income tax return for single and joint filers with no dependents. Must earn a yearly taxable income of
less than $100,000, interest income (from investments) of no more than $1500, and no dependents.
Personal Investment Plan - a person’s plan for his/her investment future.
Preparation
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1
TEKS Correlations:
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities may result in the
elimination of any or all of the TEKS listed.
130.112(c)
12) The student demonstrates an understanding of financial management. The student is expected to:
(F) examine investment growth by developing a personal investment plan and preparing an income tax statement.
Interdisciplinary Correlations:
English-English 1


110.31(b)(1). Reading/Vocabulary Development. Students understand new vocabulary and use it when reading and
writing.
110.31(b)(11). Reading/Comprehension of informational text/procedural texts. Students understand how to glean and use
information in procedural texts and documents.
Math-Algebra 1
111.xx(C)(1) Mathematical Process Standards. The student uses mathematical processes to acquire and demonstrate mathematical
understanding. The student is expected to:
 (A) apply mathematics to problems arising in everyday life, society, and the workplace;
 (B) use a problem-solving model that incorporates analyzing given information, formulating a plan or strategy, determining a
solution, justifying the solution, and evaluating the problem-solving process and the reasonableness of the solution;
 (C) select tools, including real objects, manipulatives, paper/pencil, and technology as appropriate, and techniques,
including mental math, estimation, and number sense as appropriate, to solve problems.
Occupational Correlation (O*Net – www.onetonline.org/ )
Job Title: Investment Underwriter
O*Net Number: 13-2099.03
Reported Job Titles: This title represents an occupation for which data collection is currently underway.
Tasks: Arrange financing of deals from sources such as financial institutions, agencies, or public or private agencies.
Structure or negotiate deals, such as corporate mergers, sales, or acquisitions. Develop and maintain client
relationships.
Soft Skills: Responsible, Autonomous, and Achievement Oriented.
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2
Teacher Preparation:
The teacher will review the terms in the outline, presentation slides, and any handouts to become familiar with the
lesson.
Teacher should locate and evaluate various resources and websites before the lesson.
Teacher will have assignments and website information ready to distribute to students.
References:
http://www.tea.state.tx.us/index2.aspx?id=6148&menu_id=720&menu_id2=785
NEFE High School Financial Planning Program (book)
http://njaes.rutgers.edu/money/riskquiz/default.asp
Instructional Aids:
Lesson 7.4- Personal Investment Plan presentation
Financial Plan Worksheet
The Advantage of Starting Young information sheet
Financial Plan Pyramid
1040 EZ Form
W2 Form
Materials Needed:
Lesson 7.4- Personal Investment Plan presentation
Financial Plan Worksheet
Financial Plan Pyramid Copies
1040 EZ Form Copies
W2 Form Copies
Financial Plan Report
Equipment/Software Needed:
Computers
Internet
Spreadsheet program
Learner Preparation:
If given $100,000 to invest, not spend, do you know what you would do with the money?
Introduction
Introduction (LSI Quadrant I- Why are we doing this lesson?):
To help students understand some basic information about investing, put together a simple personal investment plan,
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3
and give them the opportunity to fill out a 1040 EZ form.
ASK: Have you ever thought about your financial future?
ASK: Did you know people can make money when they sleep?
SAY: Just like an athlete can train his/her body to burn calories while at rest, so can a person ‘burn calories’ (in this
case, make money) while they sleep. It is dependent on whether or not investments have been made. They can
also ‘gain weight’ (in this case, lose money) while they sleep, too.
ASK: Do you know what kind of investor you would be? Low Risk, Medium Risk, or High Risk.
ASK: Do you know what two things need to be determined first before you can start to plan your investments?
Outline
Outline (LSI Quadrant II- What are we doing in this lesson?):
Instructors can use the presentation slides, handouts, and note pages in conjunction with the following outline.
MI
I.
Outline
Discovery
A. Online search ‘personal
financial plan’
II. Introduction
A. Introduce the ‘why’ of the
lesson
1. Why we are doing this
assignment
2. Need to Know Terms.
The Advantage of Starting Early Chart.
III. Guided Practice 1
A. Financial Plan Worksheet.
Notes to Instructor
There are many, many options out there
and guides as to what a person should
do, so much information to comb
through. Point out to students what they
will be doing is one option. When it
comes down to it, financial planning is a
personal decision on how to handle it.
Use the provided objectives and terms
by method of choice.
Share with students The Advantage of
Starting Early Chart to show them how
investing can help you ‘burn’ calories
while you sleep.
Help students estimate income and
expenses and fill out the first sheet of
the financial plan worksheet. You can
brainstorm the data together, or have
them pick a career, car, and place to live
and let them do their data. One has
been provided with sample information.
In the sample provided, there is a
$175.00 difference in income and
expenses. This is the amount that can
potentially be used for investment
purposes.
You can also add in categories such as
charitable donations, tithing, etc. and/or
Copyright © Texas Education Agency, 2012. All rights reserved.
4
delete/edit the existing categories. Once
students see where the money comes
from to invest, then move to the next
stage.
IV. Independent Practice 1
A. What kind of investor am I?
V. Guided Practice 2
A. Financial Plan Pyramid.
VI. Independent Practice 2
A. Personal Financial Plan.
VII. Guided Practice 3
A. Filling out an income tax
return form (1040 EZ).
Use the online quiz of your choice to
allow each student to evaluate the type
of investor they are. Once each student
has taken the test, you may want to
record your class’ answers and then
partner/group them with like-minded
students, or pair up a low-risk with a
high-risk, etc. as if they might be
‘married.’ Or, they can continue the
lesson on their own.
Once students have determined their
risk level, use the provided Financial
Plan Pyramid (.pdf, .doc, and ppt) to
help gauge what types of investments
match up with your students. This helps
them see what different types of
investments would be good for them
based on their risk level. You may also
want to give them copies of this, so they
can identify (circle/highlight) which
investments they want and the dollar
amount they want to put with each type
of investment.
Based on the amount they have to invest
(taken from the Financial Plan
worksheet) and the types of investments
they would be willing to make (based on
the Financial Plan Pyramid), have
students determine the following:
 How much money do I have to
invest after a 3-month time
period?
 How will I invest it?
 Why?
Use the provided form (.pdf). Read
through each part of the form and go
through this with them (may want to use
an overhead/document camera for this).
This, and other forms, can be found at
http://www.irs.gov/formspubs/index.html.
You can also use the blank W2 form
provided, or you can find the same form
at the same website listed above. You
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5
may want to provide information in the
W2 form and make copies for everyone
prior to filling out the 1040 EZ Form. A
completed W2 Form is not provided.
VIII.
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Summary
A. Revisit objectives and
ask summary questions.
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Objectives are provided in this document
and summary questions are provided in
the presentation
Interpersonal
Naturalist
Existentialist
Application
Guided Practice 1 (LSI Quadrant III- How are we going to do this?):
Have students download the Financial Plan Worksheet and help them go through the first sheet tab.
Independent Practice 1 (LSI Quadrant III- How are we going to do this?):
Have students complete sheet tabs 2 and 3 on their own. Point out there probably will be differences in total wages for
each month if they are recording wages, not salary, like the example.
Guided Practice 2 (LSI Quadrant III- How are we going to do this?):
Have students determine which types of investments they would make based on the amount of income they have to
invest after a 3-month period. (Amount is determined after doing the Financial Plan Worksheet).
Independent Practice 2 (LSI Quadrant III- How are we going to do this?):
Once students have determined which types of investments they would like to make (guided practice), have them
determine how much of their investment money (based on the total amount they have to invest after the 3-month period
from the Financial Plan Worksheet) they would like to invest in each type. For example: Amount Available to
Invest=$500. $100=Growth Mutual Funds, $200=Mutual Fund, and $200=Collectibles.
Guided Practice 2 (LSI Quadrant III- How are we going to do this?):
Have students fill out a 1040 EZ tax return form.
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Summary
Review (LSI Quadrants I- Why are we doing this lesson? and IV- Extending the lesson):
To help students answer the following questions:
 What do I need to do to set up a financial plan?
 How do I fill out a 1040 EZ Form?
To also give them time and practice, give them guidance, and show them online resources available to help
get a plan started.
To extend the lesson, have students research and find specific interest rates and/or rates of return on their
investment choices.
Review (LSI Quadrants I- Why are we doing this lesson? and IV- Extending the lesson):
To help students answer the following questions:
 What do I need to do to set up a financial plan?
 How do I fill out a 1040 EZ Form?
To also give them time and practice, give them guidance, and show them online resources available to help
get a plan started.
To extend the lesson, have students research and find specific interest rates and/or rates of return on their
investment choices.
Evaluation
Informal Assessment (LSI Quadrant III):
Walk around and spot check students as they work on their own.
Give deadlines for different stages of the assignment.
Formal Assessment (LSI Quadrant III, IV):
Financial Plan Report
Extension
Extension/Enrichment (LSI Quadrant IV-Extending the lesson):
To extend the lesson, have students research and find specific interest rates and/or rates of return on their
investment choices.
Copyright © Texas Education Agency, 2012. All rights reserved.
7
Formal Assessment (LSI Quadrant III- How are we going to do this?
Financial Plan Report
Grading Rubric- None Provided.
There is a key provided for this short answer test. There are 10 questions and each question can be worth 10
points, or you can weight the questions at your discretion based on importance.
Copyright © Texas Education Agency, 2012. All rights reserved.
8
The Advantage of Starting Early
You
Age
18
19
20
21
22
23
24
25
26
27
7% Saving
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
$ 2,000.00
NO FURTHER INVESTING FROM AGE 27 TO 65
Total Investment=$20,000
YOUR TOTAL @ AGE 65:
$361,418
Your Sister
Age
7% Saving
Total Investment=$70,000
NO INVESTING UNTIL AGE 31
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
2,000.00
YOUR SISTER'S TOTAL @ AGE 65:
$276,474
YOUR DIFFERENCE DUE TO STARTING EARLY: $84,944
Source: NEFE High School Financial Planning Program, Student Guide
Financial Planning Pyramid Source: NEFE High School Financial Planning Program Student Guide Highest Risk/ Highest Earnings Commodities and Penny Stock Collectibles and Speculative Stock/Bonds/Mutual Funds Blue‐Chip Common Stock, Real Estate, and Growth Mutual Funds Balanced Mutual Funds, High‐Grade Preferred Stock, and High‐Grade Convertible Bonds Lowest Risk/ Lowest Earnings Money Market Account or Mutual Funds, High‐Grade Municipal Bonds or Mutual Funds, and High‐Grade Corporate Bonds or Mutual Funds Insured Savings/Checking Accounts, US Savings Bonds, Certificates of Deposit, and Treasury Issues
[Type text] Income
Particulars
Amt ($)
Wages/Salary
$
Commission
$
Interest Earned
$
Miscellaneous Incomes
$
Income Total
$
3,000.00
100.00
3,100.00
Expenses
Particulars
Amt ($)
Mortgage Payments/Rent
$
800.00
Groceries
$
200.00
Household Products
$
50.00
Electricity
$
100.00
Water and Sewer
$
50.00
Petrol/Gas (car)
$
200.00
Car Payment
$
250.00
Credit Card Bills
$
300.00
Cable TV
$
100.00
Internet
$
25.00
Cell Phone
$
100.00
Hobbies/Entertainment
$
500.00
Gym/Spa Membership
$
50.00
Miscellaneous Expenses
$
200.00
Total Expenses
$
2,925.00
Savings (Total Income – Total Expenses)
$
175.00
Income
Particulars
Amt ($)
Wages/Salary
Commission
Interest Earned
Miscellaneous Incomes
Income Total
$
-
Expenses
Particulars
Amt ($)
Mortgage Payments/Rent
Groceries
Household Products
Electricity
Water and Sewer
Petrol/Gas (car)
Car Payment
Credit Card Bills
Cable TV
Internet
Cell Phone
Hobbies/Entertainment
Gym/Spa Membership
Miscellaneous Expenses
Total Expenses
$
-
Savings (Total Income – Total Expenses)
$
-
Financial Plan Report 1. Based on the Financial Plan Worksheet Data, how much money will you have to invest at the end of a 3‐month period? Click here to enter text. 2. What type of investor are you? Click here to enter text. 3. What types of investments go with which type of investor you are? Click here to enter text. 4. How would you invest your money? Use the chart and a calculator to fill in the table. Amount Type of Investment Percentage 5.
6.
7.
8.
9.
10.
Investment 1 Investment 2 Investment 3 Investment 4 Investment 5 Note: To add rows, highlight the last row>right click>insert row. What are some advantages to starting out young when investing? Click here to enter text. What are some disadvantages to starting out young when investing? Click here to enter text. What are some advantages to waiting until you’re older to start investing? Click here to enter text. What are some disadvantages to waiting until you’re older to start investing? Click here to enter text. What is the maximum amount of total earned interest you are allowed in a year to be able to use the 1040 EZ Form? Click here to enter text. Are individual, yearly investment totals reported on a W2? Click here to enter text. Copyright © Texas Education Agency, 2012. All rights reserved. Financial Plan Report 1. Based on the Financial Plan Worksheet Data, how much money will you have to invest at the end of a 3‐month period? Answers will vary. 2. What type of investor are you? Answers will vary. 3. What types of investments go with which type of investor you are? These should match up with the Financial Plan Pyramid, so have them turn in that form with the test. 4. How would you invest your money? Use the chart and a calculator to fill in the table. Answers will vary. Amount Type of Investment Percentage 5.
6.
7.
8.
9.
10.
Investment 1 Investment 2 Investment 3 Investment 4 Investment 5 Note: To add rows, highlight the last row>right click>insert row. What is one, main advantage to starting out young when investing? Invest for less amount time and get more @ retirement. Answers may vary. What is one, main disadvantage to starting out young when investing? Don’t want to tie up money in an investment that you can’t get to until age 65. Answers may vary. What are some advantages to waiting until you’re older to start investing? You have all the money you’ve earned available to spend right now. Answers may vary. What are some disadvantages to waiting until you’re older to start investing? You may not have as much to invest. Answers may vary. What is the maximum amount of total earned interest you are allowed in a year to be able to use the 1040 EZ Form? $1500.00 Are individual, yearly investment totals reported on a W2? No Copyright © Texas Education Agency, 2012. All rights reserved.