Principles of Money
Course Title – Money Matters
Lesson Title – Principles of Money
Specific Objective – Identify and explain the three functions of money..
Performance Objectives:
The learner will:
 Define what a medium of exchange is in economic terms.
 Describe the economic meaning of money.
 Explain the functions of money.
TEKS: 130.162.(c)(2)(A)(B)(C)
Approximate Time: 2 days
Occupational Correlation (O*Net – http://www.onetonline.org/)
41-2011.00 – Cashiers
Similar Job Titles: Cashier, Sales Associate, Checker, Clerk, Customer Assistant,
Motel Clerk, Admissions Gate Attendant, Central Aisle Cashier, Customer Service
Representative (CSR), Toll Collector

Receive payment by cash, check, credit cards, vouchers, or automatic debits.

Issue receipts, refunds, credits, or change due to customers.

Assist customers by providing information and resolving their complaints.

Establish or identify prices of goods, services or admission, and tabulate bills
using calculators, cash registers, or optical price scanners.

Greet customers entering establishments.

Answer customers' questions, and provide information on procedures or
policies.

Sell tickets and other items to customers.

Process merchandise returns and exchanges.

Maintain clean and orderly checkout areas and complete other general cleaning
duties, such as mopping floors and emptying trash cans.

Stock shelves, and mark prices on shelves and items.
Preparation
Materials Needed:


A bill form of currency in any denomination
Common items from classroom – stapler, tape, pen, calculator, tablet, etc.
Equipment Needed:

Computer with projection
Copyright © Texas Education Agency, 2012. All rights reserved.
1
Learner Preparation:
Hold up any denomination of currency and ask students to identify what it is.
(Answers will vary but may include money, a dollar bill, a piece of currency, etc.)




Divide students into groups of four.
Give each group an item from the classroom such as one of the following:
stapler, tape, pen, calculator, tablet or a related or similar item.
Instruct each group to identify one to two functions for its item.
Call on groups to share answers by writing their group number, item identified,
and function of the item on the board.
(Answers will vary, but might include: stapler—attaching papers, maybe removing
staples; pen—recording information, drawing; calculator—tabulating numbers;
tablet —surface for recording information, for drawing)
Teaching Strategies:
Draw students’ attention to the “Functions of Money” slide from the lesson
PowerPoint. Explain that money—like staplers, tape, pens, calculators and many
other items—performs three important functions.
• Medium of exchange: It can be used to buy goods and services. Usually, to
be a good medium of exchange, an item used as money should be generally
acceptable, durable, portable, divisible and relatively scarce.
• Store of value: It keeps its purchasing power over time. People expect to be
able to hold money and use it in the future to buy goods and services.
• Unit of account: It indicates how much different goods and services are
worth. In stores in the United States, prices are recorded in dollars and cents.
Introduction:
Important Terms for this Lesson:
 Money
 Currency
 Note
 Medium of exchange
 Store of value
 Unit of account
Assessment:




Divide students into groups of 4-5 and assign each group one of the three
functions of money.
Instruct the groups to create a short skit or vignette that illustrates that function.
The class will guess which function of money the group is
portraying after each skit is performed.
Give students approximately five minutes to plan their skit. Use the skits as an
opportunity to reinforce the concepts of “medium of exchange,” “store of value”
and “unit of account.”
Copyright © Texas Education Agency, 2012. All rights reserved.
2
Additional Resources:
Websites:
"Once Upon a Dime." Economic Education Web. N.p., n.d. Web. 18 Jan. 2012.
<ecedweb.unomaha.edu/ve/library/DIME.PDF>.
Adapted from "Currency and the Fed." Federal Reserve Bank of St. Louis. N.p.,
n.d. Web. 19 Jan. 2012. <www.stlouisfed.org/education_resou
Introduction
Introduction (LSI Quadrant I):
Hold up any denomination of currency and ask students to identify what it is.
(Answers will vary but may include money, a dollar bill, a piece of currency, etc.)




Divide students into groups of four.
Give each group an item from the classroom such as one of the following:
stapler, tape, pen, calculator, tablet or a related or similar item.
Instruct each group to identify one to two functions for its item.
Call on groups to share answers by writing their group number, item
identified, and function of the item on the board.
(Answers will vary, but might include: stapler—attaching papers, maybe
removing staples; pen—recording information, drawing; calculator—tabulating
numbers; tablet —surface for recording information, for drawing)
Copyright © Texas Education Agency, 2012. All rights reserved.
3
Outline
Outline (LSI Quadrant II):
Instructors can use the presentation, slides, handouts, and note pages in conjunction
with the following outline.
MI
Outline
I. Define “Money”
A. Money makes it easier to trade, borrow, save, invest,
and compare the value of goods and services
B. Other terms that can be used to describe the ‘bill’
held up: dollar bill, a piece of currency
Notes to Instructor
Use the Presentation as
an aid
Hold up a bill of any
denomination, and ask
students what it is
Ask students to define
“money” before you
provide the definition.
II. Functions of money group activity
Use Presentation as aid
 Divide students into
groups of four.
 Give each group a
common item from the
classroom – stapler,
tape, pen, calculator,
etc.
 Instruct each group to
share answers by
writing their group
number, item
identified, and function
on the board.
 At the end of the
activity, ask students
what functions they
need from money.
III. A Good Medium of Exchange – 5 factors
A. Generally acceptable
B. Durable
C. Portable
D. Divisible
E. Relatively scarce
Discuss with students the
five elements of a good
medium of exchange.
Refer to Slide #6 from
the Presentation
Copyright © Texas Education Agency, 2012. All rights reserved.
4
IV. A Store of Value – Makes it easier for people to save
and defer consumption until the future.
A. It keeps its purchasing power over time
B. People expect to be able to hold money and use it in
the future
Refer to Presentation
slide #7.
V. Unit of Account
A. How much goods and services are worth
B. In the U.S., prices are recorded in dollars and cents
Refer to Presentation
slide #8
VI. Examine other mediums to determine if they would
serve effectively as money:
A. Bananas?
B. Seashells?
C. Cows?
D. Plastic Coins?
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Interpersonal
Refer to Presentation
slides 9-12
Naturalist
Copyright © Texas Education Agency, 2012. All rights reserved.
5
Existentialist
Guided Practice (LSI Quadrant III):
Examine other mediums to determine if they would serve effectively as money: Refer to slides 9-12 (and
notes pages)
1. Bananas?
2. Seashells?
3. Cows?
4. Plastic Coins?
Discuss with students items used as money that are no longer used and why. (Refer to slide 13).
Independent Practice (LSI Quadrant III):
1. Divide students into groups of 4-5 and assign each group one of the three functions of money.
2. Instruct the groups to create a short skit or vignette that illustrates that function. The class will
guess which function of money the group is
3. portraying after each skit is performed.
4. Give students approximately five minutes to plan their skit. Use the skits as an opportunity to
reinforce the concepts of “medium of exchange,” “store of value” and “unit of account.”
5. Record student performance on Skit Rubric.
Summary
Review (LSI Quadrant I & IV): Group activity – skits illustrating the functions of
money.
Evaluation
Informal Assessment (LS1 Quadrant III):
Instructor should observe the work
ethic of individuals involved in class discussions and the independent practice activity.
Formal Assessment (LSI Quadrant III, IV): Students will be evaluated on their
contribution, participation, and performance of the skit assignment utilizing rubric provided.
Extension
Extension/Enrichment (LSI Quadrant IV): Find and view video of “Once
Upon a Dime” and read the “Once Upon a Dime” comic book.
Copyright © Texas Education Agency, 2012. All rights reserved.
6
GRADING RUBRIC – FUNCTION OF MONEY SKIT
Group Members:
Date: _______________________
_______________________________________
Period _______________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
Skits
Good
5 pts
Relevant to Discussion/Topic
2 pts
Creative
1 pts
Equal Participation
1 pts
Quality of Presentation
1 pts
Fair
3 pts
Good
Student’s skit was relevant to
the topic of discussion. They
clearly demonstrated that
they understood the topic and
what it was they were to
learn in a positive way.
Good
Student’s skit was creative
and unique, they used the
information that they had on
the topic, and used it very
well in the skit.
Good
The students in the group
participated fully and had an
impact on the message in
relevance to the information
covered.
Poor
1 pts
Fair
Student’s skit was somewhat
relevant to topic of
discussion, they
demonstrated that they had
somewhat of an
understanding for what was
intended to learn but didn’t
properly play out the skit.
Poor
Students skit was irrelevant
to the topic, it was clear that
they didn’t understand what
they were supposed to learn.
Fair
Student’s skit was somewhat
creative and original. They
incorporated some of the
information that they had on
the topic in the skit.
Poor
Student’s skit was not
creative or original. They
showed no indication of the
information that they had on
the topic.
Fair
Poor
The students in the group had
somewhat full participation,
but not impacted the
message in relevance to the
information covered.
Students in the group didn’t
have full participation in the
group and information wasn’t
relevant to information
covered.
Good
Fair
Poor
Students were entertaining.
Students used good voice
projection and body
positioning. Students were
confident and well-rehearsed.
Good eye contact.
Students’ voice projection and
body positioning were
satisfactory. Students were
slightly confident but little or
no eye contact.
Students performed to
minimal standards. Student
did not use voice projection or
good body positioning.
Students were not confident
and very nervous.
Copyright © Texas Education Agency, 2012. All rights reserved.
7