Financial Planning and Management
Course Title: Money Matters
Lesson Title: Introduction to Financial Planning and Management
Specific Objective: The student will understand why financial planning and
management is important.
Performance Objectives: The student will:

Describe how financial planning and management will contribute to future
success
 Describe financial capability
 List examples of how events affect personal financial success.
Time: Instruction time: 60 minutes, which may vary depending on teaching
style. Activities will also affect time needed to complete lesson – depending on
the number and nature of activities chosen.
Preparation
TEKS:
130.162.(c):
(1) The student uses career planning concepts, tools, and strategies to explore,
obtain, and develop a career in the area of financial planning. The student is
expected to:
(A) Discuss the nature and benefits of financial planning;
(B) Discuss the role of ethics and personal responsibility in financial
planning; and
(10) The student analyzes personal financial needs and goals based on current
and projected economic factors. The student is expected to:
(A) Explain the nature of financial needs, including college, retirement, wills,
and insurance.
Occupational Correlation (O*Net – http://www.onetonline.org/)
13-2052.0 - Personal Financial Advisors
Similar titles: Financial Advisor, Portfolio Manager, Financial Planner, Account
Executive, Registered Representative, Investment Advisor, Financial Consultant,
Financial Counselor, Analyst, Certified Financial Planner (CFP)
Tasks:
 Sell financial products such as stocks, bonds, mutual funds, and insurance if
licensed to do so.
 Build and maintain client bases, keeping current client plans up-to-date and
recruiting new clients on an ongoing basis.

Analyze financial information obtained from clients to determine strategies for
meeting clients' financial objectives.

Answer clients' questions about the purposes and details of financial plans
and strategies.

Review clients' accounts and plans regularly to determine whether life
changes, economic changes, or financial performance indicate a need for
plan reassessment.

Interview clients to determine their current income, expenses, insurance
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coverage, tax status, financial objectives, risk tolerance, or other information
needed to develop a financial plan.

Recommend strategies clients can use to achieve their financial goals and
objectives, including specific recommendations in such areas as cash
management, insurance coverage, and investment planning.

Implement financial planning recommendations or refer clients to someone
who can assist them with plan implementation.

Research and investigate available investment opportunities to determine
whether they fit into financial plans.

Explain and document for clients the types of services that are to be provided,
and the responsibilities to be taken by the personal financial advisor.
Materials Needed:
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Mock Money – $200 per student – There are many internet sites that provide
free downloadable and printable money templates.
Financial Capability Model Descriptors – One set per group, and cut up so
that each group of three students has a complete set of descriptors.
Extended Activity About the Future – One per student
Quiz – Financial Planning & Management – One per student
Personal Finance Calculators – Use your favorite online calculator.
Descartes eMoment
Equipment Needed:


Whiteboard/Chalkboard
Computer with internet and presentation software and equipment
Learner Preparation:
 Welcome students to class by giving them each $200 of mock money
 Set up the scenario for the students that each of them received $200 for their
birthday. Ask them to decide individually how they plan to use the money,
and write it down on a piece of paper. They can plan to spend it all on one
item or multiple items. They can plan to save it, invest it or pay debts with it.
It is totally their decision.
 Once the students have written down their plans for their $200, discuss their
decisions with the rest of the class. Explain that we do not all think alike, and
that their decisions, and the way they arrive at them, are different.
 Lead them by mentioning that the lesson will present them with beginning
knowledge about managing their personal finances, so it is relevant and will
help them to think critically and futuristic throughout the lesson.
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Introduction:

Important Terms for this Lesson:
o Economy
o Financial capability
o Financial planning
o Financial responsibility

Utilize Presentation as a guide through this lesson.

Discuss with the students that in this lesson and in future lessons the term
financial capability will be used and it has four components: managing
money, planning ahead, choosing products, and staying informed.

After opening the Presentation slide, and advancing to the slide on Financial
Capability, pause for group activity.

Have students work in groups of three in an attempt to assemble the
Financial Capability model. Cut up the descriptors only from a printed copy
of the model so that each group has a set. Have students copy what is
displayed on the slide and place the descriptors under the headings where
they think they belong. After students have made their choices, display the
complete model contained in the Presentation to go through the correct
answers to see how they did. Have students copy the model in their notes as
it is being discussed.
Assessment:
1. Quiz
2. Descartes Moment –
a. Pose three questions. As you begin the unit or lesson, pose the following
three questions to your students: What do you know about this topic?
What do you think you understand? What don’t you understand? (You
may want to introduce students to the questions one at a time to focus
their thinking.)
b. Students write letters to themselves. Students compose a letter to
themselves (Descartes was a writer as well as a philosopher) explaining
what they know, and what they don’t understand about the topic. Allow
about one to three minutes for thinking and writing on each question. You
may want to have students share aloud after the first two questions to
stimulate other students’ thinking.
c. Collect the letters. The information is valuable for your lesson planning
and assessment.
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Additional Resources:
Websites:
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"Early Retirement Investing." How To Avoid Those Nasty Retirement Shocks.
N.p., n.d. Web. 6 Jan. 2012. <earlyretirementinvesting.net/how-to-avoidthose-nasty-retirement-shocks >.
"Introduction to Financial Planning."ThinkQuest : Library. N.p., n.d. Web. 13
Dec. 2011. <http://library.thinkquest.org/3478/1.h
Adapted from "FFA Learn." Financial Planning and Management. N.p., n.d.
Web. 17 Jan. 2012. <https://www.ffa.org/FFAResources/ffalea
Adapted from "FFA LK e-Moments.vp - Tarleton State University." eMoment
Descartes Moment. N.p., n.d. Web. 17 Jan. 2012.
<www.tarleton.edu/~deltaconference/
Adapted from "http://hsfpp.nefe.org." NEFE High School Financial Planning
Program. N.p., n.d. Web. 17 Jan. 2012.
Adapted from "Jump$tart Coalition Survey of Personal Financial Literacy
Among Students ."http://www.jumpstart.org/survey.html. N.p., n.d. Web. 17
Jan. 2012. <The Jump$tart Coalition for Personal Financial Literacy. (2010).
2008 JUMP$TART HIGH SCHOOL SENIOR QUESTIONNAIRE>.
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Financial Capability Model Descriptors
One set for each group of 3
Cut up so that each group of three students has a complete set of descriptors.
Be making ends
meet
Keep track of
their finances
Plan for
predictable
future expenses
Have some
provisions to
cover loss of
income
Shop around
to get the best
value financial
products
Keep abreast of
things likely to
impact their
finances
Be able to meet
a major
expense without
borrowing
Take steps to
ensure they
get the
products that
were most
suitable for
them
Know key
features of the
products they
hold
Make sure
they know
what is in the
“small print”
Be able and
willing to deal
with problems
or complaints
should they
arise
Have made
provisions for
anticipated
major expenses
Be making
adequate
provisions for
their retirement
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Name: _____________________ Date: _________ Period: _____
What will the future look like?
By the time I am 18, I
will be…
To get there I need to:
The money I need
would be:
By the time I am 25, I
will be…
To get there I need to:
The money I need
would be:
By the time I am 45, I
will be…
To get there I need to:
The money I need
would be:
By the time I am 60, I
will be…
To get there I need to:
The money I need
would be:
By the time I am 75, I
will be…
To get there I need to:
The money I need
would be:
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Name: _____________________ Date: ___________ Period: ______
Quiz - Financial Planning & Management
Part 1: Multiple Choice – Identify the correct response to each of the following statements.
Write the letter corresponding to the correct answer in the space provided to the left of each
item.
___1. How does the economy affect your personal financial success?
a. The government can change how much you need in terms of retirement
b. The government can change how much taxes they will levy
c. Interest rates can rise which affects payments
d. All of the above
___2. What are the components of being financially capable?
a. Making money, planning ahead, buying products, saving extra money
b. Managing money, planning ahead, choosing products, staying informed
c. Managing money, considering the economy, choosing products, watching the stock market
d. Saving money, preparing for the future, bargain shopping, staying informed
___3. Being financially competent will
a. Make you more aware that financial decisions and actions are closely linked with social and
ethical dimensions.
b. Allow you to make more money
c. Teach you how to change the economy
d. None of the above
Part 2. Matching – Read each statement carefully. Select the term that best matches the
statement by writing the letter of the matching term in the blank.
The following are components of being financially competent
___4. Nature of money and insight into its functions
and uses
___5. Apply knowledge and understanding of financial
matters across contexts
a. Financial Responsibility
b. Financial Skills and
Competences
c. Financial Knowledge
___6. Understand how decisions can impact individuals,
family, and community
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Name: _______________________________
Quiz – Financial Planning and Management (p. 2)
Part 3. Short Answer – Respond to the following questions using information learned in class.
List two components of the Financial Capability model and for each component give two examples
on how you will meet that component.
7. Component 1: ________________________________________________________________
Example 1: __________________________________________________________________
Example 2: __________________________________________________________________
8. Component 2: ________________________________________________________________
Example 1: __________________________________________________________________
Example 2: __________________________________________________________________
Give two examples of why it is important to consider the economic situation when you are considering
any financial action.
9. Example 1: __________________________________________________________________
10.Example 2: __________________________________________________________________
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Quiz on Financial Planning and Management – KEY
1. D
2. B
3. A
4. C
5. B
6. A
7-8. Components can include Managing money, planning ahead, choosing products, or staying
informed. Examples will vary.
9-10. Answers will vary.
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Outline
Outline (LSI Quadrant II):
Instructors can use the presentation, slides, handouts, and note pages in conjunction with the
following outline.
MI
Outline
A. Discuss with students that being financially competent
includes three different aspects.
B. Have students make note of the three aspects from the
slide as you discuss each
Notes to Instructor
Use Presentation as aid.
Explain that financial
knowledge and
understanding is the first
aspect. It consists of
understanding the nature
of money and insight
into its functions and
uses.
Explain that financial
skills and competencies
are the next step in
learning about personal
finance. This is applying
knowledge and
understanding of
financial matters across a
range of contexts:
personal situations as
well as situations beyond
our immediate control.
Financial responsibility
is the final step in
learning about personal
finance. It means to
understand how financial
decisions can impact the
person making a
financial decision, their
family and community.
Summarize that we all
need financial
knowledge, skill, and a
sense of responsibility
for future success.
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C. Discuss with the students that in this lesson an in future
lessons the term financial capability will be used and it
has four components:
1. managing money,
2. planning ahead,
3. choosing products, and
4. staying informed.
Use Presentation as aid.
After opening the slide,
pause for group
activity… Have students
work in groups of three
in an attempt to assemble
the Financial Capability
model.
Cut up the descriptors
only from a printed copy
of the model so that each
group has a set.
Have students copy what
is displayed on the slide
and place the descriptors
under the headings where
they think they belong.
After students have made
their choices, display the
complete model (next 2
slides) to go through the
correct answers to see
how they did.
Have students copy the
model in their notes as it
is being discussed.
D. Think about historic examples of events where people
have changed their spending. Discuss the events listed
on the slide.
E. Crisis events occur and everyone should try to prepare
as much as possible for these. Other things can also
affect your personal finances.
Use Presentation as aid.
Discuss students’
knowledge of events:

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
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
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

F. Discuss with students that there are always events that
take place that are beyond our control when it comes to
financial success.
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Great Depression
Pearl Harbor
9/11
Housing fall
Unemployment
trends
Stock market
changes
Taxes
Retirement funding
Interest rates
Inflation
Use Presentation as aid.
Ask students to come up
with events and times
where people have
changed their spending.
Government can change
the amount of taxes they
take
Government can change
how much you need in
terms of retirement
Inflation affects your
finances because it raises
the price of goods.
Verbal
Linguistic
Logical
Mathematical
Visual
Spatial
Musical
Rhythmic
Bodily
Kinesthetic
Intrapersonal
Interpersonal
Naturalist
Existentialist
Application
Guided Practice (LSI Quadrant III):
•
•
Discuss with students that there are always events that take place that are beyond our control
when it comes to financial success.
Ask students to come up with events and times where people have changed their spending. Write
student examples on the display you are using – whiteboard, smartboard, chalkboard… Add to
students’ list the following, which is also a review of concepts covered in the lesson.
1. Government can change the amount of taxes they take
2. Government can change how much you need in terms of retirement
3. Inflation affects your finances because it raises the price of goods;
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Summary
Review (LSI Quadrants I and IV):
Question: How will financial planning and management contribute to future success?
Question: What are the three aspects of being financially competent?
Question: What are the components of the financially capability model?
Question: What are some historic examples of events where people have changed their spending?
Question: What were some of the events and times where people changed their spending?
Question: What is the definition of “economy” as it is used in this lesson?
Question: What is definition of “Financial capability” as it is used in this lesson?
Question: What is the definition of “Financial Planning” as it is used in this lesson?
Question: What is the definition of “Financial responsibility” as it is used in this lesson?
Evaluation
Informal Assessment (LSI Quadrant III):
Instructor should observe the work ethic of individuals involved in class discussions and the
Extension/Enrichment activity – “What Will the Future Look Like?”
Formal Assessment (LSI Quadrant III, IV):
Students will be evaluated on the Quiz based on their answers to same according to the KEY. (Quiz
p. 7-8, KEY p. 9 of this Lesson plan resource)
Extension
Extension/Enrichment (LSI Quadrant IV):
“What will the future look like?” (p. 6 of this Lesson plan resource)
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