Unit 1: Introduction to Personal Finance

Examine the charts, graphics, and reading
excerpts in Chapter 2: Savings.
o Make a list of questions you would like to have
answered as we go through the chapter.

WB: Before You Begin, pgs. 30-31
o Review the Learning Outcome objectives and Key
Terms
o Complete the “Before” column on the “Measure Your
Progress” chart

Journal:
What are your initial thoughts about saving?
2. What do you want to learn about saving?
1.
Section 1

Video (15 minutes): The Five Foundations

Journal:
What has kept you from saving in the past?
2. Based on what you’ve learned, how can you change
this?
1.

Reading:
o Are Americans Good Savers? (p. 33)
o How Can I Save $500 Quickly? (p. 35)

What is the purpose of the Five Foundations?
o These steps serve as a compass or framework for
financial success.

What does it mean to have a negative savings
rate?
o On average, people are spending more than they are
making.

Why do you think Americans, in general, are not
good savers?

How can having an emergency fund help you to
protect and grow your wealth?
o If you have an emergency fund, you will be able to
weather those big unexpected expenses without
throwing your finances off track.

Look at the list of 10 ways teens can come up with
$500 quickly. Which of those ideas might or have
worked for you?

Activity:
o Saving By Nation (25 Minutes)

Homework: Create a mini poster of the Five
Foundations
o Picture representation of each of the Five
Foundations
o Label for each drawing
o Brief description of how you plan to follow through
with each step.

Group Project: In groups of three, develop a
multimedia presentation of the five foundations,
meeting these criteria:
o
In depth description of the Five Foundations
1. What is the purpose of each foundation?
2. Why is each foundation important?
3. How will each foundation impact your financial success?
o
Each person in the group must be present in the
video/audio.
Section 2

Video 2.1 (9 minutes): Save Money for Three
Basic Reasons

Journal:
1.
Explain how having an emergency fund helps
protect your wealth.

What are three basic reasons to save money?
o Emergency fund, large purchases, wealth building.

Is saving a few bucks a month worthwhile?
Explain.

Video 2.2 (11 minutes): Purchases

Journal:
1.

Why do you think so many people borrow money for
large purchases instead of using a sinking fund?
Read: Ready to start saving? (p. 38)

When can you begin building wealth?
o Hold off on investing until you have a fully funded
emergency fund and your education is completely
paid off.

What is the key ingredient when it comes to
building wealth?
o Discipline

Activity: Sinking Fund Savings

Video 2.3 (7 minutes): Wealth Building

Journal:
1.
How is saving an exercise of your character?
Section 3

Video 3.1 (13 minutes): What is Interest?

Read:
o What is interest? (p. 41)
o How to calculate compound interest (p. 41)
o Compound interest (p. 42)

Journal:
Why don’t more people save for the future?
2. Which reasons can be fixed by having a money plan?
1.

What is compound interest?
o It is interest paid on interest previously earned.

How can compound interest help you grow
wealth?
o As time passes, the amount you earn from interest
grows. It allows your money to earn more money.

What excites you the most about investing?

Define inflation:
o The persistent rise in the price of goods and services
over a period of time.

Explain the time value of money.
o A certain amount of money today has different buying
power than the same amount of money in the future
due to both the opportunity to earn interest on the
money and because inflation will drive prices up.

Can you think of anything that has significantly
increased in price during your lifetime?
o Gas, groceries, etc.

Activity:
o Saving: A Way to Build Wealth (20 Minutes)
o Rate of Return (20 Minutes)

Chapter Summary

Take Action Challenge, pg. 44

Budget Builder – foundationsU.com/2

Complete the “After” column on the “Measure
Your Progress” chart, pg. 31.

Money in Review, pgs. 46-47