Grades K-2 Lesson #1
What is Financial Literacy?
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Introduction to Financial Literacy
Essential Question
 What is “Financial Literacy?”
 What do I know about “Financial Literacy?”
Learning Goals/Objectives
 Introduce financial literacy to students
 Evaluate students’ prior knowledge of financial literacy through administration of a pre-test
Overview
 Students will be introduced to Financial Literacy. Prior knowledge will be assessed through the
administration of a Financial Literacy pre-test.
Background Information for Teachers
National Standards for Financial Literacy were developed as a framework for content and skills in a K-12
curriculum by the Council for Economic Education. According to Chris Caltabiano of the CCE, "The goal of the
standards is to help children grow up to become good decision makers as adults and to teach them how to think
about the world in what we call an economic way of thinking.”
Benchmarks are provided at the following grades: Kindergarten; 4th Grade; 8th Grade; and 12th Grade. The
standards for all grade levels, K-12 are divided into 5 categories:
 Saving and Spending
 Credit and Debt
 Employment and Income
 Investing
 Risk Management and Insurance
 Financial Decision Making
Florida has included Financial Literacy in the NGSSS Social Studies Curriculum (with Benchmarks at Grades
4, 8, and 12):
2015 Florida Statutes 1003.41 Next Generation Sunshine State Standards (1) (d)
Social Studies standards must establish specific curricular content for, at a minimum, geography, United States
and world history, government, civics, humanities, and economics, including financial literacy. Financial literacy
includes the knowledge, understanding, skills, behaviors, attitudes, and values that will enable a student to make
responsible and effective financial decisions on a daily basis. Financial literacy instruction shall be an integral
part of instruction throughout the entire economics course and include information regarding earning income;
buying goods and services; saving and financial investing; taxes; the use of credit and credit cards; budgeting and
debt management, including student loans and secured loans; banking and financial services; planning for one’s
financial future, including higher education and career planning; credit reports and scores; and fraud and identity
theft prevention.
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Materials
 Dollar bill
 KWL Chart (included)
 Financial Literacy Pre-Test (included)
Time
 20 minutes for K-1, 30 minutes for Grade 2
Activity Sequence
INTRODUCTION/HOOK
 Show students a dollar bill. Ask them what it is and how it might be used. (2 minutes)
ACTIVITY
1. Introduce the term “Financial Literacy,” and explain that students will be working on Financial Literacy
for the next three weeks. (2 minutes)
2. Complete the “K” section of the KWL Chart working together as a class (2 minutes)
3. Administer the Financial Literacy Pre-Test (included) (10 minutes K-1; 20 minutes Grade 2)
Note: Two tests are included 1) Kindergarten 2) 1st-2nd Grade. Tests are adapted from National
Financial Educators Council Pre-Tests. The Council would like teachers to share their test results with
the Council. http://www.financialeducatorscouncil.org/kids-financial-literacy-test/
CLOSURE
 Complete the “W” section of the KWL Chart working together as a class. Explain to students that they
will be exploring Financial Literacy for the next three weeks and learning about their “Want to Know”
items listed. (The “L” section should be completed at the end of the three week unit)
OPTIONAL EXTENSION SUGGESTION/HOME LEARNING
 (Describe optional extension activity/home learning assignment).
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K-W-L Chart
Financial Literacy
What I know…
What I want to
know…
What I
learned…
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Kindergarten Pre-Test*
1. What kinds of things do we need?
A.
Things that keep us alive
B.
Vacation trips to the beach.
C.
A limo ride to school.
2. When is it okay to buy things we want?
A. After we already paid for things we need.
B. Whenever we borrow money.
C. When we want a new toy.
3. What is something an adult might want, but a child would not?
A. New clothes
B. A bicycle
C. New kitchen appliance
4. Seven (7) is less than…
A. 10
B.
5
C.
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5. Savings means…
A. Waiting to have something later.
B. Having what you want now.
C. Choosing not to have what you want.
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6. Which of the following is the best way to ensure that you spend money wisely?
A. Buy only what you need, never what you want.
B. Pay attention to saving and spending choices.
C. Buy what makes you happy and excited.
7. How does it help a community if everybody does their job?
A. People will have things and services that they need.
B. People will have things that they need.
C. People will have services that they need.
8. Who can be a helper?
A. Adults
B. Children
C. Everybody
9. Everybody should do the job that …
A. Looks the most important.
B. Makes the most money.
C. It is a good fit for them.
10. Communities work best when …
A. Everyone has the same job.
B. People have lots of different jobs.
C. Each job makes a product.
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11. A good borrower …
A. Let others borrow things as well.
B. Gives back what they borrow.
C. Only borrows things once or twice.
12. Why is trust important?
A. We feel safe around people we trust
B. We get what we want when we trust people
C. We get what we need when we trust people
13. A trade is fair when …
A.
Both people get something they value.
B.
The two items are exactly the same.
C.
The items are both wants.
14. Sharing means …
15.
A.
Giving away something that nobody wants or need.
B.
Giving away something you don’t want.
C.
Giving away something that someone else wants or needs.
Why do we have safety rules?
A.
To help us make safe choices.
B.
To have fun.
C.
To avoid consequences.
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16. Which of these is a safe choice?
A. Petting a strange dog.
B. Taking candy from a stranger.
C. Calling for help when you are scared.
17. Why do we have safety drills?
A. To practice making safe choices
B. To not have emergencies.
C. To practice making unsafe choices.
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Kindergarten Pre-Test Answer Key
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
A
A
C
A
A
B
A
C
C
B
B
A
A
C
A
C
A
* Test is adapted from National Financial Educators Council Pre-Tests. The Council would like teachers to share
their test results with the Council. http://www.financialeducatorscouncil.org/kids-financial-literacy-test/
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