Introduction
Buckle up and get ready for a financial adventure! This lesson plan is the ultimate financial literacy expedition for young explorers. We’re taking a deep dive into the fascinating world of money, spending, saving, and more – but don’t worry, it’s gonna be a blast!
And the coolest part? We’ve got a special treat for you – a ready-to-go lesson plan called “A Very Good Day.” It’s packed with engaging activities that’ll make financial literacy come alive. So, grab your pencils and let’s get started on this exciting journey!
A Very Good Day Lesson Plan Financial Literacy Lesson Plan
The purpose of this lesson is to teach students about financial literacy. Students will learn about the importance of saving money, budgeting, and investing. They will also learn about the different types of financial products and services available to them.
This lesson plan is designed for a 90-minute class period. It can be adapted to fit the needs of your students and the time you have available. This lesson plan meets the following objectives:
1. Students will be able to define financial literacy.
2. Students will be able to explain the Four Simple Rules of Investing.
3. Students will be able to recognize fraudulent financial promotions and recommended courses of action.
4. Students will be able to identify the many benefits of saving and investing.
5. Students will be able to identify needs and wants to create a budget.
6. Given a list of expenses, income, and a budget sheet, students will be able to determine if their budget is balanced.
7. Students will be able to identify the steps involved in completing a basic W-4 form.
8. Students will be able to explain the difference between gross and net income.
Introduction
Start by asking students what they think financial literacy is. Then, define financial literacy as the ability to understand and manage your finances. Explain that financial literacy is an important life skill that can help you make informed financial decisions.
Next, discuss the Four Simple Rules of Investing with students. These rules are: 1) Don’t lose money. 2) Don’t pay high costs. 3) Diversify. 4) Rebalance regularly. These rules were created by John Bogle, founder of the Vanguard Group. They provide a solid foundation for making sound investment decisions.
Finally, discuss fraudulent financial promotions with students. Fraudulent financial promotions often promise high returns with little or no risk. These promotions are often scams. Teach students to be wary of these promotions and to do their research before investing in any financial product or service.
Importance of Saving and Investing
Next, discuss the benefits of saving and investing. Explain that saving money can help you reach your financial goals, such as buying a house or retiring early. Investing can help you grow your money over time.
There are many different ways to save and invest money. Encourage students to research different options and find the ones that are right for them.
Budgeting
Next, teach students how to budget their money. A budget is a plan that shows how you will spend your money each month. Budgeting can help you track your spending, save money, and reach your financial goals.
There are many different ways to create a budget. One popular method is the 50/30/20 rule. This rule states that you should spend 50% of your income on needs, 30% on wants, and 20% on savings and debt repayment.
Income and Expenses
Teach students the difference between gross income and net income.
Gross income is the amount of money you earn before taxes are taken out. Net income is the amount of money you have left after taxes are taken out.
It is important to track your income and expenses so that you can create a budget. Explain to students that there are many different ways to track their income and expenses. They can use a spreadsheet, a budgeting app, or even just a notebook.
Extension Activities
Additional resources and activities are suggested for students who wish to explore financial literacy further.
1. Have students create a budget for themselves.
2. Have students research different investment options.
3. Have students complete a mock W-4 form.
