UNIT
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MONEY MATTERS6
Money Matters 1: Setting a BudgetHow can budgeting now help me make a big purchase later?
Money Matters 2: Take it to the Bank!Why should I have a bank account and how do I use one?
Money Matters 3: Keeping Track of Your MoneyHow can I keep track of the money in my checking account?
Money Matters 4: Using Credit Cards with CareWhat are the advantages and risks of using credit cards?
Money Matters 5: Before You Sign: ContractsWhat are some important things to consider before signing a contract?
Lesson Descriptions
521
PLANNING PYRAMID
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Most Students Will:
•Recognize the need for savings in case of an emergency.•Givenaweeklyincome,figureoutnetpay,setasidemoneyfor
college, and create a budget for the remaining money.• Identifythingstoconsiderwhenpurchasingacellphoneplan.•Understandthatcreditcardcompanieschargefeesforlatepaymentsandinterestifthebalanceisn’tpaidinfulleachmonth.
•Understandthatpeoplewithpoorcreditreportsmayhaveto payhigherratesforcreditcards,carloans,andmortgages.
•Useacheckregistertorecorddepositsandchecks.• Identify credits, debits, and the account balance in an online
bank statement.
All Students Will:
• Recognizetheneedtoplanaheadwhensavingmoneyforcollegeexpenses.•Understandthatmoneychargedtoacreditcardmustbepaidback.•Understandthepurposeofacheck,andknowhowtowriteone.•Understandtheimportanceofknowinghowmuchmoneyyouhaveinyour
checking account.•Understandthatacellphonecontractmaycontainhiddenchargesbeyondtheadvertisedmonthlyprice.
•Understandthatpotentialemployersandlendershaveaccesstocreditreports.
•Use a budget as a guide whenconsideringpurchases.
Some Students Will:
GRADE 10, Unit 6, Money Matters
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Did you know?
Roads to Success
Grade 10
A part-time job can give your child a new sense of financial freedom. It may be the first time that he has his own money and choices about how to spend it. This is a great time to show him how to make smart money decisions. Here aresome ideas about whereto begin:
Budgeting Basics: Help your child develop a budget to save and spend wisely. Talk with her to figure out what her big goals are. If she wants to save for a computer or for college, help her figure out a reasonable amount to set aside each week to reach her goal. While saving needs to be a priority,
some money should be left over for fun.
Keeping Track of Your Money: Students interested in opening savings and
checking accounts will need to know how to keep track of deposits and withdrawals. Show your child how you keep track of this information using savings passbooks, check registers, or online banking.
is a new program designed to help middle and high school students prepare for their futures. This newsletter will keep you posted on what we’re doing in school, and how families can follow through at home.
For more information about Roads to Success, please visit our website:www.roadstosuccess.org
An $8,000 credit card debt, at a rate of 18% interest, will take over 18 years to pay off and cost more than $27,000 if you pay only the minimum amount of $125 each month.
http://www.practicalmoneyskills.com(online calculator) In 10th grade, students in
Roads to Success participate in five real-life lessons on managing money. In this unit students take on the role of a high school senior preparing for life after graduation. Here is what they will learn:
•Budgeting: Students calculate their take-home income from a summer job, then create a budget that allows them to save
for college with money left over for day-to-day expenses.
•Banking: Students examine the difference between a savings and a checking account. They practice using a checkbook register and analyzing online bank statements.
•Credit Cards: After examining the dangers of credit card debt for recent
college graduates, students learn about the advantages and disadvantages of credit cards.
•Contracts: Students examine cell phone plans to identify best values and hidden costs.
Managing Money
The Real Cost of Credit: Credit cards can be useful tools for managing money, but their misuse can cause financial hardship. Explain how credit cards work and what happens if a customer doesn’t pay a bill on time. Let your child know that finance charges and late fees can cause consumers to spend a lot more on products than they originally cost.
Resources: For more information, check out these websites:
• www.360financialliteracy.org/Life-Stages/Parents-Children/
• www.practicalmoneyskills.com
Grade by Grade
Money Matters
Family Newsletter
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MONEY MATTERS1Setting a Budget
Approx.45minutes
I. WarmUp:ImagineThis... (5 minutes)
II. Summer Income, Savings, andExpenses(15minutes)
III. SummerBudget:Doesit AddUp?(10minutes)
IV. SavingfortheUnexpected (10 minutes)
V. WrapUp(5minutes)
Duringthislesson,thestudent(s)will:
• Basedonafictionalscenario,determinehowtosetaside$1,000forcollegeexpensesinthefall.
• Determinetheirsummerexpenses,includingwhattheywillneedtocovertransportation,food,entertainment,andclothing.
• Developandreviseabudgetbasedontheirexpectedincomesandexpenses.
• Modifytheirbudgetstohandleunexpectedexpenses.
❑ STUDENT HANDBOOK PAGES: • StudentHandbookpage132,
ThisIsYourLife
• StudentHandbookpage133, Income Worksheet
• StudentHandbookpage134, WeeklyExpensesWorksheet
❑ FACILITATOR PAGES: • Facilitator Resource 1, Chance Cards
(one card for every two students)
• Facilitator Resource 2, Income Worksheet Answer Key
❑ Calculators(oneperstudent)
❑ Overheadprojector
AGENDA MATERIALS
OBJECTIVES
• Howcanbudgetingnowhelpmemakeabigpurchaselater?
TheBIG Idea
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OVERVIEW ...........................................................................................
In this lesson, studentswillbeginaunitonMoneyMatters inwhich they’llexplore importantfinancial tools and concepts, like budgets, deductions, and bank accounts. Throughout thisunit, they will be following a fictional scenario in which they are high school seniors who have beenaccepted tocollege in the fall,andwillbebusywitha full-time jobover the summer.In this lesson, they’re settinga summerbudget thatwill allow them toputaside$1,000 forcollegeexpenses.They’lldeterminetheirsummerincome,learnaboutthepercentageofincomethat’ssubtractedfortaxes,andunderstandthedifferencebetweentheirgrossandnetincomes.Studentswilldetermineiftheirincomewillcovertheirsummerexpenses,suchastransportation,food,andentertainment.Finally,they’llbegivena“chancecard”withanunexpectedexpense,andconsiderwhyit’simportanttosetasidesomeextrasavingswhendevelopingabudget.
PREPARATION ....................................................................................
❑ Listtheday’sBIG IDEA and activities on the board.
❑ Writetheday’svocabularywordsanddefinitionsontheboard.
❑ Thefollowinghandoutsneedtobemadeintooverheadtransparenciesorcopiedontochartpaper:• Student Handbook page 132, This Is Your Life
• Student Handbook page 133, Income Worksheet
• Student Handbook page 134, Weekly Expenses Worksheet
❑ Print out Facilitator Resource 1, Chance Cards and cut out the individual cards. Note:Youwillneedtoprintthispagetwicetoprovideonecardforeachpairof students.
❑ For Activity I, Warm Up: Imagine This..., write the following three questions on chart paperbeforeyouteachthislesson.a. HowmuchwillIneedtosetasideforcollegeeachweek?b. HowwillIspendtheremainingmoney?c. HowcanIplanforunexpectedexpenses?
Grade 10, Money Matters 1: Setting a Budget
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VOCABULARY .....................................................................................
Budget:Aplanthathelpspeopletrackspendingsotheycangetthethingstheyneedand want without running out of money.
Income: Themoneyyouhavecomingin.
Deductions:Moneytakenoutofyourincomefortaxes.
Expenses: Whatyouspendmoneyon.
Gross Income: Themoneyyouearnbeforetaxesaretakenout.
Net Income: Your“takehome”payorpaycheckamount; themoneyyouearnafter taxesaretakenout.
IMPLEMENTATION OPTIONS ...........................................................
In Activity III, Summer Budget: Does It Add Up?,studentsmayneedtoseeanexampleofhowtomaketheirbudget.Youmaywishtomodelthisfortheclassinthecolumnmarked“1stTry,”makingsuretolistexpensesthattotalmorethan$96.
In Activity IV, Saving For the Unexpected, you may change the scenarios to better fit your students’interestsandcostsinyourarea.
Grade 10, Money Matters 1: Setting a Budget
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ACTIVITY STEPS ..................................................................................
I. Warm Up: Imagine This… (5 minutes)
1. SAY SOMETHING LIKE:Welcome,everybody.Thisisthefirstweekofanewunitcalled“MoneyMatters.”Inthisunit,you’regoingtolearnallaboutmoney—howtokeeptrackofwhatyouearn,howtosaveit,andhowtospenditwisely.Throughouttheunit,you’regoingtotakeonanewpersona.You’regoingtoimagineyou’renotsophomores,buthighschoolseniors.Asseniors,you’llhavesomeimportantfinancialdecisionsandplanstomake,whichyou’llbedoingthroughoutthisunit.Forexample:Howcanyouplanabudgettosavemoneyforthefuture?Howdoyoukeepyourmoneysafeandsecure?Howdoyoukeeptrackofyourmoneyonceit’sinthebank?What’sthebestwaytochoose—anduse—creditcards?Ifyoudecidetouseyourmoneyforacellphoneplan,howdoyoureviewacontracttomakesureit’sinyourbestinterest?Asyouanswerthesequestions,you’lllearnaboutbanks,checkingandsavingsaccounts,ATMsandonlinebanking,creditcards,andcontracts.
2. [HandoutcopiesofStudent Handbook page 132, This is Your Life. Have a volunteerreadthisaloudtotheclass.Encouragestudentstolistenclosely,asthey’llneedthisinformationinthelesson:
You’reaseniorinhighschool.It’sMarchandyou’vebeenacceptedtocollege.Yourfamilyhasagreedtopayforsomeofthetuition,andyou’reworkingoutagoodfinancialaidpackage,too.However,yourealizeyou’restillgoingtoneedabout$1,000asemester—or$2,000total—tocoversomeimportantexpenses,likebooksanddailylivingcostslikelaundry,schoolsupplies,andanoccasionalpizzaoutwithfriends.Youknowthatifmoneygetstight,thereareplentyofworkopportunitiesoncampus,butyoureally want to have this money saved before you begin school.
Luckyforyou,youalreadyhaveagreatafter-schooljob,andyourbosshaspromisedyoufull-timeworkoverthesummer.You’vefiguredoutyoucansaveabout$80aweekinyourpart-timejobuntilschool’sout.BytheendofMay,you’llhaveput$1,000asideforyourcollegefund.Thatmeansyou’llneedtosave$1,000duringJune,July,andAugusttomakeyourgoalof$2,000.]
Grade 10, Money Matters 1: Setting a Budget
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3. SAY SOMETHING LIKE:Anyquestionssofar?OK,nowit’stimetofigureoutyourbudgetforthesummer.(Displaythefollowingthreequestionsonchartpaper.)
Therearethreequestionsyouneedtoanswer:• HowmuchwillIneedtosetasideforcollegeeachweek?
• HowwillIspendtheremainingmoney?
• HowcanIplanforunexpectedexpenses?
That’sthegoalfortoday’slesson.
II. Summer Income, Savings, and Expenses (15 minutes)
1. SAY SOMETHING LIKE:OK,weknowwe’llhave$1,000savedfromourafter-schooljob,soweneedtosave$1,000tomeetourgoalof$2,000forourcollegefund.Ifwe’reworkingfor10weeksoverthesummer,howmuchdoweneedtosaveeachweektosaveanadditional$1,000?($100aweek)
Thenextstepistofigureoutaweeklybudgettoseehowwe’regoingtosavethatmoneyandcoverourothersummerexpenses.What’sthenextthingweneedtodeterminebeforewecanfigureoutthisbudget?(Figureouthowmuchwe’regoingtomakeeachweek.)Let’sdothistogether.PleaseturntoyourStudent Handbook page 133, Income Worksheet.
[ProjectatransparencyofStudent Handbook page 133, Income Worksheet for the classtosee.]
2. [Asaclass,reviewthedetailsforthefull-timejobontheIncome Worksheet.Thenworktogethertocalculatethe“WeeklyGrossIncome.”]
SAY SOMETHING LIKE:Nowyoumightbethinkingthateveryweek,yourpaycheckwillbe$290.Butinreality,yourgrossweeklyincomeisdifferentfromyourtake-homepay,oryourpaycheck,becausemoneyisdeducted,ortakenout,ofeverypaycheckyouearn.Thesearecalleddeductions.Doesanyoneknowwhatdeductionspayfor?
That’sright—taxes.Themaintaxesdeductedfromyourpaycheckarefederalincometax,stateandlocalincometax,andSocialSecuritytax.Federal,state,andlocalincometaxespayforthingslikeroads,themilitary,schools,parks,andpoliceandfireservices.SocialSecuritytaxhelpspaybenefitstopeoplewhoaredisabledorretired.
Grade 10, Money Matters 1: Setting a Budget
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3. SAY SOMETHING LIKE:Onthisworksheet,we’reestimatingthatabout30%isdeductedfromyourpaycheck.However,thisamountmayvary,dependingondifferentfactorslikewhereyoulive,howmuchyoumake,andhowmanypeoplearefinanciallydependentonyou,suchaschildren.
4. SAY SOMETHING LIKE: Let’sfigureoutyouractualpaycheckif30%isdeductedfortaxes.Wedeterminedthatourgross weekly income, or the money you earn before taxesaretakenout,is$290.Yourtaxesarebasedonyourgrossincome.
5. SAY SOMETHING LIKE: Nowlet’sfigureoutyourdeductions.If30%isdeductedfortaxes,youcancalculatethedeductionsbymultiplyingyourgrossincomeby30%or0.3. Use your calculators to see what the deductions would be.
[Onthetransparency,write$87nexttolineB,Deductions.]
Note:Ifyouaren’tearningafull-time,year-roundsalary,youmaygetsomeofthismoneybackasataxrefundinthespringbyfilinganincometaxreturn.
6. SAY SOMETHING LIKE:Sohowmuchmoneywillbeinyourpaycheck?Subtractyourdeductions from the gross weekly income.What’sleftisyournet weekly income. Use your calculators to see what the net weekly income would be.
[Onthetransparency,write$203nexttolineC,NetWeeklyIncome.]
Areyousurprisedatthedifferencebetweenyoursalaryandwhatyouactuallygettotakehome?
7. SAY SOMETHING LIKE:Nowlet’sfigureouthowmuchofthatpaycheckwe’llhaveleft over after we set some aside for our college fund. Remember, we need to save $1,000over10weeks.Sohowmucharewesettingasideeachweekforourcollegefund?($100aweek)
[WritethisonlineD,“WeeklySavingsforCollegeFund.”]
8. SAY SOMETHING LIKE:Howmuchisleftoverforotherexpenses—ormaybealittleextrasavings?
[Model how to subtract the Weekly Savings for College Fund (line D) from Net Weekly Income(lineC),andwrite$103onlineE.]
Grade 10, Money Matters 1: Setting a Budget
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III. Summer Budget: Does It Add Up? (10 minutes)
1. SAY SOMETHING LIKE:Willthisbeenoughtocoverourexpenses?Let’sfindout!NowI’dlikeyoutoturntoyourStudent Handbook page 134, Weekly Expenses Worksheet. Thisiswhereyou’llfigureoutyourweeklysummerspending.Takeamomenttothinkabouthowmuchyou’llneedtospendeachweekineachcategory.Writetheamountnexttoeachcategoryinthecolumn“1stTry,”thentotalyourweeklyspending.LookbackatyournetweeklyincomeonyourIncome Worksheet. Will you haveenoughtocoverthoseexpenses?(Areyourtotalexpenseslessthan$103?)Ifnot,tryreworkingyourexpensesinthenextcolumnunder“2ndTry.”
IV. Saving for the Unexpected (10 minutes)
1. SAY SOMETHING LIKE:Ifyouhadmoneyleftover,whowouldspenditonsomethingextra?[Showofhands.]Whowouldputitintosavings?[Showofhands.]Whyaresavingsimportant?[Allowstudentstorespond.Thenexplainthatsavingshelpcoverunexpectedexpenses,whichareboundtohappentoyounomatterhowcarefullyyoubudget.]
2. SAY SOMETHING LIKE:Afterall,justlikeyoucan’tpredictwhathappensinlife,youcan’tpredictwhatexpensesmightpopup.I’dlikeeachofyoutopartnerwiththepersonsittingnexttoyou.I’mgoingtohandeachpaira“chancecard”withoneoftheseunexpectedexpenses.Don’tfocusonwhatexpenseyouweregivenoritscost.Instead,justthinkabouthowyoucanadjustyourbudgettocoverthisexpense.
3. [Hand out Facilitator Resource 1, Chance Cards,onetoeachpair.]
4. SAY SOMETHING LIKE:Ifyoudon’thavealittleextrasavings,howwillyouhandlethisexpense?
5. [Havepartnersdiscussstrategiesforcoveringtheextraexpense,thensharetheirideaswiththegroup.]
6. SAY SOMETHING LIKE:Supposeyouhadbeensettingaside$15aweekforemergencies.Howmanyweekswouldittaketosaveforthisexpense?Whatexpenseswouldyoucutfromyourweeklybudgettomakethispossible?
Grade 10, Money Matters 1: Setting a Budget
532 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
7. [Have students use the third column on their Weekly Expenses Worksheet,“SavingforEmergencies,”torefiguretheirbudgets,allowing$15aweekforsavings.]
V. Wrap Up (5 minutes)
1. SAY SOMETHING LIKE:Whofeltlikeyoucouldhandleyourexpenses,saveforyourcollegefund,andputalittleextraintosavingsfortheunexpected?
Ifyoufeltlikeyoujustcouldn’tcoveryourexpensesinreallife,whataresomethingsyoucoulddo?(Cutbackexpenses,getanotherjob—orabetter-payingjob)
2. SAY SOMETHING LIKE:Whyisitimportanttosetabudget?Whydoesithelptosetagoalwhencreatingabudget?Whatifyoudecidedtospendasmuchmoneyasyouwantedinthefirstpartofthesummer,thenstartsavinglaterinthesummer?
3. SAY SOMETHING LIKE:Thiswasagreatstarttoour“MoneyMatters”unit.Nextweek,we’regoingtotalkaboutwhattodowiththemoneyyou’resavingforcollege.Howdoyoukeepitsafeandsecureoverthesummer?Asyouprobablyguessed,nextweekisallaboutchoosingabankaccountthat’srightforyou.
Grade 10, Money Matters 1: Setting a Budget
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Grade 10, Money Matters 1: Setting a BudgetFacilitator Resource 1, Chance Cards
Chance Cards
Congratulations,graduates! Youandafewfriendshosta
graduation cookout. But burgers andsoftdrinksaren’tfree.
Expense:$125
Oops,sorrybro.Youhada fenderbenderinyourbrother’scar. Youpromisetopayforthedamage.
Expense:$200
DidsomeonesayTHEMEPARK? Yourfriendsaregoingonadaytrip toathemeparkonSaturday andyoudon’twanttomissit.
Expense:$50
Whoeverheardoflabfees? Youjustfoundoutyourfallsemester
chemistry class is going to cost a little more.
Expense:$150
Ah....CHOO! Yournoseisrunning,yourheadis throbbing,andyoucan’tstop sneezing.Takeadayoffwork.
Expense:$40 (deductionofoneday’spay)
Whatarebestfriendsfor? Youhelpyourfriendmovetocollege,
whichtakesalittleextragas money this week.
Expense:$50
A new school, a new you. Yougetacoolnewhaircut beforesummer’sout.
Expense:$40
Dorm room design 101. Youtalktoyournewroommateanddecide
on matching sheets and comforters.
Expense:$50
Needtunestostudy? Youfindtheperfectportable stereo for your dorm room.
Expense:$100
Happy4thofJuly! ThelocalJuly4thfestivalis
this weekend, and you need cash for rides, tickets, and food.
Expense:$20
HappyBirthday! Yourfriend’sbirthdayiscomingup, andyouknowjustwhatshewants.
Expense:$15
Go,State! Youspotacoolsweatshirtfor yournewuniversity—onsale.
Expense:$20
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Grade 10, Money Matters 1: Setting a BudgetFacilitator Resource 2, Income Worksheet (Answer Key)
Income Worksheet (Answer Key)
Usethisworksheettofigureouthowmuchmoneyyou’lltakehomeeachweek,andhowmuchyou’llhavelefttospendafterputtingmoneyintoyourcollegefund.
Details for Full-Time Summer Job
Pay:$7.25/hour
Hours:40/week
Workweeks(June–August):10weeks
Weekly Income
A) Gross Weekly Income $ 290 (hourly rate X total weekly hours)
B) Deductions $ 87 (30%ofA)
C) Net Weekly Income $ 203 (A–B=C)
Available Money for Savings and Expenses
D) Weekly Savings for College Fund $ 100 ($1,000/10weeks)
E) WeeklySpendingMoney $ 103 (C–D=E)
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Grade 10, Money Matters 1: Setting a BudgetStudent Handbook, This is Your Life
132
This is Your LifeForthenextfewweeks,ourclasswillbeparticipatinginanewunitcalled“MoneyMatters.”Throughoutthisunit,youwillimagineyourselfinthefollowingsituation:
You’reaseniorinhighschool.It’sMarchandyou’vebeenacceptedtocollege.Yourfamilyhasagreedtopayforsomeofthetuition,andyou’reworkingoutagoodfinancialaidpackage,too.However,yourealizeyou’restillgoingtoneedabout$1,000asemester—or$2,000total—tocoversomeimportantexpenses,likebooksanddailylivingcostslikelaundry,schoolsupplies,andanoccasionalpizzaoutwithfriends.Youknowthatifmoneygetstight,thereareplentyofworkopportunitiesoncampus,butyoureallywanttohavethismoneysavedbeforeyoubeginschool.
Luckyforyou,youalreadyhaveagreatafter-schooljob,andyourbosshaspromisedyoufull-timeworkoverthesummer.You’vefiguredoutyoucansaveabout$80aweekinyourpart-timejobuntilschool’sout.BytheendofMay,you’llhaveput$1,000asideforyourcollegefund.Thatmeansyou’llneedtosave$1,000duringJune,July,andAugusttomakeyourgoalof$2,000.
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Grade 10, Money Matters 1: Setting a BudgetStudent Handbook, Income Worksheet
133
Income WorksheetUsethisworksheettofigureouthowmuchmoneyyou’lltakehomeeachweek,andhowmuchyou’llhavelefttospendafterputtingmoneyintoyourcollegefund.
Details for Full-Time Summer Job
Pay:$7.25/hour
Hours:40/week
Workweeks(June–August):10weeks
Weekly Income
A) Gross Weekly Income $ (hourly rate X total weekly hours)
B) Deductions $ (30%ofA)
C) Net Weekly Income $ (A–B=C)
Available Money for Savings and Expenses
D) Weekly Savings for College Fund $ ($1,000/10weeks)
E) WeeklySpendingMoney $ (C–D=E)
134© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Weekly Expenses WorksheetUsethisworksheettofigureoutyourexpenseseachweek.Thinkabouthowyou’llgettowork,whatyou’lleatforlunch,whatyou’lldoinyourfreetime,andthe extrasyoumightbuyforcollege.
Possible Expenses (Foreachcategorybelow,pickoneofthethreeoptions.Thenrecordthevalue into your budget below.)
TransportationCar=$30.00/week(leave 15 minutes before work)
Carpoolorsubway=$20.00/week(leave45minutes before work)
Bicycleorwalk= $0.00(leave90minutesbefore work)
Food Eat out with co-workers =$7.00/day
Buy lunch from work cafeteria=$3.00/day
Carrypackedlunch=$1.00/day
EntertainmentGo with friends to a movie,popcorn,andsoda=$20.00/week
Gobowlingorplayvideo games at an arcade=$10.00/week
Rent movie and havefriendover=$5.00/week
Clothing Buynamebrand=$40.00 ShopatGAP=$25.00 Shopatdiscount/outlet
clothingstore=$15.00
Expense Details 1st Try 2nd Try Saving for Emergencies
Transportation
Food
Entertainment
Clothing
Other: ________________________
$___________
$___________
$___________
$___________
$___________
$___________
$___________
$___________
$___________
$___________
$___________
$___________
$___________
$___________
Savings$15
Total Weekly Expenses $___________ $___________ $___________
Grade 10, Money Matters 1: Setting a BudgetStudent Handbook, Weekly Expenses Worksheet
MONEY MATTERS2Take it to the Bank!
Approx.45minutes
I. WarmUp:WhyaBank? (5 minutes)
II. CheckingAccounts:PuttingYourMoney In (15 minutes)
III. CheckingAccounts:GettingYourMoneyBackOut (20 minutes)
IV. WrapUp(5minutes)
Duringthislesson,thestudent(s)will:
• Understand the difference between checking and savings accounts.
• Discusswaystodepositandwithdrawmoneyfromacheckingaccount.
• Reviewandcompleteadepositslip.
• Reviewandcompleteapersonalcheck.
❑ STUDENT HANDBOOK PAGES: • StudentHandbookpage135,
SampleDepositSlip
• StudentHandbookpage136, BlankDepositSlip
• StudentHandbookpage137, SamplePersonalCheck
• StudentHandbookpage138, Blank Personal Check
❑ FACILITATOR PAGES: • Facilitator Resource 1, Chance Cards
(onecardperstudent)
❑ Overheadprojector
AGENDA MATERIALS
OBJECTIVES
• WhyshouldIhaveabankaccountandhowdoIuseone?
539
TheBIG Idea
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
540 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
OVERVIEW ...........................................................................................
Inthislesson,studentswilllearnwhybankaccountsareasafeplacetokeeptheirmoney,andunderstandthedifferencebetweencheckingandsavingsaccounts.Thenthey’ll learnhowtodepositmoneyintoacheckingaccountandfilloutasampledepositslip.Next,they’ll learnaboutthedifferentwaystogetmoneyoutofacheckingaccount.Inthisactivity,they’llreviewthepartsofapersonalcheck.Finally,they’llreceivea“chancecard”withanexpenseforwhichthey’llwritetheirownsamplecheck.
PREPARATION ....................................................................................
❑ ListtheBIG IDEAandtheday’sactivitiesontheboard.
❑ Writetheday’svocabularywordsanddefinitionsontheboard.
❑ Thefollowinghandoutsneedtobemadeintooverheadtransparenciesorcopiedontochartpaper:• Student Handbook page 135, Sample Deposit Slip
• Student Handbook page 137, Sample Personal Check
❑ Print out Facilitator Resource 1, Chance Cards and cut out the individual cards. Note:Youmayneedtoprintthispagetwoorthreetimestoprovideonecardperstudent.
❑ YoumaywishtomakeextracopiesofStudent Handbook page 138, Blank Personal Check in case students make mistakes or want to write out a check for a second chance card.
Grade 10, Money Matters 2: Take it to the Bank!
541© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
VOCABULARY .....................................................................................
ATM: ShortforAutomatedTellerMachine;amachinethatallowsyoutogetcashormakedepositsanytimeoftheday.
Checking Account:Abankaccountthatallowsyoutowithdrawmoneyormakepaymentsusing checks.
Deposit: Toputmoneyintoabankaccount.
Savings Account: A bank account that earns interest on the money held.
Withdraw: Totakemoneyoutofabankaccount.
IMPLEMENTATION OPTIONS ..........................................................
DO NOW(Youmay choose topresent theWarmUpactivityasawrittenDoNow. Present the shortpassageandquestionsontheboardoroverhead,andhavestudentswriteonly their answers onindexcards.)
Questions:1. Imagineyoujustgotyourfirstpaycheckofthesummer.Wherecanyougo
tocashthischeck?
2. What do you think the difference is between a checking account and a savingsaccount?
[Give the students three minutes to answer these questions, and then begin with the Warm Up aswritten.]
In Activity III, Checking Accounts: Getting Your Money Back Out, you may wish to have your studentswriteouttwochecks.Aftertheyhavecompletedtheirinitialcheckwiththeirfirstchancecard,havethestudentsswitchchancecardswithapartnerandwriteoutasecondcheck.
Youmaywishtocontactalocalbanktoseeifyoucansecuremockcheckbooksforthedurationof the unit.
Grade 10, Money Matters 2: Take it to the Bank!
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I. Warm Up: Why a Bank? (5 minutes)
1. SAY SOMETHING LIKE:Welcomeback,everybody.Thisisthesecondweekofour“MoneyMatters”unit.Lastweek,youalltookonanewpersonaasahighschoolseniorwho’sheadedforcollegeinthefall.Youalsosetaweeklybudgettofollowsoyoucouldsavemoneyforthefall.Thisweek,you’rethesameseniorinhighschool.Butnowsummerhasbegun,andyoujustreceivedyourfirstpaycheck.Nowyou’rewonderingwhattodowiththemoneytokeepitsafe,butstillhaveeasyaccesstoitforyourdifferentsummerexpenses.
Wheredoyouthinkyoushouldputyourmoney?[Takeanswersfromafewvolunteers.]
2. [Discusswhyputtingyourmoneyinabankisthebestoptioninthissituation.Somestudentsmaybefamiliarwithcheck-cashingbusinesses,placesthatwillcashchecksonthespot.Theproblemis,theseplaceschargeapercentageofthecheckamount,andsometimesaddotherhighfees.Andkeepingcashathomehasitsownrisks.First,thecashcouldgetlostorstolen.Second,itmightbetooeasytospendthecashifit’srightatyourfingertips.]
SAY SOMETHING LIKE:Placingyourmoneyinabankaccountkeepsitsafeandsecure.It’salsoeasytokeeptrackofyourmoneyinthebank.Andasyou’regoingtolearninthislesson,it’sveryeasytoputmoneyinandtakemoneyoutofabanking account.
3. [Review the difference between checking and savings accounts. • Checking accounts are accounts that allow you to withdraw money easily, such as
throughATMsorbywritingchecks.Onlyyoucanwriteachecktotakemoneyoutof your account.
• Savings accountsarebankingaccountsthatpayinterestonthemoneyheld.]
SAY SOMETHING LIKE:Whydoyouthinkit’sagoodideatoputmoneyintoasavingsaccountifyou’resavingforsomethingspecial?(It’seasytotrackyoursavingsandmoredifficultto“dipinto”foreverydayspending.Mostimportantly,thesavingsaccountwillpayyouinterest,oracertainpercentageofthemoneythatyouhaveinyouraccount.Thebankpaysyouinterestinreturnforusingyourmoneytomakeotherloans—eventhoughyoucangetitbackanytimeyouwant.Inotherwords,themoneyinyoursavingsaccountcouldcontinuetogrowjustbysittingthere!Ofcourse,the
ACTIVITY STEPS ..................................................................................
Grade 10, Money Matters 2: Take it to the Bank!
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amountofinterestyouearndependsonthreethings:theinterestrate,theamountofmoney you have in the account, and the length of time your money is in the account.)
II. Checking Accounts: Putting Your Money In (15 minutes)
1. SAY SOMETHING LIKE:Fortherestofthislesson,we’regoingtofocusoncheckingaccounts.Onceyousetupacheckingaccount,thefirstquestionis,How do I put money into my account? In other words, how do you depositmoneyintoyouraccount?
Youcandepositeithercashorchecksmadeouttoyouintoyouraccount.AsImentionedearlier,youhavejustreceivedyourfirstpaycheck.Toputthismoneyintotheaccount,thefirstthingyouhavetodoisendorse,orsign,yourpaycheck.Todothis,youturnyourcheckoverandyou’llseealineatthetopthatwillreadsomethinglike“Endorsehere.”Youjustsignyournameonthatline.Andifyou’regoingtodepositthemoneyintoyourcheckingaccount,it’salsoagoodideatowrite“Depositinaccount#12345678,”orwhateveryourcheckingaccountnumberis.
Thenyoufilloutadepositslip.Whenyouopenacheckingaccount,you’llreceivechecksanddepositslipswithyourname,address,andaccountnumbers.
2. SAY SOMETHING LIKE:Let’stakealookatanexampleofadepositslip.Pleaseturn to your Student Handbook page 135, Sample Deposit Slip. [Place Student Handbook page 135, Sample Deposit Sliponanoverheadprojector.Revieweachoftheitemsonthedepositslip.Asyoudiscusseachitem,fillitouttomodelhowtocompleteadepositslip.]
3. SAY SOMETHING LIKE:Nowit’syourturntofillinyourowndepositslip.TurnthepagetotheStudent Handbook page 136, Blank Deposit Slip. Carefully read the directionstoseewhatitemsyou’redepositingintoyouraccount.Thencompletethedepositslip.
4. [Whenstudentshavecompletedthedepositslip,askthemtosharethenettotalofthedeposit.]
III. Checking Accounts: Getting Your Money Back Out (20 minutes)
1. SAY SOMETHING LIKE:Congratulations!Youhavesuccessfullyputmoneyintoyourcheckingaccount.Butwhatifyouneedtotakemoneyout?Afterall,you’reboundtohavealotofsummerexpenses.Well,thereareafewdifferentwaystowithdraw,
Grade 10, Money Matters 2: Take it to the Bank!
544 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
or take out, money from your account. Here are some of the most common ways to withdrawmoney:
• Withdrawal at the bank:Whenyoumakeadeposit,youcouldhavethemgiveyousomecashbackratherthandepositingtheentireamountintoyouraccount.
• Withdrawal at an ATM(AutomatedTellerMachine):Whenyouopenacheckingaccount,you’llreceiveanATMcard,whichwillallowyoutomakewithdrawalsatanyATMthatisaffiliatedwithorhasanagreementwithyourbank.Beware,youmaybechargedfeesforsomeATMwithdrawals.Forexample,ifyouuseanATMatabankthat’snotyours,yourbankcouldchargeyouafeefromabout$2.00toover$5.00.(Thefeesvaryfrombanktobank.)AndifyouuseanATMatanon-bankingbusiness,suchasaconveniencestore,chancesareyou’llpaythebusinessafeeaswell.You’llprobablyuseATMsoftentoaccessmoney,sowhenyouopenabankaccount,lookforbankswithATMsnearwhereyouliveandwork.Also,look for banks that offer low withdrawal fees.
• Using a debit or bank card:Youcanusethesecardsatstoresjustlikecreditcards.Thedifferenceis,thechargeisautomaticallywithdrawnfromyouraccount.
• Paying a bill online: Many banks offer online banking, which allows you to access informationaboutyourcheckingaccountonline.Italsoletsyoupaybillsonline.Forexample,manyphoneandpowercompaniesofferonlinebillpaying,whichallows you to transfer the amount of your bill directly from your account to the company—withouthavingtowriteacheck.
• Writing a personal check: Apersonalcheckis awrittenorderthatrepresentscash.Youcanwriteacheckfortheexactamountofapurchase,andthecheckissafer to carry than cash since only you can write a check from your account.
2. SAY SOMETHING LIKE:Let’stalkmoreaboutpersonalchecks,sinceyou’regoingtobewritingmanyoftheseinyourlifetime!PleaseturntoyourStudent Handbook page 137, Sample Personal Check.
[Placethispageonanoverheadprojector.Asaclass,reviewthedifferentfeaturesofapersonalcheck.Asyoudo,discussandmodelhowtoproperlyfillineachfield.Thefeaturesyouwillrevieware:• Yournameandaddress• Date• Payee• Amountofcheck(innumbers)• Amountofcheck(inwords)• Memo
Grade 10, Money Matters 2: Take it to the Bank!
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• Signature• Identificationnumbers(forbank,account,andcheck)]
3. SAY SOMETHING LIKE:Nowit’stimetowriteyourownchecks!First,pleaseturntoyour Student Handbook page 138, Blank Personal Check.
[Handeachstudentone“chancecard,”whichyoucutoutfromFacilitator Resource 1, Chance Cards.]
Youareeachgoingtoreceiveone“chancecard”describingasummerexpenseyoumustcover.Readyourcardcloselytoidentifythepayeeandtheamountofthecheck.Thencompletetheblankchecktocoverthatexpense.Ifyoumakeamistake,justwritethewordVOIDinallcapsacrossthecheckandbeginagain.
4. [Givestudentsafewminutestocompletetheircheck.Thenhavethemsharetheircheckwithapartner.Ifstudentsareunsureifthey’vecompletedacheckcorrectly,havethemaskyoutoreviewit.]
IV. Wrap Up (5 minutes)
1. [Toendthelesson,reviewsomeoftheadvantagesofcheckingaccountsandpersonalchecks.
Explainthatanotheradvantageyoudidn’tdiscussisthatit’seasytotrackthemoneyyouspendusingpersonalchecks.Wheneveryouwriteapersonalcheckandthepersonorbusinesscashesit,thecheckwillappearonyourbankstatement.Thatmakesiteasytogobackandseewhereyouspentyourmoneyandcheckyourcurrentbalance.]
2. SAY SOMETHING LIKE:Keepingtrackofyourcurrentbalanceisextremelyimportant.Afterall,youcan’twriteapersonalcheckformorethanthetotalinyourcheckingaccount.Andthat’swhatwe’regoingtotalkaboutnextweek—keepingtrackofthemoney in your checking account.
Grade 10, Money Matters 2: Take it to the Bank!
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Chance Cards
Youandafewfriendsareplanninga graduation cookout.
Youspend$35.23attheGreen Grocery on burgers and sodas.
Yourbrother,SamSmith,lentyouhis car for the day. After a fender bender,youpayhim$192.55toreimburse him for the damage.
Youandyourfriendshead tothethemeparkMooseMountain
onSaturday.Youbuya T-shirtfor$15.42.
Youhavetopayyourstateuniversity$150.00tocover
lab fees for the fall semester chemistry class.
You’vegotaterriblesummercoldandstopatTownDrugsforsomemedicineandnosedrops($9.88).
You’rehelpingyourfriendmoveandyoupulloveratQuik-Stopto
fillupthecarfor$27.43.
Youjustgotagreatnewhaircut atDoorDyefor$45.00
(includingtip).
Yournewroommate,ChrisJones,bought the matching sheets and comfortersthetwoofyoupicked
out together. Reimburse your roommate$48.71foryourset.
Youbuytheportablestereoforyour dorm room. It was on sale, only$102.67atMusicNow.
AttheJuly4thfestival,you donate$15.00toGreenStreams,an organization working to clean
the waterways in your area.
YourjustboughtyourfriendanewCDforherbirthday.Youfoundit
for$14.58atTownTunes.
Youbuyacoolsweatshirtfor yournewuniversity—onsale atSportsGearfor$21.72.
Grade 10, Money Matters 2: Take it to the Bank!Facilitator Resource 1, Chance Cards
135© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Sample Deposit SlipHere’salookatasampledepositslipyouwouldcompletewhenyoudepositcashand checks into your checking account.
FIRST BANKJohnDoe123 Main StreetAnytown,USA12345
Date_________________________________________ deposits may not be available for immediate withdrawal
_____________________________________________ Signhereifcashreceivedfromdeposit
1234 5678 123456789 00123 1234567
Dollars CentsCASH
Checks
Subtotal
LessCash
TOTAL
A. Yournameandaddress.
B. Thedateyouaremakingthedeposit.Noticethephraseunderneath:“Depositsmaynotbeavailableforimmediatewithdrawal.”Thismeansthatitmaytakethebankafewdaystoprocessyourdepositandmakethemoneyavailabletoyou.Soifyoudeposit$200intheafternoon, that money may not be in your bank account that evening if you return to make an ATMwithdrawal.
C. Yoursignature(onlyincludeifyouwishtoreceivecashbackfromyourdeposit.)
D. Numbers that identify the bank and your account number.
E. Listallcashyoumaybedepositing,suchasagraduationgiftortipsfromarestaurant.
F. Listanychecksyouaredepositing.Listeachcheckseparately,placingthechecknumberinthefirstcolumn.
G. Thesubtotalofallcashandchecksyouaredepositing.
H. Theamountofcashyouwouldliketoreceivebackfromthedeposit.(Besuretoincludeyoursignature on line C.)
I. Subtracttheamountofcashbackfromthesubtotal.Thisisthetotalamountyouaredepositingintoyouraccount,alsocalledthe“NetDeposit.”
A
B
C
D
E
F
G
H
I
Grade 10, Money Matters 2: Take it to the Bank!Student Handbook, Sample Deposit Slip
136© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Blank Deposit SlipNowmakeyourowndepositintoyourcheckingaccount.Youjustreceived thefollowing:
• $25.00incashfromyourAuntSallyasagraduationgift.
• Acheck(#345)for$83.00fromyournewroommatetoreimburseyouforanew mini-fridge for your dorm room.
• Yourfirstpaycheck(#5432)for$203.
Filloutthedepositslipbelowtodeposittheseitemsintoyourcheckingaccount.
FIRST BANKJohnDoe123 Main StreetAnytown,USA12345
Date_________________________________________ deposits may not be available for immediate withdrawal
_____________________________________________ Signhereifcashreceivedfromdeposit
1234 5678 123456789 00123 1234567
Dollars CentsCASH
Checks
Subtotal
LessCash
TOTAL
Grade 10, Money Matters 2: Take it to the Bank!Student Handbook, Blank Deposit Slip
137© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Sample Personal CheckPersonal checks come in many different colors and designs, but they all include the samebasicinformation.Here’salookatthefeaturesyou’llfindoneverycheck,includingdirectionsonhowtofillouteachitemcorrectly.Whenyoufilloutacheck,alwayswriteclearlyanduseaninkpen.
A. Yournameandaddress.
B.Thechecknumber,whichisdifferentforeachcheck.
C. Thedateyouarewritingthecheck.Youcanwriteinwordsornumbers,butbesuretoinclude the year.
D. Thenameofthepersonorcompanyyouarewritingthecheckto.Thisiscalledthepayee.
E. Theamountofthecheckinnumbers,suchas$75.25.Writethenumbersclosetothedollarsign($)sothere’snoroomforanyonetoaddextranumbers.
F. Theamountofthecheckinwords.Startingatthefarleft,writethedollaramountfollowedbythewordand,thentheamountofcentsoverthenumber100.(Forexample:Seventy-fiveand25/100.)Drawalinethroughanyspaceleftontheline.
G. Thereasonforthecheck,oranyinformationrequestedbythepayee.Forexample,ifyou’rewritingachecktothephonecompany,youwouldwriteyouraccountnumberhere
H. Yoursignature,whichshouldalwaysbewrittenthesameway.
I. Numbers that identify the bank, your account, and the check number.
FIRST BANK 567JohnDoe123 Main StreetAnytown,USA12345 Date________________________
Pay to the order of _____________________________________________________ $______________
________________________________________________________________________________________
Memo_____________________________ _______________________________________________
1234 5678 123456789 00123 1234567
A
D
F
G
C
E
H
I
Grade 10, Money Matters 2: Take it to the Bank!Student Handbook, Sample Personal Check
B
138© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Blank Personal CheckMakeoutthecheckbelowtocovertheexpenseonthechancecardyoureceived.Remembertowriteclearlyanduseapen.Ifyouneedtostartagain,writeVOIDinlarge letters across the check and start again with the second check below.
FIRST BANK 568JohnDoe123 Main StreetAnytown,USA12345 Date________________________
Pay to the order of _____________________________________________________ $______________
________________________________________________________________________________________
Memo_____________________________ _______________________________________________
1234 5678 123456789 00123 1234568
FIRST BANK 569JohnDoe123 Main StreetAnytown,USA12345 Date________________________
Pay to the order of _____________________________________________________ $______________
________________________________________________________________________________________
Memo_____________________________ _______________________________________________
1234 5678 123456789 00123 1234569
Grade 10, Money Matters 2: Take it to the Bank!Student Handbook, Blank Personal Check
MONEY MATTERS3Keeping Track of Your Money
Approx.45minutes
I. WarmUp:WhereDidtheMoneyGo?(10minutes)
II. HowToKeepTrack:MakeSureItAddsUp(15minutes)
III. OnlineStatements:JustLogOn!(15 minutes)
IV. WrapUp(5minutes)
Duringthislesson,thestudent(s)will:
• Learnabouttherisksofnotknowingyourcurrentaccountbalance.
• Reviewacheckregisterandpracticeaddingtheirownwithdrawalsanddepositstotheregistertofindtheircurrentbalance.
• Review an online statement and use the statement to answer questions.
❑ STUDENT HANDBOOK PAGES: • StudentHandbookpage139,
What’sInYourWallet?
• StudentHandbookpage140, Checkbook Register
• StudentHandbookpage141, Online Statement
• StudentHandbookpage142, OnlineStatementQuestions
❑ FACILITATOR PAGES: • Facilitator Resource 1, Chance Cards,
onecardperstudent
• FacilitatorResource2,What’sInYourWallet?AnswerKey
• Facilitator Resource 3, Online Statement QuestionsAnswerKey
❑ Calculators(oneperstudent)
❑ Overheadprojector
AGENDA MATERIALS
OBJECTIVES
• HowcanIkeeptrackofthemoneyinmycheckingaccount?
551
TheBIG Idea
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552 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
OVERVIEW ...........................................................................................
Inthislesson,studentswilllearnhowtotrackthemoneyintheircheckingaccount.First,they’ll
discoverwhykeepingtrackoftheircurrentbalanceissoimportant—especiallywhenwriting
personalchecks.Thenthey’llreviewacheckregisterandpracticeaddingtheirownwithdrawals
ordepositstotheregister.Next,they’llreviewanexampleofanonlinestatement—afastand
convenientwaytocheckacurrentaccountbalance.Finally,they’llusethatonlinestatementto
answeraseriesofquestionsaboutrecentwithdrawalsanddeposits.
PREPARATION ....................................................................................
❑ ListtheBIG IDEAandtheday’sactivitiesontheboard.
❑ Writetheday’svocabularywordsanddefinitionsontheboard.
❑ Print out Facilitator Resource 1, Chance Cards, and cut out the individual cards. Note:Youmayneedtoprinttwoorthreecopiesinordertoprovideonecardtoeach student.
❑ Thefollowinghandoutsneedtobemadeintooverheadtransparenciesorcopiedontochartpaper:• Student Handbook page 140, Checkbook Register
• Student Handbook page 141, Online Statement
VOCABULARY .....................................................................................
Checking Account:Abankaccountthatallowsyoutowithdrawmoneyormakepaymentsusing checks.
Credit: Themoneyyouputintoabankaccount.
Debit: Themoneyyoutakeoutofabankaccount.
Deposit:Toputmoneyintoabankaccount.
Withdraw: Totakemoneyoutofabankaccount.
Grade 10, Money Matters 3: Keeping Track of Your Money
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ACTIVITY STEPS ..................................................................................
I. Warm Up: Where Did the Money Go? (10 minutes)
1. SAY SOMETHING LIKE:Welcomeback,everybody.Lastweek,youlearnedaboutcheckingaccounts,andevenpracticedfillinginyourowndepositslipsandpersonalchecks.Asyou’veseen,youcouldhavealotofmoneygoinginandcomingoutofyouraccountoverthesummer.Thisweek,we’regoingtotalkaboutkeepingtrackofallthatmoney.You’veprobablyheardabout“balancing”yourcheckbook.Ifitsoundscomplicated,don’tworry.Tobalanceacheckbook,youusethesamebasicskillsyouusetokeeptrackofthemoneyinyourwallet.
2. SAY SOMETHING LIKE:Let’sstarttodaywithasimpleexampleofkeepingtrackofmoney. Please turn to your Student Handbook page 139, What’s In Your Wallet? [Displaythisstudenthandbookpageontheoverhead.Haveadifferentvolunteerreadeachofthethreeparagraphs,makingsuretounderlinethekeyinformationontheoverhead.Then,modelhowtofillinthechartforSaturdayandSunday.Studentswillthencompletetherestofthechartontheirown.]
3. SAY SOMETHING LIKE:Asyoujustsaw,keepingtrackofyourmoneydoesn’thavetobedifficult—butitisextremelyimportant!It’sespeciallyimportantwhenyoustartmakingmoneyofyourown.Eventhoughyoumightfeellikeyou’vegotlotsofmoney,youcanspenditmuchfasterthanyouthink.Andifyoudon’tkeeptrackofthemoneyinyourcheckingaccount,youcouldgetintotrouble.Imaginethis:
You’vesetupyourbankaccount,you’vedepositedyourfirstpaycheck,andyou’veevenwrittenafewchecks.Nowit’stimetogetoutsomecold,hardcashforanightoutwithyourfriends.Youpulluptothedrive-thruATMandpunchin$25.00.You’rewaitingpatientlyforsomefreshbillstocomeslidingoutoftheATM,butinsteadthewords“InsufficientFunds”blinkonthescreen.What’sup?
4. SAY SOMETHING LIKE:Whathappened?Youweretryingtotakeoutmorethanyouhaveinyouraccount—andasyouknow,youcan’tdothat!IfyoutrytomakeawithdrawalatthebankorgetmoneyoutofanATMwhenyouhaveinsufficientfunds,thebanksimplywon’tgiveittoyou.
Butwhathappensifyoutrytowriteacheckformorethanyouhaveinyourcheckingaccount?Thisisanentirelydifferentstory,becausethebankcan’twarnyouwhenyou’rewritingacheckformoremoneythanyouhaveinyouraccount.Whenyouwrite
Grade 10, Money Matters 3: Keeping Track of Your Money
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acheck,you’retellingthebanktotakemoneyoutofyouraccountandpaysomeone.Writingacheckformoremoneythanyouhaveinyouraccountisaproblembecausethepersonyou’vewrittenachecktocan’tbepaid.Writingabadcheckisillegal,embarrassing,andexpensive.
5. SAY SOMETHING LIKE:Whyiswritingabadcheckexpensive?[Allowstudentstorespond.]That’sright—itwillcostyoumoremoney.That’sbecausewhenyouwriteacheckthatyouraccountcan’tcover,youhavetopayafine.Somebankschargeasmuchas$30ifacheck“bounces,”orcan’tbecoveredbyyouraccount.Butyoumayowemoremoneytothepersonorbusinessyouwrotethecheckto,sincesomebusinesses charge for receiving a bad check. Say you write a check at the grocery storeandthere’snotenoughmoneyinyouraccounttocoverit.Youhavetopaytwofines—$30tothebankandanother$20tothegrocerystore.That’s$50justfornotkeepingtrackofyourmoney.
6. SAY SOMETHING LIKE:Asyoucansee,keepingtrackofyourmoneyisveryimportant.BeforeyouwriteacheckortakemoneyoutofanATM,you’llwanttoknowyouraccountbalance—ortheamountofmoneyyoucurrentlyhaveinyouraccount.
II. How To Keep Track: Make Sure It Adds Up (15 minutes)
1. SAY SOMETHING LIKE:Oneofthebestwaystokeeptrackofyourmoneyiswithyourcheckbookregister.You’llreceiveacheckbookwhenyouopenacheckingaccount,andeverycheckbookcomeswitharegister.Thisisahelpfulwaytotrackyourchecks,withdrawals,anddepositsandkeepupwithyourcurrentbalance.
Let’stakealookatacheckbookregistertogether.PleaseturntoStudent Handbook page 140, Checkbook Register.[Projectacopyofthehandbookpageontoanoverheadprojector.]
Asyoucansee,thischeckbookregisterhasbeenfilledouttoshowthedateandamountofcheckswritten,ATMwithdrawals,andanydeposits.Thestartingbalanceiswrittenatthetop.
3. [Asaclass,reviewthecheckbookregisterandanexampleofacheck,anATMwithdrawal,andadeposit.Pointoutthatthemaindepositorcreditinformationisincludedonthewhiteline.Directlybelowonthegraylineistheplacetoaddthereasonforthepurchaseunder“Description.”Inthefarright-handcolumn,theycandeterminetheircurrentbalancebyaddingdepositsandsubtractinganypaymentsor
Grade 10, Money Matters 3: Keeping Track of Your Money
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withdrawals.Havestudentsusetheregistertoanswerthefollowingquestions:• Howmanytimesdidyouputmoneyintoyouraccount?(Twice, $25 on 7/6/12
and $196.23 on 7/8/12, shown in the “Deposit” column.)
• Howmanytimesdidyoutakemoneyout?(Four times, shown in the “Withdrawal” column)
• Whowascheck1451writtento?(State University) Forwhatamount?($100)Forwhatpurpose?(dorm deposit)
• Whenwasyourlastentry?(a withdrawal on 7/11/12) Ifyouhaven’tmadeanywithdrawalsordepositssincethisdate,whatisyourcurrentbalance?($432.20) (Besurestudentsunderstandthatthelastamountunder“Balance”isthecurrentbalance, as long as all credits and debits have been entered in the register.)
4. SAY SOMETHING LIKE:Nowit’stimetoenteranotheriteminthecheckbookregister.
[Handeachstudentone“chancecard,”whichyoucutoutfromFacilitator Resource 1, Chance Cards.]
Youareeachgoingtoreceiveone“chancecard”describingacreditoradebit.Readyourcardcloselytoidentifytheamountofthecheck,withdrawal,ordeposit.Thenenterthisitemintoyourcheckregister.Let’ssaythedateisJuly12,2012.Onceyou’veenteredthenewitemintoyourregister,calculateyournewbalance.Rememberto add for credits and subtract for debits.
5. [Givestudentsafewminutestocompletetheirregister.Whenthey’redone,haveseveralstudentsdemonstrateordiscusstheiranswerstoshowhowtheycompletedtheirregisters.]
III. Online Statements: Just Log On! (15 minutes)
1. SAY SOMETHING LIKE:Nomatterhowcarefullyyoucompleteyourregister,chancesareatsomepointyou’llleavesomethingoutormakeanerrorcalculatingyourbalance.Fortunately,thebankiskeepingtrackofthisinformation,too.Attheendofthemonth,thebankwillmailyouastatementthatreflectsyourdebits,credits,andcurrentbalance.It’sagoodideatocheckyourregisteragainstthisstatement.
2. SAY SOMETHING LIKE:Butsometimesyoucan’twaituntiltheendofthemonthto double-check your balance. Or maybe you forgot to write down the amount of yourlastcheckandyouneedtoknowyourbalancebeforewritingthenextcheck.
Grade 10, Money Matters 3: Keeping Track of Your Money
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Accessingyouraccountinformationcanbeaseasyasgoingonline!Manybanksoffer online banking, which allows you to check your credits, debits, and current balance anytime.
3. SAY SOMETHING LIKE:Let’stakealookatasampleonlinestatement.Pleaseturnto your Student Handbook page 141, Online Statement.Thisshouldlookveryfamiliar. It has a lot of the same information as your checkbook register. But as you’llsee,thecurrentbalanceandmostrecentcreditsanddebitsarelistedatthetopratherthanthebottom.
4. [Reviewtheonlinestatement.Pointouthowyoucancheckdifferentaccountsonline,soyoucouldalsocheckthetotalinyoursavingsaccount.Youcanalsoselectdifferentdates. Most online statements cover about a month, but you can go back and look at statementsfrompreviousmonths,too.]
5. SAY SOMETHING LIKE:Anonlinestatementisagreatwaytokeeptrackofchecksyouwrite.Forexample,youcangoonlinetoseeifchecksyou’vewrittenhavecleared,in other words, if the money has been deducted from your account.
Togetasenseforhowthisinformationcanhelpyou,I’dlikeyoutoturntoyourStudent Handbook page 142, Online Statement Questions. Please use the online statement to answer these questions.
7. [Completethefirsttwoquestionsasaclass,andthengivestudentseightminutestoanswertherestofthequestions.Whenthey’redone,havethemchecktheiranswerswithapartner.]
IV. Wrap Up (5 minutes)
1. [Asaclass,reviewwhatwascoveredinthelesson.]
SAY SOMETHING LIKE:Whyisitimportanttokeeptrackofyourmoney?Whataresomewaystodothis?
2. SAY SOMETHING LIKE:Sofar,we’vetalkedabouttwowaystospendmoney:withcashandwithpersonalchecks.Nextweek,we’regoingtotalkaboutadifferentwaytospendmoney:creditcards.Creditcardscanbeaconvenientwaytomakepurchases,butlikepersonalchecks,theycanberiskyifyoudon’tusethemcarefully!
Grade 10, Money Matters 3: Keeping Track of Your Money
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Chance Cards
It’spayday! Youjustreceivedapaycheckfor$203.00.Deposititrightaway.
Youoweyourlittlesister$12.00 for Girl Scout cookies you ordered.
Make the check out to Girl Scouts of America.
You’reheadingtothetheme parkthisweekend.Stopbythe ATMandtakeout$75.00.
Sendacheckfor$150.00to State University to cover lab fees for
your fall semester chemistry class.
Thanks,Grandpa! Youjustreceived$30.00asabirthdaygift.Youvowtodeposititrightaway.
Yousendyournewroommate acheckfor$48tocoveranewset
of sheets.
Yourmomlentyou$30.00lastmonth, so you write her a check topaybacktheloan.
It’spayday! Youjustreceivedapaycheckfor$203.00.Deposititrightaway.
Youneedsomecashfor theJuly4thfestival.Stopbythe ATMandtakeout$25.00.
Youjustgottahavethatcoolsweatshirtfor your new university. Write a checktoSportsGearfor$21.34.
Youjustearned$20.00for mowingtheneighbor’slawn.
Deposititrightaway.
You’reheadingoutforanight atthemovies.Betterstopby theATMandtakeout$25.00 formovieticketsandpopcorn.
It’spayday! Youjustreceivedapaycheckfor$203.00.Deposititrightaway.
Afriend’smomgivesyou$35.00 towalktheirdogwhilethey’re onvacation.Depositittoday!
Grade 10, Money Matters 3: Keeping Track of Your MoneyFacilitator Resource 1, Chance Cards
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
What’s in Your Wallet? Answer Key
Facilitator Directions:Readthestorybelowasaclass.Asyouread,highlightthekeyinformationthatwillhelpthestudentskeeptrackofhowmuchmoneyisintheirwalletseachday.ModelhowtocompleteSaturdayandSunday,andthenletthestudentscompletetherestofthechartontheirown.Onceallthestudentshavecompletedtheirwork,callonavolunteertoanswerthequestionatthebottom.
OnSaturday,yougotothemallwithyourbrother.YouseeacoolT-shirtofyourfavoriteband,butyoudon’thaveanymoneyleftinyourwallet.Yourbrotherloansyou$15.00topayfortheshirtandyoupromisetopayhimbackinaweek.Afterall,youknowyou’llbemakingmoneythatweekmowinglawns.
OnSunday,youmake$20.00mowinglawnsandputthemoneyinyourwallet.Monday,yougooutwithfriendsforicecreamandspend$4.00.Tuesday,youmake$10.00mowinganotherlawn,andspend$8.00thatnightatthemovies.Wednesday,yougotothemallwithfriendsandspend$13.00onanewCDand$2.00onasoda.Thursday,youmowanotherlawnandadd$10.00toyourwallet.
Fridaynight,yourbrotherasksforthe$15.00youowehim.Youcheckyourwallet,confidentthere’splentytheretopayhimback.Afterall,youmade$40.00mowinglawns this week. How much is left in your wallet?
Day Income Expenses Amount in Your Wallet
Sunday $20 0 $20
Monday 0 $4 $16
Tuesday $10 $8 $18
Wednesday 0 $15 $3
Thursday $10 0 $13
Friday 0 0 $13(notenoughtopay your brother back)
Grade 10, Money Matters 3: Keeping Track of Your MoneyFacilitator Resource 2, What’s in Your Wallet? Answer Key
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Online Statement Questions Answer Key
Use the online statement to answer the questions below.
1. InlateJune,youwroteachecktoyourcollegetocoveradormdepositof$100.00.Younotedthatitwascheck#1451inyourregister.You’vejustreceivedaletterthatyoustillowethemoney.Lookatyourstatement.Didthecheckclear?(Inotherwords,wasthemoneydeductedfromyouraccount?)Ifso,onwhatdate?
It was subtracted from your account on 7/2/12. (Remind students that when you write a check, the person you write the check to takes it to his bank, and their bank presents it to your bank for payment. When your bank pays, the check has “cleared.” A copy of the cancelled check — provided by your bank — is proof that you’ve paid.)
2. Yourweeklypaycheckis$203.00.Didyoudepositallfourpaychecksthismonth?
Yes. Your statement shows all 4 deposits: 7/08, 7/15, 7/22, and 7/29.
3. YousentachecktoyournewroommateChristocoverasmallmicrowaveforyourdormroom.Fromyourcheckregister,youknowitwascheck#1453.Hasthemoneybeendeductedfromyouraccountyet?
No, because it hasn’t appeared on your statement yet.
4. WhatdatesdidyoumakeATMwithdrawals?Howmuchhaveyouwithdrawnsofarthismonth?
7/05, 7/15, and 7/20, for a total of $125.
5. AtthefamilyJuly4thpicnic,yourUncleSalgaveyou$25.00asagraduationgift.Youweregoingtodepositittokeepfromspendingitrightaway,butnowyoucan’trememberifyoudid.Didyoudepositit?Ifso,when?
You made a deposit for $25 on 7/06, so probably yes. This is where your check register comes in handy, since you can write “Uncle Sal’s gift” on the description line.
6. Howmuchmoneyhaveyoudepositedintoyouraccountthismonth?
$837.00. Four paychecks of $203.00 each, plus $25.
7. Howmanycheckshavebeenpaidbythebankthismonth?
Five checks: numbers 1451, 1452, 1454, 1455, and 1456.
8. WhatwasyouraccountbalanceattheendofJune(beforeyouwrotethechecktoStateUniversity)?Whatisitnow?
$423.45 at the end of June, $912.76 now.
Grade 10, Money Matters 3: Keeping Track of Your MoneyFacilitator Resource 3, Online Statement Questions Answer Key
139© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
What’s in Your Wallet?
OnSaturday,yougotothemallwithyourbrother.YouseeacoolT-shirtofyourfavoriteband,butyoudon’thaveanymoneyleftinyourwallet.Yourbrotherloansyou$15.00topayfortheshirtandyoupromisetopayhimbackinaweek.Afterall,youknowyou’llbemakingmoneythatweekmowinglawns.
OnSunday,youmake$20.00mowinglawnsandputthemoneyinyourwallet.Monday,yougooutwithfriendsforicecreamandspend$4.00.Tuesday,youmake$10.00mowinganotherlawn,andspend$8.00thatnightatthemovies.Wednesday,yougotothemallwithfriendsandspend$13.00onanewCDand$2.00onasoda.Thursday,youmowanotherlawnandadd$10.00toyourwallet.
Fridaynight,yourbrotherasksforthe$15.00youowehim.Youcheckyourwallet,confidentthere’splentytheretopayhimback.Afterall,youmade$40.00mowinglawns this week. How much is left in your wallet?
Day Income Expenses Amount in Your Wallet
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Grade 10, Money Matters 3: Keeping Track of Your MoneyStudent Handbook, What’s in Your Wallet?
140© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Checkbook RegisterEverycheckbookcomeswitharegister.Thisisahelpfulwaytotrackyourchecks,withdrawals,anddepositsandkeepupwithyourcurrentbalance.Noticethatthemaindepositorcreditinformationisincludedonthewhiteline.Directlybelowonthegrayline,youcanaddthereasonforthepurchaseunder“Description.”Inthefarright-handcolumn,youcandetermineyourcurrentbalancebyaddingdepositsandsubtractinganypaymentsorwithdrawals.
CheCk no.
Date DesCription payment, WithDraWal
Deposit, CreDit
BalanCe
$ 423.451451 6/28/12 State University 100.00 100.00
Dorm deposit 323.45ATM 7/5/12 ATM 50.00 50.00
Spending money 273.457/6/12 Deposit 25.00 25.00
Graduation gift 298.457/8/12 Paycheck 203.00 203.00
501.451452 7/9/12 Town Tunes 17.48 17.48
Birthday gift 483.971453 7/11/12 Chris Jones 45.00 45.00
Dorm microwave 438.97
Grade 10, Money Matters 3: Keeping Track of Your MoneyStudent Handbook, Checkbook Register
141© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Online StatementMany banks offer online banking, which allows you to check your current balance anytime. Online statements vary, but many share some of these common features.
FIRST BANK ONLINEBANKING Working for you!
Account Details Account: [Checkingaccount–1234](Clicktochangeaccount)Date: [7/1/12throughpresent](Clicktochangedates)
Transactions
DateDescription (click to see details)
Type Amount Balance
7/29/12 Check1456 Check –$32.56 $912.76
7/29/12 Deposit Deposit +$203.00 $945.32
7/22/12 FirstBankATMWithdrawal Withdrawal –$25.00 $742.32
7/20/12 Deposit Deposit +$203.00 $767.32
7/18/12 Check1455 Check –$24.13 $564.32
7/17/12 Check1454 Check –$48.52 $588.45
7/15/12 FirstBankATMWithdrawal Withdrawal –$50.00 $636.97
7/15/12 Deposit Deposit +$203.00 $686.97
7/09/12 Check1452 Check –$17.48 $483.97
7/08/12 Deposit Deposit +$203.00 $501.45
7/6/12 Deposit Deposit +$25.00 $298.45
7/05/12 FirstBankATMWithdrawal Withdrawal –$50.00 $273.45
7/2/12 Check1451 Check –$100.00 $323.45
$423.45
Grade 10, Money Matters 3: Keeping Track of Your MoneyStudent Handbook, Online Statement
142© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Online Statement QuestionsUse the online statement to answer the questions below.
1. InlateJune,youwroteachecktoyourcollegetocoveradormdepositof$100.00.Younotedthatitwascheck#1451inyourregister.You’vejustreceivedaletterthatyoustillowethemoney.Lookatyourstatement.Didthecheckclear?(Inotherwords,wasthemoneydeductedfromyouraccount?)Ifso,onwhatdate?
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
2. Yourweeklypaycheckis$203.00.Didyoudepositallfourpaychecksthismonth?
__________________________________________________________________________
3. YousentachecktoyournewroommateChristocoverasmallmicrowaveforyourdormroom.Fromyourcheckregister,youknowitwascheck#1453.Hasthemoneybeendeductedfromyouraccountyet?
__________________________________________________________________________
4. WhatdatesdidyoumakeATMwithdrawals?Howmuchhaveyouwithdrawnsofarthismonth?
__________________________________________________________________________
5. AtthefamilyJuly4thpicnic,yourUncleSalgaveyou$25.00asagraduationgift.Youweregoingtodepositittokeepfromspendingitrightaway,butnowyoucan’trememberifyoudid.Didyoudepositit?Ifso,when?
__________________________________________________________________________
__________________________________________________________________________
6. Howmuchmoneyhaveyoudepositedintoyouraccountthismonth?
__________________________________________________________________________
7. Howmanycheckshavebeenpaidbythebankthismonth?
__________________________________________________________________________
8. WhatwasyouraccountbalanceattheendofJune(beforeyouwrotethechecktoStateUniversity)?Whatisitnow?
__________________________________________________________________
Grade 10, Money Matters 3: Keeping Track of Your MoneyStudent Handbook, Online Statement Questions
MONEY MATTERS4Using Credit Cards with Care
Approx.45minutes
I. WarmUp:BuyNow,PayLater!(10 minutes)
II. ItAddsUpFast!HowInterestRates Work (15 minutes)
III. WhyItMatters:FinancialTroublesandCreditRating (10 minutes)
IV. WrapUp:AdvicetoaFriend(10 minutes)
Duringthislesson,thestudent(s)will:
• Understand the risks of credit cards and how interest rates can increase your credit card balance.
• Learnaboutcreditrecordsandtheimportanceofgoodcredit.
• Explainwhyit’simportanttopaycreditcardbillsinfullandontime.
❑ STUDENT HANDBOOK PAGES: • StudentHandbookpage143,ChargeIt?
• StudentHandbookpage144,ThingstoRemember About Credit Cards
❑ FACILITATOR PAGES: • FacilitatorResource1,ChargeIt?
(Answer Key)
❑ Overheadprojector
❑ Laptop,LCDprojector,andspeakers
❑ Internetaccess(optional)
❑ Ruledpaper
AGENDA MATERIALS
OBJECTIVES
• Whataretheadvantagesandrisksofusingcreditcards?
565
TheBIG Idea
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
566 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
OVERVIEW ...........................................................................................
In this lesson, students will watch a brief video about a recent college graduate who learned a valuablelessonrackingupcreditcardchargesshedidn’tpayoff.They’lldiscussadvantagesanddisadvantagesofcreditcards,specificallythedangersassociatedwithinterestrates.They’llreviewsomeexamplesofhowinterestratescanincreasetheactualcostofitemsifcreditcardchargesaren’tpaidinfullandontime.Finally,studentswilllearnaboutcreditreports—andwhythewaytheyhandlecreditnowcanhaveabigimpactontheirfutures.
PREPARATION ....................................................................................
❑ ListtheBIG IDEAandtheday’sactivitiesontheboard.
❑ Writetheday’svocabularywordsanddefinitionsontheboard.
❑ PrintoutacopyoftheStudent Handbook page 143, Charge It?ontoatransparencytoshowonanoverheadprojector.
❑ PreviewtheCreditCardDebt:AStudent’sStoryvideoat... http://www.aie.org/managing_your_money/Credit-cards/Credit-Card-Debt-A-Student-Story.cfm (under Credit Cards), and make arrangements to view it in class by downloading it to your laptop(orviaInternetconnectioninclass.)
VOCABULARY .....................................................................................
Credit: Moneyyouborrow(forexample,fromabank)withthepromisetopayitbackatalater date or over time.
Interest: The amountyoupayforthemoneyyouborrow,usuallyapercentageofthemoneyyou borrow.
Annual Percentage Rate (APR): Theamountofinterestyoupayoverayear.
Credit Record:Arecordofallthemoneyyou’veborrowed,includingcreditcards,andyourpaymenthistory.
Grade 10, Money Matters 4: Using Credit Cards with Care
567© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
IMPLEMENTATION OPTIONS .........................................................
ThechartonStudent Handbook page 143, Charge It? is based on an online calculator found athttp://www.practicalmoneyskills.com/.
Mouseoverthe“Calculators”tabnearthetopofthepageandselectthe“Credit&Debt”optionfromthedrop-downmenu.Under‘SelectaCalculator,’click“CostofCredit.”Youcanenterapurchaseprice,interestrate,andmonthlypayment,thenseehowlongitwilltaketopayoffyourcreditcardandhowmuchtotalinterestyou’llpay.Studentsmayenjoythisasasupplementtotheinformationpresentedinthechart.
In Activity II, ifyourstudentsseemcompletelylostwhenyouaremodelinghowtopredictthenumberofpaymentsandinterestchargeson Student Handbook page 143, Charge It? feel freetomodel the last tworowsasaclass. Youshouldfollowthesameformataswritten insection 5 of this activity.
Grade 10, Money Matters 4: Using Credit Cards with Care
568 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
I. Warm Up: Buy Now, Pay Later! (10 minutes)
1. SAY SOMETHING LIKE:Whoherethinksyou’llhaveacreditcardwhenyouturn18?Whilecreditcardssoundveryappealing,theyshouldbeusedwithcaution.Let’sstartby watching a short video about a recent college graduate who used her credit card throughout her college years.
2. [Show the class the Credit Card Debt: A Student’s Story video from the following website:http://www.aie.org/managing_your_money/Credit-cards/Credit-Card-Debt-A-Students-Story.cfm. (See Preparation.)]
3. SAY SOMETHING LIKE:WhatcanwelearnfromRobyn’sexperience?[Havestudentssharetheiranswers.]Thevideostatesthat21%ofcollegestudentsgraduatewith$7,000increditcarddebt.Whathappenstothatamountthelongerittakestopayoffthatdebt?[Allowstudentstorespond.]
4. SAY SOMETHING LIKE:Ofcourse,itcanbehardtoresistthetemptationofcreditcards.Let’simagineourselvesinthissituation:It’sthesummerbeforecollegeandyou’reshoppingforsomenewclothes.You’reabouttobuya$40sweater,whenthesalespersonasksifyou’dliketoopenacreditcardwiththestore.Ifyouopenanaccounttoday,youcansave15%offyourpurchase.Wow,youthink—youcouldsave$6onthatsweater!Plus,thatwouldleave$40cashinyourpocketyoucouldspendonsomethingelse.Whatwouldyoudo?Whatdoyouneedtoknowbeforemakingthisdecision?
[Note:Therearemanyfinancialexamplesinthislessonthatillustratepurchaseprices,interest,minimumpayments,latefees,etc.Thoughit’snotnecessarytogothroughelaboratecalculationsforeachexample,it’shelpfultowritethenumbersontheboardsostudentscanfollowthediscussion.]
5. SAY SOMETHING LIKE:Onceyouturn18,you’regoingtoreceivealotofenticingoffersforcreditcards.Butit’simportanttounderstandthebenefitsanddangersofcredit before you think about credit cards. First, what is credit?Creditallowsyoutoborrowmoney,forexample,fromabank,andpayitbackatalaterdateorovertime.Soacreditcardletsyoubuysomethingnowandpaylater.Banksandotherfinancialinstitutionsissuecreditcards.Sowhenyouusetheircreditcard,you’reborrowing money from them.
ACTIVITY STEPS ..................................................................................
Grade 10, Money Matters 4: Using Credit Cards with Care
569© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
6. SAY SOMETHING LIKE:We’regoingtospendalotoftimetalkingabouttherisksofcreditcardstoday.Buttheydohavesomeadvantages.Cananyonethinkofany?[Makealistontheboard,suchas:• Theyallowyoutomakepurchasesnowandpaylater.
• Theyallowyoutomakepurchasesinanemergencywhenyoudon’thave the cash.
• They’resaferandmoreconvenienttocarrythancashorchecks.
• Theykeeparecordofyourpurchases.
• They’renecessarytopurchasethingsonline.
• Ifusedresponsibly,theyallowyoutoestablishahistoryofgoodcredit, which will make getting loans for a car, school, or a house easierdowntheroad.]
7. SAY SOMETHING LIKE:Creditcardssoundprettygreat,don’tthey?Well,here’sthemostimportantthingtoknowaboutcreditcards.[Youmaywanttowritethisontheboard.]
If you don’t pay your credit card bill IN FULL and ON TIME, it will cost you a lot of money.
Yousee,ifyoudon’tpaybackthatloanrightaway,you’regoingtopayinterest andlatefees.You’llpayinterest,oracertainpercentage,onanychargesthataren’tpaidinfull.Soifyouowe$100,andyouonlypay$10,you’lloweinterestontheremaining$90.Andifyoudon’tmakeanypayment,ordon’tpayontime,you’llpayalatefee.
Whydoesitcostsomuchtoborrowmoney?Well,banksareinthebusinesstomakemoney.Andthey’regoingtochargeyouforborrowingtheirmoney.Here’stheotherimportantthingtoremember:
Thelongeryouputoffpayingyourcreditcardbill,themoreyou’regoingtoowe.
Inotherwords,ifyoucharge$100.00onyourcreditcard,it’snotgoingtostayat$100.00.Withinterestratesandfees,thatamountwillkeepincreasinguntilyoumaynotbeabletopayyourbillsatall.
8. SAY SOMETHING LIKE:Intoday’slesson,we’regoingtotakeacloserlookattheserisks and why it matters in the long term.
Grade 10, Money Matters 4: Using Credit Cards with Care
570 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
II. It Adds Up Fast! How Interest Rates Work (15 minutes)
1. SAY SOMETHING LIKE:Let’ssayyoudecidedtoopenacreditcardaccountatthestorewhereyouboughtthesweater.Afewweekslater,youreceiveyourfirstbillfor$34.00.Younoticeyoucouldmakea“minimumpayment”of$15.00,butyoureallyneedthatmoneythisweekend.Youdecidenottopayanythingnow,andstickthebillinyourdresser.Thenextmonth,youopenyourbillandyounoticeit’s$59.61.Whathappened?Youthoughtyoupaid$34forthatsweater!Youlookcloselyatthebillandseethosechargescamefromfinancechargesandlatefees.
2. SAY SOMETHING LIKE: Youoweafinance chargeanytimeyoudon’tpayyourbillinfull.Afinancechargeistheamountofinterest you owe. Remember, interest is money youpayforwhatyou’veborrowed.Interestratesaredescribedaspercentages.Thehighertheinterestrate,themoremoneyyoupay.
Youowealate feeanytimeyoudon’tmakeaminimumpayment,orifyoumakeapaymentlate.Latefeescanbeveryhigh,soevenifyoucan’tpayinfull,it’simportanttomakeaminimumpaymentandpayontime.
3. SAY SOMETHING LIKE:Let’stakeacloserlookathowinterestrateswork.Creditcards describe interest as an annual percentage rate (APR), or the amount of interest youpayoverayear.SayyouhaveanewcreditcardwithanAPRof18%.Youuseyourcardtopayforabunchofstuffforyourdormroom.Yourcardhasabalanceof$1,000.00.Youstopusingyourcard,butdon’tpaythatbalanceforafullyear.Ayearlater,you’lloweanadditional18%ininterest—or$180.Yourbalancejustclimbedto$1,180.00!(And,ofcourseyouhavetokeepmakingpaymentsandpayaportionofthisinteresteverymonth.)
4. SAY SOMETHING LIKE:Atrapsomepeoplefallintoisthinkingtheycanjustmakeaminimumpaymentontheircreditcardandkeeponcharging.Taketheexampleabove.Yourcreditcardbalanceis$1,000.Youdecidetostopusingyourcard,andstartmakingtheminimumpaymentof$20everymonth.Howmanymonthswouldittaketopayoffabillof$1,000at$20permonth?Youmightthinkitwouldtake50months—afterall,divide$1,000by$20andyouget50,right?
Well,thinkagain.Eventhoughyou’repaying$20eachmonth,thebankischargingyouinterest(18%APR)onthemoneyyoustillowe.Eachmonth,thatinterestisaddingup.Meaningthelongerittakestopay,themoreyouowe!Soeventhoughyou’repaying$20amonthtocoverthe$1,000balance,itwilltakealmostEIGHTYEARSto
Grade 10, Money Matters 4: Using Credit Cards with Care
571© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
payofftheloan.Intheend,youwillhavepaid$862ininterest(financecharges).Inotherwords,you’dhavetopay$1,862foritemsworthonly$1,000!
5. SAY SOMETHING LIKE:TurntoyourStudent Handbook page 143, Charge It? [Displaythepageonanoverheadprojector.]
Here’salookathowmuchyou’denduppayingforitemswhenyoumakesmallpaymentsandarechargedinteresteverymonth.Wejustdiscussedthefirstexample,inwhichyoupaidoffa$1,000balancewithpaymentsof$20.Lookatthesecondexample.Whathappensifyouincreaseyourmonthlypaymentsto$40?Inthiscase,youwouldbedoublingyourminimumpayment.Howmanypaymentsdoyouthinkyou’llneedtomake?[Allowstudentstorespond.]Inthiscase,Iwouldhaveguessedthatthenumberofpaymentswouldhavedecreasedbyonehalfsincewedoubledtheminimumpayment.Thiswouldmeanthatitwouldtake47monthstopayoffa$1,000billwithaminimumpaymentof$40.Inreality,itwouldtake32monthstopayoffthisbill.Why?(Becausethebalanceisreducedmorequickly,you’dpaylessinterest.)
Nowwe’regoingtopredicttheamountofinterestyouwouldbechargedforaminimumpaymentof$40.Ifaminimumpaymentof$20resultsininterestof$862.23,whatdoyouthinktheinterestchargeswouldbeforaminimumpaymentof$40?[Allowstudentstorespond,andthenfillinthecorrectanswerfortheinterestchargesandfinalcostontheoverhead.]Increasingtheminimumpaymentby$20savedabout$600.
[Theninstructthestudentstomakepredictionsfortheremainingblanksections.Explaintothestudentsthatit’sOKiftheygetthewronganswer.Theyshouldtrytomaketheirpredictionsreasonable,butthereisnopenaltyforanswersthatarewayoff.Givethemthreeminutestocompletethiswork,andthengooverthecorrectanswers as a class. (See Facilitator Resource 1, Charge It? Answer Key).]
SAY SOMETHING LIKE:Soremember:If you only pay your minimum payments, it will take years to pay off your credit card — and you’ll end up paying a lot more!
III. Why It Matters: Financial Troubles and Credit Rating (10 minutes)
1. SAY SOMETHING LIKE:Everyyear,millionsofAmericansmakethemistakeofignoringtheirever-growingcreditcardbills.ThecreditcarddebtcarriedbytheaverageAmericanisover$8,000!AndAmericanspaybillionsofdollarsinfinancechargeseveryyear.Maybetheyhopetheproblemwillgoaway.Ortheymightthinkthatitwon’tgetanyworse.Butthelongertheyignoretheproblem,theworseitgets.
Grade 10, Money Matters 4: Using Credit Cards with Care
572 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Evenifsomeonestopsusinghiscreditcardaltogether,hisbalancewillkeepgrowingasfinancechargeskeepaddingup.
2. SAY SOMETHING LIKE:Financialtroubleisjustonereasontopayyourbillsontime.Youcouldalsogetintolegaltrouble.Afterall,whenyousignacontractforacreditcard,youaremakingalegalobligationtothebankordepartmentstoretopaythemoney back on time. If you fail to do so, they could take legal action against you.
3. SAY SOMETHING LIKE:Butthere’sanotherveryimportantreasonyoushouldbecarefultopayyourcreditcardbillsontime:yourcredit record.Yourcreditrecordisbasicallyarecordofallthemoneyyou’veborrowed—includingallyourcreditcards—andyourpaymenthistory.Ifyouhaveborrowedmoneyandpaiditbackontime,youwillhavegoodcredit.Ifyouhavenotpaidbackmoneyontime,you’llhave bad credit.
4. SAY SOMETHING LIKE:Youmightbewonderingwhythismatters—afterall,who’sgoingtoseeyourcreditrecord?Theansweris,lots of people — from banks to future employers.Yousee,yourcreditrecordfollowsyouwhereveryougo.Anytimeyouapplyforaloanoranyothercreditcard,yourcreditrecordischecked.Futureemployersmayalsocheckyourcreditrecord.Afterall,peoplewanttoseeifyouarereliableandtrustworthy—doyoukeepyourpromisewhenyouowepeoplemoney?Withabadcreditrating,youcouldgetturneddownforajobyoureallywant.Oryoumightnotbeabletogetaloantopurchasesomethingreallyimportant,suchasahomeor a car.
In some cases, you may still receive a loan, but at a much higher interest rate. For example:Ifyouhavegoodcredit,youmightbeabletoborrowmoneytobuyahouseat6%interest.Ifyourcreditisbad,itwillcostyoumore,suchas7%interest.Thatmightnotsoundlikealot,butoverthe30yearsittakestopayoffa$200,000mortgage,badcreditwillcostyou$47,340more!
5. SAY SOMETHING LIKE:Thebottomlineisthis:The way you handle your money now can have a big impact on your future.
Grade 10, Money Matters 4: Using Credit Cards with Care
573© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
IV. Wrap Up: Advice to a Friend (10 minutes)
1. Have students turn to their Student Handbook, page 144, Things to Remember About Credit Cards. Review the list as a class.
2. SAY SOMETHING LIKE:Wetalkedalotaboutthedangersofcreditcardstoday.Butifusedcarefully,creditcanplayanimportantroleinourlives.Creditallowspeopletoaffordbigpurchasesthatwillbeusefulformanyyears.Forexample,inyourlifetime,youwillprobablytakeoutloansforahouse,acar,andmaybeevencollege. Not only do these loans carry lower interest rates than credit cards, these purchasescanoftenbeaverywiseinvestmentbecausetheyhavelastingvalue.Yourcollegeeducationwillhelpyouthroughoutyourlife.Yourhomeprovidesaplaceforyourfamilytolive—andwillprobablyincreaseinvalueovertime.
3. SAY SOMETHING LIKE:Beforeweendtoday,I’dlikeyoutoimagineyou’reoutshoppingwithafriend.You’reatoneofyourfavoritestoresandthesalespersonasksyourfriendaboutopeninganewcardandsavingontoday’spurchase.Yourfriendisreadytosignuponthespot.Whatwouldyousaytoyourfriendtohelphimorhermakeaninformeddecision?Writeanotewithyouradvice.
Grade 10, Money Matters 4: Using Credit Cards with Care
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Charge It? (Answer Key)
Givestudentsthreeminutestocompletethepredictionsonthechartbelowandthenreview the answers as a class.
Item and Original Cost
Minimum Payment
Number of Payments
Interest Charges
Final Cost
Stuff for dorm room $1,000
$20 94months (Seven years and 10 months)
$862.23 $1,862.23
Stuff for dorm room $1,000
$40 32 months (Two years and eight months)
$262.72 $1,262.72
Stereo $500
$20 32 months (Twoyears,eightmonths)
$131.39 $631.39
Stereo $500
$40 14 months $57.85 $557.85
Miscellaneousexpenses(clothes, CDs, dinners out) $3,000
$50 155 months (almost13years!)
$4,732.78 $7,732.78
Miscellaneousexpenses(clothes, CDs, dinners out) $3,000
$75 62 months (Five years and two months)
$1,615.73 $4,615.73
Tocreateyourownexamplesshowingthecostofcreditcards,clickon http://www.practicalmoneyskills.com/wizards/credit/index.phpandtrytheonlinecalculator.
Grade 10, Money Matters 4: Using Credit Cards with CareFacilitator Resource 1, Charge It? (Answer Key)
143© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Charge It?Youhaveanewcreditcardwithan18%APR,orannualpercentagerate.Thechartbelowgivesyoualookatwhatyou’llreallyspendondifferentitems—andhowlongitwilltaketopaythebill—ifyoudon’tpaythebillinfulleachmonth.
Directions:Predictthenumberofpayments,interestcharges,andfinalcostfortheblankspacesbelow.
Item and Original Cost
Minimum Payment
Number of Payments
Interest Charges
Final Cost
Stuff for dorm room $1,000
$20 94months (Seven years and 10 months)
$862.23 $1,862.23
Stuff for dorm room $1,000
$40
Stereo $500
$20 32 months (Twoyears,eightmonths)
$131.39 $631.39
Stereo $500
$40
Miscellaneousexpenses(clothes, CDs, dinners out) $3,000
$50 155 months (almost13years!)
$4,732.78 $7,732.78
Miscellaneousexpenses(clothes, CDs, dinners out) $3,000
$75
Tocreateyourownexamplesshowingthecostofcreditcards,clickon http://www.practicalmoneyskills.com/wizards/credit/index.phpandtrytheonlinecalculator.
Grade 10, Money Matters 4: Using Credit Cards with CareStudent Handbook, Charge It?
144© 2010 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Things to Remember About Credit CardsThinkingaboutgettingacreditcardwhenyouturn18?Herearesomeimportantthingstoremember:
• Whenyouuseacreditcard,youareborrowingmoneyfromabankwiththepromisetopayitback.
• Ifyoudon’tpayyourcreditcardINFULLandONTIME,youwillendupowingMOREthan the money you borrowed. Two major reasons are:
❑ Late Fees:Ifyoudon’tmakeanypaymentwhenthebillisdue—orifyoumakeapaymentaftertheduedate—youwillbechargedlatefees.Latefeescanbeveryhigh,suchas$25.00perlatepayment.
❑ Interest Charges (orfinancecharges):Ifyoudon’tpayyourbillinfull,youmustpayinterestonthemoneyyouowe.Theinterestisapercentageofthemoneyyouowe.Thisinterestkeepsaddingupaslongasyouowethemoney.
• Thelongeryouputoffpayingyourcreditcardbill,themoreyou’regoingtoowe.
❑ Evenifyoumakeminimumpaymentseverymonth,theinterestisstilladdinguponthe money you still owe.
• If you only pay your minimum payments, it will take years to pay off your credit card. If you don’t pay your credit card bills in full and on time, you could face:
❑ Financial Trouble: Thelongeryouignoreyourbills,themoreyourbalancewillgrow—untilyourbillsmaybeimpossibletopay.
❑ Legal Trouble:Whenyousignacontractforacreditcard,you’remakingalegalobligationtothebankordepartmentstoretopaymoneybackontime.Ifyoufail to do so, they could take legal action against you.
❑ A Poor Credit Record:Yourcreditrecordtracksallthemoneyyou’veborrowedandyourpaymenthistory.Whenyouapplyforaloan,anothercreditcard,andevenajob,peoplewillcheckyourcreditrecord.Youcouldgetturneddownforfutureloansandjobswithapoorcreditrecord.
• Thewayyouhandleyourmoneynowcanhaveabigimpactonyourfuture.
Grade 10, Money Matters 4: Using Credit Cards with CareStudent Handbook, Things to Remember About Credit Cards
MONEY MATTERS5Before You Sign: Contracts
Approx.45minutesI. WarmUp:YourOwnCell
Phone (10 minutes)
II. ComparingPlans(15minutes)
III. ReadingtheFinePrint: Reviewing Contracts (10 minutes)
IV. WrapUp(10minutes)
Duringthislesson,thestudent(s)will:
• Understandtheimportanceofcarefullyreviewingacontract.
• Comparethreedifferentcellphoneplansandanswerquestionsbasedontheinformation.
• Review a service contract to identify rules, limitations, and any hidden costs of a cell phoneplan.
❑ PORTFOLIO PAGES: • Portfoliopages28–30,Grade10SkillsChecklist
❑ STUDENT HANDBOOK PAGES: • StudentHandbookpage145,ChooseYourPlan
• StudentHandbookpages146–147, StudentQuestions
• StudentHandbookpage148, Cell Phone Service Contract
• StudentHandbookpage149, WrapUp:YourFirstPhoneBill
❑ FACILITATOR PAGES: • Facilitator Resource 1, Cell Phone Ad
• FacilitatorResource2,StudentQuestions Answer Key
• FacilitatorResource3,YourFirstPhoneBillAnswer Key
❑ Overheadprojector
❑ Calculators
❑ Highlighters(oneperstudent)
AGENDA MATERIALS
OBJECTIVES
• Whataresomeimportantthingstoconsiderbeforesigning acontract?
577
TheBIG Idea
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
578 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
OVERVIEW ...........................................................................................
Inthislesson,studentswilllearnabouttheimportanceofcarefullyreviewingcontracts,astheyselectacellphoneplanfortheirfirstyearincollege.They’llbeginbyconsideringanenticingadvertisementforafictionalcellphoneplan.Next,they’llcomparethreeplansofferedbythecellphonecompanyandusetheinformationtoanswerspecificquestionsabouttheplans.Thenthey’llreadthecompany’sservicecontracttoidentifysomeofthehiddencostsandlimitationsoftheplan.Finally,they’llbegivenasimplescenarioofcellphoneuseanddeterminetheamountof the first monthly bill.
PREPARATION ....................................................................................
❑ ListtheBIG IDEAandtheday’sactivitiesontheboard.
❑ Writetheday’svocabularywordanddefinitionontheboard.
❑ Thefollowinghandoutsneedtobemadeintooverheadtransparenciesorcopiedontochartpaper:• Student Handbook pages 146–147, Student Questions
• Student Handbook page 149, Wrap Up: Your First Phone Bill
• Facilitator Resource 1, Cell Phone Ad
VOCABULARY .....................................................................................
Contract: Asignedagreement(ordocument)betweentwoormoreparties,suchasanindividualandacompany.
IMPLEMENTATION OPTIONS ..........................................................
Forclassesnotproficientinmath,youmaywishtoworkthroughthecalculationstogether,usingtheblackboardoroverheadprojector.
Grade 10, Money Matters 5: Before You Sign: Contracts
579© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
I. Warm Up: Your Own Cell Phone (10 minutes)
1. SAY SOMETHING LIKE:Welcomeback,everybody.Lastweekyoulearnedaboutcreditcards—andwhythewayyouusethemnowcanhaveabigimpactonyourfuture.Thisweek,we’regoingtotalkaboutsomethingelsethatcanhaveabigimpactonyourfuture:contracts.
2. SAY SOMETHING LIKE:Youwillsignmanycontractsinyourlifetime,whetheryou’resigningupforacreditcard,aserviceforyourhomelikeelectricityorwater,orevenmedicaltreatment.Whoknowswhatacontractis?[Takeanswersandjotdownrelevantwordsorphrasesontheboard.]
A contractisasignedagreementbetweenyouandacompanyoranotherindividual.Acontractclearlystatesthetermsofanagreement,suchaswhatwillbeprovidedandfor how long. A contract is a legal document, so you are making a legal commitment whenyousignacontract.Thatmeanstherecouldbefinancialorlegalpenaltiesifyouchangeyourmind.Andthat’swhyit’ssoimportanttoreviewanycontractverycarefully before you sign it.
3. SAY SOMETHING LIKE:Let’slookatanexampleofatimeinthenearfuturewhenyoumightbesigningacontract:whenit’stimetochooseandpayforyourowncellphoneplan.
Imaginethisscenario:You’reabouttoleaveforcollege,whereyou’llneedanewcellphonetokeepintouchwithfriendsandfamily.YourparentshavecellphoneservicewithacompanycalledRingRing.RingRingoffersfreecallstoanyoneelsethatusestheirnetwork,soyouhavedecidedtochooseaplanwithRingRing.Yourparentshaveofferedtopay$50permonthtocoveryourcellphonecharges.Youjustneedtofigureoutwhichplanworksforyou.
Asyou’reflippingthroughthenewspaperoneafternoon,youseethisad.[PuttheFacilitator Resource 1, Cell Phone Adontheoverheadprojector.]
Youfallinlovewiththeorangephone—you’veneverseenanotheronelikeit!Plus,it’sFREEifyousignupfortheStudentPlan,whichlookslikeit’sinyourbudget.
ACTIVITY STEPS ..................................................................................
Grade 10, Money Matters 5: Before You Sign: Contracts
580 © 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
4. SAY SOMETHING LIKE:Whatdoyouthink?Shouldyousignuprightaway? [Takeanswers.]
No,youprobablyshouldn’tjustchooseaplanbasedonthephone,right?Whataresomethingsyou’llneedtoconsiderbeforechoosingacellphoneplan?[Takeanswersfromtheclass;makealistontheboard.(Examples:numberoffreeminutes;costforcallswhenyouexceedyourminutes;peakandoff-peakhours;costforout-of-areaorinternationalcalls;costfortextmessagingorInternetaccess;taking/sendingpictures;downloads;etc.)]
II. Comparing Plans (15 minutes)
1. SAY SOMETHING LIKE:OK,let’ssayyoumakeawisechoice—tocomparedifferentplansofferedbyRingRinginsteadofjustchoosingtheplanthatgetsyouthecoolorangephone.TurntoyourStudent Handbook page 145, Choose Your Plan and lookatthethreebasicplansofferedbyRingRing.
2. SAY SOMETHING LIKE:Howaretheseplansdifferent?[Takeanswers,suchasnumberoffreeminutes,costforadditionalminutes,andoverallcost.]
3. SAY SOMETHING LIKE:Next,turntoStudent Handbook pages 146–147, Student Questions. Use the chart in Student Handbook page 145, Choose Your Plan to answerthefirstsetofquestions.[Givestudents10minutestocompletethequestions,andthenreviewtheanswersasaclass.]
III. Reading the Fine Print: Reviewing Contracts (10 minutes)
1. SAY SOMETHING LIKE:Sayyou’vedecidedtogowithPlanB,theStudentPlan,andyou’rereadytosignup.Butbeforeyoudo,it’simportanttocarefullyreviewthecontractfortheplan.Eventhoughcontractscanbecumbersometoreadsometimes,theyincludeimportantinformation—andextracosts—youmaynothaveconsidered.Afterall,flashyadvertisementsaredesignedtohighlightjustthedesirablefeaturesofaproductorservice.Youhavetoreadthefineprinttofindtherealtruthbehindtheadvertisement.Usually,nothing’sas“free”or“easy”asitsounds!
2. [Have the class turn to Student Handbook page 148, Cell Phone Service Contract. Give each student a highlighter. Instruct students to use the information in this contract to answer the second set of questions on the Student Handbook pages 146–147,
Grade 10, Money Matters 5: Before You Sign: Contracts
581© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Student Questions. Students should highlight this information on their contract. Give thestudentssevenminutestocompletethesequestions.Iftimepermits,reviewtheanswersasaclass.]
IV. Wrap Up (10 minutes)
1. SAY SOMETHING LIKE:Beforeweendfortheday,I’dlikeyoutoturntoyourStudent Handbook page 149, Wrap Up: Your First Phone Bill. In this scenario, you havedecidedtogowithPlanB,theStudentPlan—youjustcouldn’tresistthatorangephone.ButwhenthefirstbillarrivesattheendofSeptember,you’reabitsurprised.Readthedetailsonyourstudenthandbookpage,andfigureoutthetotalofyourfirstbill.
2. [Iftimepermits,bringstudentstogethertosharetheiranswers.DiscusswhetherPlanBwasthebestdecision,orhowyoucouldchangeyourcellphoneusetoloweryourfuturecellphonebills.]
SKILLS CHECKLISTDirectstudents’attentiontoPortfolio pages 28–30, Grade 10 Skills Checklist. Have studentscompletetheskillschecklistquestionsforMoneyMattersskills.
Money MattersI can…
Explainwhyabudgetisimportant,andcanname categories to include when creating one.
❏
not at all❏
somewhat❏
very well
Keeptrackofthemoneyinacheckingaccount.❏
not at all❏
somewhat❏
very well
Describetheprosandconsofusinga credit card.
❏
not at all❏
somewhat❏
very well
Explainwhattothinkaboutwhenconsidering acontractforacellphone.
❏
not at all❏
somewhat❏
very well
Grade 10, Money Matters 5: Before You Sign: Contracts
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
As you head off to college…
What will your cell phone say about you?
Chooseaphonethatfitsyourpersonalstyle. Available in ruby red, Florida orange, lemon yellow, grass green, sky blue, and plum purple.
TheNewRainbow Phone from RING RING.
YoursFREE with the Student Plan —only$49.99/month.
❑ 500 minutes a month
❑ Unlimitednights&weekends
❑ Free calls to anyone in the RING RING network.
RING RING Connecting you to your world.
Grade 10, Money Matters 5: Before You Sign: ContractsFacilitator Resource 1, Cell Phone Ad
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Student Questions Answer KeyPART 1
1. Excludingcallstoyourfamily,youestimateabout30minutesoftalktimeeachdayduringdaytimehours(thatis,beforeyourfreenights/weekendstakeeffect).Completethecalculationsbelowusingeachofthethreeplans.
PLAN A CostMonthly access fee $39.99
Over-limit charge
a. 30 minutesperdayx20weekdays/month= 600 (minutes talked)
b. 600 (minutestalked)– 400 minutesallowed= 200 (extraminutes)
c. 200 (extraminutes)x$.45/minute= $90 (over-limit charge)
$90.00
Total Cost $129.99
PLAN B CostMonthly access fee $49.99
Over-limit charge
a. 30 minutesperdayx20weekdays/month= 600 (minutes talked)
b. 600 (minutestalked)– 500 minutesallowed= 100 (extraminutes)
c. 100 (extraminutes)x$.40/minute= $40 (over-limit charge)
$40.00
Total $89.99
PLAN C CostMonthly access fee $59.99
Over-limit charge
a. 30 minutesperdayx20weekdays/month= 600 (minutes talked)
b. 600 (minutestalked)– 650 minutesallowed= 00 (extraminutes) Since the minutes talked was less than the minutes allowed, no extra minutes were used.
c. 0 (extraminutes)x$.35/minute= $0 (over-limit charge)
$0.00
Total Cost $59.99
2. Basedonyouranswerstoquestion1,whichplanareyoubetteroffchoosing?Explain.You’re much better off with Plan C, which will allow you to talk your estimated 30 minutes per weekday. With Plan B, you’re paying $40.00 for extra minutes, bringing your total monthly bill to $89.99. For Plan A, you’re paying $90.00 for extra minutes, which raises your total monthly bill to $129.99.
Grade 10, Money Matters 5: Before You Sign: ContractsFacilitator Resource 2, Student Questions Answer Key
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Student Questions Answer Key
PART 2
1. Howmuchwillyouhavetopaytoactivateyourlinethefirstmonth?(See“activationfee.”)$35
2. Nameatleasttwootherfeesyou’llpayeachmonth.Taxes, monthly universal service charge, monthly regulatory charge, monthly administrative charge
3. YouliketheRingRingplansbecausetheyofferunlimitednightandweekendcalls.Whattimedofreecallsbeginintheevening?Monday–Friday evening at 9:01 pm
4. ImagineyouchoosePlanB,whichoffers500freeminutes.InSeptember,youonlyuse475minutes.Whathappenstoyourunusedminutes?”Unused allowance minutes lost”
5. Whenyougettoschool,youfindthatyoudon’tgetverygoodreceptionfromyourdormroom.YoudecidetodropRingRingaltogether.Yousignedupforayear-longcontract.Howmuchmightyouhavetopaytocancel(terminate)yourcontractearly?Up to $175
6. Sinceyou’renewtotown,youmightneedtocallinformation(411)oftentofindlocalnumbers.Howmuchwilleachcallcostyou?$1.49 per call plus airtime
7. Youcarefullyplanthecallsyoumake(orOUTGOINGcalls)soyoudon’tgooveryourminutes.ButwhataboutcallsthatotherpeoplemakeTOyou,orINCOMINGcalls)?Willthosetakeupyourminutesaswell?Yes, when the call connects to the Ring Ring network on incoming calls.
Grade 10, Money Matters 5: Before You Sign: ContractsFacilitator Resource 2, Student Questions Answer Key
© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Wrap Up: Your First Phone Bill Answer Key
AftercomparingthedifferentRingRingplans,youdecidedtogowithPlanB,theStudentPlan.YoudecidedyoujustHADtohavethatorangephone,andtheplan($49.99)waswithinthemonthlybudgetyourparentsofferedtopay.However,you’reinforasurprisewhenthebillarrivesattheendofthefirstmonth.Tobegin,youwentoveryourallowanceofminutes,talkingfor575minutes.Youalsosentandreceived17textmessages,andcalledinformationfourtimes.Andsincethiswasthefirstmonth,therewasanactivationfeeof$35.00.Totopitoff,therewere$14.50ofmonthlyservicecharges.
1. Whatwasthetotalcost?
Basic rate: $49.99
Extra minutes x Cost per minute:
75 minutesx .40 /minute=
$30.00
Text messages x Cost per message:
17 textmessagesx $.40 /message=
$3.40
Information calls x Cost per call:
4 callsx $1.49 /call=$5.96
Activation fee $35.00
Service charges & fees: $14.50
Total cost: $138.85
2. WasStudentPlanBthebestplanforyouconsideringyourcellphoneusethismonth?Whyorwhynot?
No. Excess minutes cost $30. All of those minutes would have been paid for with Plan C for only $10 more.
Grade 10, Money Matters 5: Before You Sign: ContractsFacilitator Resource 3, Wrap Up: Your First Phone Bill Answer Key
145© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Choose Your PlanBelowisanoverviewofRingRing’sthreevoicebasicplansforindividuals.Readthechartcloselyandanswerthequestionsinpart1ofStudent Handbooks pages 146–147, Student Questions.
Ring, Ring Basic Voice
Plans
Monthly Anytime Minutes
Monthly Access
Per-Minute Rate After Allowance
Text Messages Plan Includes
PLAN A (Starter Plan)
400 minutes $39.99 $0.45
$0.20 (for received
and sent) •UnlimitedNight&WeekendMinutes
•VoiceMail
•CallerID
PLAN B (Student Plan)
500 minutes $49.99 $0.40
$0.20 (for received
and sent)
PLAN C (DeluxePlan)
650 minutes $59.99 $0.35
$0.20 (for received
and sent)
Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Choose Your Plan
146© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Student Questions
PART 1
1. Excludingcallstoyourfamily,youestimateabout30minutesoftalktimeeachdayduringdaytimehours(thatis,beforeyourfreenights/weekendstakeeffect).Completethecalculationsbelowusingeachofthethreeplans.
PLAN A CostMonthly access fee
Over-limit charge
a. minutesperdayx20weekdays/month= (minutes talked)
b. (minutestalked)– minutesallowed= (extraminutes)
c. (extraminutes)x$.45/minute= (over-limit charge)
Total Cost
PLAN B CostMonthly access fee
Over-limit charge
a. minutesperdayx20weekdays/month= (minutes talked)
b. (minutestalked)– minutesallowed= (extraminutes)
c. (extraminutes)x$.40/minute= (over-limit charge)
Total
PLAN C CostMonthly access fee
Over-limit charge
a. minutesperdayx20weekdays/month= (minutes talked)
b. (minutestalked)– minutesallowed= (extraminutes) Since the minutes talked was less than the minutes allowed, no extra minutes were used.
c. (extraminutes)x$.35/minute= (over-limit charge)
Total Cost
2. Basedonyouranswerstoquestion1,whichplanareyoubetteroffchoosing?Explain.
_____________________________________________________________________________
_____________________________________________________________________________
Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Student Questions
147© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Student Questions
PART 2
3. Howmuchwillyouhavetopaytoactivateyourlinethefirstmonth? (See“activationfee.”)
____________________________________________________________________
4. Nameatleasttwootherfeesyou’llpayeachmonth.
____________________________________________________________________
5. YouliketheRingRingplansbecausetheyofferunlimitednightandweekendcalls.Whattimedofreecallsbeginintheevening?
Monday–Friday evening ____________________________________
6. ImagineyouchoosePlanB,whichoffers500freeminutes.InSeptember,youonlyuse475minutes.Whathappenstoyourunusedminutes?
____________________________________________________________________
7. Whenyougettoschool,youfindthatyoudon’tgetverygoodreceptionfromyourdormroom.YoudecidetodropRingRingaltogether.Yousignedupforayear-longcontract.Howmuchmightyouhavetopaytocancel(terminate)yourcontractearly?
____________________________________________________________________
8. Sinceyou’renewtotown,youmightneedtocallinformation(411)oftentofindlocalnumbers.Howmuchwilleachcallcostyou?
____________________________________________________________________
9. Youcarefullyplanthecallsyoumake(orOUTGOINGcalls)soyoudon’tgooveryourminutes.ButwhataboutcallsthatotherpeoplemakeTOyou,orINCOMINGcalls)?Willthosetakeupyourminutesaswell?
____________________________________________________________________
Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Student Questions
148© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Cell Phone Service ContractBelowisthecontractforRingRingwirelessphoneservice.Readitcarefullyandanswerthequestionsinpart2ofStudent Handbook pages 146–147, Student Questions.
Important Calling Plan Information Allminutes(freeminutes,callstootherRingRingcustomers,freenight&weekendminutes)areforusefromwithintheRing Ring Coverage Area.
• UnlimitedDomesticLongDistance.(Airtimeapplies.)
• Nodomesticroamingcharges.(Coveragenotavailableinallareas.)
• UnlimitedNight&WeekendMinutes: NightHrs:(M–F)9:01p.m.–5:59a.m. WkndHrs:12:00a.m.Sat.–11:59p.m.Sun.
Calling Other Ring Ring CustomersYoucantalkwithanyofourcustomersanytimefromwithintheUnitedStatesandPuertoRicocoverageareas.
Information (411) Calls$1.49percallplusairtime.
Minimum Term, Activation, and Early Termination Fees• One-ortwo-yearminimumtermrequiredperline.
• ActivationFee:$35/line.
• EarlyTerminationFee:Upto$175perline.
Taxes, Surcharges, and Fees• Tolls,taxes,surcharges,andotherfeesvarybymarket(andasofJuly1,2007,addbetween4%and
34%toyourmonthlybill)andareinadditiontoyourmonthlyaccessfeesandairtimecharges.
• MonthlyFederalUniversalServiceCharge(variesquarterlybasedonFCCrate)is11.3%.
• MonthlyRegulatoryCharge(subjecttochange)is4¢perline.
• MonthlyAdministrativeCharge(subjecttochange)is70¢perline.
• TheFederalUniversalService,RegulatoryandAdministrativeChargesareRingRingcharges,nottaxes.
Other Important Information:Ratesdo notapply to credit cardor operator-assisted calls,whichmaybe required in certainareas. Usageroundeduptonextfullminute.Unusedallowanceminuteslost.ChargesstartwhenyoufirstpressSEND or the call connects to a network on outgoing calls, and when the call connects to a network (which may be before it rings)onincomingcalls.TimemayendseveralsecondsafteryoupressEND or the call otherwise disconnects. For calls made on our network, we only bill for calls that connect (which includes calls answered by machines). Calls to ‘toll-free’numbersaretoll-free;youwillbebilledairtime.Billingforairtimeandrelatedchargesmaysometimesbedelayed.Delayedairtimewillbeappliedagainsttheincludedairtimeforthemonthwhenyouactuallymadeorreceivedthecall,eventhoughsuchchargesmayshowuponalaterbill.Thismayresultinchargeshigherthanyou’dexpectinthelatermonth.
Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Cell Phone Service Contract
149© 2012 Roads to Success. For information on re-use under our Creative Commons Attribution Non-Commercial Share Alike license, visit www.roadstosuccess.org.
Wrap Up: Your First Phone Bill
AftercomparingthedifferentRingRingplans,youdecidedtogowithPlanB,theStudentPlan.YoudecidedyoujustHADtohavethatorangephone,andtheplan($49.99)waswithinthemonthlybudgetyourparentsofferedtopay.However,you’reinforasurprisewhenthebillarrivesattheendofthefirstmonth.Tobegin,youwentoveryourallowanceofminutes,talkingfor575minutes.Youalsosentandreceived17textmessages,andcalledinformationfourtimes.Andsincethiswasthefirstmonth,therewasanactivationfeeof$35.00.Totopitoff,therewere$14.50ofmonthlyservicecharges.
1. Whatwasthetotalcost?
Basic rate:
Extra minutes x Cost per minute:
____minutesx_____/minute=_____
Text messages x Cost per message:
_____textmessagesx_____/message=_____
Information calls x Cost per call:
____callsx_____/call=______
Activation fee
Service charges & fees:
Total cost:
2. WasStudentPlanBthebestplanforyouconsideringyourcellphoneusethismonth?Whyorwhynot?
__________________________________________________________________________
__________________________________________________________________________
Grade 10, Money Matters 5: Before You Sign: ContractsStudent Handbook, Wrap Up: Your First Phone Bill