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WINONA STATE UNIVERSITY

Business Education Unit PlanFor

Personal Finance – 9-12 Grade

By

JJ Jansky

Submitted to Dr. TexleyFor the Course EFRT 312:

Instructional Planning/Assessment: Secondary

Department of Educational Foundations,Research & Technology

April 28, 2009

Personal Finance Lesson PlansClass setup:

Class is a 9-12 grade elective offered to students who have completed the basic math courses.

ConceptsThe concepts learned in this course will allow students to understand the need to know basic as well as advanced financial problems; from being able to calculate interest to determining the return on investment in the stock market. Everything will be covered to a thorough extent.

GoalsGoals are to prepare students for the financial skills needed in the world after schooling; knowing how to handle everyday activities such as a checking account to dealing with long-term investments. Students will learn then ins and outs of everything in between.

Class DescriptionThe class is set in a medium sized middle to upper class town. A comparable city around here is Onalaska where the majority of students are living in the middle class but there is a mix of a few upper class students as well. The school has a decent amount of funding and is considerably up to date with the technology movement. Each room has a projector with a projection screen and the computer labs are all up to date with the most recent programs such as Microsoft Office 2007. The textbook being used is the Personal Finance book from McGraw Hill.

PrerequisitesStudents must either be enrolled or passed out of 9th grade math.

Standards Addressed in Unit STANDARD 1

The Local Education Agency will provide learners with opportunities to gain employability and career skills. These skills will enhance the learner’s opportunity to: A. be a willing and motivated life long learner;B. be a productive and contributing member of society;C. understand how careers impact local, national, and global economies;D. be prepared to articulate high school credits to post secondary educational

opportunities; andE. be more employable.

STANDARD 4

The Local Education Agency will support the development of career and technical education curricula and teaching/learning techniques that are derived from:

A. Knowledge and skills standards that reflect current consumer, business, industry and labor standards and trends,

B. Promising/emerging practices and current research relating to: school reform;

understanding learners’ roles in the community, their relationships in the family and how

to balance these roles and relationships with a career; contextual teaching/learning strategies;

teaching/learning strategies in safety for the school laboratory and for work place activities; and

C. the use of current technology.

Personal Finance Lesson Plan #1Lesson: Orientation

Anticipatory Set: Play an icebreaker activity so all students are able to get to know each other as well as get to know the teacher. Each student writes a question on a blank note card. Each note card is placed in a hat and each student takes a turn introducing themselves and answering a question from the hat. Questions need to be class appropriate and relevant.

Modeling: Go over the syllabus the rest of class. Point out the key dates (when tests are, when projects are due, etc…). Go over the key topics that will be discussed and where the class will begin (writing checks). Show the grading scale to students and the policies and procedures used throughout the class.

Closure: Spend the rest of the class period discussing the different things students expect to learn. What do they already know and what do they feel they could know more about. On another note card have each student write down what they feel their strengths and weaknesses in this class will be. After class use these note cards to find out where the most time is going to be needed to be spent and where things may be able to be accelerated a bit.

Materials Needed: Pen, note cards, syllabus to hand out to students.

Time: 45 Minutes

Personal Finance Lesson Plan #2 Lesson: Writing Checks

Anticipatory Set: Start class asking students if they have a checking account. Continue a discussion about how the system works. Where does the money go? How do you deposit money? Etc.

Objective: Given a blank check, students will be able to fill out the needed criteria to write out a check with 100% accuracy.

Input: Essential Questions: What is the first line filled out on a check? What is the last line filled out on a check?

Why?

The first line filled out will be the date line. Students should spell out the month to ensure that the check cannot be tampered with. Students then move to the “pay to” line and fill out who they are writing the check to. Moving on, the students should fill out how much the check is for; first in the small box on the right in numerical form and then in the line below the name in alphabetical form. After that the memo line should be filled out. This is to let whoever is writing the check know what it was for. If the check is for May rent, the memo line should say something about May’s rent. Lastly, the bottom right line needs to be filled out. This is where the check writer’s signature goes. This is last because without a signature, a check cannot be cashed. If a writer put his/her signature on the check then loses it, a stranger is then able to fill out the rest of the check and cash it.

Modeling: On an overhead, fill out several checks for different uses. Give real world examples: “JJ wrote a check to Adam for $36.56 for the monthly electric bill.” Students will have blank checks in front of them to follow along as well. After 5 or 6 different examples move on to check for understanding.

Checking for unders..:Show examples of three or four correctly written checks and then show three or four incorrect checks. Ask students to point out the incorrect pieces of each check. One check should have the date written out incorrectly, one should have a signature signed before the rest of the check is filled out, and one should have a blank

memo line. Students should be able to point out all three inaccuracies before moving on to guided practice.

Guided Practice: Handout worksheet with blank checks for students to complete as a class. Go over each problem step by step to make sure students understand the procedure for writing out a check properly. Worksheet should have four or five checks for students to fill out. As students are filling the checks out on the worksheet, also have a check up on the overhead filling it out with them so they are able to see exactly the process.

Independent Practice: Handout worksheet for students to do as homework. Students can work on it the last few minutes of class and finish it to turn in for next class period.

Closure: With three minutes left in class have students wrap up their work and go over the main points of writing a check. List the steps and procedures and make sure no one has any questions. Then explain what they have due for the next class period and explain to them that we will be learning how to fill out a check register. Make sure they bring with them their homework, a writing utensil, their notebook, and their textbook.

Materials Needed: Pen, notebook, overhead, transparencies, and worksheets for guided practice and independent practice.

Time: 45 Minutes

Point Totals: Check worksheet – 5 pointsParticipation/Attendance – 5 points

Personal Finance Lesson Plan #3Lesson: Check Register

Anticipatory Set: Go over homework from check writing. Make sure everyone understands the basics to writing the checks and ask students what they believe some problems could be with writing checks. Answers should include: insufficient balance, losing checks, forging checks. After that, discuss the ways to make sure there is always the correct amount of money in a checking account.

Objective: Students will be able to take checks that have been written and transfer them to a check register with 90% accuracy.

Input: Essential Questions: What is a check register?What is the need for a check register?What are the more recent technologies that can somewhat take the place of a register?

A check register is used to make sure every check written is accounted for; the date, reason for the check, amount of the check, and type of deposit or withdrawal. It is kept in the back of a checkbook and each time a check is written the check register should be filled out. The date of the check written will go on the far left of the register, and the type of transaction will go in the large space next to the date. It will either be a deposit or withdrawal and then right below the reason for the transaction will be listed. This reason is generally the words written on the memo line of the check. Next the amount either added or subtracted to the account is listed in the far right column. If it is a withdrawal, parentheses go around the number to show it is a negative number. Then right below the number deposited or withdrawn, the new total of the account balance is listed. You are able to do this by taking the previous balance and adding or subtracting the latest transaction.

Modeling: Go over example #1 in the book on the overhead. Use a transparency with a check register already printed on it. Go through the first four checks and show students the proper procedure for filling out a check register. Explain how to configure the new remaining balance and explain the need for the parentheses around the withdrawn numbers. The remaining balance on the check register at the end of the four checks will be: $345.46.

Checking for Unders…: Have a discussion with the class after going over example #1. Ask them for the four key parts of the check register. (date, reason, deposit/withdraw amount, and remaining balance.) Discuss the need for this register and how it can make life much easier with handling money. Compare what was talked about before the lesson and address the inaccuracies students may have had in the initial discussion at the beginning of class. Make sure the students understand the key features of a register as well as the need and use of one.

Guided Practice: Handout a worksheet of problem #1 from the textbook. Go over the problem as a class and on the overhead. Show students as they follow along the proper steps and ask students to answer the steps aloud. If all goes well with problem #1 assign problems 2-10 as homework give them the rest of class to do independent practice.

Independent Practice: After going over the first problem as a class, assign the remaining problems as homework. Walk around and make sure students don’t have any questions.

Closure: With three minutes left in class, have students wrap up their homework and briefly go over the topics taught throughout the class period. Make sure students understand the need for a check register and how to properly use one. Explain the requirements for their homework one more time and allow time for any questions they have. Explain that next class period they will be taking their check registers and balancing them with a bank statement. They need to come prepared with a pen or pencil, notebook, and textbook.

Materials Needed: Pen, notebook, overhead, check register transparencies, textbook, worksheets of examples from book, and check register worksheets.

Time: 45 Minutes

Points totals: Book problems – 10 pointsParticipation/Attendance – 5 points

Personal Finance Lesson Plan #4Lesson: Balancing a Check Register

Anticipatory Set: On a blank sheet of paper have students take a quick three question quiz. This will be turned in right after the quiz and is worth 15 points. The three questions should be: What is the first thing needed to be written on a check?

What is the last thing that should be written on a check?

What are the basic reasons for a check register?After the quiz, hand out an example of a balance statement from a local bank. Discuss the topics listed on the statement and what exactly the statement is showing.

Objective: Students should be able to balance a check register given a filled out register and a bank statement with 80% accuracy.

Input: Essential Questions: What is a bank statement?What is listed on a bank statement?What are the steps to cross check a statement and register?

A bank statement is sent by a bank every month or every quarter. On it is a list of every check entering or leaving a person’s account. It will also list the interest earned and the service charges charged. It is used in coordination with a check register to verify that each check written is accounted for. The first step is going through and checking off each check and deposit that is listed on the balance sheet. After this, you are able to see the checks that have not been cashed or deposited into your account. Take the checks from the register that are not listed on the bank statement and transfer them to the statement. You are then able to add up the deposits, withdrawals, interest, and service charges and add or subtract that balance from the previous overall balance. Your bank statement should then be equal to your check register. If it is not, there is an error somewhere and it is very important to find the problem and fix it, whether it is on your register or an error by the bank.

Modeling: Hand out a bank statement and slowly go through the key steps to balancing a check register. Show how a balance sheet is set up; deposits and withdrawals separated and added up. Then a sub balance of deposits minus withdrawals. That sub balance then added or subtracted to the previous balance to create a new actual balance to be compared to the check register. Take the register from last class period and use it with the bank statement from the next section of the textbook. Show the basic steps of checking off each check on the statement and then finding the checks that have

not been recorded through the bank. Show how to find the actual balance by adding the extra withdrawn checks to the withdrawals section and doing the same with the deposits. Then doing the simple math and combining the withdrawals and deposits to find a positive or negative number and adding it or subtracting it to the previous month’s balance to find this months remaining balance.

Checking for Unders…: Put a basic check register and a bank statement on the overhead and have the students slowly go through the process of balancing the check register. Make sure they are the ones actually doing it and do not give too much help to make sure they do fully understand it. If they are able to go through the basics of the check register move on to the guided practice otherwise go through another basic register and balance.

Guided Practice: Assign just the first bank statement as homework and go over the beginning step of the process in class. Compare the withdrawals on the bank statement to the ones on the check register and then do the same with the deposits. Have the students add the interest and service charges to their check register. Go through all these steps on the overhead to make sure students are able to follow along.

Independent Practice: Allow students time to work on the rest of the assignment; transferring the excess withdrawals and deposits to the bank statement and finding the overall remaining balance of the bank statement and comparing it to the check register.

Closure: With four minutes left in class have students wrap up their work and go over the key ideas learned throughout the lesson. List the steps to balancing a bank statement and explain that although this seems tough it will get easier and the next class period students will have plenty of time to work on more balancing problems. The one problem assigned today will be due the next class period and a class project will be started.

Materials Needed: Pen, notebook, textbook, bank statement and check register transparencies, check register and bank statement worksheets.

Time: 45 Minutes

Point Totals: Bank Statement – 10 pointsParticipation/Attendance – 5 points

Personal Finance Lesson Plan #5Lesson: Check Balancing Project

Anticipatory Set: Go over the previous three days lessons quickly with a discussion at the beginning of class. Make sure students still have retained the information about writing out a check, entering it into a check register, and know the concepts behind the bank statement.

Objective: Students will be able to take a month’s worth of checks and enter them into a check register as well as fill out the bank statement at the end of the month with 80% accuracy.

Input: Essential Questions: What is the proper procedure when writing checks?

How do you fill out the check register?What are the steps to balancing a bank

statement?This project is to make sure the students have retained all the information they learned throughout the last three class periods. It incorporates writing out several checks, entering them into their check register, and balancing the statement at the end of the period. Hand out the packet which includes a list of transaction that are to be hypothetically made; a check register for the transactions to be documented and then a bank statement in the back. Throughout the class period students will write out the checks for their transactions, fill out their check register, and then balance the bank statement at the end.

Modeling: Before students get to work, go over one example of each step: writing a check, adding it to the check register, and a quick balancing of the bank statement. Make sure students are comfortable with each step before they go on to working on their project.

Checking for Unders…: As you are going through the three examples ask questions to make sure the students are following along and up to speed with the topics. Questions should include: What is the first step of writing the check? What is the last thing always written on a check? How do you display a negative number on the checking statement? How do you show that a check is accounted for on the check register on a bank statement? At the end of this, allow students who feel comfortable go on to work on their packets while the students struggling can go through the first few sections as a group.

Guided Practice: Students not fully confident in their ability to do the project can work as a group while we go over it on the overhead; first writing out the checks then adding them to the check register. As students start to feel more confident they are encouraged to work on the rest of the project alone and at their own speed.

Independent Practice: The rest of the class period will be used for students to complete the packet handed out at the beginning. Walk around the class and make sure students are completing it correctly and also staying on task. The packet will be due at the beginning of class next time, but students should be able to finish it today if they work hard on it.

Closure: With two minutes left have students that have finished turn their projects down and allow the remaining students to take it home to finish. Go over the key points one last time and inform the students that these three lessons will be on the test at the end of the unit. Let them know the next lesson to be taught will be creating and following a budget before they are dismissed from class. They will only need to bring with them a writing utensil, and a notebook.

Materials Needed: pen, notebook, textbook, transparencies of the project’s pages, and packets for students to complete.

Time: 45 Minutes

Point Totals: Balance Sheet project – 20 pointsParticipation/Attendance – 5 points

Personal Finance Lesson Plan #6Lesson: Creating a Budget

Anticipatory Set: Have a discussion about the student’s expenses. What are they buying and are they making any money? Where does their money come from? Work? Gifts? Parents?

Objective: Students will be able to classify their expenses and incomes and create a logical budget for themselves that makes sense for their lifestyle.

Input: Essential Questions: What is income?What is an expense?What are the uses of a budget?

Income is the money coming in to for a person. When a person works a job, a paycheck is considered income. An expense is anything a person spends to acquire something. When a person buys a burger at McDonalds, it is considered an expense on a budget. These two terms can be compared to each other to create a budget. A budget lists all the incomes a person has, and also all the expenses. This can be used to determine if a person can afford a certain good, or if the way they are going they will go in debt or not. If they are making a profit in any given period, they are doing ok and can spend a little more if they want or need to. If they are losing money in a given time period it is time to change their ways and find a way to cut out some expenses or increase their income.

Modeling: Give an example of a person’s incomes and expenses throughout a month. Include his paychecks ($300) along with birthday money ($100) he earned from family and friends. His expenses should include: gas ($25), food ($50), rent ($300), and entertainment ($75). The budget should come out so that the person is losing money in this month. Have a class discussion of ways he could lower his expenses such as: spending less on food, downgrading his car, driving less and walking more, etc… The budget should be laid out in a T chart. The incomes will go on the left side of the chart while the expenses will be on the right. The expenses will outweigh incomes by $50.

Checking for Unders…: While going over the initial example, have students point out what is an expense and what is an income. They should then be able to point out ways to lower the expenses just from their personal experiences. If they can successfully come up with ways to even out the example budget, students are then to start creating their own personal budget.

Guided Practice: As students are thinking of incomes and expenses, give them ideas of things they may not think of right away. Students will most likely be stuck with their food and car expenses, but what about going to the movies? Going bowling? If they are not making any income because they don’t have a job, give them a hypothetical situation and let them go from there. Allow them to have a normal business person’s salary but also force them to make house and car payments like a real adult would.

Independent Practice: Students are to spend the rest of class working on their budgets. Making sure they are making a profit within their time period. If they are losing money, they are to come up with ways to lower their expenses and get into positive figures.

Closure: With two minutes left in class have students stop working on the budgets and go over the key points of the budget. Make sure they understand the concept behind income and expenses and how to implement them in a budget. Their own personal budgets will be due next class period. Explain that the next class period they will be learning about the basics of credit and the benefits and drawbacks of it.

Materials Needed: Pen, notebook, transparency to show the T chart for the budget.

Time: 45 Minutes

Point Totals: Personal Budget – 10 pointsParticipation/Attendance – 5 points

Personal Finance Lesson #7Lesson: Credit

Anticipatory Set: Use the credit calculator at: <http://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx >Have a group discussion and figure out the price of a moped for college with the students. A moped costs $1,000, and the interest rate is 18% with a minimum payment of 2.5%. if a person pays the bare minimum each month it will take over 11 years and double the amount of the original moped to pay it back.

Objective: Students will be able to configure, with 100% accuracy, the amount of interest owed as well as the total owed when buying items with a credit card.

Input: Essential Questions: What is credit?Where did credit come from?Why is credit the basis of our bad economy?What is interest?

Credit comes from the idea of taking out a loan. An item is given to a consumer and the consumer, with their credit, promises to pay back the difference with added interest on the cost. The faster a consumer can pay back the credit balance, the less interest he/she will have to pay. Interest is the fee paid for borrowing goods. When a person pays on credit, they are promising they will pay back the amount due over time, with added interest so the seller benefits from the transaction as well. This is where the banks got in so much trouble, they were giving out too many loans to too many people that did not have the ability to pay them back. Once the borrowers were unable to pay back the lenders the economy began to recess. The following movie does a great job of explaining the evolution of money and credit. Go to: <http://www.thirteen.org/edonline/lessons/fe_finance/b.html> and watch the first part of the video. This film is twenty minutes but does a very good job of explaining everything about the banks and the credit problems.

Modeling: Throughout the movie, take breaks and give examples in the everyday world. Allow the students to relate the key points to their own lives so they can create their own opinions.

Checking for Unders…: Review the definition of credit after the movie. Do the students make the connection between credit and interest? And can they see how lending created our economic problems? After an in depth discussion on these topics, move on to the guided

practice. It is very important that students understand the basics of credit and lending.

Guided Practice: In the computer lab, have students research the five C’s of credit (Answer: capacity, capital, collateral, conditions, and character). These will be gone over in more extent next class period but it is important they know these now. After a couple minutes have the class list off the five C’s of credit and explain what each means.

Independent Practice: After the 5 C’s activity allow students to play around with the credit calculator used at the beginning of class. Have them select a car they would like to purchase when they leave for college and figure out how long it may take them to pay back the entire payment on the car.

Closure: With three minutes left in class have students sign off of computers. Quickly go over the five C’s one more time and explain to them that this will be the key component in the lesson tomorrow about bank loans. Supplies they need tomorrow will be a writing utensil and notebook.

Materials Needed: pen, notebook, projector, computer with internet access, computer lab, speaker for video.

Time: 45 Minutes

Point Totals: Participation/Attendance – 5 points

Personal Finance Lesson Plan #8Lesson: Bank Loans

Anticipatory Set: Go over the five C’s of credit to refresh the student’s memories. (Answer: capacity, capital, collateral, conditions, and character). Discuss what the students believe each of them mean and why they are important. Discuss the meaning of creditworthiness and how it works. Creditworthiness means the likelihood a borrower will be able to repay a loan.

Objective: Students will be able to determine if a loan to a borrower is a good idea depending on their creditworthiness. Also, they will understand the criteria for determining the interest rate of a loan.

Input: Essential Questions: What is creditworthiness?How is creditworthiness earned?How are interest rate created?What is capital?

Creditworthiness is a creditor’s analysis of the ability of an individual or business to repay a loan. When a business or person applies for a loan, the bank will conduct an investigation of sorts to see the worth of the person or company. Those assets along with the capital the business already has will create a level of creditworthiness and the bank can then decide on which action they would like to take with the future borrower. Capital is the money, property, or other valuables which together represent the wealth of a business. Loans can be for different periods, with different levels of interest, and with different minimum payments required. For a car the loan period may be between five and ten years where a house loan may take up to 25 years to repay. Also, these different goods will have different interest rates and minimum payments depending on numerous factors as well as which bank they go to for the loan.

Modeling: Have students watch the second part of the video at the website: <http://www.thirteen.org/edonline/lessons/fe_finance/b.html>. This movie will explain how to determine the creditworthiness of a business. After the video give an example of a creditworthy business as well as a business that is too much of a risk for a bank to gamble on and give a loan. Point out the differences and why the second business is too risky.

Checking for Unders…: Have students get in groups of four to five people and brainstorm ideas of how interest rates for different loans. Answers

should include risk or the borrower’s credit, the term of the loan, and the minimum payments of the loan.

Guided Practice: Have students report their ideas to the class and write down the ideas on the board. Discuss the key points each group came up with and why they said what they said. Make the connection between interest rates and creditworthiness.

Independent Practice: For the remainder of class have students create up to a page long paper on the connections between interest rates and creditworthiness. They may use the computer lab to do research on the topics. There will be no homework, whatever the students get done is what will be handed in. The paper will not be graded but will be checked to make sure all students have a general idea of the idea of creditworthiness.

Closure: With five minutes left in class students will turn in their papers and sign off the computer. Have a brief discussion with the students on their findings and what they wrote about in their reports. Make sure the key features of credit are covered in the discussion and explain that in the next class period the students will turn into the bankers and be deciding on whether or now businesses are creditworthy enough to deserve a loan. Let them know that all they will need is a pen and a notebook.

Materials Needed: Pen, notebook, projector, computer with internet access, computer lab, speaker for video.

Time: 45 Minutes


Personal Finance Lesson Plan #9Lesson: Credit Analysis Activity

Anticipatory Set: Have a discussion reviewing the previous two days. Refer back the five C’s and creditworthiness and explain how all of this now goes into a bank’s decision of whether or not to give out a loan.

Objective: Students will be able to decide with a considerable amount of certainty the creditworthiness and probability a bank will receive a loan.

Input: Essential Questions: What goes into determining the credit worthiness?

What are the important aspects of a loan?Before a loan can be given out, many factors of the borrower have to be considered. The history of the borrower is going to play a very large role in whether a loan is offered and at what rate it’s at. If an elder couple who has owned several prosperous businesses in the past needs a loan, they are more likely to receive the loan than a couple of college students with no prior experience. At the same time, a smaller business may have a better chance of receiving a loan than a large business needing much more money since the small business is a lower risk for the bank. The amount needed, the term, and the interest rate are the main points to consider when configuring a loan.

Guided Practice: Split the students up into five different groups. Use the worksheet with potential borrowers and have each group work on one of the five potential businesses. Go around the room and discuss with each group why or why not they think their business is worth the risk. (worksheet attached)

Checking for Unders…: Go around the room and let each group explain what their business was and how they rated the risk of their business. Go over the important topic areas with each business; risk, cost of investment, period of time, and overall potential for success.

Guided Practice: Have a discussion on the trends on how the students analyzed the loans. What loans were more likely to be given? Bigger or smaller loans? Long-term or short-term?

Independent Practice: Give the remaining few minutes of class for students to study the topics discussed in this class. If they have any questions about anything from checking accounts to loans now is the time to get

them out. Conduct a short review of what is expected of them on the upcoming test.

Closure: While doing the review make sure to incorporate all parts of the unit. Refer back to the basics of check writing and balancing a bank statement. Also, explain the need to follow a budget as well as how the credit system and bank loaning work. Let them know that next class period will be the test and that it is worth 50 points. It will consist of 15 M/C questions worth 3 points each and a short answer problem worth 5 points.

Materials Needed: Pen, notebook, worksheet for class activity, and a chalkboard.

Time: 45 Minutes


Worksheets For Class Activity

Smoothie Café -- This café is opening in a popular part of downtown that gets a lot of foot traffic. Smoothies are a big craze, and there is no smoothie shop in this town. The owners of the business have owned restaurants for the last 20 years, and all of their restaurants have been successful. They are seeking a loan to pay for remodeling of the space they are using for the café, and the start-up costs for furniture and equipment.

Loan Details:

Loan Amount: $20,000

Loan Term: 2 years

Rate the loan factors on a scale of 1 to 5, with 1 as worst and 5 as best on the following factors:

Amount of Loan

1 2 3 4 5

Term of Loan

1 2 3 4 5

Expected Repayment

1 2 3 4 5

Video Game Start-up – This company is being started by two college students who have never held jobs before. They are really talented with computers, and love to play video games. However, they have not experience ever owning a business, and still rely on their parents for income. They are seeking a loan for start-up costs of computers and an office space, and also to hire a team of software developers. They will use some of the loan to pay for advertising their product.

Loan Details:


Loan Term: 10 years


Amount of Loan

1 2 3 4 5

Term of Loan

1 2 3 4 5

Expected Repayment

1 2 3 4 5

Home Construction Company – This company is being started by a team of builders with a combined 50 years in the construction industry. The members of the team have all owned their own companies which were successful in bringing in business. However, the builders all managed their companies so badly that they went out of business. They are looking to borrow money to start a new business, and hire a business manager with a strong track record to help them avoid their problems of mismanagement of the past.

Loan Details:


Loan Term: 5 years


Amount of Loan

1 2 3 4 5

Term of Loan

1 2 3 4 5

Expected Repayment

1 2 3 4 5

Gas Station – This business is being started by a wealthy individual who already owns five gas stations. All of the stations are extremely well-managed and successful. This station is located in an area where there is a lot of car and truck traffic, and no gas station. The owner has enough money to start the company and keep it running, but would like to borrow $10,000 to make the gas station more environmentally friendly.

Loan Details:


Loan Term: 1 year


Amount of Loan

1 2 3 4 5

Term of Loan

1 2 3 4 5

Expected Repayment

1 2 3 4 5

Flying Car Company – This company is being started by an award-winning team of aerospace and automotive developers. They are sure that they will be able to make the first flying car that will be energy-efficient and affordable to consumers. If they are successful, this company will change how people drive cars. Also, they are the only company working on this product so they would have the entire market if they were successful. They need to borrow money to pay for all of the start-up costs of the company, including furniture and computers, and salaries for employees for the first 20 years.

Loan Details:

Loan Amount: $100,000,000

Loan Term: 20 years


Amount of Loan

1 2 3 4 5

Term of Loan

1 2 3 4 5

Expected Repayment

1 2 3 4 5

Personal Finance Lesson Plan #10Lesson: Assessment

Personal Finance Checking and Credit TestInstructor: Mr. Jansky Name:Results: Class:

Period:Date:

Answer each question with the best possible answer available. (3 points each)

1. What is the last thing filled out when writing a check?a. Signatureb. Memoc. Date

2. A negative number is represented by what on the check register?a. Quotation marksb. Parenthesesc. Nothing

3. How is a bank statement divided?a. By deposits and withdrawalsb. By checks and interestc. By date

4. What is the proper date style when writing it on a check?a. January 12, 1986b. 1/12/86c. January twelfth, Nineteen Eighty-six

5. What are the two types of transactions used with a checking account?a. Pluses and Minusesb. Checks and Balancesc. Withdrawal and deposit

6. What is the final step to balancing a bank statement?a. Subtracting the sub balance from the statement adjustments and finding

the ending balanceb. Comparing the bank statement and check register for the same ending

balancec. Making sure all checks have been accounted for

7. Money a person makes such as a paycheck or gift is called:a. Expenseb. Positive moneyc. Income

8. What is the name of the chart used when filling out a budget?a. T chartb. Matrixc. Bar graph

9. What is the definition of interest when talking about loans?a. The money owed on top of cost of an actual cost because the buyer is

paying on credit.b. The amount of money discounted for being a trustworthy personc. The total amount owed when the good has been paid for in full

10. Credit comes from the Latin term Crado meaning:a. Promiseb. Owerc. Free

11. When people do not have enough money to pay back a loan they must:a. Win the Lotteryb. File for bankruptcyc. Borrow more money

12. The 5 C’s consist of: Capacity, Collateral, Conditions, Character, and ____________. a. Creditb. Corporationc. Capital

13. A creditor’s analysis of the ability of an individual or business to repay a loan is a definition of:

a. Creditworthinessb. Borrowerc. Character

14. The time period given for a person to pay back a loan is referred to as:a. Time allotmentb. Loan Termc. Payment length

15. A small business will have a(n) __________ risk for a bank than a large business giving a loan.

a. Equalb. Higher

c. Lower

16. Jerry works at Menards and makes $350 a month. He also works on campus each weekend bringing in an additional $200. His rent is $350 a month and also pays $100 in utilities. He drives is car everywhere and pays $100 in gas each month. He also eats out most nights costing him $50 a month. Create a budget for Adam and if needed explain ways for Adam to get his budget back on track. (5 points)

Answer Key

1. A2. B3. A4. A5. C6. B7. C8. A9. A10. A11. B12. C13. A14. B15. C16. Income Expense

$350 $350$200 $100

$100$50

Adam should spend less money on food and gas. Walk places instead of drive and make food at home where it is cheaper.

winona state university - …€¦ · web viewapril 28, 2009. personal finance lesson plans. ......

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