Educational Economics Created by: Megan Clampitt © Megan Clampitt 2012

Concepts How to use money is a concept learned from the earliest of ages. Young children are often given money to spend when they go to a store. Money, how to spend and save wisely, are concepts taught at many different grade levels. This lesson was first used in a first grade classroom, but was later adapted it to work in a fourth grade classroom.

Pre-Assess What the Students Know Have students write or verbally tell about a time in which they spent money, saved money, or traded items with another person. Give students a short quiz such as follows: 1. What is trading? a. Giving something away b. Taking something from someone c. Buying something d. Giving something to someone and taking something from them in return 2. Most people keep their money in a ____________ 3. To save money you: a. Spend it b. Put it away (such as in a bank) c. Buy the things you want 4. True or False: People have to make choices about the things they choose to buy. 5. Write a sentence about a time you wanted something and saved your money so that you could buy it: 6. If you wanted an item but did not have enough money for it, what would you do? 7. True or false: In order to buy something you really want, you should save your money.

Vocabulary Introduce/review the following vocabulary words with the students: –Buy –Save –Trade –Cost –Benefit

Literature Link Students LOVE being read to! Read a book that ties in to the lesson. Here are some suggestions: – The Gift by Aliana Brodmann – Paddy's Pay Day by Alexandra Day – Mrs. Pirate by Nick Sharratt – A Bargain For Frances by Russell Hoban

Interactive Activity Create a real life, interactive activity by setting up a class store. Use pencils, books, toys, etc. as the items students can “buy.” Put prices ranging from $0.25-$5.00 on the items. Give students $5.00 in play money. Allow students to come up to the store one at a time to “purchase” items. They can choose to spend all of their money or save some of their money. Allow them to purchase as many items as their money allows. Students need to use pencil and paper to add how much money they are spending so that they do not go over their budget.

Once all students have had to purchase their items, allow them time to trade with other students as you discuss the benefits of trading items. Interactive Activity

Learning Experience After students have bought, traded, or saved money, split them up into three groups. Split the students into three groups based on how well they did on the pre-assessment. Have students complete the following activities to show what they learned from the lesson: –The highest group will write one paragraph over their spending and saving choices, as well as trading. –The middle group will list what they bought and how much it cost, as well as how much they saved and what they traded. –The lowest group will draw a picture showing what they bought, or if they saved any money, as well as what they traded.

Rubrics Rubrics are a wonderful tool to use for so many different activities! They really help score an assessment based on several different factors. Included are rubrics for each of the different levels for the previous activities.

Highest Group CATEGORY Paragraph It is clear where the paragraph begins and ends. All sentences begin with a capital letter and end with punctuation. It is clear where the paragraph begins and ends. 1-2 capitalization or punctuation mistakes. It is unclear where paragraph begins and ends. 3-4 capitalization or punctuation mistakes. It is unclear that the writing is in paragraph form. More than 5 capitalization or punctuation mistakes. Spending There are at least 2 sentences of what was bought and how much the items cost. There are at least 2 sentences about what was bought, but not how much the items cost. There is at least 1 sentence about what was bought and how much the items cost. There is at least 1 sentence about what was bought, but not how much the items cost. Saving There are at least 2 sentences about how much money was saved and why the student decided to save the money. There are at least 2 sentences about how much money was saved, but not why the student decided to save the money. There is at least 1 sentence about how much money was saved and why the student decided to save the money. There is at least 1 sentence about how much money was saved, but not why the student decided to save the money. Trading There are at least two sentences describing what the student traded for, who they traded with, and what items they traded. There is at least one sentence describing what the student traded, who with, or what items they traded for. Trading is mentioned along with saving or spending. No mention of trading is made.

Middle Group CATEGORY Lists There are 3 lists: 1 for buying, 1 for trading, and 1 for saving. Items are numbered in the lists. Lists are straight. There are only 2 lists. Lists are crooked or un- numbered. There are only 2 lists. Lists are crooked and un-numbered. There is only 1 list. Buying All items bought are listed, as well as the prices paid for each item. All items are bought, but some prices are missing. Some items bought are listed, as well as the prices for these items. Only items bought are listed. Saving Student lists how much money was saved. Money saved is listed but may be inaccurate. Student does not having anything under the saving list. Trading Student lists all items that were traded,what they were traded for, and who they traded with. Student lists all items that were traded and what they were traded for. Student lists some of the items that were traded and what they were traded for. Student lists what items were traded.

Lowest Group CATEGORY Time and Effort Class time was used wisely. Much time and effort went into the planning and creation. Class time was used wisely, but it did not appear there was much effort put into it. Class time was not always used wisely. Class time was not used wisely the picture shows no effort. Buying Student shows what items were bought and how much was paid for each item. Student shows some of the items bought and how much were paid for those items. Student shows some of the items bought, but no prices. Student does not show the items or prices. Saving Student shows either himself or herself saving money and how much was saved. Student shows either himself or herself saving money, but not how much was saved. Student shows only how much money was saved. Student does not show anything about saving money. Trading Student shows what items were traded, what items they traded for, and who they traded with. Student shows what items were traded, and either what items they traded for or who they traded with. Student shows only what items were traded. Student shows nothing about trading items.

Assessment Use a short quiz as a final assessment for the lesson to fully see what the students had learned. 1. What does it mean to trade? 2. Most people keep their money in a _______________________. 3. To find out how much money you need to buy something you: a. look at the cost b. leave the store c. look at a different item d. buy it without looking 4. True or False: People have to make choices about the things they choose to buy. 5. List 2 of the benefits of saving money: 6. What is a cost and a benefit of buying a new car for the family? Cost: _____________________________________________ Benefit: ______________________________________________ 7. If you wanted an item but did not have enough money for it, what would you do?