1. Making your Money Grow Gr. 2 Financial Literacy
SS.4.FL.5.1 Explain that after people have saved some of their income, they must decide how to invest their savings so that it can grow over time.
SS.4.FL.5.2 Explain that a financial investment is the purchase of a financial asset such as a stock with the expectation of an increase in the value of the asset and/or increase in future income.

2. Essential Questions What is the difference between saving
Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
Essential Questions
What is the difference between saving
and investing? Why is it important to
invest your money?
Do: Encourage students to analyze the idiom, “Money doesn’t grow on trees”. Tell students that they are going to learn about saving and investing. We are going to discover why it is important to invest your money.
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3. Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
Money is used to pay for our basic needs. Needs are things we need in order to stay alive, such as food, water, shelter, and clothing.
Say: Money is used to pay for our basic needs. Needs are things we need in order to stay alive, such as food, water, shelter, and clothing.

4. Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
Money also pays for things we want. Wants are things we would like to have but can live without.
Say: Money also pays for things we want. Wants are things we would like to have but can live without.

5. Do you know the difference between a need and a want?
Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
Do you know the difference between a need and a want?
I NEED
I WANT
3. toys
1. home
4. cell phone
2. groceries
7. designer clothing
5. water
8. electronics
6. clothing
9. movies outing
Do: Ask students to practice identifying needs versus wants with the nine following samples:
Home
Groceries
Toys
Cell phone
Water
Clothing
Designer clothing
Electronics
Movies outing
1. home
6. clothing
2. groceries
7. designer clothing
3. toys
8. electronics
4. cell phone
9. movies outing
5. water

6. I need to save $300 more to buy this…
Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
The money left over after paying for your basic needs can be used to pay for those things you want. Many times we don’t have enough money left over to buy those things we want and have to wait until we have saved enough money.
I need to save $300 more to buy this…
I have $100
Say: The money left over after paying for your basic needs can be used to pay for those things you want. Many times we don’t have enough money left over to buy those things we want and have to wait until we have saved enough money.

7. Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
When we save money, we set aside money until we have a large amount. This can take time.
Say: When we save money, we set aside money until we have a large amount. This can take time.

8. Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
When we invest money, we use some of the money we have to make even more money.
I have $100
I will use half of that money to have a bake sale and will make $100 profit. Now I have $200.
Say: When we invest money, we use some of the money we have to make even more money. One way to invest your money is to start your own business.

9. What are some ways kids can make your money grow?
Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
What are some ways kids can make your money grow?
Say: Kids, too can make their money grow with a business. Can you think of ways kids can make their money grow?

10. Who will have the most return on investment?
Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
Now your teacher will partner you with another student. Both of you will be operating your own business for a day.
Who will have the most return on investment?
Do: Explain that for this activity they will become business partners with another student.
Say: Both of you will be operating your own business for a day. You and your partner will both be given the task of operating either a car wash business, a lemonade stand, or a bake sale business for a day. Each will get a handout and will be taking turns selecting a situation card from the pile. Read your card to your partner and write down if you make a profit or must subtract a loss from your initial investment. Once you have taken turns until you run out of cards, answer the questions on your handout.
Do: Provide examples if needed so that students understand how to complete activity. Provide time for students to share their responses. Who will make the most profit in the end?
Activity Instructions: Take turns with a partner selecting up to five situation cards from the pile. Add any profits and subtract any losses on your handout to answer the questions.

11. What did you discover about operating a business?
Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
What did you discover about operating a business?
There is some risk with _____________, sometimes you make a profit and other times you don’t.
One way to make your money grow faster is to invest in a ____________.
Do: Discuss what students discovered about operating a business. Have students fill in the blanks on the character’s dialogue bubbles.
Say: There is some risk with ______, sometime you make a profit and other times you don’t. (INVESTMENTS)
One way to make your money grow faster is to invest in a _________. (BUSINESS)

12. Closing What is the difference between saving
Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
Closing
What is the difference between saving
and investing? Why is it important to
invest your money?
Do: Revisit the essential questions, “What is the difference between saving and investing?” and, “Why is it important to invest your money?”. Encourage students to connect their learning with the findings from the activity.
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13. Sources Lesson Adapted from: Lemonade Stand
Grade 2 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2
Sources
Lesson Adapted from: Lemonade Stand
Discovery Education, (2005). Paz's Lemonade Stand. [Video Segment]. Available from
Worksheet: Needs vs. Wants