1. Wealth, Income, and Cash Flow

2. Learning Objectives Distinguish among wealth, income, and cash flow Define money and describes its sources and uses Explain how money functions

3. Wealth Download Financial Scenario 1 ▫Read and answer the question What is “wealth”? Download Financial Scenario 2 ▫Read and re-answer the first question with the new information

4. Wealth Debt-to-income ratio Cash flow issues? So what is “wealth”?

5. Wealth, Income, and Cash Flow When examining Alvaro and Sasha’s financial situation, explain why the couple’s income doesn’t reflect their net worth. How would you describe Alvaro and Sasha’s financial problems? Use the terms wealth, income, and cash flow in your answer. What steps can Alvaro and Sasha take to improve their financial situation?

6. Wealth, Income and Cash Flow Wealth is the amount that is left over after all of the bills are paid Download: Reading- Wealth, Income, and Cash Flow

7. Wealth, Income, and Cash Flow Businesses are similar to households in that business owners who don’t understand the cash flow for their business may find themselves in an unfortunate situation where they’re waiting for payments but are still expected to pay their operating expenses Businesses that don’t manage the inflows and outflows of cash accurately most likely won’t last long

8. Use in upcoming Presentation Money Exchange Unit of Account Payment Value Check your initial predictions against the actual presentation Good and Services Liquidity Business Household Financial Instrument Writing down two ideas or concepts that you learned through the presentation

9. What is Money and How Does it Function? How did your group’s prediction compare with what was actually read? Share one thing that you learned from the presentation with your partner. Discuss the three general functions of money. In your opinion, what is the most important function of money?

10. Money Sources and Uses Make a list of your top 10 or so expenditures and write each item Rank your expenditures by placing the item that you spend the most money on at the top and then the item that you spend the least on at the bottom, and filling in the other items in the middle according to the amount of money spent

11. Money Sources and Uses Make a prediction as to how teens in general spend their money

12. How American Teens Spend Their Money Food and snacks: $10,400,000,000 Beauty and hygiene: $9,700,000,000 Jewelry: $2,700,000,000 Other: $9,100,000,000 Music, movies, and entertainment: $11,400,000,000 Telephone: $5,600,000,000 Clothing: $23,300,000,000

13. How Teens Spend Their Money What types of similarities do they see? What are some differences?

14. Money Sources and Uses Download- Graphic Organizer: Three-Column Worksheet List three things that you already know about this subject In the second column, note any new information that is revealed during the reading, and the third column is reserved to fill in after the reading. In this final column, write two or three questions that you still have after reading

15. Money Sources and Uses Download- Reading: Money Sources and Uses How did the information I said I knew before compare and contrast with what I read?

16. Reflecting on Money Teenage expenses have skyrocketed in the past 10 years. Most parents would rather do without for themselves than cut back on what they give to their kids. “Last year, a middle-income family spent an average of $190,980 to feed, house, clothe and entertain a child from birth until age 18, with the teenage years taking the heaviest toll.” [USA Today, www.usatoday.com/money/perfi/basics/2006- 05-14-couples-teens-usat_x.htm] www.usatoday.com/money/perfi/basics/2006- 05-14-couples-teens-usat_x.htm

17. Reflecting on Money Cash flow Influence on parents finances Sources of income for you? Parents? You will be talking with a partner to decide what topic you will write about pertaining to subject learned throughout the lesson and the reading

18. Reflecting on Money Download: Assessment Criteria- Reflecting on money worksheet Identify aspects of the essay that reflect the assessment criteria that was presented Download- Assignment Sheet: Reflecting on Money

19. Sharing and Class Closure What is the most important aspect of your essay? Having material possessions is only one component of wealth, but having a clear understanding of your spending habits, your income, and cash flow is important to proper money management for any individual, household, or business.

20. Enrichment Compare and contrast the wealth profile of the United States in relation to other countries. The following websites offer information regarding this topic: http://en.wikipedia.org/wiki/Distribution_of_w ealth and http://www.mindfully.org/WTO/2006/Househ old-Wealth-Gap5dec06.htm http://en.wikipedia.org/wiki/Distribution_of_w ealth http://www.mindfully.org/WTO/2006/Househ old-Wealth-Gap5dec06.htm

21. Assignment 1 page paper comparing and contrasting the wealth profile of the United States to another country Use normal formatting and drop in the dropbox

22. Enrichment Research the distribution of wealth in relation to specific time frames. For example, students could research how the distribution of wealth in the last 30 years in the United States has changed. The following websites offer information regarding this topic: http://sociology.ucsc.edu/whorulesamerica/po wer/wealth.html and http://www.federalreserve.gov/pubs/oss/oss2/ papers/concentration.2001.10.pdf. http://sociology.ucsc.edu/whorulesamerica/po wer/wealth.html

23. Power Point Journal Create a 3-5 slide presentation with pertinent information about how wealth is distributed in the U.S. as well as one other country then compare and contrast characteristics.

24. Cross-Curricular Integration Language Arts: Have students read books related to money management and finance. For example, Rich Dad Poor Dad by Robert Kiyosaki; Buffett: The Making of an American Capitalist by Roger Lowenstein; The Ascent of Money by Niall Ferguson; and The Millionaire Next Door by Thomas Stanley and William Danko. Once students have finished reading the book, have them complete one of the following activities: ▫Prepare a sales talk, imagining that the students in the class are prospective customers who are looking for a book on money management and finance. In three to five minutes convince the class that your book is a worthy read.