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What to Do With Money

Teacher
s

Student
s

Objectives
Given an amount, students will create a budget without
exceeding the amount.
Given a price and sales tax, the student will be able to
find the total price correctly.

Standards
Fle.1.1- Demonstrate taking responsibility for
personal finance
FLE.3.1- Demonstrates ability to use money
management skills and strategies.
FLE.3.6.- Develop a personal financial plan
FLE.6.3- Compare investment alternatives

Environment

Life skills classroom


Student will be at a computer by themselves, but may ask for help from the teac
n a place where students wont feel pressured to go through the activity too quic

Audience
Fourth graders in a life skills classroom
working on money skills.

Navigation

This is Steve, he just made $20.00 selling


lemonade. He doesnt
quite know what to do with it.
Lets help him figure it out!

What Steve Needs to Know

Saving

Increase/decrease

Spending

Saving
There are many ways that Steve can save
his money.
Continue on to see what his options are!

How to save

Piggy Bank

Parents

Bank

Piggy Bank

A piggy bank is where Steve puts his change from selling lemonade.
Along with any change he may find laying around the house.
Over time his change increases, increasing the money amount!

Parents

Bank
Steves parents have opened a savings account for him.
When he puts money into his account it earns interest,
meaning that the bank will add money to Steves money.

terest doubles yearly. So if the interest of Steves account


9% for the first year it will be 18% the second year.

$400
$350
$300
$250

Column1

$200
$150
$100
$50
$0

Year 1

Year 2

Year 3

Year 4

Notice how the interest


doubles each year. Increasing
the original amount of money.

Here is an example of interest. Principal is the original amount


that is put into the bank. In this example the principal is $200.00
The interest is 9% which is $18.00. So, the principal plus the inte
is $200.00+$18.00 which will total $218.00.

Another Example

The principal is $100.00. The interest is again 9% which is $18.00.


To find the future amount we will add $100.00+$18.00=$118.00.

Your turn!
The principal amount is $250.00. The interest is 9% which is $18.00.
What will the future amount be?
$268.00
$218.00
$300.00

FANTASTIC!
The future amount will be $268.

Oops, try again


Steve is being given money. What does this mean?
Increase?
Decrease?

Oops, try again

Think about this. If you had 5 dollars, and your mother gave you
5 more dollars. Did you add to your amount? Or subtract from your amount?

Increase/Decrease of money
Steve not only gets money from
selling lemonade. But he also
receives a weekly allowance of
$10.00.

Think about it!


In the text box below, write three extra chores that Steve can earn money from.

Just because Steve is getting more money from


his allowance and other outside resources,
doesnt mean that he gets to keep it all. He owes
his mom $5.00 for a toy she bought.
He also owes her another $8.00 for buying the
supplies for his lemonade stand.

Time to do the math!


If Steve has earned $40.00 and owes his mom $14.00 how much will he have left?

$54.00
$32.00
$26.00

Great job!!
$26.00 is correct! He has $40.00, but owes his mother $14.00.
$40.00-$14.00=$26.00

Oops, try again

Remember, he has a certain amount and he owes


his mom a certain amount.
Are you adding?
Or subtracting?

Oops, try again

If he owes his mother money. Is he taking away from his original amount
Or increasing his original amount?

This means that Steve is losing money. First his money increased by
eceiving money from his allowance. But then decreased when he pai
his mother back.

s concept can be related to everyday life with bills.


ults work to earn money.
en they get paid they cant keep all of the money they have earned.
y have to use some of it to pay for things like groceries, and bills.

ough, sometimes its not just money he owes.


may want to use his money for something that he
nts to buy.
to the next slide to see Steves money habits.

40
30
20
10
0

Notice how Steves money increases


and decreases as he earns and spends
his money.

Question!
If Steve only has 5 dollars left after his spending.
How much will he have after he gets his
$10.00 allowance.

$15.00
$10.00
$30.00

Fabulous!

Steve will have $15.00 after his allowance.

Not quite right.

Go back and try again. If you need help, go back and review.

Not quite right.

If he is earning money. Is he adding to his original amount


Or decreasing his original amount?

Spending

Steve loves to spend his money, but there are some things
that he needs to take into consideration

Sales Tax

Lets Practice

Toy Car

The car cost $2.00.


The sales tax is $0.08.
What is the total?

Steps
First we need to find the price.
Next, we need to know the sales tax.
Then, we multiple the price and the sales tax.
Finally, we add the product to the original price.

$2.00price

$2.00-price
+ $0.16-product

x $0.08-tax
$0.16-product

$2.16-total

Toy Car

The price of the toy car including sales tax is $2.16.

Kite

Price: $5.00
Sale tax: $0.08
Total Cost: $5.40

$5.00
X$0.08
$0.40

$5.00
+$0.40
$5.40

Now you try.

If Steve wants to buy lemons for his lemonade. One pound bag of lemons
cost $3.00 and the sales tax is $0.08. What will the total price be for one bag of le

Whats our first step?

Multiplying sales tax to the price?

Adding the product to the price?

Whoops
Not just yet, go back and review the practice slides.

Bravo!!

Our first step is multiplying the sales tax to the price.

Finish the problem and write your


answer below. Once you have
finished you may move on.

Answer!!

You should have gotten $3.24 after sales tax.

Now that you have successfully helped Steve


understand the concept of money.
You may quickly raise your hand and wait for
the teacher to give you further instructions.