Introduction to Budgeting and Personal Finance Name: Subject: Semester: Todd McLauchlin Personal Finance 30 Winter 2014 Date:

Grade: Lesson Length: TBD 12 60 min

Content Identification: In today's class, we will begin by examining personal finance and budgeting. This class is intended as one of the first classes of the semester, and as such, it will be useful to define Personal Finance, in general terms, before moving to content. The second portion of the class will involve the completion of a Google form. This form will ask the students to fill in their names and complete 20 questions about budgeting and personal finance topics. This form or quiz will serve as a diagnostic assessment of the students' knowledge and practices in terms of budgeting and personal finance. The third portion of the class will involve the discussion of each question as a group. I will show the data gathered from the form in aggregate, and will discuss why students answered the way they answered and what implications there are for budgeting and personal finance from these answers. This portion of the lesson is fluid and will be based on the responses given; however, a guide to this is at the end of this lesson plan. Finally, the students will complete an exit slip. The concept of a paperless class was introduced in the previous classes, along with the course outline; however, I will remind the students that they can either share the completed exit slip with me in Google Drive or email the completed exit slip back to me. The exit slip contains only one question, and again it will help me mold the details of the coming lessons. The question is, what do you want to gain from a course in Personal Finance? Indicators (Assessment): Outcomes (Objectives): - The quiz/form will serve as a diagnostic assessment for the students' prior knowledge on PF(L) 5-Demonstrate understanding of personal personal finance and budgeting. budgets and their importance for financial - The exit slip will further inform my teaching and planning. help plan the upcoming lessons. A) Describe budgeting and explain how it relates to - The students will begin to be able to describe financial problem solving and financial how their decisions effect their financial positions responsibility. and connect these decisions to financial problem solving and financial responsibility. Common Essential Learnings: Personal and Social Values and Skills Cross-Curricular Competencies: Developing Identity and Interdependence Prerequisite Learning: No prerequisite learning Equipment/Materials: The Google Form, the completed data, and the Exit Slip (shared to the students) will all be needed. The students will also need computer and internet access. Set: (10 min) 1) Introduction to Personal Finance - Definition of Personal Finance - This will add to the overview given in the course outline and provide us direction for the first unit, on budgeting.

Development: (40-45 min) 1) A link to the Google Form will be provided to the students and they will be asked to consider each of the 20 questions carefully. It is also important to inform the students that this information when discussed will not identify them individually. Therefore, they should feel free to answer honestly and thoughtfully. (5-7 min, but adjust as needed) 2) A significant portion of this class will be spent discussing the questions/answers from the quiz. 1-2 minutes is budgeted for each question. However, some may take more and some will take less. This time is a great chance to establish a discussion environment in the class. I will invite the students to explain the responses, and how they think it impacts personal finance and budgeting. A student does not need to identify his/her selection by speaking. If the discussion goes long, it is better to continue it and save the exit slip for next class than to truncate the discussion, since this is the first real, opportunity the class will have to examine personal financial matters. (30-40 min) Closure: (5-10 min) 1) The final portion of the class will be the completion of an exit slip that asks what do you want to gain from a course in Personal Finance. I will share the exit slip with the students and ask them to either share the completed exit slip back to me in Google Drive or email to me, since we have a paperless classroom. 2) Students may wish to spend a few extra minutes considering these responses and as such, they should submit the slip for next class. Questions from the quiz on Budgeting/Personal Finance and talk points: The quiz can be found at: http://goo.gl/GPCZ9y 1) I think it is important to save money regularly. - This statement is designed to find out how the students think about saving and spending and is tied to question 2. 2) I believe that money I earn is money I should spend. - Along with statement 1, these statements are created to get the students thinking about how they save and how they spend. 3) I have a debit card and use it regularly. - This statement looks at the idea that when money is spent, in paperless form, it is not as easy to make the connection for actual spending. You feel less like you spent money when it is paid by debit over cash. 4) I have a credit card or a pre-paid credit card. - This statement looks at the idea of credit, or spending money you do not have. Pre-paid credit cards are included in this, since the value cannot be saved or invested, it must be spent. 5) I look over my bank statements, either paper or digital, to ensure everything is correct. - Most adults admit to not looking at their bank statements each month. This statement is geared to begin a discussion of the fact that if you do not look at it, there can be errors or items you did not purchase charged to your account. 6) I make purchases online. - This is simply created to take the pulse of the room to determine the portion of the students that shop online. 7) Before I make purchases online, I make sure that I am on a secure website. - This concerns the students' level of security awareness. If they are purchasing from a non-secure site, they may have credit card or personal information stolen. 8) I bank online or use Pay-Pal. - This is designed to determine the students comfort level with banking in digital space. It is easier to keep track of your funds in this manner, but you need to be careful with your account/password details.

9) If I want music, movies or games, I pay for them. - This is more concerned with the value of money than the notion of piracy, but both could be discussed. The money that is spent on these items is for entertainment and will be a discretionary item in the budget; it is good to know how students view this area. 10) I am careful with my personal information and identity. - This does not simply mean looking at online security but security in general. How do students consider their names, credit/bank account numbers, social insurance numbers, credit checks, etc? This statement could take longer than most to discuss. 11) If I have a gift card, I sometimes share it with my friends. - Again, this statement is looking at the value of money. Like a pre-paid credit card, gift cards cannot be saved or invested; however, they are the same as cash and can be spent in that sense. Do students value gift cards less than cash? 12) When making purchases, I consider buying discount brands or knock-offs. - Are students looking to get the best possible price when purchasing or is brand an important factor? Some brands do not give you greater value for the extra price, while some do. 13) I keep track of what I spend regularly. - This is connected to the idea of knowing where and what you spend money on. It may involve keeping receipts, or using online banking sites. This is connected with the idea of budgeting since the students would need to compare what they spend to the budget. 14) I look for sales or coupons before making purchases. - Similar to question 12, this is aimed at finding out if students simply buy what they want, or they are looking to get the most out of the money they have. 15) I sometimes make purchases that I later regret making. - Impulse buying is the target of this question. It can be a small item like junk food, or something larger like buying the latest phone, when the previous version was all that was needed. The students who regret the purchases are not necessarily more likely to make impulse purchases, just more likely to recognize they did. 16) I think about whether I need an item or want an item, before I buy it. - Considering needs and wants is a fundamental aspect of budgeting. This question can draw upon the idea of planning for something else to purchase or making the want purchase now as part of the discussion. 17) I check my pay-stubs to make sure my earnings and deductions are correct. - Many grade 12 students will have part time jobs and it is important to make sure that the money that is paid is correct. The hours worked, the hourly rate, the deduction amount or even the final cheque/deposit could all be incorrect, but it is impossible to know if it is not examined. 18) When I have extra money, I think about ways I can invest that money. - This looks at the notion of planning for the future and making money work. Students that have jobs may have extra money, and if they are considering investing, they are planning on how to grow that money. Investing can be risky of course, so it is good to discuss this aspect as well. 19) If I borrow money, even if it is not from the bank, I try to repay it as quickly as possible. - Interest is the topic of this statement. If money is borrowed and paid back slowly, more interest charges will be incurred, making the loan more costly than it needed to be. Interest charges are an expense and this is important to point out in this section. 20) I make a budget for my income and expenses. - The final question is an entry point into the unit on budgeting. The students may already be budgeting, to some degree. Others may just spend as they go. Some may save and some may invest. The point here is to determine what portion of the group already budgets and what portion does not.

The discussion about the 20 questions will vary from group to group and the points above are only a starting point. As much as possible the discussion should be driven by the students, since it is their financial positions we are exploring. While the questions are being discussed, it is helpful to show the aggregate data, a sample of which can be found at: http://goo.gl/e7diYK