lemonade day lesson 1.1: SettinG GoalS

Transcription

What makes this program especially effective is the way it incorporates the entire community —
the child, their mentor, the school or organization, and the local community — in a deliberate and
focused effort to teach children about financial literacy and entrepreneurship.
- Greg Malkin, Director, Entrepreneur Institute
Hunting Valley, OH
Bloomington, Indiana is very excited to be part of the Lemonade Day community and launch
our first event in May 2012. We are a community that values education, and the Lemonade Day
program offers a unique way of engaging our kids in the fun and excitement of operating a small
business. It builds character and provides the right mindset for our kids to show that they can do
anything if they put a plan together and make it happen.
- Steven E. Bryant, Executive Director, Gayle and Bill Cook Center for Entrepreneurship
Bloomington, IN
Lemonade Day was such a great experience for our middle school kids! Not only did it light the
entrepreneurial fire within their souls, it also taught them the value of collaboration. As a Principal
at Spring Forest in Houston, I am always looking for ways to connect the curriculum to the real
world. Lemonade Day is a natural connection!
- Shawn Bird, Ed.D., Principal, Spring Forest Middle School
Houston, TX
The buzz around school is Lemonade Day. The eigth graders are going to Washington, D.C. and
their goal is to raise enough money to offset the cost of the trip. The lesson of entrepreneurship,
investing and giving are lifelong lessons. We are so excited that we are involved in this venture.
- Valeria Bryant, Principal, Washington Irving Elementary
Chicago, IL
Table of Contents
HOW TO USE THIS MANUAL P. 2
LESSON FIVE: Purchasing & Making Healthy Lemonade
P. 29
LESSON ONE: Lemonade Day & Setting Goals P. 3
Objectives: SWBAT
Objectives: Students will be able to (SWBAT)
- Assess cost-effectiveness when making supply purchases
- Explain the purpose of Lemonade Day
- Plan for making healthy lemonade
- Repeat and define the term entrepreneur
- Identify characteristics of successful entrepreneurs
LESSON SIX: Setting Up & Running Your Business P. 32
- Record and discuss their goal
Objectives: SWBAT
- Prepare for setting up their lemonade stands
LESSON TWO: Planning & Budgeting P. 8
- Demonstrate effective practices of business operation
Objectives: SWBAT
- Count up when making change for a purchase.
- Define the term profit
- Compare the pros and cons of a business relationship
LESSON SEVEN: Business Results & Accounting; Spending,
- Develop a budget to sell lemonade
Saving & Sharing; Reflections & Future Plans P. 40
- Differentiate between Capital Equipment and Consumables
Objectives: SWBAT
- Measure, record, and interpret financial data
LESSON THREE: Finding An Investor, Site Selection &
- Reflect and evaluate their results from Lemonade Day
Advertising P. 16
- Discuss the benefits of a savings account
Objectives: SWBAT
- Make a donation to charity
- Define the term investor
- Plan future entrepreneurial activities
- Identify an investor for their lemonade business
- Describe their lemonade business in order to secure an investor
GLOSSARY OF TERMS P. 48
- Identify and select a location for their lemonade stand
- Develop an advertising plan for their lemonade business
ONLINE RESOURCES FOR TEACHERS & STUDENTS P. 49
- Create an advertisement to market their lemonade business
COMMON CORE AND JUMP START STANDARDS P. 50
LESSON FOUR: Building a Stand P. 25
Objectives: SWBAT
TEXAS ESSENTIAL KNOWLEDGE AND SKILLS P.51
- Identify elements of a successful lemonade stand
- Plan their stand design as they prepare to build their
lemonade business
1
How to Use This Manual
Thank you for choosing to lead your students through the Lemonade Day curriculum. Lemonade Day teaches youth vital
entrepreneurial skills using the model of a lemonade stand and moves beyond textbooks to engage and educate students on the
basics of starting a business in a fun and experiential way. The highlight of the program will take place on National Lemonade Day,
the first Sunday in May (check the date with your city), when every student opens a lemonade stand for business.
This curriculum will help you guide your students to get the most out of Lemonade Day. It is a step-by-step process with tools and
suggestions to deepen youths’ entrepreneurial experiences. Each lesson and accompanying activities correspond to the “Steps to
Success” in the Teen Entrepreneur Workbook. The curriculum is divided into seven cross-curricular lessons covering topics from
Setting Goals to Setting Up and Running Your Lemonade Stand.
Lemonade Day lessons include:
- Correlation to Texas Essential Knowledge and Skills (TEKS), Common Core State Standards (CCSS) and
Jump $tartCoalition Personal Finance Education National Standards
- Personal financial literacy (PFL) extensions to address these standards
- Worksheets
- Activities incorporating use of technology
- Resources and suggested readings for class discussions
- Cooperative grouping and real world class activities
- Business vocabulary terms
- Internet resources and activities
- Suggestions for parental and community involvement
This curriculum incorporates a variety of reading strategies and problem solving activities that are student-centered with real
world applications. It is designed to be delivered during the Spring semester. Lessons one through six should be completed prior to
Lemonade Day in order to prepare students to operate their businesses. One lesson is after Lemonade Day to report and evaluate
students’ experiences and plans for future ventures.
Lemonade Day recognizes that you only have a short amount of time to cover a lot of information. The lessons can be modified
to fit the time allotted. Handouts are included for each lesson. In addition to this Guide for Teachers, each participating student
will receive a backpack complete with a Teen Entrepreneur Workbook and Mentor Guide. The Teen Entrepreneur Workbook has
exercises to accompany lessons in this guide and can serve as a record of students’ participation and entrepreneurial journey.
The Mentor Guide is a resource for parents, mentors or other grownups who work with your students. More resources can be found
at LemonadeDay.org.
We hope you find this curriculum a valuable resource that is easy to use
and enhances your instruction. Please visit LemonadeDay.org for the latest
resources. We welcome your feedback and stories. Most importantly, we
hope that you and your students have fun, and that they make lots of money!
2
Objectives
- Students will be able to explain the purpose of Lemonade Day.
- Students will be able to repeat and define the term entrepreneur.
- Students will be able to identify characteristics of successful entrepreneurs.
- Students will be able to record and discuss their goal.
Lesson One:
LEMONADE DAY &
Setting Goals
Materials & Set-Up
- Writing utensil
- Entrepreneur Workbook: Setting Goals
- Lesson 1.1 Worksheet: SETTING GOALS
- Lesson 1.2 Worksheet: PROFIT PLANS GRAPHIC ORGANIZER
- Lemonade Day Video(s), ready for class viewing at LemonadeDay.org/videos
- Write the following on the board: Entrepreneur / En • tre • pre • neur
Key Terms
- Entrepreneur: a person who starts a business assuming the risk for the purpose of making a profit
warm-up:
- Welcome students to their first Lemonade Day Lesson. Congratulate them on their choice to participate in this project which will allow
them to make their own money by starting, owning and operating their very own business!
- Announce the date of Lemonade Day (check the date for your city) and let students know that their commitment and hard work will
pay off; not only in actual cash but also in learning skills that they can use for the rest of their lives!
- Ask for a show of hands as to how many students have participated in Lemonade Day before or who have operated a lemonade stand.
Do a quick whip around asking those students how much money they made with their lemonade stands.
- Review behavioral expectations for Lemonade Day Lessons. Include the expectation that students come prepared to every lesson with
their own:
• Writing utensil
• Entrepreneur Workbook
Activity 1: KWL & Video Viewing
Objective: SWBAT explain the purpose of Lemonade Day.
- Ask students to fill out the “K” and “W” columns on the KWL Chart found on their Lesson 1.1 Worksheet: Setting Goals on page 5.
- Prompt students to turn to a partner (whomever they are sitting closest to) and share the things they already know about Lemonade Day.
- Call on volunteers to share the information they already knew about Lemonade Day with the class.
- Ask students to share the information they want to know about Lemonade Day (reading from their “W” column).
- Prompt students to fill out the “L” column of the KWL chart as they learn new things about Lemonade Day.
- Play one or more Lemonade Day videos. Prompt students to continue adding information to their “L” column.
- Answer any questions and address misunderstandings. Here are a few common ones:
Q: Do I get to keep all of my own money?
A: Yes, you keep everything you earn. In the spirit of a true business, we encourage you to open a savings account, pay back your
investor and make a further investment in your community by donating a portion of your profits to a charity of your choice.
Q: What time do I have to be there and where do I go?
A: Lemonade Day is held on the first Sunday in May (check the date for your city), so we ask that you plan to run your business
on that day. However, the location of your lemonade stand and the time you’ll run your business is entirely up to you. We will
learn later how to choose the best location.
Assessment:
- Prompt students to answer the question on their worksheet, “In your own words what is the purpose of Lemonade Day?”
- Prompt students to share their responses with their partner, call on volunteers to share answers with the class.
- Review the purpose of Lemonade Day if necessary: Lemonade Day teaches you how to start, own and operate your very own business,
allowing you to make your own money!
3
Activity 2: Choral Responses for Entrepreneur
Objective: SWBAT repeat the term entrepreneur.
- Provide a visual on the board by writing the key term and the term with syllable breaks: Entrepreneur and En • tre • pre • neur.
- Give students the following prompt, “I am going to say entrepreneur aloud, breaking the word into syllables as I say it” (I do).
• Teacher models saying: En • tre • pre • neur.
- Give students the following prompt, “Now I am going to say the term one more time and once I point to you, we will all say the term
together” (We do).
• Teacher models saying: En • tre • pre • neur.
• Teacher points to the class; teacher and students say: En • tre • pre • neur.
- Give students the following prompt, “Now on the count of three I will point to you, and you will say the term together as a class” (You do).
• Students say together: En • tre • pre • neur.
- Provide feedback as needed.
• For added engagement, you may also clap (in sync) as each syllable is pronounced; model this so students are clear on the
expectations.
- Once students have grasped the structure of the word allow them to say the word fluently with a partner if time permits.
Activity 3: Defining Entrepreneur
Objective: SWBAT define the term entrepreneur.
- Prompt students to follow along on the What is an Entrepreneur? section of their worksheet.
- Read the definition and context sentences for the term aloud.
- Prompt students to turn to their partner and define this term in their own words.
- Call on volunteers to share their understanding with the class.
Activity 4: Characteristics of Successful Entrepreneurs Objective: SWBAT identify characteristics of successful entrepreneurs.
- Prompt students to follow along on the Characteristics of Successful Entrepreneurs section of their worksheet.
- Ask students to place a check mark next to each characteristic they possess which will help them become a successful entrepreneur.
- Call on volunteers to share their response with the class.
Assessment:
- Ask students to reflect as entrepreneurs by independently responding to questions 1-2 in the Entrepreneur’s Reflection section of their worksheet.
- Spot check students’ responses, ensuring they are grasping the correct context of the term.
Activity 5: Setting a Goal
Objective: SWBAT to record and discuss their goal.
- Prompt students to turn to the Setting Goals section of their Entrepreneur Workbook.
- Read the Setting Goals Lesson aloud.
- Ask students to brainstorm items they would like to purchase or things they would like to do with the money from their lemonade stand.
- Prompt students to record their ideas in their workbook, along with how much money this will cost.
- Do a quick whip around and allow each student to enthusiastically call out their financial goal.
PFL Extension: Components of Profit
- Guide students to complete the Lesson 1.2 Worksheet: PROFIT PLANS GRAPHIC ORGANIZER on page 7 of the Teacher’s Guide.
- Refer students back to the ideas generated above of all the ways their money can be used and have them complete the graphic organizer.
The three outer-circles are for the big ideas: short-term goal (spend), long-term savings goal (save) and donating (share).
- Prompt students to add branches to each outer circle for specific uses of profit. Discuss specific options for uses of their profits, including
saving for college and paying it forward so another student can experience the Lemonade Day project next year.
Closure
- Remind students when Lemonade Day will take place (check the date for your city).
Internet Resources
NOT Your Grandma’s Lemonade Stand - http://bit.ly/SUL1b
Game - Mad Money - http://to.pbs.org/SUL1c
I Can Be an Entrepreneur - http://bit.ly/SUL1d
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HANDOUT
Entrepreneur’s Name:___________________________________________________________________________
Lemonade Day Lesson 1.1: SETTING GOALS
Lemonade Day KWL
Directions: Fill out the “K” and “W” columns of the KWL Chart below, fill out the “L” column as you learn new things about Lemonade Day.
K
W
L
What do you already know
about Lemonade Day?
What do you want to know
about Lemonade Day or
running a lemonade stand?
What did you learn about
Lemonade Day?
What’s the purpose of Lemonade Day?
Directions: Using the information you’ve written on the KWL chart and thinking about the video you have just seen, answer the following
question in space provided below.
In your own words, what is the purpose of Lemonade Day?
__________________________________________________________________________________________
__________________________________________________________________________________________
_______________________________________________________________________
5
Key Terms: What is an Entrepreneur?
Term
Definition
Context
A person who starts a business
assuming the risk for the purpose of
making a profit
1. There are many responsibilities that
come with being an entrepreneur, such
as making sure customers are happy so
that they will keep coming back.
2. After seeing how much money my
uncle was able to make after opening
his restaurant, I knew that I also wanted
to be an entrepreneur one day.
Entrepreneur
En • tre • pre • neur
Part of speech:
Noun
Characteristics of Successful Entrepreneurs
Directions: Below are a few characteristics that many successful entrepreneurs have. Place a check mark () next to the characteristics
you possess that will help you become a successful entrepreneur.
_____ C
reative
Entrepreneurs like to think of ways to make things better or they come up with new ideas altogether.
_____ Confident
Entrepreneurs believe in themselves and their ideas, and even if their business experiences a failure they continue to believe that
they will succeed.
_____ Goal Oriented
Entrepreneurs set clear goals for themselves and their business, always thinking and improving. They work hard until they achieve
their goal.
_____ Observant
Entrepreneurs always look for what people need, and they act by starting a business or expanding their existing business to meet
that need.
_____ Patient
Entrepreneurs realize that it may take time and even some failures before their business succeeds, but they have patience and they
don’t give up on their goals.
Entrepreneur’s Reflection
1) Why do you want to be an entrepreneur?
___________________________________________________________________________________________
___________________________________________________________________________________________
2) Let’s suppose we’ve all just moved to the planet Mars and you keep hearing people say how much they miss eating ice cream.
What would you do as an entrepreneur in this situation?
___________________________________________________________________________________________
___________________________________________________________________________________________
6
HANDOUT
Lemonade Day Lesson 1.2:
PROFIT PLANS GRAPHIC ORGANIZER
Long-term
savings goal
LEMONADE DAY
PROFIT PLAN
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Objectives
Lesson Two:
Planning & Budgeting
- Students will be able to define the term profit
- Students will be able to compare the pros and cons of a business relationship
- Students will be able to develop a budget to sell lemonade
- Students will be able to differentiate between Capital Equipment and Consumables
Materials & Set-Up
- Writing utensil
- Entrepreneur Workbook: Planning & Budgeting
- Lesson 2.1 Worksheet: PLANNING & BUDGETING
- Student Resource: Business Plan Template
- Teacher Resource: Simple Lemonade Recipe
- Teacher/Student Resource: Advertising Circular
- Technology Option (See Teacher Resources at LemonadeDay.org): Lemonade Day Teen Spreadsheet
- Calculator (optional)
Key Terms
- Budget: a list of all planned expenses and revenues
- Business Plan: a detailed plan of how a business is operated to reach its goals
- Capital Equipment: supplies that can be used over and over again
- Consumables: goods that once used are gone or no longer usable
- Employee: a person working for another business or person for pay
- Partnership: a business that is owned by two or more persons
- Profit: the money gained from the sale or sales after expenses are paid
- Revenue: all money that comes into your business
Spiraling terms from Lesson One
• Entrepreneur: a person who starts a business assuming the risk for the purpose of
making a profit
• Goal: the specific task or target a person aims to achieve
warm-up:
Objective: SWBAT recall the definition of entrepreneur.
- Prompt students to begin working on their warm-up found on the Lesson 2.1 Worksheet: PLANNING AND BUDGETING. Students should
name famous local and national entrepreneurs. For help, have students think of commercials they may have seen on television.
Examples of national entrepreneurs include: Russell Simmons, founder of Def Jam Records; Bill Gates, founder of Microsoft; Steve
Wozniak, Steve Jobs, and Ronald Wayne, founders of Apple Computers; Sergey Brin and Larry Page, founders of Google; Mark Zuckerberg,
founder of Facebook; Beyoncé Knowles, founder of House of Deréon Fashion Line. Have students conduct an internet search for local
entrepreneurs and identify business owners in their community who are entrepreneurs.
- Call on volunteers to share their responses with the class.
- Let students know they will begin planning and budgeting for their lemonade business during this lesson
Activity 1: Defining Profit
Objective: SWBAT define the term profit.
- Read the What is Profit? section of the student worksheet to the class and ask students to follow along.
- Prompt students to turn to their partner and define this term in their own words.
- Call on volunteers to share their understanding with the class.
Assessment:
- Prompt students to write one complete sentence using the term “profit” under the Show What You Know section of their worksheet.
- Spot check students’ responses, ensuring they are grasping the correct context of the terms.
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Activity 2: Planning your Business
Objective: SWBAT compare the pros and cons of a business relationship.
- Prompt students to turn to the Planning & Budgeting section of their Entrepreneur Workbook. Call on various students to read aloud
the pros and cons of working alone compared to working with a partner.
∙ Check for understanding by calling on volunteers to recall a pro and con of working alone and working with a partner.
- Ask students to make a decision about whether they want to operate their business independently or with a business partner.
- Ask students to decide whether or not they want employees.
- Prompt students to answer the questions on their worksheet under the Planning for Your Business section. If students are partnering with a
classmate, allow them to pair up. Tell students they may not know all the information now, but can come back to fill it in later.
- R efer students to the Business Plan Template and instruct them to complete the template as they work through the planning process.
Assessment:
- Call on volunteers to share their response to the Planning for Your Business questions. Ensure students have grasped the concepts
regarding business partnerships and profit sharing.
Activity 3: Capital Equipment & Consumables
Objective: SWBAT differentiate between capital equipment and consumables.
- Prompt students to follow along on the Capital Equipment & Consumables section on page 2 of their Lesson 2.1 Worksheet:
PLANNING AND BUDGETING. Call on students to read aloud the information listed in this section.
- Call on students to read aloud the information listed in this section.
- Ask students if they can name the capital equipment & consumables in the classroom.
Assessment:
- Prompt students to answer questions 1-6 under the Capital Equipment & Consumables section on page 2 on their worksheet.
ANSWER KEY: 1) Consumables 2) Capital Equipment 3) Capital Equipment 4) Consumables 5) Capital Equipment 6) Consumables
- Call on students to share their responses with the class.
Activity 4: Budgeting
Objective: SWBAT develop a budget to sell lemonade.
- Instruct the students to read through page 4 of the budgeting section in the Entrepreneur Workbook.
- Prompt students to complete the Budgeting for Supplies activity on their Lesson 2.1 Worksheet: PLANNING AND BUDGETING.
∙ Provide a model of what students are expected to do for the first line item of the budget.
∙ Circulate checking to see that students are correctly multiplying the quantity times the cost per unit.
- Prompt students to return to the Budgeting section of their Entrepreneur Workbook and begin completing their own budget; let
students know to fill in whatever they know, they can add on as they go. Discuss how in a later lesson they will look at their actual
expenses and see how they compare to their estimates.
- Instruct the students to develop a list of their Lemonade Ingredients & Stand Supplies.
- Estimated # of cups: Have the students estimate how many cups they plan to sell and enter in Worksheet Two on page 5 of the
workbook. Some items to consider include how many cups they think can sell in an hour and how many hours they will be open.
- Supplies: Prompt students to complete the budget for consumable and capital equipment supplies in their workbook (Worksheet One).
To complete this worksheet, students will need a Lemonade Recipe and the prices for items in the list they developed. Students can
bring in recipes or search online. They will need to determine quantities based on their recipe and the # of cups they plan to sell. To
know how much things cost, they can take a trip to the grocery store, research online or check weekly newspapers. Discuss that they
may be able to borrow some items (ex. table).
- Teacher Resource: If it is not possible to do the above experiential steps you can use the Simple Lemonade Recipe and the
Advertising Circular included in this guide.
- Cost per cup: Based on the total expenses in Worksheet One, have the student compute the cost per cup (Total expenses/# of cups)
and enter in Worksheet Two in their workbook.
- Selling Price: Have the students decide what price they will sell their lemonade for and enter in Worksheet Two (a starting point could
be to divide the number of cups from above into their financial goal; they should also discuss whether it’s reasonable – do they think
people will pay that amount for lemonade).
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- Complete the remaining questions in Worksheet Two to compute profit per cup and how many cups they need to sell to meet their goal.
- Review: Have them compare the number of cups they need to sell to the number they estimated at the beginning. At this point, they
may need to adjust their budget so that they can plan to achieve their goal. If needed to reach their goal, they could adjust number of
cups sold, look for ways to reduce expenses or charge more for their lemonade. In deciding how to adjust their budget, they must also
look at other factors. If they decide to plan to sell more cups, is that number reasonable? If they decide to sell more cups, they may
need to increase their expenses to make more lemonade. If they decide to increase price, will people pay that amount? If these items
are not reasonable, they may need to adjust their financial goal.
PFL Extension: Sales Tax
- Create a class list of items that are eligible for sales tax and those that are not (most food is exempt).
- Demonstrate how to include sales tax in the total cost column of taxable items (multiply the total cost by 1.08).
- Technology Option (online at LemonadeDay.org): Guide students to complete the Planning and Budgeting tab on the Lemonade Day
Teen Spreadsheet.
Closure
- Announce to students that in the next lesson, they will have an opportunity to design their own advertisements so family, friends, teachers
and other community members will be informed of the date, time and location of their lemonade business. Explain that generating this sort
of interest is extremely important for any successful business.
- Students should bring materials such as markers, crayons, colorful paper and poster board(s) to the next lesson so they are prepared to
create their advertisements.
Suggested Readings
- My Life as an Entrepreneur – http://bit.ly/SUL8a
- Create a Budget – http://bit.ly/SUL8c
Internet Resources
- Game: Budget Odyssey – http://bit.ly/SUL8h
- Video: Biz Kids Season 1 episode 116 “Budgeting Basics” – http://bit.ly/SUL8j
- Video Biz Kids Season 1 episode 123 “Understanding Income and Expenses” – http://bit.ly/SUL8k
- Video: Biz Kids Season 2 episode 201 “Money Math” – http://bit.ly/SUL8l
- Game: Biz Kids – Games – http://bit.ly/TIYZGT
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10
HANDOUT
PLANNING & BUDGETING
Warm-up
Directions: Name as many famous local and national entrepreneurs as you can in the space provided below.
National & Local Entrepreneurs
Example: Oprah Winfrey, Founder of Harpo Studios and OWN Network
Example: Todd Graves, Founder, Chairman and CEO of Raising Cane’s Chicken Fingers
Key Terms: What is Profit?
Term
Profit
Prof • it
Definition
the money gained from
the sale or sales after expenses
are paid
Context
1. After subtracting the amount I
spent on ice, cups, and lemonade,
I calculated that I had made over
$75 in profit!
2. In order to meet my financial
goal I need to earn at least $15 in
profit per hour.
Show What You Know
Write one complete sentence using the term “profit.”___________________________________________________________
_______________________________________________________________________________________________
Planning for Your Business
1) What is the name of your lemonade stand? ________________________________________________________________
2) What are your hours of operation? ______________________________________________________________________
3) What are some possible locations for your stand? ____________________________________________________________
4) If you plan to have a business partner, how will you split your profits? ______________________________________________
5) If you plan to have employees, how much will you pay them? ____________________________________________________
11
Capital Equipment and Consumables
There are two types of supplies you will need for your lemonade stand. Supplies that you can use over and over again are called Capital
Equipment. Supplies that you use once, then you have to buy more are called Consumables.
Directions: Label each of the following items as Capital Equipment or Consumables
1) _______________ Hand Sanitizer 2) _______________ Mixing Spoon 3) _______________ Chairs
4) _______________ Paper Cups
5) _______________ Ice Chest
6) _______________ Tape
Budgeting for Supplies
Directions: Complete the sample budget below by multiplying the quantity times the cost per unit to arrive at the total cost for each item.
Then add all the costs together to get a total for each supply category.
Consumables
Quantity
unit cost
Lemons
40
$0.49
Sugar
3 Bags
$1.49
Water
4 Gallons
$1.25
Ice
2 Bags
$1.29
Napkins
5 Packs
$1.07
Total Cost
Total Cost for Consumables (U) $_________________
Capital
equipment
Quantity
unit cost
Pitcher
1
$2.50
Tip Jar
1
$1.07
Table
1
Borrow from home
Cash Box
1
$5.50
Total Cost
Total Cost for Capital Equipment (A) $_________________
Total Supplies (U+A=S) $_________________
What supplies are missing from the list above?
___________________________________________________________________________________________________
___________________________________________________________________________________________________
____________________________________________________________________________________________________
12
My Lemonade Day Business Plan
_________________________________________________________________________________________
Name of your business
I/We will sell: (different sizes/types of lemonade or other products)
Item 1. ______________________________________ for $ ______________ (profit per unit sold $ ______________)
_______________________________________________________________________________________
Location
Hours of Operation: ________:_________ to ________:_________
_________________________________________________________________________________________
I/We will fund the business by
(If applicable) I/We borrowed $___________ to start this business.
I/We will advertise and attract customers to our business by:
Method 1: ________________________________ Method 2: _______________________________________
If we sell _______________ of _______________, _______________ of _______________, ______________ of
(# of item 1)
(item 1)
(# of item 2)
(item 2)
(# of item 3)
_______________ and _______________ of _______________, we will earn a total of $______________ (gross revenue).
(item 3) (# of item 4)
(item 4)
After paying expenses of $________________, I/we make a profit of $_______________.
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I/We will use our money to:
Buy ________________________________________________________________________________,
(Spend some – your goal item(s)
save for _____________________________________________ and donate to ______________________.
(Save some at the bank for the future)
(Share some with a charity)
My/Our business is different from other lemonade stands because:
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
14
The
Lemonade Day
Times
Lemons
4/$1
Tip Jar
1/$5
Paper Towels
6/$10
Stand
1/$75
Sugar
5 lb./$3
Pitcher
1/$10
Trash Bags
1 box/$6
Signs
1/$20
Ice
1 bag/$2
Cups
50/$3
Hand Sanitizer
1/$2
Ice Chest
1/$40
Strawberries
1 lb./$4
Napkins
200/$3
Gloves
1 box/$8
Money Box
1/$12
15
Lesson Three:
Finding an Investor, Site
Selection & Advertising
Objectives
- Students will be able to define the term investor.
- Students will be able to identify and secure an investor for their
lemonade business.
- Students will be able to identify and select a location for their lemonade stand.
- Students will be able to develop an advertising plan for their lemonade business.
- Students will be able to create an advertisement to market their lemonade business.
Materials & Set-Up
- Writing utensil
- Entrepreneur Workbook: Finding an Investor, Site Selection, Advertising
- Lesson 3.1 Worksheet: Finding an Investor, Site Selection, Advertising
- Student Resource: Advertising Template (extra copies of the advertising template might be helpful)
- Technology Option (see Teacher Resources at LemonadeDay.org): Lemonade Day Teen Spreadsheet
- Lesson 3.2 Worksheet: Exploring the Cost of Borrowing
- Lesson 3.3 Worksheet: Using Incentives
- Markers, crayons, colored paper, poster board (students should bring their own)
- 8” X 11” white paper for students who are unable to bring materials, or any creative materials you have available
Key Terms
- Advertising: everything that you do to tell customers about your business or product
- Interest: a charge for borrowed money; generally a percentage of the amount borrowed
- Investor: a person who lends money in order to earn a financial return
- Loan: a thing that is borrowed, especially a sum of money that is expected to be paid back with interest
Spiraling terms from previous lessons
• E ntrepreneur: a person who starts a business assuming the risk for the purpose of making a profit
• Goal: the specific task or target a person aims to achieve
• Profit: the money gained from the sale or sales after expenses are paid
warm-up:
Objective: SWBAT recall their key terms.
- Ask students to think of one sentence using the words “Entrepreneur” and “Profit.”
- Prompt students to turn to their partner and share their sentence.
Activity 1: Defining Investor
Objective: SWBAT define the term investor.
- Prompt students to follow along on the Key Terms: What is an Investor? section on their Lesson 3.1 Worksheet: FINDING AN INVESTOR,
SITE SELECTION & ADVERTISING.
- Prompt students to turn to their partner and share in their own words what they think this definition means.
- Call on students to share their understanding with the class.
16
Activity 2: Getting an Investor
Objective: SWBAT identify and secure an investor for their lemonade business.
- Explain to students that if they need money to start their business, they will need to ask an investor for a loan.
- Prompt students to refer to their budget worksheets in the workbook to review the amount they will need to borrow.
Identifying an Investor
- Prompt students to locate the Finding an Investor section on their worksheet.
- Prompt students to list three people they could ask to be their investor.
Securing an Investor
- Prompt students to locate the Securing an Investor section on their worksheet. Discuss the importance of an “elevator speech” – a
brief statement about your business and why it’s special; called an elevator speech or pitch because it should last no longer than the
average elevator ride.
- Prompt students to answer questions 1-5 in the Investor Role Play on their worksheet.
- Prompt students to turn to their partner and role play, giving each partner an opportunity to be both the investor and the entrepreneur.
- Circulate and give feedback as needed.
PFL Extension: Credit Report, Net Worth Statement, Cost of Credit
- Students will create a portfolio to present to the investor. The following resources will be included in the portfolio:
- Credit Report
- Introduce students to credit scores (range 350 to 850): Excellent Credit (720 and above), Good Credit (660 to 719), Fair Credit (620
to 659), Poor/Bad Credit (619 and below).
- Guide students to use the Credit Report tab on the Lemonade Day Teen Spreadsheet (online at LemonadeDay.org) to determine their
interest rate based on their credit score. Note: Maximum borrow amount is $500.
- Net Worth Statement
- Introduce students to net worth statements and how they are calculated (assets – liabilities).
- Guide students to use the Net Worth tab on the Lemonade Day Teen Spreadsheet (online at LemonadeDay.org) to determine their
Net Worth Statement.
- Prompt students to complete Lesson 3.2 Worksheet: EXPLORING THE COST OF BORROWING on page 23 of the Teacher’s Guide to
explore the cost of borrowing. Then have students estimate their total repayment based on the interest rate determined by their
credit report.
- Prompt students to turn to the Finding an Investor section of their Entrepreneur Workbook. Have them complete the
Business Loan Agreement.
Activity 3: Site Selection
Objective: SWBAT identify and select a location for their Lemonade Stand.
- Explain to students that choosing a location is one of the most important elements of a successful business.
Remember Location, Location, Location!
- Prompt students to locate the Choosing a Location section of their worksheet on page 2 of Lesson 3.1 Worksheet: FINDING AN
INVESTOR, SITE SELECTION & ADVERTISING.
- Read aloud the information including the questions to ask when choosing a location.
- Explain to students that safety is extremely important for not only the entrepreneur but also for the customers.
- Remind students that places like grocery stores or malls will require them to get permission beforehand.
- Prompt students to list the location they would like to place their stand.
17
Activity 4: Advertising
Objective: Students will be able to develop an advertising plan and create an advertisement to market their Lemonade Stand.
- Prompt students to turn to the Advertising section of their Entrepreneur Workbook.
- Explain to students that advertising is an important way to get people to notice their business.
- Read aloud Ideas to Attract Customers.
- Ask students to circle at least three ideas they will use to generate interest in their business.
- P rompt students to locate the Advertising section of their Lesson 3.1 Worksheet: FINDING AN INVESTOR, SITE SELECTION &
ADVERTISING.
- Instruct students to be creative as they design an advertisement for their business that is neat, correctly spelled, colorful
and attention grabbing.
PFL Extension: Offering Monetary Incentives
- Discuss how monetary incentives can attract potential customers. Ask students to bring incentive coupons to class.
- Prompt class to make a list of incentives that could be used to attract potential customers with coupons. Examples include:
ad for senior discounts; ad for reduced amount for children under the age of 5; coupon for $0.25 off; coupon for buy one, get
one free
- Prompt students to select one incentive and decide how many coupons they will make available.
- Prompt students to complete Lesson 3.3 Worksheet: USING INCENTIVES on page 24 of the Teacher’s Guide.
- Students will then calculate how much they would earn on the sale of their lemonade with the coupons and without the coupons.
- Student will explain why they will or will not use incentive coupons.
Closure
- Ask students to look over their budget in their Entrepreneur Workbook and add interest cost, if applicable, and adjust advertising
costs based on their advertising plan if necessary.
- Challenge students to tell their friends, family and teachers the date, location and hours of operation for their lemonade business.
- Tell students to handout copies of their advertisement so that people remember when to visit their lemonade stand.
SUGGESTED READINGS
- Article: Raising Capital – Friends, Families and Fools (yea) – http://bit.ly/SUL12a
INTERNET RESOURCES
- Activity: Spread the Word, Design a Flyer (all terrain brain) – http://bit.ly/SUL12b
- Activity: Don’t Buy It! – http://to.pbs.org/SUL12c
- Video: Biz Kids Season 1 episode 206 “The Art of Negotiation” – http://bit.ly/SUL12d
- Video: Biz Kids Season 1 episode 211 “The Marketing Mix” – http://bit.ly/SUL12e
- Game: Smart Money Quiz Show – http://bit.ly/SUL12f
18
HANDOUT
FINDING AN INVESTOR, SITE SELECTION & ADVERTISING
Key Terms: What is an Investor?
Term
Investor
In • vest • or
Definition
a person who lends money in order to
earn a financial return
Context
1. I didn’t have enough money to start
my business so I got an investor who
loaned me the money I needed.
2. My investor and I agreed that I repay
the amount she loaned me plus 10%
interest.
Finding an Investor
An investor is important because you need money to start your business. Parents, Guardians and Caring Adults make great investors!
List three people you could ask for a loan to start your lemonade business:
_______________________________
_______________________________
_______________________________
Securing an Investor
In order to get an investor you have to get them excited about your business! You have to make them believe in your ideas so that they feel
comfortable letting you borrow money. Think about you should include in your “elevator speech”(a brief statement about what your business
does and why it’s special).
Investor Role Play
Practice what you’ll say to an investor by role playing with a partner, using the following sentence starters
(answer the questions before practicing):
1) You should invest in my business because ________________________________________________________________
2) What will make my stand different is ____________________________________________________________________
3) Your loan will help me reach my goal of ___________________________________________________________________
4) I will work hard to earn the money to pay you back by _________________________________________________________
5) If I am unable to repay my loan and interest, I will __________________________________________________________
19
Choosing a Location
Location is everything when it comes to running a successful business. It’s all about thinking of where there will be a lot of people who will
want to buy your product. Refer to your Entrepreneur Workbook, Site Selection section for a helpful map that will give you ideas as to where
to place your lemonade stand. What are the best locations in your community for putting your lemonade stand?
Questions you should ask yourself when choosing a location:
- Where will there be a lot of people?
- Where will there be a lot of thirsty people?
- Where will there be a lot of people with money?
- Where is a place that people can easily see?
- Do I need to get permission to sell there?
- Is this a safe location for my customers and me?
In the space below, sketch your neighborhood, or the area where you want to have your lemonade
stand. Make note of intersections, parking lots, parks and places where people congregaTE.
Where would you like to place your stand?
_______________________________________________________________________________________________
20
Sunday, May
9 AM-
12 PM
6, 2013
21
In the space below sketch out your stand flyer
__________________________________________________________________________________________
(name of your business)
_________________________________________________________________________________________
(description of your product)
__________________________________________________________________________________________
(location)
______________________________________________________________________ ___________________
(day and date)
(hours)
______________________________________________________________________ ___________________
(other information-fun and important)
(price of lemonade)
_________________________________________________________________________________________
(your name)
Hint: Give your flyer to your mentor to run copies, or transfer the same design to other paper or poster boards!
22
HANDOUT
EXPLORING THE COST OF BORROWING
Part I
Directions: In the Planning & Budgeting section of your workbook, you estimated how much money you will need for your Lemonade Stand.
Use this amount to answer the questions below.
How much money do you plan to borrow? _______________________________________________________
How many months will you have the borrowed money before you repay your investor? _________________________
Based on your credit rating, what is the interest rate you should pay for your loan? ___________________________
How many payments will you make to repay your investor? ___________________________________________
Part II
Directions: Complete the table below using the ONLINE CALCULATOR to explore how the amount of a loan, the interest rate and the length
of the loan affect the payback amount. Then use the last three lines to estimate your actual loan based on your budget, credit rating and
length of loan.
The link for an online calculator is http://math.about.com/library/blcompoundinterest.html
Principal
Amount borrowed
Rate
Years
(months)
Total amount
to repay
Amount of interest
$200
2.5
6 months
$
$
$200
3.5
6 months
$
$
$200
4.5
6 months
$
$
$300
2.5
6 months
$
$
$300
3.5
6 months
$
$
$300
4.5
6 months
$
$
$800
2.5
3 months
$
$
$800
3.5
3 months
$
$
$800
4.5
3 months
$
$
Use the information from the table to complete your “Lemonade Day Business Loan Agreement.”
23
HANDOUT
Lemonade Day Lesson 3.3: USING INCENTIVES
Directions: In the space below, design your coupon to advertise and attract potential customers.
1. How much will one glass of lemonade cost for a customer who uses the coupon? _______________
2. How many coupons will you make? ________________
3. How much money would you make on the number of glasses in question 2 if
a. you sell that number of glasses at the regular price? _______________
b. you sell that number of glasses of at the coupon price (#1) _______________
4. Will you use a coupon to try to attract potential customers? Why or why not?
_______________________________________________________________________________________________
_______________________________________________________________________________________________
24
Lesson Four:
Building a Stand
Objectives
- Students will be able to identify elements of a successful lemonade stand.
- Students will be able to plan their stand design as they prepare to build their
lemonade business.
Materials & Set-Up
- Writing utensil
- Entrepreneur Workbook: Building a Stand
- Lesson 4.1 Worksheet: Building a Stand
Key Terms
- Achievement: a goal accomplished by hard work, skill and determination
- Success: favorable or desired outcome
Spiraling terms from previous lessons
• Entrepreneur: a person who starts a business assuming the risk for the
purpose of making a profit
warm-up:
- Prompt students to begin the warm-up on their Lesson 4.1 Worksheet: BUILDING A STAND.
- Let students know that many kids who have used simple card tables with plastic tablecloths have been as successful as kids who used
custom lemonade stands built of wood. The most important thing is to make sure your lemonade stand is sturdy and safe.
- Let students know that today they will be learning about the elements of a successful lemonade stand.
Activity 1: Elements of a Successful Stand
Objective: SWBAT identify elements of a successful lemonade stand.
- Read the following prompt to students, “Imagine it is Lemonade Day! Rather than imagining this as an entrepreneur, imagine that you
are a customer. What is it about a lemonade stand that will attract your attention and make you want to spend your money there? You
may only have one chance to make a good impression on your potential customers. Let’s learn about the elements of a successful stand,
so that you can maximize your profit and achieve your financial goal!”
- Call on students to read aloud the Elements of a Successful Stand in the chart located on their worksheet.
- Answer question 1 under Show What You Know together as a class, see answer key below.
- Prompt students to answer questions 2-3 together with their partner.
- Prompt students to answer question 4-5 silently and independently.
Assessment:
- Students answer questions 4-5 silently and independently (Show What You Know, Lesson Four, page 1).
- Call on students to share their answers with the class.
ANSWER KEY
Lesson 4: Show What You Know
1) Cleanliness/Organization 2) Theme 3) Signs 4) Visual Appeal 5) Uniqueness
25
Activity 2: Building Your Own Successful Stand
Objective: SWBAT plan their stand design as they prepare to build their lemonade stand.
- Ask students to locate Building Your Own Successful Stand on page 2 of their worksheet. Read the directions aloud.
- Model providing example responses for the first element, Theme. Use your own student generated examples or refer to the Example
Worksheet that follows below.
- Provide copies of the Example worksheet for students to reference if you feel it is necessary.
- Prompt students to begin working on their plan. Allow partners to work together.
- Call on students to share their ideas with the class and use this time to brainstorm collaboratively to provide suggestions for students
who need ideas.
Closure
- Remind students that Lemonade Day is approaching! Students should begin working to gather their stand materials.
- Remind students that their stand must be safe and sturdy.
- Ask students to look over their budget in their Entrepreneur Workbook and ensure they add stand costs to their budget.
EXAMPLE “BUILDING A SUCCESSFUL STAND”
Your plan for including the element in your stand
Element
Purchase, borrow
or already have?
Theme
In the 3R Club at school, we reduce, reuse and recycle. My stand theme will be
Eco-Friendliness. I will wear my 3R Club t-shirt.
- 3R club t-shirt
Uniqueness
All my serving materials (cups and napkins) will be 100% recyclable.
I’ll add green food color to my lemonade, to remind people to go green.
I’ll offer a free cup of lemonade to people on bikes since they are eco-friendly
commuters.
- Recyclable cups
Purchase
and napkins
- Natural green food Purchase
coloring
Signs
The name of my stand will be Green Lemonade.
The price for my lemonade will be $1 per cup.
A portion of my profit will benefit the 3R Club at my school.
- Poster board
Purchase
- Markers
Already have
My stand will be bright with a green table cloth and yellow balloons.
- Green table cloth
- Yellow balloons
Borrow (Mom)
Purchase
- Recycling bin
Borrow (3R Club)
Visual Appeal
Cleanliness/
My stand will have a recycling bin for customers to dispose of their cups and
Organization napkins after enjoying their lemonade.
Internet Resources
Wooden Lemonade Stands:
- http://bit.ly/SUL18a
- http://bit.ly/SUL18b
- http://bit.ly/SUL18c
- http://bit.ly/SUL18d
Cardboard Lemonade Stands:
- http://bit.ly/SUL18e
Portable Lemonade Stands:
- http://bit.ly/SUL18f
- http://bit.ly/SUL18g
Other Lemonade Stands:
- http://bit.ly/SUL18h
26
List the items
you will need
Already have
HANDOUT
BUILDING A STAND
Warm-up
What things might you already have at home or what things could you borrow or buy to use as the base of your lemonade stand? Circle the
type of stand you would like to use from the options below. Remember your stand must be sturdy and safe.
Table
Cardboard box stand
Portable stand (i.e. red wagon or wooden pushcart)
Plywood stand
Other _________________
Elements of a Successful Stand
Theme: Allow your personality, interests or identity to be the basis for your stand design and operation.
Uniqueness: Make it clear to your customer that your stand is different than other stands by letting
them know what ingredients or special elements they can expect when buying your product.
Signs: Signs should be hung neatly, easily readable from a long distance (use large print) and include:
Name of Business, Price, Charity/Cause, Hours of Operation (optional).
Visual Appeal: Draw your customer’s attention by making your stand colorful, creative and
eye-catching.
Cleanliness/Organization: Any display, product or supplies should be clean, presentable and
well organized.
Show What You Know
Directions: Read each of the following scenarios and answer the question that applies.
1) Sam’s stand lost 12 potential customers because Sam’s table cloth was stained and had holes in it.
- What element of success was Sam missing?
______________________________________________________________________________________________
2) Jose’s stand attracted 34 customers because he let his customers know how much he loved soccer by designing his stand within a
soccer goal, hanging soccer balls around his stand and wearing his soccer uniform. Many of his customers liked soccer too!
- What element of success did Jose have?
______________________________________________________________________________________________
3) Maya’s stand attracted 31 pet-loving customers because her large stand sign let customers know that she was donating a portion of her
profits to a local animal shelter.
- What element of success did Maya have?
______________________________________________________________________________________________
4) Amanda’s stand lost 18 customers who said they didn’t notice her stand as they entered the grocery store.
- What element of success was Amanda missing?
______________________________________________________________________________________________
5) Devon’s stand attracted 47 customers who bought his lemonade because they were on a diet and noticed that his lemonade was sugar-free.
- What element of success did Devon have?
______________________________________________________________________________________________
27
Building Your Own Successful Stand
Directions: It’s time to brainstorm and make some decisions on how you plan to make your own lemonade stand a success! Fill in
the chart below; refer back to descriptions of Elements of a Successful Stand if necessary.
Element
Theme
Uniqueness
Signs
Visual Appeal
Cleanliness/
organization
28
Your plan for including the element in your stand
List the items
you will need
Will you purchase,
borrow or do you
already have?
Objectives
- Students will be able to assess cost-effectiveness when making
supply purchases
- Students will be able to plan for making healthy lemonade.
Lesson Five:
Purchasing & Making
Healthy Lemonade
Materials & Set-Up
- Writing utensil
- Entrepreneur Workbook: Purchasing & Making Healthy Lemonade
- Lesson 5.1 Worksheet: Purchasing & Making Healthy Lemonade
- Technology Option ( See Teacher Resources at LemonadeDay.org):
Purchasing Comparison Spreadsheet
Key Terms
- Expenses: all costs related to a business
warm-up
- Allow students to discuss a time they had purchased something from a restaurant that didn’t taste good or a time they found their dish was dirty.
- Ask students if they ever went back to that restaurant.
- Explain to students that no one wants to buy lemonade that doesn’t taste good, is warm, or worse, served in a dirty cup
Activity 1: Purchasing
Objective: SWBAT assess cost-effectiveness when making supply purchases.
- Ask students to locate the Purchasing section in their workbook. In this lesson, students will select the Lemonade Recipe they will use
for their Lemonade Day and purchase the items needed for the lemonade and other stand supplies.
- Explain to students that as entrepreneurs they will need to make smart financial decisions when purchasing supplies for their
lemonade businesses, so that you can minimize costs and maximize profit.
PFL Extension: Monetary Incentives - Purchasing Comparison (Technology Option)
- Students will create a Purchasing Comparison Spreadsheet (online at LemonadeDay.org) to use to identify the most economical
decisions when purchasing materials and supplies for their project.
- Students will use the weekly advertisements from two stores to compare materials they will use for their Lemonade Day Project.
- As an alternative, students can make a list of materials and visit two different stores to get costs of the materials to enter into the
spreadsheet.
- Instruction for spreadsheet:
In column A, enter a description of the item.
In column B, enter the cost per item.
In column C, enter the monetary amount of the coupon. The spreadsheet will then calculate the reduced cost in column D.
In column E, enter the quantity. The spreadsheet will then display the subtotal in column F.
If the item is taxable, enter the subtotal amount in column G. If it is not taxable, enter 0 or leave it blank. The tax amount
will be displayed in column H calculated at 8.25% and the total of cost of the item will be displayed in column J.
- Sample calculations for a non-taxable item and for a taxable item are given in the spreadsheet (online at LemonadeDay.org).
- After making comparisons, ask students if there are other considerations such as size of purchase or distance to stores that might
affect their decisions where they purchase their materials and supplies.
•
•
•
•
•
Purchasing (Lesson 5.1 Worksheet: PURCHASING & MAKING HEALTHY LEMONADE)
- Prompt students to answer questions 1-5 on their purchasing worksheets by deciding which size and package of cups is the best
value based on how many cups they want to sell.
For question 2 they’ll need to calculate total cost per pack by multiplying the number of cups by price, and total number of
ounces of lemonade they would need to fill the pack of cups by multiplying the number of cups by size; answers should be
recorded in the corresponding chart location.
- Allow students to share their responses with the class, give feedback if necessary.
•
29
Activity 1: Purchasing (continued)
Budget vs. Actual
- For this lesson, students will need their store receipts for grocery items and other stand supplies. Note: If students did not visit a
store, (1) Student could use an online grocery store site or weekly ads, or (2) teacher could obtain actual prices for the items by visiting a grocery store and provide them to students.
- Prompt students to turn to the Budgeting Lesson on pages 4 and 5 in their workbook. Students will update Worksheet One and Two
with actual numbers. Ask them to write the actual total cost for each item purchased and compute total actual supplies.
- Ask students to compare the actual total to the budgeted total.
- Prompt students to reflect on their financial goal by asking the questions below
• Were the actual expenses greater or less than expected?
• Can you still meet your financial goal based on the price you plan to sell your lemonade for?
• What adjustments do you need to make?
• If the actual expenses were greater than the budgeted expenses, will you have to raise the price per cup?
• If you raise your price per cup, do you think customers will purchase the lemonade?
• Do you need to adjust your financial goal?
• Do you have money reserved for emergency expenses?
- With the new information, have the students write any revisions to their financial goal, price of their lemonade per serving and the
number of cups they need to sell to meet the goal.
Assessment
- Ask students to defend their rationale in deciding on which product they would purchase. Ensure students grasp the concept of
having to consider cup size and total amount of product (ounces) that would be needed for various cups.
- Ensure students grasp the concept of having to reevaluate their product price based on supply costs per unit.
Activity 2: Making Healthy Lemonade
Objective: SWBAT plan for making healthy lemonade.
- Prompt students to locate the Making Healthy Lemonade section of their Entrepreneur Workbook.
- Read aloud the Sanitation and Safety Tips.
- Prompt students to answer the questions in the Making Healthy Lemonade section of their worksheet.
- Allow students to share their responses with a partner.
CLOSURE
- Tell students that now is the time to update recipes in preparation for Lemonade Day.
- Challenge students to conduct a taste test at home to determine the best recipe to use for their lemonade business.
- Remind students to update costs and expenses on their budget worksheet as they prepare for Lemonade Day.
Suggested Readings
- Ten Lemonade Recipes – http://aol.it/SUL21a
- Best Lemonade Recipes from Food Network – http://bit.ly/SUL21b
Internet Resources
- Activity: Spending Smarts Word Search – http://to.pbs.org/SUL21c
- Activity: Managing Money Crossword – http://to.pbs.org/SUL21d
30
HANDOUT
Lemonade Day Lesson 5.1: PURCHASING & Making
healthy lemonade
Directions: As an entrepreneur you’ll need to make smart financial decisions when purchasing supplies to minimize expenses and maximize
profit. To think through purchasing decisions, complete the following to discover which size and package of cups is the best value. Value is
not just the least expensive product, but the product with qualities that meet your needs. Calculate total cost per pack (multiply number of
cups by price) and total number of ounces of lemonade you would need to fill the pack of cups (multiply number of cups by size), write your
answers in the corresponding chart location.
PLASTIC
CUP
PAPER
CUP
STYROFOAM
CUP
Number of cups per pack
50 count
75 count
25 count
Size
18 oz.
16 oz.
16 oz.
Price per pack
$3.99
$5.80
$2.60
Total cost per cup
Total number of ounces of lemonade
(supply) I would need to fill these cups
Elements of a Successful Stand
1) Look back at your budget, how many cups of lemonade do you need to sell to meet your goal? ___________
2) Which pack of cups would you choose for your lemonade business? Circle one: A B C
3) How many packs would you purchase in order to meet your goal? _______________
4) What would your total costs be for your purchase? _______________
5) Considering your total costs, do you need to reconsider the price you charge per cup so that you make enough profit to meet your goal?
_________________
Making Healthy Lemonade
Directions: Answer the following questions based on how you plan to operate your lemonade stand.
1) What is your plan for hand washing and hand sanitization? _____________________________________________________
2) How will you make sure the person handling the money doesn’t handle the lemonade? ___________________________________
3) What is your plan for trash disposal while your business is operating? ______________________________________________
4) How will you keep your equipment clean? _________________________________________________________________
5) Where will you store ice? _____________________________________________________________________________
6) What materials will you have in case of spills? ______________________________________________________________
7) Do you plan to post the ingredients in your lemonade? _________________________________________________________
31
Lesson Six:
Setting Up & Running
Your Business
Objectives
- Students will be able to prepare for setting up their lemonade stands.
- Students will be able to demonstrate effective practices of business operation.
- Students will be able to count up when making change for a purchase.
Materials & Set-Up
- Writing utensil
- Entrepreneur Workbook: Setting Up & Running Your Business
- Teacher Resource: Making Change Cards for Students and Solutions to cards
- Teacher Resource: Customer Service Scenarios
- Scissors (cut customer service scenario strips)
- Mock lemonade stand (optional)
- Basic student desk, cups, items representing ice (such as coins), napkins, fake money
warm-up
- Ask students if they have failed a test in school because they were not prepared.
- Explain that business works like that too! If you don’t plan and prepare, your business may suffer the consequences.
Activity 1: Setting Up
Objectives SWBAT prepare for setting up their lemonade stands.
- Ask students to locate the Setting Up section of their Entrepreneur Workbook.
- Review the Things to Think About and Things I’ll Need lists.
- Prompt students to check off supplies they have and circle items they need.
ACTIVITY 2: MAKING CHANGE
Objective: SWBAT count up when making change for a purchase.
- In the Setting Up section of the Entrepreneur Workbook, “Just a few more questions to think about,” one of the questions is
“Do you know how to make change?” Discuss the importance of giving the correct change.
- Show the YouTube video about Counting Up to Make Change to the class. http://bit.ly/SvxBO4
- Students will practice making change by using the counting-up method as demonstrated in the video through a role-playing game.
- Print one copy of Making Change Cards on pages 34-36 of the Teacher’s Guide. Then cut out the cards.
- The game uses a set of cards with each card having an answer and a problem.
- Shuffle the cards and then give one to each student. All cards must be distributed. Each student will be given a card with a
problem on the bottom and an answer at the top. The answer at the top of the card is not the answer to the problem on the
bottom of the card, but rather another problem in the set of cards.
- When the students receive their card, they will calculate and record on their card how much change they should receive; what
coins and dollars they should receive; and how much the amount of change is at the top of their card. The amount of change
at the top of the card will not match the amount of change their problem.
- Select one student to begin.
- Student 1 reads the problem at the bottom of their card and reads the question “Who has the correct change for…?
- Student 2 has a card with the correct amount of change at the top of his/her card. They then give Student 1 the answer by
“counting up the correct change” in the manner described in the video.
- Student 2 then reads the problem at the bottom of his/her card and reads the question “Who has the correct change for…?
- Student 3 replies with the correct amount of change and counts up to describe the correct amount of change.
- The problems and answers continue in “relay” manner until everyone has had a chance to read their problem and count up
the correct amount of change.
- Solutions to Making Change Cards follow the student cards.
32
Activity 3: Running Your Business Objective: SWBAT demonstrate effective practices of business operation.
- Ask students what good customer service is. Replies may vary but generally look for fast and polite service.
- Ask students to locate the Running Your Business section of their Entrepreneur Workbook; review Providing Great Customer
Service.
- Explain to students the object of the activity is to demonstrate great customer service at all times.
- Using the Customer Service Role Play Scenarios, each student will role play as an entrepreneur and as a customer.Divide the class into two even groups (Group A and Group B); Group A should line up behind the mock lemonade stand
(entrepreneurs) and Group B should line up in front of the mock lemonade stand (customers).
- Distribute a customer service scenario strip to each member of Group B.
- Allow each student from Group B to read their part and each student from Group A to respond.
- Allow groups to switch roles once all students have gone (collect and re-distribute the scenario strips).
- Provide feedback to each entrepreneur, modeling appropriate or improved responses if necessary.
Closure
- Do a quick whip around asking students to state their Lemonade Day goal.
- Review the Lemonade Day Business Results Form and remind students to keep track of the information they’ll need to complete it;
mention to students they have a chance to win cool prizes if they complete and submit the online form located on their city’s Lemonade
Day website. They will need this information to successfully determine if they met their goals.
- Tell students that setting up and running a business involves a lot of little details. Assure students they have learned the basics of
business and are ready for Lemonade Day. Good luck!
Internet Resources
- Video: Biz Kids Season 1 episode 122 “Sell, Sell, Sell” – http://bit.ly/SUL23a
- Game: Change Maker – http://bit.ly/THtmya
- Game: Making Change – http://bit.ly/11OSesM
- Game: Making Change – http://bit.ly/THu5iS
33
HANDOUT
Lesson Six: Making Change Cards
34
1. I have two pennies, one nickel, one quarter, two $1 bills, and
one $10 bill.
How much is this amount of money? _______________
5. I have four pennies, one nickel, one dime, two quarters, three
$1 bills, and one $20 bill.
How much is this amount of money? _____________
Problem: Max bought school supplies that cost $2.35.
He gave the cashier $5. Who has the correct change
he should receive?
Problem: LaKeisha bought a new winter sweater for $34.82.
She gave the clerk $40. Who has the correct change she should
receive?
2. I have one nickel, one dime, two quarters, two $1 bills
6. I have three pennies, one nickel, one dime, and one $5 bill.
Problem: Sarah purchased a new purse at the Outlet Mall.
The total cost of the purse was $23.48. She gave the cashier $25.
Who has the correct change she should receive?
Problem: Gabrielle paid $7.65 for a bracelet. She gave the
clerk a $20 bill. Who has the correct change that Gabrielle
should receive?
3. I have two pennies, two quarters, and one $1 bill
7. I have one dime, one quarter, two $1 bills and one $10 bill.
Problem: Roy went to the movie and purchased popcorn and a
drink. With tax he paid $9.88. He gave the cashier a
$20 bill. Who has the correct change Roy should receive?
Problem: Mike Lee bought a new cowboy hat. He paid $50.89
for the hat. He gave the clerk $60. Who has the correct amount
of change Mike should receive?
4. I have two pennies, one dime, and one $10 bill.
8. I have one penny, one dime, four $1 bills, and one $5 bill.
Problem: Marcello went to the game store and purchased two
games for $75.56. He paid for the games with $80. Who has
the correct change he should receive?
Problem: Kylie purchased some CDs at the discount store.
The CDs cost a total of $31.29. She gave the clerk $35. Who has
the correct amount of change Kylie should receive?
9. I have four pennies, one nickel, one dime, one quarter,and four
$1 bills. How much is this amount of money?_____________
14. I have one penny, two dimes, two quarters, and three $1 bills.
Problem: Molly purchased a pair of new shoes for $17.29,
including tax. She paid with a $20 bill. Who has the correct
change she should receive?
Problem: Koy bought a birthday present for his little sister. He spent
$9.57 on a doll. He gave the clerk a $20 bill. Who has the correct
amount of change Koy should receive.
10. I have one penny, two dimes, two quarters, and two $1 bills.
15. I have three pennies, one nickel, one dime, one quarter, and a
$10 bill. How much is this amount of money?_____________
Problem: Norma bought a hamburger, French fries, and a drink
for $5.87. She gave the cashier a ten-dollar bill. Who has the
correct change she should receive?
Problem: Kathy went to the bookstore and purchased 3 books.
She paid a total of $36.72 and gave the cashier a $50 bill.
Who has the correct amount of change Kathy should receive?
11. I have three pennies, one dime, and four $1 bills.
16. I have three pennies, one quarter, three $1 bills, and a $10 bill.
How much is this amount of money?_____________
Problem: Grant bought some pants and a belt. He paid the
$58.32 bill with three $20 bills. Who has the correct change
Grant should receive?
Problem: Lin went out to eat and spent $16.63 on his dinner.
He gave the waiter a $20 bill. Who has the correct amount of
change Lin should receive?
12. I have three pennies, one nickel, one dime, two quarters, and
17. I have two pennies, one dime, one quarter, and three $1 bills.
one $1 bill.
Problem: Roberto bought some new jeans. He paid $34.27 for
Problem: At the county fair Daniella purchased a corn dog and
the jeans and gave the clerk two $20 bills. Who has the correct
drink for $4.79. She paid with a $10 bill. Who has the correct
change Roberto should receive?
change Daniella should receive?
13. I have one penny, two dimes, one $5 bill.
18. I have three pennies, two dimes, two quarters, and one
$5 bill. How much is this amount of money?____________
Problem: Mario purchased a bouquet of flowers for his mother. Problem: Alexis paid $23.87 for some make-up and gave the
The bouquet costs $7.76 and he gave the florist $10. Who has the clerk a $20 bill and a $10 bill. Who has the correct change
correct change Mario should receive?
Alexis should receive?
35
19. I have four pennies, two dimes, and two $1 bills.
How much is this amount of money? ____________
23. I have three pennies, one dime, one $1, and one $5 bill.
How much is this amount of money?_____________
Problem: The circus was in town and Chan bought four
Problem: Angelina bought a gift for her mother for $25.86.
tickets and paid $88.24 including tax. He paid for the
She gave the cashier two $20 bills. Who has the correct
tickets with five $20 bills. Who has the correct change that
change Angelina should receive?
Chan should receive?
20. I have one penny, three quarters, one $1 bill, and
one $10 bill.
How much is this amount of money?____________
24. I have four pennies, one dime, four $1 bills, and
one $10 bill.
Problem: Elita spent $13.67 on a pair of earrings. She gave
the clerk a $20 bill. Who has the correct change that Elita
should receive?
Problem: Salma bought a birthday cake. The total cost of
the cake was $16.59. She gave the cashier a $20 bill.
Who has the correct change Salma should receive.
21. I have three pennies, one nickel, one quarter, one $1,
and one $5 bill.
25. I have one penny, one nickel, one dime, one quarter, and
three $1 bills.
How much is this amount of money?____________
Problem: Amos purchased some food for his pet turtle.
He spent a total of $6.47. He gave the clerk a $20 bill.
Who has the correct change that Amos should receive?
Problem: Chris purchased a western shirt for the rodeo.
The total cost of the shirt was $43.79. He gave the clerk a
$50 bill. Who has the correct change Chris should receive?
22. I have three pennies, two quarters, three $1 bills, and
26. I have one penny, two dimes, one $1 bill, and one $5 bill.
one $10 bill.
Problem: Rose needed a new coat. The total cost of the coat
Problem: Nancy bought a ticket to a concert. The total cost of
was $87.68. She gave the clerk a $100 bill. Who has the
the ticket was $76.31. She paid for the ticket with a $100 bill.
correct change Rose should receive?
Who has the correct change Nancy should receive?
36
Lesson Six: Making Change Cards solutions sheet
1. I have two pennies, one nickel, one quarter, two $1 bills, and one $10 bill. How much is this amount of money? $12.32
Problem: Max bought school supplies that cost $2.35. He gave the cashier $5. Who has the correct change he should receive? $2.65
2. I have one nickel, one dime, two quarters, two $1 bills. How much is this amount of money? $2.65
Problem: Sarah purchased a new purse at the Outlet Mall. The total cost of the purse was $23.48. She gave the cashier $25. Who has the
correct change she should receive? $1.52
3. I have two pennies, two quarters, and one $1 bill. How much is this amount of money? $1.52
Problem: Roy went to the movie and purchased popcorn and a drink. With tax he paid $9.88. He gave the cashier a $20 bill. Who has the
correct change Roy should receive? $10.12
4. I have two pennies, one dime, and one $10 bill. How much is this amount of money? $10.12
Problem: Marcello went to the game store and purchased two games for $75.56. He paid for the games with $80. Who has the correct change
he should receive? $4.44
5. I have four pennies, one nickel, one dime, two quarters, three $1 bills, and one $20 bill.
How much is this amount of money? $23.69
Problem: LaKeisha bought a new winter sweater for $34.82. She gave the clerk $40. Who has the correct change she should receive? $5.18
6. I have three pennies, one nickel, one dime, and one $5 bill. How much is this amount of money? $5.18
Problem: Gabrielle paid $7.65 for a bracelet. She gave the clerk a $20 bill. Who has the correct change that Gabrielle should receive? $12.35
7. I have one dime, one quarter, two $1 bills and one $10 bill. How much is this amount of money? $12.35
Problem: Mike Lee bought a new cowboy hat. He paid $50.89 for the hat. He gave the clerk $60. Who has the correct amount of change Mike
should receive? $9.11
8. I have one penny, one dime, four $1 bills, and one $5 bill. How much is this amount of money? $9.11
Problem: Kylie purchased some CDs at the discount store. The CDs cost a total of $31.29. She gave the clerk $35. Who has the correct
amount of change Kylie should receive? $3.71
9. I have four pennies, one nickel, one dime, one quarter, and four $1 bills. How much is this amount of money? $4.44
Problem: Molly purchased a pair of new shoes for $17.29, including tax. She paid with a $20 bill. Who has the correct change she should
receive? $2.71
10. I have one penny, two dimes, two quarters, and two $1 bills. How much is this amount of money? $2.71
Problem: Norma bought a hamburger, French fries, and a drink for $5.87. She gave the cashier a $10 bill. Who has the correct change she
11. I have three pennies, one dime, and four $1 bills. How much is this amount of money? $4.13
Problem: Grant bought some pants and a belt. He paid the $58.32 bill with three $20 bills. Who has the correct change Grant should
receive? $1.68
12. I have three pennies, one nickel, one dime, two quarters, and one $1 bill. How much is this amount of money? $1.68
Problem: At the county fair Daniella purchased a corn dog and drink for $4.79. She paid with a $10 bill. Who has the correct change Daniella
13. I have one penny, two dimes, one $5 bill. How much is this amount of money? $5.21
Problem: Mario purchased a bouquet of flowers for his mother. The bouquet costs $7.76 and he gave the florist $10. Who has the correct
change Mario should receive? $2.24
37
14. I have one penny, two dimes, two quarters, and three $1 bills. How much is this amount of money? $3.71
Problem: Koy bought a birthday present for his little sister. He spent $9.57 on a doll. He gave the clerk a $20 bill. Who has the correct amount
of change Koy should receive? $10.43
15. I have three pennies, one nickel, one dime, one quarter, and a $10 bill. How much is this amount of money? $10.43
Problem: Kathy went to the bookstore and purchased 3 books. She paid a total of $36.72 and gave the cashier a $50 bill. Who has the correct
amount of change Kathy should receive? $13.28
16. I have three pennies, one quarter, three $1 bills, and a $10 bill. How much is this amount of money? $13.28
Problem: Lin went out to eat and spent $16.63 on his dinner. He gave the waiter a $20 bill. Who has the correct amount of change Lin
17. I have two pennies, one dime, one quarter, and three $1 bills. How much is this amount of money? $3.37
Problem: Roberto bought some new jeans. He paid $34.27 for the jeans and gave the clerk two $20 bills. Who has the correct change Roberto
18. I have three pennies, two dimes, two quarters, and one $5 bill. How much is this amount of money? $5.73
Problem: Alexis paid $23.87 for some make-up and gave the clerk a $20 bill and a $10 bill. Who has the correct change Alexis should
receive? $6.13
19. I have four pennies, two dimes, and two $1 bills. How much is this amount of money? $2.24
Problem: The circus was in town and Chan bought 4 tickets and paid $88.24 including tax. He paid for the tickets with five $20 bills. Who
has the correct change that Chan should receive? $11.76
20. I have one penny, three quarters, one $1 bill, and one $10 bill. How much is this amount of money? $11.76
Problem: Elita spent $13.67 on a pair of earrings. She gave the clerk a $20 bill. Who has the correct change that Elita should receive? $6.33
21. I have three pennies, one nickel, one quarter, one $1 bill, and one $5 bill. How much is this amount of money? $6.33
Problem: Amos purchased some food for his pet turtle. He spent a total of $6.47. He gave the clerk a $20 bill. Who has the correct change
that Amos should receive? $13.53
22. I have three pennies, two quarters, three $1 bills, and one $10 bill. How much is this amount of money? $13.53
Problem: Nancy bought a ticket to a concert. The total cost of the ticket was $76.31. She paid for the ticket with a $100 bill. Who has the
correct change Nancy should receive? $23.69
23. I have three pennies, one dime, one $1, and one $5 bill. How much is this amount of money? $6.13
Problem: Angelina bought a gift for her mother for $25.86. She gave the cashier two $20 bills. Who has the correct change Angelina should
receive? $14.14
24. I have four pennies, one dime, four $1 bills, and one $10 bill. How much is this amount of money? $14.14
Problem: Salma bought a birthday cake. The total cost of the cake was $16.59. She gave the cashier a $20 bill. Who has the correct change
Salma should receive? $3.41
25. I have one penny, one nickel, one dime, one quarter, and three $1 bills. How much is this amount of money? $3.41
Problem: Chris purchased a western shirt for the rodeo. The total cost of the shirt was $43.79. He gave the clerk $50. Who has the correct
change Chris should receive? $6.21
26. I have one penny, two dimes, one $1 bill, and one $5 bill. How much is this amount of money? $6.21
Problem: Rose needed a new coat. The total cost of the coat was $87.68. She gave the clerk a $100 bill. Who has the correct change Rose
38
Lesson Six:
CUSTOMER SERVICE role play SCENARIOS
Cut the following scenarios in strips. Give one customer service scenario strip to each member of the customer group
to read aloud.
Yuck!!! I don’t like this lemonade! It has a funny taste. I want my money back.
I asked for one glass, not two.
I gave you a $20 not a $10. You have given me the wrong change.
There isn’t enough ice in this lemonade, it’s hot!
What are you raising money for?
There’s another lemonade stand right around the corner, why should I buy your lemonade?
I saw that you handled money with the same glove that you handled my ice with, I don’t want this lemonade.
If I buy two cups, can I get the third cup free?
I want my lemonade in one cup, my ice in another cup and the fresh fruit in another cup.
I saw another lemonade stand selling their lemonade for .50 cents, why are you selling your lemonade for more?
39
After Lemonade Day
Lesson Seven:
Business Results & Accounting;
Spending, Saving & Sharing;
Reflections & Future Plans
Objectives
- Students will be able to measure, record, and interpret financial data.
- Students will be able to reflect and evaluate their results from Lemonade Day.
- Students will be able to discuss the benefits of a savings account.
- Students will be able to make a donation to charity.
- Students will be able to plan future entrepreneurial activities.
Materials & Set-Up
- Writing utensil
- Entrepreneur Workbook: Business Results & Accounting
- Entrepreneur Workbook: Saving & Sharing
- Entrepreneur Workbook: Reflections & Future Plans
- Teacher Resource: Check Register for Lemonade Day Project (worksheet)
- Teacher Resource (See Teacher Resources at LemonadeDay.org) : Check Register for Lemonade Day Project
- Teacher Resource (See Teacher Resources at LemonadeDay.org) : Check Register Spreadsheet Calculator
- Lesson 7.1 Worksheet: Using a Check Register
-Technology Option (See Teacher Resources at LemonadeDay.org): Lemonade Day Teen Spreadsheet
- Lesson 7.2 Worksheet: Profit Circle Graph
- Lesson 7.3 Worksheet: U.S. Free Enterprise System
- Calculator (optional)
Key Terms
- Donations: money or goods given to an organization or individual that improves their condition
- Expenses: all costs related to a business
- Investor: a person who lends money in order to earn a financial return
- Loan: a thing that is borrowed, especially a sum of money that is expected to be paid back with interest
warm-up
- Ask students to share with a partner their best memories of Lemonade Day.
- Ask them to describe any challenges they faced as an entrepreneur.
- Ask students to share their experiences with the class and celebrate their accomplishments.
40
Activity 1: Business Results & Accounting
Objective: (1) SWBAT measure, record and interpret financial data; (2) SWBAT reflect and evaluate their results from
Lemonade Day.
- Read through the Business Results & Accounting section of the Entrepreneur Workbook.
PFL Extension – Check Register
- D iscuss the purpose of a bank register or check register and how it can be used to track their money going out and coming in
for the Lemonade Day project.
- Explain what the columns on the Check Register mean.
• Number or code refers to check number or another identifying code.
• Date refers to date of transaction,
• Description of Transaction identifies to whom the money was paid or who gave you money to deposit, such as your
investor. It is used to identify the type of transaction.
• Payment/Fee/Withdrawal is the amount of money you spend that is taken out of your account.
• The check column is used to keep track of transactions that have cleared your account.
• Deposit/Credit is for the amount of money you put into your account, such as the money you get from your investor.
• Balance is how much money you have available to use.
- Work with students through the sample scenario Lesson 7.1 Worksheet: USING A CHECK REGISTER on page 44 of the
Teacher’s Guide.
- Provide students with a blank Check Register (included in guide and online) for them to use to track their in and out
transactions for the Lemonade Day project.
Business Results & Accounting
- Prompt students to total their cash sales, tips, total number of cups of lemonade sold and any remaining supply
purchase receipts.
- Prompt students to use this information to complete the Accounting Results Worksheet in the Business Results & Accounting
section in their Entrepreneur Workbook.
- After students have verified their calculations, have students complete and submit the online Business Results Form located
on their city’s Lemonade Day website.
Activity 2: Spending, Saving & Sharing
Objective: (1) SWBAT discuss the benefits of a savings account; (2) SWBAT make a donation to charity.
- Prompt students to locate the Saving section of their Entrepreneur Workbook.
- Read aloud the benefits of starting a savings account.
- Ask students to describe in their own words at least two reasons someone should start a savings account.
- Check for understanding by ensuring students grasp the concepts of a savings account generating interest on money, providing
a safe place for money and storing money so that next year they can be their own investor for Lemonade Day.
PFL Extension - Savings
- Guide students to research interest rates at three different banks using a resource such as bankrate.com.
- Guide students to use the Savings tab on the Lemonade Day Teen Spreadsheet (online at LemonadeDay.org) to determine how
their savings will grow in a savings account if they continue to deposit small amounts over time.
- Remind students that the amount and what they save for is up to them. One option would be to save for college. Discuss saving
for college. Direct students to the Saving For College section on the Savings tab of the Lemonade Day Teen Spreadsheet.
Sharing
- Ask students to complete the questions in the Sharing section of their Entrepreneur Workbook.
- Remind students the amount and who they donate to is up to them. They can choose a charity of their choice and can also
consider using a portion to Pay it Forward so that another student can participate next year.
- Optional: Distribute envelopes to each student prompting them to write the name of their charity on their envelope and enclose
the money they want to donate within; forward this envelope to the charity of the student’s choice.
- Have the students complete and submit the online Business Results Form located on your city’s Lemonade Day website.
PFL Extension – Components of Profit
- Guide students to complete the Lesson 7.2 Worksheet: PROFIT CIRCLE GRAPH on page 46 of the Teacher’s Guide.
Business Results
- Have the students complete and submit the online Business Results Form located on your city’s Lemonade Day website.
41
ACTIVITY 3: REFLECTIONS & FUTURE PLANS – FREE ENTERPRISE
Objectives:
SWBAT explain the choices people in the U.S. free enterprise system can make about earning, spending and saving money and
where to live and work.
SWBAT describe how the free enterprise system works, including supply and demand; and
SWBAT give examples of the benefits of the free enterprise system such as choice and opportunity.
SWBAT describe how the free enterprise system works in the United States; and
SWBAT give examples of the benefits of the free enterprise system in the United States.
- Ask students to list the decisions they made as an entrepreneur on Lemonade Day.
- After writing their own answer, have students share their answers with an elbow partner.
- Have three students share their answers with the class.
- H ave each student answer the following questions about choices they made for Lemonade Day.
They are to answer in complete sentences.
1. What type of product did you produce and why did you choose this product?
2. What set your product apart from other similar products?
3. How did you produce your product? What were the steps involved? What tools did you use?
4. Where did you set up your stand and why did you choose that location?
5. How did you decide who would receive your product? How was it distributed?
6. What did you charge and why did you select that price?
7. Did you change the price of the product? Why or why not?
- H ave the students compare their answers with two or three other students. Next, have the students summarize the similarities
of their answers in two or three sentences. Then, the teacher asks the students if they know what a free enterprise system
means. Ask them what each word means and then put together. Let the students discuss with an elbow partner.
- A fter asking for answers from several students, provide the following explanation. The key component of the free enterprise
system is that it means that people have the right to own property and to make choices on what they produce and what
they buy. Entrepreneurs produce goods and services to make a profit. Ask the students what property they owned in their
Lemonade Stand.
- T ell the students that you are going to now discuss how they answered the questions at the beginning of class. Ask each
question and guide the discussion to show how the free enterprise system operates. The possible answers are:
1. T he answers will vary. They may have chosen their products because they thought they would sell. Point out that in a nonfree enterprise system the government may tell them what to produce and they have no choice.
2. A nswers vary but guide the students to understand that they had the opportunity to choose their product’s characteristics.
There are countries in which people are told what work they will do and how they will produce the product.
3. E xplore with the students how they could have used manual methods such as stirring with a spoon or they could have used
a blender and machinery. Encourage them to take this further to truly look at how they produced the product. Point out that
in a free enterprise system the entrepreneurs are encouraged to use technology. Ask for more examples of how they could
have used technology. (Answers could include tablet, calculator, refrigerator, printer to provide receipts.)
4. E ncourage deeper learning by asking if the location was good—why or why not. Ask if there would have been a better
location and why. If it is better, what are reasons for not opening a stand in that location. Answers could include the
location might be expensive or potentially be hit by a storm, etc.
5. T he key answer is to have the students realize that the person who receives the product is someone who can afford to buy
it. Discuss that in some countries they may all receive products for maybe even a cheaper price, but the products are all
basically the same and many not be what you want—but that is the only choice. And, they may not be allowed to shop in
certain stores. In other words, the consumer or buyer has limited recourses from which to choose.
42
6. Let them discuss the questions. Then, ask them what they would have done if no one had come to the stand. What if many people
had come? Then, discuss how if no one came you could encourage people to stop. The strategy would be to lower the cost. If many
people had come the price would have gone up. Ask them to explain why.
- H ave the student review with a new partner the initial question of the class: What decisions did you make as an entrepreneur
on Lemonade Day? Ask them to add to their answers.
- A sk what the entrepreneurs hoped to receive in their marketplace. The answer is that they wish to make a profit which means
the value it costs to produce the product is less than the price they received.
- H ave the students write down the role that the consumer plays in the marketplace. Have them record their answers then ask
three to answer. The answers should deal with how they made choices as to what to buy.
- Have the students hold their thumbs up for up or yes and down for no.
- A sk the students what would happen if the price went up. Guide them to answer that the consumers would be unhappy and
would buy less of the product. They need to show down thumb meaning that demand would go down.
- A sk the students: What would you do as a business owner if people stopped buying the goods and services? Guide them to
answer that lowering prices can encourage more to buy your product. When people buy a good or service this is known as
demand. Explain that providing goods and services for people to purchase is called supply. If they still cannot sell anything
they may go out of business.
- Ask what would happen if the prices then came down. The buyer would want to buy more.
- A sk who is controlling the types and quality of goods and services provided. Guide the answers to be that the producer or
business produces/supplies what they think the buyer/consumer will buy or demand. The consumer demands products that
have characteristics and prices that are attractive to them.
- Ask the students to give real life examples of how the buyers and sellers control what is produced and how much is produced.
- Prompt students to complete Lesson 7.3 Worksheet: US FREE ENTERPRISE SYSTEM on page 47 of Teacher’s Guide.
- H ave the students complete the chart in small groups and have each student put his or her name on the sheet. Discuss the
answers with the class.
Closure:
Have the students work in groups of three to draw a picture or a cartoon showing the characteristics of the free enterprise
system for Lemonade Day and for the U.S.
- D iscuss the benefits of a free enterprise system. Guide the students to discuss they are able to make decisions as suppliers to
make a profit. Buyers can use their pocket book to buy or not buy products. What they buy will be supplied and if they do not
demand the products, they will no longer be made.
ACTIVITY 4: REFLECTIONS & FUTURE PLANS
Objectives: SWBAT plan future entrepreneurial activities.
- T ell students now that they have some experience as entrepreneurs to imagine themselves accomplishing something as an
entrepreneur in the future. Ask them to think of what other talents or skills they have that they could use to start a profitable
business. As a class, brainstorm a list of ideas for future entrepreneurial adventures.
- Allow students to reflect on the Reflections & Future Plans section of their Entrepreneur Workbook.
- Allow students to share with the class their ideas for future business endeavors.
CLOSURE
T his is it! The job is done! Congratulations on all your hard work- now you have some ideas so
it’s time to start planning your next money-making adventure! Be sure to submit your story and
pictures to [email protected] and to Pinterest.com/LemonadeDay to share your
success stories!
SUGGESTED READINGS
Five Recommendations for Starting Your Own Student Business – http://bit.ly/SUL26a
43
HANDOUT
USING A CHECK REGISTER TO KEEP UP WITH EXPENSES
A check register will help you keep up with your expenses and the money you make. Fill out the check register for Sal’s Lemonade Stand.
Sal’s Uncle Mark invested $200 in his Lemonade stand. Sal then went to the grocery store and spent $77.68 on supplies to make his
lemonade. He needed cups and napkins, so he went to a discount store and spend $35.89. When it came time to build his stand he went to
the hardware and lumber store. He needed $112.65 for materials to build his stand. Compare this amount to his balance. Sal had to borrow
some additional money from his parents. He borrowed $50. Then he purchased his materials to build his stand.
On Lemonade Day, Sal sold 342 glasses of lemonade for $1.50 each. How much money did he deposit in his account? How much did he repay
his investors? How much did he save? How much did he donate to a charity?
Solution: Using a Check Register to Keep Up With Expenses
44
Payment, Fee,
Withdrawal
(-)
Number
or code
DATE
Description of Transaction
1
4/1
Uncle Mark’s Loan
2
4/3
Grocery
77.68
122.32
3
4/4
Discount Store
35.89
86.43
4
4/9
Parents’ Loan
5
4/10
Hardware/Lumber
6
5/4
Money received from sale of lemonade
7
5/5
Repay Uncle Mark’s investment
200.00
336.78
8
5/5
Repay Parents
50.00
286.78
✔
Deposit/
Credit (+)
Balance
200.00
200.00
50.00
112.65
136.43
23.78
513.00
536.78
Number
or code
DATE
Description of Transaction
Payment, Fee,
Withdrawal
(-)
✔
Deposit/
Credit (+)
Balance
45
HANDOUT
Profit Circle Graph
Directions: First determine how you will use your profit. Then calculate what percentage of your profit will be used towards each
item or category. Show how your profit will be used by creating approximate size sectors on the circle below.
46
HANDOUT
US Free Enterprise System
Directions: Give examples of the similarities and differences between the Lemonade Day experience and real life. Use the terms
supply, demand, consumer, business, etc. to help you describe the answers.
Similarities Between Lemonade Day
and U.S. Free Enterprise System
Deciding what
goods and
services to
supply
Example: Suppliers can choose what to
produce.
Differences Between Lemonade Day
and U.S Free Enterprise System
Example: producers have more
choices in what to produce.
Deciding
how much to
charge for
goods and
services
Deciding
how many
to produce/
supply
Deciding who
receives the
products
Deciding what
products
consumer will
buy or demand
Deciding how
to produce a
product
47
Glossary of Terms
Achievement: a goal accomplished by hard work, skill and determination
Advertising: everything that you do to tell customers about your business or product
Budget: a list of all planned expenses and revenue
Business: the selling of goods or services for the sake of earning a profit
Business Plan: a detailed plan of how a business is operated to reach its goals
Capital Equipment: supplies that can be used over and over again
Consumables: supplies that once used are gone or no longer useable
Customer Service: how businesses interact with customers and take care of their needs
Donations: money or goods given to an institution or individual that improves their condition
Employee: a person working for another business or another person for pay
Entrepreneur: a person who starts a business assuming the risk for the purpose of making a profit
Expenses: all costs related to your business
Goal: the specific task or target a person aims to achieve
Interest: a charge for borrowed money; generally a percentage of the amount borrowed
Investor: a person who lends money in order to earn a financial return
Loan: a thing that is borrowed, especially a sum of money that is expected to be paid back with interest
Partnership: an association of one or more people for the purpose of business
Profit: the money gained from the sale or sales after expenses are paid
Revenue: all money that comes into your business
Sale: the transaction that occurs when a good or service is traded for a form of payment
Success: favorable or desired outcome
48
Online Resources for Teachers
-b
izworld.org: non-profit that inspires children to be innovative leaders through the teaching of business, entrepreneurship and finance
- econedlink.org: online economic and personal finance lessons and resources for educators, students and afterschool providers
- educationworld.com: the educator’s best friend
- entrepreneurship.org: a resource designed to help build entrepreneurs
- entre-week.org: National Entrepreneurship Week
- jumpstart.org: Jump$tart Coalition for Personal Financial Literacy
- themint.org: financial literacy activities for kids, teens, parents and teachers
- nefe.org: National Endowment for Financial Education
- nfikidscount.org: Road to Financial Literacy curriculum
- nfte.com: Network for Teaching Entrepreneurship
- practicalmoneyskills.com: practical money skills for life
-q
uizlet.com: flashcards, vocabulary memorization games, and study games
- teachingkidsbusiness.com: blog preparing and launching kids into business
- thesekidsmeanbusiness.org: stories of young entrepreneurs
- webtotherescue.com/entrepreneurship-for-teens: resource to help grow your business
- yeabiz.com: Young Entrepreneurs of America
- theyec.org: Young Entrepreneurs Council
- youngbiz.com: linking the classroom to the real world
It all started with a Turtle.
When entrepreneur and philanthropist Michael Holthouse’s 10-year-old daughter Lissa insisted on doing a lemonade stand
to earn money for a turtle, Lemonade Day was born. Here, packed into a fun and memorable experience, is an extraordinary
way to learn how life and business really works.
That day opened his eyes to a way that he could share both his passion for youth and his experience in building successful
companies, to impact young people everywhere. Prepared 4 Life (P4L) is an organization devoted to helping prepare youth
for life through fun, proactive and experiential programs infused with life skills, character, and entrepreneurship. Lemonade
Day is P4L’s flagship program.
“We imagine a day with over one million lemonade stands where every part of our community gets involved.
A day devoted to the future of our youth and showing them how to achieve their own American Dream.
Set a goal, make a plan, work that plan, and achieve your dream. It’s all here in a simple little lemonade
stand. Get involved and help change the world!”
-Michael Holthouse
Founder, Lemonade Day
www.Turtlebook.LemonadeDay.org
49
set measurable short- and medium-term financial goals
JumpStart: Personal Financial Literacy
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calculate the sales tax for a given purchase
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given a simplified case study, construct a net worth
statement
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calculate and compare simple interest and compound
interest earnings
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define interest, tip, and business profit income
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using a financial or online calculator, determine the total
cost of repaying a loan under various rates of interest and
over different periods
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add, subtract, multiply, and divide (6.NS.2, 6.NS.3, 7.NS.1d,
7.NS.3)
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Reading
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calculate percentages (6.RP.3c, 7.EE.3)
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evaluate expressions at specific values of their variables
(6EE.2C)
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key ideas and details (CCRA.R.1, 2, & 3)
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craft and structure (CCRA.R.4 & 5)
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integration of knowledge and ideas (CCRA.R.7)
range of reading and level of text complexity (CCRA.R.10)
Writing
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summarize numerical data sets in relation to their content
(6.SP.5)
Speaking
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understand and calculate unit rates (6.RP.2, 7.RP.1, 7.RP.2b)
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text type and purposes (CCRA.W.2)
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production and distribution of writing (CCRA.W.4)
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range of writing (CCRA.W.10)
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research to build and present knowledge (CCRA.W.7 & 9)
presentation of knowledge and skills (CCRA.SL.4, 5, & 6)
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explain how interest rate and loan length affect the cost of
credit

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explain the difference, with examples, between assets and
liabilities
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Free Enterprise
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explain how small amounts of money invested regularly over
time grow exponentially
comprehension & collaboration (CCRA.SL.1, 2, & 3)

•
give examples of how saving money can improve financial
well-being
Business Results &
Accounting

explain importance & value of credit report
apply mathematical practices
Spending, Saving, &
Sharing
Lesson 7
Running Your Business
Setting Up
Making Change
Lesson 6
Making Healthy
Lemonade
Lesson 5
Purchasing
Building Your Own
Successful Stand
Elements of a Successful
Stand
Advertising
Site Selection
Getting an Investor
Defining Investor
Lesson 4
•
prepare a personal spending diary
Mathematics
Lesson 3
Budgeting
Capital Equipment &
Consumables
Planning Your Business
Setting a Goal
Defining Profit
Lesson 2
Characteristics of
Successful Entrepreneurs
Defining Entrepreneur
Choral Responses for
Entrepreneur
Correlation to Common Core
State Standards, grades 6-8
KWL & Video Viewing
Lesson 1
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balance a check register (6.14C)
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calculate and compare simple interest and compound
interest earnings (7.13E)
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calculate the total cost of repaying a loan under various
rates of interest and over different periods using an online
calculator (8.12B)
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calculate unit rates (6.4C & D, 7.4B)
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reading/vocabulary development (6.2, 7.2, 8.2)
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reading/comprehension of informational text/expository text
(6.10, 7.10, 8.10)
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reading/comprehension of informational text/procedural text
(6.12, 7.12, 8.12)
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writing/expository and procedural text (6.17, 7.17, 8.17)
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oral and written conventions/handwriting, capitalization, &
punctuation (6.20, 7.20, 8.20)
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listening & speaking/listening (6.26, 7.26, 8.26)
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listening & speaking/speaking (6.27, 7.27, 8.27)
analyze the impact of economic concepts within the free
enterprise (6.13B, 7.13B)
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writing (6.16, 7.16, 8.16)
listening & speaking/teamwork (6.28, 7.28, 8.28)
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use graphical representations (6.12D)
Writing
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solve real-life problems comparing how interest rate and
loan length affect the cost of credit (8.12A)
add, subtract, multiply, and divide (6.3D, 7.3A)
Free Enterprise
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analyze and compare monetary incentives, including sales,
rebates, and coupons (7.13F)
apply mathematical process standards (6.1, 7.1, 8.1)
Speaking
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create financial assets and liabilities record and construct
net worth statement (7.13C)
explain benefits of a savings account (7.13B, 8.12C)
Social
Studies
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calculate sales tax (7.13A)
Personal Financial Literacy
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saving for college (6.14G, 7.13B, 8.12C)
Reading
Spending, Saving, &
Sharing
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explain importance & value of credit report (6.14D, E, & F)
Mathematics
Business Results &
Accounting
Lesson 7
Running Your Business
Making Change
Lesson 6
Setting Up
Making Healthy
Lemonade
Lesson 5
Purchasing
Building Your Own
Successful Stand
Elements of a Successful
Stand
Lesson 4
Advertising
Site Selection
Getting an Investor
Defining Investor
Lesson 3
Budgeting
Capital Equipment &
Consumables
Planning Your Business
Defining Profit
Setting a Goal
Lesson 2
Characteristics of
Successful Entrepreneurs
Defining Entrepreneur
Choral Responses for
Entrepreneur
Correlation to TEKS grades 6-8
KWL & Video Viewing
Lesson 1
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Please Share Your Story to:
[email protected]
Find us on:
Lemonade Day National Headquarters
1800 West Loop South, Suite 1875
Houston, Texas 77027
T 713.626.KIDS (5437)
F 713.626.5521
LemonadeDay.org
LemonadeDay.org/app/
50
to Houston ISD 6th Grade

lemonade day lesson 1.1: SettinG GoalS

Transcription

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