The Ladder to Success - Texas Council on Economic Education

Transcription

Personal Financial Literacy
For Grade 3 Classrooms
Personal Financial Literacy
for Grade 3 Classrooms
These lessons are a part of the Texas Council on Economic Education Smarter Texas program and
based on the 2012 Math Personal Financial Literacy Texas Essential Knowledge and Skills
This publication was made possible through funding provided by the
Woodforest National Bank.
The Texas Council on Economic Education (TCEE)
1801 Allen Parkway • Houston, TX 77019 • 713.655.1650
economicstexas.org • smartertexas.org
Copyright 2013, Texas Council on Economic Education
Copying for non-profit, educational use is permitted. All other rights reserved.
Editors
Chief Editor
Cindy Manzano
Director of Smarter Texas
Texas Council on Economic Education
Editor
Laura Ewing
President and CEO
Web Editor
Allen Reding
Authors
Carolyn Elender
Independent Elementary Mathematics Consultant
Valerie Johse
Elementary Math Consultant
Reviewers
Anne Papakonstantinou, Ed.D.
Project Director
[email protected]
Richard Parr
Executive Director
[email protected]
Susan Troutman
Associate Director for Secondary Programs
[email protected]
Carolyn White
Associate Director for Elementary
and Intermediate Programs
[email protected]
School Mathematics Project
Table of Contents
Grade 3 Lessons
Lesson
Lesson 1: The Ladder to Success
Texas Essential Knowledge
and Skills
Math 3.9A
Lesson 2: Scarcity is Scary
Math 3.9B
Lesson 3: Savor the Savings
Math 3.9C
Lesson 4: Flat Broke
Math 3.9D
Lesson 5: Pooling Our Savings
Math 3.9E
Lesson 6: Decisions, Decisions, Decisions
Lesson 7: Keeping Busy with a Business
Lesson 8: Ordinary People with Big Ideas
Math 3.9F
Social Studies 3.6B
Social Studies 3.8ABCD
Social Studies 3.8E
The Ladder to Success
Grade Level: 3
Lesson Description
Lesson: 1
A series of short stories is used to illustrate each of the student expectations
addressed for grade 3. Each story is followed by discussion and engaging activities.
In this first short story, Abby and Bret want to earn some money to buy a
trampoline. They encounter a problem and go to Barkley, a wise old tree in
Woodforest, who gives the children advice. Barkley shares with the children that
the more they know; the more their income will increase. Students do an activity
to help them discover that as the level of education increases, wages usually
increase, too.
Texas Essential
Knowledge and
Skills (Target

PFL Math 3.9A: explain the connection between human capital/labor and
income

Social Studies 3.7C: explain the concept of a free market as it relates to the
U.S. free enterprise system.
Social Studies 3.8A: identify examples of how a simple business operates
standards)
Social Studies Texas
Essential Knowledge
and Skills (Connecting

Standards)
Texas Essential
Knowledge and
Skills (Prerequisite
standards)




National Standards

Math 3.1: Mathematical Process Standards
Math 3.2D: compare and order whole numbers up to 100,000 and represent
comparisons using the symbols >, <, or =
Math 3.4F: recall facts to multiply up to 10 by 10 with automaticity and recall
the corresponding division facts
Math 3.4G: use strategies and algorithms, including the standard algorithm, to
multiply a two-digit number by a one-digit number. Strategies may include
mental math, partial products, and the commutative, associative, and
distributive properties.

CEE Earning Income 4.1: People have many different types of jobs from which
to choose. Different jobs require people to have different skills.
CEE Earning Income 4.2: People earn an income when they are hired by an
employer to work at a job.
PFL Terms







wage
hourly wage
income
human capital
wants
needs
free enterprise system
Time Required
30-45 minutes
(Supporting standards)
CEE - Council for Economic
Education
Page |1
Grade Level: 3
Materials Required




Lesson: 1
One copy of Visual 3.1-1 and Visual 3.1-2
One copy of Activity 3.1-1 and Activity 3.1-2 for each student and one for a
visual
One copy of Activity 3.1-3 for each student (extension)
Vocabulary Powerpoints: Human Capital and Free Enterprise System
Procedure
Note to teacher: Use the Human Capital and Free Enterprise System Powerpoints to review
or frontload these terms.
Introduction
1. Read the unit introduction on Visual 3.1-1. This introduces both the setting and the main
characters that students will come to know during the stories. The class is introduced to
Bret and Abby who live in the Kingdom of Moneia (pronounced Mon-ē-ă). There is a
wooded forest in the kingdom where a wise old tree named Barkley lives. Barkley helps
the children find answers to their questions as they learn grade appropriate financial
literacy concepts.
Engage
2. Begin the lesson by posing the following questions to students:
 What are the needs that you must have in order to live? (You must have food,
clothing, and shelter.)
 What are some things that you want? (Accept students’ suggestions for items
that they want. While clothes are needs, designer clothes are wants.)
 How do people get these things? (People buy food, clothing, and shelter with
money.) If students suggest that some people grow their own food, make their
own clothing, or build their own homes, continue questioning so that students
realize they buy materials to be able to do these things.
 How do people get money? (They earn money from doing work or get money
from gifts.)
 Remind students that money they earn is called income. Why do some people
have higher income than others? (Allow students to suggest a variety of
responses.)
 In the U.S. how do people decide what type of work they will do? (People choose
what types of jobs they want. These choices are based on an individual’s skills
and level of education. The decision is also based on what types of jobs are
available and where each individual is willing to live.)
Explore/Explain
3. Tell students that they will hear a story about two children who live in the kingdom of
Moneia. On their adventures, they are going to learn much useful information about
money.
4. Read the story “The Ladder to Success” to your class. The story is found on Visual 3.1-2.
5. After reading the story, ask questions such as the following to check that students
understood the story:
 Why did Abby and Bret jump out of bed on Saturday morning? (They were excited
about going to the carnival.)
 What were they planning to do at the carnival? (They planned to sell strawberry
Page |2
Grade Level: 3






Explore
Lesson: 1
ice cream.)
What problem did they have with their ice cream? (They didn’t know how to keep
it frozen.)
Who did they ask to help them with their problem? (They asked Barkley.)
What secret did Barkley share with the children? (He said they were lucky enough
to live in a country that believes in the free enterprise system.)
What is the free enterprise system? (The free enterprise system allows people to
make choices about what type of work they do and what goods and services
they buy.)
What benefit would training and education provide? (Training and/or education
provides the possibility of increasing your income.)
What do you think that means? (Accept reasonable responses. The more
education you have and/or the more training you have, the higher your income
will most likely be.)
6. Distribute a copy of Activity 3.1-1 to each student. You may find it helpful to also use a
copy of Activity 3.1-1 as a visual as you question students and guide them to completing
the page. Tell students that the ladder shows the different levels of workers at the
Creamy Creations Company. Under each job is a place to write the hourly wage for doing
that job. Choices are found in the box beneath the ladder. In the column to the right,
students are to choose from the box on the lower right and write the level of
education/training needed for each job on the ladder.
7. Question students to guide them in completing the activity.
 What are the jobs workers have in the Creamy Creations Company? (The jobs are
Ice Cream Server, Ice Cream Mixer, Store Manager, Creator/Researcher, District
Manager, and Business Owner.)
 What else does this table tell us? (The Store Manager earns $20.00 an hour.
There are education requirements for each job.)
 Look at the range of wages listed. We know the Store Manager earns $20.00 an
hour. Where do you think we should start in determining the other wages?
(Sample response: We could start with the highest or the lowest salary.)
 Why do you think that? (Sample response: The ladder means that the lowest
wage is at the bottom and each rung up the ladder is a higher wage.)
 So what do you think the Ice Cream Server earns? (The ice cream server earns
$8.00 an hour.) Instruct students to write $8.00 an hour in the space below the
Ice Cream Server.
 What do you think the Ice Cream Mixer earns? (The ice cream mixer earns $10.00
an hour.) Instruct students to write $10.00 an hour in the space below the Ice
Cream Mixer.
8. Continue questioning in this manner over the remaining jobs. Provide time for students
to write each wage earned below the job name.
 Why do you think a Store Manager earns more than the Ice Cream Server?
(Sample responses: He/she works harder. He/she works more hours. He/she has
more training/education.)
Page |3
Grade Level: 3
Lesson: 1
9. Direct students’ attention to the column on the right, Education Needed. Begin at the
bottom of the ladder and guide students in completing the table.
 How much education do you think the Ice Cream Server needs? (The Ice Cream
Server has no special requirements other than being a high school student.) In
most places, one has to be 16 years of age to be employed. Students should write
“High School Student” to the right of Ice Cream Server.
 How much education do you think the Ice Cream Mixer needs? (The Ice Cream
Mixer must be a high school graduate.) Students should write High School
Graduate to the right of the Ice Cream Mixer.
 What about the Store Manager? How much education does he/she need? (The
Store Manager must have 2 years of college.) Students should write 2 years of
college to the right of the Store Manager.
10. Provide time for students to complete the table. Check their work. Students may wish to
discuss that both the District Manager and the Creator/Researcher are both college
graduates. However, the Creator/Researcher has a focus on food development and the
District Manager has a focus on business. Ask students why they think there is a
difference in their wages.
11. Ask students if they see any kind of pattern in the ladder table. They should discuss any
patterns they find with their partners. Then ask for volunteers to share their
observations. Students may observe that the wages increase as the rungs move toward
the top of the ladder. As the wages increase, the education needed also increases. Be
sure that students see this relationship.
12. Ask students if they see a connection between the human capital required and how
much the person in each position earns. (The more training, knowledge and skills a
worker has the more salary they typically earn.)
Elaborate
13. Distribute Activity 3.1-2 to students. Since students found the patterns previously, they
should apply this understanding to the column on the right, Fewest Years to reach
Education Needed. Ask students how they will know what to put in the column, Daily
Earnings. Students should recognize that they must multiply the hourly wage times 8 to
determine the daily earnings.
Evaluate/End
14. Use a copy of Activity 3.1-2 as a visual to go over students’ responses to Activity 3.1-2.
Fill in the chart as students volunteer their answers. Have students look at the
completed chart and make a generalization from something they observe in the chart.
Students should write this generalization on the back of Activity 3.1-2.
EXTENSION
1. Use Activity 3.1-3 for students to solve the following ice cream problem:
Abby and Bret walked along Main Street one Saturday afternoon. It had been a long
hot day. They spotted Mr. Bean’s Ice Cream and Soda Shoppe. Both decided it was
time to spend a little of their income on a cool treat. Bret had walked Mr. Brown’s
dog that morning and made $3.00. Abby had the opportunity to babysit the Smith’s
Page |4
Grade Level: 3
Lesson: 1
twin boys that morning and had made $3.50. What do you think Abby and Bret
bought while in Mr. Bean’s Ice Cream and Soda Shoppe? Remember Abby and Bret
are continuing to save for their trampoline. How much do you think each child saved
of their income?
2. Have the students research beginning salaries and education/training needed for 3-5
different jobs. Students can construct a chart to show their findings. Some job
suggestions are grocery clerk, fireman or policeman, secretary, teacher, nurse, or
lawyer.
Page |5
Grade Level: 3
Lesson: 1
Visual 3.1-1
Abby and Bret live in a wonderful country called Moneia (pronounced Mon-ē-ă).
It is a magical land where the forest is lush, green and beautiful. Within the
forest is a tall, lumbering pine tree. The tree has been there for over 100
years. It has stood tall against wind, rain, snow and ice.
One day Abby and Bret were walking among the trees and heard a soft
moan. They followed the sound to what seemed to be the tallest pine tree in
the forest. All of a sudden the forest became perfectly quiet. Not a sound
could be heard. Abby and Bret became very frightened.
They heard the moan again. It seemed to be coming from the pine tree.
Looking up, they noticed a small branch that looked as if a strong wind had
caused the branch to puncture the tree. They carefully pulled the branch out
and immediately heard a sigh of relief. Abby and Bret held their breath
because they didn’t know who or what had made that sound.
As they began to back away, a voice came from that tree. It was a kind voice.
“Hello, children. I want to say thank you for removing that irritating twig.
You are very kind. What are your names?”
“I’m Abby and this is my brother Bret. Who are you?”
“I’m the oldest tree in the forest. Some think that I am the wisest. They call
me Barkley of Woodforest. Your kindness will not go unnoticed. Please let
me help you in any way I can, at any time.”
“I have helped many of my friends learn about spending and saving,
borrowing and lending. Saving for the hard winter is an important skill when
living in the forest. I stay green all year long and have become an expert on
anything that is green, including money.”
Page |6
Grade Level: 3
Lesson: 1
Abby and Bret thanked Barkley and continued through the forest on their
way home.
The children couldn’t believe what had just happened. It was a huge surprise
to realize that they had discovered a wise old tree right in the middle of their
forest. The adventure was about to begin.
Page |7
Grade Level: 3
Lesson: 1
Visual 3.1-2
Abby and Bret were excited about the Critter Carnival that was coming to the
wooded forest. It was finally Saturday morning, and this was the big day.
Abby and her brother Bret had been waiting for this day for weeks. The
children were excited to see so many choices. Some booths sold goods like
handmade crafts while others provided services like games to play. Other
booths had delicious food for sale. That is the kind of booth Abby and Bret
would have.
Abby and Bret jumped out of bed right away. There was so much to do
before they could leave for the carnival. This brother and sister had decided
to make homemade ice cream to sell at the carnival. They had discovered
that no one else would be selling ice cream. For this reason, the children
hoped that they would have a popular product that would have them going
home with a full money box. They would sell strawberry ice cream with fresh
strawberries on top. The waffle cones were already made. All that was left
for them to do was to mix the ingredients for the ice cream, freeze it, and
they would be off to the carnival.
Abby and Bret wanted to have a trampoline with safety nets of their very
own. They decided beforehand that they were going to have to generate an
income if they were ever going to get a trampoline. They would need to be
paid for work they did.
Everything was set; the ice cream mixture was ready. Now they only had to
freeze it.
Page |8
Grade Level: 3
Lesson: 1
That is when Abby and Bret began to think. “How will we take a freezer to
the carnival? It’s too heavy, especially when it is full of ice cream!” Abby
asked.
“We need some advice,” said Bret.
“Who would know something about freezing?” asked Abby.
“I know,” said Bret. “It freezes in the forest every winter. Maybe Barkley¸
that wise old pine tree would know.”
Bret and Abby headed to the forest and found Barkley sound asleep.
“Hey, Barkley, wake up. Abby and I have a problem and we need your help.”
“Oh… Oh, yes?” Barkley answered sleepily.
“How do you freeze ice cream without putting it in a freezer?” asked the
children.
“That’s easy. My mom use to make homemade ice cream. Put the container
in the middle of your ice cream maker bucket. Put rock salt around your
container and turn the crank. That’s the hard part. Before long it will be
frozen.”
“Now, here is the big question,” asked Barkley. “Why are you making ice
cream?”
“Barkley, we need to make money to buy a trampoline. We need an income.
The more ice cream we sell, the more money we will make. The more money
we make, the higher our income becomes. Before long we’ll be able to afford
a trampoline,” Bret explained.
“I’m very proud of what you have done so far,” praised Barkley. “You already
have the capital needed like buckets, serving spoons and containers. You also
Page |9
Grade Level: 3
Lesson: 1
have the human capital needed because you have watched your parents and
understand how to make your product. You have a plan for how and where
to sell your ice cream.”
“I have secret for you, you’re lucky enough to live in a country that believes
in the free enterprise system,” Barkley said quite seriously. “The more you
know, the more your income will increase. You need training to get ahead.
Think about getting more education at a college or university. Now you are
learning about having your own business. As you get older you may decide
that you like being an entrepreneur and start your own business. Later you
might decide to take business classes. Some people study how to run a
business in college for 5 years and get a MBA degree. That means Master of
Business Administration. And never forget about hard work. The Creamy
Creations Company works hard to make the best ice cream they can possibly
make. The more people who buy their ice cream, the more money they
make.”
“The Creamy Creations Company would tell you to work hard, learn as much
as you can about running a business, and be honest and creative,” added
Barkley. “Good luck kids. I hope your work pays off and you get your
trampoline.”
Abby and Bret waved goodbye to Barkley and ran home to freeze their ice
cream.
P a g e | 10
Grade Level: 3
Activity 3.1-1
Lesson: 1
Determine the hourly wage and the education needed for each worker. Use the
information in the boxes below to complete the table.
Business owner
Education Needed
Wage:
District Manager
Wage:
Creator/researcher
Wage:
Store Manager
Wage: $20.00 an hour
Ice cream Mixer
Wage:
Ice cream Server
Wage:
Education Needed
Wages
$20.00 an hour
2 years of college
$ 8.00 an hour
College graduate with a focus on food
development
$50.00 an hour
High School graduate
$25.00 an hour
College graduate with a focus on business
$40.00 an hour
High School Student
$10.00 an hour
Master of Business Administration
P a g e | 11
Grade Level: 3
Key 3.1-1
Lesson: 1
Determine the hourly wage and the education needed for each worker. Use the
information in the boxes below to complete the table.
Education Needed
Business owner
District Manager
Creator/researcher
Master of Business
Administration
College Graduate with
focus on business
College Graduate with
focus on food development
Store Manager
2 years of College
Ice cream Mixer
High School Graduate
Ice cream Server
Wage: $8.00 an hour
P a g e | 12
High School Student
Grade Level: 3
Activity 3.1-2
Daily
Earnings
Lesson: 1
Determine the daily earnings based on an eight hour workday. Then use the information in
the box at the bottom to approximate the age to reach education needed.
Position
Education
Needed
Business owner
Master of Business
Administration
District Manager
College Graduate
with focus on business
Approximate Age
to Reach
Education
Needed
Creator/researcher College Graduate
Store Manager
Ice cream Mixer
Ice cream Server
Wage: $8.00 an hour
with focus on food
development
2 years of College
High School
Graduate
High School
Student
Approximate Age to Reach Education Needed:
P a g e | 13
20, 24, 16, 22, 18, 22
Grade Level: 3
Key 3.1-2
Daily
Earnings
$400
$320
$200
$160
$80
$64
Lesson: 1
Determine the daily earnings based on an eight hour workday. Then use the information in
the box at the bottom to approximate the age to reach education needed.
Position
Education
Needed
Business owner
Master of Business
Administration
District Manager
College Graduate
with focus on business
Creator/researcher College Graduate
Store Manager
Ice cream Mixer
Ice cream Server
Wage: $8.00 an hour
P a g e | 14
Approximate Age
to Reach
Education
Needed
24 years
22 years
with focus on food
development
22 years
2 years of College
20 years
High School
Graduate
18 years
High School
Student
16 years
Grade Level: 3
Activity 3.1-3
Lesson: 1
Name ________________________________________
Abby and Bret walked along Main Street one Saturday afternoon. It had been a long hot
day. They spotted Mr. Bean’s Ice Cream and Soda Shoppe. Both decided it was time to
spend a little of their income on a cool treat. Bret had walked Mr. Brown’s dog that
morning and made $3.00. Abby had the opportunity to babysit the Smith’s twin boys
that morning and made $3.50. What do you think Abby and Bret bought while in Mr.
Bean’s Ice Cream and Soda Shoppe? Remember Abby and Bret are continuing to save
for their trampoline. How much do you think each child saved of their income?
Choose Your
Flavor
Vanilla
Chocolate
Strawberry
Chocolate Chip
Cookie Dough
Cost Per Dip
1 Dip
2 Dips
3 Dips
4 Dips
5 Dips
$ .50
$ 1.00
$ 1.50
$ 2.00
$ 2.50
Topping
Sprinkles
Chocolate Chips
Whipped Cream
Nuts
Jelly Beans
Cost of Topping
$ .10
$ .20
$ .50
$ .75
$1.00
Bret earned $3.00. What choices do you think he made?
Flavor: ____________________________
Number of dips: ____________________
Cost _$________
Topping(s): ___________________________________
Cost _$________
Total Cost _$________
How much of his income did Bret still have after buying ice cream? ________________
Abby earned $3.50. What choices do you think she made?
Flavor: ____________________________
Number of dips: _____________________
Cost _$________
Topping(s) ___________________________________
Cost _$________
Total Cost_$________
How much of her income did Abby still have after buying ice cream? _______________
P a g e | 15
Scarcity is Scary
Grade Level: 3
Lesson Description
Lesson: 2
Bret and Abby learn how the scarcity of gasoline can cause the price to increase,
putting their much anticipated vacation plans in jeopardy. Mom and Dad explain
how the availability or scarcity of a resource can impact its price. The children
devise a plan so that they can still go on vacation.
Following the story, students play a quick vocabulary game to reinforce the
vocabulary used in this lesson. Students then do a group activity where they
physically illustrate the concept of availability and scarcity. To apply this new
learning, students work in pairs discussing and sorting a variety of situations.

PFL Math 3.9B: describe the relationship between the availability or scarcity of
resources and how that impacts cost


Social Studies 3.7A: define and identify examples of scarcity
Social Studies 3.7B: explain the impact of scarcity on the production,
distribution, and consumption of goods and services


CEE Buying Goods and Services 4.6: People’s spending choices are influenced
by prices as well as many other factors, including advertising, the spending
choices of others, and peer pressure.
PFL Terms









availability
scarcity
supply
demand
increase
decrease
opportunity cost
good
service
Time Required
45-minutes
Texas Essential
Knowledge and
Skills (Target
standards)
Texas Essential
Knowledge and
Skills (Connecting
standards)
Texas Essential
Knowledge and
standards)
National Standards
Education
Page |1
Scarcity is Scary
Grade Level: 3
Materials Required










Lesson: 2
One copy of Visual 3.2-1 and Activity 3.2-1
One copy of Activity 3.2-2 for each pair of students
One Exit Ticket for each student
10 index cards
Marker
2 flyswatters, different colors if possible
Scissors
Glue or gluestick
Blank copy paper or sheet of construction paper for each pair of students
Vocabulary Powerpoints: Opportunity Cost and Goods and Services
Procedure
Note to teacher: Use the Opportunity Cost and Goods and Services Powerpoints to review or
frontload these terms.
Engage
1. To introduce the lesson, ask students the questions below.




Explore/Explain
How many of you have ever wanted something so much that you worked and earned
your own money to buy it? What was it? Allow several students an opportunity to
share briefly.
Have you ever planned to spend a certain amount of money on something and then
when you went to the store, the cost was different?
How was it different? Was it more/less? Why do you think that was?
When I bought a new TV about 3 years ago, the TV cost about $700. When I was in
the store last week, the same TV, same brand, same size, was only $550. Is that fair?
Why did I have to pay more for the TV? (Suggested response might include that new
TVs have new features which cost more to make and there is greater demand.
Older TVs are no longer in demand so stores want to sell the old stock. Therefore,
the price decreases.)
2. Tell the class that today you will continue with the story of Abby and Bret. In today’s
story, the children face another problem and must find a way to solve their problem.
Read Scarcity is Scary, found on Visual 3.2-1.
3. After sharing the story with students, check for comprehension by asking the following
questions:
a. What did Abby and Bret give up for the opportunity to go to Giddyland? (They gave
up the opportunity to buy a trampoline.) Explain to the students that people have to
make choices because people have a scarcity of money. Opportunity cost is the value
of what people give up.
b. Because there was a scarcity, what became more expensive and why? (Gasoline
became more expensive. Since more gasoline was being used, there was less
available. This means that gasoline was scarce.)
c. What was the children’s solution to the problem? (They decided to work to produce
more income and save that money to spend on the more expensive gasoline),
d. When there is scarcity or low availability of a product, and there are many people
demanding or wanting that product, the price may _____________. (increase)
Page |2
Grade Level: 3
Scarcity is Scary
Lesson: 2
e. When the availability or supply of a product increases but not as many people want
it, the price will usually_________. (decrease)
Explain
4. Make sure that students have understanding of the terms availability, scarcity, profit,
increase, decrease, product, cost, price, goods, and service. Write each word on an index
card with a marker. Display the 10 words using a sentence chart, bulletin board, or taped
on chart paper. Words should be separated by 3-4 inches.
5. Students will play flyswatter vocabulary race. Divide the class into two groups. Each
group lines up about halfway across the room from the word cards. The first student in
each line is given a flyswatter. The teacher gives a clue, a definition, or uses one of the
words in a sentence. The first student in each line tries to be the first to cover that word
with his/her flyswatter. The team whose flyswatter covers the word first receives a point.
The team with the most points wins. Play until each student has had a chance or as long
as you desire.
Examples of clues/definitions that might be used:
 Which word means to go up? (increase)
 What word means how much you pay for something? (price or cost)
 What word means a good or a service? (product)
 Which word means an actual item that can be touched? (good)
 Which word means a business doing something for another such as cleaning?
(service)
 What word means that there’s plenty of something; there’s enough for
everyone who wants to buy it? (availability and supply)
 What word means to have less, to go down? (decrease)
 What word means that there’s not much of something; more people want it
but there’s not enough for everyone? (scarcity)
 What word means that this is how much you will have to pay for what you
are buying? (price or cost)
 What word means that this is how much money you make after all expenses
are paid; your benefit? (profit)
6. If students are having difficulty with any of the vocabulary, discuss them a bit more so
that all students have a knowledge base of these words. You may wish to bring in the
ideas expressed in step 3d and 3e.
7. Divide class in to groups of two. Distribute Activity 3.2-1 to each student and display
Visual 3.2-2. Read directions to the students then read each situation on Activity 3.2-1.
After each scenario allow time for pairs of students to discuss the scenario and record
the supply, demand and cost. Then ask the class to stand if they decided the cost of the
product should go up or stay seated if they believe the cost of the item should do down.
Allow a few students to explain why they made their choice before reading the next
scenario.
Elaborate
8. Pair students for a partner activity. Give each pair of partners a copy of Activity 3.2-2 and
a blank sheet of copy paper or colored construction paper. Have students fold the paper
Page |3
Scarcity is Scary
Grade Level: 3
Lesson: 2
in half lengthwise. Direct students to label the left column Availability of Resources/cost
decreased and the right column Scarcity of Resources/cost increased.
The students are to read the sentences on each strip and discuss with their partner
whether the cost decreased because of high availability of resources/supply or if the
cost increased because of scarcity of resources. Students cut out the sentences along
the dotted lines and glue them in the appropriate column; High Availability of
Resources/Supply or Scarcity of Resources.
Evaluate/End
9. Distribute Exit Tickets for students to complete before leaving the classroom. As
students exit the classroom, they hand the teacher a completed exit ticket.
EXTENSION
1. Last year lunches in the cafeteria cost $1.80. This year they cost $2.05. List at least
three reasons why you think the cost of a school lunch has increased.
2. Write a letter to the school principal telling him/her why you think the cost of the
school spirit shirt should be decreased. Be sure you give at least three reasons for
your argument. Think about supporting your arguments with the concepts of high
availability and scarcity of resources. (Sample student responses: Student population
has increased so price should decrease. Spirit shirts are to improve attitudes about
our school, not an income producing project.)
Page |4
Grade Level: 3
Visual 3.2-1
Scarcity is Scary
Lesson: 2
Scarcity is Scary
Abby and Bret sold every cup of ice cream they made at the Critter Carnival.
They felt it was a huge success because they took home $100 in their money
box. They had $25 in expenses so the children made a profit of $75. They
decided not to buy the trampoline because there was something they
wanted more than the trampoline. It was a trip to Giddyland. The
opportunity to visit Giddyland was going to cost them their trampoline.
Abby and Bret knew that they often have two things they want but can only
afford one of them. The choice they give up is called the opportunity cost.
Their parents understood the opportunity cost and agreed with the children.
Since they had already purchased their tickets online, the family would be
leaving for Giddyland the first of July if they had enough money for gasoline.
Mom and Dad used words like supply, demand, availability, and scarcity to
explain why they were concerned about the cost of gasoline. Abby and Bret
just didn’t understand.
Finally Mom and Dad called a family meeting. Dad said that during the last
few weeks, there had been a huge demand for gasoline. The availability or
supply of gasoline was down. He said that meant that more people were
going places and needed gasoline, and there wasn’t enough gasoline
available for all the cars going on vacation. Then he said because there was a
scarcity or shortage of gasoline, the price for a gallon of gas was going up. It
was going to cost more to fill the family car. Abby and Bret’s parents lacked
the money needed to go on the trip. They might have to borrow the money.
The children didn’t want to believe what they heard. Abby and Bret went
upstairs to Abby’s room and talked for a while. When they came downstairs,
they had an idea.
Page |5
Grade Level: 3
Scarcity is Scary
Lesson: 2
“Dad, if we can bring in additional income by selling more ice cream and
saving that money, would that help us get to Giddyland?” Abby asked.
Mom and Dad thought that was a good idea.
“I think we all should try to save a little more of our income, too,” said Dad.
With a little planning and some savings, the family was ready to leave on July
1st for their trip to Giddyland.
Page |6
Grade Level: 3
Scarcity is Scary
Lesson: 2
Visual 3.2-2
1. Ranchers reported that the good weather has allowed the cows more
time to eat pasture grass so the cows are producing more milk. The
number of families purchasing milk has decreased. Will the cost of milk
increase or decrease?
2. Abby and her mother make beaded bracelets to sell at craft shows. The
first month, they sold only 10 bracelets. Now the bracelets are becoming
very popular and they are selling between 40 and 50 bracelets at each
show. Since school begins next week, Abby will no longer be able to help
her mother make bracelets. Should Abby and her mother increase or
decrease the price of the bracelets?
3. Mr. Matherly purchased 75 umbrellas to sell during the rainy season. Due
to the drought, Mr. Matherly has only sold one umbrella in 5 weeks.
Should Mr. Matherly increase or decrease the cost of his umbrellas?
4. Florida is known for producing juicy delicious oranges. This year the
weather was too cold, and very few oranges survived the cold
temperatures. More and more consumers want to buy oranges because
they are full of vitamin C. Will the cost of the oranges increase or
decrease?
5. Temperatures this summer have been very hot and ice cream sales have
increased throughout the city. However, the newscaster has reported
that no ice cream will be delivered until the truck drivers go back to work.
It seems that truck drivers want better pay. Do you think that the cost of
ice cream will increase or decrease?
Page |7
Grade Level: 3
Scarcity is Scary
Lesson: 2
Activity 3.2-1
Listen while your teacher reads about each product. Then record if the availability of
the product increased or decreased and if the demand of the product increased or
decreased. Use the letter I to represent increase and a D for decrease. Then decide
if the cost will increase or decrease based on the availability of the product and
demand.
Product
1.
2.
3.
4.
5.
Availability of
Product
milk
bracelets
umbrellas
oranges
ice cream
Page |8
Demand
Cost
Grade Level: 3
Scarcity is Scary
Lesson: 2
Key 3.2-1
Listen while your teacher reads about each product. Then record if the availability of
the product increased or decreased and if the demand of the product increased or
decreased. Use the letter I to represent increase and a D for decrease. Then decide
if the cost will increase or decrease based on the availability of the product and
demand.
Product
1.
2.
3.
4.
5.
milk
bracelets
umbrellas
oranges
ice cream
Availability of
Product
Demand
Cost
I
D
I
D
D
D
I
D
I
I
D
I
D
I
I
Page |9
Grade Level: 3
Activity 3.2-2
Scarcity is Scary
Lesson: 2
Read the sentences on each strip and discuss with your partner whether the cost
decreased because of high availability or if the cost increased because of scarcity
of resources. Cut out the sentences along the dotted lines and glue them in the
appropriate column; High Availability or Scarcity of Resources.
A gallon of milk once cost $2.50. Lately
it has cost about $3.00 because several
large dairy farms were closed due to
unclean milking machines.
The cost of a pound of hamburger meat
will be changing soon. The Japanese
cows came down with The Mad Cow
Disease and thousands of the cattle
died.
Crackle Cereal is a favorite at the
Morton family breakfast each morning.
The corn crop did well because there
was plenty of rain and sunshine. There
are plenty of cornflakes.
The farmers planted apple seeds all
across our land. These trees did well
throughout the country because of the
bee population that pollinated the
apple blossoms.
Texas is known for growing juicy
oranges. This year the arctic blast
caused many of the branches of the
orange trees to split and fall to the
ground because of the heavy ice. The
young oranges could not be saved.
We use paper plates for dinner on the
nights we have ball games or church.
Mom said we are going to have to start
washing our dishes because the Pine Tree
Beetles have destroyed so many trees in
the forest. We need to conserve the trees
that are left.
Boll weevils were a nuisance this year
and destroyed much of the cotton crop.
I really enjoy wearing 100% cotton Tshirts and wonder what that will do to
the cost of my favorite shirts.
The school year is getting ready to
start. Stores are having clearance
sales on swim wear. There’s still a
wide selection of swim wear from
which to choose.
Due to the drought, communities can
only water their yard once a week. Now
the nurseries have an overabundance of
outdoor plants.
Coffee beans are flooding the market
because many South American
countries are learning to grow flavored
beans that make great coffee.
P a g e | 10
Grade Level: 3
Scarcity is Scary
Lesson: 2
Key 3.2-2
High Availability of Resources/cost
decrease
Scarcity of Resources/cost increase
Crackle Cereal is a favorite at the Morton
family breakfast each morning. The corn
crop did well because there was plenty of
rain and sunshine. There are plenty of
cornflakes.
Texas is known for growing juicy oranges.
This year the arctic blast caused many of
the branches of the orange trees to split
and fall to the ground because of the
heavy ice. The young oranges could not be
saved.
The farmers planted apple seeds all across
our land. These trees did especially well
throughout the country because of the bee
population that pollinated the apple
blossoms.
We use paper plates for dinner on the
nights we have ball games or church.
Mom said we are going to have to start
washing our dishes because the Pine Tree
Beetles have destroyed so many trees in
the forest. We need to conserve the trees
that are left.
Due to the drought, communities can
only water their yard once a week. Now
the nurseries have an overabundance of
outdoor plants.
The cost of a pound of hamburger meat
will be changing soon. The Japanese cows
came down with The Mad Cow Disease
and thousands of the cattle died.
Coffee beans are flooding the market
because many South American
countries are learning to grow flavored
beans that make great coffee.
Boll weevils were a nuisance this year and
destroyed much of the cotton crop. I really
enjoy wearing 100% cotton T-shirts and
wonder what that will do to the cost of my
favorite shirts.
The school year is getting ready to
start. Stores are having clearance
sales on swim wear. There’s still a
wide selection of swim wear from
which to choose.
A gallon of milk once cost $2.50. Lately it
has cost about $3.00 because several large
dairy farms were closed due to unclean
milking machines.
P a g e | 11
Exit Ticket
Exit Ticket
The most important thing I learned about scarcity is
________________________________________________
________________________________________________
________________________________________________
The most important thing I learned about availability is
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
Name:
Name:
Teacher:
Exit Ticket
Teacher:
Exit Ticket
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
________________________________________________
Name:
Name:
Teacher:
Teacher:
Savor the Savings
Grade Level: 3
Lesson Description
Lesson: 3
In this story, Bret and Abby face unexpected expenses due to not planning the
details of their trip. Food prices at Giddyland are sky high! Mother comes to the
rescue. She planned for the more expensive meals by purchasing a meal plan for
the family.
After being introduced to planned and unplanned spending decisions in the story,
students work with a partner to list the benefits and costs of making planned and
unplanned spending decisions. They then apply this learning to an activity where
they calculate the benefit or the cost of various spending decisions.
Texas Essential
Knowledge and
Skills (Target

PFL Math 3.9C: identify the costs and benefits of planned and unplanned
spending decisions

Social Studies 3.6A: identify ways of earning, spending, saving, and donating
money
Social Studies 3.6B: create a simple budget that allocates money for spending,
saving, and donating
standards)
Texas Essential
Knowledge and
Skills (Connecting

standards)
Texas Essential
Knowledge and


standards)

Math 3.4A: solve with fluency one-step and two-step problems involving
addition and subtraction within 1,000 using strategies based on place value,
properties of operations, and the relationship between addition and
subtraction
Math 3.4K: solve one-step and two-step problems involving multiplication and
division within 100 using strategies based on objects; pictorial models,
including arrays, area models, and equal groups; properties of operations; or
recall of facts

CEE Buying Goods and Services 4.7: Planning for spending can help people
make informed choices. A budget is a plan for spending, saving, and managing
income.
PFL Terms






planned spending decisions
unplanned spending decisions
costs
benefit
opportunity cost
budget
Time Required
Materials Required
45-minutes
National Standards
Education


One copy of Visual 3.3-1
One copy of Activity 3.3-1 for each pair of students
Page |1
Savor the Savings
Grade Level: 3




Lesson: 3
One copy of Activity 3.3-2 for each student
Red and green crayons for each student
One copy of Activity 3.3-3 for each student doing the extension
Vocabulary Powerpoints: Opportunity Cost and Budget
Procedure
Note to teacher: Use the Opportunity Cost and Budget Powerpoints to review or frontload
these terms.
Engage
1. Introduce the lesson by telling the students about an experience of your own when you
had unplanned spending.
Example:
Last week, I did my grocery shopping at the store. I had my list, knew what was on sale
that week, and even brought some coupons with me. Boy, I was really prepared.
However, when I started to fix dinner last night, I found that I did not have any dinner
rolls. We were going to have meat loaf, mashed potatoes and gravy, green beans, and
rolls. My husband likes dinner rolls with his meal. The dinner rolls he likes are $1.88 for 8
rolls at the grocery store. I didn’t have time to drive that far. I could go to the corner
convenience store and get rolls for $2.59. They are not as good and they cost more. What
do you think I did?
2. Allow students to speculate on your dilemma but don’t tell them the ending at this
point. Tell students that today you will share another story about Abby and Bret in which
they had a money problem. Read the story Savor the Savings on Visual 3.3-1.
Explore/Explain
3. After reading the story, check students’ comprehension by asking the following
questions:
a. How expensive was a burger basket at Giddyland? (A burger basket at Giddyland
cost $15.00.)
b. How expensive was a burger basket at the Hometown Café near their home? (A
burger basket at the Hometown Café costs $5.)
c. How much would 4 burger baskets cost at Giddyland without a meal plan? (Multiply
$15 times 4 to find out how much this meal would cost at Giddyland. $15 X 4 = $60)
d. How much would 4 burger baskets cost at Giddyland with a meal plan?
(Multiply $5 times 4 to find out how much this meal would cost with the meal plan.
$5 X 4 = $20)
e. How much did Mother save the family on burger baskets by purchasing the special
meal plan? (She saved $40.)
f. What do you think is the lesson of this story? (Sample response: Plan ahead.)
g. Why do you think planning ahead is a smart thing to do? (Sample response: It could
save money. It could keep you from getting upset. It could save you time.)
h. What might be some of the costs of making unplanned spending decisions? (Sample
response: It might cost more money, more time, and more frustration. You might
not be able to get the products you want.)
i. Many gas stations have small stores as part of the station. Other places have small
stores found on corners or places that are easy to get to. These are called
Page |2
Savor the Savings
Grade Level: 3
Lesson: 3
convenience stores. Do you think that’s a good name for them? Why or why not?
(Sample responses for why it is a good name: These stores are usually close to
neighborhoods. Since convenience stores are small, you can get and out quickly.
These stores are open for longer hours. Sample responses for why it is not a good
name: Items cost more. They may not have fresh items such as vegetables or milk.)
Elaborate
4. Have students work in pairs. Give each pair a copy of Activity 3.3-1. Direct students to
work with their partners to list 3 reasons why planned spending decisions are beneficial
and 3 reasons why making unplanned spending decisions may have an opportunity cost.
Review the terms benefits and opportunity costs, introduced to students in grade 2.
 An opportunity cost is what you give up when you decide to do something.
 A benefit is something that you receive such as goods and services, time,
convenience, or money. It satisfies your wants.
5. After 10-15 minutes or when most students have completed Activity 3.3-1, allow several
volunteers to share what they wrote.
Elaborate
6. Distribute Activity 3.3-2 and red and green crayons to each student. Go over the
directions with students. You may wish to work through the first one or two with the
class.
Read each statement.
 Color the GO light green if the action helps reach a savings goal toward a planned
spending decision.
 Color the STOP light red if the action is an unplanned spending decision.
Evaluate/End
7. On the back of Activity 3.3-2, revisit the teacher’s problem stated at the beginning of the
lesson. Reread the paragraph or retell your experience. Instruct students to write what
they think you did to solve your problem and what it cost you.
EXTENSION
Give students a copy of Activity 3.3-3. Students are to read each problem and solve it. They
should show their work in the space provided.
Social studies extension:
Lesson from the Federal Reserve Bank of St. Louis Econlowdown. Go to:
http://www.stlouisfed.org/education_resources/glo-goes-shopping/
Page |3
Grade Level: 3
Visual 3.3-1
Savor the Savings
Lesson: 3
Savor the Savings
The countdown had started. It was only six more weeks before the trip of a
lifetime would begin. The trip to Giddyland was just around the corner. For
some reason, Mother seemed a little concerned. She asked that the family
talk together that night.
“Children, we need to make a few decisions concerning our trip. Our food
cost may keep us from having as much fun as we hoped. After thinking about
it, I think we have two choices. One, we cut our food costs by taking a cooler
full of sandwich meat and drinks and return to our hotel room for every
meal.”
“But, Mom, that means we won’t have as much time to spend in the park!”
moaned Abby and Bret.
“Exactly,” said Mom. “Our second choice is finding a meal plan offered by the
park that will save us money.”
“Mom, what’s a meal plan?” asked Abby.
“A meal plan will let us buy a burger basket for $5 which is the same price we
pay at our hometown café. Without the meal plan, a burger basket will cost
$15 at Giddyland.”
“Cutting back on some items in our budget, like not going to the movies once
a week or cutting back on the number of times we go out to eat, will help us
save money to buy the meal plans at Giddyland. Purchasing the meal plan at
Giddyland will allow us to spend more time in the park. What do you think?”
“That planning ahead idea will give us more time to play at Giddyland,” said
Bret.
Page |4
Grade Level: 3
Savor the Savings
Lesson: 3
Abby added, “I like the idea of planning to save so you know you can afford
to spend on something you really want. Great idea, Mom!”
Mother bought the meal plan online that night.
Abby, Bret, and their family finally made it to Giddyland. They spent the
whole day having fun. They saw so many Giddyland characters they couldn’t
remember them all. Dad had his camera and captured every moment.
“Planning ahead is always a good idea, especially when there is not much
money to spend,” explained Mother. “Not planning ahead usually means
unexpected surprises coming out of your wallet. The only surprise I want you
to experience is which Giddyland character will sit down and have lunch with
you!”
Page |5
Activity 3.3-1
3.3-1
Planning your spending will allow
you to soar on your way to
financial success.
1. _____________________
_____________________
2. _____________________
_____________________
3. _____________________
_____________________
__________
Names:
______________________
______________________
Making unplanned spending decisions
is like throwing your money in a trash
can.
1. ______________________________
______________________________
2. ______________________________
______________________________
3. ______________________________
______________________________
Grade Level: 3
Activity 3.3-2
Savor the Savings
Lesson: 3
Name ________________________________________
_____
Planned and Unplanned Spending Decisions
spending decision.
1. Bret is saving for the fee for summer
baseball. He earned $5 for raking his
grandmother’s yard. On his way home,
he stopped at the toy store to spend his
money.
2. Abby is saving for roller skates She
received $10 on her birthday. She
deposited the $10 in her piggy bank.
3. Abby’s mom is saving for the family’s
summer vacation. She compares prices
and shops at a discount store.
4. Luke has a summer job working as a
lifeguard. He put $50 from his earnings
in his pocket on Monday. Five days later
he had no money left. He could not
remember how he spent most of this
money.
Page |7
Grade Level: 3
Savor the Savings
Lesson: 3
5. While at the store with her cousin, Rosa
saw a beautiful pink hat with sparkling
gems. She had just enough money in her
purse, so she bought the hat.
6. Lee needs new shoes for school. After
comparing ads, he decides to use a
coupon that will save him $15.
7. Aunt Carolyn makes a shopping list
before going to the store. She does not
want to forget anything and have to buy
it at the convenience store on the
corner. She says the prices there are too
high.
8. Dad gave Charlie a piggy bank so he
could start a saving plan. After making
two deposits into the piggy bank, he
heard the ice cream truck coming down
the street. He grabbed the money from
his piggy bank to buy ice cream.
9. Mia received $25 for her birthday. She
10. Justin earns $7.50 every week for doing
has wanted a portable media player for a
his household chores. By the end of the
while and is saving all her money until
week, he has usually spent all his money
she has enough to buy one.
on snacks or toys or at the game room.
Page |8
Grade Level: 3
Savor the Savings
Lesson: 3
Key 3.3-2
Planned and Unplanned Spending Decisions
spending decision.
1. Bret is saving for the fee for summer
baseball. He earned $5 for raking his
grandmother’s yard. On his way home,
he stopped at the toy store to spend his
money.
2. Abby is saving for roller skates She
received $10 on her birthday. She
deposited the $10 in her piggy bank.
3. Abby’s mom is saving for the family’s
summer vacation. She compares prices
and shops at a discount store.
4. Luke has a summer job working as a
lifeguard. He put $50 from his earnings
in his pocket on Monday. Five days later
he had no money left. He could not
remember how he spent most of this
money.
Page |9
Grade Level: 3
Savor the Savings
Lesson: 3
5. While at the store with her cousin, Rosa
saw a beautiful pink hat with sparkling
gems. She had just enough money in her
purse, so she bought the hat.
6. Lee needs new shoes for school. After
comparing ads, he decides to use a
coupon that will save him $15.
7. Aunt Carolyn makes a shopping list
before going to the store. She does not
want to forget anything and have to buy
it at the convenience store on the
corner. She says the prices there are too
high.
8. Dad gave Charlie a piggy bank so he
could start a saving plan. After making
two deposits into the piggy bank, he
heard the ice cream truck coming down
the street. He grabbed the money from
his piggy bank to buy ice cream.
9. Mia received $25 for her birthday. She
10. Justin earns $7.50 every week for doing
has wanted a portable media player for a
his household chores. By the end of the
while and is saving all her money until
week, he has usually spent all his money
she has enough to buy one.
on snacks or toys or at the game room.
P a g e | 10
Grade Level: 3
Activity 3.3-3
Savor the Savings
Lesson: 3
Name ________________________________________
All of the problems in this activity are about planned and unplanned spending decisions. Read each of
the problems and answer the questions. Use the space provided to show your work. Be sure to label
your answer.
1. You got home from ball practice with just enough time to change clothes and grab
your baby-sitting money before your friend’s mom picked you up for the movies.
You have been planning this night for 3 weeks. You even babysat your cousin for
$10 so you could pay the $5 admission and have money for a snack with two
dollars left over to put toward your savings for a new baseball glove. Now you are
starving since you didn’t have time for supper. At the snack bar, you decide to buy
nachos for $3.25, a small drink for $1.15, and a small package of M&M’s for 50₵.
You had planned to spend $8.00. How much more did the unplanned spending
cost you?
2. Mom and Dad said Billy could have a lemonade stand in the front yard over
Memorial Day weekend. Billy planned what he would need and got all of his
supplies together. That weekend Billy sold lemonade for 65₵ per cup. The
temperature was so hot that he had to use more ice than he had anticipated. The
Watson family of 6 had just walked down the street to Billy’s stand when Billy ran
out of ice. Ice-cold lemonade is good on a hot day so Billy closed down his stand
and went to the store for a bag of ice. How much money would Billy lose if each
person in the Watson family had bought lemonade?
P a g e | 11
Grade Level: 3
Savor the Savings
Lesson: 3
3. Mrs. Trevino is proud of the fact that she is a smart shopper. Hamburger meat is
usually $3.99 per pound. This week it is on sale for $2.99 per pound. Mrs. Trevino
bought 6 pounds of hamburger meat for a cookout. She also bought pickles for
$2.89 and used a coupon for 65₵ off the jar of pickles. Potato chips were buy one
get one free. The potato chips cost $3.49 for a bag. Mrs. Trevino bought 2 bags.
How much money did Mrs. Trevino save by planning her grocery purchases?
4. Chuck was planning a trip to California. He planned to fly and knew that flight
fares were different at different airlines. He looked up the flight schedules from
Houston, Texas to Los Angeles, California to check prices and times. When Chuck
looked online, one airline had a flight price of $748 and would take 3 hours and 40
minutes. The price was $625 for another airline and would take 4 hours and 15
minutes. A third airline had the price for $592 and would take 4 hours and 55
minutes because the plane had one stop in Denver. Which flight do you think
Chuck booked? Why do you think he chose this flight? What are the costs and
benefits of his choice?
P a g e | 12
Savor the Savings
Grade Level: 3
Key 3.3-3
Lesson: 3
Name ________________________________________
All of the problems in this activity are about planned and unplanned spending decisions. Read each of
the problems and answer the questions. Use the space provided to show your work. Be sure to label
your answer.
1. You got home from ball practice with just enough time to change clothes and grab
your baby-sitting money before your friend’s mom picked you up for the movies.
You have been planning this night for 3 weeks. You even babysat your cousin for
$10 so you could pay the $5 admission and have money for a snack with two
dollars left over to put toward your savings for a new baseball glove. Now you are
starving since you didn’t have time for supper. At the snack bar, you decide to buy
nachos for $3.25, a small drink for $1.15, and a small package of M&M’s for 50₵.
You had planned to spend $8.00. How much more did the unplanned spending
cost you?
Problem solving steps may vary.
$3.25
1.15
+
.50
$5.00 admission price
+
4.90 snacks
$9.90 total spent
$9.90 total spent
-
8.00 planned spending
$1.90 additional spent
$4.90
2. Mom and Dad said Billy could have a lemonade stand in the front yard over
Memorial Day weekend. Billy planned what he would need and got all of his
supplies together. That weekend Billy sold lemonade for 65₵ per cup. The
temperature was so hot that he had to use more ice than he had anticipated. The
Watson family of 6 had just walked down the street to Billy’s stand when Billy ran
out of ice. Ice-cold lemonade is good on a hot day so Billy closed down his stand
and went to the store for a bag of ice. How much money would Billy lose if each
person in the Watson family had bought lemonade?
65₵
390₵ = $3.90 lost while getting more ice
X 6
390₵
P a g e | 13
Grade Level: 3
Savor the Savings
Lesson: 3
3. Mrs. Trevino is proud of the fact that she is a smart shopper. Hamburger meat is
usually $3.99 per pound. This week it is on sale for $2.99 per pound. Mrs. Trevino
bought 6 pounds of hamburger meat for a cookout. She also bought pickles for
$2.89 and used a coupon for 65₵ off the jar of pickles. Potato chips were buy one
get one free. The potato chips cost $3.49 for a bag. Mrs. Trevino bought 2 bags.
How much money did Mrs. Trevino save by planning her grocery purchases?
$3.99
2.99
$1.00 saved per pound
$1
x
$6.00 saved on hamburger
6
$6
.65 coupon savings
+
3.49 chip savings
$10.14 total savings
4. Chuck was planning a trip to California. He planned to fly and knew that flight
fares were different at different airlines. He looked up the flight schedules from
Houston, Texas to Los Angeles, California to check prices and times. When Chuck
looked online, one airline had a flight price of $748 and would take 3 hours and 40
minutes. The price was $625 for another airline and would take 4 hours and 15
minutes. A third airline had the price for $592 and would take 4 hours and 55
minutes because the plane had one stop in Denver. Which flight do you think
Chuck booked? Why do you think he chose this flight? What are the costs and
benefits of his choice?
Answers may vary. The benefit may be monetary savings if Chuck books a lower fare but the
cost will be more time in flight. He may opt for less time spent and pay a higher fare.
P a g e | 14
Flat Broke
Grade Level: 3
Lesson Description
Lesson: 4
In this lesson Abby and Bret learn about using credit. The family planned for their
back-to-school expenses but then incurred unexpected expenses in needing new
tires for the family car. Dad, with a little help from Mom, explained why people use
credit, a simplified explanation how credit works, and what paying interest on
credit means.
Abby and Bret’s parents explained that there are several reasons why people use
credit. This lesson illustrates that if money is lacking for unplanned and/or
emergency spending, credit is often used. The lesson also provides a simplified
explanation of how credit works and what it means to pay interest on credit
charges. The term scarcity is used to help students understand that families may
have scarce resources and may have to borrow money or use savings to pay for
goods and services.
Students are presented with several situations and must decide if they think
payment will be made with cash or credit. After this activity, students play a
spinner game in groups of 2-4 students. Players make purchases and pay with cash.
When their cash or savings run short, they must then use credit and pay interest.
The amount to be repaid accumulates. The winner is the student having the lowest
total to be repaid. Students write a short paragraph to assess their learning.
Texas Essential
Knowledge and
Skills (Target

PFL Math 3.9D: explain that credit is used when wants or needs exceed the
ability to pay and that it is the borrower’s responsibility to pay it back to the
lender, usually with interest

Social Studies 3.7A: define and identify examples of scarcity


subtraction
PFL Math 3.9B: describe the relationship between the availability or scarcity of
resources and how that impacts cost
PFL Math 3.9C: identify the costs and benefits of planned and unplanned
spending decisions
standards)
Social Studies Texas
Essential Knowledge
and Skills (Connecting
Standards)
Texas Essential
Knowledge and
standards)


National Standards
Education


CEE Using Credit 4.1: Interest is the price the borrower pays for using someone
else’s money.
CEE Using Credit 4.2: When people use credit, they receive something of value
now and agree to repay the lender over time or at some date in the future,
with interest.
Page |1
Flat Broke
Grade Level: 3
PFL Terms









Time Required
45-minutes
Materials Required










Lesson: 4
credit
interest
cash
unplanned spending
planned spending
scarcity
money
wants
needs
One copy of Visual 3.4-1 and Visual 3.4-2
One copy of Activity 3.4-1 (spinner) for each group of 2-4 students
Paper clip for each group of 2-4 students
One copy of Activity 3.4-2 (recording sheet) for each student and one for a
visual
One index card for each student
Green and red markers or crayons for each student or pair of students
One craft stick for each student
Glue and/or stapler to affix index card to craft stick
Paper and pencil for each student
Vocabulary Powerpoints: Money, Wants and Needs, and Scarcity
Procedure
Note to teacher: Use the Money, Wants and Needs, and Scarcity Powerpoints to review or
frontload these terms.
Engage
1. Introduce the lesson by asking the following questions:
 Have you ever been at the store and seen someone who planned to buy something
and then discovered he or she didn’t have enough money to pay for the item? If so,
what happened next? (Accept any reasonable answer.)
 Can you think of a term that we recently used that describes not having enough of a
resource? (Scarcity means not having enough of a resource.)
 If someone doesn’t have enough to pay for what they need or what they want, they
have a scarcity of _______________. (money)
 Families often have unplanned expenses that occur that require the need to spend
money they may not have. They may also have planned expenses such as buying a
car that requires more money than the family has. So, what are other ways to pay
for wants and needs when there is a scarcity of cash? (Sample responses: take out a
loan, use a credit card, write a check, or use a debit card) Note: If students respond
with write a check or use a debit card, explain that these methods of payment are
similar to using cash because the person writing the check or using the debit card
must have at least that much money in their bank account.
2. Allow students to share what they think, but do not correct their answers for the
Page |2
Grade Level: 3
Flat Broke
Lesson: 4
following questions at this time.
 What is credit?
 What is a credit card?
 How does a credit card work?
Explore/Explain
3. Tell students that in today’s story, Bret and Abby are going to learn about credit. Read
the story Flat Broke to the class. The story is found on Visual 3.4-1.
questions:
a. What planned expenses did the family have for the new school year? (The family had
planned to buy new shoes and school supplies.)
b. What were the unplanned expenses that Mom and Dad had to pay for with a credit
card? (Mom and Dad hadn’t planned on having to get the car towed and purchase
new tires.)
c. What was the result of not being able to pay the entire credit bill when it was due?
(The credit card company added additional interest charges to the bill.)
d. What was the advantage of paying off the credit card bill in two months instead of
six? (When Mom and Dad paid off the credit card bill early, the family was
charged less interest for the use of the money for two months. They would have
had to pay more interest if they had borrowed the money for six months.)
e. Was paying for the car repairs a responsible use of the credit card? (Yes, Dad didn’t
have the cash in savings and needed to get the family home.)
f. Who paid the car repair shop? (The credit card company paid the car repair shop.
Now Abby and Bret’s parents owe the credit card company for this loan.)
5. Explain to students that sometimes people have emergencies. In this case, credit is
useful. However, when people don’t have the money to pay the credit card company in
full, buying items that aren’t necessary and only serve to satisfy their wants is
irresponsible.
a. What is a want? (It is something you don’t have to have. For example, you don’t
have to have new toys or candy.)
b. How does this illustrate scarcity? (Money is scarce. There is not enough money to
pay for all our wants and needs.)
Evaluate
6. Distribute an index card to each student and a green and red marker or crayons to each
pair of students. Instruct students to write Cash on one side of the card in green and to
write Credit on the other side of the card in red. Use tape or a stapler to affix the index
card to the end of a craft stick. Students will hold up their craft stick on the count of
three and display whether they should use Cash or Credit after you read each scenario.
Model for students how they should hold their answer paddle close to their chest just
under their chin.
Elaborate
7. Display Visual 3.4-2. Tell students that you are going to read one scenario at a time. After
each scenario is read, students are to decide if the scenario describes a situation in which
the person would pay in cash or a situation in which the person would pay with credit.
After reading each scenario, tell students that on the count of three, they are to hold up
their answer paddles so that the payment method faces the teacher. If there is
Page |3
Grade Level: 3
Flat Broke
Lesson: 4
agreement among students, ask a volunteer to explain his/her answer choice. If there is a
difference of opinion, have student volunteers representing each answer choice explain
their thinking and tell why they selected the payment method they did.
Suggested answers: 1. Credit
2. Cash
3. Credit
4. Cash
5. Cash
6. Credit
7. Credit
8. Cash
9. Credit
10. Cash
8. Model playing Cash or Credit. You will need a copy of Activity 3.4-1 (spinner) and a copy
of Activity 3.4-2 (recording sheet).
Goal of game: Be the player having to repay the least amount of credit after 10 spins or a
predetermined time by determined by the teacher.
a. The person with the longest last name goes first. If there is a tie with the length of
last names, alphabetize those and the name coming first begins play. The play then
moves in a clockwise direction.
b. On a player’s first spin, the player records the amount of purchase in the cash
column.
c. On the second spin, the player adds the amount spent to the amount recorded in the
previous turn. The players continue adding items until they reach $200 or do not
have enough money to make another purchase. At the point when the player does
not have enough cash to make the purchase, he or she will use credit to make the
purchase.
d. Players continue adding items until $200 is reached or they do not have enough
money to make another purchase. For example, if the player has only $30 in cash
and the purchase item costs $50, the player will put the entire purchase on credit.
e. For the remaining spins, the player must move to the credit column.
f. The player records the cost of the item and the cost of interest to be paid. The player
will then find the total amount owed for that item and record.
g. After each player has had a total of 10 spins or time runs out, the player finds the
sum of all items purchased with credit, the sum of the interest to be paid, and the
sum of the total amount of credit to be repaid.
h. Winner is the player with the least amount of credit to be repaid.
Note: Use the example on top of Activity 3.4-2 (recording sheet) to model recording each
turn.
Evaluate/End
9. Place students in groups of 2-4. Distribute one copy of Activity 3.4-1 and a paper clip to
each group. Give each player a copy of Activity 3.4-2. Remind students of the game
rules listed in step 8. Then direct them to play the game. Monitor groups as they play.
10. As groups finish playing Cash or Credit, have students take out a sheet of paper and
write a short paragraph explaining why people use credit. They should also tell the cost
of using credit and describe the borrower’s responsibilities. Have students use financial
literacy terms, such as planned expense, unplanned expense, scarcity, credit, interest,
and/or cash.
Page |4
Flat Broke
Grade Level: 3
Lesson: 4
EXTENSION
1. Survey 10 adults. You may survey parents or other family members, adults who work at
your school, neighbors, and/or adult friends. Only survey adults you know and trust. Ask
them to tell you three times when they have used credit to make a purchase. Getting a
loan is considered credit as it is borrowing money. Any time one does not pay with cash,
check, or debit, they are using credit.
Take the results of your survey and make a graph. Make general categories to display the
data. Some categories might include house, car, vacation, appliances (washer, dryer,
refrigerator, TV, etc.), or technology (computer, tablet, etc.). Be sure to label the
horizontal base line (x-axis) and the vertical base line (y-axis). Give your graph a title.
2. You want to buy a skateboard and have been saving your money for this for weeks. You
now have $50.00 but it will cost $100.00 for everything you want. This week the
skateboard is on sale for $60.00. Your parents will loan you $10.00, but you will have to
pay them $1.00 in interest each month until the loan is paid off. Explain the benefits of
buying the skateboard now, and then explain the cost of doing that. Tell whether you
think this is a planned or unplanned expense.
Benefits: Money will be saved if the skateboard is purchased now.
$100.00-$60.00= $40.00 savings less $1.00 interest per month until the $10.00 loan is
repaid
Costs: $1.00 interest per month until the $10.00 loan is repaid. You will have $1.00 less to
spend each month until you have paid your debt.
Buying the skateboard is a planned expense. The skateboard going on sale and buying it
now is an unplanned expense.
Page |5
Grade Level: 3
Flat Broke
Lesson: 4
Visual 3.4-1
Flat Broke
Summer vacation was over, and it was time to get back to school. This was
always an exciting time of the year. It meant new shoes and new school
supplies. Mom and Dad decided to put the school expenses on their credit
card because they knew they could pay it off at the end of the month
without the credit card company charging interest. Paying interest means
paying a little extra money for borrowing money.
On the way back from buying their new shoes, the car began to shake. The
family felt like they were on a roller coaster ride bouncing up and down. Dad
stopped the car and got out. That’s when he realized the car had a flat tire.
He would normally have just replaced the flat tire with the spare tire, but the
spare tire didn’t look too dependable. So Dad decided to have the car towed
by the car repair shop. The cost for towing was $40. Dad didn’t have enough
cash money so he paid for it with his credit card.
Once the family made it to the car repair shop, the mechanic put the car up
on the lift. He showed Dad that all four tires were in bad shape, and they
could blow out at any time. Dad made the decision to replace all four tires.
He always says, “Safety first.” Safety in this case cost $600! Each tire was
$150. Again, Dad was forced to put the bill on his credit card because there
wasn’t enough money in savings.
The bill came in the mail at the end of the month. Mom and Dad had enough
money to pay for the new shoes and the school supplies, but they didn’t
have enough to pay for the towing and car repairs which amounted to $640.
“How are we going to pay the car repair shop when we don’t have enough
money to pay the credit card bill?” Bret asked his parents.
Page |6
Grade Level: 3
Flat Broke
Lesson: 4
Mom and Dad told Abby and Bret to sit down and then they explained how
credit works.
“Well, kids, the car repair shop has already been paid by the credit card
company. Now your mom and I have to repay the credit card company. They
will let us pay a little each month until we pay them back,” Dad explained. “In
addition to the money we borrowed, we will have to pay extra money called
interest. Interest is the fee the credit card company or financial institution
charges for lending money to us. In other words, it is extra money we pay for
the benefit of borrowing money.”
Mother added, “Paying cash to the car repair shop would cost less than
putting it on a credit card. Paying with a credit card usually results in paying
interest on the money we borrowed. If we pay the whole credit card bill
when it is due, we will avoid paying interest. If it takes longer to pay the bill,
then we have to pay interest. That is why saving for an emergency is so
important.”
Dad agreed with Mom and continued, “Unexpected things can happen at any
time. We should be able to pay off that credit card bill in two months, and
that will reduce the amount of interest we will pay. Besides, whenever you
borrow anything, it is the borrower’s responsibility to return it. When you
borrow money, it’s only right that you pay it back.”
“We had a wonderful vacation. Now we have a wonderfully safe car. Let’s
save for the future. Then we might be able to pay with cash instead of using
a credit card.”
Page |7
Grade Level: 3
Visual 3.4-2
Flat Broke
Lesson: 4
How will they pay?
1. The Anderson family’s washing machine broke down. The family of 8 has many
loads of clothes to wash each week. A new washing machine costs $800. Mr. and
Mrs. Anderson have $600 in their bank account.
Do you think they will pay with cash or credit?
2. Sam has been saving for six months in order to buy a new bike. He has $150
saved and wants a bike that costs $125.
Do you think he will pay with cash or credit?
3. The Gomez family lives in a house with very large yard. Mr. Gomez needs a riding
lawnmower to cut the grass. The mower will cost about $500. Mr. Gomez has
$400 in his bank account and can get a low interest loan from the store.
Do you think the Gomez family will pay with cash or credit?
4. Mother wants to have a manicure and pedicure so that the color of her fingernails
and toenails match. It will cost $35. Mother babysat the neighbor’s twins and
made $40.
Do you think Mother will pay with cash or credit?
5. Annmarie is going to buy material for her new dress. The same dress in the dress
shop would cost $75. Annmarie can sew the same dress for $10. She was paid $20
last night for dog walking.
Do you think Annmarie will pay with cash or credit?
Page |8
Grade Level: 3
Flat Broke
Lesson: 4
6. Carson wants to buy the latest video game at the discount store. He hasn’t saved
the money needed, so he asks his Dad for a loan. Dad doesn’t have enough cash
in his wallet so he pulls out a credit card and hands it to the clerk.
Do you think Dad will be paying with cash or credit?
7. Fantastic Furniture is having a big sale. All living room furniture is half off. Mother
and Dad want a living room set that cost $2000. Today is the last day to pay only
$1000 for the furniture. Mother and Dad have $800 in their bank account.
Do you think Mother and Dad will be paying with cash or credit?
8. Sam and Ella want to take their Mom and Dad out to dinner for their anniversary.
They plan on eating pizza. Their piggy banks, when combined, have a total of $53
saved.
Do you think Sam and Ella will be paying with cash or credit?
9. Robert wants to join the baseball team at school. The school will provide his
uniform and equipment to be used during the games. The final cost of having his
own practice equipment and shoes will be $100. Robert’s parents don’t have that
much extra money. Robert is looking for someone who would trust him to pay
back the money.
Do you think Robert will be paying with cash or credit?
10. Once the Willis family paid off their $300 monthly car payment, they made a
promise to themselves to continue putting the $300 into a savings account each
month. They have been doing this for five years and have saved about $18,000.
The family needs a second car. They find a small economy car that costs $17,000.
They could save about $2,500 in interest over five years if they pay cash.
Do you think the Willis family will be paying with cash or credit?
Page |9
Grade Level: 3
Activity 3.4-1
Flat Broke
Cash or Credit?
Name _______________________________
P a g e | 10
Lesson: 4
Flat Broke
Grade Level: 3
Lesson: 4
Activity 3.4-2
Cash or Credit?
Each player gets 10 spins. Cash is spent until the player has used $200 and then the
player must use credit. The goal is to be the player with the least amount of credit to
repay. See the examples below to get information on completing the chart.
Cash
Credit
Cost
Total cash spent
Cost
$100
$25
$100
+ $25
$125
$25
$100
Interest
Total credit for
item
$2.50
$10.00
$27.50
$110.00
+
+
+
+
+
+
+
+
+
Make sure you do not go over
TOTAL CREDIT TO
REPAY
$200
P a g e | 11
+
=
Pooling Our Savings
Grade Level: 3
Lesson Description
Lesson: 5
In lesson 5, Dad and Mom call a family meeting for the purpose of spending some
of the money the family has been saving. Bret, Abby, Mom and Dad each present a
different plan for their savings. The family makes a decision that pleases everyone.
Students brainstorm reasons that people save and then complete an activity by
writing examples of savings and their estimated costs in the correct category.
Students then solve mathematics problems using that information.
Texas Essential
Knowledge and
Skills (Target

PFL Math 3.9E: list reasons to save and explain the benefit of a savings plan,
including for college

money
standards)
Texas Essential
Knowledge and
Skills (Connecting

standards)
Texas Essential
Knowledge and
standards)




National Standards

Math 3.2D: compare and order whole numbers up to 100,000 and represent
comparisons using the symbols >, <, or =
subtraction
Math 3.4K: solve one-step and two-step problems involving multiplication and
division within 100 using strategies based on objects; pictorial models,
including arrays, area models, and equal groups; properties of operations; or
recall of facts
Education

CEE Saving 4.2: When people save money, they give up the opportunity to
spend that money to buy things now in order to buy things later.
CEE Savings 4.4: People set savings goals as incentives to save. One savings
goal might be to buy goods and services in the future.
CEE Savings 4.5: A savings plan helps people reach their savings goals.
PFL Terms








saving
savings goal
savings account
savings plan
wants
needs
budget
interest

Page |1
Pooling Our Savings
Grade Level: 3
Time Required
45-minutes
Materials Required






Lesson: 5
One copy of Activity 3.5-2 for each student
Chart paper
Markers
One copy of Activity 3.5-3 for students doing extension
Vocabulary Powerpoints: Wants and Needs and Budget
Procedure
Note to teacher: Use the Wants and Needs and Budget Powerpoints to review or frontload
these terms.
Engage
1.
Introduce the lesson by saying to students:
We have been learning about financial literacy. We’ve talked about earning income,
credit, buying goods and services and the things that affect those costs. Today our lesson
is about something else people can do with money. What do you think that might be?
Allow students to offer several responses. One of the responses given should be saving.
Then ask the following questions.




Explore/Explain
What do you know about saving money?
Why do people save money?
Where do people save money?
Where do you save money?
2.
Read the story Pooling Our Savings. The story is on Visual 3.5-1.
3.
After reading the story, check students’ understanding by asking questions such as the
following:
a. Why did Dad and Mom call a family meeting? (The family had saved money for
emergencies, and Dad and Mom wanted them to help decide on a long-term
savings goal.)
b. How much had the family been saving each month? (The family saved $200 every
month.)
c. What was an added benefit for Abby and Bret’s family to keep their savings in a
bank? (The bank paid the family a small amount in interest.)
d. What was Abby’s idea for spending the money? (Abby’s idea was another trip to
Giddyland.)
e. What was Bret’s idea for spending the money? (Bret’s idea was an above ground
pool and deck.)
f. What was Mom interested in doing with a portion of the money? (Mom wanted to
start a college savings account for both Bret and Abby with a portion of the
money.)
g. What was Dad interested in doing with a portion of the money? (Dad had the same
idea as Mom.)
Page |2
Pooling Our Savings
Grade Level: 3
Lesson: 5
h. What did the family finally decide to do? (The family decided to start savings
accounts for college and to order the supplies for the pool and deck.)
Explain
4. Review with students that by saving a small amount of money each week or each month,
their money will grow (or accumulate). Then, they can buy things that they cannot afford
now. Further, if they keep their money at a bank or credit union, their money will earn
interest. Saving takes discipline and patience, but saving early and saving often, can help
you reach your savings goal.
5. Create three columns on the board or chart paper. Label one column Reasons Abby &
Bret’s Family Saved. Have students share reasons the family saved. List these reasons in
this column. (Sample responses: vacation, backyard pool and deck, college,
emergencies). Label the second column Other Reasons to Save. Have students
brainstorm other reasons that people save money. Suggest that they think about why
their families or others they know may save. List students’ responses in the second
column. Label the third column Benefits of Saving. Help students come up with benefits
of saving money. (Sample responses: have money for emergencies, to accumulate
enough money for your spending goals, to have enough money so you can pay cash
and avoid interest fees, to buy things you cannot afford now, etc.)
Elaborate
6. Distribute Activity 3.5-2 to students. Direct students’ attention to the four categories on
the page and explain that these are some general categories for which many people may
save. Revisit the list constructed with students’ input and see if any of these were
named. The word box at the bottom of the page lists purchases and their costs for which
a family saved. Direct students to use the examples of reasons to save from the word box
and write the reasons under the correct category. Then answer the questions on the
second page.
Evaluate/End
7. Check students’ answers on Activity 3.5-2. Clarify any misunderstanding that students
have. End the lesson by asking students the following questions:
a. Which examples do you think is most important to include in the savings goal? Why?
b. How can having a savings plan help you achieve your goals? (A plan will help you
save regularly and not be tempted to spend the money in other ways. By saving
regularly every week or every month you can ‘see’ the money grow.)
EXTENSIONS
1.
Distribute Activity 3.5-3 to each student. Have students solve savings problems.
2.
Write a poem or a song about savings. You might wish to write an acrostic poem using
the word SAVING. To do this, first write the word SAVING vertically and use each letter
to begin the first word in a phrase or a sentence. Each phrase should describe
something about saving. Be prepared to share it with the class.
3.
Home Connection: Have students share the Saving for College Resources with their
parents by providing the following link. http://economicstexas.org/?page_id=5703
Page |3
Pooling Our Savings
Grade Level: 3
Lesson: 5
Visual 3.5-1
Pooling Our Savings
Dad and Mom called a family meeting to share some good news.
“Our family has been doing a great job of saving money. Do you realize that we have
been putting $200 each month into our savings account? We are careful not to spend
over $50 each week on entertainment and unnecessary expenses so we can meet our
savings goal. And as an added benefit, the bank pays us a small amount of money to
save called interest. We now have emergency savings to pay for unexpected costs such
as car repairs, doctor bills, and appliances that don’t work. In addition, we have a
savings in case something happens to Mom or Dad’s jobs. We can now start saving for a
long-term goal. Long-term goals are things our family would like to see happen next
year or later. I want each of you to think about the best use of this money and write a
short paragraph explaining why your plan would be the best for our family. Remember,
we don’t have to spend all of the extra money. Does everyone understand?”
Abby and Bret were excited. They couldn’t wait to start writing. About 15 minutes later
everyone, including mom and dad, were ready to read his or her plan to the family.
“OK, children, who wants to go first?” asked Dad.
“Let me, let me,” shouted Abby.
Dad handed Abby the pretend microphone.
“Dear family, thank you for allowing me to tell you my idea for next summer. Our family
had so much fun at Giddyland last summer that I would like to go back. The park is huge,
and we only experienced about half of the wonderful rides and shows. The family that
plays together, stays together.”
The family clapped and told Abby she had a good idea. Bret was the next one to
volunteer. He picked up the microphone and began to read.
“Hi, family. My name is Bret.”
Page |4
Grade Level: 3
Pooling Our Savings
Lesson: 5
Mom and Dad laughed, and Abby giggled because they knew his name!
Bret continued, “I feel that it is important that we play together for more than a week
each year. That is why my idea is to buy an above-ground pool and build a deck around
it. We could have a ‘staycation’ all summer long. Abby and I could swim and play water
volleyball. Mom and Dad could rest on the deck under a big umbrella while sitting in
lounge chairs and drinking sweet tea. Thank you for listening to my big idea.”
Mom and Dad looked at each other and both began to clap at the same time.
Dad looked at Bret and said, “Son, you put a lot of thought into that idea. Nice work.
Mom, it’s your turn now.”
“Yes, Dad, I just wanted to say how proud I am of this family for making such an effort to
build up our savings account at the bank. Each month I watched our money grow and
grow. We concentrated on providing for our needs, but we kept our wants to a
minimum. I only have one request. I would like to take part of our savings and start a
college savings account for both Abby and Bret.”
Dad, Abby, and Bret all stood up and cheered. That was the best idea any of them had
heard. Dad said, “That is exactly the idea that I had, too.”
The family discussed how Bret and Abby might go to a four year college or they could
attend a two year college to receive an associate’s degree
The family took a vote to continue to save for the family, for the college savings and to
build an above ground pool. They set up a budget for their savings and spending plan.
The meeting was adjourned!
Page |5
Pooling Our Savings
Grade Level: 3
Activity 3.5-2
Lesson: 5
Name _______________________________________
Look at the list of reasons someone may decide to save money. Choose examples of each reason from
the word box and write them under the correct category. Then answer the questions below the chart.
Entertainment
Future Life Plans
cost
Total cost
Home Repairs
Emergencies
cost
Total cost
cost
Total cost
Word Box
vacation ($3,000)
broken arm ($800)
college
car repair ($600)
new roof ($3,000)
lost job ($18,000)
retirement
new boat ($15,000)
flooring ($1,500)
big screen TV ($1,200)
job training
air conditioning/
heating repairs
($1,000)
Page |6
Grade Level: 3
Pooling Our Savings
Lesson: 5
Use your answers on the first page to answer the following questions.
1. Which category has the greatest amount for which the family is saving?
_______________________________________ How much is it? _____________
2. Which category has the least amount for which the family is saving?
_______________________________________ How much is it? _____________
3. What is the difference between the
amount the family should save for
home repairs and for emergencies?
4. How much less does the family need to
save for a big screen TV and flooring than
for the roof and car repair?
5. If the family uses their vacation savings, 6. It is recommended that a family have
air conditioning repair savings, and pays
enough savings to cover 6 months
the doctor’s bill for the broken arm this
expenses in the event that an adult would
year, how much of their savings will
lose his/her job. If the family saves
they spend?
$18,000 for this, how much money would
they have to use each month in case of a
job loss?
7.
Why do you think there are no costs written by the examples listed under Future Life
Plans?__________________________________________________________________
_________________________________________________________________________
Page |7
Pooling Our Savings
Grade Level: 3
Key 3.5-2
Lesson: 5
Name _______________________________________
Look at the list of reasons someone may decide to save money. Choose examples of each reason from the word
box and write them under the correct category. Then answer the questions below the chart.
Entertainment
Future Life Plans
cost
college
vacation
$3,000
retirement
big screen TV
$1,200
job training
new boat
$15,000
Total cost
Home Repairs
$19,200
Emergencies
cost
cost
flooring
$1,500
lost job
roof
$3,000
broken arm
$800
air conditioning/heating
system
$1,000
car repair
$600
Total cost
$5,500
$18,000
Total cost
$19,400
Word Box
vacation ($3,000)
broken arm ($800)
college
car repair ($600)
new roof ($3,000)
lost job ($18,000)
retirement
new boat ($15,000)
flooring ($1,500)
big screen TV ($1,200)
job training
air conditioning/
heating repair ($1,000)
Page |8
Grade Level: 3
Pooling Our Savings
Lesson: 5
Use your answers on the first page to answer the following questions.
1. Which category has the greatest amount for which the family is saving?
__Emergencies___________________________ How much is it? _$19,400_____
2. Which category has the least amount for which the family is saving?
__Home Repairs__________________________ How much is it? _$5,500______
3. What is the difference between the
amount the family should save for
home repairs and for emergencies?
4. How much less does the family need to
save for a big screen TV and flooring than
for the roof and car repair?
$1,200
+ 1,500
$2,700
$19,400
- 5,500
$13,900
1. If the family uses their vacation savings,
air conditioning repair savings, and pays
the doctor’s bill for the broken arm this
year, how much of their savings will
they spend?
$3,000
1,000
+ 800
$4,800
$3,000
+ 600
$3,600
$3,600
- 2,700
$ 900
2. It is recommended that a family have
enough savings to cover 6 months
expenses in the event that an adult would
lose his/her job. If the family saves
$18,000 for this, how much money would
they have to use each month in case of a
job loss?
$18,000 ÷ 6 =$3,000
3. Why do you think there are no costs written by the examples listed under Future Life
Plans? These are costs that can vary greatly. Where you go to college and the length of
time you are in college affect the cost. The type of vocational job training and the length of
time will affect the cost. Retirement needs are based on expenses and where you live.
Page |9
Grade Level: 3
Pooling Our Savings
Lesson: 5
Activity 3.5-3
Lexi, Peyton, Sydney, and Colton each have a savings goal and a savings plan. Read their
plans and then answer the questions.
1. Lexi wants to buy earphones that cost
2. Peyton wants to go to basketball camp
$24 including tax. She knows that she can
which starts in 12 weeks. The cost for this
save $1.50 each week if she gives up her
camp is $45. His parents have agreed to
afterschool snack. How many weeks will
pay Peyton $3 every week to take out the
it take Lexi to save for her earphones?
garbage and keep the garage clean. If
Explain how you arrived at your answer.
Peyton saves all his earnings each week,
how much more money will Peyton need
to go to basketball camp? Explain how
you arrived at your answer.
3. Sydney’s saving goal is to save $17 so she 4. Colton is only 10 years old, but he knows
can buy a pair of gloves for the winter. If
that he wants to go college to be a
winter starts in 9 weeks, about how
banker. Therefore, he has decided to put
much will Sydney need to save each
half of his weekly allowance in a college
week to meet her savings goal? Explain
savings account. If Colton gets $6 each
how you arrived at your answer.
week, how much will Colton have saved in
8 years? Explain how you arrived at your
answer.
P a g e | 10
Pooling Our Savings
Grade Level: 3
Lesson: 5
Key 3.5-3
Lexi, Peyton, Sydney, and Colton each have a savings goal and a savings plan. Read their
plans and then answer the questions.
1. Lexi wants to buy earphones that cost $24 2. Peyton wants to go to basketball camp
including tax. She knows that she can save
which starts in 12 weeks. The cost for this
$1.50 each week if she gives up her
camp is $45. His parents have agreed to
afterschool snack. How many weeks will it
pay Peyton $3 every week to take out the
take Lexi to save for her earphones?
garbage and keep the garage clean. If
Explain how you arrived at your answer.
Peyton saves all his earnings each week,
how much more money will Peyton need
Weeks
Total amounts
to go to basketball camp? Explain how
saved
you arrived at your answer.
1
$1.50
2
4
6
8
16
$3
$6
$9
$12
$24
$3 x 12 weeks = $36
$45 - $36 = $9
Sample response:
I know that $1.50 + $1.50 is $3. This means Lexi will save
$3 every 2 week. So I added $3 for each 2 weeks. By week
8, Lexi will have saved $12. Since this is half the amount
she needs, I knew that in another 8 weeks she will have
saved another $12. This means that it will take Lexi 16
weeks to save for her earphones.
Sample response:
Peyton can save a total of $36 because $3 x 12 weeks =
$36. He needs $45. I then subtracted what he saved from
what he needs. Peyton needs $9 more to attend
basketball camp.
3. Sydney’s savings goal is to save $17 so she 4. Colton is only 10 years old, but he knows
can buy a pair of gloves for the winter. If
that he wants to go college to be a
winter starts in 9 weeks, about how much
banker. Therefore, he has decided to put
will Sydney need to save each week to
half of his weekly allowance in a college
meet her savings goal? Explain how you
savings account. If Colton gets $6 each
arrived at your answer.
week, how much will Colton have saved in
8 years? Explain how you arrived at your
$1 x 9 weeks = $9
answer.
$2 x 9 weeks = $18
Sample response:
I used guess and check till I got a number close to Sydney’s
savings goal. If she saves $2 a week, she will have saved
$18. This is about how much she needs to buy a pair of
gloves.
$6 ÷ 2 = $3
$3 x 52 week in one year = $156
$156 x 8 = $1,248
Sample response:
Colton will save half of his weekly allowance. Half of $6 is $3.
There are 52 weeks in a year. I multiplied $3 times 52 weeks and
found that he will save $156 in one year. Then I multiplied $156
times 8 years and found that Colton will save $1,248 in 8 years.
P a g e | 11
Decisions, Decisions, Decisions
Grade Level: 3
Lesson Description
Lesson: 6
This sixth and final lesson on personal financial literacy sums up several of the
concepts presented in grade 3, plus charitable giving introduced in grade 1. Abby
and Bret are having dinner with their parents on their new deck. They discuss all
that they have learned during this year as they look forward to continuing to learn
more in the future. Students will work with a partner to make decisions on income,
spending, saving, and charitable giving.
Students learn a new game, Decisions, Decisions, Decisions. Given a brief
description, students must decide if the situation is about income, spending,
saving, credit, or charitable giving. As students move on the game board, they
collect or pay money. At the end of the game, the student with the highest money
value is the winner.
Texas Essential
Knowledge and
Skills (Target


standards)
Texas Essential
Knowledge and
Skills (Connecting
PFL Math 3.9F: identify decisions involving income, spending, saving, credit,
and charitable giving

money


Math 3.4C: determine the value of a collection of coins and bills

CEE Earning Income 4.1: People have many different types of jobs from which
to choose. Different jobs require people to have different skills.
CEE Earning Income 4.2: People earn an income when they are hired by an
employer to work at a job.
CEE Buying Goods and Services 4.6: People’s spending choices are influenced
by prices as well as many other factors, including advertising, the spending
choices of others, and peer pressure.
CEE Buying Goods and Services 4.7: Planning for spending can help people
make informed choices. A budget is a plan for spending, saving, and managing
income.
CEE Using Credit 4.1: Interest is the price the borrower pays for using someone
else’s money.
CEE Using Credit 4.2: When people use credit, they receive something of value
now and agree to repay the lender over time or at some date in the future,
with interest.
CEE Saving 4.2: When people save money, they give up the opportunity to
standards)
Texas Essential
Knowledge and
standards)
National Standards
Education






Page |1
Grade Level: 3
Lesson: 6

spend that money to buy things now in order to buy things later.
CEE Savings 4.4: People set savings goals as incentives to save. One savings
goal might be to buy goods and services in the future.
CEE Savings 4.5: A savings plan helps people reach their savings goals.
PFL Terms








income
spending
saving
credit
charitable giving
earning
donating
budget
Time Required
45-minutes
Materials Required







One copy of Activity 3.6-1 for each student pair and one to display
One copy of $5 bills and $10 bills for each pair of students
scissors
3 sticky notes for each pair of students
Vocabulary PowerPoints: Opportunity Cost, Budget, and Human Capital
Materials for Extensions:
 One copy of Activity 3.6-2a for each group of 3-5 students. Recommend
printing both pages on cardstock
 Glue or tape
 Scissors (to trim game board piece to fit together and to cut cards apart)
 One copy of Activity 3.6-2b for each student group, cut apart and cards
shuffled. Recommend printing these four pages on cardstock.
 One copy of Key 3.6-2b for the banker/checker
 Small plastic bag for each player
 Assortment of play coins for each group
 One copy of Activity 3.6-2c for each group, bills cut apart.
 Counters to use as game pieces
 One copy of Activity 3.6-3 for each student doing second extension activity
Procedure
Note to teacher: Use the Opportunity Cost, Budget, and Human Capital Powerpoints to
review or frontload these terms.
Engage
1. Introduce this lesson by telling the class that they have been learning about personal
financial literacy not only in this classroom but throughout their lives. Pose questions
such as the following:
Page |2
Grade Level: 3
Lesson: 6
a. What do you think finances and financial mean? (Sample response: something to
do with money).
b. What do you think literacy means? Have you ever heard the term literacy used in
reading? (Sample response: understanding something)
c. How would you define financial literacy? (Sample response: Financial literacy is
learning about moneyhow it works, how we use it, and how to manage the
money we have.)
d. Why are these things important? (Sample response: The U. S. society functions
based on money. People use it to purchase the things they need and also for the
things they want. People must make decisions about earning, spending, saving,
credit, and charitable giving. Students need to know how to use their money wisely
so that they will have financial security.)
e. What are some of the things you have learned about financial literacy in the lessons
this year? (Sample responses: We learned that human capital and income are
related; if you learn more, you usually earn more. We learned that when the
demand for an item goes up and the availability of the item goes down, the cost for
the item will increase. We learned about the costs and benefits of planned and
unplanned spending decisions. We learned why people use credit and pay interest.
We learned about saving money.)
f. We are going to hear the last story about Bret and Abby and their family. But before
we do, there’s one more idea that we haven’t talked about this year but you most
likely have heard it before or even learned about it in an earlier grade. What is
charitable giving? (Sample response: Charitable giving is giving things like money,
items, or time to others and not expecting anything in return.)
g. Give some examples of charitable giving. (Some examples are giving money to a
church or other organization, putting food or pet supplies in receptacles at the
grocery store, collecting canned goods for the school’s food drive at Thanksgiving,
and volunteering your time to work in the neighborhood garden.)
2. Explain that other words for charitable giving are donating and sharing.
Explore/Explain
3. Read the story Decisions, Decisions, Decisions to the class. The story is found on Visual
3.6-1.
questions:
a. How was the family able to reach their financial goals during the past year? (The
family saved their money. They had a plan. They made choices on how they would
spend and save their money.)
b. Whose idea was it to save for college? (It was Mother’s idea to save for college.)
Why did she want to save for college? (By saving for college, the family can avoid
or reduce student loans in the future.)
c. What did the children learn when their parents had to buy four new tires? (The
children learned about credit and interest which means borrowing money and
Page |3
Grade Level: 3
Lesson: 6
having to pay for the use of the money.)
d. Mother saved money through careful planning when the family went to Giddyland.
What did she buy that saved money? (Mother bought a meal plan for each of
them.)
e. The children also learned that when resources are scarce, the prices can sometimes
go __________________. (up)
f. The opportunity cost to go to Giddyland meant the family would not be buying a
__________________________. (trampoline)
Elaborate
5. Pair students together. Distribute Activity 3.6-1, 3 sticky notes, scissors, and the pages
of $5 bills and $10 bills included with the lesson to each pair of students. Have students
cut out the bills on each page. Display Activity 3.6-1. Read the directions on Activity 3.61 to the students. Then read the example.
For her birthday, Abby received $25 from her grandmother and $15 from her cousin.
She wants to buy a new volleyball net that costs $20. Her mother always has Abby put
some gift money in her college savings. Abby also feels that it is important to donate
money to a charity that helps cure diseases. She would like to donate part of her money
to the Diabetes Foundation. Help Abby decide how to use her gift money.
6. Have student pairs count out the total amount of money Abby received as gifts. Direct
them to tuck the remainder of the money under a blank sheet of paper. As students do
the activity, tell them that they may replace two $5 bills for a $10 bill at any time.
7. Tell students that to help Abby make a decision how to use her money, they will divide
Abby’s money into three stacks: spend, save, and donate. Explain that this process is
called creating a budget. Then instruct students to write each of these categories on the
3 sticky notes. Have them line the sticky notes across their desk. Tell students that the
sticky notes will be the labels for how Abby will use her money. They will place the
money Abby will spend, save and donate below each appropriate sticky note.
8. Help students understand how they should use the money by asking questions such as
the following:
a. How much money does Abby have to use? ($40)
b. What does Abby want to buy? (Abby wants to buy a volleyball net.)
c. Does Abby have enough money to buy the volleyball net? (Yes. Abby has $40
and the net costs $20.) Have students count out $20 from Abby’s money and
place this in the stack labeled “spend”.
d. How much money will Abby have left if she buys the volleyball net? ($20) Have
students count the remaining money.
e. What is Abby’s savings goal? (Abby is saving for college.) Of the remaining
money how much should Abby save for college? (Accept any reasonable
amount.) Have students count this amount from Abby’s remaining money and
place it in the stack labeled “save”.
f. How much money will Abby have left if she puts this amount of money towards
her college savings account?
g. How much of the remaining money should Abby donate to the Diabetes
Foundation? Have students count out this amount from what is left of Abby’s
Page |4
Grade Level: 3
Lesson: 6
money and place it a third stack.
h. Is there any other reason Abby might use the money? (Sample response: She
may want to save $5 to buy a purse.) If needed, have students place the
remaining money in the appropriate stack.
9. Have the students review their decision on how Abby should use her money. Then ask
them if they would like to make any changes. Allow time for students to discuss other
possible decisions. Once students have come to a final decision on how to use Abby’s
money, have them record their results on Activity 3.6-1. Model the process.
10. Instruct students to complete the remaining two problems with their partner. Remind
them to first use the $5 and $10 bills to help them make their decisions. Tell them to be
prepared to justify these decisions.
11. After students have completed the two problems, have different student pairs share
their answers. Ask students to explain why they made this decision. Accept any
reasonable answer.
Evaluate/End
12. To end the lesson, read the paragraph below. Then ask the students to write a short
paragraph explaining how the first week’s income would be used.
Pretend that you spent 6 weeks in summer with your grandparent to help out. During
your stay, you raked the yard, took out the trash, helped clean out the garage, washed
dishes, and much more. For your hard work, your grandparent paid you $15 each week.
Explain how you would use the first week’s earnings. Remind students that in a good
plan, they will save some, spend some, and donate some.
EXTENSIONS
1. Students may play the game Decisions, Decisions, Decisions. Model this for students
prior to distributing materials.
a. Gather students in a circle on the floor. Show students the materials they will
need to play the game: game board, game cards, money (coins and bills), plastic
bags, and counters.
b. Select 3 or 4 students to help model the game. You will be the banker/checker.
c. Demonstrate how to spread fingers apart to compare hand spans. The student
with the greatest hand span goes first. Play moves clockwise.
d. Player draws a card and reads the card aloud. He/she makes a decision whether
the card describes income, spending, saving, credit, or charitable giving.
e. The banker/checker checks the answer key. If correct, the player moves the
spaces indicated on the card drawn and does what the space says. If the player
collects money, the banker counts out the amount and the player verifies it and
adds it to his/her bag. If the player must pay the bank money, the money is
added back to the bank.
f. If the player answers the card incorrectly, he/she does not move and collects no
money.
g. When the banker runs low on coins, the game can be temporarily stopped and
Page |5
Grade Level: 3
Lesson: 6
players trade coins for bills.
h. Model long enough to illustrate how the game is played.
i. Divide the class into groups of 3-5 students per group. Assign one student in the
group to be the banker/checker. Distribute Activity 3.6-2a (game board), Activity
3.6-2b (set of game cards), Key 3.6-2b (answers to game cards), Activity 3.6-2c
(bills), play coins, plastic bags for each player, and counters to each group.
j. Tell students that the game ends when all players have reached the end or when
time runs out, the player with the most money in his/her bag wins.
2. Use Activity 3.6-3 and have students make additional game cards to use with Decisions,
Decisions, Decisions. Remind students that the game cards must fall into the game
categories: income, spending, saving, credit, and charitable giving.
Page |6
Grade Level: 3
Lesson: 6
Visual 3.6-1
The family had done so well in following their savings plan, that they soon had a new
pool and a beautiful new deck in their back yard. Late one afternoon the whole family
was sitting around the table on the deck having dinner.
“So much has happened in the last year,” said Bret. “Remember when we met Barkley in
Woodforest, Abby? He turned out to be a wise old pine tree. He helped us solve many
money problems this year. I’m not sure our ice cream business would have been
successful without him telling us how to freeze our product,” remarked Bret.
Abby answered, “We wanted a trampoline but had an opportunity to go to Giddyland.
The opportunity cost was the trampoline---we had to give that up for the trip!”
“And don’t forget, Mom,” said Bret, “it was your great idea to get a meal plan so we had
planned expenses. If we had left that as an unplanned expense, we would have ended
up paying expensive prices.”
Abby chimed in, “And then Mom and Dad taught us about credit when our car needed
new tires. It is nice to know that we now have enough savings to pay our car repair bill
with cash. That way, we can avoid paying interest charges.”
“I like the fact that Mom and Dad both suggested we start saving for college. Abby and I
now have college savings accounts and we were still able to build this new backyard
pool and deck,” said Bret.
Mom added, “And we did it without credit. This has been a wonderful year, guys. I can’t
wait to see what next year brings!”
Page |7
Grade Level: 3
Activity 3.6-1
Lesson: 6
Read each scenario then answer the questions that follow. Use
the money provided to help you answer the questions.
She wants to buy a new volleyball net that costs $20. Her mother always has Abby
put some gift money in her college savings. Abby also feels that it is important to
donate money to a charity that helps cure diseases. She would like to donate part of
her money to the Diabetes Foundation. Help Abby decide how to use her gift money.
Gift amount received/income: ______________________________________
Spend: _________________________________________________________
Save: __________________________________________________________
Donate: ________________________________________________________
Total: __________________________________________________________
1. Bret got a summer job as a lifeguard. He will work for 9 weeks. Bret’s first
paycheck was for $80. This is the most money he has ever received. He would like
to purchase a surf board that costs $100. Bret promised his mom that he would
put half his earnings in a college savings account. His favorite charity is the local
animal rescue center. How should Bret use his first paycheck?
Gift amount received/income: ________________________________________
Spend: ___________________________________________________________
Save: _____________________________________________________________
Donate: ___________________________________________________________
Total: _____________________________________________________________
Page |8
Grade Level: 3
Lesson: 6
2. Jose, Abby and Bret’s cousin, is sixteen years old. His father said he is old enough
to work at his parent’s store. If he chooses to accept this job, he will work only on
Saturday mornings for 4 hours. His father will pay him $9 per hour. If he chooses
not to take the job, his parents will expect him to stay home and clean the house.
For cleaning the house, he will receive a $20 allowance each week. What would
you choose if you were Jose? Explain why you would make this choice.
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Page |9
Grade Level: 3
Sample Key 3.6-1
Lesson: 6
Read each scenario then answer the questions that follow.
Use the money to help you answer the questions.
She wants to buy a new volleyball net that costs $20. Her mother always has Abby
put some gift money in her college savings. Abby also feels that it is important to
donate money to a charity that helps cure diseases. She would like to donate part of
her money to the Diabetes Foundation. Help Abby decide how to use her gift money.
Gift amount received/income: $25 + $15 = $40
Spend: $20 to buy volleyball net
Save: $15 into college savings account
Donate: $5 for Diabetes Foundation
Total: $20 + $15 + $5 = $40
1. Bret got a summer job as a lifeguard. He will work for 9 weeks. Bret’s first
paycheck was for $80. This is the most money he has ever received. He would like
to purchase a surf board that costs $100. Bret promised his mom that he would
put half his earnings in a college savings account. His favorite charity is the local
animal rescue center. How should Bret use his first paycheck?
Money earned/income: $80
Spend: $15 for movies and gas
Save: $40 for college savings account and $20 for a surf board
Donate: $5 to animal rescue center
Total: $15 + $40 + $20 + $5 = $80
P a g e | 10
Grade Level: 3
Lesson: 6
2. Jose, Abby and Bret’s cousin, is sixteen years old. His father said he is old enough
to work at his parent’s store. If he chooses to accept this job, he will work only on
Saturday mornings for 4 hours. His father will pay him $9 per hour. If he chooses
not to take the job, his parents will expect him to stay home and clean the house.
For cleaning the house, he will receive a $20 allowance each week. What would
you choose if you were Jose? Explain why you would make this choice.
Accept any reasonable response.______________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
__________________________________________________________________
P a g e | 11
Activity 3.6-2a
START
Pay $15.00
interest on
your car
loan
Collect
$2.00
Collect
four
dollars
Collect
$30.00
Collect
2 quarters
and 3 dimes
Collect
$9.95
Collect
$8.00
Collect
5 dollars
Collect
$3.00
Collect
$1.72
Collect
3 dollar
bills and
3 nickels
Collect 2
five dollar
bills
Collect
63₵
Collect
Collect two
20 dollar
bills
Collect
$10.00
Collect
$12.50
Pay the bank
$2.00
maintenance
fee
Collect
$20.00
$5.35
Collect
$6.49
Collect
$8.00
1. Play in groups of 3-5. The teacher appoints the
banker/checker.
2. The person with the greatest hand span goes
first.
3. Player draws a card. Read the card aloud. Make a
decision whether the card describes income,
spending, saving, credit, or charitable giving.
4. The banker/checker checks the answer key. If
correct, the player moves the spaces indicated
on the card drawn and does what the space says.
If the player collects money, the banker counts
out the amount and the player verifies it and
adds it to his/her bag. If the player pays the bank
money, the money is added back to the bank.
5. If the player answers the card incorrectly, he/she
does not move and collects no money.
6. When all players have reached the end or when
time runs out, the player with the most money in
his/her bag wins.
Collect
seven
dollars
Pay $25.00
interest on
house loan
Collect
$11.33
Collect
nine
nickels
Collect
$3.88
Collect
$25.00
Collect
$13.00
Collect
ten
pennies
Collect
$23.00
Card Category:
Income
Pay $7.75
interest on
vacation loan
Collect
$4.20
Collect
$6.34
Collect
$17.03
Collect
three
dollars
Spending
Collect
6 quarters
Saving
Credit
Collect
$11.46
Collect
$5.15
Collect
1 of each
coin
Charitable Giving
Collect
$28.00
End
End
Activity 3.6-2b
1. It is 11 o’clock at night and you remember that a bill
is due tomorrow. You don’t have enough money in
your checking account. Luckily you can go online to
pay with your credit card. What is this?
2. You earn money for doing chores. Half will go into
your account at the bank. What is this?
GO AHEAD 3 SPACES
GO AHEAD 5 SPACES
3. You really want a game system. Each week you decide 4. You washed your Mom’s car and then vacuumed it.
to put some of your allowance in a special place in
She paid you $10 for washing and vacuuming her car.
your room. It is safely hidden from your little brother.
What is this?
What is this?
GO AHEAD 2 SPACES
GO AHEAD 6 SPACES
5. Your aunt and uncle went to see a movie on Saturday
afternoon. You went to their house and stayed with
your five year-old cousin while they were gone. They
paid you $12. What is this?
6. There is a huge sale at the mall and you would like a
new pair of jeans. They have your size. You have the
cash and make the purchase. You are so glad you had
the money you needed. What is this?
GO AHEAD 3 SPACES
GO AHEAD 6 SPACES
7. You are at the mall and see the newest computer game
on sale. You don’t have enough money to buy it.
Then you decide to get a part-time job at the computer
store and they hire you. Two weeks later you have
your first paycheck. What is this?
GO AHEAD 4 SPACES
9. You volunteer at the children’s shelter. It makes you
feel good to see the children happy and smiling. You
leave a donation of 3 dozen donuts for them. They
love the donuts with the sprinkles. What is this?
GO AHEAD 6 SPACES
11. You
want to join the school band, but you must
purchase your own instrument. Your new flute will
cost $200. Your Mother agrees to borrow money from
the bank. She will pay it off in six months. What is
this?
GO AHEAD 3 SPACES
8. You use money from your allowance to go to the
movies with your friends and buy snacks. Wow, that
cost more than you thought. What is this?
GO AHEAD 3 SPACES
10. Your class collected more canned goods than any
other third grade class during the food drive. You
will help deliver the cans to the food bank this
weekend. What is this?
GO AHEAD 3 SPACES
12. Dad needs a new lawnmower but doesn’t have
enough cash available. He fills out an application
form at the store and the store agrees to let him pay
it out in 24 monthly payments, but he will have to
pay interest. What is this?
GO AHEAD 3 SPACES
13. The ice cream truck is coming down the street. I can
hear the music. The Nutty Bar is my favorite and
that is what I decide to buy. What is this?
14. You make a $15 deposit at the bank. In 4 months
you should have enough for the new tennis shoes
you’ve been wanting. What is this?
GO AHEAD 3 SPACES
15. After you finish washing the dog for the neighbor,
she gives you $8 because her poodle looks so
beautiful. What is this?
GO AHEAD 3 SPACES
GO AHEAD 3 SPACES
16.
In case something special or an emergency comes
up, you always have some money tucked away.
Whenever you find change or have leftover lunch
money, you add it to what you already had. What is
this?
GO AHEAD 3 SPACES
17. You have been responsible to pay your bills in the
past. The bank says you have excellent credit. The
loan for your new car has been approved. What is
this?
18. You have paid your bills on time for the last 3 years.
The bank says you are a responsible borrower and
will loan you $500 for a new refrigerator. What is
this?
Congratulations!
GO AHEAD 3 SPACES
GO AHEAD 4 SPACES
19. Your parents decide to buy new patio furniture for
the deck. It is beautiful and the cost is so
reasonable that they can pay cash. What is this?
GO AHEAD 3 SPACES
21. Your parent’s bank has announced that they will
match any charity donation up to $25. You and your
friends collect $23 for the animal shelter which
makes a total donation of $48. What is this?
20. Your favorite neighbor is home on a visit from
college. He tells you how great it is and how it will
help him get a well- paying job that he likes. But it
also costs more money than you have. You decide to
put more of your lawn mowing profits into your
account. What
is this?
GO AHEAD 2 SPACES
22. The bank on Main St. will take money out of your
checking account each month and mail a check to the
company that provides you with electricity. You
will not miss a payment because this is a service they
provide. What is this?
GO AHEAD 1 SPACE
GO AHEAD 4 SPACES
23. Grandma’s flower bed looks awful. She asks if you
are available Saturday morning and has you come
over to her house. You work 3 hours pulling weeds
and trimming bushes. She pays you $20. What is
this?
24. Your piggy bank is getting really full. You decide to
take every nickel you find in your bank and donate it
to the Burn Hospital to help young children who
have severe burns. What is this?
GO AHEAD 3 SPACES
GO AHEAD 1 SPACE
Key 3.6-2b
Use this key to check your classmates’ answers when playing Decisions, Decisions,
Decisions. It is suggested that you cut the key out and glue it inside a sheet of
construction paper folded in half. This way, players will not be able to see the answers
as you are checking them.
Answer key
Card 1: credit
Card 13: spending
Card 2: saving
Card 14: saving
Card 3: saving
Card 15: income
Card 4: income
Card 16: saving
Card 5: income
Card 17: credit
Card 6: spending
Card 18: credit
Card 7: income
Card 19: spending
Card 8: spending
Card 20: saving
Card 9: charitable giving
Card 22: spending
Card 11: credit
Card 23: income
Card 12: credit
Activity 3.6-2c
Activity 3.6-3
Keeping Busy with a Business
Grade Level: 3
Lesson Description
Lesson: 7
Students hear a story where Bret and Abby learn about starting a business and
things to consider when determining a price for their product. They then look at a
picture of an ice cream parlor and decide which objects pictured illustrate positive
points and which ones are negative business practices.
Students complete a checklist that addresses simple business operation and then
look at how prices and profits are affected by supply and demand, government
regulations and taxes, and production costs and selling price. Students write a
paragraph about prices and/or profits and several students share with the class.


Texas Essential
Knowledge and
Skills (Target

standards)

Social Studies 3.8A: identify examples of how a simple business operates
Social Studies 3.8B: explain how supply and demand affect the price of a good
or service
Social Studies 3.8C: explain how the cost of production and selling price affect
profits
Social Studies 3.8D: explain how government regulations and taxes impact
consumer costs

CEE Earning Income 4.6: People who own a business can earn profits, which is
a source of income.
Vocabulary












entrepreneur
income
supply
demand
good
service
production costs
selling price
profit
government regulation
taxes
consumer
Time Required
45 minute class lesson
Materials Required




National Standards
Education
One copy of Visual 3.7-1 and Visual 3.7-2.
One copy of Activity 3.7-1 and Activity 3.7-2 for each student
Red and green highlighters or markers for teacher use
Pencils for students’ use
Procedure
Engage
1.
Share the following scenario with students:
Last night my friend Jane and I had hamburgers at Hamburger Heaven. Jane was about
Page |1
Grade Level: 3
Lesson: 7
halfway through her burger when she said, “You know, I can make a better burger than
this and it wouldn’t cost nearly as much money!” I asked Jane how much she thought it
would cost to make a hamburger and she said an amount that was much lower than the
cost of the hamburgers we were eating. Why then does everything cost so much?
Ask students what costs they think would be involved in running a business such as
Hamburger Heaven. Accept all answers as students are simply suggesting what they
think. You may wish to list these on the board or on chart paper.
Then say, “Maybe Bret and Abby can help us understand how a business operates and
the things that influence prices.”
Explore/Explain
2.
Gather students on the floor or wherever you prefer to have them sit while you read a
story. Tell students that today you have another story to share with them about Bret
and Abby and their newest idea. Read the story “Keeping Busy with a Business” to the
class. The story is found on Visual 3.7-1.
3. After reading the story, pose the questions below.







What did Abby and Brett want to sell in Sweet Sue’s Candy Shop? (They wanted to
sell homemade ice cream.)
Who did they hope would give them advice about opening a business? (They
hoped their Uncle Fred and Aunt Sue would give them advice.)
What was one of the hardest parts in deciding to sell ice cream? (One of the
hardest parts was deciding how much to charge for the ice cream.)
Brett and Abby’s income will be determined by how much extra money they make
once the expenses are paid. What is this extra money called? (The extra money is
called profit.)
Name one thing that could make the children’s profit decrease. (Sample response:
The customers might not want ice cream during the winter.)
What is the City Health Inspector’s job? (The City Health Inspector inspects a
business to make sure the business has a safe environment to sell their product.)
Other than examples in the story, name a good and a service that are provided in
our neighborhood. (possible answers - Good: groceries, gasoline Service:
teacher, repair person, barber)
4. Project Visual 3.7-2 for students to view. Visual 3.7-2 shows an ice cream parlor with a
number of different objects pointed out. Allow students time to study the picture and
read the descriptions in the bubbles. Discuss with students what the picture shows. Use
this as an opportunity to talk about rules and regulations that businesses must follow or
be fined or possibly shut down. Read each bubble to the class or have a volunteer read a
bubble and then discuss what it is illustrating. If the descriptor tells about something
positive, color the bubble green. If the descriptor tells about something negative, color
the bubble red. Be sure to discuss each of the bubbles.
5.
Distribute Activity 3.7-1 to students. Place students with a partner so they will be able
to discuss their ideas about the task. Tell students that they are to read each sentence
on the checklist and discuss with their partner whether the statement describes an
Page |2
Grade Level: 3
Lesson: 7
action that tells something that is needed to operate a simple business. If so,
they should place a check mark in the box. If the action is not needed to operate
a simple business, leave the box empty.
Elaborate
6.
When students have completed Activity 3.7-1, go over the actions that describe how to
operate a simple business. Ask students :
 Do you have another idea that would help a business to operate successfully?
 What is it?
 Why do you think this idea would help a business?
Evaluate/End
7.
Distribute Activity 3.7-2 to each student. Allow students to continue working with a
partner. This activity encourages students to work with their partner to determine
whether prices of goods or services will increase or decrease based on the statement.
Students also have to determine how particular situations affect profits.
8.
Tell students that they will write a short paragraph about one of the following three
options. You may wish to list the option on the board or on chart paper.
 How is the price of a good or service affected by supply and demand?
 How do government regulations and taxes affect consumer costs?
 How do production costs and selling price affect profits?
After students have completed their paragraphs, have several volunteers share theirs
with the class.
EXTENSION
1. Challenge students to determine the cost of eating out by using these steps:
 Choose a food item that you have eaten in a food establishment.
 Record the price charged for that food item.
 List the ingredients to create that food item. Some websites to help
determine ingredients are:
http://www.foodnetwork.com/recipes/photos/copy-that-secret-restaurant-recipes.html
http://www.copykat.com/
http://www.sixsistersstuff.com/2013/04/100-of-best-restaurant-copycat-recipes.html
http://www.pinterest.com/kaysey612/famous-restaurant-recipes/
http://restaurant.food.com/all-recipes/popular



2.
Next to each ingredient, record the cost for that ingredient.
Determine the total cost to prepare the food item.
Write a statement comparing the price charged for the food with the cost to
prepare it yourself.
Have students choose a service that they or someone in their family uses such as a
haircut, car wash, or dog grooming. They should research three different service
providers and record the prices for the service. Students tell why there may be a
difference in the pricing.
Page |3
Grade Level: 3
Visual 3.7-1
Lesson: 7
Bret and Abby are a great brother-sister business team. They have been
selling ice cream at school carnivals for about a year. Now, they believe there
is a way to make and sell more ice cream than ever before. The success of
their plan will depend on whether or not their aunt and uncle will help with
their business. Uncle Fred and Aunt Sue have owned a candy shop for 25
years on a well-traveled street. Almost everyone in town has bought candy
from their store. The “Sweet Sue Candy Shop” is famous in their town.
One hot summer day, Bret and Abby decided to visit their aunt and uncle’s
candy store.
“Uncle Fred, Aunt Sue,” said Bret, “could Abby and I talk to you a minute?”
“Sure, Bret, what’s up?” answered Uncle Fred.
“You and Aunt Sue are a great team. Abby and I want to become an
entrepreneurial team just like the two of you. You know, entrepreneurs are
people who open and run their own business. Our problem is that we don’t
know how! Where do we start?”
“Well, Bret,” explained Aunt Sue. “I’d say start at the beginning. What are
you going to sell? To whom are you going to sell? Where are you are going to
set up shop? And how will you price your ice cream? All of those things will
determine your profit or how much you can keep after the bills are paid.”
“I have some of those answers,” Abby chimed in. “We want to sell our
homemade ice cream. If you have room, we would like to put an ice cream
freezer alongside your candy counter. Your customers will be our customers,
too. The hard part is figuring out a selling price that is a fair price for our ice
cream.”
Page |4
Grade Level: 3
Lesson: 7
Uncle Fred agreed. “The selling price of your ice cream includes more than
just the cost of your ingredients. It also includes the cups you put the ice
cream in, the spoons needed, the cost of electricity to run the freezer, and
the rent you need to pay for your space. You will have to charge enough for
your ice cream to cover your costs, plus a little more to make a profit. Profit
is the money left over after covering all of the expenses. The profit is your
income.”
“If you don’t understand how to make a profit, you’ll lose your business,”
said Aunt Sue. “And have you thought about supply and demand? In the
winter your demand may go down. Not many people want ice cream when
it’s snowing outside. That’s when ice cream goes on sale. You don’t make as
much profit on your ice cream then so you need to be creative. You might
consider selling hot chocolate when it’s cold outside. But in the hot summer
time, more people will buy your ice cream and the demand will increase. You
can supply more ice cream and your income will increase.”
Just then the City Health Inspector walked into the candy shop.
“Hello, Sam,” said Uncle Fred. “It’s nice to see you. Sam, this is Bret and this
is Abby, my nephew and my niece. Abby and Bret are thinking about starting
a small ice cream business.”
“Well, hello, you two,” said Sam.
Uncle Fred explained, “Sam’s job is to inspect businesses that serve food to
make sure the food is safe to eat.”
Sam added, “When you decide how much to charge for your ice cream, don’t
forget about costs from government regulations and taxes. You will need city
permits to show that your business is safe. Don’t forget to collect taxes on
Page |5
Grade Level: 3
Lesson: 7
those products that are taxable because you will have to send that money to
the state.”
“It sounds complicated,” said Abby.
“Once you learn what is necessary, you just follow the rules,” said Aunt Sue.
“Consumers want to know that the ice cream is a quality product and that
you are following the rules or regulations set up by the government. No one
wants to buy a poor product or get sick from unclean preparation.”
“It’s a lot to think about, but you can depend on your aunt and uncle to help
you get through the rough spots,” added Sam.
Bret and Abby hugged their aunt and uncle. The four of them sat down in a
booth and began discussing their big plans while Sam conducted his
inspection.
Page |6
Glassware not
sanitized;
dishwasher
temperature too
cold
Maximum
occupancy
sign posted
Health
Department
inspection posted
Ice cream
freezer
temperature
at 45ᵒF.
Mouse droppings
found behind ice
cream toppings cart
Spilled drink
on floor; no
warning for
wet floor
Tables cleaned with
antibacterial cleaner
after each customer
leaves
Menus free of
food spills
Grade Level: 3
Activity 3.7-1
Lesson: 7
Name _______________________________________________
Simple Business Sense
Read each statement below. Check only the boxes that contain a statement that
describes an action needed to operate a simple business.
Choose a location that will attract many customers.
Have a place where your friends can come and play games.
Decide on a product or service that people want and for which they are willing to pay.
Play your favorite music extra loud because that’s the way you like it.
Don’t empty the trash cans until Friday because the trash is only picked up on
Saturday.
Plan a budget so that you will be sure to make a profit. Don’t let your expenses
be more than your income.
Know where you will get money for supplies and other expenses to get your
business started.
Sleep late whenever you want because you are the boss and can do what you
want.
Be aware of government regulations and follow them. There are fines for not
obeying the law.
Have an advertising plan so others will know about your business and want to
spend their money there.
Decide what days the business will operate, the business hours, and who will be
in charge.
People should always have the correct change or use a credit card or check so
just take what they give you.
Keep good financial records that show the business expenses and profits.
Allow your dog to stay with you because he’s cute and everyone likes dogs.
Be friendly, courteous, and respectful to customers.
Page |8
Grade Level: 3
Key 3.7-1
Lesson: 7
Name _______________________________________________
Simple Business Sense
Read each statement below. Check only the boxes that contain a statement that
describes an action needed to operate a simple business.

Choose a location that will attract many customers.
Have a place where your friends can come and play games.

Decide on a product or service that people want and for which they are willing to pay.
Play your favorite music extra loud because that’s the way you like it.
Don’t empty the trash cans until Friday because the trash is only picked up on
Saturday.

Plan a budget so that you will be sure to make a profit. Don’t let your expenses
be more than your income.

Know where you will get money for supplies and other expenses to get your
business started.
Sleep late whenever you want because you are the boss and can do what you
want.

Be aware of government regulations and follow them. There are fines for not
obeying the law.

Have an advertising plan so others will know about your business and want to
spend their money there.

Decide what days the business will operate, the business hours, and who will be
in charge.
People should always have the correct change or use a credit card or check so
just take what they give you.

Keep good financial records that show the business expenses and profits.
Allow your dog to stay with you because he’s cute and everyone likes dogs.

Be friendly, courteous, and respectful to customers.
Page |9
Grade Level: 3
Activity 3.7-2
Lesson: 7
Name _______________________________________________
Prices and Profit
Think about the price of the given good or service. How did the producer decide what price to
charge the consumer? Read each statement below. Answer the question after each statement
by drawing an arrow in the box to the right. Draw the arrow pointing up to show an increase
( ) or an arrow pointing down to show a decrease ( ).
1. The price of a case of waffle cones was $36.99 for a case of 228 cones.
The price is now $43.99 for the same size case. How will this affect your
selling price?
2. Creamy chocolate caramel sounded so good so you ordered 20 gallons of
it. Now that you have tasted it, you and your customers discover that it
doesn’t taste so good. How will this affect your selling price?
3. The city has just voted to raise the city portion of the tax on sales. You
will now need to give the city a little more tax on each sale that you
make. How will this affect your selling price?
4. You advertised large ice cream shakes for $1.99 during the month of July.
The cost of a gallon of milk has been rising steadily. In June milk was on
sale for $2.19 a gallon. Now it’s July and milk is no longer on sale. The
price is $4.09 a gallon. How will this affect your profit?
5. Customers love your newest creation, a striped cone with scoops of
strawberry, vanilla, and blueberry with star sprinkles on top. Your
supplier can only provide you with a limited amount of blueberry ice
cream. How will this affect your selling price?
6. The health inspector found roaches in the storeroom and gave you a
warning. You now have a contract with a pest control business to spray
for bugs regularly. How will this affect your selling price?
7. Last week there was a sale on banana splits but you still sold about the
same amount as in other weeks. How will this affect your profit?
8. You didn’t know that you must have a sink with three separate sections
for washing utensils. One section for washing, one for rinsing, and one
for sanitizing. You need a new sink and someone to install it. How will
this affect your selling price?
P a g e | 10
Grade Level: 3
Key 3.7-2
Lesson: 7
Name _______________________________________________
Prices and Profit
Think about the price of the given good or service. How did the producer decide what price to
charge the consumer? Read each statement below. Answer the question after each statement
by drawing an arrow in the box to the right. Draw the arrow pointing up to show an increase
( ) or an arrow pointing down to show a decrease ( ).
1. The price of a case of waffle cones was $36.99 for a case of 228 cones.
The price is now $43.99 for the same size case. How will this affect your
selling price?
2. Creamy chocolate caramel sounded so good so you ordered 20 gallons of
it. Now that you have tasted it, you and your customers discover that it
doesn’t taste so good. How will this affect your selling price?
3. The city has just voted to raise the city portion of the tax on sales. You
will now need to give the city a little more tax on each sale that you
make. How will this affect your selling price?
4. You advertised large ice cream shakes for $1.99 during the month of July.
The cost of a gallon of milk has been rising steadily. In June milk was on
sale for $2.19 a gallon. Now it’s July and milk is no longer on sale. The
price is $4.09 a gallon. How will this affect your profit?
5. Customers love your newest creation, a striped cone with scoops of
strawberry, vanilla, and blueberry with star sprinkles on top. Your
supplier can only provide you with a limited amount of blueberry ice
cream. How will this affect your selling price?
6. The health inspector found roaches in the storeroom and gave you a
warning. You now have a contract with a pest control business to spray
for bugs regularly. How will this affect your selling price?
7. Last week there was a sale on banana splits but you still sold about the
same amount as in other weeks. How will this affect your profit?
8. You didn’t know that you must have a sink with three separate sections
for washing utensils. One section for washing, one for rinsing, and one
for sanitizing. You need a new sink and someone to install it. How will
this affect your selling price?
P a g e | 11
Ordinary People with Big Ideas
Grade Level: 3
Lesson Description
Lesson: 8
In this lesson, Bret and Abby visit a wax museum with their parents. While in the
museum, Bret and Abby discover the lifelike figures of Henry Ford, Matt Matson
and Elliot Handler, and Herb Kelleher. They learn that these people were
entrepreneurs and a little about their products.
Students then construct an entrepreneur flipbook and provide specific information
about their chosen entrepreneur. Students have the opportunity to do beginning
research using the technology available. In the last activity, students match wellknown products to the entrepreneur responsible for them.

Social Studies 3.8E: identify individuals, past and present, including Henry Ford
and other entrepreneurs in the community such as Mary Kay Ash, Wallace
Amos, Milton Hershey, and Sam Walton, who have started new businesses

CEE Earning Income 4.7: Entrepreneurs are people who start new businesses.
Starting a business is risky for entrepreneurs because they do not know if their
new businesses will be successful and earn a profit.
Vocabulary

entrepreneur
Time Required
45-60 minute class lesson
Materials Required
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Texas Essential
Knowledge and
Skills (Target
standards)
National Standards
Education
One copy of Activity 3.8-1a, Activity 3.8-1b, and Activity 3.8-2 for each student
One sheet of clean 8 ½” x 11” copy paper for each student
Scissors
Glue sticks or glue
Pencils or thin markers for students’ use
Internet access
Procedure
Engage
1. Pose this riddle to students:
What word has a dozen letters, one-fourth of the letters are the letter “e”, and means to
organize and take the risk for a new business?
Draw 12 blanks on the board or on chart paper; one blank for each letter. Have students
take turns guessing letters. After each letter is guessed, fill in the blanks for that letter if
it is in the word entrepreneur. You may wish to list letters that have been guessed but
are not in the word off to the side so students do not repeat them.
Entrepreneur
Page |1
Grade Level: 3
Lesson: 8
If possible, show the following music video from Cha-Ching which introduces the word
entrepreneur:
http://www.youtube.com/watch?v=_RlpB_Vu9Wo
Explore/Explain
2. Gather students on the floor or wherever you prefer to have them sit while you read a
story. Tell students that today you have another story to share with them about Bret
and Abby and their visit to a wax museum. Read the story “Ordinary People with Big
Ideas” to the class. The story is found on Visual 3.8-1.
3. After reading the story, pose the questions below.
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
Who was Bret searching for in the Wax Museum? (Bret was searching for Henry
Ford.)
Why is Henry Ford considered a great entrepreneur? (Henry Ford founded the Ford
Motor Company and revolutionized the car industry with the assembly-line
process.)
Ruth Handler had an idea for a new type of doll. What did she name the doll? (She
named the new type of doll Barbie.)
Matt and Elliot named their new company using the letters in their names. What
was this new company named? (This new company was named Mattell Toy
Company.)
Herb Kelleher had an idea for a new type of air travel company. What was his great
idea? (Herb Kelleher developed a company that would take travelers short
distances at lower costs.)
What did Herb Kelleher name his company? (Herb Kelleher named his company
Southwest Airlines.)
4. Instruct students to make a four-door book as described in Dinah Zike’s Big Book of
Projects. Each student should choose an entrepreneur from the story or another
entrepreneur who interests them. Suggestions might include Mary Kay Ash, Wallace
Amos, Milton Hershey, or Sam Walton. This is an opportunity for students to learn to
use a search engine on available technology to discover more about their entrepreneur.
Model how to fold and cut the four-door book as students work along with you.

Use a clean sheet of 8 ½” x 11” copy paper. Instruct students to put the paper in
front of them with the longer side going side to side. Fold the paper in half along
the short line of symmetry and gently crease it at the top of the fold.

Open the paper back up and fold each of the sides to the center crease. This is a
shutter fold.
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Fold the paper in half from top to bottom, folding both sides of the shutter in half.
Open the paper back to its original size and put a small dot at the intersection of
each fold.

Now cut from the edge of the paper to the first dot on the left along the fold line
and from the edge of the paper to the first dot on the right along the fold line. Fold
Page |2
Grade Level: 3
Lesson: 8
the shutters back to the center fold. There should now be four flaps on the top part
of the paper.
Label the left upper flap Who. Label the right upper flap What. Label the left lower
flap Where and When. Label the right lower flap Why.
Elaborate
5.

Who – On the back of the flap labeled Who, students glue a picture of the
entrepreneur.

What – On the back of the flap labeled What, students glue a picture of the idea or
product that the entrepreneur developed.

In the space between these two pictures, students use the top part of Activity 3.81a. They write the name of the entrepreneur they have chosen and write what the
entrepreneur did. This box is cut out and glued in the space between the two open
upper flaps.

Where and When – On the back of the flap labeled Where and When, students
glue a map of the United States and color the state either where the entrepreneur
was born or where he/she began developing his/her idea. This map is found on
Activity 3.8-1b. Students may need to reference a labeled United States map in the
classroom to help locate the state.

Why – On the back of the flap labeled Why, students write why the entrepreneur
decided to develop this idea in the box with Why on Activity 3.8-1b. This box is
then cut out and glued on the back of the flap labeled Why.

In between the two lower open flaps, students use the lower part of Activity 3.81a. Students write when the entrepreneur developed his/her idea, either where
the entrepreneur was born or where the idea was developed (state), and write
evidence of the entrepreneur’s success. This might be the size or worth of the
company now, the quantity of product distributed, or other similar data. This box is
cut out and glued in the space between the two lower flaps.

Students write their names on their projects and share with the class over the next
several days.
Distribute Activity 3.8-2 to students. Students are to look at each product and match it
to the person who had the idea and put forth the work to develop it. Then they write
the letter below the product in the box above the person’s name. If done correctly, the
word ENTREPRENEUR will be spelled out above the names of various entrepreneurs.
Page |3
Grade Level: 3
Evaluate/End
6.
Lesson: 8
Ask students:

What does the word entrepreneur mean?

Who are some entrepreneurs?

What did they do?
EXTENSION
Can ordinary people become famous entrepreneurs by having big ideas and working
hard? Do some research and discover why these entrepreneurs became famous: Sam
Walton, Ray Kroc, Sara Lee, J.K. Rowling, Mary Kay Ash, Steve Jobs, and Beyonce. What
great idea did they have?
Or, choose five of these well-known businesses and find out the name of the
entrepreneurs who had the idea and worked hard to develop them: Wendy’s, Facebook,
Microsoft, Kroger, H-E-B, Whataburger, Schlotzky’s, Jason’s Deli, Whole Foods, Dell
Computers, and Hilton Hotels.
Page |4
Grade Level: 3
Visual 3.8-1
Lesson: 8
Bret and Abby’s family decided to visit a wax museum while they were on
vacation. They couldn’t believe that these statues looked like famous people
but were made of wax. Bret really wanted to see Henry Ford because their
family had only bought Ford cars and trucks as long as he could remember.
Bret yelled, “Hey, Dad, look! It’s Henry Ford. I found him!”
Dad replied, “Do you know why he is famous?”
“Sure I do, Dad. He was a famous entrepreneur because he started the Ford
Motor Company. He made the Model A less expensive by inventing the
assembly-line process, where one person does one job on every car.”
“That’s right, and look over here,” said Dad. “It’s Matt Matson and Elliot
Handler. They had that same entrepreneurial spirit.”
“Sorry, Dad, I’ve never heard of them.”
“I bet Abby would recognize one of their best selling products. Does Barbie
Doll ring a bell? Elliot’s wife, Ruth, created a doll and gave it her daughter’s
nickname, Barbie. Ruth had noticed that when her daughter played with
paper dolls, she chose to dress the adult paper dolls rather than the paper
dolls that were children. So, she had the idea of creating a young adult doll
for children’s play. Barbie dolls have about a billion dollars a year in sales.
These men, Matt and Elliot, took the letters from both their names to create
the name for a huge toy company. M-A-T-T and E-L-L spells Mattell. They are
true entrepreneurs.”
Abby and Bret’s mother moved to the next room and made another
discovery. “Will you look at this? It’s Herb Kelleher!”
Page |5
Grade Level: 3
Lesson: 8
“Who is Herb Kelleher?” asked Abby.
Mom replied, “Herb Kelleher flew us here. Well, it wasn’t actually him, but
his pilots did. He recognized that people would fly short distances, such as
from Dallas to San Antonio, if the price of flying was low enough. Mr.
Kelleher cut costs by serving peanuts instead of meals. He encouraged his
employees to have fun. His creative entrepreneurial spirit built a huge
successful business called Southwest Airlines.”
“Wow, Mom, I wonder if Abby and I could become successful entrepreneurs
in the homemade ice cream business?” wondered Bret.
Mom answered, “Of course, you could. It just takes an ordinary person with a
big idea and the courage to work hard. My two little entrepreneurs are on
their way. One day you two will be in the Hall of Fame Wax Museum. You’ll
see!”
Page |6
Grade Level: 3
Activity 3.8-1a
Who: _______________________________
What: ______________________________
____________________________________
____________________________________
____________________________________
____________________________________
When: ______________________________
Where: _____________________________
Evidence of Success: __________________
____________________________________
____________________________________
____________________________________
Page |7
Lesson: 7
Grade Level: 3
Lesson: 7
Activity 3.8-1b
Why: ___________
________________
________________
________________
________________
________________
Henry Ford
Ruth Handler
Page |8
Herb Kelleher
Grade Level: 3
Activity 3.8-2
Lesson: 7
Who’s Business?
E
R
Page |9
Ringling Brothers
E
Levi Strauss
T
William S. Harley
Arthur Davidson
U
Colonel Harland
Sanders
E
W. K. Kellogg
N
Howard E. Butt
R
Oprah Winfrey
E
William T. Dillard
N
John Deere
P
Michael Dell
R
Walt Disney
Milton Hershey
Look at each product and match it to the person who had the idea and put forth the work to develop it.
Write the letter below the product in the box above the person’s name.
Grade Level: 3
Key 3.8-2
Lesson: 7
Who’s Business?
Look at each product and match it to the person who had the idea and put forth the work to develop it.
Write the letter below the product in the box above the person’s name.
R
P
N
E
R
N
E
U
T
E
E
R
P a g e | 10
Ringling Brothers
Levi Strauss
William S. Harley
Arthur Davidson
Colonel Harland
Sanders
W. K. Kellogg
Howard E. Butt
Oprah Winfrey
William T. Dillard
John Deere
Michael Dell
Walt Disney
Milton Hershey
E N T R E P R E N E U R

The Ladder to Success - Texas Council on Economic Education

Transcription

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