A fundamental concept in finance, students are taught to understand their financial well-being in terms of wealth, rather than simply cash. Throughout the lesson, a series of activities and applications are used to entrench this new way of thinking about finance. In addition, the lesson uses the accounting equations to get a precise mathematical model of these concepts, and students must critically apply them in varying contexts in order to deepen their understanding.
- Why is wealth a better measure of financial well-being than cash balance?
- How can the accounting equations, and the concepts of income, expense, asset and liability, help me to measure and better understand my wealth?
|Math: CCSS||Jumpstart Skills||National Standards for Financial Literacy|
- The introductory activity (worksheet 1) presents students with a scenario to get them thinking about how the amount of cash you have isn't always the best indicator of your financial situation.
- Students are introduced to the concept of wealth (Information sheet 1, Worksheet 2). Wealth is defined in terms of four key concepts: income, expense, asset and liability. Students must understand and apply these concepts.
- The whole class participates in a card game (A-L-I-E Activity) to apply their understanding to difficult cases and to facilitate a discussion relating what they've learned to their latent financial knowledge.
- Students use the net worth equation (Information sheet 2, Worksheet 3) to get a precise mathematical measure of wealth.
- Finally, students apply what they've learned to a complex, realistic financial scenario (Exit Slip 2), so they can appreciate the real world applicability of these concepts.
Wealth Not Cash Packet Contents:
- Lesson Plan: This provides a teacher with a step by step guide to teaching these materials.
- Student Materials: These are everything students will need for the lesson: this includes worksheets, information sheets, exit slips, and a quiz.
- Student Materials – Teacher Version: This is a copy of the student materials annotated with an answer key, and additional instructions on guiding students through specific activities.
- Lesson Plan Slides: This set of slides may be used as an aide when teaching the lesson.
- Supplemental Materials: Additional materials are available to provide further practice for students who need it, including alternative activities to fit different learning styles.