Tools and Math for Money

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Lessons for Life

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Written by Written by Mary C. Suiter Mary C. Suiter Sarapage McCorkle Sarapage McCorkle

Center for Entrepreneurship and

Center for Entrepreneurship and Economic EducationEconomic Education

University of Missouri—St. Louis

Mathematics Consultant

Mathematics Consultant Helene J. Sherman

Helene J. Sherman

Cover

CoverDesigDesign n byby Sandy Morris

Sandy Morris

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Lesson son 11 The The SecSecret ret to Bto Becomecoming ing a Ma Millillionionairairee...11

Students learn how saving helps people become wealthy. They develop “rules to become a

millionaire” as they work through a series of exercises, learning that it is important to: (1) save early

and often, (2) save as much as possible, (3) earn compound interest, (4) try to earn a high interest

rate, (5) leave deposits and interest earned in the account as long as possible, and (6) choose accounts

for which interest is

for which interest is compounded often. compounded often. This lesson assumes tThis lesson assumes that students have worked with percentshat students have worked with percents

and decimal equivalents.

Les

Lesson son 22 WWallallpapepaperrWWoesoes... 2323

Students hear a story about Tom, a middle-school student who wants to redecorate his bedroom. They

measure the classroom wall dimensions, draw a scale model, and incorporate measurements for

windows and doors to determine the area that could be covered by wallpaper. Students then hear more

about Tom’s redecorating adventure, learning about expenses, budget constraints, and trade-offs. For

assessment, students measure their rooms at home. This lesson requires that students know how to

measure, or a review may be necessary before teaching.

Les

Lessoson 3n 3 MaMath ath and Tnd Taxaxeses: A: APaPairirto Cto Couount Ont Onn... 3535

Students examine careers and reflect on how workers use math in their occupations. They study

selected occupations, learning about the work skills (human capital) that different workers possess

and salaries that those workers earn. Next, students learn about how taxes are paid on income that

people earn and how income tax is calculated. They learn how the progressive federal income tax is

based on the ability-to-pay principle.

Les

Lesson son 44 SprSpreadieading ng the the BudBudgetget... 6161

Students develop a budget for a college student, using a spreadsheet. They examine the student’s

fixed, variable, and periodic expenses and revise to adjust for cash flow problems that appear on the

first spreadsheet. This lesson is designed to increase student awareness and appreciation of the

efficiency of using computer technology in math applications.

grade students apply math skills to some of skills to some of life’life’s costly challenges, learning important personal finance s costly challenges, learning important personal finance concepts alongconcepts along the way. This wonderfully integrated teaching resource complements what students will likely learn

the way. This wonderfully integrated teaching resource complements what students will likely learn before and afterward,before and afterward, because financial education isn’t a one-shot deal and financial literacy requires a lifetime of learning. The Jump$tart because financial education isn’t a one-shot deal and financial literacy requires a lifetime of learning. The Jump$tart Coalition is proud to continue to

Coalition is proud to continue to support this updated curriculum.support this updated curriculum. Laura Levine, Executive Director

Laura Levine, Executive Director The Jump$tart Coalition for

The Jump$tart Coalition for Personal Financial LiteracyPersonal Financial Literacy

In today’s complex financial world, being financially literate is

In today’s complex financial world, being financially literate is a critical life skill… as a critical life skill… as important as reading, writing andimportant as reading, writing and arithmetic. So to combine financial education within the teaching of math is an

arithmetic. So to combine financial education within the teaching of math is an ingenious way to teach both of ingenious way to teach both of thesethese subjects simultaneously

subjects simultaneously. To support financial literacy. To support financial literacy, Citi made , Citi made a commitment in 2004 a commitment in 2004 of $200 million of $200 million over ten years over ten years toto support financial education initiatives around the world. W

support financial education initiatives around the world. We truly believe that you are e truly believe that you are never too young to never too young to learn how tolearn how to manage your finances and that

manage your finances and that Money Math: Lessons for Life Money Math: Lessons for Lifeis a tool to start our young students on the road to becomingis a tool to start our young students on the road to becoming financially independent.

financially independent. Dara Duguay, Director Dara Duguay, Director

Citi Office of Financial Education Citi Office of Financial Education

Money Math: Lessons for Life

Money Math: Lessons for Lifeteaches students responsible financial practices before they develop bad habits. Forteaches students responsible financial practices before they develop bad habits. For example, one path to accumulating wealth is to start

example, one path to accumulating wealth is to start saving at a young age saving at a young age and let compounding interest pay you for and let compounding interest pay you for youryour effort. Ano

effort. Another is to ther is to plan your budget plan your budget realisticallyrealistically, by bringing , by bringing your income and your income and expenses into balance—minimizingexpenses into balance—minimizing spending so that you will have

spending so that you will have money to save. These two life lessons alone would reduce money to save. These two life lessons alone would reduce credit card debt, reducecredit card debt, reduce financial pressures on families, and increase personal savings and wealth.

financial pressures on families, and increase personal savings and wealth. Barbara Flowers, Director

Barbara Flowers, Director

Center for Entrepreneurship and Economic Education Center for Entrepreneurship and Economic Education University of Missouri—St. Louis

W

We’ve all heard e’ve all heard the facts: Americans are borrowing more and the facts: Americans are borrowing more and saving less; we haven’t planned saving less; we haven’t planned well enough for well enough for retirement;retirement; few of us are

few of us are prepared for financial emergencies. Dealinprepared for financial emergencies. Dealing with these realities can be stressful, but the g with these realities can be stressful, but the best research tells usbest research tells us that financial education can, and

that financial education can, and does, make a does, make a positive difference in people’s lives.positive difference in people’s lives. Money Math: Lessons for Life Money Math: Lessons for Lifeoffers aoffers a head start toward financial literacy that

head start toward financial literacy that applies middle school math applies middle school math concepts through real-life examples from personalconcepts through real-life examples from personal finance. Public Debt is proud to support this

finance. Public Debt is proud to support this unique program that helps our children learn how to unique program that helps our children learn how to make positive financialmake positive financial decisions—an important skill they can use throughout their lives.

decisions—an important skill they can use throughout their lives. John Swales, Assistant Commissioner

John Swales, Assistant Commissioner Office of Retail Securities

Office of Retail Securities Bureau of the Public Debt Bureau of the Public Debt Department of the Treasury Department of the Treasury

Foreward

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Financial Responsibility and Decision

Financial Responsibility and Decision MakingMaking LessonsLessons

Overall Competency Overall Competency A Apppplly y rreelliiaabblle e iinnffoorrmmaattiioon n aannd d ssyysstteemmaattiic c ddeecciissiioonn--mmaakkiinng tg to o ppeerrssoonnaal l ffiinnaanncciiaal l ddeecciissiioonnss.. 11 22 33 44 S Sttaannddaarrd d 11 EExxppeeccttaattiioonns s – – 44tth h GGrraaddee T

Takake rese respoponsnsibibililitity foy forr •• LiList est exaxampmpleles of fis of finanancnciaial del decicisisionons and ts and theheir pir posossisiblblee p peerrssoonnaal l ffiinnaanncciiaall ccoonnsseeqquueenncceess.. 11 22 33 44 d deecciissiioonnss •• IIddeennttiiffy y wwaayys s tto o bbe e a a fifinnaanncciiaalllly y rreessppoonnssiibblle e yyoouutthh 11 22 44 Expectations – 8th Grade Expectations – 8th Grade • • IIddeennttiiffy y wwaayys s tto o bbe e a a ffiinnaanncciiaalllly y rreessppoonnssiibblle e yyoouunng g aadduulltt.. 11 22 33 44 •

• Give Give examexamples ples of thof the benee benefits fits of fiof financinancial real responssponsibilibilityity a

annd d tthhe e ccoosstts s oof f ffiinnaanncciiaal l iirrrreessppoonnssiibbiilliittyy.. 11 22 33 44

Standard 2

Standard 2 Expectations – 4th GradeExpectations – 4th Grade

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Find nd anand ed evavaluluaatete •• GiGive ve exexaampmpleles os of sf siitutuaatitionons is in wn whihich ch fifinanannciciaal il innfoforrmamatitionon f fiinnaanncciiaal l iinnffoorrmmaattiioonn wwoouulld d lleeaad d tto o bbeetttteer r ddeecciissiioonnss.. 11 22 33 44 f frroom m a a vvaarriieetty y ooff •• IIddeennttiiffy y ssoouurrccees s oof f ffiinnaanncciiaal l iinnffoorrmmaattiioonn.. 11 22 33 44 source source Standard 4

Make

Make finanfinancial cial •• ExplaExplain in how how limilimited ted persopersonal nal finanfinancial cial resouresources rces affaffect ect thethe d deecciissiioonns s by by cchhooiiccees s ppeeoopplle e mmaakkee.. 11 22 33 44 s syysstteemmaattiiccaalllly y •• RRaannk k ppeerrssoonnaal l wwaannttss//nneeeedds s iin n oorrddeer r oof f iimmppoorrttaannccee.. 11 22 33 44 c coonnssiiddeerriinng g aalltteerrnnaattiivveess •• SSeet t mmeeaassuurraabblle e sshhoorrtt--tteerrm m ffiinnaanncciiaal l ggooaallss.. 22 33 44 an

and d coconsnseqequeuencnceses •• OutlOutlinine e ththe e ststepeps s in in sysyststememataticicalally ly evevalaluauatiting ng alalteternrnatativives es anandd m maakkiinnggaaddeecciissiioonn.. 11 22 33 44 Expectations – 8th Grade Expectations – 8th Grade • • PPrriioorriittiizze e ppeerrssoonnaal l fifinnaanncciiaal l ggooaallss.. 22 33 44 • • EEvvaalluuaatte e tthhe e rreessuulltts s oof f a a ffiinnaanncciiaal l ddeecciissiioonn.. 11 22 44 • • AApppplly y ssyysstteemmaattiic c ddeecciissiioon n mmaakkiinng g tto o a a mmeeddiiuumm--tteerrm m ggooaall.. 11 22 33 44 S Sttaannddaarrd d 55 EExxppeeccttaattiioonns s – – 88tth h GGrraaddee Deve

Develop lop •• ExplaExplain in how how discudiscussinssing g imporimportant tant finanfinancial cial mattmatters ers withwith c

coommmmuunniiccaattiioon n hhoouusseehhoolld d mmeemmbbeerrs s ccaan n hheellp p rreedduucce e ccoonnfflliicctt.. 22 44 strategies for discussing

strategies for discussing financial issues

financial issues

Personal Finance Standards

Correlation of

Correlation of Money Math: Lessons for Life Money Math: Lessons for Life toto

National Standards in K-12 Personal Finance Education

Money Math: Lessons for Life Money Math: Lessons for Life

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Income and Careers

Income and Careers LessonsLessons

Overall Competency Overall Competency U Usse e a a ccaarreeeer r ppllaan n tto o ddeevveelloop p ppeerrssoonnaal l iinnccoomme e ppootteennttiiaall.. 11 22 33 44 Standard 1 Standard 1

Explore career options

Explore career options Expectations – 4th GradeExpectations – 4th Grade

•

• ExpExplailain thn the die diffffereerence bnce betwetween een a cara career aeer and a jnd a job aob and idnd idententifyify v

vaarriioouus s jjoobbs s iin n ththe e ccoommmmuunniittyy.. 33 •

• GivGive an exe an exampample of hle of how an iow an indindividvidualual’’s ints intereerestssts, kno, knowlewledgedge, and, and a abbiilliittiiees s ccaan n aaffffeecct t ccaarreeeer r aannd d jjoob b cchhooiiccee.. 33 • • EExxaammiinne e a a jojob b rreellaatteed d tto o a a ccaarreeeer r oof f iinntteerreesstt.. 33 Expectations – 8th Grade Expectations – 8th Grade •

• GivGive an ee an examxample ple of hoof how edw educaucatiotion andn and/or t/or trairaininning can g can afaffecfectt l

liiffeettiimmeeininccoommee.. 33 •

• CCoommppaarre e ppeerrssoonnaal l sskkiilllls s aannd d iinntteerreesstts s tto o vvaarriioouus s cacarreeeer r ooppttiioonnss.. 33 •

• DesDescricribe the educbe the educatiationaonal/tl/trairaininning requig requiremrementents, incos, income potme potententialial,, a

annd d pprriimmaarry y dduuttiiees s oof f aat t lleeaasst t ttwwo o jjoobbs s oof f iinntteerreesstt.. 33

Standard 2

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Iddeennttiiffy y sosouurrccees s ooff •• EExxppllaaiin n tthhe e ddiiffffeerreenncce e bbeettwweeeen n a a wwaagge e aannd d a a sasallaarryy.. 33 p

peerrssoonnaal l iinnccoommee •• IIddeennttiiffy y jjoobbs s chchiillddrreen n ccaan n ddo o to to eeaarrn n mmoonneeyy.. 11 •

• GiGive ve exexamamplples es of of sosoururceces s of of inincocome me ototheher r ththan an a a wawage or ge or sasalalaryry.. 11

Expectations – 8th Grade

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• DefiDefine gne gift, ift, rent, rent, interinterest, est, dividdividend, end, capicapital tal gain, gain, tip, tip, commicommissionssion,, and business profit income.

and business profit income. 11 33 44

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Describe ribe factofactors rs •• DefiDefine ne tax tax and and explaexplain in the the difdifferenference ce betwbetween een sales sales andand a affffeeccttiinnggttaakkee--hhoommee iinnccoommee ttaaxxeess.. 33 p paayy •• GGiivve e aan n eexxaammpplle e oof f hhoow w ggoovveerrnnmmeennt t uussees s ttaax x rreevveennuueess.. 33 44 Expectations – 8th Grade Expectations – 8th Grade • • EExxppllaaiin n aalll l ititeemms s ccoommmmoonnlly y wwiitthhhheelld d ffrroom m grgroosss s ppaayy.. 33 44 Correlation of

Money Math: Lessons for Life ©

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Planning And Money

Planning And Money ManagementManagement LessonsLessons

Overall Competency Overall Competency O Orrggaanniizze e anand d ppllaan n ppeerrssoonnaal l ffiinnaannccees s aannd d ususe e a a bbuuddggeet t tto o mmaannaagge e ccaassh h ffllooww.. 11 22 33 44 S Sttaannddaarrd d 11 EExxppeeccttaattiioonns s – – 44tth h GGrraaddee De

Devevelolop p a a plplan an foforr •• GiGive ve exexamamplples es of of hohoususeheholold d exexpepensnse e cacatetegogoriries es anand sd souourcrceses s

sppeennddiinngg aannddssaavviinngg ooffiinnccoommee.. 22 44 •

• DesDescricribe hbe how ow to ato allollocatcate a weee a weekly kly allallowaowance nce amoamong tng thehe f fiinnaanncciiaal l ggooaalls s oof f ssppeennddiinngg, , ssaavviinngg, , aannd d sshhaarriinngg.. 11 Expectations – 8th Grade Expectations – 8th Grade • • PPrreeppaarre e a a ppeerrssoonnaal l ssppeennddiinng g ddiiaarryy.. 44 •

• DisDiscuscuss the cs the compomponeonents onts of a perf a personal busonal budgedget, int, inclucludinding incg incomeome,, p

pllaannnneed d ssaavviinngg, , ttaaxxeess, , aannd d ffiixxeed d aannd d vvaarriiaabblle e eexxppeennsseess.. 44 •

• GivGiven a hoen a houseuseholhold casd case stue studydy, calcul, calculate pate percercententageages for ms for majoajorr e

exxppeennsseeccaatteeggoorriieess.. 44

Standard 4

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Apply y consuconsumer mer skillskills s •• Apply Apply systsystematiematic c decisdecision ion makimaking ng to to a a persopersonal nal age-aage-appropppropriateriate t

too ppuurrcchhaasseeddeecciissiioonnss ppuurrcchhaassee.. 22 44

Expectations – 8th Grade

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• ExpExplailain thn the ree relatlationionshiship bep betwtween een spespendinding png pracractictices aes andnd a

acchhiieevviinng g ffiinnaanncciiaal l ggooaallss.. 11 22 44 •

• GivGiven aen an agn age-ae-apprppropropriate sciate scenaenariorio, de, descrscribe ibe how how to uto usese

systematic decision making to choose among courses of action systematic decision making to choose among courses of action t

thhaat t iinncclluudde e a a rraanngge e oof f ssppeennddiinng g aannd d nnoonn--ssppeennddiinng g aalltteerrnnaattiivveess.. 11 22 44

Personal Finance Standards

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Saving and Investing

Saving and Investing LessonsLessons

Overall Competency

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Immpplleemmeennt t a a ddiivveerrssiiffiieed d iinnvveessttmmeennt t ssttrraatteeggy y tthhaat t iis s ccoommppaattiibblle e wwiitth h peperrssoonnaal l ggooaallss.. 11 22 33 44

Standard 1

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Diissccuusss s hhoow w ssaavviinng g •• DDeessccrriibbe e ththe e aaddvvaannttaaggees s aannd d ddiissaaddvvaannttaaggees s oof f ssaavviinng g ffoor r a a 11 44 co

conntrtribibututes es tto o fifinanancnciialal shshorort-t-teterm rm ggoaoal.l. w weellll--bbeeiinngg •• DDeessccrriibbe e wwaayys s tthhaat t ppeeoopplle e ccaan n ccuut t eexxppeennssees s tto o ssaavve e mmoorre e oof f t thheeiirriinnccoommeess.. 44 Expectations – 8th Grade Expectations – 8th Grade •

• GivGive exe exampamples les of hof how sow saviaving moneng money cay can imn improprove fve finainancincialal w

weellllbbeeiinngg.. 11 44

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• DesDescricribe thbe the adve advantantageages and ds and disaisadvadvantantages oges of savf saving fing for shor shortort- -a annddmmeeddiiuumm--tteerrmmggooaallss.. 11 44 • • EExxppllaaiin n ththe e vvaalluue e oof f aan n eemmeerrggeennccy y ffuunndd.. 44 • • EExxppllaaiin n wwhhy y ssaavviinng g iis s a a pprreerreeqquuiissiitte e tto o iinnvveessttiinngg.. 11 Standard 2

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Explplaiain hon how inw inveveststiningg •• GiGive ave an exn examamplple of e of an ian invnvesestmtmenent ant and exd explplaiain hon how it w it cacann b

buuiilldds s wweeaalltth h aannd d hheellppss ggrroow w iin n vvaalluuee.. 11 meet financial goals

meet financial goals Expectations – 8th GradeExpectations – 8th Grade

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• AppApply sly systystemaematic tic decdecisiision mon makiaking to ng to detdetermermine ine whewhen to in to invenvestst c

caassh h nnoot t nneeeeddeed d ffoor r sshhoorrtt--tteerrm m ssppeennddiinng g oor r ememeerrggeenncciieess.. 11 •

• DefDefine ine the the timtime vae value lue of mof moneoney and y and expexplailain how n how smasmall all amoumountsnts o

of f mmoonneey y iinnvveesstteed rd reegguullaarrlly y oovveer r ttiimme e ggrroow w eexxppoonneennttiiaallllyy.. 11 •

• CalCalculculate ate and and comcomparpare sime simple ple intintereerest ast and cond compompound iund intenteresrestt ea

earnrninings gs anand ed explaxplain in ththe be benenefefitits os of a f a cocompmpouound nd rarate te of of reretuturnrn.. 11

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Evalaluauate te ininveveststmementnt •• LiList st ththe ae advdvanantatageges of s of ininveveststining mog moneney wy witith a fh a fininanancicialal a

alltteerrnnaattiivveess ininssttiittuuttiioonn.. 11 •

• ComComparpare the me the main fain feateatureures of ins of interterestest-ea-earnirning acng accoucounts ants at loct localal f

fiinnaanncciiaal l iinnssttiittuuttiioonnss.. 11

Correlation of

For additional information on

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Numbers

Numbers and Operatand Operation Standards ion Standards forfor Grades 6-8Grades 6-8 LessonsLessons Content Standard

Content Standard

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Insnstrtrucuctitiononal gal goaoalsls SpSpececifific eic expxpecectatatitionons fs for or ststududenents its in gn graradedes 6s 6-8-8 11 22 33 44

for all grades

U Unnddeerrssttaannd d nnuummbbeerrss,, •• wwoorrk k fflleexxiibblly y wwiitth h ffrraaccttiioonnss, , ddeecciimmaallss, , aannd d ppeerrcceennttss 11 33 44 w waayys s oof f rreepprreesseennttiinngg tto o ssoollvve e pprroobblleemmss n nuummbbeerrss, , rreellaattiioonnsshhiippss •• ddeevveelloop p mmeeaanniinng g ffoor r ppeerrcceenntts s ggrreeaatteer r tthhaan n 11000 0 aannd d lleesss s tthhaan n 11 11 33 44 a ammoonng g nnuummbbeerrss, , aanndd •• ddeevveelloop p mmeeaanniinng g ffoor r ppeerrcceenntts s ggrreeaatteer r tthhaan n 11000 0 aannd d lleesss s tthhaan n 11 11 33 44 n nuummbbeer sr syysstteemmss •• ddeevveelloop ap an un unnddeerrssttaannddiinng og of lf laarrgge ne nuummbbeerrs as annd rd reeccooggnniizze ae anndd a apppprroopprriiaatteelly uy usse ee exxppoonneennttiiaall, s, scciieennttiiffiicc, a, annd cd caallccuullaattoor nr noottaattiioonn 11 33 •

• use fause factorsctors, mult, multiplesiples, prim, prime facte factorizorizationation, and r, and relatelatively ively primprimee n

nuummbbeerrssttoossoollvveepprroobblleemmss 33 44 Un

Undedersrstatand mnd meaeaniningngss •• unundedersrstatand tnd the he memeananining ang and efd effefectcts os of arf aritithmhmetetic ic opopereratatioionsns o

of f ooppeerraattiioonns s aannd d hhooww wwiitth h ffrraaccttiioonnss, , ddeecciimmaallss, , aannd d iinntteeggeerrss 11 33 44 th

they ey rerelalatte te to oo onnee •• ususe te the he asasssocociiatatiive ve anand cd comommumuttatativive pe prropopeertrtieies os of af addddiitition on anandd a

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over addition to simplify computations with integers,simplify computations with integers, f

frraaccttiioonnss,,aanndd ddeecciimmaallss 11 33 44 •

• underunderstand stand and usand use the e the inveinverse rrse relatielationshionships of ps of additaddition aion andnd subtraction, multiplicati

subtraction, multiplication and on and division, and squaring and division, and squaring and findingfinding s

sqquuaarre e rrooootts s tto o ssiimmpplliiffy y ccoommppuuttaattiioonns s aannd d ssoollvve e pprroobblleemmss 11 44 Co

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make reasonable reasonable fractions fractions and and decimals decimals from from among among mental mental computation,computation, e

essttiimmaatteess eessttiimmaattiioonn, , ccaallccuullaattoorrs s or or ccoommppuutteerrss, , aannd d ppaappeer r aannd d ppeenncciill,, d

deeppeennddiinng g oon n tthhe e ssiittuuaattiioonn, , aannd d apappplly y tthhe e sseelleecctteed d mmeetthhooddss 11 33 44 •

• develdevelop and op and analanalyze alyze algoritgorithms fhms for coor computimputing wing with frth fractiactions,ons, d

deecciimmaallss, , aannd d iinntteeggeerrs s aannd d ddeevveelloop p fflluueennccy y iin n ththeeiir r uussee 11 33 44 •

• develdevelop and op and use suse strattrategies egies to esto estimatimate thte the rese results ults of raof rationational- l-n

nuummbbeer r ccoommppuuttaattiioonns s aannd d jjuuddgge e tthhe e rereaassoonnaabblleenneesss s oof f tthhe e rreessuullttss 11 33 44

Standards of Mathematics

Correlation of

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Alge

Algebra Standbra Standard forard forGradGrades 6-8es 6-8 LessonsLessons Content Standard

Content Standard

Instructional

Instructional goals goals for for Specific Specific expectations expectations for for students students in in grades grades 6-86-8 11 22 33 44

all grade

Under

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reellaattiioonnss, , anand d ffuunnccttiioonnss ttaabblleess, , grgraapphhss, , wwoorrddss, , aanndd, , wwhheen n ppoossssiibbllee, , ssyymmbboolliic c rurulleess 11 33 44 •

• relatrelate and e and compacompare dire differfferent fent forms orms of reof represepresentatntation fion foror a

arreellaattiioonnsshhiipp 11 33 44 Repre

Represent sent and and analanalyze yze •• develdevelop op an an initinitial ial conceconceptual ptual underunderstanstanding ding of of diffdifferent erent usesuses m

maatthheemmaattiiccaal l ssiittuuaattiioonns s oof f vvaarriiaabblleess 11 33 44 and

and strustructurectures s usinusing g •• use use symbosymbolic lic algealgebra bra to to reprerepresent sent situsituationations s and and to to solvesolve a

allggeebbrraaiic c sysymmbboollss pprroobblleemmss, , eessppeecciiaalllly y tthhoosse e tthhaat t iinnvvoollvve e lliinneeaar r rreellaattiioonnsshhiippss 11 33 44 •

• recogrecognize nize and geand generatnerate eque equivaleivalent font forms frms for sior simple mple algebalgebraicraic e

exxpprreessssiioonns s aannd d ssoollvve e lliinneeaar r eeqquuaattiioonnss 33 44 U

Use se mmatathehemmatatiicacall •• mmododeel l anand d ssololve ve conconttexextutualaliizezed d pproroblblemems s ususiing ng vavarrioiouuss m mooddeells s tto o rerepprreesseennt t aanndd rreepprreesseennttaattiioonnss, , ssuucch h aas s ggrraapphhss, , ttaabblleess, , anand d eeqquuaattiioonnss 11 22 33 44 understand quantitative understand quantitative relationships relationships Geome

Geometry Standtry Standards forards forGradGrades 6-8es 6-8 LessonsLessons Content Standard

Content Standard

Instructional

Instructional goals goals Specific Specific expectations expectations for for students students in in grades grades 6-86-8 11 22 33 44

for all grades

Anal

Analyze yze characharactericteristics stics •• preciprecisely sely descrdescribe, ibe, clasclassifysify, , and and underunderstand stand relarelationstionships hips amongamong and

and properties properties of of two- two- types types of of two- two- and and three-dimensional three-dimensional objects objects using using theirtheir a

annd d tthhrreeee--ddiimmeennssiioonnaal l ddeeffiinniinng g pprrooppeerrttiieess 22 geome

geometric tric shapeshapes s and and •• underunderstand stand relatrelationshionships ips among among the the angleangles, s, side side lengtlengths,hs, d deevveelloop p mmaatthheemmaattiiccaal l ppeerriimmeetteerrss, , aarreeaass, , aannd d vvoolluummees s oof f ssiimmiillaar r obobjjeeccttss 22 arguments about arguments about geometric relationships geometric relationships Appl

Apply y trantransformsformationations s •• descrdescribe ibe sizessizes, , positpositionsions, , and and orieorientatintations ons of of shapeshapes s underunder an

and d ususe e sysymmmmetetry ry to to infoinformrmal al trtranansfsforormamatitionons s susuch ch as as flflipips, s, tuturnrns, s, slslidideses, , anand d scscalaliningg 22 analyze mathematical

analyze mathematical situations

situations Use

Use visuavisualizatlization, ion, •• draw draw geomegeometric tric objecobjects ts with with specispecified fied propepropertiesrties, , such such as as sideside spatial

spatial reasoning, reasoning, and and lengths lengths or or angle angle measuresmeasures geome

geometric tric modelmodeling ing to to •• use use two-two-dimedimensionnsional al reprrepresentesentatioations ns of of threthree-dime-dimensioensional nal objecobjectsts s

soollvve e pprroobblleemmss tto o vviissuuaalliizze e aannd d ssoollvve e pprroobblleemms s ssuucch h aas s tthhoosse e iinnvvoollvviinng g ssuurrffaaccee a

arreeaaaannddvvoolluummee 22 •

• use geuse geometrometric moic models dels to reto represepresent and nt and explaexplain numin numericerical anal andd a

allggeebbrraaiic c rreellaattiioonnsshhiippss 22 •

• recogrecognize nize and apand apply geply geometrometric idic ideas aeas and rend relatiolationshipnships in as in areasreas outside the mathematics classroom, such as art, science, and outside the mathematics classroom, such as art, science, and e

evveerryyddaayylliiffee 22

Correlation of

(15)

Measurem

Measurement Standent Standards ards forfor Grades Grades 6-86-8 LessonsLessons Content Standard

Content Standard

Instructional

all grades

Under

Understand stand measmeasurablurable e •• underunderstand stand relatrelationshionships ips among among units units and and conveconvert rt from from one one unit unit toto a

attttrriibbuuttees s oof f obobjjeecctts s aanndd aannootthheer r wwiitthhiin n tthhe e ssaamme e ssyysstteemm 22 the

the uniunits, ts, syssystemtems, s, andand •• undunderserstantand, d, selselectect, a, and nd use use uniunits ts of of appappropropriariate te sizsize ae and nd typtype te too p

prroocceessssees s ooff mmeeaassuurre e aanngglleess, , ppeerriimmeetteerr, , aarreeaa, , ssuurrffaacce e arareeaa, , aannd d vvoolluummee 22 measurement

measurement Appl

Apply y apprappropriaopriate te •• selecselect t and and apply apply techntechniques iques and and tools tools to to accuraccuratelately y find find lenglength,th, te

techchniniququeses, to, toolols, as, andnd arareaea, vo, volulumeme, an, and and anglgle mee measasurures tes to apo apprpropopririatate lee levevelsls f

foorrmmuullaas s to to ddeetteerrmmiinnee oof f pprreecciissiioonn 22 m

meeaassuurreemmeennttss •• ddeevveelloop p aannd d ususe e ffoorrmmuullaas s tto o ddeetteerrmmiinne e tthhe e cciirrccuummffeerreenncce e oof f circles and the

circles and the area of triangles, parallelograms, trapezoids, andarea of triangles, parallelograms, trapezoids, and circles and develop strategies to find the area

circles and develop strategies to find the area of more-of more-c

coommpplleexxsshhaappeess 22 •

• sosollve ve prprooblblemems s iinvnvololvivinng g sscacalle e fafactoctorsrs, , ususiing ng rarattio io aand nd prpropopororttioionn 22

Data

Data Analysis and PAnalysis and Probability Standrobability Standards forards forGrades 6-8Grades 6-8 LessonsLessons Content Standard

Content Standard

Instructional

all grades

Formu

Formulate late questquestions ions •• FormFormulate ulate questquestions, ions, desigdesign n studstudies, ies, and and collcollect ect data data about about aa that

that can can be be addressed addressed characteristic characteristic shared shared by by two two populations populations or or differentdifferent w

wiitth h ddaatta a aannd d ccoolllleecctt, , cchhaarraacctteerriissttiiccs s wwiitthhiin n oonne e popoppuullaattiioonn 22 33 44 organize, and display

organize, and display relevant data to answer relevant data to answer them

them Selec

Select t and and use use •• find, find, use, use, and and interinterpret pret measumeasures res of of centecenter r and and spreaspread,d, a

apppprroopprriiaatte e ssttaattiissttiiccaal l iinncclluuddiinng g mmeeaan n aannd d iinntteerrqquuaarrttiille e rraannggee 22 44 methods to analyze data

methods to analyze data Devel

Develop op and and evalevaluate uate •• use use obserobservativations ons about about difdifferenferences ces betwbetween een two two or or more more sampsamplesles inferences

inferences and and to to make make conjectures conjectures about about the the populations populations from from which which thethe p prreeddiiccttiioonns s tthhaat t aarre e sasammppllees s wweerre e ttaakkeenn 33 44 b baasseed d oon n dadattaa •• uusse e ccoonnjjeeccttuurrees s tto o ffoorrmmuullaatte e nneew w ququeessttiioonns s anand pd pllaan n nneew w ssttuuddiieess t tooaannsswweerrtthheemm 33 44

Standards of Mathematics

Correlation of

(16)

xiv xiv

Problem-Solving

Problem-Solving Standard Standard forfor Grades Grades 6-86-8 LessonsLessons

Process Standard

Instructional goals for all grades

Instructional goals for all grades 11 22 33 44 • • bbuuiilld d nneew w mmaatthheemmaattiiccaal l kknnoowwlleeddgge e tthhrroouuggh h pprroobblleem m ssoollvviinngg 11 22 33 44 • • ssoollvve e pprroobblleemms s tthhaat t aarriisse e iin n mmaatthheemmaattiiccs s aannd d iin n ootthheer r ccoonntteexxttss 11 22 33 44 • • aapppplly y aannd d aaddaappt t a a vvaarriieetty y oof f aapppprroopprriiaatte e ssttrraatteeggiiees s tto o ssoollvve e pprroobblleemmss 11 22 33 44 • • mmoonniittoor r aannd d rreefflleecct t oon n tthhe e prproocceesss s oof f mmaatthheemmaattiiccaal l pprroobblleem m ssoollvviinngg 11 22 33 44 Reasoning an

Reasoning and Proof d Proof Standard forStandard forGrades 6-8Grades 6-8 LessonsLessons

Process Standard

Instructional goals for all grades 11 22 33 44 • • mmaakke e aannd d iinnvveessttiiggaatte e mmaatthheemmaattiiccaal l ccoonnjjeeccttuurreess 11 22 33 44 • • ddeevveelloop p aannd d eevvaalluuaatte e mmaatthheemmaattiiccaal l aarrgguummeenntts s aannd d pprrooooffss 11 22 33 44 • • sseelleecct t anand d uusse e vvaarriioouus s ttyyppees s oof f rreeaassoonniinng g aannd d mmeetthhoodds s oof f pprrooooff 11 22 33 44 Communication

Communication Standard Standard forforGrades Grades 6-86-8 LessonsLessons

Process Standard

Instructional goals for all grades 11 22 33 44 •

• oorrggaanniizze e aannd d ccoonnssoolliiddaatte e tthheeiir r mmaatthheemmaattiiccaal l tthhiinnkkiinng g tthhrroouuggh h cocommmmuunniiccaattiioonn 11 22 33 44 •

• commcommunicaunicate tte their heir mathemathematimatical cal thinthinking king cohercoherently ently and cand clearllearly to y to peerspeers,, t teeaacchheerrss,,aannddotothheerrss 11 22 33 44 • • aannaallyyzze e aannd d eevvaalluuaatte e tthhe e mmaatthheemmaattiiccaal l ththiinnkkiinng g aannd d ssttrraatteeggiiees s oof f ootthheerrss 11 22 33 44 • • uusse e tthhe e lalanngguuaagge e oof f mmaatthheemmaattiiccs s tto o eexxpprreesss s mmaatthheemmaattiiccaal l iiddeeaas s pprreecciisseellyy 11 22 33 44 Connections

Connections Standard Standard forforGrades Grades 6-86-8 LessonsLessons

Process Standard

• rreeccooggnniizze e aannd d uusse e ccoonnnneeccttiioonns s amamoonng g mmaatthheemmaattiiccaal l iiddeeaass 11 22 33 44 •

• underunderstanstand how d how mathmathematematical ical ideas ideas inteinterconnrconnect aect and buind build on ld on one aone anothenother to r to produproduce ace a c

coohheerreennttwwhhoollee 11 22 33 44 •

• rreeccooggnniizze e aannd d aapppplly y mmaatthheemmaattiiccs s iin n ccoonntteexxtts s oouuttssiidde e oof f mamatthheemmaattiiccss 11 22 33 44

Represen

Representation Stantation Standard fodard forr Grades Grades 6-86-8 LessonsLessons

Process Standard

• creatcreate ane and usd use ree represepresentatntations ions to to orgaorganize, nize, recorrecord, d, and and commcommunicaunicatete m maatthheemmaattiiccaallidideeaass 11 22 33 44 • • sseelleecctt, , aappppllyy, , aannd d ttrraannssllaatte e aammoonng g mmaatthheemmaattiiccaal l rreepprreesseennttaattiioonns s tto o ssoollvve e pprroobblleemmss 11 22 33 44 • • uusse re reepprreesseennttaattiioonns ts to mo mododeel al annd id inntteerrpprreet t pphhyyssiiccaall, s, soocciiaall, , anand md maatthheemmaattiiccaal l pphheennoommeennaa 11 22 33 44 Correlation of

(17)

Students learn how saving helps people become wealthy. They develop

“rules to become a millionaire” as they work through a series of exercises,

learning that it is important to: (1) save early and often, (2) save as much as

possible, (3) earn compound interest, (4) try to earn a high interest rate, (5)

leave deposits and interest earned in the account as long as possible, and (6)

choose accounts for which interest is compounded often. This lesson

assumes that students have worked with percents and decimal equivalents.

Students will be able to:

1.

1. define define savingsaving, inc, incentive, entive, interinterest, est, and opand opportunportunity city cost.ost.

2.

2. solve prsolve problems uoblems using intsing interest rerest rate, fraate, fractionsctions, decimal, decimals, and pers, and percentagecentages.s.

3.

3. calcalculculate ate compcompound ound intintereerest.st.

4.

4. expexplailain the ben the benefnefits oits of comf compounpound intd intereerest.st.

5.

5. expexplailain the on the opporpportuntunity city cost oost of saf savinving.g.

6.

6. desdescricribe a sbe a saviavings ngs bond bond invinvestestmentment..

percent, decimal, data analysis, number sense, solving equations, problem

solving

interest, interest rate, compounding, wealth, saving, savings, inflation,

purchasing power

•

• copcopies ies of of ActActiviivitieties 1-s 1-1 th1 throurough 1gh 1-5 f-5 for eor each sach studtudentent

•

• tratranspnsparearencincies es of of VVisuisuals als 1-1 1-1 thrthrougough 1h 1-7-7

• • cacalclcululatator or fofor r eaeach ch ststududenentt • • ccoommppuutteerrss 4 - 6 days 4 - 6 days Get Ready Get Ready 1.

1. Ask tAsk the folhe following. lowing. Do you Do you want want to be to be a mila millionailionaire? re? What iWhat is as a

millionaire? Explain that a millionaire is a person who has wealth totaling

one or more million dollars, noting that wealth is the total value of what a

person owns minus what he or she owes. How could you become a

Lesson Description Lesson Description Objectives Objectives Mathematics Mathematics Concepts Concepts Personal Finance Personal Finance Concepts Concepts Materials Required Materials Required Time Required Time Required Procedure Procedure

The Secret to Becoming a

Millionaire

Lesson 1

(18)

Last week, Mrs. Addle told her students that they could become

millionaires if they followed the rules she provided them. As a matter of

fact, she guaranteed that if they followed her rules exactly, they would

be millionaires in 47 years! Misha and the rest of her classmates

thought that Mrs. Addle was crazy. If she had rules that would

guarantee that someone could be a millionaire, why was she teaching

seventh-grade math? Why wasn’t she rich and retired? Why didn’t she

follow her own rules? Mrs. Addle told the students to go home and talk

to their families about what she had said.

Misha went home and told her family what Mrs. Addle had said.

Misha’s mother knew a lot about money and financial matters. She just

smiled at Misha and said that Mrs. Addle was correct. When Misha

returned to class the next day, Mrs. Addle asked what the students’

families said. Of the 25 students in Mrs. Addle’s class, 20 students said

that their parents and other family members agreed with Mrs. Addle.

The other five students forgot to ask.

2.

2. ExplaiExplain that tn that to learn mo learn more abouore about being a t being a millimillionaireonaire, the st, the students udents mustmust

review what a percent is. (Note: If needed, Visual 1-1 includes a

review.)

3.

3. Point out tPoint out that in the sthat in the storyory, there are 2, there are 25 student5 students in Mishs in Misha’a’s classs class, and 20, and 20

students discovered that their families agreed with Mrs. Addle. Ask the

following questions. (Note: Step-by-step calculations are provided on

Visual 1-2.)

a.

a. What What percent percent of tof the sthe studentsudents’’familfamilies ies thought thought that that Mrs. Mrs. Addle Addle waswas

correct? (

correct? (80%80%))

b.

b. What pWhat percent ercent of thof the stude students fents failed ailed to do tto do their hheir homeworomework? (k? (20%20%))

Get Going Get Going

1.

1. ExplaiExplain that you win that you will sharll share Mrs. e Mrs. Addle’Addle’s secrets secrets with ths with them. Wheem. When theyn they

become millionaires, they can donate money to the school’s math

department! Discuss the following.

a.

a. How do How do you earyou earn incon income? (me? (mow lmow lawns, awns, baby-sbaby-sit, it, walk pwalk pets, ets, rakerake

leaves, do chores around the house)

b.

b. What dWhat do you do o you do with with your iyour income? ncome? (save (save it, sit, spend itpend it, save , save some asome andnd

spend some)

c.

c. Why do Why do you speyou spend your nd your income? income? (to bu(to buy thiny things thags that they t they want nwant nowow,,

such as movies, food, and clothes)

d.

d. Why do Why do you savyou save your e your incomeincome? (to ? (to buy thibuy things thngs they want ey want in thein the

future)

2 2

The Secret to Becoming a

Millionaire

Lesson 1

Money Math

Money Math(Lesson 1)(Lesson 1)

©

(19)

2.

2. ExplaiExplain that n that when peowhen people earple earn incomn income, they e, they can specan spend it nd it or savor save it.e it.

When they are spending, they spend their money today for goods and

services, but they give up the chance to use that money to buy goods

and services in the future. When saving, they give up goods and

services now to have other goods and services in the future. When

people make choices, the highest-valued alternative choice that is given

up is

up is their opportunity their opportunity cost. cost. Read the folRead the following scenario.lowing scenario.

Next year, you want to take a family and consumer science class, a

woodworking class, and a photography class. However, you only have

room in your schedule for one of these three. Which would you choose?

What would be your second choice?

3.

3. Have sevHave several seral studenttudents shars share their e their firsfirst and sect and second choiond choices. Expces. Explain tlain thathat

their second choice is their opportunity cost—it is the highest-valued

alternative class. When people save, the goods and services that they

would have purchased now—the highest-valued alternative—represent

their opportunity cost. When they spend now, their opportunity cost is

goods and services they could have in the future.

4.

4. AssiAssign gn ActiviActivity 1-1ty 1-1. When . When they are they are finisfinished, havhed, have studene students shats sharere

answers.

answers. (1. $360, $720, $1080, $1440, $1800, $2160; 2. The items(1. $360, $720, $1080, $1440, $1800, $2160; 2. The items

they would have purchased each day with $2. This is their opportunity

cost. 3. A

cost. 3. A+ (B x 180) w+ (B x 180) where here AA= pre= previous year bvious year balance and alance and B = theB = the

amount deposited each day; 4. Save more each day.)

amount deposited each day; 4. Save more each day.) Point out thatPoint out that

students have different opportunity costs because their tastes and

priorities are different.

5.

5. DisplDisplay Vay Visual 1isual 1-3. Hav-3. Have studene students deduts deduce what hce what has changas changed in eached in each

case. They should develop Rules 1 and 2 to become a millionaire. (In

the first case, the saver is saving for a longer period; therefore,

Millionaire Rule 1 is to start saving early. In the second case, the saver

is saving $4 per day instead of $2 per day; therefore, Millionaire Rule 2

is to save more or to save as much as possible.) Write the two rules on

the board.

6.

6. DiDiscscususs ts the fhe folollolowiwingng..

a.

a. How mHow many of any of you hayou have save savings vings accountaccounts in s in banks? banks? (Answ(Answers ers willwill

vary.)

b.

b. What What are the are the benefibenefits of ts of placing placing your syour savings avings in a bain a bank? (Thnk? (Thee

money is safe in the bank, and the bank pays interest.)

c.

c. What What is iis interesnterest? (t? (StudentStudents may s may or mor may not ay not know know the exthe exactact

definition of interest.)

7.

7. For homFor homework, ework, studestudents whnts who have so have savings avings accountaccounts may bs may bring iring in an a

statement from their savings accounts. Have all students look for ads in

local newspapers and listen to television and radio ads about banks. Tell

The Secret to Becoming a

Millionaire

Lesson 1

(20)

Keep It Going Keep It Going

1.

1. AssigAssign An Activitctivity 1-2. y 1-2. Allow sAllow studenttudents to shars to share their ane their answersswers..(1. $396,(1. $396,

$831.60, $1310.76, $1837.84, $2417.62, $3055.38; 2. (A+360) +

[(A+360) x .10] where A

[(A+360) x .10] where Ais the previous year’is the previous year’s ending balance, ors ending balance, or, 1.10, 1.10

(A+360); 3. These amounts are higher because they earn interest on the

deposit and interest on the interest earned in previous years.)

2.

2. Point ouPoint out that tt that the 10% amhe 10% amount thount that Unclat Uncle Mort pe Mort pays is aays is an incentn incentive. ive. AnAn

incentive is a reward that encourages people to behave in a particular

way. This incentive encourages people to save and keep their savings.

How much of an incentive did Uncle Mort pay the first year?

How much of an incentive did Uncle Mort pay the first year?($360 x($360 x

.10 = $36)

3.

3. ExpExplalain tin that bhat bankanks prs proviovide ande anincentiveincentivefor people to save. Whenfor people to save. When

people make deposits to savings accounts, banks are able to use the

money to loan to others. In return, the banks pay interest to savers.

Interest

Interestis a payment for the use of money. Bankers don’t usually tellis a payment for the use of money. Bankers don’t usually tell

people that they will earn a specific sum of money. Savers are told the

interest rate to be received. The

interest rate to be received. The interest rateinterest rate is the annual interestis the annual interest

payment on an amount expressed as a percentage. For example, a bank

might pay a 4% interest rate on a savings account. Uncle Mort pays

10%.

4.

4. WWrite trite the word “he word “compouncompounding” oding” on the boarn the board. d. Ask stAsk students udents what thwhat theyey

think this word means and how it applies to becoming a millionaire.

Allow students to look the word up in the dictionary and in newspaper

advertisements. Guide students to recognize that leaving interest earned

on savings in the savings account so that the saver earns interest on the

original deposit and interest on the interest is called earning

original deposit and interest on the interest is called earning compoundcompound interest

interest. Have students develop Millionaire Rule 3 and write it on the. Have students develop Millionaire Rule 3 and write it on the

board.

board. (Earn compound interest.)(Earn compound interest.)

5.

5. ExplaiExplain that n that banks pbanks pay compay compound inound interesterest on st on savingsavings, alth, although it ough it maymay

not be as much as Uncle Mort pays. Discuss the following.

a.

a. Give exGive examples amples of the of the interinterest rest rates lates local bocal banks aranks are payie paying frong from them the

statements, ads, and ad information brought from home.

statements, ads, and ad information brought from home.(Answers(Answers

will vary; however, the rates are likely to be much lower than the

10% that Uncle Mort pays.)

b.

b. What wWhat would haould happen to ppen to the amothe amount of unt of accumulaccumulated sated savings avings if Unif Unclecle

Mort paid only 5%?

Mort paid only 5%? (It would be less.)(It would be less.)

6.

6. DisplDisplay Vay Visual 1isual 1-4. Expla-4. Explain that thin that this tablis table illuse illustrattrates what woues what wouldld

happen if a bank paid 5% interest compounded annually. Point out that

comparing the savings results at 5% with the savings results for 10%

($2571.12 at 5% compared to $3055.78 at 10%)

($2571.12 at 5% compared to $3055.78 at 10%) gives us another rulegives us another rule

for becoming a millionaire. Discuss the following.

a.

a. Based Based on thon the compe comparisoarison betwn between aceen accumulacumulated sted savings avings with with 5%5%

interest and with 10% interest, what is the fourth rule of becoming a

4 4

Teaching Tip: Teaching Tip:

Show students how just a Show students how just a little bit of money can add little bit of money can add up to a lot of cash with up to a lot of cash with careful saving and investing. careful saving and investing. Ask your students to save Ask your students to save

their pocket change for one their pocket change for one month.

month.

Assuming your students save Assuming your students save $1 a day, they should have $1 a day, they should have $30 after one month of $30 after one month of saving. If your students saving. If your students invest $30 worth of change invest $30 worth of change every month for 10 years, every month for 10 years, how much money will they how much money will they have if they invest their have if they invest their money in the following money in the following ways:

ways:

• Savings account with a 2% • Savings account with a 2% annual rate of return annual rate of return • Money market fund with a • Money market fund with a 5% annual rate of return 5% annual rate of return • Mutual fund with a 9% • Mutual fund with a 9% annual rate of return annual rate of return What can your students buy What can your students buy with this money? Will it be with this money? Will it be enough to purchase a car enough to purchase a car when they turn 22? when they turn 22?

The Secret to Becoming a

Millionaire

Lesson 1

Money Math

Money Math(Lesson 1)(Lesson 1)

©

(21)

millionaire?

millionaire? (Try to earn a high interest rate.)(Try to earn a high interest rate.) Add this rule to theAdd this rule to the

list on the board.

b.

b. What What would hwould happen tappen to accumo accumulated ulated savingsavings if s if the depthe deposits osits andand

interest were left in the account, earning 5% interest for another six

years?

years? (It would increase.)(It would increase.)

c.

c. WhaWhat is tt is the fihe fifth rfth rule of bule of becomecoming a miing a millillionaionaire?re?(Leave deposits(Leave deposits

and interest in the account for as long as possible.)

and interest in the account for as long as possible.) Add this rule toAdd this rule to

the board.

7.

7. Have stHave students udents considconsider how ter how they used they used their calheir calculatoculators to srs to solve tholve theseese

problems. Guide them to develop a recursive equation such as [ANS +

0.05(ANS)] = ending balance for each year or [ANS + 0.05(ANS)] +

360 = beginning balance for each successive year.

8.

8. Review tReview the basic rhe basic rules for bules for becominecoming a millig a millionaireonaire. W. Write thrite the followe followinging

rules on the board.

(1)

(1) Save Save early early and oand often.ften.

(2) Save as much as possible.

(3) Earn compound interest.

(4)

(4) Try tTry to earn a high ino earn a high interesterest rate.t rate.

(5) Leave deposits and interest in the account as long as possible.

Graph It (Optional) Graph It (Optional)

1.

1. TTell stuell students tdents they will crhey will create four eate four line graline graphs on the saphs on the same set of axeme set of axes.s.

These graphs should show the amount of savings earned over time: (a)

when saving $360 per year for six years in a bank, (b) when saving

$360 for 10 years in a bank, (c) when saving $720 per year for six

years, and (3) when saving $360 per year for six years at a 5% interest

rate per year. They determine the dependent and independent variables

and label the axes appropriately. They should retain these graphs for

later use. They may use a graphing calculator, a computer, or paper and

pencil to create the graphs.

2.

2. Have sHave studenttudents creas create a cite a circle grcle graph traph that shhat shows tows the perche percent of ent of totaltotal

savings that resulted from deposits by the saver and the percent that

resulted from compound interest when saving $360 per year for six

years at a 5% interest rate. They may use a graphing calculator, a

computer, or paper, pencil, and a protractor.

Check It—Assessment Check It—Assessment

Display Visual 1-4, and assign Activity 1-3 to each student. When students

Tools and Math for Money

Lessons for Life

Lessons for Life

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money

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2=36-

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Money Math

Money Math

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Table of Contents

Table of Contents

Foreward

Personal Finance Standards

Personal Finance Standards

Personal Finance Standards

Personal Finance Standards

Standards of Mathematics

Standards of Mathematics

Standards of Mathematics

Standards of Mathematics

The Secret to Becoming a

The Secret to Becoming a

Millionaire

Millionaire

Lesson 1

Lesson 1

The Secret to Becoming a

The Secret to Becoming a

Millionaire

Millionaire

Lesson 1

Lesson 1

The Secret to Becoming a

The Secret to Becoming a

Millionaire

Millionaire

Lesson 1

Lesson 1

The Secret to Becoming a

The Secret to Becoming a

Millionaire

Millionaire

Lesson 1

Lesson 1

The Secret to Becoming a