Sample Lesson 1: Saving for a Better Life!
Prepared by Ms.Wu
Key Concepts /
Big Ideas
Connect mathematical skills into real
life
Help students
to understand the importance of “ Save for the future” by setting up saving goals, share saving
experience, research and gather the information of current saving products
from financial institutions, calculating the interest earning and service
cost to compare the products. Students will work together to share, learn and
compare the most effective saving options for the youth and set up the saving
path.
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Curriculum Expectations
Overall Expectations
- Compare services available
from financial institutions, and solve problems involving the cost of making
purchase on credit -
Compare simple and compound interest, relate compound interest to exponential
growth, and solve problems involving compound interest.
Specific Expectations 2.1 Gather,
interpret and compare information about the various saving alternatives
commonly available from financial institutions, the related costs and
possible ways of reducing the costs.
1.4 Calculate the total interest earned on
an investment or paid on a loan by determining the difference between the
amount and the principal
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Brief Description of the Problem / Task
Students will explore the big idea “Saving
for the future” by reviewing simple and compound interest; discuss the saving
goals and paths to achieve it; using computing and mathematical skills to
research on internet and compare different financial institutions’ products
and costs; work with others to investigate and summarize solutions of how to
minimize service cost and maximize the saving profit.
Students will explore the following areas:
$
Why should we save for the future?
$
Saving Goals
$
Different Saving Options
$
Cost of Service
$
How to maximize the profit and minimize the cost?
Students will
apply skills related to decimals, percents and exponents to solve problems
involving compound interest. Students will complete a team task which
requires them to research online, gather information from financial
institutions, calculate using previous learned simple and compound interest
knowledge to find answers, students are expected to discuss and share their
goals, ideas and summary about their understand of saving for future.
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Materials and
Equipments Checklist
¨ Textbook: Foundations
for College Mathematics 11, (2007), McGraw-Hill Ryerson
¨ Book computer
lab (Internet available, check computers before class starts)
¨
Agenda- Appendix 1
¨
Warm-Up Question Sheet- Appendix 2
¨
Board notes- Appendix 3
¨
Team Working Activity Handout – Appendix 4
¨ Teacher’s
computer connects to lab projector (demonstration purpose)
¨ White or
Blackboard (show calculation steps)
¨ Students need
to use their calculators
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Getting Started (10- 15 minutes)
Teacher
·
Write
Agenda (Appendix
1) on the board and
quickly share the learning expectations for the day.
·
Handout
the individual Warm-Up Question Sheet (Appendix 2) and give them 5-7 minutes to complete
individually.
·
Discuss
the solutions in the class and review the skills in calculating compound
interest. (3 minutes)
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Students
·
Complete
Warm-Up questions independently
·
Ask
teacher questions or review simple and compound interest formulas from
previous chapter.
·
Share
answers with classmates and listen to the teacher
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Process
1.
Introduce the activity: Before we start, we will have a quick
review of the prerequisite skills that we need for today. Please complete the
Warm-Up Question Sheet independently and feel free to check the textbook or
ask me questions. You have 5 minutes to complete these questions.
2.
Key questions: Please check Appendix 2 Warm-Up Question Sheet
3.
Diagnostic/formative assessment: Observe, oral questioning while discuss
and take up the questions, ask students to explain or write formulas on the
board.
4.
Students
are expected to work independently and teacher will just walk around to
handout this worksheet.
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Teacher
·
Teacher
tells personal story of how did I save for a vacation and invite students to
share their future purchase plan. Examples: vacations, gift to family and
friends, wedding, future education, car.etc.
·
Teacher
bridges into the importance of having a saving goal. Use “Chalk and Talk” on
the board to demonstrate the sample saving path to achieve a saving goal. (Appendix 3).
·
Class brainstorm
the possible saving options currently available in the market. Teacher will
summarize and explain the most popular ones: Saving account and GICs.
·
Hand out the
Teamwork Activity Sheet (Appendix 4) and let
students work in pairs.
·
Briefly introduce
this activity, learning expectations and teamwork rules. Answer students’
questions before put them into teamwork.
·
Clearly specify
the time limit of this activity.
·
Walk around to
check whether students have access on computer and internet and whether they
research on the right financial institutions’ websites.
·
Observe their
learning behavior, progress and answer questions.
·
Double
check the students with ESL background to make sure they understand the
activity and what to do.
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Students
·
Participate
in class discussion of saving goals and brainstorm possible saving options.
·
Complete
Teamwork Activity Sheet with one partner using internet research,
mathematical and thinking skills.
·
Ask
questions
·
Share
thinking and learning with partner.
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Process
1.
The Problem/Task: Please check Appendix 4. Students will be engaged in how to
achieve their saving goals by contributing small amount of money at a regular
base and compare the interest earnings from the major financial institutions.
They will connect the mathematical skills into the real life situation.
2.
Time to complete: The think-pair-share working time
should be around 25-30 minutes.
3.
Possible Difficulties: Students may have difficulties in
understanding the saving accounts since many of them have no banking
experience. They may also have difficulty in understanding the “compounded
daily” or calculating the service charges based on regular banking fee
combine to the charge/per transaction fee.
4.
Investigation Procedure: Students will demonstrate their
understanding by completing the team research on 3 major financial
institutions; gather the interest rate and service charges of their saving
accounts and using mathematical skills to calculate the interest earnings
after a year. Then students will use analytical skills to determine which
saving option is the most effective one to maximize their interest earning
and minimize the service charge.
5.
The
activity had been scaffold by 3 parts to help students to investigate and experience
the thinking process of choosing a saving product.
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Teacher
·
Invite
students to share their solutions and analyze which saving option is the most
effective one.
·
Invite
one team to demonstrate how to find interest rate and service charges on the
website.
·
Invite
another team to demonstrate the mathematical strategies of finding interest
earning and calculating steps of service charges and explain the thinking
procedure.
·
Teacher
explains and confirms the solution.
·
Brainstorm
how to have a good balance of having a saving option to maximize the interest
earning but minimize the service charge.
·
Teacher
summarizes that choosing a good combination of checking account and saving
account and contributing smaller amount at regular bases is very effective
for youth saving.
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Students
·
Share
their solutions and research results.
·
Be
able to explain their thinking paths, analytical procedure and calculation
steps.
·
Listen
others’ ideas and discuss positively.
·
Ask
questions if there is any confusion.
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Process
How will you select the individual students or groups of students who
are to share their work with the class? What key questions will you ask
during the debriefing? Will you sum up the outcome of the activity? If yes,
then in what format?
1.
Let
students volunteer or invite the team who got the correct solution (observed
by teacher)
2.
Debriefing: Ask questions “Based on same principal, which
saving product is paying the highest interest after 1 year? Which one has the
lowest service charges if you use 10 debit transactions per month? What are
the options to maximize the interest earning and minimize the service cost at
the same time? Etc.
3.
Teacher’s Summary: After students brainstorm the best
saving options, teacher will suggest the most effect way for youth to save
money: Use both checking account and saving account to maximize the interest
earning and minimize the debit transaction cost, contributing small amount
saving at a regular base.
4.
Closing: Homework: Interview one friend or family member
who has credit card, share their positive/negative experience of using credit
cards, interest charges or late payment charges and pay off plans.
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Note: Appendices can't attach here, please contact our group if you need to see the appendices.
Freedom 55: Investment Alternatives
Prepared By: Katherine De Faria
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Key Concepts / Big Ideas
Developing students financial
literacy skills using real world contexts, symbolic equations, and
words.
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Curriculum
Expectations: Investigating Investment Alternatives
2.2 gather and interpret information about investment alternatives
(e.g., stocks, mutual funds, real estate, GICs, savings accounts), and
compare the alternatives by considering the risk and the rate of return
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Brief
Description of the Problem / Task
Students
will be introduced to alternative investment vehicles and develop
mathematical skills to analyze and compare different investment
opportunities.
Prior
Knowledge Required: Compound Interest Formula, Saving Alternative Investments
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Materials
Computer
and Internet Access
Chart
Paper
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Getting Started
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(5
Mins) Minds on: The teacher will have students watch
a short video on different forms of investments. This video will introduce the topic of
alternative investments and have students understand the difference between
assets that appreciate versus assets that depreciate in value.
Resource: Get Smarter About
Money
http://www.getsmarteraboutmoney.ca/en/managing-your-money/planning/investing-basics/Pages/video-building-long-term-wealth.aspx?group=Funny%20Money&page=1
(5
mins) Part I
First, the teacher will review
prior knowledge learned in the previous lesson on Savings Alternatives.
Students will be asked to work
with a partner to brainstorm how they would spend a lump sum of money.
Question:
You have worked hard through smart budgeting practices and have saved
$1000. You will need the money in a
year to buy a car and have decided to put the money in a savings
account. Calculate how much money you
will have in one year if you deposit the money in a savings account with an
annual interest rate of 0.5% compounded daily. (Future value)
Ask a student to put their
solution on the board.
The teacher can assess student
understanding of the prior days lesson based on student responses using
informal observation.
(10
mins) Part II
Students will be asked to think
about what other investment opportunities they could invest their money.
Question:
Can you think of alternative investment opportunities?
Sample Answers: GIC, RRSP,
RESP, Mutual Fund, Stock Market
Question:
Why can you potentially make more money in a mutual fund than a savings
account?
Sample Answers: Higher expected
return
Accommodations:
The teacher will circulate the room and assist student that have difficulty
with the future value question. Peer
tutors can also assist students that are struggling.
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(30
mins) Alternative Investment Research Activity:
Following the question regarding potential investment alternatives, the
teacher will introduce the learning activity. Students will be grouped based on their
strengths, with stronger students acting as group leaders to help support
other team members. The task will
involve each team researching investment alternatives and answering four questions. Students will first be asked to take out
their study guides and research and find definitions for each of the key
terms: GIC, RRSP, RESP, Mutual Fund, Rate of Return. The study guide will be used as a teaching
tool and allow students to gain prerequisite knowledge required for the main
task to follow.
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Working on It
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(30
mins) Parallel Task:
Investment
Alternatives Research Activity
The teacher will pose the
following question and allow students to work cooperatively to find a
creative solution: You need to invest
your $1000 and must decide between placing your money into a mutual fund or a
GIC. Choose three to five mutual funds
or GICs and examine their historical one-year rate of returns. If students choose to invest in a GIC have
them research the guaranteed rate of return.
Have
the students answer the following questions:
1. a) Which fund or GIC has the
greatest growth rate? What is the growth rate?
b) Which fund has the lowest
growth rate? What is the growth rate?
c) i. Explain why investing in
a mutual fund might be considered risky (for students researching mutual
funds)
ii. Explain why drawbacks exist
to investing in a GIC. (example answer: lower return)
2. Use the compound interest
formula to calculate the approximate value of $1000 invested 10 years ago
with these mutual funds/GICs.
3. Calculate the future value
of your investment if your rate of return is negative after two years. Example use an annual rate of return of
-5.1% and calculate the future value after two years.
4. Many people invest in RRSP’s
by contributing small, regular investments.
Imagine you invest $200 per month from age 16 until retirement at age
67. Assume the investment averages a
7% annual rate of return, compounded monthly.
How much money will you have at retirement? (Answer: $1,013,844.75)
Students can present their
information in the form of pictures graphs or words using chart paper.
The teacher will advise
students they have 5 minutes to wrap up their assignment and get ready to
present their findings.
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Assessment for
learning will be a checklist, based on students ability to answer the
questions accurately
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Consolidating
and Connecting
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(15
mins) Presentations: The teacher will ask the
groups to present their findings to the class. They can write out their answers on chart
paper.
Formative Assessment: The
teacher can use a checklist to ensure students gained the required skills.
Check List:
ü
Group understands growth rate
and how it relates to an investment alternative vehicle.
ü
Group understands the
relationship between risk and return.
ü
Group is able to calculate
compound interest and interpret what their solution means with both positive
and negative rates of return.
(5
mins) Consolidate Open Question: The teacher will ask students
what they learned about investment alternatives in order to consolidate their
understanding.
After the groups have
presented, the teacher will summarize the findings and emphasize key points,
including the relationship between risk and return and how that connects to
compound interest rates for investors.
The teacher will outline that investments exist to grow your wealth,
however, by seeking increased returns comes with increased risk and the
greater possibility of negative returns.
The teacher will explain one way to accumulate wealth is to make regular
contributions over a long period of time.
This allows the wealth to growth through the power of compound
interest as seen in question 4.
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During this phase, students:
• Share their findings;
• Justify and explain their thinking;
• Reflect on their learning;
• Demonstrate their learning using
diagrams, numbers, words.
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(5 mins) Further Classroom Consolidation
Ticket
Out the Door:
Ask students how they think
learning about compound interest and investment alternatives can help them in
the future, when they decide to invest their own money.
Resources:
Investor Education Plan: Get
Smarter about Money
Foundations
for College Mathematics, McGraw-Hill
Ryerson – 2007 pg. 468-469
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