Grade: 10 Lesson # 2

What is consumerism?

Why is it necessary to save?

SS.912.FL.3.1 Discuss the reasons why some people have a tendency to be impatient and choose immediate spending over saving for the future.

Correlated Literacy Standards:

LAFS.910.RL.1.1

Cite strong and thorough textual evidence to support analysis of what the text says explicitly as well as inferences drawn from the text.

LAFS.910.L.3.6

Acquire and use accurately general academic and domain-specific words and phrases, sufficient for reading, writing, speaking, and listening at the college and career readiness level; demonstrate independence in gathering vocabulary knowledge when considering a word or phrase important to comprehension or expression.

Financial Literacy is a key to success

SS.912.FL.3.1 Discuss the reasons why some people have a tendency to be impatient and choose immediate spending over saving for the future.

Consumerism: Using Your Wages to Save or Spend, Which Is the Best Choice?

Lesson Number: 2

Correlated Florida Standards (See Full Text on Cover Page)

·  LAFS.910.RL.1.1

·  LAFS.910.L.3.6

Essential Questions

·  Why do people decide to buy goods or services to satisfy their wantsinstead of saving money?

·  How do you make these economic choices?

·  What does it means to make rational consumer choices?

Learning Goals/Objectives

·  Describe reasons why some people choose spending over saving.

·  Recognize the reasons why some people have a tendency to be impatient and choose immediate spending over saving for the future.

·  Understand that buyers and sellers voluntarily interact in markets, and market prices are set by the interaction of demand and supply

Overview

·  In this lesson, students will learn how choices that they make to save or spend will have an effect on what money they will have readily available to make purchases at a later date.

Materials

·  Handout #1: Money Habits: Senior Year (Included in Lesson)

·  Handout #2 Impulse Buying Survey (Included in Lesson)

·  Handout # 3 Income and Consumer Choice (Included in Lesson)

·  How To Manage Your Credit Card Spending Habits [3:28]

https://www.youtube.com/watch?v=o8Z7j_3URac

·  How to Create Good Spending Habits | RushCard [0:51]

https://www.youtube.com/watch?v=5MNNSRVwzeg

·  11 Bad Financial Habits: Tips for Monetary Success and Stability [2:09]

https://www.youtube.com/watch?v=0PmkiJyz084

Time

·  50 minutes

Vocabulary

Brand name, comparison shopping, competitive advertising, consumer, disposable income, discretionary income, generic brand, informative advertising, opportunity cost, rational choice, scarcity, spending choices (purchasing)

Activity Sequence

INTRODUCTION/HOOK

Ask students: “Do you spend a lot of money on small, day-to-day items such as coffee, fast food, and candy, or do you prefer to save your money for larger purchases?”Discuss that wise buying decisions will help you get the most out of the products you buy now and will enable you to meet your long-term financial goals. In this section, you'll learn how to spend—or not spend—your income wisely.[5 minutes]

ACTIVITY

1.  Explain the meaning of: Brand name, comparison shopping, competitive advertising, consumer, disposable income, discretionary income, generic brand, informative advertising, opportunity cost, rational choice, scarcity, spending choices (purchasing) [10 minutes]

2.  View the featured videos. [5 minutes]

3.  Discuss with your students reasons why people save and how impulse purchases can lead to debt.

4.  Have students read and complete Handout #1: Money Habits: Senior Year. Have students share their responses to see if their calculations are correct. Explain to the students that Sabrina will have enough money to attend the Grad Bash weekend trip. However, since she used money on wants (indulges), she has limited money to purchase souvenirs. [15 minutes]

5.  In paired groups, have students to complete Handout #2 Impulse Buying Survey. Allow students to discuss why they feel people impulsively buy items that they don’t need. Ask students to share their surveys and discuss potential consequences from impulse buying. [15 minutes]

CLOSURE

Ask students to describe how a budget can help them meet their goals of saving for a special purpose. Discuss as a class. (5 minutes)

OPTIONAL EXTENSION SUGGESTION/HOME LEARNING

Using digital devices, have students complete Handout # 3 Income and Consumer Choice

SOURCES/BIBLIOGRAPHIC INFORMATION THAT CONTRIBUTED TO THIS LESSON:

Money and Financial Literacy

http://libguides.dccc.edu/content.php?pid=539121&sid=4740984

Money Tools for Teachers

https://www.incharge.org/money-101/money-tools-for-teachers/financial-literacy-for-high-school

Saving For Special Purposes, Part 2
https://www.tdbank.com/wowzone/lessons/Gr9-12Lesson7.pdf

Your Role as a Consumer

http://www.apelslice.com/books/0-00-NIMAC/978-0-07-874766-3/ch3.htm

Handout #1: Money Habits: Senior Year

Directions: Each month track Sabrina’s income, spending and savings habits. Decide if Sabrina will save have enough money to attend her senior trip to Disney World.

Sabrina lives at home with her parents. Her parents provide basic needs such as shelter, food, water, and love. However, Sabrina’s parents encourage her to work to earn a wage to pay for her wants as long as she maintains high academic grades. Sabrina began working at Bebe Clothing Store in January. Her take home pay is $80 weekly. Sabrina has a monthly bill. She gives her mother $120 to pay for her cell phone (iPhone 6) service.Sabrina also consumes a frappuccino twice a week as a treat for her work ethic. Each frappuccino costs $5.30.For the month of Febraury, Sabrina went to the movie theater to see the lastest film featuring Dwayne “The Rock” Johnson. She spent $10 for the movie ticket and $20 at the concession stand. In March, the senior class has a bowling night. Sabrina likes to bowl. She brings her bowling shoes but pays to bowl. Sabrina’s night at the bowling alley cost $20. Sabrina’s Grad Bash weekend trip to Disney World is May 7-9. The Grad Bash weekend trip cost is $500; included is room, travel and meals.

INCOME / EXPENSES / SAVING
January

February

March

April

Money Habits: Senior Year

Answer Key

INCOME / EXPENSES / SAVING
January
/ Monthly $320 / Cell phone $120 / $320-$162.40= $157.60
Frappuccino $10.60 weekly x 4 = 42.40
February
/ Monthly $320 / Cell phone $120 / $320-$192.40= $127.6
Movie Theater $30
Frappuccino $10.60 weekly x 4 = 42.40
March
/ Monthly $320 / Cell phone $120 / $320-$182.40= $137.6
Bowling $20
Frappuccino $10.60 weekly x 4 = 42.40
April
/ Monthly $320 / Cell phone $120 / $320-$162.40= $157.60
Frappuccino $10.60 weekly x 4 = 42.40
Total saved = $580

Handout #2 Impulse Buying Survey

Directions: Please answer each question. Be honest in your response.

1.  What is your grade level?

2.  What is your gender?

3.  What is your main source of income?

4.  On average, how many days per week do you shop for items that you want not need?

5.  How often do you make impulsiveor spontaneous purchases?

6.  How important is it to you to consider all other alternatives before purchasing an item?

7.  In as much detail as possible, please explain what influences you to make a purchase (price, mood, style. etc.) and why.

8.  Do you think men or women are considered impulsive buyers?

9.  What items do you think men are likely to buy as an impulsepurchase?

10.  What items do you think women are likely to make as an impulse purchase?

Handout # 3 Income and Consumer Choice

Directions: Using a digital device, allow students to complete this activity.

1.  What is the difference between disposable and discretionary income?

2.  What are four factors that affect a person's earning power?

3.  What is a rational consumer choice?

4.  What are three important buying principles?

5.  How should you decide how much time to spend gathering information before you make a purchase?

6.  What is the goal of competitive advertising?

7.  What is the goal of informative advertising?

8.  Complete the graphic organizer by listing some consumer rights and responsibilities discussed in this chapter.

9.  Who protects consumers' rights?

10.  What changes did the consumerism movement bring about?

Problem Solving

Jolene, a high school student, has $200 that she would like to spend on electronics. She could choose to buy an MP3 player for entertainment or a used computer of her own to help her do her homework. She wants to make a rational choice about her purchase based on opportunity costs

11.  What steps might Jolene take to help her decide which product to buy?

12.  What would be the opportunity cost of choosing to buy an MP3 player?

Imagine you are in Jolene's situation, and conduct research on the steps you listed in question 19. Use a chart like the one below to record any information you find. Finally, write down what your decision would be, and then explain why.

Critical Thinking

13.  Why do some people buy mostly brand-name products while other people buy mostly store-label products?

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