PREVFinLit1 - IG (80p Protected Preview)

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COMMUNICATING OBJECTIVES Students are told their learning goals for the lesson.

This week, the citizens of Classtopia gathered to discuss the crisis. They agreed that the barter system limits their ability to meet their needs and grow as a society. They voted to discontinue it. They agreed that in place of barter, they would identify an item – a commodity – that all Classtopians will use as a medium of exchange for buying and selling goods and services. They decided to use paper clips. The Classtopians set values for the paper clips. Red clips have a fixed value, green are worth twice the value of red. Yellows are worth five reds. The government of Classtopia issues a limited supply of the paper clips which they call Classybucks. They are marked with the Classtopia insignia, which cannot be easily copied – not even by the best classroom artist. Classtopians have begun paying for goods and services with Classybucks. The math-challenged student was able to buy the tutoring he needed with two red Classybucks. The binder paper-deficient student paid one green Classybuck for 100 sheets of paper and now has an A in homework. Much to the relief of his classmates, stinky-feet calculator boy helped a student repair their laptop for six yellow Classybucks, which was enough to pay for a calculator. We are happy to report that order has been restored to Classtopia. Communicating Objectives At the conclusion of this lesson, you will be able to explain the advantages of money over barter, state the functions and characteristics of money, and analyze whether Classybucks are money. You will also be able to tell about careers in the important field of cybersecurity. Presentation of Content In the last lesson, students learned that barter is a direct trade of goods and services without the use of money . Barter is as old as humanity. It began with simple direct trade and evolved into to sophisticated multiparty trades, with a wide range of goods. As you’ll recall, barter has serious limitations. Engage students in a discussion: Can anyone recall the limitations of barter? Answer: It requires finding a trading partner with a mutual need (double coincidence of wants), and equal value of goods or services traded. Barter limits economic growth because it does not allow for saving of value to accumulate purchasing power. Overall, barter is limited and inefficient. The Functions of Money No one is sure of the exact date money was first used. Some experts believe it was about 3000 BC, others earlier. Gradually, however, it became apparent to civilization that trade would be a heck of a lot easier if there were a standardized way to state the price of something , as well as a designated commodity that would be accepted by everyone as payment for goods. The answer was money . SLIDE 3D SLIDE 3F The Big Picture Money can be almost any thing . Money has three essential functions: it is commonly accepted as the medium of exchange; it has a standard numerical measurement; and it is a store of value. There are many characteristics of money. One of the most important characteristics of money and concepts of financial literacy is that money is issued by governments in limited quantities to maintain stability of value. Unstable values impact the purchasing power of money. In the U.S., the institution charged with the responsibility of regulating the money supply is the Federal Reserve Bank. Let’s Practice! The practice activities for this lesson are:  Let's Practice: Classybucks Conundrum. Read the instructions aloud and complete as an in-class activity.  Let's Practice: Detecting Counterfeit Bills (This is a fun whole-class activity, but it requires students to bring a post-1996 $5 bill to class.)  Exploring 21st Century Skills and Issues: Careers in Cybersecurity Ponder and Predict Money can be represented (“expressed”) by just about any thing. Many things have been used as money and, like civilization, money has evolved over time. How? Write your prediction here and in the next lesson, find out if you are right! Assign • Blog, debate, discuss: Have you ever made a particularly bad (or good) barter? How was it negotiated? Tell about it. Non-counterfeitable: Money cannot be easily duplicated. Governments use many means to thwart counterfeiters: special ink and paper, watermarks, microscopic printing, and magnetic strips. Counterfeiting has serious implications for the public. The dumping of counterfeit money into circulation falsely increases the money supply, which impacts value stability. Unstable money values can impact purchasing power .

PRESENTATION OF CONTENT Instructional content. Most lessons are based on a direct instruction model.

THE BIG PICTURE Summarizes key points at the conclusion of the lesson.

LET’S PRACTICE! Each lesson includes an in-class activity which can be completed as whole-class review or in teams. Worksheets are contained in the student workbook. PONDER AND PREDICT Poses questions or problems related to the next lesson to engage students in higher order thinking. ASSIGN References the workbook pages students read to prepare for the next lesson. Suggested blog, debate, discuss topics relate to some aspect of financial literacy, development of personal leadership skills, or expression of opinion on a social issue. Some topics include surveys which may be accessed at www.c21student.com BUSINESS AND FINANCIAL NEWS Daily exposure to the financial news helps students develop their fin lit vocabulary. Bloomberg West has an excellent video archive with interviews and features of particular interest to students. Schedule into instructional time, if possible. LESSON SOURCES Books, papers, articles, and website sources used for lesson preparation are cited at the end of the lesson.

39 PRODUCT PREVIEW The 21stCenTurySTudenT’SGuideTo FinAnCiAL LiTerACy

• To prepare for the next lesson: read Chapter 4 of the student workbook. • Watch business or financial news at least 15 minutes per day: Bloomberg West (www.bloomberg.com/video/bloomberg-west)

The Street Business News (www.thestreet.com) Reuters (www.reuters.com/video/technology)

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