For a great deal on 5 Economics products check out this bundle!
The Economics of Checks, Budgets, Stocks, College, and Savings - 5 Activities!
Think your students know how much money it costs to have the things they have at home? Do they know the difference between saving money in a piggy bank, the power of simple interest, and the power of compound interest? If you teach Economics at the middle level or high school level then this bundle includes activities that open the eyes of your students to the reality of budgeting, and the money they could make by receiving interest on their savings.
The Economics of Balancing a Budget with Monthly Incomes
In this activity students will practice calculating a budget using different monthly incomes with arbitrary percentages for expenses to figure out if someone with a certain monthly income will be at a surplus or shortage at the end of the month.
Students will then take part in a dice rolling activity (you provide the dice) to let fate decide for them what their monthly income will be for this activity. I usually have students come up one at a time and roll the dice under my document camera for the class to see. It hooks them because they want to see who gets the most money. Students will have to then calculate a monthly budget for the amount they rolled for, assess the information they've recorded, and make adjustments to balance their surplus or shortage to zero dollars.
Depending on the needs of your students you could also have your students partner up with someone so they can help each other by double checking their answers with each other and figuring out the calculations together. I've done this before and it has often helped the students who struggle with math. I always tell my students, "If you can push buttons on a calculator you can do this activity."
It usually takes me 2 to 3 days to do this activity with my students if I have them complete the extension activities as well. Look through it and do what is best for you and the students you teach.
There are also extension activities provided if you have time for students to figure out how much they can afford for a house and a car using standard formulas for such purchases. Then they actually have to find a house (or houses) and a vehicle (or vehicles) they can afford on their income. I would usually bring in free automobile sales magazines and free real estate magazines from the grocery store for kids to look through and cut pictures out of.
This is a great introductory activity for students because in my 15+ years teaching middle school I can tell you that most students start asking money questions after doing this activity. They are curious about how much money someone makes at the job they are thinking about doing someday. They start to ask questions about saving for retirement, how the stock market works, and how banks work. I absolutely love this activity and I hope you and your students do too.
I love teaching Economics to my middle school students because it directly relates to their lives. I teach 8th grade, and most of the students I teach save their dollars or coins in some form of a "piggy bank," some have a savings account, and some haven't had anyone show them how to get a savings account at a bank.
In this product, students will begin to understand the power on interest. They will be guided through three different scenarios of a girl named Marcy who is given $100. Your students job will be to figure out how much money Marcy would make by putting that $100 in a piggy bank for 10 years, a savings account earning simple interest for 10 years, and a savings account earning compound interest for 10 years. An answer key is provided for ease of instruction.
An extension activity is also provided in this product where your students are given $500 for their high school graduation. Your students can see what the power of compound interest will be if they don't touch that $500 for 40 years as well as if they add $500 to that account every year for 40 years. An answer key is provided for this activity as well so that your students can check in with you every so often to make sure they are on the right track if you so choose.
Many times after doing this activity students will say that they've asked their parents if they can go to the bank and open a savings account!
Check out my other Economics Bundles:
Here's even MORE Economics products:
Career Research Packet
Famous Inventors and Their Inventions Presentation
Opportunity Cost and Benefit Packet
The Cause and Effect of the Greatest Events or Inventions from 1950-1999 Project
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