Personal
Finance
th
5 Grade
Social Studies
Background
Personal Finance addresses ways individuals obtain, budget, save, and spend income
over a set period of time. Supplementary terms like assets, expenses, checking and savings
accounts, credit and debit cards, credit, and liabilities may all have a role when reviewing
your finances. One way to tackle personal financing is to create your own individualized
budget plan to monitor you spending. When creating a plan there are five step that help the
process. The first is assessment; assessment is looking over previous income and spending to
gain a better understand of where you are at. Second you have to set a goal for your self; what
are you trying to reach? It may be a specific number ($10,000) or it may be a psychological
attribute (I want to be able to be comfortable). Along with your goal, you may want to put a
timeline too. This will may it easy to assess and monitor your goal. Whatever your plan is you
must make sure that it is both realistic and attainable. Next you must create a plan; your goal
is something you want to achieve but the plan is how you are going to achieve it. You must
ask yourself, “in order to reach my goal how am I going to do?” Then you must execute this
decision. After this has been done and a sufficient amount of time has past it is time to
monitor and possibly reassess your plan.
Although, personal finance deals mainly with the individuals, it is important to use
resources when they are available. Banks are an example of a resource that is usually free.
When choosing a bank, you may want to consider interest rates and types of accounts they
offer. Generally, it is helpful to create a savings account when you are young and continue
building that account. Usually youth savings accounts are typically free and can gain interest
over time. I find it especially important for young children to see parent depositing money
into their accounts so that they understand that this is a way to accumulate more money.
Checking accounts are crucial now a days to start when you are a teenager. Not only is this a
place for you to put money when you start your first job but it allows people to also access the
money relatively easy with a check or card. Credit cards are becoming more and more of a
necessity to have when you are a teen so that you can build credit young and continue to build
it. Although credit cards are simple to use and can establish credit it is important to note that
is also very easy to spend more then you have. This is the same for a check, it is important to
keep an eye on how much money you have so you do not become overdrawn. When you are
overdrawn you not only owe how much you spent but also another fee on top of that; fees
depend on the bank. In many cases fees are near twenty to thirty dollars. Banks also offer
loans. If you do not have anyone to borrow from, a bank can provide the money quick. Keep
in mind, you pay this back usually in a monthly payment but the bank will tack on some
interest. In general, personal finance can be easy if you employ the right tactics and use
resources to aid you with the process.
Key Terms
Saving Spending Investing Borrowing Debt
Budgeting Assets Expenses Wants Needs
Accounts Overdrawn Financing Assessment Cards
Work Cited:
"Personal Finance and Debt Management." Student Financial Services. Georgia State
University, n.d. Web. 15 Sept. 2016.
<http://sfs.gsu.edu/the-financial-aid-process/financial-resources/financial-literacy/
personal-finance-and-debt-management/>.
Unit Focus and Rationale
Transfer Goal:
o Students will be able to use their learning to make conscious decisions about ways
to utilize income. After learning the ways to use income students should be able
to apply this to their everyday lives using a budget plan.
Money is something that everyone has come into contact whether that
experience be positive or negative. This is why it is important to start the
building blocks of personal finance at a young age. This way students are
aware of the different ways to spend their money when they get it. Also,
they will understand how to employ a budget plan if their situation
requires it.
Enduring Understandings:
o Students will analyze the different means of using income.
Most students know how to spend and save money but do they know how
to do this effectively. They may have seen or experienced one of those two
forms of using income but they most likely do not know how or what the
other definition. It is important to show them the other ways to use the
money that they have or will have in the future. Students will be exposed
to the six key terms (spending, saving, budgeting, investing,
borrowing(loan), and debt). It is also important for students to see that for
each term they all have advantages and disadvantages.
o Students will understand that making a budget plan can be very helpful.
Students will speculate that making a budget plan can indeed be
accommodating when trying to stay out of debt. This will also help them
determine the difference between a want and a need. This is important for
students to know because it can help identify money not well spent or help
them reach a goal they set for themselves at the same time you are paying
other bills.
o Students will understand how some people are not able to afford things because of
their income situation.
While most of the students in my practicum site come from homes that
have a relatively steady and moderate income. I want to convey that not
every is as well off as they are. Some people are not able to afford all of
the wants they have and some are not even able to afford the needs. If
there are any financial inequalities within my classroom I want to
celebrate them but also not embarrass the student, so I will consult with
the students beforehand. This is important for all students because even if
you do not get very much money in a week or none at all, this will give
you an idea of how to save the money you do get or earn it. This is
important for students to understand because they will have a greater
appreciation of the resources they do have and will effectively use this
money so that they can afford the wants and needs in later life.
Essential Questions:
o Students will contemplate how this knowledge about personal financing and
budgeting can help them when they do not have any expenses.
After this unit, student will hopefully recognize that making a budget plan
can go further then only when you have expenses. They should realize that
even if you are trying to save up for an object that your guardian won’t
buy for you. That you can use a budget plan to keep track of the money
you spend on other things and how that money could be saved to afford
the new object.
o Students may also ponder what would happen if they would run out of money
completely.
After explaining debt to the students I hope they gain a better
understanding of what could happen if they were to have no more money.
This concept is important for students to understand because many of
them have never experienced anything like that and may not know that
many or all those things that you have or bought could be taken away or
you could be kicked out, in the case of a shelter. Since not many students
in the classroom have not dealt with a situation close to this, when I
explain debt it will be important to fully explain all issues that are
associated with going in debt.
