Unit 3, Financial Literacy, 5th grade
5E Lesson Plan Math
Grade Level: 5
Lesson Title: Financial Literacy
Subject Area: Math
Unit Number: 3
Lesson Length: 5 days
Lesson Overview
This unit bundles student expectations that address managing financial resources and records effectively, defining different types of
taxes, and analyzing different methods of payment. According to the Texas Education Agency, mathematical process standards
including application, a problem-solving model, tools and techniques, communication, representations, relationships, and justifications
should be integrated (when applicable) with content knowledge and skills so that students are prepared to use mathematics in
everyday life, society, and the workplace.
During this unit, students define different types of taxes including income tax, sales tax, property tax, and payroll tax. Students take a
closer look at payroll tax when they investigate the differences between gross income and net income. They also compare and contrast
various methods of payment including checks, credit cards, debit cards, and electronic payments. Students develop a system for
keeping financial records with regards to income and expenses and balance a simple budget. The concept of negative values is
abstractly embedded within balancing budgets as students are expected to describe the actions that might be taken if expenses
exceed income. The financial literacy expectations within this unit deepen student knowledge of income, taxes, payments, and
methods to keep track of financial input and output.
Unit Objectives:
Students will…
*Define different types of taxes including income tax, sales tax, property tax, and payroll tax.
*Compare and contrast various methods of payment including checks, credit cards, debit cards, and electronic payments.
*Develop a system for keeping financial records and balancing a simple budget.
Standards addressed:
TEKS:
5.1A Apply mathematics to problems arising in everyday life, society, and the workplace.
5.1B Use problem-solving model that incorporates analyzing given information, formulating a plan or strategy, determining a solution,
justifying the solution, and evaluating the problem-solving process and the reasonableness of the solution.
5.1C Select tools, including real objects, manipulatives, paper and pencil, and technology as appropriate, and techniques, including
mental math, estimation, and number sense as appropriate, to solve problems.
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Unit 3, Financial Literacy, 5th grade
5.1D Communicate mathematical ideas, reasoning, and their implications using multiple representatives, including symbols, diagrams,
graphs, and language as appropriate.
5.1E Create and use representations to organize, record, and communicate mathematical ideas.
5.1F Analyze mathematical relationships to connect and communicate mathematical ideas.
5.1G Display, explain, and justify mathematical ideas and arguments using precise mathematical language in written or oral
communication.
5.10A Define income tax, payroll tax, sales tax, and property tax.
5.10B Explain the difference between gross income and net income.
5.10C Identify the advantages and disadvantages of different methods of payment, including check, credit card, debit card, and
electronic payments.
5.10D Develop a system for keeping and using financial records.
5.10E Describe actions that might be taken to balance a budget when expenses exceed income.
5.10F Balance a simple budget.
ELPS:
ELPS.c.1Ause prior knowledge and experiences to understand meanings in English
ELPS.c.2Dmonitor understanding of spoken language during classroom instruction and interactions and seek clarification as
needed
ELPS.c.3Cspeak using a variety of grammatical structures, sentence lengths, sentence types, and connecting words with
increasing accuracy and ease as more English is acquired
ELPS.c.3Dspeak using grade-level content area vocabulary in context to internalize new English words and build academic
language proficiency
ELPS.c.4Hread silently with increasing ease and comprehension for longer periods
ELPS.c.5B write using newly acquired basic vocabulary and content-based grade-level vocabulary
ELPS.c.5Fwrite using a variety of grade-appropriate sentence lengths, patterns, and connecting words to combine phrases,
clauses, and sentences in increasingly accurate ways as more English is acquired
ELPS.c.5Gnarrate, describe, and explain with increasing specificity and detail to fulfill content area writing needs as more
English is acquired.
Misconceptions:
Some students may think
* all taxes are the same rather than knowing that the amount of tax paid varies in different situations.
* there is only one type of tax rather than knowing there are many different types of taxes.
* all goods and services are taxed rather than understanding that only some goods and services are taxed.
* there is only one type of income rather than understanding that there is gross income and net income.
* the only reason to keep track of a budget is to know how much money is available to spend, rather than looking at it as a way to help
plan for future decisions.
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Unit 3, Financial Literacy, 5th grade
* all payment methods are equal rather than noting the advantages and disadvantages of each type of payment method.
Vocabulary:
available balance - the amount available in an account for a person, business, or organization to spend.
balance- to reconcile your budget or account statement with your check register to make sure the records match and are accurate.
budget- monthly or yearly spending and savings plan for an individual, family, business or organization
check- written document telling the financial institution to pay a specific amount of money from your account to a specific person or
organization
credit card- card that can be used to borrow money from financial institutions, stores, or other businesses in order to buy products and
services on credit
debit card- card that is linked to your checking account so that a person can withdraw money, make deposits, or make purchases at a
store
electronic payment (e-payment)- payment using security features on the internet
expense- payment for goods and services
financial records- formal record of the transactions made by a person, business, or other organization
gross income- total amount of personal income prior to taxes and deductions
income- money earned or received
income tax- money paid on the earned wages of an individual or business for the federal and/or state governments as required by law
net income- income that remains after taxes and other deductions are taken from an individual's gross income
payroll tax- amount of money that a company withholds from its employees for the federal government as required by law
property tax- amount of money collected on the value of a property for the local government as required by law
register- a small table to track deposits added to account, expenses withdrawn from account, and current available balance
sales tax- the amount of money collected by a store (retailer), in addition to a good or service that was purchased, for the local
government as required by law
transaction- a specific time or instance when money changes hands
List of Materials:
*math journal (Days 1-5)
*color counters (Day 1)
*manila/construction paper (Day 1)
*Monopoly (the board game) (Day 4)
*internet access (if available) (Days 1-5)
*handouts provided
INSTRUCTIONAL SEQUENCE
Phase One, Two: ENGAGE, EXPLORE
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Unit 3, Financial Literacy, 5th grade
Day 1 Activity:
(Materials= math journal, color counters, manila paper, internet access, "What Kind of Tax Is It? Game" powerpoint)
Show students a PBS video on entrepreneurship to introduce them to the concepts of financial literacy.
Make a foldable.
Show a Schoolhouse Rock Video.
Play "What Kind of Tax is It?" game.
What’s the teacher doing?
Show students the PBS video on entrepreneurship at the following link:
What are
the
students
doing?
https://www.youtube.com/watch?v=CRClSM9D7Nc
Use guiding questions to assess students' prior knowledge and introduce content.
"What is meant by the phrase 'financial literacy'?" Financial literacy is the knowledge and skills needed to manage
one's financial resources successfully for a lifetime.
"What did you think of the students in the video who owned their own businesses?" Answers may vary.
Bolded
dialogue =
teacher.
Italic
dialogue=
student
example.
"In order to manage money successfully, there are things you must know. Today we will begin talking about
some of those things. I think you will be surprised by how much you do already know about financial literacy."
"How many of you have ever made a purchase with your own money before?" (show of hands). If you buy a toy
at the store, will it cost exactly what the price tag says? Why or why not?" Not always. Most of the time you will
have to pay tax on the toy.
"What is tax?" the amount of money collected by a store (retailer), in addition to a good or service that was purchased,
for the local government as required by law.
"Why do we have to pay taxes on some things?" The government uses the money they get in taxes to help pay for
the way the town, state, and country operate.
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Unit 3, Financial Literacy, 5th grade
"What are the different kinds of taxes?" Sales tax, income tax, payroll tax, and property tax.
Show students the video at the following link:
https://www.youtube.com/watch?v=6Q3NPgHZzDo
It is a School House Rock video specifically about the different kinds of taxes and their functions.
Next, see the foldable image below on the next page.
Students will create a foldable to help remind them about the various types of taxes and their purposes.
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Unit 3, Financial Literacy, 5th grade
Wholegroup, have students create a foldable to glue in to their math journals (see picture above). They can reference it
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Unit 3, Financial Literacy, 5th grade
in the future to help remind them of the different kinds of tax.
Next, have the class play the "What Kind of Tax Is It?" Game. Students can play on teams, or individually, your choice.
The game's purpose is to help students identify the different kinds of taxes through various scenarios from real life.
Show students the following scenarios on a whiteboard, smartboard, or projector and read the scenarios aloud to them.
You may use the attached powerpoint "What Kind of Tax Is It? Game". After each scenario is read, students then
indicate which type of tax was represented by that scenario.
Give students /student groups a color counter and have them utilize their foldable they just made by placing a color
counter over the tax definition that matches the scenario just read aloud.
Teacher can walk around the room and check for understanding to determine who needs a reteach.
"What Kind of Tax Is It?" Game
Scenario #1:
"I am checking out at the grocery store. My purchases total $34.71, including tax. What kind of tax is this?"
(sales tax)
Scenario #2:
"I make $14 an hour. This week I worked 12 hours. I made $168, but I only get to keep $141 because of what kind
of tax?" (payroll tax)
Scenario #3:
"I ate at Chick-Fil-A and my meal totaled $3.35 plus tax. What kind of tax is this?" (sales tax)
Scenario #4:
"These 100 acres have been in my family for twenty seven years. Every single year, I have to pay taxes on it.
What kind of tax is this?" (property)
Scenario #5:
"My family and I built on to our house this year. We added a covered porch. Now, our taxes have gone up. What
kind of ax is this?" (property)
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Unit 3, Financial Literacy, 5th grade
Scenario #6:
"Every month when I get paid, taxes have already been taken out for the government. What kind of taxes have
been taken out of my paycheck?" (payroll tax)
Scenario #7:
"I went to the ice cream store and bought a sundae for $2.50. When the cashier rang me up, he said I owed
$2.70. What kind of tax did this include?" (sales)
Scenario #8:
"Every year in April I have to send off my taxes to the government. What kind of taxes am I sending?" (income)
Scenario #9:
"This year I got back $2,000 from the government. I'm going to put it in savings. What kind of taxes am I talking
about?" (income). You can go into a brief explanation of why someone would get a refund from the government if there
is time.
For added variety, you can have students come up with their own scenarios and quiz each other.
Phase Two, Three: EXPLORE, EXPLAIN
Day 2 Activity:
(Materials= journals, "Budget Example", "Budget Practice")
Students write a journal entry.
Analyze "Budget Example".
Answer questions using sample budgets.
What’s the teacher doing?
What are the students doing?
As students come in to class, tell them that this is quiet time, and have them write a
journal entry (15-20 minutes or so) comparing and contrasting 2 of the 4 types of
taxes discussed yesterday. They can use their foldables (now in their math journals)
to aid them in the process. Then provide a few minutes for share time with
partners/the class.
Bolded dialogue = teacher.
Italic dialogue= student example.
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Unit 3, Financial Literacy, 5th grade
As students write, monitor their entries to ensure understanding.
Use guiding questions to direct students.
Ask:
"What is income?" the amount of money someone earns or receives
"How/why do people get income?" They receive an income from working a job. It is
the same as their salary.
"What is the difference between gross income and net income?" Gross income is
the total amount of income someone makes prior to taxes and other deductions. Net
income is the amount of income that remains after taxes and deductions are taken
out.
"What does the government do with the taxes it takes from people?" The
government uses tax money to pay for the services it offers its citizens.
"What is a budget?" A system used for keeping track of one's income and how it is
spent.
Display the "Budget Example" for students to see. Discuss it with them.
Ask:
"What do the descriptions represent?" Each transaction that is made.
"What does the "income" column mean?" Money that is earned.
"What does the "expense" column mean?" Money that is spent, or subtracted from
the available balance.
"Why is the "available balance" at the bottom of the budget lower than the
"available balance" at the top?" Because Muriel has spent more money than she
has added to the balance.
Ask:
"Why would keeping a budget be a good thing?" It can help a person keep track of
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Unit 3, Financial Literacy, 5th grade
his finances; it helps someone to know how much money they have left to spend; it
can help someone determine her priorities for spending, and how much money is
being wasted, etc...
"What would happen if someone goes over their budget?" They would not have
enough money to cover their expenses; they would have a negative balance in their
account, etc.
"What could a person do if they know they are going to be over their budget?"
He could get an extra job to make more money; he could eliminate some of his
expenses that are not necessary; he could borrow money from a lender to cover extra
costs.
Have students complete "Budget Practice" individually, or with a partner.
Phase Two, Three: EXPLORE, EXPLAIN
Day 3 Activity:
(Materials= journals, internet access)
Journaling.
Think, Pair, Share.
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Unit 3, Financial Literacy, 5th grade
What’s the teacher doing?
What are the students doing?
Questions:
Journaling, sharing with team/partners.
Interacting with online environment at rich kid,
smart kid website.
Use guiding questions to direct students:
"What are some different ways you can buy things?" Cash, writing checks,
credit cards, debit cards, electronic payments (e-payments).
"What is the best way to buy something?" Answers may vary.
In pairs or small groups, have students brainstorm the different ways to purchase
items or services (can be done in their math journals). Have students write both
advantages and disadvantages of each type of transaction. After everyone has had
time to brainstorm, use a large piece of butcher paper to write down every group's
ideas as they share with the class. Depending on students' prior knowledge and life
experience, you might need to provide more guidance/scaffolding as the teacher.
Make sure that all the different types of transactions have been covered (cash,
checks, credit cards, debit cards, e-payments). Have students write down anything
they left out, or want to elaborate on, in their journals.
Present the following scenario to the class:
1)
"Julia wants to buy a new washing machine. The washing machine costs
$845.95. She can buy the washing machine at her local department store, in
town. She has enough money in her account to cover the expense, but she
does not have the cash. Which type of transaction should she use to buy the
washing machine, and why? Explain the reason for your choice." Give
students a few minutes to write their answer in their journals. Then have them
share with the class. Walk around the room as they are writing to check for
understanding.
2)
Ryan wants to purchase the new gaming device he saw on the internet. It
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Unit 3, Financial Literacy, 5th grade
costs $425.15. If he buys the game device with the money he has in his
account, he will not have enough money to pay his monthly bills. Which
transaction type should he use to purchase the gaming device and why? This
time, have students Think, Pair, Share their ideas about the scenario. Students
think for a few moments about the scenario and then share with their partner(s)
about their ideas. They can agree or disagree with each other, as long as they can
support their ideas. Then small groups can share with the class. Walk around the
room to listen to their ideas to ensure understanding.
3)
Have students write in their journals about a time/situation when using a credit card
may be a wise choice of transaction. Remind them to support their ideas, then have
share time with the class.
Have students go to the following website (if they have internet access), or project it
onto your whiteboard/smartboard:
http://www.richkidsmartkid.com/index.html
It has financial literacy games and activities for students to explore.
Phase Two, Three: EXPLORE, ELABORATE
Day 4 Activity:
Students will play a game to help them apply their knowledge of financial literacy.
(Materials= "Budget Worksheet", "Transaction Spinner", Monopoly or Life)
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Unit 3, Financial Literacy, 5th grade
What’s the teacher doing?
What are the students doing?
Each student will be given a fictitious bank account at "Mrs. Fuller's Bank of
Onalaska" (for example). To make the activity more fun, you can write down
various amounts from $75.00 to $235.00 on scraps of paper and have your
students draw his/her scrap from a hat (for example) to determine what
his/her starting balance will be.
Play Financial Literacy Game.
Students will make "purchases" from you, the teacher, and will be
responsible for recording their own transactions on a budget worksheet.
Students can use personal checks (see handouts) to make their
purchases. Each student has a finite amount of checks (you can determine
the amount, maybe 3-4 checks per student), as well as a debit card (see
handouts). They must decide which transaction type to use in each situation.
Use the transaction spinner to determine what purchases students will
make. Remind them to record their transactions. The object/goal is to have a
positive balance remaining at the end of the game. If you run out of spins,
you can have students come up with additional transaction ideas. The last
student left with a remaining balance can be declared the winner. Teacher
can monitor to ensure students are following directions.
After the game is over, give students some time to journal about their
experiences. What have they learned? How is the game different from
real life?
If there is still time, students can play the game of Monopoly in small
groups. The Game of Life is also another plausible option.
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Unit 3, Financial Literacy, 5th grade
Phase 5: EVALUATE students' understanding of the concept.
Day 5 Activity:
Students work on the Performance Assessment from the IFD.
(Materials= internet access)
Analyze the problem situation(s) described below. Organize and record your work for each of the following tasks. Using
precise math language, justify and explain each solution process.
1) Mark has opened a snow cone stand on property he recently purchased. The following info needs to be recorded in his financial
records for the business:
*starting balance $100
*purchased 2 ice blocks for $23.50 (total)
*purchased 12 syrups for $3.00 each
*purchased 1 package of 500 cups for $5.25
*sold 148 snow cones for $1.25 each
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Unit 3, Financial Literacy, 5th grade
a)Create a plan that will help Mark keep track of how much money he has earned and spent in his snow cone business.
b) Using the plan, calculate Mark's available balance for his business considering his starting balance, income, and expenses.
c) Describe what actions Mark may need to take if he realizes that he must purchase a new shaving machine for $230.
2) There are several ways Mark's customers might pay for their snow cones.
a) Describe 3 ways Mark's customers might pay for their snow cone.
b) Compare and contrast the advantages and disadvantages of each type of payment.
3) After starting his business, Mark decides to make an appointment with a financial accountant to discuss his finances and taxes that
he may have to pay.
a) Write a short definition for each of the following terms and predict if Mark will have to pay any of these taxes for his business:
* income tax
* payroll tax
*sales tax
*property tax
4) Mark decides that he needs extra help on the weekends and hires a part-time employee. Mark agrees to pay the employee $7.00
per hour. After working 10 hours, Mark writes the employee a paycheck for $58.31.
a) Explain why the amount Mark wrote the paycheck for is not the same as the wages earned by the employee. Use the terms gross
income and net income in your explanation.
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Unit 3, Financial Literacy, 5th grade
What’s the teacher doing?
What are the students doing?
Monitor students as they work on the performance
assessment to determine if any re-teaching is necessary prior
to the unit assessments.
Display understanding of the topics and skills taught in this unit by
completing the performance indicator successfully.
If there is extra time, have students go to the following website
individually (if they have individual access to a computer), or
pull the website up on your smartboard/projector to allow the
students to explore the games, videos, and activities about
financial literacy:
http://www.pbs.org/your-life-your-money/index.php
Extra website resources for exploring financial literacy:
www.mymoney.gov
(website with tools and quizzes that help you understand
different aspects of financial literacy)
http://www.richkidsmartkid.com/index.html
(website with mini-games that help foster understanding of
financial literacy for children)
http://www.bankingonourfuture.org/
(website where students can create free accounts and then be
taught mini-lessons on financial literacy)
HANDOUT titles (in order of their use):
1. Foldable Example
2. "What Kind of Tax Is It?" Game powerpoint
3. Budget Example
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Unit 3, Financial Literacy, 5th grade
4. Budget Practice
5. Budget Worksheet
6. Transaction Spinner
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