Download Financial Fitness for Life - Economic lesson plans, Personal PDF

TitleFinancial Fitness for Life - Economic lesson plans, Personal
LanguageEnglish
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Total Pages108
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Document Text Contents
Page 1

GRADES

6-12

Teaching Opportunity ®

Teaching Opportunity ®

P
A
R
E
N
T


G
U
ID
E

SECOND
EDITION

Mission Statement
The mission of the Council for Economic Education is two-fold: To advocate for better
and greater school-based economic and personal finance education at the K-12 level;
and to educate young people in the United States and around the world, primarily

through well-prepared teachers, so they may become empowered with
economic and financial literacy.

122 East 42nd Street, Suite 2600
New York, NY 10168

212.730.7007
800.338.1192

Fax: 212.730.1793

www.councilforeconed.org
http://fffl.councilforeconed.org

Personal Finance Activities for Parents and Students

Financial Fitness
for Life®

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Teaching Opportunity®

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Page 2

Teaching Opportunity ®

Pamela Whalley
Author, Second Edition

Barbara Flowers
Sheryl Szot Gallaher
John S. Morton
Mark C. Schug

Authors, First Edition

Parent Guide
Grades 6-12

Financial Fitness for Life®

Page 54

A Letter to Parents, Friends, and
Family Members

45FINANCIAL FITNESS FOR LIFE: Parent Guide Grades 6-12
http://fffl.councilforeconed.org/parents ©Council for Economic Education

Your high school student is rapidly moving toward adulthood. As recent studies show, many young
people have difficulty managing their income. This guide is designed to help correct that problem.

Parents, friends, and family members are important teachers of personal finance skills and knowl-
edge. High school students learn personal financial skills by watching you keep your checkbook,
save your money, do your shopping, use your credit card, and manage your household budget. You
can improve that learning by talking with your teen about these topics. This guide can be an impor-
tant resource for you to reinforce vital financial topics that your teen is learning in high school.

This guide provides a series of economic and personal finance activities for friends and families to do
together. In it, you will discover a simple approach to making important decisions. Games and grids
will demonstrate fun ways to achieve financial and career success. You will explore everything from
the pitfalls of credit cards to the challenges of investing in the stock market. Think of it as exercises in
winning at life—a financial fitness book that will help secure an improved financial future.

The guide follows the Financial Fitness for Life lessons your teen is studying in school. In this Parent
Guide there are five themes; each theme includes the following:

1. “Background Questions” asks some important questions and provides answers to these
questions. Use these questions to motivate discussion with your teen.

2. “Worksheet Activities” provides structured activities for you to complete with your teen.

3. “Family Activities” provides other ideas to help enrich your and your students’ understanding
of personal finance and economics.

4. “Literature and Links” includes a list of books and Internet sites to read and explore.

We hope that you will find the activities in this guide to be interesting, fun, and worthwhile.

GRADES

9-12

Page 55

Theme 1: The Economic Way of
Thinking
Background Questions

46 FINANCIAL FITNESS FOR LIFE: Parent Guide Grades 6-12
http://fffl.councilforeconed.org/parents ©Council for Economic Education

Use the economic way of thinking to make more informed decisions.

1. What is opportunity cost?
Opportunity cost is what we give up every time we make a choice. If you choose to watch televi-
sion rather than go for a walk, your opportunity cost of watching television is walking in your
neighborhood. When making a choice from numerous alternatives, the opportunity cost of the
choice is the highest-valued alternative that is forgone as a result of making the choice. Resources
(natural, human and capital) are limited and wants are endless. There is no way to have it all. So,
each choice of how to expend resources is also a choice of what to give up

2. What do high school students know about personal finance and economics?
Not enough. In 2008, the Jump$tart Coalition for Personal Financial Literacy tested 12th graders
on their knowledge of personal finance, and the average score was 48.3 percent. The same test
was given to college students. Their average score was only 62 percent. Adults score no better. A
2003 study by Bankrate.com awarded adults an average score of 67 percent on a test of basic
financially sound behaviors. Economic literacy scores are no better. A widely cited Harris poll of
adults and high school students to determine economic literacy gave the students an average
score of 48 percent. The adults didn't do much better—they scored 57 percent. To increase those
scores, it is vital that we improve economic education and make a sound commitment to personal
financial fitness.

3. Why is studying personal finance and economics important?
These studies are important because they affect every area of life: career choice, how much we
earn, what we buy, how we invest, preparation for raising families, and planning for retirement.
The short answer is that economics and personal finance are reality. And there is no way to es-
cape the reality that our youth will have to make important economic and financial decisions
throughout their lives.

4. Won’t my teen learn about this in school?
Many children learn about managing money at home, from their families. While personal finance is
an increasingly important subject in schools (44 states had personal finance educational require-
ments in 2009, compared to only 21 states that had those requirements in 1998), there is no es-
caping the fact that parents, friends, and family members can make a large difference in students’
attitudes about and understanding of financial topics.

GRADES

9-12

Page 108

GRADES

6-12

Teaching Opportunity ®

Teaching Opportunity ®

P
A
R
E
N
T


G
U
ID
E

SECOND
EDITION

Mission Statement
The mission of the Council for Economic Education is two-fold: To advocate for better
and greater school-based economic and personal finance education at the K-12 level;
and to educate young people in the United States and around the world, primarily

through well-prepared teachers, so they may become empowered with
economic and financial literacy.

122 East 42nd Street, Suite 2600
New York, NY 10168

212.730.7007
800.338.1192

Fax: 212.730.1793

www.councilforeconed.org
http://fffl.councilforeconed.org

Personal Finance Activities for Parents and Students

Financial Fitness
for Life®

P
A
R
E
N
T
G
U
ID
E

F
in

a
n

cia
l F

itn
ess fo

r L
ife

®

Teaching Opportunity®

G
ra
d
e
s 6

-1
2

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