The recent government shutdown brought to light how many Americans don't have emergency savings. According to a recent report from the Federal Reserve 40% of adults say they couldn’t produce $400 in an emergency without sliding into debt or selling something. In addition, according to a 2017 report by employment website CareerBuilder, almost 80 percent of Americans say they are living paycheck-to-paycheck. Consider the worker in this video below who said she had $1.06 cents left in her bank account.
Now, check out the article that appeared in the Tampa Bay Times on January 2, 2019. Why are so many people living paycheck-to-paycheck? Start a discussion in the classroom about saving. Before your students go out on their own, have them consider some ways they can plan to save for the future. For example, on college campuses the Starbucks line is always long. Have students calculate how much money students spend in a year on fancy beverages if they spend an average of three dollars a day. Have students brainstorm other ideas they could save money. You might also want to share some of the interactive financial literacy interactive, including budget generators, like PlaySpent.org that are highlighted on Next Gen Personal Finance.
Financial Literacy Standards
SS.8.FL.3.7.Discuss the different reasons that people save money, including large purchases (such as higher education, autos, and homes), retirement, and unexpected events. Discuss how peoples tastes and preferences influence their choice of how much to save and for what to save. SS.912.FL.3.1Discuss the reasons why some people have a tendency to be impatient and choose immediate spending over saving for the future. ......... When people buy stock, they are purchasing ownership shares in the business. If the business reflects a profit, stockholders expect to receive an increase in their investment. If the business is not profitable, stockholders can lose their money. In addition, buyers and sellers determine the prices in the financial market. Prices of stocks rise and fall based on supply and demand. If more people want to sell a stock than buy a stock, the supply goes up and the price falls. If more people want to buy a stock than sell, the demand is up so the price goes up. If you have been paying attention to financial news, you might have heard about stocks going up and down. Check out the Tampa Bay Times article below. Based on the information in the text, how do financial markets adjust to new financial news? How are financial markets affected by changes in domestic and international economic conditions and policies?
Financial Literacy Standards
SS.8.FL.5.4 Explain that the price of a financial asset is determined by the interaction of buyers and sellers in a financial market. SS.8.FL.5.3 Discuss that when people buy corporate stock, they are purchasing ownership shares in a business that if the business is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stocks value, that the increase in the value of an asset (like a stock) is called a capital gain, and if the business is not profitable, investors could lose the money they have invested. SS.912.FL.5.3 Discuss that buyers and sellers in financial markets determine prices of financial assets and therefore influence the rates of return on those assets. SS.912.FL.5.7 Describe how financial markets adjust to new financial news and that prices in those markets reflect what is known about those financial assets. SS.912.FL.5.8 Discuss ways that the prices of financial assets are affected by interest rates and explain that the prices of financial assets are also affected by changes in domestic and international economic conditions, monetary policy, and fiscal policy. ...... An employee pulls a pallet jack carrying plastic crates containing online orders at the Amazon.com fulfillment center in Robbinsville, N.J., on June 7, 2018. [Bloomberg photo by Bess Adler] Recently, the Tampa Bay Times featured an article on how online shopping is on the rise among young children. According to the article (available below) children are searching for ideas on social media, which translate into goods they want to buy. How are the brands "courting" the kids who are shopping online. Influencers are using social media platforms to sell goods. How has social media influenced you to buy a good? Conduct some research on social media influencers. What do you think?
Financial Literacy Standards SS.8.FL.2.2 Analyze a sources incentives in providing information about a good or service, and how a consumer can better assess the quality and usefulness of the information. SS.912.FL.2.1 Compare consumer decisions as they are influenced by the price of a good or service, the price of alternatives, and the consumers income as well as his or her preferences. ...... ...... You may have heard of bitcoin, which is a form of cryptocurrency. What is cryptocurrency? It is a form of peer to peer digital or virtual money (currency) that is hard to trace and can be used anonymously (crypto) because it does not have to go through the central banking system or a financial institution. You may have also heard about ways in which bitcoin or other cryptocurrency has been used. Did you know that some people have bought homes with cryptocurrency? Check out the article from the Tampa Bay Times below. What do you think?
Then, consider the following questions. What are some payment methods people might use to buy a house? Now conduct some online research about bitcoin and other cryptocurrencies. As a buyer, what are the costs and benefits of trying to use bitcoin to buy a house? As a seller, what are the costs and benefits of accepting bitcoin as a method of payment? SS.8.FL.2.3 Describe the variety of payment methods people can use in order to buy goods and services.
SS.8.FL.2.4 Examine choosing a payment method, by weighing the costs and benefits of the different payment options. SS.912.FL.2.5 Discuss ways people incur costs and realize benefits when searching for information related to their purchases of goods and services and describe how the amount of information people should gather depends on the benefits and costs of the information. ......
During the holidays, we don't want to be like the Grinch, he did provide some words of wisdom in the recent movie remake: "Resist the present" and "Resist the cookie" were two of the phrases he used in this clip. While we don't need to resist all spending and eating during the holidays, we should consider ways to resist over-indulging. For example, consider Benjamin Franklin's famous quote, "A penny saved is a penny earned." Have students read through the Tampa Bay Times NIE supplement All About the Benjamins so they can discover some ways to save over the holidays. Then have them create a social media post where they can create a saying or a meme about how to "resist" overindulging during the holidays.
Have a great holiday season and we'll see you in the New Year!
Check out the news video below from theTampa Bay Times Newspaper in Education program. Then, plan your own holiday dinner. What would you like to eat? Search through the Tampa Bay Times Circulars to find items and create a budget. How much did your dinner cost? How can you save money? How can you make more healthy choices?
SS.8.FL.2.1 Explain why when deciding what to buy, consumers may choose to gather information from a variety of sources. Describe how the quality and usefulness of information provided by sources can vary greatly from source to source. Explain that, while many sources provide valuable information, other sources provide information that is deliberately misleading.
SS.912.FL.2.2 Analyze situations in which when people consume goods and services, their consumption can have positive and negative effects on others. Consider the Tampa Bay Times article below. The title says: Amazon just upped the ante in the race for free holiday shipping. What does "upped the ante" mean? Read the article and answer some of these critical thinking questions: What did Amazon do? When does this go into effect? Where is this happening? Who will it impact? Why do you think they started free shipping for the holidays? How can this impact other retailers, both online and in-store? Now create some What If? So What? or What Next? questions of your own.
SS.4.FL.2.6 Predict how people’s spending choices are influenced by prices as well as many other factors, including advertising, the spending choices of others, and peer pressure.
SS.8.FL.2.2 Analyze a source’s incentives in providing information about a good or service, and how a consumer can better assess the quality and usefulness of the information. SS.912.FL.2.1 Compare consumer decisions as they are influenced by the price of a good or service, the price of alternatives, and the consumer's income as well as his or her preferences. Consider the Consumer Confidence graph above and the Tampa Bay Times article below. On the graph, there was a slight drop in August. Now read the article below. What factors might cause consumer confidence to drop? What things might cause consumers to spend less? SS.8.FL.2.5 Discuss the fact that people may revise their budget based on unplanned expenses and changes in income. SS.912.FL.2.1 Compare consumer decisions as they are influenced by the price of a good or service, the price of alternatives, and the consumers income as well as his or her preferences. ...... ......
Cooking, Chefs and Charity, oh my! Why do you think the World Central Kitchen decided to help people following Hurricane Michael? Challenge your students to come up with a social entrepreneurship idea as to how they can do something to help hurricane victims. What is a problem hurricane victims may have? What is a good or service you could provide? SS.912.FL.2.6: Explain that people may choose to donate money to charitable organizations and other not-for-profits because they gain satisfaction from donating.
After reading the Tampa Bay Times article below, would you recommend that friends or family members invest in Uber? Why or why not? Conduct more research on Uber. What news have you found? Check out the recent article in the Tampa Bay Times. How can this financial news impact prices of stock? SS.8.FL.5.3 Discuss that when people buy corporate stock, they are purchasing ownership shares in a business that if the business is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stocks value, that the increase in the value of an asset (like a stock) is called a capital gain, and if the business is not profitable, investors could lose the money they have invested. SS.912.FL.5.7 Describe how financial markets adjust to new financial news and that prices in those markets reflect what is known about those financial assets. ...... ...... ...... ......
Check out this NIE news video of the week. Before you view the video, consider what types of work tasks should robots do? What types of work tasks should humans do? Then view the video. What did the video say about the rise of robots? What are the possible consequences of robots doing more tasks? What types of decisions do people need to make when their jobs are taken by robots? How can you better prepare for your future?
Florida Financial Literacy Standards SS.8.FL.1.2: Identify the many decisions people must make over a lifetime about their education, jobs, and careers that affect their incomes and job opportunities.SS.912.FL.1.5: Discuss reasons why changes in economic conditions or the labor market can cause changes in a worker's income or may cause unemployment?
Check out the image above? Who is Uber? What is a data breach? What do you think happened? According to the Tampa Bay Times article attached below, the Federal Trade Commission (FTC) ruled Uber to pay $148 million to settle a nationwide investigation into a 2016 data breach where a hacker accessed information belonging to 57 million riders and drivers. What do you think about this? How did the data breach make users vulnerable to identity theft? How did the FTC provide remedies or assistance to the victims of the data breach? How does this impact your decisions to want to use Uber?
For additional information, you can access the Federal Trade Commission FTC article about the original settlement and expanded settlement. The FTC also provides some information for consumers to use in case of a data breach. For more information, visit IdentityTheft.gov/databreach. Read the information on the websites and watch the video below. Then prepare your own presentation to give to individuals who were impacted. What advice would you give to them?
Florida Financial Literacy Standards:
SS.8.FL.6.7 Evaluate social networking sites and other online activity from the perspective of making individuals vulnerable to harm caused by identity theft or misuse of their personal information. SS.912.FL.6.10 Compare federal and state regulations that provide some remedies and assistance for victims of identity theft. ......
Did you know that scammers have collected over 95 million dollars in illegal fees from student loan debt relief scams? To avoid starring in the "game of loans" read the Federal Trade Commission's warnings on how not to be scammed.
As noted in the Tampa Bay Times NIE Video of the Week (embedded below) most of the students are cheated by for-profit predatory colleges, many of which are not accredited. Before you make a decision to attend higher education, conduct research on the institution, especially if it is a for-profit school. After watching the video and reading the information at the links, have students discuss strategies for making sure they make wise decisions about choosing reputable institutions of higher education and don't become victims of fraud.
SS.8.FL.1.2 Identify the many decisions people must make over a lifetime about their education, jobs, and careers that affect their incomes and job opportunities.
SS.912.FL.1.2 Explain that people vary in their willingness to obtain more education or training because these decisions involve incurring immediate costs to obtain possible future benefits. Describe how discounting the future benefits of education and training may lead some people to pass up potentially high rates of return that more education and training may offer. ...... ...... The first question is: Would you take this ride before lunch? The second question is: Would you invest in Busch Garden stock before the launch of the new roller coaster? Read the article from the Tampa Bay Times below to discover the details about the plans for Tigris. Then consider how this news could influence the prices of Busch Gardens' stock. How could this news impact the price of Busch Garden stock? Would you buy now or would you wait until the potentially rises after the coaster is functioning?
Florida Financial Literacy Standards:
SS.8.FL.5.3..Discuss that when people buy corporate stock, they are purchasing ownership shares in a business that if the business is profitable, they will expect to receive income in the form of dividends and/or from the increase in the stock’s value, that the increase in the value of an asset (like a stock) is called a capital gain, and if the business is not profitable, investors could lose the money they have invested. SS.912.FL.5.3.Describe how financial markets adjust to new financial news and that prices in those markets reflect what is known about those financial assets. Consider the quote above that Paul Tash, chairman and CEO of the Tampa Bay Times made when speaking at Indiana University graduation. Why is fake news like propaganda? How does fake news impact readers? Did you know that fake news isn't new? Fake news even impacted George Washington! Read the article below to discover how fake news spread in George Washington's time. What were the source's incentives in sharing fake news? How can a consumer be influenced by fake news about products or events? Consider how consumers might be influenced by fake news about the price of a good?
Financial Literacy Standards
SS.8.FL.2.2 Analyze a sources incentives in providing information about a good or service, and how a consumer can better assess the quality and usefulness of the information. SS.912.FL.2.4 Describe ways that consumers may be influenced by how the price of a good is expressed. ......
In the article above, the Tampa Bay Times reported on a recent study, which noted that fake news had a wide reach but little impact. What does this mean? Read the article and consider the financial impact of someone deciding to share fake news. What are the costs and benefits of sharing fake news? Did you know that students have been denied college entrance due to things they shared on social media? How could the decision impact job opportunities?
Standards SS.8.FL.1.2 Identify the many decisions people must make over a lifetime about their education, jobs, and careers that affect their incomes and job opportunities. SS.912.FL.1.3Evaluate ways people can make more informed education, job, or career decisions by evaluating the benefits and costs of different choices. ...... ...... Welcome back to Financial Fridays for the new school year! Here is our first posting. Before you read the article, consider the image. What evidence do you see? What do you think happened and what inferences can you make based on evidence? What questions do you have?
Newseum is a Washington D.C. attraction "dedicated to the importance of a free press and the first amendment." They had been selling "You are very fake news" Tshirts in their gift shop and recently made the decision to stop selling the shirts. Use the .pdf article from the Tampa Bay Times: Should They Sell The Shirts to create an argument. What do you think of the decision? How can this impact consumers? What kind of article is this? Using "lateral literacy" search across the Internet to find other evidence-based articles. Now what do you think?
Related Financial Literacy Standards SS.8.FL.2.1..Explain why when deciding what to buy, consumers may choose to gather information from a variety of sources. Describe how the quality and usefulness of information provided by sources can vary greatly from source to source. Explain that, while many sources provide valuable information, other sources provide information that is deliberately misleading. SS.912.FL.2.2...Analyze situations in which when people consume goods and services, their consumption can have positive and negative effects on others. .......... Thanks for using our resources! We hope our materials are helping you toward a financial freedom this summer. For some financially fit summer reading, check out some of the NIE Financial Literacy resources. Also, if you are a Florida Educator, you can order free class sets of Financial Freedom, student workbooks from the Florida Council on Economic Education. We will continue the blog at the beginning of the school year.
Check out these two cuties. Which pet would you get? Read some of the Tampa Bay Times feature articles on pets and search their ads for available pets. Before you make your decision, conduct some research using the following sites: Research for comparing dogs: Research for comparing cats: Then, use the decision-making matrix attached. What are the four most important criteria for your decision? For example, consider size, amount of care, cost, and other attributes. Then, choose your top four and compare them. What pet came up first?
Standards
SS.8.FL.2.1 Explain why when deciding what to buy, consumers may choose to gather information from a variety of sources. Describe how the quality and usefulness of information provided by sources can vary greatly from source to source. Explain that, while many sources provide valuable information, other sources provide information that is deliberately misleading. SS.912.FL.2.1: Compare consumer decisions as they are influenced by the price of a good or service, the price of alternatives, and the consumer’s income as well as his or her preferences. SS.912.FL.2.5: Discuss ways people incur costs and realize benefits when searching for information related to their purchases of goods and services and describe how the amount of information people should gather depends on the benefits and costs of the information.
People pay taxes to help provide goods and services for the benefit of the American people. For example, the government can build and fix roads, pay for civil servants, and invest in technology. Some of the biggest expenses are health programs, social security, and defense. For an overview on taxes, watch the Schoolhouse Rock Video. What did you learn about taxes? What are some of the goods and services that taxes provide? Then, watch the Khan Academy Basics of the U.S. Income Tax video. What did you learn about income tax? Then read the Tampa Bay Times article below, explain how taxes pay for education.
Standards
SS.8.FL.1.8 Discuss the fact that some people receive income support from government because they have low incomes or qualify in other ways for government assistance. SS.912.FL.1.7: Discuss how people’s sources of income, amount of income, as well as the amount and type of spending affect the types and amounts of taxes paid.
A more recent study by Common Sense Media illustrated that children’s access to mobile devices is much higher than it was two years ago. In fact, over the past two years, the number of children using mobile media has almost doubled and the time children spend using mobile devices has tripled. Buying apps usually requires using credit. Check out the video Appily Ever After below to understand some of the financial issues that could occur with younger children, especially when using "freemium" apps. After you watch the video, create a presentation to give to younger students to help them avoid these problems.
Those aren't the only problems with apps! Did you know that when you sign into some apps through your Google or Facebook account, you are allowing access to your information, including financial data? Furthermore, read the Tampa Bay Times article on how downloading apps can provide access to your personal and private information. What did you learn? What are some ways you can protect yourself from risk of data or identity theft? Create a modern fairy tale, video, or rap to present to other students and parents so they can live appily ever after!
SS.8.FL.6.7 Evaluate social networking sites and other online activity from the perspective of making individuals vulnerable to harm caused by identity theft or misuse of their personal information.
SS.912.FL.6.9:Explain that loss of assets, wealth, and future opportunities can occur if an individual’s personal information is obtained by others through identity theft and then used fraudulently, and that by managing their personal information and choosing the environment in which it is revealed, individuals can accept, reduce, and insure against the risk of loss due to identity theft. Buying insurance helps you protect against risks. The purchase of insurance involves paying an amount called a premium at regular intervals, with the understanding that if negative events occur, the insurance company will pay certain costs. What are some types of insurance and what do they cover? Insurance can be complicated. Read the two Tampa Bay Times articles below on messy insurance issues. What are some of the problems identified in the articles? How do unethical practices impact the price consumers pay for insurance? What advice do you have for consumers who are going to purchase insurance? What would you do if you were the owner of an insurance company?
Standards
SS.8.FL.6.1 Analyze the fact that personal financial risk exists when unexpected events can damage health, income, property, wealth, or future opportunities. SS.8.FL.6.2 Identify insurance as a product that allows people to pay a fee (called a premium) now to transfer the costs of a potential loss to a third party. SS.912.FL.6.1:Describe how individuals vary with respect to their willingness to accept risk and why most people are willing to pay a small cost now if it means they can avoid a possible larger loss later. SS.912.FL.6.7:Compare the purposes of various types of insurance, including that health insurance provides for funds to pay for health care in the event of illness and may also pay for the cost of preventative care; disability insurance is income insurance that provides funds to replace income lost while an individual is ill or injured and unable to work; property and casualty insurance pays for damage or loss to the insured’s property; life insurance benefits are paid to the insured’s beneficiaries in the event of the policyholder’s death. Investing for the future can be very confusing and risky. The stock market is the most risky investment because of price fluctuation and confidence in the market. When there is optimism, prices rise and we say we are in a bull market. When pessimists dominate, prices fall and we say we are in a bear market. Check out the two Tampa Bay Times articles below: Bull and Bear. What are some of the factors that can increase or decrease confidence in the market? How can news or world events impact stock prices? Bulls and Bears aren't the only animals of Wall Street. Have you heard of chickens? They are afraid of the market. What about wolves? Check out how the movie the Wolf of Wall Street got caught up in an investment scandal in the article below. How can you avoid wolves?
Standards
SS.8.FL.5.1 Describe the differences among the different types of financial assets, including a wide variety of financial instruments such as bank deposits, stocks, bonds, and mutual funds. Explain that real estate and commodities are also often viewed as financial assets. SS.8.FL.5.5 Explain that the rate of return earned from investments will vary according to the amount of risk and, in general, a trade-off exists between the security of an investment and its expected rate of return. SS.912.FL.5.3:Discuss that buyers and sellers in financial markets determine prices of financial assets and therefore influence the rates of return on assets. SS.912.FL.5.4:Explain that an investment with greater risk than another investment will commonly have a lower market price, and therefore a higher rate of return, than the other investment. SS.912.FL.5.6:Describe how diversifying investments in different types of financial assets can lower investment risk. SS.912.FL.5.7:Describe how financial markets adjust to new financial news and that prices in those markets reflect what is known about financial assets. Check out the Tampa Bay Times article on the thrift shop, Thrifty Dog, which claims it will donate all proceeds beyond operating expenses to animal rescue and pet care organizations. This is a great example of a social entrepreneurship enterprise, where the owner has a triple bottom line of people, planet, and profit. Are there any problems involving people or the environment that you would like to solve? Consider a business you could start to solve that problem. What good or service would you provide? How does it provide an income (profit) for you? How can you help people? How can you do something for the planet?
Standards
SS.8.FL.1.2 Identify the many decisions people must make over a lifetime about their education, jobs, and careers that affect their incomes and job opportunities. SS.912.FL.2.6: Explain that people may choose to donate money to charitable organizations and other not-for-profits because they gain satisfaction from donating.
There are many things that impact our buying decisions. For example, consider the growing plastic vortex known as the Great Pacific Garbage Patch. Watch the Tampa Bay Times Newspaper in Education video below, which discusses the problem. Gather information from a variety of sources. What did you discover? How does this information impact your buying decisions?
Standards
SS.8.FL.2.1 Explain why when deciding what to buy, consumers may choose to gather information from a variety of sources. Describe how the quality and usefulness of information provided by sources can vary greatly from source to source. Explain that, while many sources provide valuable information, other sources provide information that is deliberately misleading. SS.912.FL.2.1: Compare consumer decisions as they are influenced by the price of a good or service, the price of alternatives, and the consumer’s income as well as his or her preferences. SS.912.FL.2.2: Analyze situations in which when people consume goods and services, their consumption can have positive and negative effects on others. |
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January 2022
CategoriesAuthorDeborah Kozdras, Ph.D. |