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Eighth Grade - Mathematics

 

Activities

Family Income

Financial and Economic Concept: Career Management

Provide each student with a copy of the “Family Income” worksheet.

Family Income Worksheets (pdf)

Have each student estimate first, then determine the actual total yearly family income using the data provided on the worksheets.

Following the worksheet exercise, conduct a class discussion for students to express their feelings about potentials for income.

Music Connection

A Penny Saved - Comic Book

Financial and Economic Concept: Savings and Financial Investments

A Penny Saved is a comic book available as a PDF or to read online.  Either print it for students, provide computer access to read online, or project it so the class can read it together.

Hand out A Penny Saved: Student Worksheet. Tell students to read pages 2–11 and answer the questions as they read. (The approximate time to complete this activity is 30 minutes.)

A Penny Saved: Student Worksheet (pdf)

A Penny Saved: Student Worksheet - Answer Key (pdf)

Review A Penny Saved: Student Worksheet with the students, using A Penny Saved: Answer Sheet. Discuss selected questions and provide clarification of concepts when necessary. Have students discuss and compare the things they wanted and listed with the things the characters in the comic wanted on pages 2–5 of the comic book (a diamond, a wedding, college, sneakers, travel, a house). Ask students to give examples of the possible consequences of not saving. (Answers should include having no protection for emergencies or unforeseen problems and having no reserve amount for special occasions).

Review key vocabulary words. Have students write the terms on their worksheets or on a separate sheet of paper.

• Savings - Putting money safely aside for future use. Ask students what “safely” might mean.
• Spending power – The ability (power) to pay, to be prepared for emergencies, or to be prepared to pay for what we want in the future.
• Interest – A fee for the use of money over time. Interest is money earned on a savings account. It is also money charged to a borrower.
• Compound interest – Interest paid on previously earned interest as well as on the original deposit. Explain that compound interest amounts to more than simple interest that is only paid on the original deposit. Make sure students now understand that saving money in a bank or credit union keeps the money safe and earns them more money.

Refer students to A Penny Saved, page 7, box 4, and have them read what the characters say about earning interest. Tell students that they will soon learn more about the computation of interest, but for now they should look at A Penny Saved, page 8, which illustrates the growth of an account with simple versus compound interest. Refer to the charts and point out the difference in amounts earned between the two types of interest.

Point out to students that there is a quick method of calculating how fast savings grow with compound interest. A Penny Saved, page 8, box 3, explains the Rule of 72. The Rule of 72 tells how many years it will take for savings to double with compound interest. Explain to students that if they divide the interest rate into 72, the answer is approximately the number of years it will take savings to double with compound interest. For example, with a 9 percent compound interest rate, savings will double in approximately 8 years (72/9 = 8). With a 3 percent compound interest rate, savings will double in approximately 24 years (72/3 = 24).

Complete Lesson Plan (pdf)

Music Connection

Money Math

Financial and Economic Concept: Savings and Financial Investments

Divide the students into small groups. Assign each group a different savings instrument. For example, money market funds, treasury bonds, treasury bills, savings accounts, and certificates of deposits. Ask students to do some research to answer the following questions.

1. What is this savings instrument called?
2. Does it require a minimum balance?
3. Are there fees or penalties if you withdraw your money before a specified time?
4. Is this savings method more or less risky than savings bonds?
5. What is the interest rate on this savings instrument?
6. Is interest compounded annually, semi-annually, quarterly, daily?
7. How is the purchasing power of the savings protected from inflation?

Complete Lesson Plan (pdf) (see page 10)

Music Connection

Price-Earnings Ratio

Financial and Economic Concepts: Savings and Financial Investments

This lesson focuses on a real-life business application of ratios - the price to earnings ratio used when looking at stocks. The lesson contains a power point presentation, as well as a worksheet and answer key.

Complete Lesson Plan

Understanding Types of Payment

Financial and Economic Concept: Careers - Earning an Income

Students determine advantages and disadvantages of part-time jobs with regard to types of payment, e.g., salary, hourly wage, commission, piecework. They will learn to calculate weekly gross wages of the above types of payments.

Lesson Extension: Conduct an informal survey (interview 10-12 people) on the most common way people get paid. Graph the results.

Home Connection: Ask family members how they get paid and calculate their monthly earnings. Research how much a sports star makes and calculate their monthly earnings.

Student Worksheet 1 (pdf)

Student Worksheet 2 (pdf)

Music Connection

Interest is Interesting

Financial and Economic Concept: Saving and financial investing

Simple and compound interest, the rule of 72

• Review lesson and mathematical concepts of interest with students

Assignment: Computing interest and using the rule of 72

Complete Lesson Plan (pdf)

Music Connection