Ninth Grade – CCSS Mathematics I , Linear, Quadratic, & Exponential Models.

Construct and compare linear, quadratics, and exponential models and solve problems.

Construct and compare linear, quadratics, and exponential models and solve problems.

2. Construct linear and exponential functions, including arithmetic and geometric sequences, given a graph, a description of a relationship, or two input-output pairs (include reading these from a table.)

The purpose of this activity is to help students understand the difference between simple and compound interest. Provide the students with the following scenarios and have them determine how they would invest their money based on what they learned about CDs, checking accounts, savings accounts, and money market accounts. Indicate that they must decide how to invest and be able to explain why they made their decision. Provide all the scenarios to each student or group of students.

- Scenario 1: You received $100 as a birthday gift from a relative.
- Scenario 2: You are 30 years old with a steady job. After paying your bills and leaving out other budgeted funds, you have $500 left over.
- Scenario 3: You are in college and holding down a job. Money is tight, but you know the value of saving and have managed to pull together $1,000.
- Scenario 4: Your retired grandparents are looking for a safe way to keep $5,000 and have ready access to it if they need it.

Review each scenario and have each student or group report the option they chose and why they chose it. Compare and discuss the different responses. Discuss how the amount of money, length of investment, rate of return, and access to the funds might affect their investment choice.

Based on the investment choice, have the students calculate the interest gained on their account over 10 years using the information they gathered from their assigned financial institution.

Finish the lesson by reviewing the different types of interest and accounts, emphasizing the importance of understanding the various ways to save and invest money.

Ninth Grade – Personal Finance

Standard 3: Students will understand principles of money management.

Objective 1: Describe the role of planning and maintaining a balanced budget.

This interactive activity is a student favorite. It is great for introducing budgeting concepts. Students will use dried beans as manipulatives that represent MONEY! After navigating through a budgeting game board with one of the bean games (two game variations available), students complete a real budget, calculating percentages and category totals. Direct students to use figures for a 9th grade male/female, who just got his/her first job working 15 hours/week for $8.25/hour.

FEFE Spending Plan Game (pdf) (see pages 7 & 9)

USU Extension Bean Game (pdf)

Student Worksheets (See My Own Budget and Spending Plan)

CCSS Mathematics, Mathematics 1 (Grade 9)

Linear - Quadratic Exponential Model.

1. Distinguish between situations that can be modeled with linear functions and exponential functions.

For this activity, students consider financing differences when buying a house. Students learn about paying points and interest rate.

- This activity will be useful to all students, but particularly to students interested careers as loan officers, financial managers, and realtors.
- Refer to the worksheet "Points on Buying a House" for specific instructions (answers are included on the PDF).

Complete Lesson Plan (When accessing this lesson you may be prompted to sign in. Simply select your town and enter your zip code and area code.)

Points on Buying a House Worksheet (pdf)

CCSS Mathematics, Mathematics 1 (Grade 9)

Linear - Quadratic Exponential Model.

1. Distinguish between situations that can be modeled with linear functions and exponential functions.

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)

CCSS Mathematics, Mathematics 1 (Grade 9)

Linear - Quadratic Exponential Model.

1. Distinguish between situations that can be modeled with linear functions and exponential functions.

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)