Financial Literacy Basics

Financial Literacy Basics

Here's a high-level plan for teaching financial literacy to Stone Hill Middle School
students over 12 sessions:

Session 1: Introduction to Financial Literacy
● Objectives: Understand what financial literacy is and why it’s important.
● Topics Covered: Basics of money, spending, saving, and budgeting.
● Activities: Group discussion on where money comes from and how it is used.

Session 2: Earning Money
● Objectives: Learn about different ways to earn money.
● Topics Covered: Allowances, jobs, entrepreneurship, and passive income.
● Activities: Create a list of ways they could earn money at their age.

Session 3: Budgeting Basics
● Objectives: Understand the concept of budgeting.
● Topics Covered: Needs vs. wants, creating a simple budget.
● Activities: Students create a basic budget based on a hypothetical allowance.

Session 4: Saving Money
● Objectives: Learn the importance of saving and how to set savings goals.
● Topics Covered: Short-term vs. long-term savings, interest, and compound interest.
● Activities: Set up a savings goal for a specific item and calculate how long it will
take to save for it.

Session 5: Spending Wisely
● Objectives: Understand smart spending habits.
● Topics Covered: Comparison shopping, evaluating needs and wants, and avoiding impulse purchases.
● Activities: Practice making spending decisions through a role-playing exercise.

Session 6: Banking Basics
● Objectives: Learn about different types of bank accounts and how they work.
● Topics Covered: Checking vs. savings accounts, how to open a bank account, and online banking.
● Activities: Mock activity on filling out a bank account application.

Session 7: Introduction to Credit
● Objectives: Understand what credit is and how it works.
● Topics Covered: Credit cards, loans, interest rates, and the importance of credit scores.
● Activities: Discuss scenarios where using credit might be beneficial or risky.

Session 8: Managing Debt
● Objectives: Learn how to manage and avoid debt.
● Topics Covered: Good debt vs. bad debt, strategies for paying off debt, and understanding minimum payments. Introducing the concept of college student debt.
● Activities: Case study on managing a small loan or credit card balance.

Session 9: Understanding Taxes
● Objectives: Introduce the concept of taxes and why they are necessary.
● Topics Covered: Income tax, sales tax, and property tax.
● Activities: Simple exercise on calculating sales tax on purchases.

Session 10: Investing Basics
● Objectives: Learn about different types of investments and the importance of starting early.
● Topics Covered: Stocks, bonds, mutual funds, and diversification.
● Activities: Simulate a simple stock market game with fictional companies.

Session 11: Financial Decision-Making
● Objectives: Practice making informed financial decisions.
● Topics Covered: Risk vs. reward, opportunity cost, and financial planning.
● Activities: Interactive game where students make decisions based on different financial scenarios.

Session 12: Review and Real-World Application
● Objectives: Review key concepts and apply them to real-world situations.
● Topics Covered: Recap of all sessions, connecting lessons to real life.
● Activities: Group project where students create a financial plan for a future goal (e.g., college, a major purchase).

This plan provides a balanced approach, gradually building knowledge and practical skills over the 12 sessions. Based on the levels of kids’ comprehension and enthusiasm in the sessions, we may tweak the future sessions to coincide with the overall flow. We may add more interactive activities or provide supplemental pieces of knowledge and wisdom from some of the famous people who have done well in the financial world. We can also explore adding 1 or 2 more sessions based on the specific interest in particular topic(s) as expressed by the students.