Mini-Lesson 3: Getting Smart About Spending

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Objectives:
Students will understand:

• The difference between cash, credit, and debit
• That credit is a form of borrowing
• The costs and benefits of credit

Materials:

• Mini-Lesson 3 Printable (PDF): "Getting Smart About Spending"
• Bonus Activity 4 Printable (PDF): "Superheroes Do Their Research"
• Kids Spend Activity Printable (PDF): "Spend Wisely" (Ages 6-8)
• Kids Spend Activity Printable (PDF): "Spend Wisely" (Ages 9-11)
• Resource: Worksheets Answer Key (PDF)
• Resource: Standards Alignment Chart (PDF)
• Family Resource: Family Activity Booklet (PDF)

Click for whiteboard-ready printables.

DIRECTIONS:
Time Required: 10 minutes

1. Ask students, "How do we pay for things? What do you and grown-ups give the cashier in order to take something home?" Encourage students to name cash, checks, credit cards, and debit cards.

2. Do students know how a credit card works? Explain that banks and financial institutions will lend someone money to pay for things with the promise that it will be paid back within a certain amount of time. If the person doesn't pay it back within the specified time frame, the bank starts charging interest on his or her purchases.

3. Discuss the pros and cons of credit. Explain that for most purchases, using cash is the best policy and that it's only a good idea to use credit when you know you can pay off the balance. Adults do use credit, however, for big purchases like houses.

4. Have students complete the printable "Getting Smart About Spending" and discuss their work.

Extension:
Use these bonus printables to help students further develop their money smarts.

• Bonus Activity 4 Printable (PDF): "Superheroes Do Their Research"
• Kids Spend Activity Printable (PDF): "Spend Wisely" (Ages 6-8)
• Kids Spend Activity Printable (PDF): "Spend Wisely" (Ages 9-11)

These activities can be used as in-class lesson activities or out-of-the-classroom extensions.