What Is Money?
- Understand the concept of earning income
- Use addition, subtraction, multiplication, and division (with whole numbers, fractions, decimals and/or percents, mixed numbers) to solve real-world math problems that will help them understand the concept of earning income
Chart paper or chalkboard, marker or chalk, Student Magazine Pages 2-3: What Is Money? (PDF), pencils
Discuss with students: What is money? Where does money come from? How is money used? How do people get money? What are some ways that kids get money? Write examples of ways that kids receive money on the board or chart paper.
- Tell students that when people receive money, it is called income. There are two kinds of income: Money for providing a good or service is called earned income. Money received as a gift is called unearned income.
- Write down examples from the class of kids' sources of income, e.g., allowance, gifts, paper route, lemonade stand, returning bottles for deposit, finding money.
- Add these example in a column on the board or on chart paper under the title "Types of Income." Add two other columns: "Earned" and "Unearned." Invite students to identify each example and check them off as "earned" or "unearned."
Do the Math:
Add another column to the chart on the board. Ask students to assign various monetary amounts between $0 and $5 for each item. A sample completed chart could look like this:
Based on this completed student chart, compute the following with students: Total Income, Total Unearned Income, Total Earned Income.
To illustrate Average Income totals, complete a second chart using different student examples, and average totals between the two charts.
Discuss with students: Why does money have value? How do people get money? What kinds of interests do you have now that might someday lead to a job?
Have students brainstorm different skills and how those skills might be used in different jobs that people do. What things are students learning now, and how might they be important one day at a job? Invite a guest to speak to your class about his or her career path and the steps taken to achieve his or her goals.
Language Arts Extension:
Expository: Writing Situation: Everyone has jobs or chores. Directions for Writing: Think about why you do one of your jobs or chores. Now explain why you do one of your jobs or chores.
Narrative: Writing Situation: People have many types of different jobs and use many different types of skills in those jobs. Directions for Writing: Think about a job that you find interesting and write about how your skills could be used in that job. Now write a story about a real or imagined job.
Have students read Student Magazine Pages 2-3: What Is Money? (PDF), in class or at home, and complete the problems on page 3.
Student Magazine Answers (PDF)