Teaching Financial Literacy Skills

• Copies of the article “What’s Your Financial Path” on page 2 of Money Confident Kids Student Magazine printable
• Copies of the article “Spending Now” on page 2 of Money Confident Kids Student Magazine printable
• Copies of the article “Spending Later” on page 3 of Money Confident Kids Student Magazine printable
• Copies of the “Money Talk” printable on page 6 of Money Confident Kids Teacher Guide printable
• Copies of “The Power of Advertising” printable on page 8 of Money Confident Kids Teacher Guide printable
• Teenage Consumer Spending Statistics Chart

1. Make a class set of the Money Confident Kids printable or the following articles within the printable: “What’s Your Financial Path?”, “Spending Now,” “Spending Later,” “Money Talk,” and “The Power of Advertising.”
2. Make a class set, or enough copies for students to share, of the Teenage Consumer Spending Statistics Chart.

Free Write

Step 1: Write the words “save” and “spend” on the board.  Ask students to think about whether either one of these concepts is better than the other and write about their opinion for five minutes. Students should support their opinion with details.

Independent Reading

Step 2: Have students read the “What’s Your Financial Plan?”, “Spending Now,” and “Spending Later” articles from the Money Confident Kids printable.

Checking Comprehension

Step 3: In a full-class discussion, ask students about details in the articles to ensure that they understood what they’ve read. Ask questions such as: “Do most young people think they know how to manage money?” (No, only 17% do.) “What is the difference between saving and spending and spending now and spending later?” (It’s all spending, just with a different timeline.) “How much money does the average 12- to 14-year-old have to spend each year?” ($2,767)

Understanding the Facts

Step 4: Draw students’ attention to the phrase “Every year, $258 billion is spent on and by young people like you.” Explain that statistics like this are used to analyze what is happening in the world around us. They can help us look at the past (distant or near) and identify trends that might be useful in predicting what may happen in the future. Discuss examples of how statistics have been used to identify and predict trends, including weather forecasting, disease outbreaks, and elections.

Step 5: Underline the phrase “young people like you.” Explain that to really understand whether this statistic is relevant to them, they need more information about that phrase. Together, make a list of facts that they need to know in order to better understand the statistic, such as:

• “What ages were surveyed?”
• “Where do these ‘young people’ live?” 
• “Who is making the purchase — a teen, an adult, or a combination of the two?”

Step 6: Have students use the Teenage Consumer Spending Statistics chart to answer the questions they brainstormed. Also discuss the other statistics presented in the Teenage Consumer Spending Statistics chart and whether students feel this data accurately reflects their own spending choices.

Lower Level: To simplify the lesson, select only two or three statistics from the chart to focus students’ attention.

Higher Level: For an additional challenge, distribute copies of the article “Here’s How Teens Really Spend Money, What They Like, and Where They Shop” for students to read independently. As a class or in small groups, have students compare the details in the articles they have read and ask them to identify any emerging spending trends.

Ask students whether their opinion about spending and saving has changed. Discuss whether or not students feel that the idea of spending now and spending later is more positive and proactive. 

Lexile Score: 890L

Common Core Key Standards: RH.6–8.6, RI.6.6