6uide for Consultants and Teachers

Achievement
Guide for Consultants and Teachers
PERSONAL EC0N0MICS

Cop-yright 1998
Junior Achievement Inc.
Colorado Springs, Colorado

The text of this publication, rir any part Ihereo(, may not be reproduced or
transmitted in any form or by any rrieans, electrorue or mxharucal, including
photocopying, recording, storing in an information mtrieval system, or otIieru'ise
except in the course of conducting a registered Junior Achievement class or with
the 9ertni8Bion of the puhliGher.

Printed in the United States of America

04 03 02 10 9 8 7 6 5 4 3 2 1
 TABLE OF CONTENTS
Introduction
Forewor
Program Overyi
Program Materi
Preparing for Cl
Backgrou
Master List of Ma
Program Concep

Words to Kno 43

Activity Plans
Marketing Y
Identifying Your Skills and lnteres 14
Job Opportun
4. Job lntervi 21
5. Personal B
Famil, rd 27
Paying the B
Using Credit Wis
The Stock Ma
10. Analyzing Your Investm
Foreword
Program Overview
Students in Junior Achievements programs for the
midd]e grades learn fundamental economic ideas a nd
discover how businesses operate in the United States
and in international markets. They also explore career
interests and opportunities. Each week, for eight to 10
weels, business volunteers serve as rnle models, they
lead discuss ions and engaging activities, and they
enrich the program with their own experiences and
business knowledge.
The volunteers present activities from one of four
themes. The materials for each theme are packaged in a
kit that contains detailed activity plans; informative
WOFkbOOkS for sfU@efltS; Bfid addifiol3al materials IG
ensure a successful experience for students, teachers,
and volunteers.
The Middle Grade Programs are part of Junior Achieve-
ments integrated curricula for grades kindergarten
through 12, helping students understand their economic
world and preparing them for academic learning and
lifelong achievement.
Personal Economics
Personal Economies helps students assess their personal
skills and interests. explore career options, learn job-
hunting skills, and discover the value of an education.
They also learn about budgets, personal and family
financial management, and the use tif credit. 3he
activities reinforce economic concepts taught in career,
. I ac ftmtt, ' '.
'fTfak for preeeatipgZ'\sxmzf. 'conoorfcs totbe etixleate tayocr cotooiunity. Ag s buefriwa wt
i sha soodel. In fact, you nate ba tkoonl7 bnsineas peraon witb wbofn aenyoftbosaJdoatsteyaotjegp(azjy.
nsi ring Pe onats win be csaiiengig em rewareig e pciei,oc r r yr. ae
life skills, and other social studies eleetives.
Enterprise in Action
Enterprise in Action helps students understand the
principal characteristics of the United States economic
system and t]je role of business in it. The activities
reinforce economic concepts taught in U.S. history, state
history, and eivics courses. Students learn the steps in
organizing a business and producing and marketing a
product. They also study the social responsibilities of
business and the role of government in the U.S.
ecrnomy. . '
The International Marketplace
l'he Internatirnal Mark etplaee helps students appreciate
hw they are con nef!ted, through trade, to people and
r ullures throughout the world. The activities reinforce
economic concepts taught in worlci L istory and
geography courses. The program begins with a focus on
the resources of selecterl 'ountries and how they impact
cultures, governments, and ecinomic systems. The focus
then turns to the benefits of international trade and
important international econom ie issues.
The EconDmics of Staying in School
"fhe Economics of Staying in School comprises several
anti vities to help students understand the cost of leaving
school early and the lieriefits of obtaining an education.
) . ' "
y6u azcap
r
Program Materials
Each kit contains the materials you will need to
successfully conduct the program. Please review all of
the materials, and call your local Junior Achievement
office if your kit is incomplete.
Guide for Consultants and Teachers
Each kit contain9 two guides. The guide for the teacher
can be found in the Teacher Envelope. The guides
features are designed to keep 7our preparation time
Background-These two pages summarize the core
concepts presented in the activities.
Master Liat of Materials--For your convenience, a
master list of materials is provided on page 8.
Activit7 Plans
OrervGA summary of the activity is provided for
consultants and teachers.
O6yeciivesLearning outcomes state the skills and
knowledge the students will gain fmm each activity.
Concepts end SiiilrConcepts and skills are listed for
each activity.
#reparotionAdvice for getting ready for each activity is
provided here.
4foieriofsThis section lists the materials needed for the
activity. Supplementary materials may not be pmvided.
PresentationThis detailed script guides consultants
through the activity and discussion, ensuring a smooth
presentation of objectives. Each activity requires at least
45 minutes, so plan accordingly if you will have more or
less time.
Summar y nrid IteriwConsultants are encouraged to
reemphasize objectives before concluding each Activity.
Life SkillsThese follow-up activities offer students
opportunities to apply concepts and skills presented in
the activity. They may be presented by either the
consultant or the teacher, as time allows.
Presentation Outlinein outline follows the detailed
activity plan to encourage consultants to add personal
notes while accomplishing the activity9 objeclives.
Fords to Know-Vooabulay ierm9 introduced in this
program are found at the back of the guide. This list also
is in the student workbook.
Student Workbook
Your Personal Economics kit contains one student
workbook, Ecori end be, for each student. Ideally, these
workbooks should be kept in the classroom between
your presentations. Its activities are tied closely to the
activity plans and Life Skills. Answer keys are given
with the activity plan in your guide.
Certificates
Certificates of Achievement for the students have been
included in the kit to recognize their participation in the
program. You will need to obtain an up-to-date class list
fmm the teacher in order to complete the certificates.
Please make sure you have signed each certificate and
correctly spelled each students name.
Plan with the teacher for the most effeclive way to
distribute the certificates, and encourage the students to
show them to their families.
Teacher Envelope
Included in your kit is an envelope that contains 1 Cuide
for Con9ultants and Teachers, I Comments form, 1 Pre-
and Post-program Test, and I Letter Home black-line
master. Be sure to give the envelope to the teacher during
your observation visit.
Preparing for Class
Schedule a class visit /planning session with the teacher
before your first activity with the students. This time will
help you to determine the schools particular goals anrl
objectives for the program and to learn the students
interests or needs. Discuss your program objectives with
the teacher, and ask him or her about activities the
students enjoy the most, their general aliilities, and
suggestions for classroom management. (tive the teacher
the Teacher Envelope.
Its tme times have changed since you were in school,
and so have the students. But not as much as you migh t
think! If you take a few moments to answer these
questions, you will he well on your way to understanding
man y of the students in your class.
While you are visiting the classroom. take note of the
following:
How many students are there? Knowing this will
help you decide how to divide the class into small
groups.
How does the teacher encourage orderly participa-
tion'* For example, do the students raise their
hands? How does the teacher handle
interruptions.*
What does the teacher do to make each student
feel important and at ease? Is there anything you
would do differently ?
Does the classroom have a clock, or will you need
to bring a watch?
In fact, you will quickly discover that your students have
critical sor'ia1, personal, and academic needs. That is
one good reason for you to approach the students with
sincerity ancl respect. Learn their names, and
compliment them to encurage their participation. If
permitted, award prizes such as cookies, candy, or
noyelty items imprinted with your firms logo. Finally,
relate the aclivities to the students.
While you have the primary responsibility for presenting
the program, the teacher is crucial to the programs
success.
ABk the teacher .
to give you ongoing feedback on how to
communicate effectively with the class.
to review or introduce concepts to prepare the
students for your visits.
to stay in the classroom during your presentations
to assist and discipline the students, when
needed.
to explain school policies and communicate any
schedule or calendar changes to you. (Be sure to
exchange phone nu mbers should either of you
need to contact the other outside of class.)
to help you acquire audiovisual equipment, if
neecled, and assist with field trip plans, when
sppmpriate.

Where can you display visuals.* Will you need

tape or push pins to display them ?

How is the room arranged? Will you need to move

desks or chairs for any part of your presentation?

Will you be able to count on the teachers help'*

Do you see any potential problems with your
presentation or with the class? Try to discuss your
observations with the teacher.

The most striking aspect f your class will be the wide

s-a riation in student ability, maturity level, and interests.
Reviewing the Activities
\ II 'i ii i I . \ i l 'i i I I I I ii I i I .i i i I ii i I \\ i I li I Ii ' I. \ i - i i.i I , , \ , i i i, I I { i - ii I i i I I j, ,i l i \ i l i -.
I i *, II i . \ t i \\ i I I ,i \ I I i ) .i k i I t i i i I k i i \\ I 'i I i ii i ] ) i T l \\ ) i I I j ' i T Ii { +i s i i l, i l i i i- i T i i | {, I t
\\ i I I iI' ' ' I I +t iI i ).t - i > i I -. IM i - I { I I j,i I I iI Ii \\ i Ti,i \ i ji, i I i I i , ] { i iI \ i i i T | .
! I I I I) I 'I ) ) ) } i II i | i) I I I \ i 11 I I I > I I .

! ) | I 17 i ! 117 E I I I I I I I I 7 ) I .II I ! I) I t ' * { I I I ) I ' I I {*

I ( I ! , I 'I T ,I 'I T\ I I \ { I' Ii 7 . I i ) t I I ' 1,1I 'i * I I ii I 'I i I j I j I i ' i I '- { , I i ji { ,I ] I I I I j '-, , i { i \ i { i I ji, t \ { , k i i j i ' ii
\t I ) H + / . I I I \ i I \ ) Ii i i' t 'I ) + \ I * I I . I ' - { I i ji l l j,i i j i ' X { t i I j 't ( ) \ i I ] ; l i j } t I l ji \\ ! i i \\
I + I I * I I I I ) ! I I I I I I i I I 1 11 1 1 1 I I I I i + *t
I \ ' \ i i' \\ 7 I . i I I i I I { I i \ '.. I ) 7I i i i TiI ] I -
i I i 17 ' I *' i - ) 7 \ i * i i i' ) T i i i \ I i - I \ i \ ' iII \ ii i i
Background
The United States economic system is known by various
terms: free enterprise, market, or capitalist. The terms
are 9ynonymous in that they distinguish the economic
system in the United States from those in many other
countries. They also set apart U.S. citizens, Americans,
because of the tenets by which they live and work.
When economists describe the U.S. economy, they often
use a model called a circular flow. Shown below in a
simplified form, the circular flow demonstrates the
movement of money, resources, and products in a
market" system.
Students can define a market from their own experience.
Most would say its a place where people buy and sell
things, and theyd be correct. Yet, a market is much
more. A market is an arrangement in which an exchange
takes place. For example, a person interviewing for a job
is entering the job market. This market is where one
exchanges talents and skills (labor) for a salary or wages
(money). Another example might be someone who wants
The Circular Flow
In tbi$ tllusLra$ioH, mo1If/ otPscom
Hwehofdr to businesses in return for goods
and seruicex. Businesses pay wages nnd
salaries /or labor and other resowces.
to buy a computer. This person could be described as
being in the market for a computer.
junior Achievements Middle Grades Programs examine
markets from three perspectives. In Personal Economics
and in The Economics of Staying in School (ESIS ),
students discover how they as individuals exchange
their money, labor, and other resources in markets. In
Enterprise in Action, students discover how businesses
exchange goods and services as well as wages and
sH anes in markets. In Ihe International lVlorketplace,
students discover how people and businesses exchange
their money, resources, and pmducts on a global scale.
In all four programs, students discover how the U.S. .
economic system of free enterpriswthe market system
works.
Personal Markets
U.S. economics at the personal level is how individuals
choose to live and work within a market system. Note
especially the emphasis on choice. In terms of young
* /?esou+
people, personal economics and choice lie at .the core of
the question, What do you want to be when you grow
up? Few people realize that this question really
demands a study of economics, because it could be
restated, What role will you choose to play in our
market economy?
Thats why Personal Economics has students take a
career interest inventory. Before they enter the
marketplace, they should begin to identify the
reeourcea (skills, interests, aptitudes, experiences) that
they will be exchanging for wagea or salaries. They need
to explore ways to present themselves (or market their
resources) through job applications, resumes, and
interviews. They should be encouraged to examine ways
to improve themselves, to add marketable value, so that
they will succeed in attaining the roles they seek in our
economy.
As the students discover the importance of having
marketable skills, they will begin to explore the
implications of exchanging those skills for wages or
salaries. Will the wages and salaries they receive for
their labor enable them to obtain what they want and
need? This discussion of market activity leads naturally
into personal budgeting, managing finances, and the use
of credit. How far will their money take them in the
market? From there, students can explore savings
options and investment opportunities like the atock
market as the7 look for wa7s to add value to the
exchanges they have made in the marketplace.
Indeed, Personal Ecorioiriics ie about how individuals
choose to work and live in a market economy. Thmugh
the series of activities )unior Achievement pmvides, the
students should understand that their choices rely on
their decisions about the future.
Master List of Materials
Listed below are the materials needed for Personal Economics. Quantities are based on a class of 32.

Quantity Item Acti yity

Guide for Consultants and Teachers

Teacher Envelope

Table tents
Junior Achievement banner
Eeon and be student workbooks
36 Getting to Know You cards
Job Shuffle sets of cards
18 Chance cards
32 Cenificates of Achievement
Survey form
PFDgram Concepts
Concepts Activily

Budgets
Buying and selling
Careers
(Choices
Cretlit
Economy
Economic insiiiutirns
Empliyment
Exchange
Human resouices
Income and expenses
Income dislribution

Markets
Money
Opportunity
Opportunity conta

Risk
Savings
Stock
Wants anrl needn
 ' t s

Program Skills

Skills Activity

Analyzing information
Analyzing situations
Budgeting
Building self-esteem
Charting/graphing
Conceptualizing and designing
Critical thinking
Decision making
Filling out forms
Following directions
Formulating a plan
Interpreting information
Interviewing
Listening responsively
Making observations
Mathematical interpretation and computation
Problem solving
Role playing
Teamwork

10
 MARI4ETING YOURSELF
OVERVIEW CONCEPTS

SItILLS
) ' " 17 I I I '"* I ' ' I) I i ' \ 7' ( 7) 7 I IJIf) I I '

PREPARATION

PRESENTATION

students xi write tteit fiist names
on itiem in laqe LlccL letters.
in05tlnerlD. If y0fl W0vld like 10
cond lJct sl0c\ lrlafktl transections
as ar ongoing activity, y0u fray
th00se to fe6ift rge glans and
tondtict activity tf9 ilext liffie.
Once the students are settleil in their seats, give the teacher an opportunity to
introduce you to the students. Explain to the students that you are a volunteer with
Junior A chievement, a nnprofit organization that discusses free enterprise, business,
arift economies with stuilents in gravies kindergarten through 12.
Tell the students that Personal F>conomics will introduce them to their role in the
U.). economy. Explain to them that the U.S. economy is called a market sy9tem. Ask
someone to define a market.
Most students can define a market from their own experience. They might say its a
place where people buy and sell things, and the yb be correct. Yet, a market is much
mtire. Pinvi1e examples.
R A person interviewing for a job is entering the job moret. This market is
where one exchanges talents and skills (labor) for a salary or wages (money).
R Someone whti wants ti buy a computer could be described as being in the
man:et for a computer.
Market yourself to the students. Describe your job and help the students visualize
what your daily routine is like. If appropriate, distribute brochures or sample
pNJdUetS frOIT1 yotlf' bUSiF1eS'3.
Activity
Have the stuclents look at the business cards and read the information. Briefly
discuss eac!h element (e.g., persons name, title, business name, and logo). Explain
that people distribute their 1usiness cards to make introductions easier, market
themselves. and publicize their business.
Next, say that you want to get to know them too. Separate the Getting to Know You
t:ards and distribute one to each student. Explain that just as you gave each of them
your business card. you want each of them to design a card and give it to you.
First, have the students read the printed side of the card and fill in the
information. 1n the back of the ard have the students design a business card for a
joh they have or would like to have.
When the students have finished, ask for volunteer to share their business cards.
As time allows, distribute the student workbooks and have the students read First
Impiessions on page 3.
SummaryandReviow
Ex[lain that in Per.gonml Economics, the students will explore ways to present
themselves (ir market their iesoureef ) through jolt applii:ations, resumes, and
interv iew.s. They wiIl iliscover ways to improve themselves (i.e.. to add marketable
val ue.) so Ihat they will succeed in the rriles they seek in the U.S. eeinomy.
Further, tell them they will examine the value of what they receive in exchange for
their labor. Ask them, Will the money you earn in the marketplace pay for
everythi rig you want and ned'* Explain that they will learn this inftirmation by
participating in a'1ivities on persina1 budgeting, managing finances, and the use iif
credit as well as savings options and investment opJiortunities.
 Finally, tell the students that Personal Ecqriomies in about how individuals cfioose to work and live in a market
economy. Th rough the series i3f activities Junior Achievement provides, the students shoulcJ understand that their
choices rely on their det:inions about the future.

Before you leave, coIle:t the student workbooks, table tents, and (jetting to Know You earth. The students will
need to use them in the next activity.

PRESENTATION OUTLINEMarketing Yourself

INTRODUCTION

A'hievement, the program, and your role as a volunteer. Give srinie bac'kgrunil about
yourself.

ACTIVITY
Students tionceptualize and design their own business cards.

SUMMARY AND REVIEW

tlescrifie the personal economic's topics yu will 1e presenting: career planning, budgeting, and the use of

LIFE SKlLLS-Life flap

Have the students cfmplete the Life Map on page 4 in the student workbook.
 IDENTIFYING YOUR SI4ILLS AND
CONCEPTS INTERESTS
OVERVIEW
) ItI 'I >

SKILLS
OBJECTIVES

PREPARATION

PRESENTATION
Introduction
 When they have finished, have the students turn to the Career Interest
Inventory on page 8. Read the directions aloud and give them time to complete it.
Then ask the following questions.

How many had a score higher than three in A? B? C? D? E? F?

A Did the inventory identify careers that match your personal skills and interests?
A In the list of careers, which one is your favorite? Is it in the category with the
highest score?
A Do you agree with the results of the inventory? Why or why not?

After the students complete the activities, encourage them to talk later with their
families, friends, and teachers about their answers. The students may gain some
valuable insight into themselves.

Explain to the students how your current job (or one youve had) combines your
' skills, education, interests, and experiences. Encourage the students to start thinking
aLoui their future careers.

Summary and Review

Remind the students that their personal skills and interests can help them decide
their direction for the future and their roles in the marketplace.

Before you leave, collect the student workbooks and table tents. Remember to
bring employment ads from your local paper for next weeks activity.

LIFE SKIlN8-dsb ShufAe

Hold vp the Job 8hvlfle cards. tell ite studmts that itiey ae going to pIe/ a cad game that will help them teem a6ovt diffeenl jobs Eqlair jtial the deck contains
13 job dusttfs with four jobs ir each clucer. Eel cafd descrifies a job and its qutlificatiors. IJvmbeis tcfoss the fionom of aarh cafd cofresgord to talents the job
PRESENTATION OUTLINEIdentifying Your Skills and Interests
INTRODUCTION
Briefly review the last activity. Remind the students that they learned the importance of marketing
themselves.

ACTIYITY
Students complete Identifying Your Skills on page 7 in the student workbook.

Students complete the Career Interest Inventory on page 8 in the student workbook.

Students match their personal skills and interests to career6.

SUMMARY AND REVIEW

Remind the students that thetr personal skills and interests will help them decide their direction for the
future and their roles in the marketplace.

LIFE SKILLS-Job Shut:he

Have the student9 play the card game.
 JOB OPPORTUNITIES
OVERVIEW CONCEPTS
The students discover the steps involved in finding a job. They read employment Choices
ads and practice filling out a job application. They discuss the value of jobs and
volunteer experiences to their future career plans. Markets

OBJECTIVES
The students will Analyzing situations
A identify the steps involved in getting a job Filling out forms
rollowing directions
A discover ways people learn about job opportunities Interpreting information

A complete their own job applications

PREPARATION
Bring enough newspaper employment ads for the entire class. Try to ensure a
variety of jobs that are relevant to the students.

Become familiar with the reading Sheila Needs Work on page 9 in the student
workbook. Review Interpreting Employment Ads on page 10 and the Job
Application on page 11 in the student workbook and be prepared to help the
sludents complete the pages.

Also, please note the optional Life Skills activity, Rsum Writing, that you or
the teacher can use. Bring a copy of your rsum, if appmpriate, to share with
the students. You may also choose to distribute applications for employment
from your business.

MATERIALS
student workbooks newspaper employment ads (not in kit)
pens or pencils (not in kit) table tents (optional)
JA banner

PRESENTATION
Introduction
greet the s turlents and as k them to recall a few ref the impirtan I irleas yiu have
lii(:fIBSed during prev ious visits.

A A market is an arrangement in which ari exr hangr takes plac'e.

A I ndi viiluals market themsel ver in the L.S. ecnomy by rx'hanging their labor

17

tometices yo# een subcit en
gxilicetion et 8 Alars of emplo/mert
Yitghsr or lxit thee is a job
# you glen jo ise the Life Sblls
zcivit/. lie sixe o tell the midems
steq in getiixg a ioh xio.
Identifying personal skills and interests can help them determine career
choices.
Tell the students that identifying their skills and interests is the first step in
finding a job.
Ask how many students have jobs or do volunteer work. Then ask the students,
How did you find out about these jobs?" List their responses on t[ie chalkboard.
Aslr the students, What are some other ways to find out about jobs?
A People you know (parents, neighbors, friends, teachers.)
A Ads (newspapers, magazines, bulletin boards.)
A Employment agencies (including temporary help agencies)
A Filling out applications
Let the students know that many people find their first jobs through someone they
Distribute the student workbooks. Have the students turn to Sheila Needs Work.
Read the story aloud, and ask the students to identify how many job opportunities
Sheila overlooked. Once you have finished, briefly discuss with the students their
Tell the students that identifying personal skills and interests, resemhing the job
market, applying for jobs, and interviewing for jobs are the ateps in getting a job. Tell
the students that today they will read employment ads, choose jobs that sound
interesting to them, then practice filling out job applications.
through the ada and choose jobs that sound interesting to them. Give them about five
minutes. Ask the students, Which jobs did you select? Why? Call on as many
students as time allows.
Once the students have chosen jobs, give them another five minutes to complete
Interpreting Employment Ads on page 10 in the students workbook.
Explain to the students that the information from Interpreting Employment Ads
will help them complete job applications. Ask the students to turn to the Job
Application on page II in the student workbook and fill it out.
Summary and Review
Remind the students that finding a job means knowing where to look for one.
Sources of job opportunities include
A People you know A Employment ads
A Employment agencies A Filling out applications
 The steps in getting a job include
A Identifying personal skills and interests
A Researching the job market
A Applying for jobs (filling out applications/developing a rsum)
A Interviewing for jobs

Tell the students they will learn about interviews next time. Meanwhile, encourage
the students to consider the importance of work experienceat home, for pay, or
volunteerto their future careers.

IJFE 9XlLLB--R6cim Wif0ng

Tfetife Stiff tmrxy gnes be stvJaxs t tiana to eveloy ther Aw dcrds. A rtsum is a pxand si8Bmant d oe's peYios tmgoymet, stills, e8vcetiixi,
4caxrp8shmero ac k may lx neetel ntixi egplyitg fof soce}oIx

Hsve tte svIsis mm a Bvibifig e Raxri or pege 12 in tke stideet wo4ook Dismiss with ttiem the ole ofa sxriB in the poess of gxtlng sja8. Ilave tte
students devgoy tleir oer. nouage ttem Is oder a I0entifyirg \ovrStiIIs se ttey Oewlop tteir ltsxms.

19
PRESENTATION 0UTLINE--Job Opportunities
INTRODUCTION
Review the concepts introduced in previous activities.
- A carter is ar arfargezert ir abit# a# er#arge fates plate.
- Individuals maiLel themselves in the IJ.S. economy by exchanging their labor for money.
' Identifying personal skills and interests can help them determine caeer choices.

Discuss the students jobs or volunteer work.

Have the students identify ways peopIe find out about jobs.

Errployrrenl agencies Filling ovl aqylicaliors

Read aloud Sheila Needs Work on page 9 of the student workbook and have the students identify Sheilas
job opportunities.

ACTIYITY
Students complete Interpreting Employment Ads on page 10 and the Job Application on page 11 in the
student workbook.

SUMMARY AND REYIEW

Review the steps to finding a job and the sources of job opportunities.

Tell the students that they will learn about interviewing next time.

LIFE SKILLS-Rsum Writing

Have the students review Building a Rsum on page 12 in the student workbook and write their own.
. JOB INTERVIEWS
OVERVIEW CONCEPTS
The students discuss the characteristics employers want in potential employees, Ktnploy ment
especiall7 those characteristics that go beyond the basic knowledge and skill9 Human Resources
needed to perform the job. The students observe and evaluate successful and Markets
unsuccessful interviews, and they review a list of interviewing suggestions. Opportunity

0BJETIVES
The students will S Itl TLS
A nalyzi rig si tuat ions
A identify basic skills and characteristics employers look for in potential Utters iewing
employees Making uLscrvatinns
Role playing -
A recognize dos and donts in an employment interview

PREPARATION
If possible, have someone from your businesss human resources department
accompany you to this class. He or she might discuss how interviews are
conducted and how students can prepare for an interview. If you dont bring
someone with you. prepare interviews with the teacher that you can role play in
front of the students. (Have fun with this. During the unsuccessful interview, the
applicant might slouch, chew gum, and dress carelessly.)

Review Interviewing with Style on page 13 in the student workbook. Be prepared

to explain how your business screens applicants and selects people for an
interview.

Also, please note the optional Life Skills activity, Interviewing Style, that you or
the teacher may use.

MATERIALS
student workbooks props (optional)
pens or pencils (not in kit) table tents (optinal)
JA banner notebook paper (not in kit)

PRESENTATION
7. IfIt0)UCtI0I
Greet the students ant ask them lo recall the slcJis i n finding a ji[i:

I . IJe fltify in [Tel-8Jna1 Ok i 118 anal i ntrre'StS

2. h Seal t' )4 i n@ tht ITlaI ke I
3. Ap]aly ing fr jolts (fiI link rut applit'ations/developing a rsuni)
4. Interviewing fr jTs
 Describe how your b,usiness reviews job applications and decides which
applicants to interview. You also may wish to explain how the interview process works
at your business. Be sure to help the students understand that the actual interview is
usually the most important step in getting a job.

Activity
Ask the students the following questions:
I. . Now that an employer has your application (and/or rsum) with your
complete background, why do you need an interview? Students answers should ieveal
ar understanding of the imponance of marketing oneself well. Remind them of ltte first aciivily, Mateting
Yourself.

2. What skills and characteristics might an employer look for in an employee? List
ite students responses on lte c#a1ttoaid. They may include the tollowing:

Basic Skills: Reading, writing, arithmetic and mathematics, speaking, and

listening
Thinking Skillo: Thinking creatively, making decisions, solving problems,
seeing thinga in the minds eyes, knowing how to learn, and reasoning
Personal Qualities: Individual responsibility, self-esteem, sociability, self-
management, and integrity

Tell the students that interviews are typically held with the human resources
department of a company. Ask the students what human resources means. Emphasize
that the interview process is how a business matches the resources a person offers
with what a job requires.

Next, tell the students that they are going to watch you and your business
associate or the teacher role play an interview. Encourage the students to take notes
(on a separate pieee of paper) about the applicants skills and characteristics.

After the interview ask the students to name those things that hurt the applicants
chance of getting a job. List them on the chalkboard. For example:
1. Lack of a clear idea of interests, goals, and skills
2. More concerned with pay than anything else
3. Lack of commitment to a job
4. Criticizing a former boss

Next, have the students turn to Interviewing with 5tyle on page 13 in the student
workbook. Once the students have reviewed the list, role play a successful interview.
Have the class cn tique it too.

Summary end hevisw

Emphasize that an interview is the most important step in getting a job and that an
employer will use the interview to discover what personal skills and characteristics a
potential worker brings to the job. They include basic skills, thinking skills, and
personal qualities.

Call on individual students to name dos and donts for interviews.

PRESENTATION OUTLINE--Job Interviews
INTRODUCTION
Review the steps to finding a jo
Idedlifyirg ggf$0fl6l StillS 6Rd ifit9f9S(S
Reseaching the mans

Be prepared to discuss how the interview process works at your business.

ACTIYITY
Identify skills and characteristics employers took for in their employees: basic skills, thinking skills, and
personal qualities.

Role play unsuccessful and successful interviews.

Review Interviewing with Style on page 13 in the student workbook.

SUMMARY AND REVIEW

Remind the students of skills and characteristics employers look for in their employees.

Call on students to name dos and donts of interviews.

LIFE SKlLLMlnterviewiiig Style

Interview the students for the jobs they applied for in the last activity.
CONCEPTS OVERVIEW
flu The students work in small groups and use hypothetical information to develop a
Int line personal budget for a teen-ager. They learn the reasons for creating a budget and
Money the basic features and characterist(09 Of all budgets.
Opportunity r t
Savings
Wants and needs
OBJECTIVES
The students will

explain why budgets are important

SKILLS
Bucigeting give examples of items found in a budget
Mathematical
interpretation and identify examples of opportunity costs associated with balancing a budget
computatio n
Problem sol ving
Teamwork
PREPARATION
Review Creating a Personal Budget on page 14 in the student workbook. Be
prepared to help the students complete the budget. Consider making an
overhead transparency of Creating a Personal Budget.

Also, please note the optional Life Skills activity, Personal Budgets, that you or
the teacher may use.

MATERIALS
student workbooks pens or pencils (not in kit)
table tents (optional) JA banner
overhead transparency (optional) calculators (not in kit)

PRESENTATION
Introduction
k,
V'hat ski1l5 and ' harar'teristics migh I an ernpliyer loik fir in an emplyee?
Basic stills, iLir\ing skills, ard personal qualities

A How do prople keep fi om sprniing mre money than they make?

They c eate a dodge
Activity
Ast ihe teacher to fielg divide tHe
Distribute the student workbook s. If you have made an overhead transparency of
clsss into pairs.
Creating a I'ersonal Budgrt n page 14, display it. Encriurage the stucients to work
with a partner to plan a monthly budget. fJffer assistance if needeil.

Define opportunity coat for the students. Ask the students to offer their own services that must be given vp ir
xafMplcS. SOme J3Ossi1)le aFlSWerS art: Oftel to Obta in other goods altd
A The opportunity cost of a movie is the C D I want try huy. sefyices.
. The opportunity cost if studying ftr my exam is going out with my friends.

After about ltl mintites, ask the students to share their budgets with lhe class.
Have them describe how they decided to fiudget the money. Ask them to identify their

Once you have discussed several students approaches to a personal budget. ask
them the tollowing:

A Have you heart the term laalanced budget:* What no you suppose it means?
Encourage we students to see thai the process they Just practiced, weighing income ard expenses
helps bfirg a budget into balance. A budget is balanced when income equals expenses ard savings.

A If a budget has a shortage , what options do ytu have to bring it into balance.*
GUI PIQg fiSP S
Increase ircome
Draw on savings

. If a budget has a .surylus, what options rlo you has e In luring it into balan:e?

Summary and Review

Restate \Our qUt*fi II+Jn ) Elm i if' itJ llHrl uf 7iun: h\ )I ]JeH[Ih Wur )! LmphasiZC
that people t'reate laudyet5 t k ee[i Iheir int-ome anti expenses i u Ialanr'e. Ask the
students for exampl s id iteins Iiun rl in a liulget.

l3ritlly des:ribe the oplitiiis av ail alile ti luring a budget into balance. Then call on
one or two students to give an example of an opportunity 'ost.

Ask the sudsnt to wring a cafe uIatr for next weeks ac tiviEy.

MFE SKlLLWPersonal Budgets

Have students apply what they have learned by creating a budget for theniselvee based on antual income and
expenses.

25
PRESENTATION 0UTLlNEPersonal Budgeting
INTRODUCTION
Review the characteristics employers look for in employees.

Tell the students that budgets help people track their income and expenses.

Define opportunity cost, and have the students give you some examples.

ACTIVITY
Have the students read Creating a Personal Budget on page 14 in the student workbook. Help them
complete the monthly budget.

Have the students describe a balanced budget.

Have the students provide the options available to bring a budget into balance.

SUMMARY AND REYIEW

Emphasize that people budget their money to keep their income and expenses in balance.

Call on students to give examples of opportunity t'os1s.

LIFE SKlLLS-Pereorial Budgets

Have the students create a budget for themselves based on actual income and expenses.
 FAMILY FINANCES
CONCEPTS
OVERVIEW Budgets
The students discuss financial planning and budgeting. They create a budget in Income and expenses
which they establish priorities and estimate costs based upon expected income Income distribution
and expenses. Money
Opportunity costs
Savings

SKILLS
The students will
A create a budget for a family
Budgeting
describe the benefits of following a budget Mathematical
interpretation and
A identify choices families must make as they budget their income and computation
expenses Problem solving
Teamwork
PREPARATION
Become familiar with Planning a Monthly Budget on page IS in the student
workbook Obtain several classified sections from a local newspaper. Students
can use these to compare the current prices of Romes, apartments, and
automobiles in their area

Also, please note the optional Life

teacher may use.

Chance Cards pens or pencils (not in kit)

table tents (optional) calculators (not in kit)
JA banner

PRESENTATION
Introduction
Greet the students. Ask them to describe a budget and the reasons an indi vidual
should develop a personal builget.

Explain that just as people have personal budgets, families have householrl
budgets. Like individuals, families set priorities and agree on how their money will be
spent.

Remind the students that a budget includes both income and expenses.
 Activity
Inform the students that they will now play the roles of family members as they
create a family budget. Divide the class into five groups and tell them they represent
families with different incomes. Distribute the student workbooks and have the
students turn to the Planning a Montfi Jy Budget on page 15. Tell the students,

Each gmup represents a four-member family with two wage earners of equal

Each group, family, will have a different income. Each group will have to
decide hour to spend its monthly income.

Assign each group an income" fbefore taxes) as a basis for planning its budget.

Gmup1 12,000a mon+fil]2 00Da pea)

Govp 2 80.000a mo 2(5]D000a pea)
Gmu 3 5 000a mo](548.0D0a pea)
Gov 4I 000 mo if(5D0,000 yw)
GmcD556,000 most(S72,O00ayea)

Review page 1.5 in the .student workbook.

Directions:

2. Budget for necessary items first. Necessary ilems are needs. Choices are limited because yov
must have these things: housing payment rem or montage), electricity/water/gas, loihing, and
food.
3. List luxury and discretionary items. Decide how to divide your remaining income amorg item.
Luz ry items are wanls. These iterrs are Vol necessary io live: movies, art, cruises, etc.
Discretionary items are ones of choice. Ore can reduce spending on them, Jul not completely: a
ca r f0f both W0 rk a11d fun, p raEtical but fast iOrabl e cl0t#es, etC.
4. Note expenses that car be eliminated or reduced if there are emergencies o ure pected

5. Review your budget to see if you can increase your savings, chafitale cortriuliors or make
betl9f use 0( y0lJf inC0itie.

Allow enough time (about l5 minutes) for the groups to create their budgets.

Tell the sttidents they will need their calculators. Have them use the typical
percentages to help them plan their expenses. For example, Group 4 could
spend approximately $2(10 a month on clothes ($5,000 x .04 = 8200), but they
may plan to spend more or less.

Let each group make a brief presentation on how they spent their income.
Comment on any obvious clifferences such as, Did U roup S spend more on recreation
than Croup I .* It should become rlear that the high-income groups had more
flexibility in planning than did the low-income groups.

Now point out lhat in everyones life things happen that are unexpected, It is
probable that the families neglected to save enough for these emergencies.
Randomly distribute the Chance Cards to the groups. Cive the groups a few minutes
(five or less) to read their cards and decide how to meet the emergencies. What
changes will they have to make in their original plans? This part of the exercise
should show dramatically the importance of saving to meet unexpected emergencies.

Summary and Review

Remind the students

All families are different and they make different choices about how to spend
their income.

A High-income groups have more flexibility in planning than do low-income

groups.

In everyones life thing9 happen that are unexpected. That is why savings are
important.

Tell the students that during the next activity they wiII learn how people pay bills.
PRESENTATION OUTLINEFamily Finances
INTRODUCTION
Ask the students to describe a budget.

Remind the students that a budget includes income and expenses.

ACTIYITT
Divide the class into five groups and assign an income level to each.

Give the groups time to create their budgets in the student workbooks.

Distribute the Chance Cards and have the groups adjust their budgets to meet the emergencies.

SUMMARY AND REVIEW

Remind the students
All families are ditfaeni ard mate different choices a6out how to spend their income.
High-ific0ifle gr0lJpS laVe irl0re flexibility ir plarlfiing loan do l0W-ilJC0ni9 gr0lJpS.
Savings are imp0nanl because unexpected thirgs happen ir life.

LIFE SKILLS-Making Plans

Distribute the student workbooks. Have the students read Making Plans on pages 16 and 17 then make a
plan for the future.
 PAYING THE BILLS CONCEPTS
OVERVIEW Economic institutions
The students are intmduoed to financial institutions. They discues the uae of Income and expenses
checking accounts and practice writing checks. Money
Wants and needs
OBJECTIVES
The students will SKILLS
Filling out forms
A recognize that checks are siren against funds deposited in a checking Mathematical
account interpretation and
computation
A describe the purpose of a checking account Teamwork

R write checks and maintain a check register

PREPARATIONS
Befote class, ask a local bank for deposit tickets, checks. and check registers for
the students to use, or uae the forma pmvided with thia activity.

Also, please note the optional Life SLille activity, Income and Expenses, that
you or the teacher may use. It requitee additional deposit tickets, checke, and
check registers.

MATERIALS
student workbooks table tents (optional)
pens or pencils (not in kit)
deposit tickets, checks, and calculators (not in kit)
check registers (optional)

PRESENTATION
Introduction
Greet the students. Remind them that individuals market themselves in the U.S.
economy by exchanging their labor for money. Money is used to buy what we want
and need.

A Ask the students what people use to track their income and expenses. 8hdgels.

A When is a budget balanced? Wtsn inc0me equals oIgenses and savings.

In the U.S. market system where do people typically save their money?
 Mention some of the services these institutions provide, such as checking
accounts, loans, savings accounts, travelers checks, and safe deposit boxes.

Explain to the students that checks are used as a substitute for cash. They are
written against the funds in a checking account. They often are used when paying
bills, because one should never send cash thmugh the mail. But theres a correct way
to write checks.

Activity
Distribute the student workbooks. As a class, read abtut the Frank family on
pages 18-20, complete the deposit ticket, and record the rranks income in the check
register.

Explain the rules for writing checks.

A Dont write checks for mfire than the amount of money in your checking
account.
Date line: Record the date that you write the check. Postdating, or using a
future date, will not delay it from being subtracted from your account.
Payee line: Recorrl the name of the person or the business to whom the
check is written,
Amou nt field: Write the amount of the cheek in figures. Start at the far left
of the box so no one can add a digit.
Dollars line: Write the amount of the cheek in words and the cents as a
fraction of l0tI. Draw a wavy line in the remaining space so no one can
add more words. Do not erase an error on a chee k. Either write a new
check or :trrect the check and write your initials next to the error. Tear up
the old check or write VOID on it.
Memo line: Record what the payment is for.
Signature line: Sign your name as it is printed run your checks. Do not
sign a check until it is ready to be used.
Do not sign a blank or inn ompJete check.

Have the students complete the remainder of the activity individually, in pairs, or
in groups.

importance sf eroiciIing their Ixirt Ask the students what the Franks balance is in their checking ar:count (5315.S0).
Ask them where they think the Frank family could cut its expenses.

Summary and Review

Remind the students that one shouldnt write chec ks for more than the amount
money in a cheek ing account.

Ask them to identify ways to spending mney wisely. \('rite their ideas or M
chalkboard.
Look for quality
Consider warranties/repairs
Sh0y anal cool pa r9 pfices PaStane replacefTleflt
Watch for sales Bfly In v0l uEle
Negoiiaie price if possible Consider used vs. new
IJFE SKlLLWlncome and Expenses
Oistribvte the student worldoots. Using deposit ticlen, cfiecls, art client egisiers ffom a local Land, tiers the mxlints practice their effect-writing slcIls with
lnc0fr0 0i1d E peflses Off pag9 21. Tt0ir titltrice aftef r0c0rdifig all inr0ln6 and expenses should #0g ] ,1 0fi.

PRESENTATION 0UTLlNEPaying the Bills

INTRODUCTION

A Ask the students what people use to track their income and expenses? 8ufigels.

A When is a budget balanced '' W#er income equals expenses aofi savings.

A In U.S. market system where do people typicall y save their money?

- credit unions

ACTIVITY
Have the students turn to Check Writing on page 18 in the student workbook and complete the l'rank
familys deposit ticket and check register.

Have the students write checks for tlae Frank familys monthly bills.

Ask the students what the balanr e i is rrarik familys checking account. ($315.50)

SUIYI34ARY AND REYIET

Rcminrl the siuIrnts that true shoulrlnt wiite hecks fir more than the amount in a checking account.

Brainstorm some ways to spend money wisely.

Ask the Btu dents to bring their calculators to class for your next visit.

LIFE SKILLS-Income and Expenses

Using deposit tic kets checks, and check registers from a local Frank, have the students practice their
chec k-writing sk ills.
 USIN6 CREDIT WISELY
CONCEPTS OVERVIEW
Credit The students discuss the advantages and disadvantages of using credit to make
Money everyday purchases. In small groups the student9 examine a credit card
Opportunity costs statement.

SKILLS OBJECTIVES
Interpreting information The students wi]l
Mathematical A identify the costs and benefits of using credit
interpretation anJ
computation A Calculate the cost of a loan
Teamwork
PREPARATION
Consider asking a loan officer fmm a local bank to be a guest speaker. Practice
completing Calculating Credit on page 22 in the student workbook before
presenting it to the students. Bring a credit card to class. You may want to make
a transparency of the credit card statement.

Also, please note the optional Life Skills activity, Credit Rating, that you or the
teacher may use.

MATERIALS
student workhooks table tents (optional)
pens or pencils (not in kit) credit card (not in kit)
calculators (not in kit) overhead transparency (optional)

PRESENTATION
Introduction
Creet the st udents. Review the previous a ti vity. Ask the st ucients try Iist ways to
spend their money wisely.

Loo k f0f qIIaIity toasi6er used vs. new

Shop and compare prices L0flSidef WarrafxieS/repairs
Postpone replacement
Negotiate price, if possible

Ask the students if they know methods people use to borrw money:

Loars for automobiles, college tuition, done impovemeris

Mortgages for Lornes, Property
CaSh a dna fice/ pa yd ay I0alJS f0 r b0ff0w In g ca s b fr0 frl y0 uI ne Ft p ayehe c \
 Hold up a credit card. Ask the students if they can tell you what it is and hnw it
works. Tell the students that this card is something people use in place of money to
buy things.

Many sluden\s will he able l0 iderlif/ a credil card: however few may realize thai credit cards are a
way of Jo//o'/ug no/let ne4it c8id useis ya/ a finance chaige when using the card. Purchasing
on credit means paying a1 a future Male.

Ask the students if they can name some advantages and disadvantages of using
credit cards to make purchases. Liat their ideas on the chalkboard.

Advantages Disadvantages
Icirrediate use of goods or sen/ices Adds to ores
debt ALiIily to tate advantage of good sales Finance changes
Safe/convenient alterralive lo carrying cash Easy to oveisperd

Activity
Divide the class into small groups.

Distribute the student workbooks. Have the students turn to Calculating Credit
on page 22 and read Credit Advice. Discuss it as a class.

Remind the students how frustrated Fred and Frieda Frank were when they paid
their bills. Explain that they are still fretting. But, now it isnt their checking account
but their credit card statement that fruxtratee them.

Explain that the students will answer some questions about the Franka credit
card statement. Suggest that the students look for clues to figure out who Harry is.
(Frank Familys French Poodle)
vampeiero/ of the crak steteefit
yr oig#t dxxnsa corxXit his
After the students have completed Calculating Credit, ask for volunteers to eCiviiy as a slob dca.
answer the questions.

Summary and Review If appopriea, ezpleir ttiet

Review the methods people use to borrow money, Oonsxner Dsdil Bvfeaus colbn
irformelion ahot pxipb wto use
Tell the students that a person's circumstances often change. What may look like cre0n. If sofreones cmlit iatirg is
wise use of credit today may, in fact, become poor use tomorrow and vice versa. The
important thing to remember is to proceed cautiously when using someone elses
money. You will have to pay it back!

Ask the students to bring their calculators to your next visit.

2. S835.87

4. f19.08
LIFE SKILLS--Credit Rating
H6ye the stlJderts load the cedit situ0ti0rls and rorrplet0 Cfedit Rating on gag0 33 if too strldent W0f\h00\.

PRESENTATION 0UTLlNEUsing Credit Wisely

INTRODUTION
Review ways to spend wisely from the last at tivity.

Hold up a credit card. Explain that rurehasing on credit means agreeing to pay at a future clate.

Discuss some different types of credit:

Oieii cards loans
Mongages [asnadvance/pardayloans

Ask the students to name some advantages anrl disadvantages of using credit tti make purchases.

ACTIVITY
Divide the class into groups and distribute the student workbooks. Have the students complete
Calculating Credit on page 22.

Review Credit Advice on page 22 in the st udent workbiok.

SUMMARY AND REVIEW

Review the ways people use credit or fitirrow money.

ASk He studerlts IG dirt ng heir cal Nu lators tre PIaSB tur $II11r ned I visil.

LIFE SKILLS-Credit Rating

Have the stulents read the t'redit situations and complete the Credit Rating en page 23 i n the
student workbook.
 CONCEPTS
Choices
Exchange
I n vesting
Risk
Savings
StOCk

Analyzing information
Charting
Formulating a plan
Teamwork

stock market table in the student workbook on

after your visit. They could sell 9tocks and buy others
Next time the students will sell all stocks and

PRESENTATION
)I3tF0)UCtI0I3
(ireet t he slu Rent s. liev ie w I he tae I a r' I i v i ly. R e inin r1 113c sl mini ts 1)iat f'retlit is

blfiifl (I ctJ it I al II H:
1 Irrlidled Date use 0f g 0 0 dS 0 r Se rv Ice s
1 Ability \o take advantage of sales
A Safe/conver ient aliefnative io carrying cash

Biak is the po6eility d me\irg e
grofit or l0sifg ffl0flz'/ Off 0n0s
Explain that saving 'money is the opposite of borrowing money. Note a major
difference between borrowing money and savings money by asking the students,
A When you borrow money, what do you pay? A finance charge
When you save money, what do you earn? lntsfesl
Distribute the student workbook. Have the students turn to A Penny Earned on
page 24. Guide a discussion of the chart with the following questions:
A tf you save 50 cents a day for 20 years, how much would you save if you earned
S percent interest?($4,127) At 10 percent interest?(G7,656)
A If you save 50 cents a day for 30 years, how much would you save if you earned
5 percent interest?($26,797) At 10 percent interest?($174,687)
A If you save a dollar a day for 40 years, how much would you save if you earned .
S percent interest?(845,969) At 10 percent interest?(5191,301)
Explain that many people put their money in savings accounts to earn interest so
that their savings will grow. Another way to make your money grow is by investing in
the stock market. A stock is a share of ownership in a corporation. People who buy
shares of stock hope to earn dividend9, which are shares in the corporations pmfits.
Tell the 9tudents that people invest in stocks because the return on their
investment is generally higher than the amount of interest they can en on a savings
account. The return is higher because the riek is greater. Savings accounts are
insured by the federal government up to $100,000; investments in the stock market
are not. Shares of stock can lose value.
Activity
Have the students turn to The Stock Market table on page 25 in thestudent
workbook. Show the students how to read a stock market table. Have the students note
the closing price. This is the price people pay when they buy stock.
Divide the class into investment teams of three or four students. Distribute the
stock tables fmm the newspaper you brought. Explain to the class that today they are
going to buy stock. They must try to invest G1,000. They should record their
transactions on the Stock Transactions form on page 26 in the student workbook.
Review the form with the class.
Summary and Review
Review the terms in The Stock Market table.
A price-earnings ratio
R yield
A preferred stock
R closing price
 Tell the students they will sell their stocks next week and determine whether they
made or lost money.

Tell the students they will be working in the same groups next week.

PRESENTATION OUTLINEThe Stock Market

INTRODUCTIOI'I
Review the advantages of using credit.

Di9cUss A Penny Earned on page 24 in the student workbook.

ACTIVITY
Review The Stock Market table on page 25 in the student workbook.

Have the students use a stock market table from a newspaper to buy stocks.

Have the students record their stock purchases on the Stock Transactions form on page 26.

SUMMARY AND REVIEW

Review the terms from the stock market table.

LIFE SKILLS-Investing Faeta

Discuss the advantages and disadvantages of different types of investments.

39
CONCEPTS

SKILLS

PRESENTATION
 A Why do people buy and sell stock?
bBC8tlSe lie rolUffl 0h inveslzerl is generally #igt.

Activity
Have the students form their same investment teams from the last activity.
Distribute the student workbooks and copies of the stock market tables fmm the
newspaper. Have them turn to their Stock Transactions form on page 26.

Tell the class that today they are going to sell the stock that they purchased to
determine whether their investment made or lost money. Have them compare the
prices of the stocks they purchased. Give the students time to complete the activity
and offer assistance. '

Once the students have finished, ask each investment team whether it made _
money or lost money. Help the students analyze their investments. Aok for
volunteers to tell the class which stocks they purchased made money and which lost '
money. ,

Summarize the activity by telling the students that many people take the money _
they earn in the stock market and reinvest it by purchasing more stock. Others may
choose to reinvest in another type of investment. ,

As time allows, review other types of investments with the students, such as
passbook savings, mutual funds, certificates of deposit (CDs), savings bonds,
corporate bonds, commodities, or collectibles. For discussion ideas refer to the Life
Skills from the previous activity.

Summary and Rsview

Review Personal Economics with the students.

A The U.S. economy is a market system.

A A market is an arrangement in which an exchange takes place.
Individuals exchange their labor for salaries and wages in the marketplace.
Individuals can auld marketable value to their skills through education or work
experience. They can add value to their earnings by investing them.

, Tell the students that the choices they make will help them define their future role
in the marketplace.

Give each student a certificate of achievement. Since this is your last class with
the students, be sure to mention how much you have enjoyed your time with them.
Thank them for their participation. 5hare with them something you learned, and ask
a few students to share something they will remember about this experience.
PRESENTATION 0t/TLlNEAnalyzing our Investments
INTRODUCTION
Ask the students why many people put their money in bank accounts.

Ask the students why people buy and sell stock.

because itt return on inveslmesi is Serenity fiigt.

ACTIVITY
The students sell their stocks and complete the Stock Transaction form on page 26 in the student
workbook.

The students analyze whether they made money or lost money.

SUMMARY AND REVIEW

Review Personal Economics.

Distribute the certificates of achievement.

Words to Know
bond Certificate representing a long-term debt of a government or
corporation.
budget Plan for saving and spending income. A budget is balanced
when expenditures exactly equal income.
career A field of work.
certificates of deposit (Cos) Certificates issued by savings
institutions and banks. CDs guarantee the repayment of a sum of
money at a fixed rate of interest and at a specified date.
common stock Most basic form of stock o'wnership. The holder o(
common stock has a right to a share of the companys earnings,
a voice in management, a claim on assets, and permanent
ownership.
consumer User of goods or services.
credit The ability to purchase goods or services now in exchange
for a promise to pay later.
dividend That pan of corporate profits distributed to stockholders.
ecDn0mics The study of how people allocate limited resources to
satisfy needs and warts.
entrepreneur Person who creates a business in the hope of
earning a grofit.
e XpeI\SeS CoStS.
FeJeral Reserve System The nations central barking system.
goods Items of value that afe tangible (capable of being seen or
touched).
human resources The people a business uses to produce its good
or service.
income Earnings.
interest Payment for the use of someone elses money. Usually
expressed as an annual rate in terms of a percent of the
pri nCipaI (a fno firit I0a fled).
interview A face to tace meeting to get or give iob information.
investment In economics, spending for new capital, such as
factories and machines. In general usage, investment refers to
savings that are set aside to earn money.
job A position in a business.
job application A form to be filled out when requesting a job.
labor Human Resources
market An arrangement in which an exchange takes place
maturity The date when the amount loaned to the issuer is to be
paid.
money Anything generally accepted in payment for goods and
services. A medium of exchange.
mortgage Long-term loan, usually used to finance a building.
mutual fund An investment that minimizes risk by pooling bonds,
stocks, or other securities from a variety of sources.
net worth Difference between the assets and liabilities of a firm or
individual.
Opportunity costs The cost of something expressed in terms of
what had to be given up in oder to ob\ain it.
passbook savings account Savings account from which funds
can easily be withdrawn.
preferred stock Stock also representing ownership of a company.
If the corporation were to close down, the owner of preferred
stock would receive his or her share before the owner of
Co in frion St0C l.
profii A companys earnings after it has paid all expenses.
purchasing power Value of money measured in terms of what one
can buy with it.
reference A person who can tell an employer about a joh
applicant.
rent In economics, payment for the use of land.
resum A written summary of an individual's job-related
qualifications.
risk The probability of making a profit or losing money on ones
investment.
savings Unspent income.
scarcity Condition created by the excess of human wants over the
resources necessary to satisfy them.
SeCu fit i eS C0fniTj0rl Iy feferS to st0ckS glid b0ridS.
services Work done that has value, such as the work of lawyefs,
doclofs, actors, etc.
standard of living A quality of life people enjoy based on the kind
and quantity of material goods they own.
stock Certificate representing part ownership of a corporation.
I a X C0iTipullS0ry pdyrfient to goVe rn fnerit.
wages Payment for the use ot labor.
Waf ranty A sellers statement about a products quality that
makes the seller liable if the product is defective.
wealth The total value of the things one owns.
yield The return on an investment expressed as a percent.
43
 JuniorAchievement
PUfifiuSE
Junior Achievement educates
and inspires young people to value free
enterprise, business, and economics to
improve the quality of their lives.