Economic Events and Relationships

Overview

This is lesson 3 of 5 in Financial Interdependence Insights. Students investigate how an external economic event creates direct and flow-on effects across financially interdependent entities, building on prior learning about entities, real flows, and money flows.

Learning intentions

• WALT describe financial relationships between entities.
• WALT identify the direct effect of an economic event.
• WALT explain flow-on effects through a network of entities.
• WALT predict how an entity could respond to protect its financial viability.

Success criteria

• I can identify at least three entities involved in an interdependent financial relationship.
• I can distinguish between a direct effect and a flow-on effect.
• I can explain how an event changes money flows or real flows between entities.
• I can support a prediction with a clear because statement.

Curriculum links

• Demonstrate understanding of how entities with interdependent financial relationships are affected by an event: describe relationships, direct effects, flow-on effects, and impacts on relationships.
• Demonstrate understanding of the financial viability of an organisation: consider how an external factor affects an organisation’s ability to continue operating.
• Demonstrate understanding of an organisation’s financial decision-making: consider options and consequences for an organisation and its stakeholders.
• New Zealand Curriculum Level 6 Social Sciences: develop economic understanding, think critically, communicate ideas, and participate and contribute in collaborative discussion.

Lesson structure (60 minutes)

1. 0–6 min · Hook and retrieval. Open with the hook and retrieval slides showing a local café, its supplier, workers, customers, bank, and landlord, then ask: “If customers suddenly stop spending, who else is affected?” Students independently list two entities and share one money flow or real flow with a partner.

2. 6–16 min · Direct teaching. Use the direct-effect teaching slides to revise entity, financial interdependence, money flow, real flow, direct effect, and flow-on effect. Model the chain: “A recession reduces café sales” (direct effect) → “the café orders less coffee” → “the supplier earns less” → “the supplier reduces staff hours” (flow-on effects). Students annotate the chain on the financial interdependence investigation sheet and identify where money and real flows change.

3. 16–22 min · Event briefing and modelling. Display the event scenario and modelling slide and introduce three possible events: a recession, a major flood, or a sudden increase in transport costs. Think aloud using the structure “event → direct effect → flow-on effect → relationship affected”. Students help complete one example and suggest a further consequence.

4. 22–40 min · Group investigation. Place students in five groups of five and give each group one event scenario on the group investigation sheet. Students assign roles of facilitator, recorder, entity tracker, evidence checker, and spokesperson. They map at least four entities, draw arrows showing money or real flows, identify the direct effect on one entity, and predict at least three flow-on effects. Require each prediction to explain which relationship is affected and why.

5. 40–51 min · Group discussion and challenge. Use the discussion and challenge slides to display the prompts: “Who is affected next?”, “Does every entity experience a negative effect?”, “Which relationship is most financially important?”, and “What could one entity do in response?” Each group presents its chain in two minutes. Listening students record one agreement, one question, and one possible response for another group on their worksheet.

6. 51–60 min · Individual synthesis and exit check. Return to the plenary slides and ask students to complete the final section of the individual synthesis section: “Explain how one event affects three financially interdependent entities. Include one direct effect, two flow-on effects, and one possible decision.” Finish with a verbal confidence check and collect the sheets for formative assessment.

Resources

• the complete lesson slide deck
• the financial interdependence investigation worksheet
• Whiteboard or display
• Projector
• Coloured pens or highlighters
• A4 paper for group relationship maps
• Timer
• Five event scenario cards prepared on the worksheet

Assessment

• During retrieval and direct teaching, check whether students can distinguish money flows, real flows, direct effects, and flow-on effects; address misconceptions before group work.
• During group investigation, circulate with a checklist: four or more entities, labelled flows, one accurate direct effect, three explained flow-on effects, and a clear relationship impact.
• Collect the individual synthesis responses as an exit assessment. Look for description at Achievement level, explained links between effects and relationships at Merit level, and a justified response with consequences as an early indicator of Excellence-level thinking.

Differentiation

• Provide a relationship-map template, a word bank, and sentence starters such as “The event directly affects ___ because…” and “This flows on to ___ because…”.
• Allow students who need support to begin with three entities and one completed arrow before extending the chain. Pair EAL learners with supportive peers and clarify “entity”, “revenue”, “supplier”, “stakeholder”, “money flow”, and “real flow” using simple examples.
• Offer audio or teacher-read versions of the scenarios, enlarged worksheets, and scribing or speech-to-text where appropriate.
• Extend confident students by asking them to identify a positive as well as a negative effect, compare two possible responses, and justify which response best supports the organisation’s financial viability and pūtake.