Fun with Finance

Curriculum Area: Business Studies

Level: Year 3 (Levels 1-2 of Te Marautanga o Aotearoa)

Annuities Introduction

Lesson Objective

Understand the basic concept of annuities, their importance in everyday life, and the benefits of saving money over time.

Lesson Duration

150 minutes (2 hours and 30 minutes)

Materials Required

• Whiteboard and markers
• Play money (fake dollar bills or printed money)
• Toy shop price tags (printed or handmade)
• Large calendar
• Small containers for saving (e.g., small jars or envelopes)
• Sticky notes

Lesson Structure

1. Introduction (10 minutes)

• Greetings and Roll Call: Quick and enthusiastic hello to all students.

2. Warm-Up Activity: "Money Talks" (15 minutes)

• Interactive Discussion:
  • Discuss why people save money.
  • Introduce the concept of using money to buy things in the future like toys, books, or even trips.
  • Engage students by asking what they would like to save for.

3. Explaining Annuities (30 minutes)

• Simple Explanation:

  • Explain the idea of annuities as a way to save a little bit of money regularly to make a larger purchase in the future.
  • Use relatable examples such as saving part of their pocket money to buy a favourite toy.

• Illustration on Whiteboard:

  • Draw a simple diagram of saving money weekly for a month.
  • Show how saving a small amount each week adds up to a larger sum by the end of the month.

4. Hands-On Activity: "Save for a Toy" (40 minutes)

• Setting Up:

  • Give each student a small container labeled "Savings Jar."
  • Provide play money and toy shop price tags.

• Task:

  • Students 'earn' play money by completing simple tasks like drawing a picture or solving a basic math problem.
  • Students place part of their earnings into their Savings Jar each 'week' (every 5 minutes represents a week).
  • At the end of several weeks, students can 'buy' an item with their savings.

5. Break Time (15 minutes)

• Snack and Relax: Allow students to have a quick snack and relax before continuing the lesson.

6. Calendar Activity: "Planning Your Savings" (20 minutes)

• Calendar Marking:
  • Provide each student with a calendar.
  • Guide them in marking weekly savings days.
  • Have them plan small goals for each week.

7. Reflection and Sharing (15 minutes)

• Group Discussion:
  • Invite students to share what they saved for and their experience of 'buying' with their savings.
  • Discuss how it felt to save money over time and accomplish their goals.

8. Wrap-Up Activity: "Sticky Note Savings" (5 minutes)

• Creating a Savings Plan:
  • Each student writes one savings goal on a sticky note.
  • Place all sticky notes on a class 'savings wall.'

9. Conclusion and Homework (10 minutes)

• Recap the Lesson:
  • Summarize the key points learned about annuities and saving.
  • Explain a simple homework task: Ask students to talk to their family about creating a small savings plan at home.
  • Hand out a savings journal for students to record their savings journey at home over the next month.

Homework

• Savings Journal: Students will continue saving small amounts at home and record their savings in the provided journal. Parents can assist and sign weekly.

Assessment

• Observation: The teacher will observe and note students’ understanding and participation in the class activities.
• Participation: Students’ engagement in discussions and hands-on activities.
• Savings Journal: Check students’ journals for consistency and understanding after a month.

By engaging students in interactive and relatable activities, this detailed lesson plan aims to introduce Year 3 students in New Zealand to the fundamental concept of annuities within the context of Business Studies, aligned with the NZ education standards.