Profit Basics Understand

WALT (We Are Learning To)

• Understand the concept of profit as income minus expenses.
• Explore how profit can be made or not made in a simple business situation.
• Work collaboratively to role play a business scenario involving profit.

Curriculum Links

This lesson aligns with the New Zealand Curriculum Refresh's learning area of Mathematics and Statistics (Phase 2, Year 4) in the strand of Financial Mathematics where students are taught to:

• Represent money values and solve simple problems involving purchases, costs, and change.
• Create simple financial plans (e.g., shopping lists, budgets).
• Investigate authentic financial situations and represent findings using equations and tables.

It also fosters the Key Competencies:

• Thinking: analysing how profit is calculated and used in decision-making.
• Using language, symbols and texts: interpreting money, numbers, and communicating ideas through role play.
• Managing self and Relating to others: collaborating effectively in groups to plan and present a scenario.

Success Criteria

By the end of this lesson, students will be able to:

• Explain that profit equals income minus expenses.
• Identify examples of income and expenses in a simple scenario.
• Participate in a group role play demonstrating understanding of profit.
• Evaluate and discuss which groups made profit and which did not and why.

Lesson Duration

45 minutes

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Lesson Outline

Time	Activity	Description	Resources
0-5 min	Introduction and WALT	Briefly explain the concept of profit = income - expenses. Write and display formula on the board.	Whiteboard, markers
5-15 min	Watch & Discuss Video	Watch an engaging, child-friendly video explaining what profit is (using the teacher-provided video link). Discuss with prompting questions: "What is profit?", "Can a business have no profit?", "Why do some businesses lose money?"	Video (teacher plays)
15-20 min	Group Explanation	Divide class into 5 groups (5 students each). Each group is given a packet of biscuits and role play instructions: they will pretend to run a small business selling those biscuits, deciding prices and expenses.	Biscuits packets (5), role play cards
20-35 min	Role Play Preparation and Performance	Groups plan and rehearse their role play demonstrating profit calculation (income from sales minus their expenses). They can choose to make a profit, no profit, or loss. Then groups perform for the class.	Space for performances
35-43 min	Class Discussion & Profit Analysis	Discuss with the class which groups made profit and which did not. Ask students to identify income and expenses from the role plays. Reinforce the profit formula.	Whiteboard for notes
43-45 min	Wrap-up and Biscuit Treat	Acknowledge all groups for participation. Let students eat the biscuits as a reward and a practical end to the lesson.	Biscuits

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Detailed Activity Breakdown

1. Introduction (0-5 mins)

• Teacher displays the formula: Profit = Income - Expenses.
• Teacher provides examples: Income = money from selling biscuits, Expenses = money spent to buy or prepare biscuits.
• Use simple language suitable for Year 4.

2. Video and Discussion (5-15 mins)

• Watch the supplied video explaining profit.
• Facilitate classroom discussion with questions such as:
  • What does profit mean?
  • Could a business have no profit or a loss? Why?
  • What choices might affect whether a business makes a profit?

3. Group Role Play Setup (15-20 mins)

• Allocate groups; each gets one packet of biscuits.
• Give role play cards explaining:
  • Cost of the biscuits (expenses).
  • Possible selling price (income).
  • Students decide how to 'sell' their biscuits in the role play.
• Encourage creative role plays including customers, sellers, and money exchange.

4. Role Play Performances (20-35 mins)

• Each group performs their scenario to the class.
• Role plays highlight:
  • How much income they made by selling.
  • What expenses they accounted for.
  • Whether they made profit, broke even, or had a loss.

5. Class Discussion & Analysis (35-43 mins)

• Class votes or discusses which groups made profit or not.
• Teacher reinforces the formula, referring to real examples from plays.
• Students reflect on what actions led to profit or loss.

6. Wrap-up and Treat (43-45 mins)

• Celebrate the learning.
• Students enjoy biscuits.
• Remind students that understanding profit helps people make good decisions in business and life.

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Differentiation Strategies

• For diverse learners:

  • Provide visual aids (e.g., posters illustrating the profit formula).
  • Use sentence starters for reflection like "Our income was...", "Our expenses were...", "Our profit was...".
  • Support group roles with clear instructions.
  • Allow ELL students to use their first language or gesture with peers to explain ideas.

• For students needing extra support:

  • Pair them with peers for the role play.
  • Use manipulative play money for hands-on learning.
  • Simplify numbers or provide a scaffolded profit worksheet.

• For advanced learners:

  • Challenge them to calculate exact profit using addition and subtraction with money values.
  • Encourage them to suggest strategies on how to increase profit.
  • Ask them to create an extension role play where they negotiate expenses or discounts.

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Assessment

• Formative assessment during group discussions and role plays to check understanding of income, expenses, and profit.
• Use questioning to see if students can articulate the profit formula in their own words.
• Observe group collaboration skills and use of mathematical language.

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This lesson plan uses a hands-on, engaging method combining multimedia, group work, and role play to embed the essential financial literacy concept of profit, fully aligned to the New Zealand Curriculum Refresh for Year 4 students. It integrates curriculum learning outcomes in Mathematics related to financial mathematics, encourages key competencies, and provides meaningful opportunities for creative and critical thinking as well as relating to others .