Invite a speaker from a bank. Have the person talk to the class about money and banking. Also, savings accounts, checking accounts, and borrowing money.
Prepare word problems and examples for students to do based upon the speakers presentation.
Interest is money paid for the use of borrowed money. To find the interest a formula is used; I = P x R x T.
P = principal, the amount borrowed.
R = rate, rate of interest.
T = time, the amount of time it takes to pay back the money borrowed.
What is the interest on a loan of $500. at 5 1/2% per year for 6 months?
I = $500. x 0.055 x 0.5 = $13.75.
To find the amount repaid, add the interest to the original loan. $500. + $13.75 = $513.75.
The Homemaking Department bought a microwave oven on credit for $450.00 at a rate of 16% per year for 9 months. How much interest will the Homemaking Department pay?
Invite a speaker from a supermarket. Have the individual talk to the class about food shopping and the store’s display ads in the newspaper, also about wholesale and retail pricing.
Making Use of the Newspaper
Give the class a budget and have them go on a shopping spree.
Example: Food shopping.
Shop for a family of four for a week, and for a month.
Clothes shopping for the beginning of school.
As a culminating activity plan a trip to the New York Stock Exchange or the American Stock Exchange.
Have a candy sale to help defray expenses.
A class of twenty-five students sold five hundred bars of candy at $1.25 each. They had to pay the Candy Kitchen $.75 for each candy bar sold. What was their profit?
1. Visit a bank in your neighborhood and find out what kinds of checking accounts are available. What are the fees for each check and for monthly services? Find out also what opportunities the bank offers for savings. What interest is paid on savings accounts? How frequently is interest compounded? What services does the bank provide that will help the individual to save regularly?
2. What kinds of benefits are provided by Social Security? Who pays for these benefits?
3. Make an appointment to visit the local office of the Social Security Administration and ask an official to explain the Social Security program. Summarize the information for your class by using a bulletin board or chart showing what the benefits are, and what costs are for the covered worker.
Suggested Class Activities
James Brown works for the City of New Haven. He earns $400.00 per week as his gross pay. However, some money is deducted for taxes and social security. Here are his deductions:
Federal Income Tax...........$35.80
State Income Tax.............$ 6.51
1. How much was deducted from his gross pay?
2. What is-his gross pay? _____
3. What is his net pay? _____
4. How much was deducted for taxes? _____
Robert Mitchell works as a janitor in the school. He earns $350.00 per week as his gross pay. He does not take all of his money home because some is deducted for taxes and social security. Let’s figure out his net pay.
Federal Income Tax...........$25.00
Social Security..............$ 8.97
State Income Tax.............$ 4.30
1. How much was deducted from his pay? _____
2. What is his net pay?_____
3. How much is deducted for taxes? _____
4. What is the largest deduction?_____
The White family during the year bought 195 gallons of fuel oil at $1.23 per gallon, 185 gallons at $1.25 per gallon, 240 gallons at $1.22 each, 275 gallons at $1.28 and 175 gallons at $1.30 each.
How much fuel oil did they buy?
What was the cost of their fuel oil for the year?
The telephone message rate service for 85 calls per month costs $10.50 with 10¢ additional for each call over 85. The basic monthly service allows unlimited calls and costs $14.30. There is a federal tax of 15% added to the cost of the telephone service. If a family expects to average 100 calls per month, which service is cheaper? How much cheaper?
At an average cost of 28.5 per kilowatt hour, find the hourly costs of operating each of the following:
a. Hair dryer, 4,000 watts
b. Iron, 2,000 watts
c. Television set, 350 watts
d. Stereo set, 1,900 watts
Find the average cost of gas used by the Oliver family during the month of January, February and March: Find the average cost per month.
9,000 cubic feet at $.56 per cubic foot.
9,184 cubic feet at $.51 per cubic foot.
7,109 cubic feet at $.58 per cubic foot.
Gregory was buying clothes for school. He figured that he needed the following:
2 pr. shoes
6 pr. socks
3 pr. slacks
4 T shirts
3 sport shirts
He decided to shop at two stores to see where he could get the best price. Here are the two stores Jim went to:
(figure available in print form)
1. What would it cost him, if he bought the articles at Malleys?_____
2. What would it cost him, if he bought the articles at Alexanders?_____
3. Which would be the best store to buy at?_____
4. How much could he save by buying at this store?_____
5. Which store would you buy at?_____
Remember he is buying more than one of some articles.
We know that budgeting is a planned way of spending our income for the things we need. Below are a list of items that Mrs. Banister needs for the rest of the week. She has $20.00 left in her budget for food. Let’s figure out her bill and see if she has enough money.
butter........$1.79 per lb.
salami........$1.18 a pkg.
mi1k..........$ .89 a qt.
soap powder...$1.49 a box
sardines......$ .79 a can
horseradish...$ .99 a bottle
mustard.......$ .49 a jar
cat food......2 cans for 99¢
lettuce.......$ .87 a head
filet mignon..$3.89 per lb.
soup..........2 cans for 79¢
1 lb. butter......................_____
2 boxes of soap powder............_____
1 bottle of horseradish..........._____
1 head of lettuce................._____
2 bottles of mustard.............._____
2 lbs. of filet mignon............_____
4 qts. of milk...................._____
2 pkgs. of salami................._____
2 cans of sardines................_____
2 cans of soup...................._____
2 cans of cat food................_____
TOTAL BILL _____
1. Will Mrs. Banister have enough money?_____
2. If so, how much will she have left over?_____
1. Savings account
2. Checking account
5. Gross income
6. Net income
7. Spending plan
9. Compound interest
13. Fixed expenses
14. Flexible expenses
16. State income tax
17. Social security
18. Federal income tax
20. Wholesale & retail pricing
Have students look up definitions of words. Use each word in a sentence and write math problems or examples where applicable.