Exchanging Money

We do a lot of traveling in other countries and we try to use the local currency or our credit card. As we walk around the new town, it is interesting to hear people very confused about trying to figure out the cost of items in their own currency.

I think this would be fun to do with students. You never know when they might be in this situation.

First I would have students decide what country they would want to visit. Then find out what the local currency is. Once they know this, find out how much local currency is equivalent to a US dollar. For example, there are 125 Icelandic Krona to $1.

Then I would have them find out the price of some items they would like to buy in the country they are visiting. If the price is in US dollars, I would have them multiply that by the exchange rate. For example, a $5 magnet would be 625 Icelandic Krona.

If they were told, the magnet was 625 Icelandic Krona, how would they figure out how much it would cost in US dollars? They would have to divide 625 by 125 which would be $5.

I would give students index cards and they would glue pictures of items on each card. Then they would write the country and the price of the item in that country’s money. Then students could exchange cards and figure out how much it would cost in US dollars. After everyone has finished their card, they would share with the class how they figured out the amount. They would have to tell what country, the exchange rate, and how they calculated the amount.

I think students would enjoy this activity because it is something they might use in real life.

How would you teach students how to do this? Please share.

Photo by Jason Leung on Unsplash

The Money Tree

It seems like every day the government is giving out money. They gave away stimulus checks and now they want to give money for gas every month. Sure, getting money from the government sounds great!

But wait…where is this money coming from? Is it from the Money Tree?

I remember growing up and my parents always telling me that money doesn’t grow on trees. Yet, it seems like someone has forgotten to remind the government of this fact.

I’m not heartless that I don’t want to help the needy. I give to charity. I knit hats and prayer shawls and give money to my church. I try to help those who need help.

But everyone needs to stop and ask themselves where this money is going to come from!

People need to realize that this money is going to come from our taxes, mostly property taxes. Most of the money is going to help those who don’t own property. By doing this, the government is distributing my hard-earned money however they want to do this.

This kind of action hurt those on fixed incomes such as the elderly. Most people on fixed incomes will find their money no longer stretches the way it did. Suddenly those people that use to be able to be independent and pay their own bills will become those who need help. Now we have a larger group of people who will become needy.

How does this help our economy? Does the government think that making more people poor, it will make our country better? Are we rewarding those who don’t work and expect a handout while punishing those that work hard? This doesn’t make any sense.

This reminds me of this version of Aesop’s fable of the Squirrel and the Grasshopper. The squirrel prepares for the winter by laying up supplies while the grasshopper does nothing. In the winter, the grasshopper dies because he didn’t work hard to prepare for the winter. You don’t see Mother Nature taking the squirrel’s supplies to keep the grasshopper alive. Read the rest of this selection to see what happens in the alternate version of the same fable!

I pray that people will wake up and see this. The only way I see that we fight back is by contacting our legislators and urging them to stop giving our money away. I hope that people will fight back by voting against those who think giving away money is the way to go.

Stop thinking there is a Money Tree somewhere!

Photo by micheile || visual stories on Unsplash

Interest vs. Penalty

As the holiday season swirls around me, I watch many people using their credit cards to buy Christmas gifts. Many of them can afford these gifts and many can’t but they insist on buying gifts for all of their family members. I’ve heard some of them say how they have maxed out their credit cards! Even though people want to buy everything for their family, there isn’t the need to go into debt for this. This doesn’t mean that they love the person more or less. It just means they have more stuff! I heard one lady say that she pays a lot in interest!

I see people rushing to buy things on sale and since they can’t afford it, they put it all on their credit cards. When the bill comes, they pay the minimum amount each month and it may take months or years to pay off their bill. The interest they pay on the amount they owe is outrageous and they are not really saving money by buying things on sale. In fact, they may be paying a lot more than if they would have waited and bought it at regular price when they could afford it.

This made me think about how we teach our students about credit cards and economics. I don’t know why they call it paying “interest!” Interest to me is associated with savings and checking accounts or other accounts where I earn money. Interest has a positive connotation that means I get more money into my account.

When I use my credit card and I don’t pay it off each month, I am charged interest. Instead this should be called a penalty. I lose money this way. When I show my students that by using a charge card, I am actually borrowing money and when I borrow, I may have to pay the initial amount back plus more if I don’t pay it all back by a certain time. If I buy something for $20 on credit, I may end up paying $22 back for it if I use my credit card. This means I’m losing money! To me, this is not interest but a penalty.

Maybe if we stop labeling the loss on credit cards as interest and call it what it is – a penalty, maybe people will not be so readily willing to use credit cards for more than they can afford.

Maybe our economy wouldn’t be in the fix it is in if people would only buy what they could afford.

Well, maybe our country wouldn’t be in the fix it is in if the country didn’t spend more than it could afford. 

Do you use a credit card? Do you max it out or pay it off each month? Please share.

My First Paycheck - Now What?

In Preparing students for real-world financial success, Lisa Nielsen states,

“Students often begin pursuing employment as early as high school, but they are not taught best practices when it comes to managing their money.”

Many people I talk to don’t realize this until we are discussing it. Then we talk about how we learned or when we were taught. Many were taught by their parents but now with so many children living in single parent homes or being brought up by grandparents, I think this real life skill is falling by the way side. I learned a hard lesson about credit cards when I graduated from college and maxed out my new credit card. No one taught me how credit cards worked and my parents never had one so they couldn’t teach me. I was thrilled that I was able to get something that my parents didn’t. Luckily, when I got married, my husband had more money sense than I did and got my finances on track.

Here are some skills that I think we need to teach our students. These can be incorporated in lessons for reading, math, social studies, social skills, and/or career preparation.

1. Bank Accounts - how to open up checking and savings accounts, what bank fees are involved, how to balance the accounts, withdrawing and depositing money, penalties

2. Banks/Credit Unions/Rent to Own/Check Cashing Companies - Look at the different types and compare

3. Loans - loan applications, fees, final payoffs, interest payments

4. Health insurance - benefits, costs, comparison shopping

5. Car insurance - benefits, costs, comparison shopping

6. Credit cards - reviewing statements, annual fees, interest charges, other fees

7. Pensions/Retirement - how does the system work

8. Taxes - state, federal, sales

9. Buying a Car - comparison shopping, taxes, maintenance costs, other costs

10. Renting an Apartment/House - comparison shopping, fees, utilities, deposit, maintenance

11. Buying a House - costs, fees, different types of loans, interest, final payoff

12. Budgeting - How to set up a budget, look at expenses and income

These are just some of the things I wish someone had taught me so I didn’t have to learn the hard way. I believe by learning these things, students will be more successful in life. What other financial life skills do you think students need to learn before they leave school? Please share.

Image: 'Dollar in Piggy Bank'
http://www.flickr.com/photos/59937401@N07/5857027687
Found on flickrcc.net

Field Trip to Disney

We recently returned to Disney World and while in line for It’s A Small World, we met a group of 8th graders who were there on a field trip. One boy behind us wanted to talk to a group of his friends in front of us so we offered to let them get ahead of us. But they told us that they just wanted to talk and the guy would get back to his place in line and he did. I was really impressed with how well behaved all of them were and so I started a conversation with them. I hate that I didn’t get their school name or I would email their principal because I was so impressed with them. Not once did I hear any inappropriate language or behavior.

They told me that the whole 8th grade from a NC school came to Disney in 7 buses! (All I could think of was the adults with them and “Bless their hearts!”) I did ask how many bottles of aspirin was brought by the chaperones and all of the kids laughed.

It was interesting to hear that they had “school” for 2 hours each morning and they had a list of “required attractions” that they had to go on. One boy showed me his handout that listed the items and they had to choose one from one group etc. It’s a Small World was actually a requirement. I was impressed how the school made this out to be a fun but educational trip.

As I went to the different attractions, I started thinking about how they could be used for lessons and was thrilled at how many of them could be used as an introduction or enhancement to a lesson. We went to one called the Sum of All Thrills where you can design something and then experience it. My husband and I designed a roller coaster with a loop and corkscrew turns. You had to use a ruler to determine the height and then turn a knob to change the speed. Then you test it on the screen to see if it will work and make adjustments as necessary. When it is done, you get in this simulator and actually experience it virtually. The seats you sit in are on a mechanical arm and you move up, down, around, and even upside down. The cover comes over your head down to your waste and you are watching a screen as if you are really on a roller coaster. It was wonderful!

Of course Epcot is just educational everywhere you turn. The World Showcase has exhibits from different countries so it seems like a permanent World’s Fair. Innovations shows different inventions and learning activities. One was “The Great Piggy Bank Adventure” that talks about saving and investing your money. You actually take this ceramic piggy bank around to the different stations and enter it into the exhibit. At the end the machine weighs your piggy bank to see how much you saved. I think this would be a great learning activity for students!

Animal Kingdom was like a giant zoo with lots of real animals from around the world. There were lots of information about the different animals as well as staff stationed throughout the park to help explain anything and answer questions.

There are tons of learning experiences throughout each park.

I know that in times of bad economies that it is hard to justify field trips but I truly believe they can be so educational. If I couldn’t bring students some places, there are virtual field trips online that would be the next best thing.

What field trips have you taken your students on that have been successful as learning experiences? Please share.

Original photos by Pat Hensley

10 Tips for Surviving Economy Woes

As we explore the tourist areas of Kissimmee, FL, we are amazed at how dismal things look here. We were just here two years ago and what a difference it seems like. Many restaurants are shut down. Even hotels are boarded up. It looks like it is dying. This is usually the busy time when we come here and there are tons of traffic and long lines everywhere. When we go into restaurants, there are usually only two to three tables occupied. The servers tell us that business is terrible and they are barely making any money. We walked around Old Town and it was more like a ghost town. Years ago, I remember it as a booming hot spot. When we have gone hunting for antique stores, many of them have closed down because most people do not have the luxury of spending money on their “wants” and have to concentrate on their “needs.”

This is a good time to talk to students about the economy. Many of them have family members who have lost their jobs and looking for work. It would be a good time to study the era of the The Great Depression. Discuss how people survived during those times. Discuss what we have learned from history.

Here are some things that I learned that I would share with my students. They are not in any order of importance because I feel all of them are important.

1. Don’t waste things. Recycle and reuse as much as possible.
2. Grow your own vegetables. Learn how to preserve them for later use.
3. Learn a skill that can be traded for things that you may need.
4. Be frugal in your spending.
5. Lower your thermostats in the winter and raise them in the summer. Conserve on energy and lower your power bills.
6. Clip coupons.
7. Look for sales. Ask yourself if you really need to buy something.
8. Make a list of errands you need to run. Prioritize and do them all at one time rather than running back and forth. This will save on gas.
9. Use the internet or call to check on prices. Compare prices at different stores for big items before you buy.
10. Save your money and buy when you have money. Avoid buying on credit or rent to own.

What would you tell your students? How do you save money? Please share!

Image: 'Classic photo of a distress sale --+Great+Depression+$100+will+buy+this+car'
http://www.flickr.com/photos/45449060@N00/3109349739