Preparing for the Lesson
Some of your students have probably had little, if any, exposure to the use of coupons or discounts when making retail purchases while others could be considered experienced consumers. They are too young to have checking accounts or debit cards on their own, though some may have an account with an adult. In this lesson, students assume an account pre-loaded with money and use coupons and other discounts to make wise purchases.
A good number of today’s youth will have experience with debit cards, gift cards, and maybe even credit cards. Following the trend in today's economy, assume that all transactions during this lesson occur electronically. If your state financial literacy goals require that students be able to write checks, you can provide students with checks to make their purchases. You can also allow students to write checks as an extension to this lesson, but be prepared that the activity will require more class time; in fact, it may be necessary to spend as much as an entire class period teaching students how to write checks.
Prepare an inventory list of items that students can purchase ahead of time. The list should include pencils, desks, chairs, calculators, student whiteboards, paper, along with any other item you deem appropriate for this activity and your student population. Given the limited time to complete this activity, it is suggested you limit the number of items for sale to fewer than 10. The following is a suggested list of items and prices:
- Adjustable student desk $79
- Student chairs $34
- Student calculator $10
- Pencil and paper $1
- Student whiteboard $5
- Whiteboard marker $1
If you do not know the prices of certain items, check with the person in your school responsible for supply purchases beforehand. Spend some time doing this research to make the activity as authentic as possible. The total retail value of the items listed above is $130 before application of coupons and sales tax. If you are going to use the suggested prices above, then give students a starting balance of $130; that way, students will not get into an overdraft situation. This lesson is based on a sales tax of 5%, but you may want to change it to your local tax rate.
In order to make this lesson meaningful and one that students will remember for years to come, you will need to prepare your classroom. Consider moving all desks, chairs, and other items in the classroom that you want students to purchase to one side of the room. On the board write a sign indicating that there is a one-day-only sale on classroom supplies and that students will need to purchase their desks, chairs, calculators, etc. before they can have access to them. The inventory/price list should be clearly posted or provided as a handout for students. This activity works best if students come to class empty-handed, so it is a good idea to tell them the day before this lesson that they are to bring nothing to class. Be prepared for a little shock and a few "No ways."
The Lesson
As students walk in the door ask them to store all personal belonging in a corner of the room, and then hand them a purchase register listing the items available and the Invest in Your Education activity sheet.
Invite students to take a seat on the floor, so that you can explain the day's lesson. Once they are seated, explain to them that they have to invest in their educations and today they are going to have to purchase their classrom supplies. There are 3 coupons included with the Invest in Your Education activity sheet that they must use as part of this activity. The choice of which coupon to apply to which item is up to them but coupons may not be combined. Students may only purchase one of each item, as quantities are limited. Students can choose to purchase their items in any given order. It is surprising to see how many students choose to purchase a desk or chair before the calculator but in the end it is their choice.
Students will need to calculate the discounted price plus tax accurately before they can take possession of their purchase. To facilitate the checking of student calculations you may want to solicit the help of a teacher’s aid if available, one or more parents, a couple of your higher level students, or even a guest from a local retail business. If you have students who complete the activity quickly, enlist them to help struggling students or to aid in the verification of student calculations. Once all students have completed their purchases consider bringing the class together for a group discussion of key questions.
If time or classroom help is in short supply, you may want to consider completing this lesson over two class periods. During the first class students can make their purchases and document their calculations. You can then collect student purchase logs to check for accuracy before the next class period or to return to students so they can be peer checked before the group discussion of key questions.
