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 their own checking accounts or debit cards, but 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 has experience with debit cards, gift cards, and maybe even credit cards. Following the current trend, assume that all transactions during this lesson are made 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. The list should include pencils, desks, chairs, calculators, student whiteboards, paper, and any other items you deem appropriate for this activity and your student population. Given the limited time to complete this activity, consider limiting 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 purchasing supplies 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 applying coupons and sales tax. If you decide to use the suggested prices above, give students a starting balance of $130. That way, they 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, prepare your classroom in advance. Consider moving all desks, chairs, and other items 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. Post the inventory/price list or provide it to students as a handout. 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 enter the classroom, ask them to store all personal belonging in a corner of the room. Then hand them a purchase register listing the items available and the Invest in Your Education activity sheet.
Invite students to sit on the floor. Once they are seated, explain that they have to invest in their educations and today they are going to purchase their classroom supplies. There are 3 coupons included with the Invest in Your Education activity sheet that they must use as part of this activity. The must choose which coupon to apply to which item, 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 order. (It's surprising how many students choose to purchase a desk or chair before the calculator, but in the end it's their decision.)
Students need to calculate the discounted price plus sales tax accurately before they can take possession of their purchase. To facilitate checking student calculations, consider involving a teacher’s aide, one or more parents, or even a guest from a local retail business. If some students who complete the activity quickly, they could help struggling students or help to verify of student calculations. Once all students have completed their purchases, bring the class together for a group discussion of key questions. Some suggested questions can be found in the Questions for Students section below.
If time or classroom help is in short supply, you may want to complete this lesson over two class periods. In the first class, have students make their purchases and document their calculations. Then collect students' purchase logs and check their accuracy before the second class period. Alternatively, distribute the logs at the beginning of the second class so they can be peer checked. Then have a group discussion of key questions.
