Lesson 1: You and Your Money

When learning a new subject, students often ask

“Why do I need to know this?”

“How does this information relate to anything in my life?”

Your students will never question the relevance of this course. Money and their ability to manage money impacts their everyday lives, and will become even more important as they get older. Financial literacy means understanding how money works, how money is earned and managed, and wealth built. Building a secure financial future includes understanding the differences between income and wealth and why wealth is the key to financial security.

Unit Theme

Earning an Income

Lesson Topics

Defining financial literacy
Introduction to course themes
Income vs. wealth
Wealthbuilding as a second job
Wealth and financial security
Income and class division in America
(opt.) Gender pay inequality debate

Lesson Objectives

Lesson objectives aligned to NSFL.

Objective	NSFL Gr. 8	NSFL Gr. 12
Compare income and wealth	I-3, I-4, I-6	+*
List key features of U.S. socioeconomic classes	+	+
Explain the significance of the FPL	I-10	I-3
Summarize the relationship of wealth to financial security	I-7; +	+
(Opt.) Argue for or against Gender Pay Gap reforms	+	+
(Tech Opt.) Use SweetSearch to research Gender Pay Gap	+	+

* Exceeds NFSL

Teach the Teacher Podcast

Listen to this lesson’s podcast episode:

Download transcript (PDF)

What Does That Mean? e-flashcards

Lesson One has 18 personal finance and money management vocabulary terms.

Blue collar worker

An occupational classification of workers who perform physical labor jobs such as plumbing and construction.

Bureau of Labor Statistics

“BLS”; a division of the U.S. Department of Labor that collects and analyzes data on labor economics.

Federal Poverty Level (FPL)

An income level below which people and families are eligible for certain U.S. government assistance programs and benefits.

Financial literacy

The ability to understand how money works, how money is earned and managed, and wealth built.

Household income

The combined incomes of all people over the age of 15 sharing a particular household.

Income

Money received on a regular basis for providing a good or service, or earned through investments.

Low income

A measure of income ranging from $16,000 to $35,000, depending on number of household members.

Lower middle class

A socioeconomic term used to describe people who have some postsecondary education without advanced degrees and work in lower level, white collar professions; a subdivision of the middle class.

Middle class

A socioeconomic term used to describe people who earn an annual income of $35,000 to $200,000.

Money management

The process of earning, budgeting, saving, investing, spending, or otherwise managing personal finances.

Median income

The dollar amount that divides income distribution in the U.S. into two equal groups; half of the population having income above the median and half below.

Net worth

The total value of a person’s assets minus their debts; a measurement of an individual’s wealth.

Socioeconomics

The study of the relationship between economics and social behavior.

Social mobility

The ability to move up in socioeconomic class and increase your wealth for such things as home ownership, a car, an education, and other quality of life items.

Upper middle class

A socioeconomic term used to describe individuals who are well-educated, earn between $100,000 and $200,000 and work at high-level, white-collar positions; a subdivision of the middle class.

Wealth

Ownership of valuable assets including cash, real estate, investments, and material possessions.

Wealth building

Strategies and practices which increase net worth.

White collar worker

Occupational classification of workers who perform professional or managerial jobs, usually in an office setting.

Classroom Instructional Slides

Click here to link to classroom slides to help maintain students’ focus and attention during instruction.

View PDF

Links to Supplemental Resources

Pew Research Center Income Calculator
Investopedia.com