Financial Literacy

Topic: Financial Literacy - How income is earned and taxed from working and how the government uses this money for goods and services

Objectives & Outcomes

• Students will understand how income is earned and taxed from working and how the government uses this money for goods and services.

Materials

• Income tax forms (if available)
• Pencils
• Calculators (if available)

Warm-up

• Begin the lesson by writing the following words on the board: Income, Tax, Government. Ask the students to give their own definitions for each word. Write their responses on the board.

Direct Instruction

• Explain to the students that income is money that people earn by working or by owning something that can be sold, such as a house or a car.
• Explain that the government taxes income to pay for the goods and services it provides, such as schools, roads, and police officers.
• Show the students a copy of a tax form and explain the different parts of the form, including the income and deductions sections.
• Explain the importance of filing a tax return and paying taxes on time.

Guided Practice

Independent Practice

Process: Have students work in pairs to create a financial literacy brochure. Each brochure should include information about how income is earned, how taxes are paid, and how the government uses this money for goods and services. Students can use handouts and materials from the lesson to create their brochures.

Assessment: Have students present their brochures to the class. Ask the class to evaluate each brochure and provide feedback to the students.

Closure

Ask the students to reflect on what they have learned about financial literacy. Ask them to share one thing they learned about how income is earned, how taxes are paid, and how the government uses this money for goods and services.

Assessment

Observe students during the guided and independent practice activities to assess their understanding of financial literacy concepts. Use a rubric to evaluate their project-based activities and presentations.