PE 6 Lesson 1 Money, Money, Money, Money … Last updated: 12/23/2004
LESSON OBJECTIVE
After completing this lesson, students should be able to:
-improve summarizing skills
-reinforce scanning for specific information
-reinforce ability to follow and give instructions
-recognize common banking and money terms
-speak accurately using numerical and monetary terms
WARM-UP
1. What is money? How is it used?
2. How much money do you have right now in your wallet or bag?
3. What do you think is the average amount of money most college students carry?
4. Do you receive an allowance from your parents? Is your allowance more or less than your friends' allowance?
5. Do you have an ATM card or credit card? Do you buy things with cash or do you use credit?
Money and Banking
It is difficult to imagine a world without money; every country has its own, and the history of money goes back to the earliest written records. Ideas about money are pretty much the same – you must have it in order to survive. From weekly allowances to monthly paychecks, everyone needs some kind of income. People work at jobs, trading their labor for the money they need to pay for the goods and services that make their lives comfortable. Many kinds of goods are traded in huge quantities all over the world, and businesses exchange currencies through international banking systems. Does money really make the world go around? In the modern world we live in today, it appears so.
The History of Money
Thousands of years ago humans had very few outside needs. Each family could depend on itself for survival. Later, the way of life changed. The population grew and more food was needed, so family groups moved from place to place. Traveling groups of people met and began to trade with one another. Then, man began to live in settlements or small towns, so land could be farmed and animals raised for food. Since people couldn't use all that they grew or made, they began to barter or trade the surplus. Farms produced enough food, so people had time to learn new skills and specialize in their work. There were many kinds of craftsmen and artists. Sometimes, a worker would trade a job for goods. Goods and supplies not available locally were brought from far away. To make trading easier certain objects were used as money, such as shells, tea leaves, tobacco, feathers, and salt.
Metal Used for Money
About 5,000 years ago a civilization in the Middle East began to melt silver into small bars to use as money. Other countries adopted the idea, and soon coins were made from gold, copper and bronze. Some coins were shaped like shells and animals; others were ring-like with holes in the middle.
Paper Money Invented
In 1295 Marco Polo returned to Italy from China with a new idea--money made of paper. The Chinese had been using paper money for hundreds of years! The Chinese did not have a large enough supply of metals to make all the coins they needed, so they invented both paper and a printing process to create their money. Each paper note was guaranteed by the government to have a certain value.
Banks Used to Safeguard Money
The first modern public bank in the world opened in Spain in the fifteenth century. The word bank comes from the word banco which means bench or the counter where money was counted.
Banks make it easy to open basic accounts like checking and savings. You need only to provide: 1) money to deposit, 2) identification such as a driver's license or passport, 3) a signature card which identifies your handwriting for future reference. Most people think of banks as the safest place to keep their money because the governments guarantee against losses. Bank accounts also earn interest on your money and provide other services like investment programs, loans, and automated teller machines (ATMs).
Money Takes a New Form—Plastic
A credit card is a small piece of plastic that shows you are a customer in good standing with a credit company. They are really handy to use if you don't have enough cash. However, if you can't pay the total amount at the end of the month you will be charged a high interest rate – some times as much as 20%.
Growing Your Money
Money doesn't grow on trees so it's wise to save and invest your bucks for retirement. You can buy stocks, bonds, and mutual funds. The important thing is to diversify your investments. That way you won't lose all of it if the investment is not particularly a good one.
by Ginny Budd
VOCABULARY
nouns
account allowance ATM bond buck coin
credit card currency investment loan signature stock
verbs
barter diversify survive
WORD BANK
bronze checking account copper mutual funds savings account
EXERCISES
A. Vocabulary
Complete the sentences using the vocabulary.
1. Mutual funds and ___________________ are different investment options.
2. It’s wise to save and ________________ your bucks for retirement.
3. I don’t have any money. Can you lend me a few _____________________ till payday?
4. If I’m going to pay with plastic I’ll use a ___________________.
5. In the past, people would __________________ instead of paying with money.
6. Can I get coins from the _____________________?
7. You should _____________________ your investments to reduce the risk of losing your money.
8. My parents give me an ____________________________ every month but it’s never enough.
2. Write the vocabulary word that matches the definition
1. ____________________ = Give someone money to use. They will re-pay the money later.
2. ____________________ = You write your name on a document.
3. ____________________ = The money a country uses.
4. ____________________ = Money made from melted metals.
B. Comprehension questions
1. What kinds of objects were first used for trading?
2. Which metals were used for money? What did the coins look like?
3. Which country invented paper money? Why?
4. Where did the first modern bank open? When did it open?
5. What does "money doesn't grow on trees" mean?
6. If I say that I'm going to pay for something with plastic, what do I mean?
7. What do the letters ATM stand for?
8. What does the author recommend you do with your money?
9. What do you think the expression “Money doesn’t grow on trees” means?
C. How do you …?
1. Read the following directions.
How to use an ATM
Automated teller machines (ATMs) are open 24 hours a day throughout most cities in shops, grocery stores, airports, banks and on the street. Most banks are part of an international network so you can use ATM cards around the world. This makes banking very convenient whether you are making a withdrawal (taking money out of your bank account) or a deposit (putting money in your account). An ATM is a computer. There are different designs but most operate in similar ways.
1. Take your ATM card out of your wallet or purse.
2. Put it in the machine.
3. Key in your personal identification number (PIN)
4. Push the button to select which language to use.
5. Select the transaction you want, withdrawal or deposit.
6. For a withdrawal, select the amount of money you want.
7. Wait while the machine operates.
8. Take your money out of the machine with your receipt and ATM card.
9. Spend as you please; it's your money.
2. In the directions above, underline the action verbs that show a request or command.
3. Write your own directions for:
--using a vending machine to buy candy or soda
--using a telephone card
--starting and riding a motorcycle
--giving directions to your home
--explaining how to use the MRT or bus in Taiwan
D. Summarizing
Recall the practice you had in East Meets West Book 5 for writing a summary, and review the steps below. Write a summary for this article on money.
1. Collect the key ideas and phrases.
Example: money, history, countries, must have, trading, traveling, different objects, coins, paper, banking, counting, safe, interest, plastic credit cards, invest
2. Reorganize or categorize these key ideas and phrases.
Example: What is the topic: money
Who is affected: everyone around the world
Why is it important: everyone must have it in order to survive, people travel, can’t produce everything they need
What is it: trading something you have for goods and services you want
What types there are: different objects: shells, coins, paper, plastic
What can we do with it: count it, put it in banks to keep it safe, earn interest, invest it
3. Write sentences which clearly state the key points.
Example: Money is something everyone around the world is affected by.
Everyone must have money in order to survive.
Money is something we earn by our labor.
Money is something we can trade for goods and services we want.
4. Determine the best order for the sentences. Check for and delete repeated ideas.
Example: Money is mentioned several times. Think about if and how several sentences can be made into one:
Money is something we earn by our labor.
Money is something we can trade for goods and services we want.
>>> Money is something we earn by our labor that we can trade for goods and services we want.
Generally, a summary should be 20% (or less) of the length of the original article.
There should be no copying of original sentences.
There should be no phrases stating your own opinion.
E. What's the country's currency?
Match the country with the name of its currency.
Japan Peso
Thailand Rupee
Mexico Mark
Mainland China Yen
Germany Baht
Italy Pound
Canada Franc
France Lira
India Dollar
United Kingdom Yuan
_ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _
F. Budgeting your money
1. Creating a spending record
You must know how you spend your money before you can make a budget. Keep track of your spending for one week to see what your expenses are and how you spend your money. Keep track of (write down) when, where and what you spend your money on for one week.
SPENDING RECORD
DAY
AMOUNT
ITEM
2. Evaluating your spending
Look at your spending for the week and answer the questions.
1. What was the single most expensive thing?
2. What did you spend the most amount of money on over 7 days? the least amount of money on?
transportation entertainment school supplies clothes & accessories
toiletries food games/CDs ???
3. Look at your spending. Do you see any areas where you could reduce your expenses? Where? How? Example: I could save money on food by eating breakfast at home (instead of buying it at school everyday.)
4. What are your fixed expenses? (something that you must pay every month) examples: rent, cell phone, insurance, …??
5. What are your total monthly expenses? $_______________________
3. Reviewing your income
1. Do you work?
2. Do you receive an allowance? How much money do you receive each month?
3. Do you have a credit card?
4. What's your total monthly income? $_______________________
5. Do you spend more money than you receive?
4. Compare your information with a partner
1. What does your partner spend the most money on?
2. Does your partner have any budget problems? What advice can you give to him or her?
3. What other ways can you think of to help your partner reduce monthly expenses?
Some expressions for giving advice:
You should …. You could …. Why don't you …?
How about …? Have you ever tried …? If I were you, I’d ….
COMMUNICATION
A. Bartering
Even today many people in the world barter or exchanges goods and services instead of using money to get the things they need or want.
1. What do you have to trade with a friend for something they have that you might want?
2. What special skills or abilities do you have that would be useful to others? (ex: play piano, computer skills, cooking, dog training…)
Now, barter with a classmate and exchange some objects or skills.
B. The Power of money: myth and magic
Money is considered a source of good fortune for most people. Rich people seem to be blessed with plenty of good fortune because they can buy anything they want. Many cultures believe money also has magical and spiritual power. Some believe it can bring good luck or even ward off evil spirits. The pictures and words on money add "power" to it.
Imagine you were asked to design a new coin. What magical powers would your money suggest--love, prosperity, health or protection? Draw your idea and explain your design to a partner. What shape, size, material, color, pictures, or security features are included on your coin?
C. The Price Is Right: the great American game show
Cut pictures of things to buy out of the newspaper or magazines. Find out the price for each item. In groups of four, each student will present his/her pictures of things to buy. The other classmates guess the price. The student that comes closest to the actual price wins the item. Listen carefully to your classmates' bids. You can bid only one dollar different from another bid. The goal is to bid closet to the correct price of the item. The student who best guesses the most prices right is the winner.
D. Role play
You need to borrow some money. How would you ask different people to loan you money? Role play different situations with a partner. Here are some suggestions to get you started.
1. Ask your brother or sister for some money.
Hey, sis, how about giving me a few bucks until my next allowance.
2. Ask your parents for an advance on your allowance.
Mom and Dad, I really need my allowance for next week because.......
3. Ask a friend for some money.
Hey, loan me some money, will you?
4. Ask your boss for a loan.
Mr. Smith, I was wondering if you would please give me a loan .....
5. Ask a loan officer at a bank.
How do you do? I would like to apply for a loan.
E. Spending patterns presentation
Each group of students will interview other students about their spending and present a class spending report. The class spending report will include information about spending habits, problem areas and solutions.
Groups: You must develop a questionnaire your group can use to interview students about their spending and then present a “class spending report”. Each interview must be audio taped. Your interview questionnaire should include questions related to the information from Exercise F. Budgeting your money. You may also make up your own questions. The presentation to the class should include information about spending habits, problem areas and solutions. You may include any information you think is interesting or valuable. Don’t talk about any individual student’s spending – only talk about the spending of students as a group.
For the presentation: Be prepared. Speak freely (don’t read!) Use visual aids to present your information if needed. Make it interesting for your audience. Everyone must contribute! Interviews must be done in English. One the day of the presentation, you must give the teacher: notes or the written report that you will use for your presentation, a photocopy of your interview questionnaire, and cassette tapes of your interviews.
LISTENING
A. Using my money
1. Listen to the students talk about their allowance. Answer the following questions.
a. What do the man and woman agree on about their allowance?
b. What has the man been using to buy things since he is short of cash this month?
c. What does the woman warn him about?
d. Does the woman want a loan?
2. Listen to the man and woman talk about investing money. Answer the following questions.
a. How is the woman investing her money?
b. What percent (%) interest is she guaranteed?
c. Why does she know about investments?
B. Figuring a budget--Thinking about a plan for income and expenses
1. Listen to the speaker talk about his finances and fill in the blanks.
Expenses Vocabulary
1. Rent _________________ penthouse
yuppie
broke
2. Food __________________ in debt
evicted
3. Bus __________________ cut back
cell phone
4. Car Maintenance __________________
5. Gasoline ___________________
6. Car Insurance ___________________
7. Utilities ___________________ Income ____________
8. Clothing ___________________ Expenses __________
9. Personal care ___________________ Getting out of Debt _______ or Savings
10. Telephone ___________________
11. Gifts ___________________
12. Entertainment ___________________
Total ________________________
2. Discussion: Help Jake out. What else could he do to reduce his monthly expenses?
3. How do you spend your money? Do you know?
TIPS for Speaking
Build on Things People Have Said Before You
One of the best ways to be a good speaker is to show that you are a good listener. If you are having a conversation, show that you have understood what previous persons have said before giving your own opinions. Take a moment to summarize or paraphrase what others have said before adding your own thoughts or ideas.
Exercise: Notice what these people say about each topic, then briefly paraphrase their ideas before giving your own opinion.
Example: Previous Speaker: I don’t have a credit card because I don’t have much money, and I’m afraid of running up a high bill.
You: So you don’t want a credit card because you’re afraid of spending more money than you can afford. I only use my credit card when I know for sure I have money in the bank to pay the bill, so that doesn’t scare me.
1. Person A: I think that ATM cards are great. I can get money whenever I want..
You: ______________________________________________.
2. Person A: Paying for things by installment is so expensive. I’d rather save my money first and then buy what I want. .
You: ______________________________________________.
PE6-1 Transcript
Transcript for Listening A
1.
Woman: My allowance is so small I can't survive.
Man: Yeah, mine is too. This month I've been using my credit card in order to buy some extra things I need.
Woman: You'd better be careful. If you can't pay the entire amount at the end of the month, you'll have to pay a high interest rate.
Man: Yeah, 21%, I know. Anyway, I have a few extra dollars if you want a loan.
Woman: Thanks, but I've got enough coins to get lunch and the bus home.
2.
Woman: I've started to invest some money in stocks and bonds.
Man: Really?
Woman: Yeah, the bonds are guaranteed 7% interest, so that's good. However, the stock market is expected to do well, so I decided to diversify and buy some stock in a telecommunications company.
Man: That sounds great. How do you know about investments?
Woman: Because I'm a MCU accounting student!
B.
Well, let me introduce myself. My name is Jake and I'm a yuppie. I'm a wild and crazy guy who likes to have fun. Hey, I love to go to bars and dance and party all night. The problem is I'm broke and in debt. I gotta act like an adult. I mean I am 30 years old now and I've got to be more responsible. So, here's my plan. I'll figure out a monthly budget, so I can get out of debt and start to save a little money.
Ok, first rent ....I spend $950 a month. It's a lot, but let me tell you where I live ...in a penthouse. It's gorgeous and the girls like it, too. I won't move unless things get really bad. Like hey, I'm evicted. HAH, No, really I can handle it, I'll cut back in other ways.
Next, transportation. I've got a hot car that eats a lot of gas. Right now it costs me $200 to buy gasoline for the month. But, I'll start taking the bus to work and that will save me at least $100 a month in gas. The bus pass is only $15 a month. With driving my car less the maintenance should be less expensive, too. Let's say......$75. My insurance stays the same at $110 a month.
Next, food. Well, I like to eat out a lot. If I brought my own lunch to work I could really save the bucks. And, if I only go out for dinner on a date that would help, too. O.K., I think maybe I could live on $250 a month for food. That will be a lot of peanut butter and jelly sandwiches!!!
O.K., telephone expenses. Well, I only use my cell phone for personal use so I could dispense with that. I could stop making so many long distance calls to friends in other cities ...HA.. countries that would save a lot. Let's say $40 a month.
The utilities are included in the rent, so I can write a zero for that.
Clothing....I've got plenty. I do like to buy a few things every now and then...maybe $25 for now until I need a new suit or something.
O.K. I like to get my hair cut every month, dry clean the clothes for work, and buy all those products that make me the man I am.......$50 bucks....O.K. $35 got to cut back.
Gifts...flowers for the girls, birthdays, holidays.....this is difficult. I'll say ....what......$60. I just hope that two friends don't have birthdays in the same month.
And entertainment...that one I'll leave at $300. Maybe later I can cut back on that expense, but now this guy just needs some fun with all that I've given up!
Ok add it up. The total is $1,960.00
What I only make $1,800.00 a month. No wonder I'm in debt. What else can I do to spend less? Help me....what can I do?
