Money and Decision Making For TLE Grade 7

Gradee 7 TLE Money and Decision Making

1. Teens
“If you were given 50 Dirhams
today, what would you do with it?
Would you spend it all on snacks and
games, or save some for something
bigger later?”

2. Teens
lesson one
FINANCIAL LITERACY

3. Teens
Entrepreneurship & Financial Literacy

4. Lesson Objectives
At the end of this lesson, you should be
able to:
1. state the meaning of financial literacy and its
goal for the youth;
2. explain the importance of financial literacy to
the youth, their family, and the community;
3. analyze the value of being financially literate in
handling money every day; and
4. appreciate the value of being financially literate.

5. What is Financial Literacy?
Financial literacy is having
the adequate knowledge,
understanding, skills,
attitude, and behavior
toward the use of money and
its sources, purposes, and
forms.

6. What is Financial Literacy?
With this knowledge, understanding,
and skills, every young person like
you can make sound financial
decisions and learn how to set
personal short-term and long-term
financial goals. In simple terms,
financial literacy is knowing how to
make smart decisions with your
money.

7. The overall goal of financial
literacy is to educate young
people like you on how to
manage your money
effectively and to fully and
safely participate in economic
and financial activities in
your community.

8. Facts about money:
1.people have limited amount of money;
2.cash and coins have corresponding financial values;
3.it plays an important role/s in a culture or a country;
4.people can keep their money at home or in banks;
5.deposited money in the bank can be withdrawn from a
counter or at a cash point;
6.it is a form of asset;
7.it may come from different sources and can be labeled
as an income; and
8.there are different types of income, which include goods,
property, and real estate, that have corresponding
financial value.

9. Facts About Money
1. People have limited
money

10. Facts About Money
1. People have limited money
2. Cash and coins have value

11. Facts About Money
1. People have limited money
2. Cash and coins have value
3. Money is important in
culture and country

12. Facts About Money
1. People have limited money
2. Cash and coins have value
3. Money is important in
culture and country
4. Money can be kept at home
or in banks

13. Facts About Money
1. People have limited money
2. Cash and coins have value
3. Money is important in
culture and country
4. Money can be kept at home
or in banks
5. Deposited money can be
withdrawn

14. Facts About Money
6. Money is an asset

15. Facts About Money
6. Money is an asset
7. Money comes from different
sources

16. Facts About Money
6. Money is an asset
7. Money comes from different
sources
8. Different types of income
exist

17. Knowledge and Understanding in:
1.Payments
2.Borrowing
3.Saving
4.Investing

18. Channels in Acquiring Financial Literacy:
1.School
2.Volunteer work
3.Community Organization
4.Paid work
5.Parents and other family members
6.Peers
7.Growing awareness from money received

19. Activity 1
What Is the Importance
of Financial Literacy to
Me?
How Do I Practice
Financial Literacy in My
Everyday Activities?

20. Activity 1
Form groups with four members. In your TLE
notebook, write a reflection paper entitled "What Is
the Importance of Financial Literacy to Me? How Do
I Practice Financial Literacy in My Everyday
Activities?”
Write two or three paragraphs based on your
understanding of financial literacy and how you can
apply its concept in your daily living.
Share your reflection paper to your group members
and elicit their reaction/comments.

21. Importance of Financial Literacy
Financial literacy is important not only for
young people like you, but it is equally
important to your family, community, and
country. With the advent of digital
technology, people and those in businesses
around the world can now easily
communicate and do financial transactions
among themselves, thus making commerce
and trading easy and convenient to do.

22. Importance of Financial Literacy
1. Instills an awareness on the
role of money in day-to-day living.
Always keep in mind that money is the
medium of exchange and is essential
for you to buy your daily needs or
wants.

23. Importance of Financial Literacy
2. Recognizes the value of money
in meeting one's needs and
wants. When you want to spend your
money for something, think twice or
three times before deciding if what
you spend for is really a need or just a
want. When you let go of your money
in something that is not necessary, it
is money that is gone.

24. Importance of Financial Literacy
3. Gains a respect for money as a
powerful tool to acquire wealth.
You are saving money so you can set
aside a big amount for the future. This
is the wealth that you can use for
attaining your personal
and family goals.

25. Importance of Financial Literacy
4. Learns how to budget money no
matter the amount is. Budgeting
helps in allocating your money for
what you need to spend without
overspending.

26. Importance of Financial Literacy
5. Gains a gradual independence in
making decisions on how to
use money and other monetary
resources. When you use your
knowledge on how to allocate and where
to spend your money every
day, you can develop the skill in using
money wisely. This leads to making your
own decisions on important matters in
life.

27. Importance of Financial Literacy
6. Develops a skill in doing simple
financial transactions on a day-
to-day basis. For instance, when you
buy snacks, you compute for the amount
you will pay for and for the change, if
any. Doing simple computations in any
financial transactions, like buying goods
or paying debts, is a skill that can be
developed when done repeatedly.

28. Importance of Financial Literacy
7. Knows how to access a wide
range of financial products and
services available in the
community. Some of these financial
products or services include depositing
or withdrawing savings or money in the
bank, making a personal loan, paying
debts over-the- counter or online, and
having an insurance for your college
education.

29. Importance of Financial Literacy
8. Instills discipline in handling
money. Financial discipline is about
making money serve your needs and
not allow it to control you. As the
saying goes, "Money is a good servant
but a terrible master."
Therefore, be financially disciplined
and make it a habit to budget
and plan your expenses.

30. Teens
Decision-making in money means
thinking carefully about how we use our
money so we can get the most value,
avoid problems, and reach our goals.

31. the decision-making process
The decision-making process
•Identify the problem
•Gather information and list possible alternatives
•Consider consequences of each alternative
•Select the best course of action
•Evaluate the results
teens – lesson 1 - slide 1-A

32. Factors That Can Influence a Decision
A. Values
•What is important to your family,
others in your culture?
B. Peers
•People you know
•Pressure for positive or negative
behaviors
C. Habits
•You are accustomed to doing it
this way
D. Feelings (love, anger,
frustration, ambivalence, rejection)
•If you do make a certain decision
•If you don’t make a certain decision
E. Family
•Your family’s preference
•Decisions other family members
have made
F. Risks and consequences
•What (or how much) you stand
to win
•What (or how much) you stand
to lose
G. Age
•Minor
•Adult
teens – lesson 1 - slide 1-B

33. Common Decision-Making Strategies
spontaneity
Choosing the first option that comes to mind;
giving little or no consideration to the
consequences of the choice.
compliance
Going along with family, school, work, or peer
expectations.
procrastination
Postponing thought and action until options
are limited.
agonizing
Accumulating so much information that
analyzing the options becomes overwhelming.
intention
Choosing an option that will be both
intellectually and emotionally satisfying.
desire
Choosing the option that might achieve the
best result, regardless of the risk involved.
avoidance
Choosing the option that is most likely to avoid
the worst possible result.
security
Choosing the option that will bring some
success, offend the fewest people, and pose
the least risk.
synthesis
Choosing the option that has a good chance to
succeed and that you like the best.
teens – sesson 1 - slide 1-C

34. Economic Influences on Decision-Making
consumer prices
changes in the buying power of the dollar,
inflation/deflation
consumer spending
demand for goods and services
gross domestic product (GDP)
total value of goods and services produced
within the country
housing starts
the number of new homes being built
interest rates
the cost of borrowing money
money supply
funds available for spending in the economy
stock market index
(such as the Dow Jones averages, Standard &
Poor’s 500) indicate general trends in the
value of U.S. stocks
unemployment
the number of people without employment
who are willing to work
These economic factors may influence personal and financial decisions:
teens – lesson 1 - slide 1-D

35. Risks Associated with Decision-Making
personal risks
factors that may create a less-than-desirable
situation. Personal risk may come in the form
of inconvenience, embarrassment, safety, or
health concerns.
inflation risk
rising prices cause lower buying power. Buying
an item later may mean a higher price.
interest-rate risk
changing interest rates affect your costs (when
borrowing) and your benefits (when saving or
investing).
income risk
changing careers or reduced spending by
consumers can result in a lower income or loss
of one’s employment. Career changes or job
loss can result in a lower income and reduced
buying power.
liquidity risk
certain types of savings (certificates of
deposit) and investments (real estate) may be
difficult to convert to cash quickly.
Risks are associated with every decision. The following are common risks related to
personal and financial decision-making:
teens – lesson 1 - slide 1-E

36. opportunity costs and the time value of money
opportunity cost refers to what a person gives up when a decision is made. This
cost, also called a trade-off, may involve one or more of your resources (time,
money, and effort).
personal opportunity costs may involve time, health, or energy. For example,
time spent on studying usually means lost time for leisure or working. However, this
trade-off may be appropriate since your learning and grades will likely improve.
financial opportunity costs involve monetary values of decisions made. For
example, the purchase of an item with money from your savings means you will no
longer obtain interest on those funds.
time value of money can be used to measure financial opportunity costs using
interest calculations.
For example: spending $1,000 from a savings account paying 4 percent a year means an
opportunity cost of $40 in lost interest.
Calculation: $1,000 x .04 (4 percent) x 1 year = $40
Over 10 years, that $40 a year (saved at 4 percent) would have a value of over $480 when
taking into account compound interest.
teens – lesson 1 - slide 1-F

37. Lesson 2

40. Review of Past
Lesson

41. Entrepreneurship  the
process of creating a new
venture by identifying
opportunities, assembling
resources, and taking on
financial risks to develop and
launch a business or service.

42. Financial literacy is having
the adequate knowledge,
understanding, skills,
attitude, and behavior
toward the use of money and
its sources, purposes, and
forms.

43. SWOT
Strengths,
Weaknesses,
Opportunities,
Threats

44. Understanding the Value of Money

45. Objectives
At the end of the lesson, the students should be
able to:
1. define money and identify different ways money is
utilized in daily life,
2. show respect for money as a resource by recognizing
the need to spend wisely and avoid waste, and
3. demonstrate real-life scenarios of utilizing money
(budgeting, buying essentials, saving).

46. What is money?
Money is used as a medium
of exchange in a country or a
culture. It comes in different
forms.

47. Currency
Generally, what circulates
as a medium of exchange in
a country is called a
currency.

48. Currency
There is dirhams for United
Arab Emirates.

49. Currency
Can you name
currencies of
other countries?

50. US Dollar
$

51. Philippine Peso
₱

52. Euro
€

53. Japanese Yen
¥

54. Korean Won
₩

55. Foreign Exchange
There are foreign exchange
outlets in every country
where you can exchange
your peso to dollar, yen,
yuan, or pound, depending
on the kind of currency that
you need.

56. Activity 1
Bring a sample of a foreign currency.
Present it in the class by describing its
size, form, color, texture, value, and its
other characteristics. Cite its exchange
value with other currencies.

57. How Did the Use of Money Start?
Money is one of
the most important
inventions of
humankind.

58. Barter System
The barter system
is
 an economic
system where
people trade goods
and services
directly for other
goods and
services, rather
than using money.
 

59. Primitive Era
In primitive societies,
money was used only
for certain ceremonial
and public transfers,
such as tribute, bride
price, and blood money,
not for everyday trade.

60. Use of Shells
As economies developed, money was used more
for ordinary trades and tended to consist of
metals, although certain shells were also used
as money for a long time in Africa, South Asia,
and Australia.

61. Coins
The Lydian kingdom, located in what
is now western Turkey, was the first
civilization to mint coins, around 650
BC.

62. Paper Money
Paper currency was also invented in
China in the eleventh century.

63. Banking System
Ancient
Babylon had
a highly
developed
monetary
and banking
system.

64. Digital Money
Money evolved from a system of concrete
objects, such as ounces of precious metal, like
gold or silver, to more abstract units, such as
checking deposits.

65. Utilizing Money

66. Utilizing Money
How do we use money?

67. Utilizing Money
The use of money has three functions:
1. it acts as a medium of exchange;
2. it serves as a standard
of value so that economic values can be
measured; and
3. it serves as a way to store one's
wealth.

68. Guided Discussions:
•Why is money important in
society?
•How did the monetary system
evolve from barter to digital
money?
•In what different ways do we
use money today?

69. Group Activity

70. Group Activity
Standards in Doing Group Activity
Give thoughtful feedback.
Respect others and their thoughts.
On task all the time.
Use soft voices.
Participate actively.
Stay with your group.

71. Group Activity
Group 1:
Create a simple chart
showing how money is
earned, saved, and spent.

72. Group Activity
Group 2:
Role-play a budgeting
scenario (e.g., student gets
AED100 allowance and decides
how to use it).

73. Group Activity
Group 3:
Illustrate a timeline of the
history of money (barter,
coins, paper, digital) using
tableaux.

74. Valuing
“Money is valuable. It must be
earned honestly, spent wisely,
saved responsibly, and
appreciated as a tool to meet our
needs and improve life.”

75. Quiz
Answer the following:
1.What is money?
2.Give one importance of money in our life.
3.Cite one way money was used during ancient
times.
4.List three modern uses of money.
5.How can you show respect for the value of
money in your daily life?

76. Generalization
•What is money and why is it
important?
•How did money develop
through history?
•How can we use money wisely
in our daily lives?

77. Homework
Assignment (To be submitted next Friday)
1. Interview your parents or guardians and
ask:
–How do they budget money at home?
–What advice can they give you about using
money wisely?
2. Write your answers in your notebook.

78. Quote of the Day
“Money often
costs too
much.”
-Ralph Waldo Emerson

79. Quote of the Day
Thank you!