Home/Mathematics/Financial Literacy: Making Change and Financial Decisions/Lesson plan
Public · Sign in
MT
← Back to topic
LESSON PLAN

Financial Literacy: Making Change and Financial Decisions

A
Apothem Team
Grade 4 · Number
LESSON AT A GLANCE
Warm-up
5 min
Explore
15 min
Formalize
10 min
Practice
12 min
Exit ticket
3 min

Warm-up

You buy three items: 3.49,3.49, 2.75, and 5.20.Total?(11.44.)Youpaywith5.20. Total? (11.44.) You pay with 15.00. How much change? Count up: 11.44to11.44 to 11.50 = 0.06.To0.06. To 12.00 = 0.50.To0.50. To 15.00 = 3.00.Totalchange:3.00. Total change: 3.56.

Explore

Classroom store: students make 4 purchases totalling between 15and15 and 95, pay with a round amount (e.g., 20,20, 50, 100),andcalculatechangeusingcountingup.Then:planasimpleweeklybudgetallocating100), and calculate change using counting up. Then: plan a simple weekly budget allocating 20 of allowance to spending, saving, and giving with specific dollar amounts.

Formalize

Equitable trade investigation: create a trade table where items have assigned values (canoe paddle = 30,basket=30, basket = 15, dried fish pack = $10). Students complete equitable trades: what combination of items equals 2 canoe paddles? (4 baskets, or 6 fish packs, or 2 baskets + 3 fish packs.) This is proportional reasoning in a trade context.

Financial Literacy: Making Change and Financial Decisions

Financial decision scenario: you earn 50doingyardwork.Youwanttobuyabookfor50 doing yard work. You want to buy a book for 22.50, save toward a bike, and donate 5toaschoolfundraiser.Howmuchcanyousave?5 to a school fundraiser. How much can you save? 50 - 22.50−22.50 - 5 = 22.50.Youcansave22.50. You can save 22.50 this week. How many weeks to save 180forthebike?180 for the bike? 180 / $22.50 = 8 weeks.

Practice

Students complete 5 change calculations using counting up, create a simple budget for 40ofweeklyincome,andsolve2equitabletradeproblems.Exitticket:calculatechangefrom40 of weekly income, and solve 2 equitable trade problems. Exit ticket: calculate change from 20 for a purchase of $13.67.

Exit ticket

Students complete 5 change calculations using counting up, create a simple budget for 40ofweeklyincome,andsolve2equitabletradeproblems.Exitticket:calculatechangefrom40 of weekly income, and solve 2 equitable trade problems. Exit ticket: calculate change from 20 for a purchase of $13.67.

TIP  The counting-up strategy is how cashiers make change in their heads. It converts subtraction into addition, which most students find easier. Practice it as a mental math skill, not a written subtraction.
WORKED EXAMPLES
Example 1 — Change from $20 at the book fair: count up, then verify

The purchase: a novel at 12.65,paidwitha12.65, paid with a 20 bill.

Step 1: Count UP from the price, placing denominations: 12.65+10¢→12.65 + 10¢ → 12.75; + 25¢ → 13.00;+13.00; + 2 → 15.00;+15.00; + 5 → $20.00.

Step 2: Total the change laid out: 0.10 + 0.25 + 2 + 5 = $7.35.

Step 3: Verify by subtraction with aligned decimals: 20.00 − 12.65: pennies — 0 take 5, borrow → 10−5=5; dimes — 9−6=3; dollars — 19−12 = 7 → $7.35 ✓.

Step 4: Reality-check the answer's size: the book cost a bit more than half of 20,sochangeshouldbeabitlessthanhalf—20, so change should be a bit less than half — 7.35 fits; 17.35or17.35 or 3.35 would not. The three-second size-check catches the borrow-slips that both methods occasionally suffer.

Drill: change from 10for10 for 4.35, from 50for50 for 32.80, from 5for5 for 0.95 — count up aloud, subtract to confirm, size-check every one.

Example 2 — The birthday budget: $30, a list, and trade-offs

The mission: plan a small party with exactly 30.Pricelist:pizza30. Price list: pizza 11.50, juice 4.25,cake4.25, cake 9.75, balloons 3.50,stickers3.50, stickers 2.75, a game $8.00.

Step 1: Wish-list everything first, then total: 11.50 + 4.25 + 9.75 + 3.50 + 2.75 + 8.00 = 39.75.Overby39.75. Over by 9.75 — welcome to budgeting: wanting exceeds having, always.

Step 2: Make cuts WITH reasons: drop the game (−8.00)→8.00) → 31.75. Still over. Swap cake for a cheaper one at 8.00(−8.00 (−1.75) → $30.00 exactly.

Step 3: Audit the final plan: 11.50 + 4.25 + 8.00 + 3.50 + 2.75 = $30.00 ✓, and defend each survivor: "food beats game because…"

Step 4: The safety-margin conversation: landing at exactly 30.00leaveszeroroomforapricesurprise.Realplannersleaveabuffer—re−cutto 30.00 leaves zero room for a price surprise. Real planners leave a buffer — re-cut to ~28 and name the cushion as a CHOICE.

The learning is the cutting, not the adding: budgets are decisions wearing arithmetic.

Example 3 — Better deal or better fit? The two pack sizes

The shelf: markers come as a 4-pack for 6.00ora10−packfor6.00 or a 10-pack for 12.50.

Step 1: Compute unit prices: 4-pack → 6.00 ÷ 4 = 1.50permarker.10−pack→12.50÷10=1.50 per marker. 10-pack → 12.50 ÷ 10 = 1.25 per marker. The big pack is cheaper PER MARKER — 25¢ saved on each.

Step 2: The plot twist: you NEED exactly 4 markers. Buying 10 costs 12.50forthejobthat12.50 for the job that 6.00 does — you "saved" per unit and spent $6.50 more in total, with 6 markers destined for the junk drawer.

Step 3: The two-question checkout: (1) which is the better unit price? (2) will I USE the quantity? A bargain on things you won't use is spending, not saving.

Step 4: When bulk truly wins: the class needs 20 markers → two 10-packs at 25.00versusfive4−packsat25.00 versus five 4-packs at 30.00. Same need, $5.00 saved — bulk pays exactly when the need matches the quantity.

Exit: invent one shelf scenario where the small pack is the smart buy and one where the big pack is — same products, different NEEDS.

MATERIALS
•Play money (bills and coins to $100)
•Classroom store with decimal prices
•Budget planning sheets
•Equitable trade scenario cards
WATCH FOR
!Students may subtract from left to right without considering decimal place alignment. Counting up avoids this entirely.
!Students may not understand that giving is a valid financial category. Discuss: community contributions, charitable giving, and sharing resources as normal parts of financial planning.