ED

305 Calvin College Lesson Planning Form

Names Anika Slauer and Evan Kroon
Big Idea: Building a Better Business
Thread/Crossover: Economics, Math
Grade: 4th

I. Objectives
What is the main focus of this lesson? In this lesson, students will understand the benefits and costs of buying on credit.

How does this lesson tie in to your units Big Idea? Our big idea is focusing on the basics of business. In this lesson the students will
learn about why people buy on credit, and how buying on credit can benefit both the company and the customers.

What are your objectives for this lesson? (As many as needed.) Indicate connections to applicable national or state standards.
Include any themes or major concepts from the thread (themes of geography, Core Principles of Economics, etc)

1. Students will be able to define credit, interest, and circular flow.
4 E1.0.2 Describe some characteristics of a market economy.
2. Students will be able to list the costs and benefits or using a credit system.
4 E1.0.3 Describe how positive and negative incentives influence behavior in a market economy.
4 E1.0.4 Explain how price affects decisions about purchasing goods and services
3. Students will explore the idea of circular flow in relation to banks loaning out deposited money.
4 E1.0.7 Describe the exchange of goods and services and the role of money (circular flow model).
4. Students will follow the process of calculating interest on a loan.
Math Crossover
5. Students will present their business proposals to the class.

II. Before you start
Prerequisite knowledge and skills.

Assessment
(formative and summative)

In the previous lessons the students have learned about a number of business and economic
concepts. With this information they have been creating business proposals that they will
present today.

Formative: Students will be prompted to ask and answer questions throughout reading the
textbook such as what will happen if the customer loses his job and cant pay his loan? What
will happen if the customer pays more money towards their loan than their monthly
payment? What do you think banks do with the money that you put in your bank accounts?

Summative: The students will work in their assigned business groups to determine if their
companies will be selling products that require credit purchases. Then at the end of the class
period the groups will present their business proposals and the students will vote on whose
business will be the most successful.

Our Michigan Adventure textbooks

Picture of new car with the cost, interest, and payment period information written out
Principal and Interest Calculator Excel Sheet
Posters for business proposals
Materials-what materials (books,
handouts, etc) do you need for this Business Proposal Journals
Pencils
lesson and do you have them?
Markers
Whiteboard
Expo Markers
Do you need to set up your
classroom in any special way for
this lesson? If so, describe it.

n/a

III. The Plan
Time

2 min

Parts
Motivation
(Opening/
Introduction/
Engagement)

The description of (script for) the lesson, wherein you describe teacher activities and student activities
(indicate in parenthesis where you are addressing standards and themes)
Yesterday we talked a little bit about supply and demand. Can anyone remind me what happens to the
price of an item when its in high demand, but there is a limited supply? (The price goes up)

Today were going to talk about items that are so expensive that most people cannot afford to pay for
them in cash. So they end up borrowing money from the bankthis is called buying on credit, and there
are both pros and cons to using credit.

20
min

Development

Have students take out their Our Michigan Adventure! textbooks and sit on the carpet together.










































20
min

Read pages 207-208 substituting Harry with a students name from the class.
Highlight points such as:
-Credit allows for people to buy items that they need now and yet they can pay later.
-People must pay interest (an extra fee)
-It takes months to pay off a loan (you make monthly payments)
-What happens if the borrower loses their job or misses payments?
-What if the bank doesnt think that the borrower will be able to pay the loan back on the front end?

Model the concept of buying on credit using the same student you chose above.
Pull up a picture of a 2013 Acura ILX.

[Students name] decided that they wanted to buy this brand new car. So we are going to figure out how
much it would cost him!

Walk through the following numbers:
-Cost: $25,000
-Interest: 4%
-Years to pay off: 4 years
-Monthly payment:
-Total Cost:

What do you notice about the cost of the car before and after having to pay interest? (The cost went up)

So what are some pros and cons of buying on credit?
(Write students answers on the board in a chart)
Prompt them to say:
PROS
-Buy now and pay over time
-Helps you buy expensive items
-You can use the item while paying for it

CONS
-Must pay interest
-The total cost is more
-Can lose the item and money paid if loan isnt paid back
-Can tempt to overspend

Allow for students to ask questions and engage in discussion if the occasion arises.

Now we have to think about whether or not our business proposals companies need to use a credit
system. So I would like you to get together with your groups for the remainder of this class period and
talk about whether or not your customers will need to use credit, and if so, what item(s) would be bought
on credit. (write this in their journals)

You will also have time to create a poster and presentation for your companies so that you can present
your business proposals at the end of class today! This poster should include your company name, slogan,
logo, products, and target population. You must also discuss each of the topics that we went over this
week and how they relate to your company.

20
min

Have students present their business proposals to the class.

Tomorrow we will begin creating our very own boat businesses. So come prepared with creative ideas as
we put all of our business concepts into practice!

Closure

Explain how this lesson supports your Big Idea. What is the takeaway?

The students are modeling basic business principles as they create their own business proposals, and they are learning a basic
principal of businessbuying on credit.