Financial Literacy Course for 12-Year-Olds

## Financial Literacy Course for 12-Year-Olds ### Course Overview This course is designed to introduce 12-year-olds to the basics of financial literacy. It will cover key concepts such as money management, saving, budgeting, and the importance of making informed financial decisions. The course aims to provide practical knowledge that students can use in their daily lives and prepare them for future financial responsibilities. ### Course Objectives By the end of this course, students will be able to: 1. Understand the concept of money and its uses. 2. Develop basic budgeting skills. 3. Recognize the importance of saving. 4. Make informed decisions about spending. 5. Understand the basics of earning and managing money. ### Course Outline #### Lesson 1: Introduction to Money - **Objective:** Understand what money is and its role in society. - **Topics:** - What is money? - Different forms of money (coins, bills, digital currency). - The history of money. - How money is used in daily life. #### Lesson 2: Earning Money - **Objective:** Learn about different ways to earn money. - **Topics:** - Allowances. - Chores and small jobs. - Gifts and bonuses. - Basic concepts of employment and entrepreneurship. #### Lesson 3: Budgeting Basics - **Objective:** Understand the concept of budgeting and why it is important. - **Topics:** - What is a budget? - Income vs. expenses. - Creating a simple budget. - Tracking spending. #### Lesson 4: The Importance of Saving - **Objective:** Learn why saving money is important and how to do it. - **Topics:** - Reasons to save money. - Setting savings goals. - Different ways to save (piggy bank, savings account). - The power of compound interest. #### Lesson 5: Smart Spending - **Objective:** Learn how to make smart spending decisions. - **Topics:** - Needs vs. wants. - Making a shopping list. - Comparing prices and looking for deals. - Avoiding impulse purchases. #### Lesson 6: Understanding Banks and Credit - **Objective:** Learn about banks, credit, and basic financial services. - **Topics:** - What do banks do? - Different types of bank accounts (savings, checking). - Basics of credit and borrowing. - Safe and responsible use of credit. #### Lesson 7: Introduction to Investing - **Objective:** Understand the basics of investing and why it matters. - **Topics:** - What is investing? - Different types of investments (stocks, bonds, mutual funds). - The concept of risk and reward. - Long-term benefits of investing. #### Lesson 8: Financial Responsibility and Ethics - **Objective:** Learn about financial responsibility and ethical behavior with money. - **Topics:** - Being responsible with money. - The impact of financial decisions on others. - Charitable giving and helping others. - Avoiding scams and fraud. ### Activities and Assignments - **Activity:** Create a personal budget for a week using a simple worksheet. - **Activity:** Set a savings goal and create a plan to reach it. - **Activity:** Role-play a shopping scenario to practice making smart spending decisions. - **Assignment:** Research a basic investment and present findings to the class. - **Assignment:** Write a short essay on the importance of financial responsibility. ### Resources - **Books:** - "The Everything Kids' Money Book" by Brette McWhorter Sember. - "Money Matters for Teens" by Larry Burkett and Todd Temple. - **Websites:** - [Practical Money Skills](http://www.practicalmoneyskills.com/) - [Jump$tart Coalition for Personal Financial Literacy](http://www.jumpstart.org/) - **Games and Apps:** - "PiggyBot" (allowance and savings app). - "Savings Spree" (money management game). ### Evaluation - **Quizzes:** Short quizzes at the end of each lesson to test understanding. - **Projects:** Group projects on creating a budget, planning a savings strategy, and presenting on financial topics. - **Participation:** Active participation in class discussions and activities. ### Conclusion This course aims to equip 12-year-olds with the foundational knowledge and skills they need to make smart financial decisions now and in the future. Through engaging lessons, hands-on activities, and practical applications, students will gain confidence in their ability to manage money wisely.