End by asking the students: Were you surprised by any of the expenses or how many there are? Talk About It | Four Reasons Money Matters Introduce this discussion by summarizing the following information in your own words: Let’s take a deeper look at some things young people need to know about money: 1.Teens need to develop realistic expectations about money. Have you heard that ‘Money doesn’t grow on trees’? When people don’t earn their money and aren’t responsible for paying for their own expenses, it would be unrealistic to expect them to know what things cost. Typically, even when young people earn their own money they are more likely to spend it on day-to- day items and entertainment. The average American young person spends 50% of their money on clothing and shoes (girls spend about 67% and guys spend about 34%) with the remainder of their money going to food, video games, sports equipment, cell phones, coffee, entertainment, music, technology, and cars.2 Usually when teens save, it is for a short-term goal like something they want to buy within the year. When you are on your own you will be more successful if you can think more long-term. THInk AbOUT IT: Lead your students as they complete pages 3-4 of the Journal. Discussion questions: • What would you guess most teens spend their money on? • What would happen if someone found a tree that could produce money? • How much would such a tree be worth? • In the future, how will you need money? • What are realistic ways to get money for your future needs and wants? 2.Teens need to find the best people from whom to learn about money. Many people feel financial skills should be learned in the home, even though many parents don’t feel comfortable or competent to teach their children those skills. Other people say that personal financial literacy needs to be taught in school.3 Either way, it is important for teens to learn about money and how to manage it before they leave home and are out on their own. THInk AbOUT IT: Lead your students as they complete pages 5-6 of the Journal. Discussion questions: • Why might some parents object to young people learning financial skills at school? • Who would you choose to learn about money from? Why? • What spending, saving, and earning habits have you observed from adults in your life? How will you try to copy or avoid doing the same things? • Look over some of the findings about parents and money.4 What would make it difficult or easy to talk to your parents or other adults about money? • What have you already heard or observed about using credit cards? 8-9 10-12 LESSON 1 | WHY DOES MONEY MATTER? | 3 COPYRIGHT © 2011 BY THE DIBBLE INSTITUTE