Concept:    Car Loan or Lease

In April participants decdie to buy or lease a Knabian car. Which is really the better financial choice? Also they decide whether or not to buy car insurance.

Objectives:
Learners will:

1. Evaluate monthly income/expense statement
2. Understand the cost of owning a car beyond initial expenditure
3. Investigate using savings resources for an expenditure
4. Understand the concept of leasing
5. Evaluate purchase/lease options
6. Understand the ramifications of a major purchase (insurance, liability, default)
7. Prepare for misfortunes (insurance)

Knowledge and Ideas:

1. Comparison shopping
2. Income and expenses
3. Borrowing money (loan)
4. Equity (resale value)/depreciation
5. Insurance

Skills and Capabilities:

1. Reading an income/expense statement
2. Budgeting
3. Prediction and estimation
4. Locating and comparing information that leads to a financial decision
5. Determining the cost of borrowing money/leasing

Values:

1. Wants vs. needs
2. Awareness of expense
3. Financial planning
4. Commitment to repayment
5. Insurance

National Standards: Mathematics

1. Uses basic estimation techniques effectively (e.g., overestimate, underestimate, range of estimations). (Benchmark, procedural; Curriculum and Evaluation Standards for School Mathematics, National Council of Teachers of Mathematics, 1989, 94; Mathematics Content Specs, 8, National Assessment of Educational Progress, 6; Mathematics Assessment Framework, National Assessment of Educational Progress, 26.)
2. Solves real-world problems involving percents. (Benchmark, procedural; Curriculum and Evaluation Standards for School Mathematics, National Council of Teachers of Mathematics, 1989, 87; Benchmarks for Science Literacy, American Association for the Advancement of Science, 1993, 291; Mathematics Content Specs, 8, National Assessment of Educational Progress, 8; Mathematics Assessment Framework, National Assessment of Educational Progress, 27.)
3. Selects and uses appropriate type of estimation (e.g., overestimate, underestimate, range of estimate) to solve real-world problems. (Benchmark, procedural;Curriculum and Evaluation Standards for School Mathematics, National Council of Teachers of Mathematics, 1989, 94; Mathematics Content Specs, 8, National Assessment of Educational Progress, 6-7; Mathematics Assessment Framework, National Assessment of Educational Progress, 26.)
4. Interpolates or extrapolates from data presented in various forms (Benchmark, procedural; Curriculum and Evaluation Standards for School Mathematics, National Council of Teachers of Mathematics, 1989, 105-107; Mathematics Content Specs, 8, National Assessment of Educational Progress, 21; Mathematics Assessment Framework, National Assessment of Educational Progress, 36.)
5. Constructs, reads, and interprets data in charts, tables, and graphs. (Benchmark, procedural; Curriculum and Evaluation Standards for School Mathematics, National Council of Teachers of Mathematics, 1989, 105-107; Mathematics Content Specs, 8, National Assessment of Educational Progress, 22; Mathematics Assessment Framework, National Assessment of Educational Progress, 37.)

National Standards: Economics

1. Knows that all decisions involve opportunity costs and that effective economic decision making involves weighing the costs and benefits associated with alternative choices.
   (Benchmark, declarative; Framework for Teaching Basic Economic Concepts with Scope and Sequence Guidelines, K-12, Saunders & Gilliard, 1995, 92; Colorado Council on Economic Education, 4; Economics: What and When, JCEE, 17; Expectations of Excellence: Curriculum Standards for Social Studies, NCSS, 1994, 41.)
2. Knows that banks play a key role in providing currency and other forms of money to consumers, and that banks serve as intermediaries between savers and borrowers.
   (Benchmark, declarative; Framework for Teaching Basic Economic Concepts with Scope and Sequence Guidelines, K-12, Saunders & Gilliard, 1995, 79; Colorado Council on Economic Education, 6; Economics: What and When, JCEE, 24; Expectations of Excellence: Curriculum Standards for Social Studies, NCSS, 1994, 41.)

National Standards: Life Skills

1. Uses sound buying principles for purchasing goods and services.
   (Benchmark, procedural; Workplace Basics: The Essential Skills Employers Want, Carnevale, Gainer & Meltzer, 1990, 281-283.)
2. Makes an accurate appraisal of basic insurance needs.
   (Benchmark, procedural; Workplace Basics: The Essential Skills Employers Want, Carnevale, Gainer & Meltzer, 1990, 281-283.)
3. Understands the basic process of buying a car.
   (Benchmark, declarative; Workplace Basics: The Essential Skills Employers Want, Carnevale, Gainer & Meltzer, 1990, 281-283.)
4. Makes effective decisions about consumer products based on important criteria, including external features, performance, durability, cost, and personal tradeoffs.
   (Benchmark, procedural; Benchmarks for Science Literacy, Project 2061, American Association for the Advancement of Science, 1993, 299.)
5. Represents a problem accurately in terms of resources, constraints, and objectives.
   (Benchmark, procedural; Curriculum and Evaluation Standards for School Mathematics, National Council of Teachers of Mathematics, 1989, 23; Workplace Basics: The Essential Skills Employers Want, Carnevale, Gainer & Meltzer, 1990, 182; Workplace Basics: The Essential Skills Employers Want, Carnevale, Gainer & Meltzer, 1990, 329.)
6. Secures factual information needed to evaluate alternatives. (Benchmark, procedural; Expectations of Excellence: Curriculum Standards for Social Studies, NCSS, 1994, 149.)

Wisconsin's Model Academic Standards: Language Arts, E. Media and Technology.
Students in Wisconsin will use media and technology critically and creatively to obtain, organize, prepare and share information; to influence and persuade; and to entertain and be entertained.

Learners will:

1. Use computers to acquire, organize, analyze. and communicate information (E.8.1).
2. Collect information from various on-line sources, such as web pages, news groups ands listservs (E.8.1).

Wisconsin's Model Academic Standards: Mathematics

Learners will:

1. Use reasoning abilities to
   • evaluate information
   • perceive patterns
   • identify relationships
   • formulate questions for further exploration
   • evaluate strategies
   • justify statements
   • test reasonableness of results
   • defend work (A.8.1.)
2. Communicate logical arguments clearly to show why a result makes sense (A.8.2).
3. Read and understand mathematical texts and other instructional materials and recognize mathematical ideas as they appear in other contexts (A.8.6).
4. Use reason and logic to evaluate information (A.12.1).
5. Communicate logical arguments and clearly show
   • why a result does or does not make sense
   • why the reasoning is or is not valid (A.12.2).
6. Analyze nonroutine problems and arrive at solutions by various means, including models and simulations, often starting with provisional conjectures and progressing, directly or indirectly, to a solution, justification, or counter-example (A.12.3)
7. Read and understand
   • mathematical texts and other instructional materials
   • writing about mathematics (e.g., articles in journals)
   • mathematical ideas as they are used in other contexts (A.12.6).
8. Perform and explain operations on rational numbers (add, subtract, multiply, divide) (B.8.2).
9. Apply proportional thinking in a variety of problem situations that include, but are not limited to
   • ratios and proportions (e.g., rates, scale drawings, similarity)
   • percents, including those greater than 100 and less than one (e.g., discounts, rate of increase or decrease, sales tax) (B.8.5).
10. In problem-solving situations, select and use appropriate computational procedures with rational numbers such as
    • calculating mentally
    • estimating
    • using technology (e.g., scientific calculators, spreadsheets) (B.8.7).
11. Compare real numbers using
    • order relations (>, <) and transitivity
    • arithmetic differences
    • ratios, proportions, percents, rates of change (B.12.2)
12. Perform and explain operations on real numbers (add, subtract, multiply, divide) (B.12.3).
13. Create and critically evaluate numerical arguments presented in a variety of classroom and real-world situations (e.g., political, economic, scientific, social) (B.12.5).
14. Routinely assess the acceptable limits of error when
    • evaluating strategies
    • testing the reasonableness of results
    • using technology to carry out computations (B.12.6).
15. Determine measurements indirectly using estimation (D.8.4) (D.12.3).
16. Work with data in the context of real-world situations by
    • formulating questions that lead to data collection and analysis
    • using technology to generate displays, summary statistics and presentations (E.8.1).
17. Use the results of data analysis to
    • make predictions
    • develop convincing arguments
    • draw conclusions (E.8.4)
18. Determine the likelihood of occurrence of simple events by
    • using a variety of strategies to identify possible outcomes (e.g., lists, tables, tree diagrams)
    • conducting an experiment
    • designing and conducting simulations
19. Work with data in the context of real-world situations by
    • formulating hypotheses that lead to collection and analysis of one- and two-variable data
    • using technology to generate displays, summary statistics, and presentations (E.12.1).

Wisconsin's Model Academic Standards: Social Studies, D. Economics: Production, Exchange and Consumption.

Learners will:

1. Explain the operations of common financial instruments and financial institutions (D.12.9).
2. Describe and explain the role of money, banking, and credit in every day life (D.4.1).
3. Describe and explain how money makes it easier to trade, borrow, save, invest, and compare the value of goods and services (D.8.1)

Illinois Learning Standards: State Goals 6-10: Mathematics

Learners will:

1. Solve practical computation problems involving whole numbers, integers and rational numbers (6.B.3a).
2. Select and use appropriate arithmetic operations in practical situations including calculating wages after taxes, developing a budget and balancing a checkbook (6.B.4).
3. Select computational procedures and solve problems with whole numbers, fractions, decimals, percents and proportions (6.C.3a).
4. Show evidence that computational results using whole numbers, fractions, decimals, percents and proportions are correct and/or that estimates are reasonable (6.C.3b).
5. Solve problems involving recipes or mixtures, financial calculations and geometric similarity using ratios, proportions and percents (6.D.4).
6. Solve problems involving loans, mortgages and other practical applications involving geometric patterns of growth (6.D.5).
7. Apply formulas in a wide variety of theoretical and practical real-world measurement applications involving perimeter, area, volume, angle, time, temperature, mass, speed, distance, density and monetary values (7.A.4b).
8. Apply the properties of numbers and operations including inverses in algebraic settings derived from economics, business, and the sciences (8.C.3).
9. Construct, read and interpret tables, graphs (including circle graphs) and charts to organize and represent data (10.A.3a).

Illinois Learning Standards: State Goal 15 U. S. Economic Systems

Learners will:

1. Explain the costs and benefits of making consumer purchases through differing means (e.g., credit, cash) (15.B.4a).
2. Analyze how inflation and interest rates affect consumer purchasing power (15.B.5b).

Minnesota--The Profile of Learning: Preparatory Standards (High School Level)

Mathematics
Learners will:

1. Use properties of mathematics to justify reasoning in a logical argument.
2. Translate between real-world situations and mathematical models using:
   • graphs
   • data tables and/or spread sheets
   • verbal descriptions.

Personal and Family Resources Management
Simulations should require students to manipulate unexpected factors which complicate real-life financial management.

Learners will:

1. Apply the fundamentals of personal/family resource management through informed decision-making.
2. Know personal finance terminology.
3. Know the use of banking services.
4. Understand insurance options (e.g., life, health, auto).
5. Create plans for major purchases.
6. Evaluate personal financial services (e.g., checking accounts, savings accounts) and cash/credit options.
7. Conduct financial analysis using mathematical techniques including cost analysis.
8. Analyze a household budget.
9. Understand sound buying principles (e.g. comparison shopping).

Minnesota--The Profile of Learning: Preparatory Standards (Middle School Level)

Mathematics
Learners will:

1. Use number concepts, relationships and computational procedures to communicate, solve problems and evaluate results.
2. Select appropriate methods to estimate or compute.
3. Apply proportional reasoning to solve a variety of problems using rates, ratios, proportions and percents.
4. In problem situations connect verbal, symbolic and graphical representations, identify constraints, propose and justify solutions.
5. Use properties of mathematics to informally justify reasoning in a logical argument.

Managing Resources: Technology Applications
Learners will:

1. Access and evaluate information from electronic sources.

Managing Resources: Informed Consumerism
Learners will:

1. Understand the impact of purchases in the areas of household, business, community and environment.
2. Use information to compare and contrast potential purchases.
3. Evaluate the impact of the total purchase on the total household budget.
4. Compare wants, needs and available resources.

Managing Resources: Personal Resources
Learners will:

1. Effectively manage personal resources to meet a goal or solve a problem.

Tools:

1. Budget planning (revisited)
2. Should I borrow or use savings
3. Car lease vs. buying

Financial Products:

1. Loans
2. Leases