Knowing the Value of Your Dollar
Instructional Objectives: Students will acquire a more in-depth knowledge of the acquisitive power of the dollar and how it decreases over time.Time
Required: Open
Advance
Preparation: Arrangements should be made with a local bank. Teachers should
confirm with the bank manager one to two days in advance. Go to the
http://phil.frb.org/education/fedtoday.html
Fed Today Educational Resources page
and order the free 13 minute
video which explores the structure of the Fed as well as monetary policy,
banking supervision, financial services, and more. You can also download the
six lesson plans that go along with the video at the same site. Download the
webpages beforehand just in case internet access is down at your school.
Materials
/ Resources Required: The Fed today video, a computer attached to a
projector, television and vcr.
Vocabulary,
Concepts, Focus Questions (and responses), Generalizations, Key Points:
consumer price index(CPI), inflation, inflation rate, devaluation, transfer
of funds, recession, automated clearinghouse(ACH). What is the Federal
Reserve System and why was it created? What is the relationship between
money supply & demand? Approximately how much money is in circulation
today? What is settlement? (All answers are on the video). Higher Order
Question: What is ACH similar to? Answer: Debits and Credits on a checkbook)
Ask students a particular good such as a skateboard or a bookbag has
increased at a rate higher than the CPI(From the time they were born to
today). Students need to setup their spreadsheet with the formula to
determine the CPI, investigate the price of the article in the year they
were born and the price that article has today.
Procedures:
As a background, teacher should introduce each concept first. Students
should take the tour at the Federal Reserve Bank Page at http://stls.frb.org/publications/pleng/welcome.html
This is an enticing and interactive
site that explains how the federal reserve system works.
Activities: Students may go to the Federal Reserve Webpage of Minneapolis webpage http://woodrow.mpls.frb.fed.us/research/data/us/calc/, students should try some of the exercises . Students can find out in the year they were born, the cost of certain articles, for example: potato chips, a can of soda, a pair of jeans and a video game. Students should open an Excel sheet and setup the formula on a sheet and try to guess the answers.
Ask
students if they knew that the government owes money and we can find out to
the penny how much we owe today by going to
http://savingsbonds.gov/opd/opdpenny.htm
Ask students to find out how much money was owed on the day they were
born and what is the difference to today.
Extensions or Follow-up: Have students go to http://stls.frb.org/education/econed3.html Federal Reserve Bank of St. Louis Money Challenge Quiz Page and take it. If you have enough computers to have the entire class online, you may use this quiz as an evaluation tool.
Click on the bag of money to return to the Main Menu
Last modified 6/28/02 by Anthony Salcedo
TGBTG