2MoneyStudents will have an understanding of how money has evolved – the historyStudents will have a knowledge of other countries currencies and understand that each country has their own currencyStudents will have understanding of the money of NZ
3Do Now – 3 minsStudents in groups of 4 list as many terms as they can for money
4Do Now – ANSWERSDough, Cash, Bills, Bucks, Dosh, Moola, Smackeroos, Bread, Stash, Loot, Wads, Lucre, Clams, Quids, Greenbacks etc…Highlight that money is something that we hear and talk about a lot, and so it is important to understand how it works so we can make it work for us, rather than against us.
5Money is something that we hear and talk about a lot, and so it is important to understand how it works so we can make it work for us, rather than against us.
7In the old days people lived in small family groups and were self-sufficient. What they produced (by hunting and gathering) they consumed themselves
8When people began to live in small settlements, they began to specialise (produce only products they were good at making) and traded for what they did not produce.
9Trading goods for other goods is known as BARTER.
10Because of problems with barter, people began to introduce the first forms of money as a medium of exchange. Common items used were shells, beads, precious metals and even salt.
11But to barter effectively you need to have a DOUBLE COINCIDENCE OF WANTS. Eg: a person who wants to trade something must find a person to trade with who has what they want and wants what they have. This is time very time consuming!
12The form of money that began to dominate ancient societies were precious metals, such as gold and silver. These had real value, were long lasting and could be broken down into smaller amounts.
13Early forms of money A 640 BC one-third stater coin from Lydia. Lydia no longer exists and is now part of TurkeyA 640 BC one-third stater coin from Lydia.
14Metals were scarce, but large amounts were heavy Metals were scarce, but large amounts were heavy. Instead of carrying around this type of money, people began to deposit their coins with goldsmiths (which turned into banks) and used IOUs (paper notes) which could be swapped for coins at other goldsmiths.
15QUESTION: Which country issued the first PAPER NOTE?
16The first paper money was issued by the Chinese Ming Government in The notes were called “Great Ming Precious Notes”.
17DO NOW: What is the currency of the following countries (In Groups of 4) CanadaAustraliaRussiaEnglandFranceSouth AfricaJapanFinlandHong KongChinaRussia - RubleSth Africa - RandSamoa - Tala
18DO NOW: What is the currency of the following countries ANSWERS Canada – Canadian DollarAustralia – Australian DollarRussia – The RubleEngland – British PoundFrance – The EuroSouth Africa – The RandJapan – The YenFinland – The EuroHong Kong – The Hong Kong DollarChina – The Renmenbi or YuanRussia - RubleSth Africa - RandSamoa - Tala
19In the 21st century there are new ways of accessing bank accounts EFTPOS, phone and internet banking.Electronic Funds Transfer at Point of SaleQUICK QUIZ QUESTION – What does EFTPOS stand for?
20QUICK QUIZ QUESTION ANSWER Electronic Funds Transfer at Point of Sale
21In the future all forms of physical money may be obsolete, as technology enables us to use cards, cell phones and computers to access our bank accounts
22QUIZ In groups of 4 How much do you know about NZ Money
45IncomeStudents will have an understanding of the types of income people can earnStudents will understand the types of deductions from incomeStudents will have understanding of term deposits and cumulative interest.
46What is income?Income is money received from employment, investments, or interest from deposits.
47Scenario – READ ONLYArishna and Bharvna are Year 10 students who have been friends since they were in primary school. Bharvna always knows when Arishna is worried about something. ‘What’s up Arishna?’ ‘I think I need to get a job. I need more money to do the things that I want to do and I probably should be saving some money too’. ‘Have you thought about the type of job you would like?’ Bharnva asked.‘That’s the problem. I’m not really sure what job I want. There seem to be so many things to consider. How about you Bharvna, will you be looking for a job?’ ‘Not yet – I don’t have time. But there are many ways obtaining money’.Brainstorm in groups the different ways of obtaining money – getting an incomeIdentify any gaps in their knowledge and suggest any alternative ways that have not been mentioned refer following slide
48Brainstorming - ANSWERS Salary = a regular fixed payment received each fortnight or month regardless of how many hours you workWage = a regular payment received based on the hours that you workCommission = a payment received based on the level of sales obtainedInterest on investments = money you receive from the bank on a term depositAllowances = pocket money from your parentsInheritance = money you receive from someone when they die (given to you in their will)Winning LOTTO!
49Not everyone gets the job of their dreams straight away!
50What they did before they were famous Brad Pitt used to dress up as a chicken for El Pollo Loco
51Kanye West used to work at Gap Kanye West used to work at Gap. Kanye actually rapped about it on his debut album, in the song "Spaceship"!
55In groups discuss the answers to the following questions How much did Pauly Fuemana earn from the song “How Bizarre”?How much did his manager make?What did he do with all the money he made?What does bankruptcy mean?What mistakes do you think he made and what advise would you offer?
56Exercise: A bit of mathIf Pauly Fuemana put half of the money he earned from “How Bizarre” into a term deposit account for one 5% interest per annum – how much interest would the bank have given him?1 x 5% p.a = $ ????If he had left the money in the bank for 2 years how much interest would he have earnt.3 years?4 years?How many years would it take for him to double his initial deposit of $2.5m to $5million?
57Exercise Answer Refer excel spread sheet for calculations How Bizarre came out in 1995 and if Pauly had of put half into the bank that year then by 2010 he would have doubled that initial amount to $5.197m
58How much can I expect to earn when I leave school How much can I expect to earn when I leave school? Calculate the followingMinimum wage for 16 years+ is $13.75 per hour x 40 hours per week x 52 weeks per year = ???? per annum (year)
60Think/Pair/Share:What types of things can be deducted from your income before it is paid to you?
61Think/Pair/Share: ANSWERS What types of things can be deducted from your income before it is paid to you (other than income tax)? Income tax, Student loan, Child support, KiwisaverNB: if you earn less than $2240 per annum you do not have to pay any tax.
62What is income tax?If your income is from salary, wages or benefits, tax will automatically be deducted under the PAYE (pay as you earn) system.
63Why do you have to pay income tax? Taxes pay for government services such as education, health, infrastructure (roads, bridges), unemployment benefits etc..
64Income Rates for tax year 2012-2013 – for every dollar you earn Taxable incomeIncome tax (PAYE) ratesup to $14,00012.20 centsfrom $14,001 to $48,00019.20 centsfrom $48,001 to $70,00031.70 cents$70,001 and over34.70 centsNo-notification of tax code46.70 cents
65What is Kiwisaver?KiwiSaver is a voluntary work savings scheme set up by the government to encourage NZ’ers to save for their retirement.If you're employed, you can choose to contribute 3%, 4% or 8% of your gross (before-tax) wage or salary to your KiwiSaver account.
66Benefits of KiwiSaverYour employer has to contribute at least 3% of your gross wage or salary into your KiwiSaver account. That’s on top of your own contributions.Your KiwiSaver contributions come out of your pay before you see it. This makes saving easy.The government gives you $1,000 when you open a kiwisaver account.KiwiSaver savings can be used as a deposit subsidy on your first home purchase.
67Winning Lotto. NZ Herald Article http://www. nzherald. co Big winner Trevor has family problemsStudents to read article and to discuss issues that arise from winning a large amount of money
68You don't want to win the Lotto jackpot - here's why http://www. nbr Winner: Michael Carrol Winnings: £9.7million Year: What went wrong: 26-year-old unemployed UK man blew fortune on drugs, gambling and "thousands of prostitutes." Wife left, taking child. Where is he now?: Back on the dole, taking home £42 per week.Winner: Billie Bob Harrell Jr Winnings: $31 million Year: What went wrong: Texas lottery winner's spending and lending to friends, and fellow members of his church, got out of control. Strain then ruined his marriage. Where is he now?: Committed suicide 20 months after winning.
69Winner: Abraham Shakespeare Winnings: $31 million Year: What went wrong: A woman who had befriended him - and fleeced him for $1.8 million, say police - has been charged in connection with his murder." Where is he now?: Found buried under a concrete slab.Winner: Callie Rogers Winnings: £1.9million Year: What went wrong: Ms Rogers - 18 at the time of her win - spent the money on cocaine, breast implants, cars, gifts and holidays. Where is she now?: Broke, working as a maid. Attempted suicide twice.
70How much can I expect to earn after 5 years working in the following industries? Calculate the following using the previous formulaHotels and Restaurants - $16.20 per hourRetail - $17.18 per hourArts and Leisure - $21.86 per hourConstruction - $23.31 per hourManufacturing - $23.70 per hourTransportation - $24.10 per hourReal Estate - $25.16 per hourMining of Forestry - $25.68 per hourTechnical or Science - $29.72 per hourEducation - $30.78 per hourTelecommunications $32.47 per hourFinance and Insurance - $35.37 per hour
71Sending money home to the islands Sending Money home video – 1.48mins
72Sending money home comparison Show the students the difference in fees between all the places that can transfer money overseas.