Business Education & Math Major Purchases A Concept Based Curriculum Unit for Secondary Schools Jill Carlblom, Peter Danielson, Thomas Moskalik, Dawn Stevenson Business Education & Math

CURRICULUM MAP

CONCEPTS Loan Interest Lease Value Affordability

ESSENTIAL UNDERSTANDINGS Value of purchase reflects cost and bias. Lease and loan may not be the best way to purchase. Interest may not the only consideration in evaluating a loan. Prejudice and discrimination can influence choice. Many factors should be considered when determining the affordability of a purchase.

GUIDING QUESTIONS What biases contribute to value? How do we determine cost? What other ways are there to “finance” a purchase? How many ways are there to calculate interest? What are the advantages/disadvantages of each? What are the factors that go into making a purchase choice? What factors should be considered for determining the affordability of a purchase? Are cost and affordability related?

MN GRADUATION STANDARDS Grade Strand Sub-Strand Standard 9, 10, 11 I.MATHEMATICAL REASONING Apply skills of mathematical representation, communication and reasoning throughout the remaining three content strands. II. NUMBER SENSE, COMPUTATION AND OPERATIONS A. Number Sense Use real numbers, represented in a variety of ways, to quantify information and to solve real-world and mathematical problems. III. PATTERNS, FUNCTIONS AND ALGEBRA B. Algebra (Algebraic Thinking) Solve simple equations and inequalities numerically, graphically, and symbolically. Use recursion to model and solve real-world and mathematical problems. 9,10,11,12 Business Education No MN Graduation Standards exists

ACADEMIC VOCABULARY Tier 1 (basic)* Tier 2 (hi freq) Tier 3 (low freq) Interest Parameter Estimation Variance Principal Taxes Credit Loan Lease Value Cost Price Tier 2 (hi freq) Credit report Advertising Ambiguity Criteria Exaggerated claim Research Application Rate Negotiation Marketing Defer Default Tier 3 (low freq) Media Medium Truth in advertising * as defined in Bringing Words To Life

DIMENSION 2 DECLARATIVE KNOWLEDGE Know what interest is Know what principal is Know what taxes are Know what a budget is Know what to compare Know what your limits are for value considerations Know what is a lease Know what your income is Know what are your expenses Know what is a credit report Know operation costs are part of value statement and affordability

DIMENSION 2 PROCEDURAL KNOWLEDGE Know how to calculate interest Know how to calculate a payment (PITI) Know how to set up a budget Know how to compare values to arrive a which item to purchase Know where to determine real costs for value considerations Know how to calculate your payments as a percentage of income Know how to get a loan Know how to negotiate a lease Know how to compare loan rates

DIMENSION 2 Procedural Knowledge Construct a model of the steps for a purchase Construct Model: Students construct a model identifying decision steps for a major purchase using flowchart Shaping: Students will have opportunities to review each step in flowchart and try it (example follows) Internalizing: Students will use identified websites to answer worksheet scavenger hunt questions

DIMENSION 2 EXAMPLE FLOWCHART Identify Values Price range Wants Needs DIMENSION 2 EXAMPLE FLOWCHART Search Compare Autos Price Value Afford Finance Purchase

DIMENSION 3 Extend & Refine Knowledge COMPARING Construct comparison matrix (example follows) CONSTRUCTING SUPPORT Students will construct support (justify) their facts or opinions using the worksheet provided, explaining their reasons for their purchase conclusion

DIMENSION 3 COMPARISON MATRIX EXAMPLE SUV Coupe Hybrid Invoice $32,000 $21,000 $35,000 Insurance for 6 months $700 $600 $500 Fuel economy 15 city 20 highway 23 city 34 highway 40 city 30 highway Affordability N Y

DIMENSION 4 Using Knowledge Meaningfully DECISION MAKING Students will construct a decision-making matrix using the organizer provided INVESTIGATION Ask students to investigate variable, fixed, balloon payment loans, and then create their own model for a major purchase with a loan using their new knowledge to reach a buy decision. (Example rubric follows)

DIMENSION 4 PERFORMANCE ASSESSMENT RUBRIC 1 2 3 Express definition of variable, fixed and balloon loans Defined from dictionary Defined and showing limited understanding Defined and showing understanding and application Write justification for their buy decision Justification contains relevant facts Justification expresses some supporting facts Justification is well reasoned with relevant supporting facts Calculate financial information Calculates information when given formulas Calculates and fills in information appropriately Independent calculation and understanding calculated information evident

MODEL A DIMENSION 4 STRATEGY DECISION MAKING

WEBSITES WEBSITES CONTAINING A VARIETY OF LESSON PLAN IDEAS: http://www.proteacher.com http://www.educationworld.com http://webquest.sdsu.edu WEBSITES CONTAINING INFORMATION APPROPRIATE TO THIS LESSON PLAN: http://www.kbb.com/ Kelley Blue Book (New & Used car pricing) http://www.mayocreditunion.org/employees/vehicle-pricing.html Mayo CU car pricing http://www.thinkcu.com/borrowing/vehicleloans.html Think CU car loans page https://www.wellsfargo.com/auto/ Wells Fargo Auto Financing page http://math.about.com/od/businessmath/ss/Interest.htm Interest Calculations http://www.rochesterautofinder.com/ Rochester Post Bulletin Auto Finder http://www.ford.com/ Ford http://www.chevrolet.com/ Chevrolet http://www.pontiac.com/ Pontiac http://www.lincoln.com/ Lincoln http://www.cadillac.com/ Cadillac http://www.mbusa.com/index.do Mercedes-Benz http://www.volvo.com/ Volvo http://www.ferrari.com/ Ferrari http://www.toyota.com/ Toyota http://www.cartalk.com/ Advice