Grade 3 Lesson 3
Compelling Question: How do people in a community use money?
IL Financial Literacy Standard
SS.EC.FL.3.3: Describe the role of
banks and other financial institutions
in an economy.
SS.EC.FL.3.4: Explain that when people
borrow, they receive something of
value now and agree to repay the
lender over time.
IL Econ Standard (when applicable-
this row can be deleted)
SS.EC.1.3Compare the goods and
services that people in the local
community produce and those that
are produced in other communities.
Inquiry Standard
SS.IS.1.3-5: Developing Questions and
Planning Inquiries. Develop essential
questions and explain the importance
of the questions to self and others.
SS.IS.4.3-5: Evaluating Sources and
Using Evidence. Gather relevant
information and distinguish among
fact and opinion to determine
credibility of multiple sources.
SS.IS.5.K-2: Communicating
Conclusions and Taking Informed
Action. Construct and critique
arguments and explanations using
reasoning, examples and details from
multiple sources.
Student Outcomes
Students will be able to explain:
• The role of banks and other financial institutions in a community
economy.
• When people borrow, they receive a good or service of value today and
agree to pay the lender over time, with interest.
• People make choices in an effort to maximize satisfaction. When people
carefully consider their choices and alternatives, they are more likely to
make choices that maximize their satisfaction.
Ask
Compelling Question: How do people in a community use money?
Supporting Question #1: How does money
give people freedom of choice?
Key Understandings: Students
will learn about choices people
make with their money.
Featured Resources
(Investigate): Video and two
Reading for Information
Pieces, Choices and Spending
vs. Saving
Formative Assessment Task
(Create/Discuss): Spending vs.
Saving Actitiy, Maximum
Satisfaction Activity
Supporting Question #2:What role do banks play
in a community?
Key Understandings: Students
learn the importance of banks
in their community.
Featured Resources
(Investigate): Two Reading for
Information pieces- Banks in
Your Community & Interest
Formative Assessment Task
(Create/Discuss): 3-2-1 Bridge
Activity, Bumper Sticker
Activity, Skit
Supporting Question #3: Is it ever a good
idea to borrow money to get the goods
and services you want?
Key Understandings: Students
understand that when people
borrow, they receive
something of value today but
it costs them more money
down the road.
Featured Resources
(Investigate): Reading for
Information Piece- Large
Purchases, Interest Tool & a
Decision Making Grid
Formative Assessment Task
(Create/Discuss): Reasonable
Responses Activity, Calculating
Interest Activity
Introduction to Lesson
The compelling question for this lesson is: How do people in a community use money?
The lesson is structured as follows: Each lesson consists of three supporting questions that directly tie in to the
compelling question. Each supporting question gets a little tougher as you progress through the lesson. Each
supporting question includes an Investigate and Create/Discuss section. The Closed-Reading Activity can be used for
each of the supporting questions or one that you select. The Reflect section is located towards the end of the lesson
which provides students a chance to demonstrate their knowledge of money and allows you to have a summative
evaluation.
Supporting Question #1: How does money give people freedom of choice?
Investigate
Featured Resources
Marshmallow Test: If your class does not have internet access, you can act it out in class. A marshmallow is put on a
table in front of a child. Before leaving the room, the adult tells the child if s/he doesn’t eat the marshmallow, when
the adult returns the child will receive an additional marshmallow. It helps students identify with choices and
consequences. https://www.youtube.com/watch?v=QX_oy9614HQ
Reading for Information - Choices: Most people have choices on how they want to use their money. Those choices
help them achieve satisfaction. People can choose to spend on goods, services, giving, or they can save (short or long
term); saving means forgoing spending today to have more freedom of choice in the future.
Reading for Information – Spending vs. Saving: Students read a piece on people who are only spenders versus those
who are only savers. Is it good to only save? Is it good to only spend?
Create/Discuss
Formative Assessment Performance Activities
Spending vs. Savings Activity: After completing the reading for information piece on spending vs. savings, students
will answer the questions about spending versus savings.
Maximum Satisfaction Activity: Students complete work through a variety of scenarios and determine the best
spending and savings choices.
Supporting Question #2: What role do banks play in a community?
Investigate
Featured Resources
Reading for Information – Banks in Your Community: Students read how banks help people in communities by
loaning money and providing a safe place to save.
Reading for Information Piece – Interest: This Reading for Information Piece discusses two types of interest – savers
earn and borrowers pay.
Create/Discuss
Formative Assessment Performance Activities
3-2-1 Bridge Activity: Three things students know about banks; two questions students have about banks; 1
connection.
Bumper Sticker Activity: Students pretend they work for a local bank and create a bumper sticker encouraging people
in the community to save money.
Skit Activity: In small groups of 3-4 students per group, students work together to create a skit demonstrating how
some members of a community save and others borrow and how banks provide the service that brings the savers and
borrowers together.
Supporting Question #3: Is it ever a good idea to borrow money to get the goods and
services you want?
Investigate
Featured Resources
Reading for Information Piece – Large Purchases: Students will learn that large purchases sometimes require
individuals to borrow money. However, the decision whether to borrow should always be made with careful
consideration and the understanding that when you borrow, ultimately you pay more for the good or service than if
you were able to pay without borrowing.
Interest Activity: Students read about interest and work through examples.
Decision Making Grid: Decision making grid for evaluating alternatives.
Create/Discuss
Formative Assessment Performance Activities
Reasonable Responses Activity: Students read various personal finance (saving and spending) scenarios with
responses (solutions). They work in small groups to determine if each response is reasonable and why or why not.
Then, using the decision-making grid, they determine the best alternative (the one that would likely offer maximum
satisfaction). Groups share their scenario and decision grid with the whole class.
Argument
Construct an argument, supported by evidence that addresses the question how do people in a
community use money?
Extension/Action
Bank Activity: Tour a local bank or invite a local banker to come in and speak to your class about the
various services banks provide to people in their community. Have students prepare up to 3
questions to ask a banker.
What other financial organizations exist in a community besides banks? How are they similar to
banks? How are they different? Why might one type of financial organization be better than
another?