Classroom Activities
The following lesson plans are listed and described below to ensure that students properly understand the unit’s concepts. This is not an exhaustive list for this curriculum unit. (Note: SWBAT = Students will be able to; IOT= in order to).
The Subprime Mortgage Crisis
Objective:
SWBAT watch The Big Short and read Understanding the Crash IOT identify the causes of the Great Recession.
Materials:
- The Big Short
- Understanding the Crash
- Understanding the Crash reading guide
Procedure:
Students will complete a reading guide as they read Seth Tobocman and Eric Laursen’s Understanding the Crash. The complexity of the Subprime Mortgage Crisis will be scaffolded as students also watch The Big Short. By pairing the graphic novel with the film, students will read chapters and watch scenes to facilitate their learning. In addition to reading the graphic novel and watching the film, lectures will provide a detailed analysis of the development of the housing bubble in the United States. By analyzing items such as collateral debt obligations, credit default swaps, and tranches, students will identify the inner workings of the banking and bond market systems. They will learn about compound interest rates, fixed- and adjusted-rate mortgages, and the importance of credit. These components allow for students to focus on the roles banking and homeownership play in the United States economy.
After reading the graphic novel and watching the film, students will analyze the role players such as commercial banks, investment banks, rating agencies, insurance companies, hedge funds, the Federal Reserve, and others had in the events that led to the crisis. In a one-page short response, students will assign responsibility to at least one of these figures. (To demonstrate a more nuanced understanding, students may select more than one figure.) Students will refer back to this assignment when reviewing the government’s response in crucial pieces of legislation such as TARP and Dodd-Frank.
Occupational Outlook
Objective:
SWBAT research a job in five different fields IOT identify different types of income and understand the importance of job security.
Materials:
- Laptop
- US Department of Labor Occupational Outlook website
Procedure:
Using data from the US Department of Labor, students will research an occupation from five different categories: high school diploma, college degree, advanced degree, municipality, and manual labor. They will research the occupation’s title, description, the projected number of new jobs, growth rate, median pay, and any training or education needed. Students are encouraged to research a job that they would enjoy pursuing.
After researching five different occupations, students should choose the job that they wish to have in order to make the project more realistic. In several short responses, students will explain their interests in the job, the advantages and disadvantages of the occupation, their plan to attain this profession, how to improve their qualifications, and the experiences desired from this position of employment.
Monthly Budget
Objective:
SWBAT create a monthly budget IOT calculate and track their spending.
Materials:
- Laptop
- Occupational outlook activity
- Google Sheets monthly budget template
- Suggested or Ideal Spending Practices worksheet
Procedure:
Using their salary from the occupational outlook activity, students will create a monthly budget that takes into account taxes, mortgage/rent, transportation, groceries, discretionary spending, savings, and other budget items. Using a series of daily lesson plans, students will examine if they should buy or rent property, where they should live, if they should have a roommate, and more. Students will use the Google Sheets Monthly Budget Template to track their spending. Students will learn the appropriate ratios of their savings and expenses. They will also examine the importance of credit and debit, different types of mortgages, and investing strategies.
After calculating their expenses, students must label each expense as a fixed, variable, or periodic expense. After completing the budget template, students must write a one-page reflection to elaborate on the decisions they made. For example, a student may explain why they chose to purchase a fixed-rate mortgage rather than an adjustable-rate mortgage. They may also wish to describe the reason they chose to take public transportation to their place of work rather than purchasing a car.
Lastly, students will engage in a class discussion that asks them to think about job security and the effects of the Financial Crisis of 2008 on people’s financial lives. This way, students will understand how the study of economics affects the human condition. Ideally, this project will also provide a simple method in which students can keep track of their actual money after they graduate high school.
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