PBL in Mathematics: Financial Literacy for Students

This financial literacy project for students provides a PBL planning guide to take both the teacher and student through important steps, start to finish. Incorporate PBL in Mathematics through this very relevant PBL math project on financial literacy. Students walk away with the skills to financially plan futures for themselves and their families. Students begin to understand the value of a dollar through problem-based learning in mathematics.

Use this project guide for students to help students build money knowledge and create their first financial plan.

PBL in mathematics

Planning for the Future

OVERVIEW

How can we create a financial plan for a family? In this project, you will take on the role of financial planner and help local families to plan for goals such as retirement, college tuition, and mortgage reduction. With the help of a professional financial expert and teacher, you will understand basic financial principles and formulas that are exponential and logarithmic functions. As a team, you will interview clients to determine their financial goals, then perform and calculate appropriate savings and investment plans using algebraic, graphical, and table representations.

Designer:
Jack Yu

Grades:
11, 12

ROADMAP

Stage 1 - Money Knowledge

You will source a family who needs financial help. You will interview that family to uncover their financial goals. What do I need to know about the family’s situation? You will determine what you already know and need to know about financial planning. What are the components of a financial plan? How do I create a financial plan? What is the best way to explain math concepts?

Pathway 1 - Need to Know

  • What does money mean to you? Share a video, mind-map or visual.

  • Share a chart. What do you already know and need to know in order to create a financial plan for a family? (Math concepts, resources etc.)

  • Share resources. What resources will you need to start financial planning?

Stage 2 - Financial Planning 101

Interview a financial planner to explain the basics of financial planning, such as the components of a plan, common questions for a family, and investment vehicles. Take notes and ask the planner probing questions. Record and analyze the information and use it to inform the development of questions for their clients. Check out the financial plans below for reference: https://m1.com/articles-1/financial-plan/ https://www.raymondjames.com/-/media/rj/advisor-sites/sites/j/i/jimzientara/files/samandsuejohnson10312016zoomerssbearmkt.pdf https://fladvisors.com/sample-plan/ https://m1.com/articles-1/financial-plan/

Pathway 2 - Learn More

  • Using the resources attached to this stage, identify the characteristics of an effective financial plan. Discuss with peers

  • Create a rough outline of the major sections to include in their own financial plans. Seek feedback and revise.

  • Add to your list of NTK's (questions) to ask after viewing these resources. Use the feed to add any questions you may have missed!

Stage 3 - Family Interview

Refine your questions and prepare for interviews. Share, get feedback, and revise your question list before you conduct an interview. Consider questions such as the following: What did we learn about our family’s current financial situation? What did we learn about their goals and priorities? How is this family’s financial situation likely to change over time? What are the implications for our financial plans?

Pathway 3 - Financial Goals

  • Write out and share revised question list.

  • Record findings from the interview. How has the response from the family affected the financial plan?

Stage 4 - Concepts & Formulas

Learn about financial formulas and their connection to mathematical concepts and use the formulas to find solutions to your family’s financial goals. Students can document their financial report here: https://www.dropbox.com/s/wh7lsqjh6dmrt1o/Financial%20Mathematical%20Report.pdf?dl=0 Spruce up on your knowledge here: GRAPHING: https://www.purplemath.com/modules/graphexp.htm DESMOS: https://www.desmos.com/calculator/3fisjexbvp GRAPHS: https://www.khanacademy.org/math/algebra2/x2ec2f6f830c9fb89:transformations#x2ec2f6f830c9fb89:exp-graphs Compound Interest https://www.youtube.com/watch?v=wf91rEGw88Q https://education.ti.com/en/timathnspired/us/detail?id=1DAE86B09696489784EDEC82816C7244&t=DA6059DBA17B40A6A6E562B368666534

Pathway 4 - Do the Math

  • Share a video. How can the compound interest formula can help you with your family’s financial goals?

  • (B = A(1+i)nPi[(1+i)n-1]) Discuss how this formula connects to the compound interest formula and use a series of scenarios to solve for different variables within the formulas. Share your draft work.

  • Identify the formulas you will need to use for your families’ financial plans and explain why

  • Complete and share financial mathematical analyses of one of your client’s financial goals.

  • Reflect: How does compound interest connect to an exponential function? What financial formula applies to your family’s financial goal? What makes you say that? Why are exponential and logarithmic functions inverses of each other?

Stage 5 - Create Financial Plan

Create your draft financial plans with your team. Work collaboratively on a shared document to develop the financial plan for the family.

Pathway 5 - Document

  • Share a draft document of your financial plan. Seek feedback and revise.

  • Journal Entry: What mathematical representations best align with your family’s financial goals? How did you decide on the best components to put in the financial plan? Working collaboratively was key to completing the financial plan. How did you recognize and use the special talents of each team member?

If you are looking for ways to incorporate PBL in mathematics, check out Spinndle’s shared teacher library. Sign up for a Spinndle account to access this project and many more!

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