Overview
In this lesson, students will learn about financial terms including net income and net loss. Students will work through scenarios as they learn about financial lingo. Students will work in teams to create an income statement about a fictional business as a final activity for this lesson.
NB Curricular Connections
Personal Wellness
- Strand: Mental Fitness – Big Idea: Decision Making – Skill Descriptor: Discuss decision-making about money.
English Language Arts (Grades 6-8):
- Strand: Reading – Big Idea: Vocabulary – Skill Descriptor: Recognize how different strategies are used to determine the meanings of words
- Strand: Interactions – Big Idea: Expression – Skill Descriptor: Express and support ideas and opinions with evidence; Understand communication for a diverse set of audiences
- Strand: Interactions – Big Idea: Exchanges – Skill Descriptor: Respond personally and critically to a variety of text.
- Strand: Reading – Big Idea: Reading Comprehension – Skill Descriptor: Adjust and use a variety of strategies to make meaning.
What You’ll Need
- Paper
- Writing utensil
- Calculator
- Printable Income Statement Activity
- PowerPoint Presentation
Instructions
- Prior to starting the PowerPoint, print one set of information for each group. Cut the strips of information and put into an envelope to hand out to each group when the activity begins.
- Use the PowerPoint presentation titled, “Income and Loss” to introduce and discuss a variety of financial terms.
- In small groups, students will complete the Income Statement Activity that is described in the PowerPoint presentation.
- Each group uses the provided information to create an income statement for the business.
Extension Ideas
- Discuss how businesses determine selling prices.
- Have students create an income statement for the business they are creating for the school market, if applicable.
- Discuss gross margin percentage and talk about the margins that different industries typically experience.
Reflection Tool
Please see the attached PDF for several choices on how you and your learners can reflect on today’s activity.
