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Welcome
to our classroom
website!
We are continuing with
new areas of study this year.
The fifth grade and fourth/fifth classes decided
together to also have
classroom economic systems. In
this time of economic challenges,
it is not only timely, but relevant to teach students about
financial fluency.
Below is a brief explanation of how our economy works
with the students.
Description of Simulated Economy
Each Friday students receive wages for their
week’s work.
By the end of the school year most students are competent
in
figuring percentages, subtracting withholding taxes, writing
and
endorsing checks, and filling out savings slips. Students
have
opportunities to manage money, create supply and demand,
and form partnerships and corporations. They determine their
own
capitalistic path by choosing what they want to do to
fatten
their bankrolls or supplement their weekly paychecks.
Fridays the class bank is open for business.
Blank paychecks
with attached pay stubs are distributed and students fill out
hours
worked, extra pay, total gross earnings, calculate
withholding tax,
and determine the total net pay. Net pay is rounded off
and
the paycheck is made out to the individual student, who
must
separate the check from the stub, endorse the check, stand in
line
at the bank, and either cash the check or make a deposit or
a
combination of both. Students may also make a rent
payment,
as per the lease agreement, at the beginning of the
month.
A flea market on occasional Fridays occurs
during the banking
time. Students bring homemade crafts, old toys, hand
drawn
pictures, trading cards, used books, etc; they cannot spend
real
money to purchase items to bring to flea markets and must have
a
parent note granting permission to sell said items. Items should
fit
into a backpack and are not taken out on the bus or the play
field
during recess. Some students create game booths and some
offer
services. Participation is not mandatory.
Fort Knox for the simulated economy is an
auction held at the end
of the school year. Auction items are donated by local
businesses,
parents, other teachers, and also purchased by Mrs.
Ohlson.
Class currency may be used to purchase classroom supplies
or
missing copies of homework assignments.
Quite simply, the purpose of the simulated
economy is to teach
basic capitalistic principles.
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