PAY DAY

CLERKS PREPARATION
  • Clerks–Write a paycheck for each student in your group
  • Class Banker–Make sure there is enough cash in the Central Classroom Bank.
  • Everyone–There are extra bank slips and bank logs in the back of the room in case you don’t have it in your folder.
AUCTIONEERS PREPARATION
  • Auctioneers: Make sure each student in your group has an auction paddle/paper.
  • Auctioneers: Make sure you have an auction record form and extra bank slips ready.
  • Auctioneers: Gather the items for sale and set a starting bid level for each one based on its appeal. A starting level around $500 should work for many items.
  • Display the items so everyone can preview the goods.
  • Auctioneer–announce the items and their starting bids
  • Assistant Auctioneer–document each sale
FINE OFFICER PREPARATION
  • All students–Extra bank slips and bank logs are in the back of the room.
  • Fine Officers–Extra blank fine slips are in the back of the room.
  • Fine Officers–Check the offense log.
ALL STUDENTS PREPARATION
  • All students–your folder should contain: A rental agreement, an electricity log, and a rent log
  • Banker–check for unpaid bill notices
  • All students–extra bank slips and bank logs are in the back of the room
  • All students–deeds are available in case you are ready to purchase your desk
IN CLASS

Here is what needs to happen on Pay Day:

  1. Clerks–hand out the paychecks.
  2. Teacher–distribute bonus money to students who have earned it.
    1. Who has all their assignments turned in for this class so far?
    2. Who participated in after school activities this month?
    3. On a piece of paper, write down the name of one of your classmates that you think deserves a bonus and why. Give it to your teacher.
  3. Each student–completes a bank slip.
  4. Each student–updates his or her bank log with the amount of the paycheck and any bonus money received.
  5. Each student–takes the paycheck and the bonus cash (if any) to their Banker.
  6. Banker–updates his or her copy of the student’s bank log.
  7. Banker–places the paycheck in the paycheck envelope within the banking folder.
  8. Banker–be sure you have $2,000 in the bank folder at all times.
  9. Banker–should deposit any additional cash in the Central Classroom Bank through the Class Banker.

 BILL DAY

PREPARATION
  • All students–your folder should contain: A rental agreement
  • Banker–check for unpaid bill notices
  • All students–extra bank slips and bank logs are in the back of the room
  • All students–deeds are available in case you are ready to purchase your desk
IN CLASS
  1. Paying bills is one of your most important financial responsibilities. It’s so important that, unless you pay your bills, you won’t be allowed to participate in Auction Day.
  2. It is important to plan and watch your spending so you will always have the rent money ready when it’s due.
  3. You can escape rent payments altogether if you can save $1,500 to buy the deed to your desk. THIS IS SOMETHING YOU SHOULD SERIOUSLY CONSIDER DOING.
  4. Electrician–report on electricity usage and provide suggestions about how to lower next month’s bill.
  5. You will need to pay taxes in April (1st semester–November) and you should consider setting money aside to prepare for this. You can earn tax deductions by making charitable gifts. Review the tax document placed in your folder and keep track of your charitable contributions throughout the semester.

BILL PROCEDURES

  1. Electrician–announce the usage bill–$150
  2. All students–update your bank log to show the withdrawal of rent and electricity money.
  3. All students–take your bank log to your Banker.
  4. Banker–update each student’s copy of their bank log, and write “Paid”.
  5. Banker–if the student cannot pay the month’s bills, fill out an unpaid bill notice and put it on the teacher’s desk.
    1. Banker–once the student manages to make the payment, update the student’s rent log or electricity log, or both, noting the date.
  6. Can anyone purchase their desk this month? If you can do so, get your DEED TO YOUR DESK from your teacher!
  7. All students–if you buy a desk, take the $1,500 to your Banker along with the deed.
  8. Banker–mark the student’s rental account “Paid in full.”

FOLLOW-UP DISCUSSION

Paying bills is a strong indicator that you are succeeding in the classroom economy program. If a you can’t pay bills, it is important to get back on track as soon as possible. The unpaid bill notice is a way to keep you informed about who is falling behind. Be sure to participate in more activities, complete all assignments, work well with other, etc. so you will earn enough bonus money to catch up on bills and get in on the Auction Day fun.

TICKET DAY

Getting and Paying Fines

On Ticket Day, students must pay the fines that have been assessed since the last Ticket Day.

PREPARATION
  • All students–Extra bank slips and bank logs are in the back of the room.
  • Fine Officers–Extra blank fine slips are in the back of the room.
  • Fine Officers–Check the offense log.
IN CLASS

Violations for breaking the class rules over the past month need to pay up now. You will have to withdraw the money from your bank account.

FINE PROCEDURES

  1. Fine Officers–examine the offense log, write tickets, and give them to the students being fined.
  2. Fined Student–fills out a bank slip to make a withdrawal.
  3. Fined Student–enter the withdrawal in your bank log.
  4. Banker–update a copy of the each student’s bank log, put the bank slip in the student’s envelope, and hand over the cash.
  5. Fined student–take the cash and ticket to the Fine Officer.
  6. Fine Officer–mark the ticket paid and deliver it to the teacher along with the cash.
  7. Fine Officer–write in the offense log that the fine was paid.

AUCTION DAY

The auction is an important component of the classroom economy. It lets you reward yourself for working diligently to earn money. From a learning perspective, it links directly to the concept of supply and demand, and you will quickly discover how impulse buying can shrink a bank account.

PREPARATION
  • Auctioneers: Make sure each student in your group has an auction paddle/paper.
  • Auctioneers: Make sure you have an auction record form and extra bank slips ready.
  • Auctioneers: Gather the items for sale and set a starting bid level for each one based on its appeal. A starting level around $500 should work for many items.
  • Display the items so everyone can preview the goods.
  • Auctioneer–announce the items and their starting bids
  • Assistant Auctioneer–document each sale
IN CLASS

Introducing the auction

Explain that students can only spend the amount of money they have in their bank accounts, and that they’re not required to purchase anything. This is a good time to reinforce the importance of saving, and to remind the students that they have the ability to buy the deed to their desks and thus escape rent payments forever.

It’s also important to emphasize that an auction bid is a binding contract, and there’s no going back on it, even if they later wish that they hadn’t spent the money.

If necessary, explain the auction procedures before beginning the auction.

Auction procedures

Before the auction starts, allow students to quickly confirm their bank logs with the Bankers so everyone knows what he or she can spend.

    1. The Auctioneer displays the first item, explains what it is, and opens the bidding at the assigned price. Example: “We have an Ultimate Frisbee disc. The starting price is $500. Do I have any takers?”
    2. Students who want the item raise their paddles.
    3. Once a paddle is up, the Auctioneer acknowledges the bid and asks if anyone will go for a higher price. Example: “[Student name] for $500. Do I hear $600?”
    4. The Auctioneer repeats this process until bidding stops. The last bidder wins the item. Example: “[Student Name] for $1,500. Any more bidders? …Going once, going twice, sold!”
  • The Assistant Auctioneer enters the sale on the auction record form.
  1. The Auctioneer moves on to the next item.

Collecting payments

After the auction, each winning bidder needs to withdraw cash from the bank to pay for items bought. Do not give an item to the student until you receive the cash.

At this point some students may decide they bid too much and no longer want the item they won. It is very important that you require them to purchase it anyway. The auction is a vital tool in teaching the lesson of buyer’s remorse.

  1. Fill in a bank slip with the amount needed to cover the auction payment.
  2. Update his or her bank log.
  3. Bring the bank slip to the Banker and receive the cash.
  4. Bring the cash to you and exchange it for the item.
FOLLOW-UP DISCUSSION15–30 minutes

After an auction, some students will feel overwhelmed because they got caught up in the action and spent most or all of their money. This can be a tremendous learning opportunity.

You could use some of the following questions to guide a discussion:

  • What made you keep bidding even when the price was getting so high?
  • How do you feel now about the item you bought? Was it worth it?
  • What concerns do you have about the amount of money you spent?
  • How will you go about rebuilding your savings?
  • Will you be able to make rent the next time it is due?
  • Will you change the way you bid at the next auction?

LEARN HOW TO RUN A BUSINESS

IMPORTANT: At the end of every class, write about the following on today’s lesson plan at the bottom of this page:

  1. Describe what happened or what you did during class.
  2. Interpret how things went by using one (or more) of these terms:
    1. Strength & Weaknesses
    2. Successes & Setback
  3. What have you learned due to this experience?
  4. Answer one (or more) of these questions:
    1. What can you do to improve your learning?
    2. How will you extend your learning past what is expected?
  5. Remember to go back and read what your classmates wrote about to get ideas for yourself!
  6. Be sure to use good writing skills!!