This is part one of a three lesson series. The next two lesson plans are: Income and Expense Statement Lesson Plan and Spending Plans Lesson Plan. Although the lesson may be taught independently, it is recommended that the lessons are taught in order. Begin the lesson by having participants guess who is wealthier - Ian or Mitchell - based only on their net worth and income. To apply concepts learned, have participants create a Statement of Financial Position for Tori at the end of the facilitation. Conclude the lesson by playing Racing for the Money. Assess knowledge by having participants complete a Statement of Financial Position for a scenario or themselves. Bring a life cycle focus to the lesson by comparing three scenarios at different ages.
Upon completion of this lesson, participants will be able to:
Describe the importance of net worth
Compare the difference between income and net worth
Explain why a Statement of Financial Position is an important financial planning tool
Create a Statement of Financial Position