TCNJ Lesson Plan

Economics: Functions of Money

Student Name: Kayla Taylor Grade Level: 4th Grade

Guiding and/or Essential Questions:

What are the benefits/disadvantages of a barter economy?
What are the benefits/disadvantages of a currency system?
How is money used in our everyday lives?
What are the functions of money?

Pre-lesson Assignments and/or Student Prior Knowledge (ex. background knowledge,

possible misconceptions, prior lesson content)
Students have experience with money but have not yet explored the functions of money in the
economy or the reason behind standard units of currency.

Standards:
NJSLS.SS.6.1.4.C.3 Explain the three functions of money in the economy:
1. Measure of exchange (buying)
2. Measure of value (price comparison)
3. Store of value (savings)
CCS.ELA-Literacy.RI.4.4
Determine the meaning of the general academic and domain-specific words or phrases in a text
relevant to a grade 4 topic or subject area.
CCS.ELA-Literacy.CCRA.R.1
Read closely to determine what the text says explicitly and to make logical inferences from it;
cite specific textual evidence when writing or speaking to support conclusions drawn from the
text.

Learning Objectives and Assessments:

Learning Objectives Assessment
Students will analyze the transition from barter Teacher will evaluate the class discussion for
and trade to currency. identification of the reasons the economy
shifted from a barter economy to a currency
system by listening and taking notes on student
comments.
Students will define the three functions of Teacher will assess their definitions, based on
money in the economy. the articles, for accuracy and keywords, as
listed below.
 Students will correctly categorize examples by Teacher will assess how students sort their
the function of money in the economy they examples for correct categorization of the
represent. function the example models.

Materials/Resources: (List materials, include any online or book references and resources)
Planning for the lesson:
https://www.frbatlanta.org/-/media/documents/education/lessons-and-activities/2007/middle-
school/macroeconomics/were-in-the-money-carrubba.pdf
During the lesson:
“Barter Simulation” cards (pre-cut and placed in bowl)
Whiteboard and marker
Cut-outs of American dollars (posters for functions of money activity)
Functions of money articles (copied and pasted onto separate documents):
https://www.cliffsnotes.com/study-guides/economics/money-and-banking/functions-of-money
Tape
Markers or crayons
Examples of functions of money (pre-cut and placed in bowl)
Plan for set-up/distribution/cleanup of materials:
One member from each table will get markers and tape at the beginning of the less. Teacher will
walk around with bowl for students to choose from for, both, the barter simulation and the
sorting activity. Teacher will pass out the articles and American dollar posters to each group.

Step by Step plan (numbered):

1. Lesson Beginning (15-20 minutes): To begin the lesson, the students will play a barter
simulation.
a. They will pretend they are colonists in a new land that uses a barter economy. I
will remind them that they are fighting for their survival in undeveloped parts of a
new territory, so they have to think critically about what they trade and what they
are looking to receive.
b. After finishing the directions, each student will choose a piece of paper, with a
picture of a good or service, out of a bowl.
c. Once everyone has a good or service, the students will have five minutes to move
around the room and try to trade their good or service for one they desire.
d. After the five minutes have finished, I will ask everyone to go back to their seat.
e. We will have a whole group discussion about the challenges of a barter economy.
On the white board, I will record what they come up with as a class. During this
discussion, we must talk about:
i. Convenience-hard to carry around big items and travel with them
ii. Limits who you can do business with-you need to find someone who
needs what you have and has what you need
 iii. Lack of ability to save-only some materials can be saved for a draught or
famine, so the goal is to trade what you won’t need to get something you
need or want
f. Finally, I will ask the students, “What is an alternative to a barter economy?” I
will prompt the students, as necessary, until they come up with a currency system
or the use of money.
2. Functions of Money (15 minutes): After the lesson beginning, we will transition into a
discussion and activity about the benefits of a currency system and the functions of
money in an economy.
a. I will tell the students that in a currency system, money has three major
functions.
b. Each group will read an article about one of the functions of money. Using the
article, they will define their assigned function and provide any other information
they feel important on cutouts of American dollars.
i. Each group should come up with the follow keywords:
1. Money as a measure of exchange:
2. Money as a measure of value:
3. Money as a store of value:
c. After each group is finished, they will come up and hang their money poster on
the board. As they hang their poster up, each group will share what they
discovered about their assigned function of money.
3. Lesson Closing (15 minutes): To complete the lesson, the students will participate in a
sorting game.
a. I will give each student an example of money being used in the economy. Using
the definitions that they created from the articles, they will have to decide which
function their example falls under.
b. Students will come up to the board, one at a time, and post their example under
the function they believe their example falls under. Once they sit back down, we
will ask if the class agrees or disagrees, showing this with thumbs up or thumbs
down.
c. We will continue this until all examples are posted and listed under the
appropriate function.

Key Questions (that you will ask):

What challenges or problems did you face while trading?
What is an alternative to a barter economy?
What is the function of money as a measure of value?
What is the function of money as a measure of exchange?
What is the function of money as a store of value?
What function of money does your example belong under?
Logistics:
Timing: 45-50 Minute Lesson
Lesson Beginning (Barter Simulation and Discussion): 15-20 Minutes
Functions of Money Activity: 15 Minutes
Lesson Closing (Sorting Game): 15 Minutes

Transitions:
Students will spend the lesson in their pre-existing groups, so limited physical transitions
will be needed. Transitions between activities will be monitored by teacher directions.

Classroom Management:
Teacher will provide verbal and written directions, before passing out materials. Teacher
has created pre-existing groups for this unit, so students know to sit with their group at
the start of class.

Differentiation
Students are grouped heterogeneously, so that students who need more support can learn from
their peers and students who are advanced in content can share their ideas with others.
If needed, I can assign jobs to each group to ensure that each student is contributing in the way
most appropriate for their strengths/abilities.
Students who work better on the computer can be granted access to the articles online.
For some students, I will provide a worksheet for them to record the results of the class
discussions. This will ensure that they are paying attention and can refer back to the material
when needed.
If needed, I can pass the examples out for the sorting game. This will allow me to differentiate the
difficulty of the example for each student.