Buying a House

Unit: Financial Planning Grade: 9 Topic: Buying a House Time allotted: 45 minutes

Overview and Purpose The purpose of this unit is to help students understand the challenges they will face when they graduate and begin starting their careers. This unit is set up to help students realize they will have to budget their money when they begin their careers and also help them realize what expenses their money will be going towards. It is also set up to try and give the students a head start in understanding how to manage their payments and be successful in the real world. The problem that we are trying to help the students realize is that many people run into trouble early on financially because they are spending more than they are making. This unit will teach students the value of money and give them an understanding of the expenses they will have to pay as an adult. PGP Goal(s) Addressed 1.4 Analyzes the classroom environment and makes adjustments to enhance social relationships and student motivation/ engagement. 3.3 Demonstrates, shares, and assists students in developing critical insights into current issues. 6.4 Plans and develops engaging and authentic lessons that demonstrate knowledge and confidence in subject matter. Lifelong Learners - This lesson develops responsible life-long learners because it shows the students how to be responsible with their money and how to live within their means. Developing Engaged Citizens: This lesson gives students the opportunity to become engaged with issues they will have to deal with in the future and help them realize the true value of money.

Outcomes/Indicators 1. N9.2 Demonstrate understanding of rational numbers including: comparing and ordering, relating to other types of numbers solving situational questions. f. Solve situational questions involving operations on rational numbers, with or without the use of technology. 2. P9.2. Model and solve situational questions using linear equations of the form: A, x = b P= prt c. Write a linear equation to represent a particular situation.

Assessment of outcomes/objectives: Students will use the linear equations given and the examples of the work done on the board to help them work through their assignment. Students will have to know how to change percentages into decimals and then multiply them properly to find the mortgage payments.

Materials: Computer House Price Mortgage Assignment Calculators

Introduction Teacher will begin the class by talking about the vehicle payments and discussing how much they will cost the students for a year. Each student will be responsible for handing in a mortgage sheet and the students will be responsible for paying half the monthly mortgage of their house while their partner is expected to pay the other half. Students should make sure the houses they are buying are within their price range.

Instructional Methods Students will be walked through the calculation process of a mortgage and will be shown how to complete the calculations themselves. Students may work with their partner but both have to hand in a calculation sheet. Questioning techniques will be used after students are finished calculations to discuss what other payments you might have on a house.

Closure: In the closure we will discuss how a $700,000 on a 25 year mortgage at 4% will actually cost 1,400,000 before it is paid off with no money down. In the real world you minimum amount that you have to put down on a house is 5%. Explain then why it would be beneficial to put as big of a down payment on a house as you can. Also explain why paying off a house quicker would be a better option. The students will now calculate their yearly payments for their house and vehicle and we can see if the students were able to live within their means so far. The lesson will end with a discussion on what other expenses would be paid while buying a house. (House Tax which is 50/50 between the City of Meadow Lake, and the schools in Meadow Lake, House Insurance, power bills, internet/tv/phone, energy bills, and water bills). For every student that goes to Jonas Samson we get 12,159. So if you multiply this by the 460 students that go to Jonas Samson the school receives 5,593140.

Reflections: