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CAN YOU BE A MILLIONAIRE??
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You are in the real world now, and need to learn how to manage your
money. You will be put into groups of three and will be given $3,000
per month to live on. You will use Microsoft Excel to set up a checking,
savings, and an expense account. This will familiarize you with the
potential of spreadsheets. Next, you will take extra monthly income
and invest it in the stock market to see how much money you can earn.
How easy is it to make a fortune through online trading, is it worth the
risk? Extra points will be given to the top three groups who have
the most money left over at the end of the project.
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You will be divided into groups of 3, each group member will choose
the role of graphic designer, banker, and mathematician.
This project deals with real life applications, it focuses the students
on money management and stockmarket use, and it encourages financial creativity
within certain constraints, a budget.
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Spreadsheet setup: This part of the project is to
teach you how to use spreadsheets to manage your day to day finances
without going out and spending money on software programs such as QuickenSE.
1). Students will be placed into groups and then each student will decide which role he/she will perform.
2). Complete the spreadsheet using Excel for Dummies,
or
go online and use Excel
Tutorial or Microsoft
in Education.
These resources are great in assisting
you with how spreadsheets work. Printed handouts showing examples
of how the
spreadsheet should look will be
given out.
Requirements
A). We will begin with the easiest part of this project
first and set up an expense account with the following entries: Rent-
$750, Car Payment-$350,
Phone-$50, Electric-$50, Auto Insurance-$75, Credit Card-$65, and Other-$300.
B). Next, create a total column, and total up your monthly
expenses.
C). Now, create a chart or graph showing your monthly expenses
in a format that is readable.
D). With the above information, you will next set up a
checking account and a savings account on the same spreadsheet.
you will receive two monthly
paychecks of $1,500, one on the 1st and the other on the 15th of the month.
Your
rent is due on the 1st,
and all other bills are due on the 20th.
E). With the above information, create a checking and savings
account with the proper entries. Make sure to follow what
a real checking or savings
register looks like. Use the printed handouts and follow the format
on them. Also, refer to
Excel for Dummies,
or the Excel Tutorial
or Microsoft
in Education.
F). The checking account register should include a formula
that automatically adds deposits and subtracts withdrawls or pay-
ments. This involves
including a single formula in the balance column.
G). Set up your savings account. Once again, refer
to the handout with given examples or the spreadsheet tutorials.
. Your savings account register should
include a formula that automatically adds and subtracts deposits and withdrawls,
and
should include a forumula
that deteremines daily interest earned and automatically adds it to your
balance. Here is some
more help: Your annual
interest rate is 8%, divided by 365 days gives you your daily interest
rate. In your days column,
determine the number of
days that have elapsed since your last transaction, multiply this by the
daily interest rate, and the
account balance--this will
give you your earned interest. Your balance column should add this earned
interest. Once
again, refer to the printed
handouts with examples, or any of the tutorials.
H). After the above requirements have been completed, determine
your extra monthly income.
I ). Enhance your spreadsheet by showing currencey,
percentage, and date values where they should be. Change the back-
ground or insert an image---be
creative in your design.
Online Trading
1). As a group, begin by researching the stockmarket---how
to trade online, good versus bad stocks (risk), stock market
terms, investing, etc...
This should take two class periods. The more you know, the better.
You need to choose at least
two of the stock market websites
to research, and to list the ones you chose when you turn in your first
portfolio. Keep
your group roles as graphic designer,
banker and mathematician for the set up of the portfolio.
2). Decide which stocks to invest in (a minimun of 5 choices),
and design a portfolio. A great example of a portfolio to follow
can be found in the Good
News Bears website.
3). Start investing your extra monthly income. NOTE:
It might be a good idea to not invest all of your extra monthly
income
at once. Set some of it aside
in your savings account (remember, you earn 8% monthly interest in your
savings). A good
website that might offer you advise
is Invest
Smart.
4). Over three months, check regularly on how your stocks are
doing. You may need to change your portfolio according to
profits and losses.
5). Turn in a copy of your original portfolio, and if it
is necessary to adjust your protfolio, turn in a copy each time you change
it. Also, keep a day
to day record of the changes your stocks make, and hand them in at the
end of the week. Also, as
you make your decisions on which
stocks to invest in, list what resource site you used to make your choice
and to track
your stock---use at least two
resources to keep track of your stocks.
6). If you happen to lose your money before your next month's
expenses have been covered, you must wait before investing
again (this is where your savings
account comes in handy again---don't blow it all at once). If you
do lose all of your
money before the next month's
income is available to invest, each member of your group will be placed
in other groups
that are still active in their
investments. You will not participate in the group that you are placed
in, you will watch and
learn how they are investing their
money in the stockmarket and will use this informatiom when investing your
next month's
extra income.
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Spreadsheet resources
Offline: Harvey, Greg. Excel for Dummies. Chicago, Il: IDG Books Worldwide, Inc.
Online: Microsoft Excel Tutorials
1). Excel Tutorial
Stockmarket Resources
Researching the Stockmarket
1). Edustock
2). Invest Smart
4). Investor Words
Investment Possibilities
1). Stock Master: This site shows you the days top stocks, NASDAQ most active, NYSE most active, big losers etc...
2). Young
Biz: This is an excellent site for you to pick stocks that might
interest you (including Disney, Gap, Nike, etc...).
When you are in this website, go into "Our Portfolios" to find the stocks
that might interest you.
3). Streeteye Index: This is a searchable database that lists a multitude of investment companies to invest our money.
4). Symbol Look-up: Look up your investment company and see how your investment is doing.
Building a Portfolio
1). Good
News Bears: This site will help you design a portfolio, and it
also provides you with information to research the
stockmarket.
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| Expense Account | Basic set up done appropriately; total is accurate; chart or graph is in readable format. 10 pts. | Requirements are followed, but there are some
inconsist-
encies. 8-9 pts. |
Minimum effort; in-
accurate total; graph or chart isn't in readable format. 6-7 pts. |
No graph or chart; wrong total; in-
accurate entries. 5 pts. or below |
____ |
| Checking and Savings Account | Proper entries are made; the format follows what
real registers look like; formulas work properly; balances are correct;
proper values are used.
20 pts. |
Few inconsistenc-
ies; formulas work; balances are right; format doesn't exactly follow what a register looks like. 16-19 pts. |
Minimum job done;
inconsistent entries, formulas, set up; balances are not correct. 13-15 pts. |
Inaccurate entries, formulas, set up, balances.
Formulas don't work as they should; proper values aren't used.
12 pts. or below |
____ |
| Spreadsheet Enhancement | At least 5 or more tool bar options are used. 10 pts. | 3-4 tool bar options are used.
8-9 pts. |
2 tool bar options are used.
6-7 pts. |
1 or none tool bar options are used.
5 pts. or below |
____ |
| Researching the Stockmarket | How much time is spent researching the stockmarket; quality of knowledge gained; turning in what online resources you choose to research. 10 pts. | Time spent researching the stockmarket isn't
used to maximize productivity and knowledge.
8-9 pts. |
Minimum time spent researching the stockmarket;
50% effort put in. Too few of resources used to research.
6-7 pts. |
Little effort made to spend time researching
the stockmarket. Only 1 resource used.
5 pts. or below. |
____ |
| Portfolios and Investments | Portfolios are designed properly; changes are made according to how your stocks are doing; regular checking of how your stocks are doing; turning in records on time and when changes are made; 30 pts. | Good portfolio set up; keeping an eye on your
stocks somewhat regularly; consistently turning in records;
24-29 pts. |
Decent portfolios; minimum job watching your
stocks; not alot of effort made to change stocks according to gains and
losses; not turning in records when necessary;
20-23 pts. |
Poor portfolio design; little effort watching
your stocks; few portfolio records turned in;
19 pts. or below. |
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| Total Points | ____ | ____ | ____ | ____ | ____ |
10 pts. This part of the project will be graded by each group member evaluating each others participation in this project. A maximum of 10 points will be given, and the following are the grading criteria: Were roles decided upon fairly? Did each member participate fully in the spreadsheet set up? Does each member understand how the spreadsheet works and its real life applications? Did each member research the stockmarket using online resources? Do you understand what the portfolio is for? Did you make your stock purchases as a group, and were money management decisions made as a group?
10 pts. You will also be quized
for 10 points on the questions found in the Conclusion/Refleciton
part of this project. Answer
each question in approximately one paragraph.
***The three groups who have the highest total money amount at the end of the three months will earn extra points. 30, 20, and 10.
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After completing this project, ask yourself these questions:
1). What business skills did you learn from this project?
2). What was the reason for doing this project when it comes to managing your finances and banking?
3) When it comes to investing your extra monthly income, is it
a wise idea to dump it all into the stockmarket all at once?
Why?
4). What did you learn about the stockmarket, and what are the real life implications when it comes to investing your money?
5). Were the online sources of information adequate in helping you make these decisions?
6). What are the real life implications of this project as a whole?
7). Reflect on how you did this as a group and what experiences you got from working in a group.
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Subject Area: High School Business
Grade Level: 9-12
Length of lesson: Spreadsheet project, 2-3
class periods; stockmarket project---3 class periods to research the stockmarket
and to set up a portfolio; 3 months to invest money and watch how their
stocks do.
Purpose: This project is for
use in business classes and is designed for students to learn how spreadsheets
can be useful in
day to day uses when tracking their finances. Not only can they be
used for checking, savings and expense
accounts, but loans can also be applied---this is one example of the many
uses of spreadsheets
Online trading teaches the students about the stockmarket and gives them
a chance to explore options when it
comes to making decisions about investing their money. It also gives
them an insight to the dynamics of how the
stockmarket works and how our economy is so strongly tied to the stockmarket.
Comments?
jlllll@sisna.com
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