Managing financial shocks
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Introduction
In this activity, students learn that they will experience unexpected events in their lives which may put them under short- and long-term financial stress. They learn that one way to prepare for these unexpected events is by developing a savings buffer, or an emergency savings fund.
This activity develops student understanding of the concept of preparing for future events. It provides a strong foundation for understanding the importance of saving for the future, such as for retirement through superannuation.
Achievement standard
By the end of Year 9, students explain the role of Australia’s financial sector and its effect on economic decision-making by individuals and businesses. They explain the interdependence of participants in the global market and the effect on economic decision-making. They explain the reasons for trade and Australia’s pattern of trade with Asia. They explain why businesses seek to create and maintain a competitive advantage. Students explain how individuals and businesses manage consumer and financial risks and rewards.
Students develop and modify questions to investigate an economic and business issue. They locate, select and analyse information and data from a range of sources. They interpret and analyse information and data to explain economic trends and cause-and-effect relationships, and identify consumer and financial impacts. They develop a response to an economic and business issue, taking account of economic, business or financial factors. They evaluate a response using criteria and make decisions about how it is to be implemented. Students use economic and business knowledge, concepts and terms to develop descriptions, explanations and arguments that acknowledge research findings.
Content descriptions
Economics and Business Knowledge and Understanding
How individuals and businesses manage consumer and financial risks and rewards. (AC9HE9K05)
Economics and Business Skills
Interpret information and data, explaining economic and business issues, trends and economic cause-and-effect relationships, and make predictions about consumer and financial impacts. (AC9HE9S03)
Develop and evaluate a response to an economic and business issue, using cost-benefit analysis or criteria to decide on a course of action. (AC9HE9S04)
Create descriptions, explanations and arguments, using economic and business knowledge, concepts and terms that incorporate and acknowledge research findings. (AC9HE9S05)
Student learning resources
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Managing financial shocks
The importance of having a savings buffer
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Suggested activity sequence
This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group. If you assign this activity to a class, your students will be assigned all student resources on their 'My learning' page. You can also hand-pick the resources students are assigned by selecting individual resources when you add a work item to a class in 'My classes'.
- As a class, read the explainer.
Alternatively, have students read the explainer individually or in pairs and encourage them to take notes using the Cornell note taking system.
- Students individually complete the worksheet.
- As a class, discuss Noah’s situation and what it taught them about the importance of having an emergency savings fund.
- Discuss, as appropriate, what students learned about themselves and what they will do if anything, to put money aside in an emergency savings fund.