Could You Start a Business?
This lesson plan will teach high school students the importance of financial management for a small business. It will help students learn the concepts of business costs, positive cash flow, credit, and proper financial management in running a business. Students will learn the tools for basic financial analysis, and will investigate why the business in the video segments was not successful. As an extension activity, they can brainstorm ideas for a model new business, given what they have learned about the financial needs of a new business.
3 classes at 45 minutes per class
Math, Finance, Economics
- Understand the components of a budget
- Learn financial management
- Learn the nature of opportunity costs in financial decisions
- Understand the challenges of entrepreneurship
- Have an introduction to the use of credit
- Learn cost-benefit analysis
- Learn the meaning of revenue, expenses, profit
1. National Council of Teachers of Mathematics
Principles and Standards for School Mathematics
Number and Operations
- Understand numbers, ways of representing numbers, relationships among numbers, and number systems;
- Understand meanings of operations and how they relate to one another;
- Compute fluently and make reasonable estimates.
- Build new mathematical knowledge through problem solving;
- Solve problems that arise in mathematics and in other contexts;
- Apply and adapt a variety of appropriate strategies to solve problems;
- Monitor and reflect on the process of mathematical problem solving.
- Recognize and use connections among mathematical ideas;
- Understand how mathematical ideas interconnect and build on one another to produce a coherent whole;
- Recognize and apply mathematics in contexts outside of mathematics.
2. Mid-continent Research for Education and Learning (McREL)
- Create and use representations to organize, record, and communicate mathematical ideas;
- Select, apply, and translate among mathematical representations to solve problems;
- Use representations to model and interpret physical, social, and mathematical phenomena.
Benchmarks for Economics
1. Understands that scarcity of productive resources requires choices that generate opportunity costs.
3. Understands the concept of prices and the interaction of supply and demand in a market economy.
This lesson was prepared with the support of Citi Foundation.
Written by: Melissa Donohue