Lesson Plan | Socioemotional Learning | Financial Mathematics: Compound Interest

Objectives

Duration: (10 - 15 minutes)

The purpose of this stage is to provide students with a clear and detailed understanding of what will be covered in the class, specifying the skills that will be developed. By outlining the objectives, students can align their expectations and understand the importance of mastering these mathematical concepts for practical situations in daily life, such as investments and loans.

Main Goals

1. Explain the difference between simple interest and compound interest, using practical everyday examples.

2. Teach how to calculate compound interest to determine the amount of a financial investment and the total interest paid on a loan.

3. Develop students' ability to compare different financial scenarios to make more informed decisions.

Introduction

Duration: (15 - 20 minutes)

Emotional Warm-up Activity

Mindfulness Breathing for Focus and Presence

The emotional warm-up activity will be a Mindfulness session focused on breathing and presence. The goal is to help students connect with the present moment, promoting a state of calm and focus before starting the financial math class.

1. Ask students to settle comfortably in their chairs, with their feet firmly planted on the ground and their hands resting on their laps.

2. Instruct them to close their eyes or to maintain a soft gaze directed downwards.

3. Guide students to begin to focus on their breathing, feeling the air enter and exit through their nostrils.

4. Ask them to take deep breaths, inhaling through the nose for four seconds, holding the air for four seconds, and exhaling slowly through the mouth for six seconds.

5. Suggest that, as they exhale, they imagine releasing any tension or worry they may be feeling.

6. Continue guiding this breathing for about five minutes, encouraging them to bring their mind back to their breath each time they get distracted by thoughts.

7. Conclude the session by asking students to slowly return their attention to the room, opening their eyes and preparing for the class.

Content Contextualization

Financial mathematics, especially concepts like compound interest, is an integral part of our daily lives. Understanding how compound interest works can help make smarter financial decisions, whether investing money or taking out a loan. For instance, by understanding the impact of compound interest, students can better plan their college savings or understand the costs involved in a car loan. This understanding not only enhances their mathematical skills but also promotes critical financial awareness, essential for adulthood. Furthermore, dealing with financial situations involves a range of emotions, from the excitement of seeing your money grow to the anxiety of paying off a debt. Understanding and managing these emotions can help students make more responsible and balanced financial decisions.

Development

Duration: (60 - 75 minutes)

Theoretical Framework

Duration: (25 - 30 minutes)

1. Definition of Compound Interest: Explain that compound interest is interest on interest, meaning the interest for each period is calculated on the accumulated amount, which includes the interest accrued from previous periods.

2. Compound Interest Formula: Introduce the formula M = P(1 + i)^n, where M is the amount, P is the principal (initial capital), i is the interest rate per period, and n is the number of periods.

3. Practical Example: Use a practical example to illustrate the formula. For example, if a student invests R$ 1,000.00 at an interest rate of 5% per year for 3 years, the amount at the end will be M = 1000(1 + 0.05)^3 = R$ 1,157.63.

4. Comparison with Simple Interest: Explain the difference between simple and compound interest. In simple interest, the interest is calculated only on the initial capital, while in compound interest, the interest is calculated on the accumulated amount.

5. Impact of Compound Interest: Discuss how compound interest can have a significant impact over time, both on investments and debts. Use graphs and tables to illustrate the exponential growth of compound interest.

6. Real Applications: Provide examples of real applications of compound interest, such as savings accounts, stock investments, and loans. Explain how understanding these concepts can help make more informed financial decisions.

Socioemotional Feedback Activity

Duration: (30 - 35 minutes)

Compound Interest Simulation in Groups

In this activity, students will be divided into groups to perform simulations of different compound interest scenarios. Each group will receive a specific financial situation, such as an investment or a loan, and will need to calculate the final amount after a specified period. Then, the groups will present their results and discuss the emotions involved in the financial decisions made.

1. Divide the students into groups of 4 to 5 people.

2. Distribute to each group a specific financial situation (for example, an investment of R$ 2,000.00 at a rate of 3% per year for 5 years or a loan of R$ 1,500.00 at a rate of 4% per year for 3 years).

3. Ask the groups to use the compound interest formula to calculate the final amount after the specified period.

4. Request that each group creates a graph showing the growth of compound interest over time.

5. Encourage the groups to discuss how they would feel in the presented situations, considering the emotions of seeing an investment grow or a debt increase.

6. Each group should prepare a short presentation (3-5 minutes) to share their calculations, graphs, and emotional reflections with the class.

Group Discussion

After the group presentations, start a whole class discussion focused on the RULER method. ➡️ Recognize the emotions reported by students during the activity, both positive and negative. ➡️ Understand the causes of these emotions by asking students what made them feel that way (e.g., the excitement of seeing the investment grow or the anxiety of seeing the debt increase). ➡️ Label the emotions correctly, helping students identify and label their emotions accurately. ➡️ Express emotions appropriately, encouraging students to share how they would handle these emotions in real-life situations. ➡️ Regulate emotions effectively by discussing strategies that students could use to maintain emotional control in financial situations, such as planning and seeking information.

Conclusion

Duration: (15 - 20 minutes)

Emotional Reflection and Regulation

Suggest that students write a brief paragraph or participate in a group discussion about the challenges faced during the class, focusing on how they managed their emotions when dealing with compound interest calculations and presentations. Encourage them to reflect on specific moments when they felt strong emotions, such as frustration when making a mistake or satisfaction when completing a calculation correctly, and how these emotions influenced their performance and learning.

Objective: The goal of this subsection is to encourage self-assessment and emotional regulation, helping students identify the strategies that worked well for them in managing their emotions. This will allow them to become more aware of their emotional responses and develop skills to cope with challenging situations more effectively in the future.

Closure and A Look Into The Future

Explain to students the importance of setting personal and academic goals related to the content of the class. Ask each student to write one or more goals they want to achieve, such as improving their skills in financial mathematics or applying the knowledge gained in a real situation, such as simulating an investment or planning a personal budget.

Possible Goal Ideas:

1. Improve accuracy in calculations of compound interest.

2. Apply knowledge of compound interest in real situations, such as investments and loans.

3. Develop the ability to compare different financial scenarios to make more informed decisions.

4. Practice emotional regulation when dealing with stressful financial situations. Objective: The goal of this subsection is to strengthen students' autonomy and the practical application of learning, encouraging them to continue developing their skills in both academic and personal fields. By setting clear goals, students can maintain focus and motivation to apply the knowledge gained in financial mathematics to their daily lives, promoting continuous and meaningful learning.