Cathy DAlessandro - Money Matters: The Lemonade Stand: Financial Literacy

0covercover.xhtmlcover1page0001page0001.xhtml22page0002page0002.xhtmlMONEY MATTERS The Lemonade Stand Financial Literacy33page0003page0003.xhtml44page0004page0004.xhtmlTable of Contents Hot Summer Day 4 Juan's Big Idea 6 The Meeting 12 Dad's Idea 18 Making Money 26 Problem Solving 28 Glossary 30 Index 31 Answer Key 3255page0005page0005.xhtmlHot Summer Day It is a hot summer day. Juan and Rose are lying around the house, trying to think of something to do. "I keep thinking about the animal shelter we went to yesterday, " says Rose, as she lies down on the floor. "Those dogs were so cute. People need money to take care of them. I wish I had money to give them. " Rose and Juan decide they want to help. First, they need to think of a way to make money. Rose and Juan66page0006page0006.xhtmlThis dog waits for someone to take him home.77page0007page0007.xhtmlJuan's Big Idea Suddenly, Juan jumps off the couch. "Wait, I have an idea! " he shouts. "What if we sell lemonade? It is so hot outside, we could make a fortune! " Rose jumps up and gives her brother a high five. She thinks it is a great idea. Juan and Rose run to the kitchen, where they make ice?cold lemonade and a sign. Then, Juan and Rose go to the end of their driveway. They sit outside for hours, but no one comes!88page0008page0008.xhtmlJuan waits for customers.99page0009page0009.xhtmlWhile Juan and Rose are sitting outside, their mom walks up to them. "What are you doing? " she asks. "There are spoons on the counter and water on the floor. There is also a pile of lemons in the sink. " Juan and Rose look embarrassed. "Sorry, Mom, " says Rose. "We are just trying to raise money for the animal shelter. " "Well, I am happy that you want to help the shelter, " their mom says. "But I am not happy about that mess! " lemons1010page0010page0010.xhtmlWater on the f loor can be dangerous.1111page0011page0011.xhtmlAs Juan and Rose clean up the kitchen, their mom goes into her office. She grabs paper, pens, and markers. She clears her throat when she comes back into the kitchen. Juan and Rose turn around. "I am proud of you both for trying to start your own business, " their mom begins. "But there are some things you need to think about first. Come to the dining room. It is time we have your first business meeting. " Juan and Rose's mom is happy to help.1212page0012page0012.xhtml1313page0013page0013.xhtmlThe Meeting Juan and Rose finish in the kitchen and run to the dining room. "Okay, there are things you need to know about running a business, " their mom says. "First, you need to spend money to make money. " Rose is confused. She wants to make money, not spend it. Her mom explains, "You need to buy cups, lemons, sugar, and ice. You cannot make lemonade without those things. "1414page0014page0014.xhtmlRose and Juan's mom teaches them more about how to run a business.1515page0015page0015.xhtmlRose is disappointed. She has been saving her money for a new bike. She does not want to buy supplies. Then, Juan jumps up from the table. "I have an idea! " he says. "What if we just take cups from the kitchen? Then, we will not have to spend any money. " Rose thinks that is a great idea, but their mom says no. She tells them they need to make a budget. Then, they will know how much money they can spend. Rose and Juan have never made a budget, but they each grab a sheet of paper from their mom and start writing what they will need.1616page0016page0016.xhtmlExpenses are things that must be paid for. Expenses cups lemons suger ice1717page0017page0017.xhtmlAfter Juan and Rose have their list, they add to figure out how much money they will need. "It looks like supplies for our lemonade stand will cost about $20, " says Rose. "Okay, " says their mom. "I will loan you $20 to start, and I will let you use my pitcher and tablecloth. That will help you save money. " Juan and Rose thank their mom and agree to pay her back. Juan, Rose, and their mom go to the store to buy supplies. Now, Juan and Rose can start their business!1818page0018page0018.xhtmlLET'S EXPLORE MATH Juan and Rose go to the store to buy their supplies. Rose is in charge of buying packs of cups and bags of lemons. She has $20 to spend. The cups cost $4 per pack. The lemons cost $3 per bag. 1. Rose buys 2 packs of cups. How much money does she spend? How much money is left over? 2. How many bags of lemons can Rose buy with the leftover money?1919page0019page0019.xhtmlDad's Idea When Rose and Juan get home, they tell their dad about their business. Once they are done, he asks where they are going to set up their lemonade stand. "We were thinking the end of the driveway, " says Juan. Their mom does not think that is a good idea. There are not many people who walk by their house. "What about the park near your school? " their dad asks. "There will be a lot of soccer games this weekend. There will be a lot of thirsty people there. " Everyone thinks it is a great idea!2020page0020page0020.xhtml2121page0021page0021.xhtmlRose, Juan, and their parents start designing their signs. Their dad is in charge of making the sign that shows the price. "I think we should charge $10 per cup, " Juan tells his dad. "I think we should charge 10 per cup, " Rose says. "Neither of those will make you a profit, " their dad tells them. "Juan, your price is too high; no one will spend that much. Rose, your price is too low; you will have to sell a lot of cups of lemonade to make money. " "What about 75 per cup of lemonade? " asks Rose. Their dad thinks that is the perfect price. Rose and Juan make signs for their stand.2222page0022page0022.xhtmlLET'S EXPLORE MATH With their dad's help, Rose and Juan decide to charge customers 75 per cup of lemonade. Describe four different ways customers could pay 75 using pennies, nickels, dimes, and quarters. Fresh2323page0023page0023.xhtmlThe next day, Rose and Juan's mom gets a permit to sell their lemonade. Then, the whole family drives to the park together. They set up a table and hang signs. Their parents carry the jug of lemonade to the table. Rose and Juan set down a jar with money. They have pennies, nickels, dimes, and quarters. They are ready to sell their drinks. It is a very hot day. There are many people at the park. It does not take long before Juan and Rose start selling cups of lemonade. Juan and Rose sell lemonade.2424page0024page0024.xhtmlLET'S EXPLORE MATH Rose and Juan are off to a great start. The 75 cups of lemonade are selling quickly. The first three customers are ready to pay for their drinks. 1. Rose and Juan's first customer pays using only quarters. How many quarters does the customer give Rose and Juan for one cup of lemonade? 2. The second customer pays with a $1 bill. How much change is she owed? What coins can Rose and Juan use to make the change? 3. The third customer pays with 2 quarters, 1 dime, 2 nickels, and 1 penny. Does he have enough for 1 cup of lemonade? Why or why not? Rose and Juan keep the money they make in a jar.2525page0025page0025.xhtmlJuan and Rose sell all of their lemonade. They are eager to know how much money they made. When they get home, they count their money with their mom and dad. They made $35 from selling lemonade. Juan and Rose give $20 to their mom to repay their loan. They are left with $15 profit. That is a lot of money. Rose and Juan decide to go back to the park tomorrow. They can make a lot more money for the animal shelter. Rose and Juan have $15 for the animal shelter.2626page0026page0026.xhtmlRose is excited to have made so much money.2727page0027page0027.xhtmlMaking Money The family goes back to the park the next day. It takes them just two hours to run out of lemonade again. At the end of the day, Juan and Rose count their money. "We made $30 today! Woo?hoo! " Juan shouts. "Hooray! " yells Rose. Juan and Rose are happy to have $45. Their mom helps them send the money to the animal shelter. Their dad tells them that he thinks they should go back to the park the next weekend. Then, they can make money for something else they care about. Juan and Rose think that is a great idea. They cannot wait for next weekend!2828page0028page0028.xhtmlRose and Juan send two $20 bills and five $1 bills, or $45, to the animal shelter.2929page0029page0029.xhtmlProblem Solving Imagine you are starting your own business. You will mow lawns, rake leaves, and water flowers for people in your neighborhood. You make a flyer to show the cost of each service. Use the flyer to answer the questions. 1. How much money will you make if you mow 5 lawns? 2. Ms. Ellis asks you to mow her lawn and water her flowers. She pays with a $20 bill. How much change do you owe her? Describe two ways you can make the change using $1 and $5 bills. 3. How much money will you make if you rake leaves for 4 of your neighbors? 4. If your parents give you a $16 loan, how many times will you have to water flowers to repay the loan? 5. Mr. Roberts hires you to rake his leaves. He pays you with 3 dollars, 4 quarters, 5 dimes, 5 nickels, and 25 pennies. Is that enough money? Why or why not?3030page0030page0030.xhtml