Title: Latte Factor
¨ A- Analyze Learners
o General characteristics –
§ Grade: 9 – 12
§ Middle to low class income
§ Diverse
§ Some students work, drive and so on
§ Some students have computers
§ Some students can get internet access
§ Mixed genders
o Specific Entry Competencies –
§ Prior knowledge to addition and subtraction
§ Knows how to use MS excel and word
§ Knows how to make and explain a graph
§ Looking forward to save money
o Learning styles
§ Visual, verbal, logical, musical, structured and so on
¨ S- State Objectives
o Students will demonstrate an understanding of the latte factor concept by analyzing their personal spending and identifying their unnecessary expenditures.
o Students will be able to make a digital spreadsheet, graph, chart and complete computations in their given assignments.
¨ S- Select instructional methods, media and materials
o Automatic Millionaire Book
o Multimedia
§ Computer/Laptop
§ Projector
o Board and chalk/marker
o Sufficient copies of handouts
§ The Latte Factor Challenge Worksheet
§ Latte Factor Total worksheet
o Use Excel
¨ U- Utilize media and materials
o Automatic Millionaire Book By David Bach
§ The Book provides the information for the Latte Factor concept and worksheet.
o Multimedia (PowerPoint –PPT), Board and chalk/marker, and Sufficient Handouts
Establish focus by asking students to think carefully about the following situation and to answer to themselves.
i. Suppose you walk out to your car and find that it has a flat tire and cannot be repaired. Do you have money to purchase a new tire without borrowing from your parents?
ii. Suppose a good friend walks up to you with two tickets to a concert that you really want to attend. Because the tickets were in such demand, they cost $75 each. You just have to pay your friend for the ticket. Do you have the money?
iii. Suppose you have a job that pays you once a month. Suppose it’s the 15th of the month. How do you stand financially? Are you broke? Do you find you always have to borrow from your friends and family between paychecks?
After sharing the scenarios, ask students questions to answer quietly
iv. Do you feel good about your current finances?
v. Would you like to feel better about how you manage your spending?
vi. Do you know where your money is going?
vii. Do you know what you are spending on?
viii. If you save a few bucks a day starting now, in the future you can be a millionaire?
ix. So if you have a chance to be a millionaire will you take it?
x. Do you want to
1. Be a millionaire
2. Have enough money for entertainment (concerts, games, movies etc..), Luxury (eating out, shopping), and emergencies
3. Or both
But you think there is no way I can save with the amount of money I get.
Ask students to answer out loud (Class Discussion)
xi. Do you think saving is impossible? Ask for several opinions
xii. If you do not think saving is impossible … What are some ways to save money?
Tell them the all have good answers (if appropriate)
Well, the one way we are going to save money is to identify our latte factor.
Explain what is the latte factor and use an example to emphasis it.
* The Latte factor is the small amount of money we daily spend on insignificant or little things, which soon adds up to a large sum of money.
* It is the unconscious day to day minor spending such as buying daily coffee, cigarettes, bottled drinks etc...
*It is Important to understand how small savings on unnecessary commodities could generate into a substantial amount through the power of compounded interest.
Explain that
Watching your spending habits-or buying small things they don’t necessarily need or things they can live without.
“We do not realize how much we spend on little things and how, if we thought about it and changed our habits just a little, we could change our destiny”
For Example:
Every morning Mr. Man stops by the coffee shop before he goes to school. He usually orders a Caramel Latte for $3.50 and a blue berry muffin for $2.00. Then he stops by a store and grabs some snacks like chips $2.00, sandwich $3. Later during his break he bought bottled water for $1.00.
**Do the calculations on the board.
Latte $3.50
Muffin $2.00
Chips $2.00
Sandwich $3.00
Bottled Water $1.00
Total: $10.50
SO, Mr. Man spent $10.50 and its not even lunch yet.
Then ask - So in reality, do you think Mr. Man had really something to eat?
Further explain the situation by pretending Mr. Man saves by identifying his latte factor.
Lets say, Mr. Man decides to save starting today by reducing his spending a little.
So, Every morning Mr. Man does not stop by the coffee shop before he goes to school anymore. Which saves him $5.50. He still stops by a store and grabs some snacks like chips $2.00, and a sandwich $3. He also, starts bringing his own water. That saves him a total of $6.50 everyday.
So if Mr. Man saves $6.50 everyday. How much money will he have in a week, month, year or 10 years?
DO the math on the chalk/white board. With the previous calculation
Latte $3.50
Muffin $2.00
Chips $2.00
Sandwich $3.00
Bottled Water $1.00
Total: $10.50
Saves: $6.50
Then continue with PPT. It shows the answer to the question.
To reinforce what they have just heard do an example involving the class.
Use the two examples on the PPT. Ask if it is a waste of money or not and why do they think so?
Then ask what did they spend today? At least one item form several people and discuss if that item is a waste of money or not.
Then continue with the PPT
Explain that saving is not impossible and that everyone can do it. Just by identifying your latte factor and reducing your spending by a little.
Distribute “Latte Factor packet” to each student. Review the instructions. Tell them to take a few minutes to complete the handout. Provide no more than five minutes because it is probably a guessing game for most. If you see that most are finished, call time earlier than expected.
After a few minutes of filing it out the first page of the packet, have students discuss what they think their latte factor is and what do they think they can cut down on.
Then explain the homework. Review the instruction. Show an example of the digital Latte Factor Total spreadsheet using the Excel program.
Ask if there any questions regarding the homework.
¨ R- Require learner participation (include the time)
o Make scenarios
o Incorporate Questions and answer
o Discussion within the lecture and after lecture.
o Students will fill out The Latte Factor Challenge for what they spent on that day and use that as example discuss what their latte factors are and how can they change it.
¨ E- Evaluate and revise
o Were the students able to provide input in the discussion throughout the lecture?
o Were students able to recognize personal spending habits?
o Were students able to complete the computations?
o How well did the students understand the lesson?
§ It will show through present their final product.
o Evaluation of media and methods
o Evaluation of instructor/instruction
o Revise
