One Stop Shop For Educators The following instructional plan is part of a GaDOE collection of Unit Frameworks, Performance Tasks, examples of Student Work, and Teacher Commentary for the Eighth grade social studies course.

Eighth Grade Unit 13 – Personal Finance Elaborated Unit Focus This unit will focus on fiscal responsibility among individuals. Students will learn the value of budgeting, investing, spending and making sound decisions regarding income, spending, and saving. They will study the productions, distributions, and consumption of Georgia products and how these may affect decisions made by investors. Standards/Elements SS8E5 The student will explain personal money management choices in terms of income, spending, credit, saving, and investing. Enduring Understandings/Essential Questions Production, Distribution, Consumption: The student will understand that the production, distribution, and consumption of goods/services produced by the society are affected by the location, customs, beliefs, and laws of the society. What are some possible sources of income for teens? Why is it important to save money? Why is good credit important? What dangers are associated with credit? How might an individual increase their income potential?

*NOTE: The balanced assessment plan included in this unit is presented as a series of suggested activities. It is not expected that the teacher complete all assessments for a successful unit. Balanced Assessment Plan Description of Assessment Students should write the definitions for all the economic terms used in this unit of study. Then, they should write a sentence for each one And be prepared to read their sentence aloud when called upon by the teacher. They should leave the term blank for their fellow students to fill in. After reading their sentence, call on someone to fill in the blank with the correct term. When they have done so, they are to read their sentence, leaving the word out. Call on another student. In this fashion, go around the room studying the words. Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 1 of 10 Copyright 2009 © All Rights Reserved

Standard/ Type of Element Assessment E5 Constructed response, dialogue, informal

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Write a letter to your principal asking for financial help for a club project or activity in which your club wishes to participate. Use four of the following economic terms: income, spending, credit, saving, investing.

E5

Constructed response

Discuss the meaning of credit. Ask students to decide if paying the monthly bill for a cell phone and having a department store credit card are both examples of credit? Then have them make a list other examples of credit. Finally, write a paragraph on good credit: why it‟s important, how to get it.

E5

Dialogue, informal, Constructed response

Students should make a list of possible jobs for teenagers. Have them then number them according to the ones they would most want to have. Then have them number them according to the ones they think would have the highest wage. Use this information for a class discussion discussing how choice of jobs will impact personal money management choices, amount of income, income, spending, credit, saving, and investing.

E5

Constructed response, dialogue, informal

Students should think ahead to a place in their life where they would like to be in five years. How are they going to achieve that place? Work? Schooling? Saving? They should write a short paper on themselves as they wish to be in five years, and what they can do to get there.

E5

Constructed response

Performance Task Production, Distribution, Consumption: The student will understand that the production, distribution, and consumption of goods/services produced by the society are affected by the location, customs, beliefs, and laws of the society. You have suddenly inherited a large sum of money. You‟re not a millionaire yet, but you want to be. You have decided to invest in a Georgia company because you want to „keep your money at home,” and you feel Georgia companies who grow and prosper will help everyone. Using the following information, study both the Coca-Cola Company and Home Depot. After reading the information given, you will develop a prospectus, a printed statement that describes a company and that is given to prospective investors in the hopes of persuading them to invest in the company, for these two companies. In the prospectus you will include the company‟s name, history, purpose, product(s), relationship to the community and society of which it is a part, and stock price changes. Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 2 of 10 Copyright 2009 © All Rights Reserved

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Use paragraph form to discuss the history and background of the company. Continuing in paragraph form, include a discussion of how the company benefits from and fits into the location, customs, beliefs, and laws of the society in which different branches of the company are producing and distributing their goods for consumption. Using the information given, develop graphs to show the types of products produced. Then study the enclosed graph. Using the information on the graph and the information you have written in the prospectus, would you be wise to invest in Coca-Cola? Before you make your final decision, do the same for the second Georgia company, Home Depot. Following the same steps analyze that company. Would you be wise to invest in Home Depot? In a final paragraph, tell which company you feel would bring you the greatest return on your investment? Write a detailed paragraph telling which company you have decided to invest in and why. This should include reasons for rejecting the other company.

Coca-Cola:

(NYSE symbol KO)

Mission statement: Everything we do is inspired by our enduring mission: To refresh the world…in body, mind, and spirit: To inspire moments of optimism through our brands and our actions: To create Values: We are guided by shared values that we will live by as a company and as individuals. Leadership: "The courage to shape a better future". Passion: "Committed in heart and mind". Integrity: "Be real". Accountability: "If it is to be, it‟s up to me". Collaboration: "Leverage collective genius". Innovation: “Seek, imagine, create, delight". Quality: "What we do, we do well" Vision: To achieve sustainable growth, we have established a vision with clear goals. Profit: Maximizing return to shareowners while being mindful of our overall responsibilities. People: Being a great place to work where people are inspired to be the best they can be. Portfolio: Bringing to the world a portfolio of beverage brands than anticipate and satisfy peoples‟ desires and needs: Partners: Nurturing a winning network of partners and building mutual loyalty. Planet: Being a responsible global citizen that makes a difference. Citizenship at Coca-Cola: From the beginning of our business 121 years ago, we've been committed to doing the right things wherever we are: the right things for our people and the right things for the marketplace, environment and communities in the more than 200 countries where we do business. As our business and the needs of people and the planet evolve, we continually assess whether we are meeting the needs of our various stakeholders. In the Workplace: We continue strengthening the workplace environment, ensuring a safe environment where a diverse workforce is engaged, fulfilled, and fairly compensated and rewarded for their performance. In the Environment: We're constantly working to improve our environmental performance and to lead the industry in environmental stewardship, particularly in the areas of water and sustainable packaging. In the Marketplace: We strive to meet our consumers' needs by offering beverages of the highest quality, produced under stringent Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 3 of 10 Copyright 2009 © All Rights Reserved

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standards, as well as by developing products, programs and partnerships that help to address consumers' evolving beverage needs and concerns about health and wellness. In Communities: We partner with communities and organizations on solutions to address local needs and initiatives, including environmental programs, sports and physical activity programs, education and disaster relief. Invest in local economies through substantive and locally relevant community programs working with people in communities, governmental organizations and others to create and support projects most relevant to communities, particularly in the areas of education, youth development, arts/culture, and women/girls. Together with the Coca-Cola Foundation, in 2006, contributed almost $70 million to communities worldwide including civic and public affairs, community and economic development, culture and the arts, education, the environment, and health and social services. Invented by a pharmacist, John Pemberton in 1886 in Georgia. company formed by Pemberton was bought for $2,300 in 1891 by Asa Candler. Candler enlarge sales area to include all of the USA and Canada. Candler sold the US bottling rights in 1899 to Benjamin Thomas and John White who created nation wide bottlers with over 1,000 bottlers all over the nation at that time. the famous Coca-Cola bottle design was being used.. Candler's family sold the company to Ernest Woodruff for $25 million in 1919. Coca-Cola began issuing stock in 1919. “Coke” became the official name in 1941. Coca-Cola also owns Minute Maid (960), Sprite (961), TAB (1963), and Diet Coke (1982). world's largest soft-drink company. products sold all over the world, in more than 200 countries. In almost 90 percent of the more than 200 countries, the beverages are produced by local people with local resources. uses creative and interesting advertising to increase sales, Advertises extensively around the world in many languages. sponsored the 1994 World Cup. sponsored the 1996 Olympics in Atlanta. products include; Coca-Cola Classic, Diet Coke, Caffeine free Diet Coke, Sprite, Nestea, Powerade, Barq's Root Beer, and Fruitopia. has cornered 41% of the US soft-drink market and 50% of the international soft drink market. soft drink sales equal approximately $14,412 million. juices and food account for $1,728 million. The company has pledged to work towards the goal of replacing every drop of water used in the production of their beverages. Approximately 85 percent of global unit cases delivered in 100 percent recyclable materials. Pledges to conserve freshwater eco-regions throughout the world including in the Southeastern Unites States.

Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 4 of 10 Copyright 2009 © All Rights Reserved

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Financial Highlights Percent 2006

Year Ended December 31,

2005

Change

(in millions except per share data and percent change)

Net operating revenues Operating income Net income Net income per share (basic and diluted) Net cash provided by operating activities Dividends paid Share repurchase activity

$ 24,088 $ 6,308 $ 5,080 $ 2.161

$ 23,104 $ 6,085 $ 4,872 $ 2.042

$

5,957

$

6,423

(7%)

$ $

2,911 2,474

$ $

2,678 2,019

9% 23%

Unit case volume (in billions) International operations North America operations Worldwide

15.6 5.8 21.4

14.8 5.8 20.6

4% 4% 4% 6%

6%3 0% 4%

2006 basic and diluted net income per share included a net decrease of $0.21 per share as a result of the following items: a $0.23 per share decrease related to the Company's proportionate share of significant nonoperating items at one of our equity method investees, Coca-Cola Enterprises Inc. (CCE); a $0.07 per share decrease due to contract termination costs related to production capacity efficiencies, asset impairments and other restructuring costs; a $0.03 per share decrease related to a donation made to The Coca-Cola Foundation; a $0.01 per share decrease due to changes in reserves related to certain tax matters; and a $0.13 per share increase related to the sale of Coca-Cola FEMSA, S.A.B. de C.V. shares and the sale of a portion of our investment in Coca-Cola Icecek A.S. in an initial public offering. 1

2005 basic and diluted net income per share included a net decrease of $0.13 per share as a result of the following items: a $0.13 per share decrease related to taxes recorded on the repatriation of previously unremitted foreign earnings under the American Jobs Creation Act; a $0.04 per share decrease related to impairment charges from write-downs of certain trademarks; a $0.02 per share decrease related to a change in an estimate used in accounting for stock-based compensation awards; a $0.01 per share decrease related to the Company's proportionate share of significant non-operating items at CCE; a $0.04 per share increase related to reversals of previously accrued taxes resulting from favorable resolution of tax matters; a $0.01 per share increase related to the settlement of a class-action lawsuit concerning price fixing by one of the Company's vendors; and a $0.01 per share increase related to gains on issuances of stock by one of our Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 5 of 10 Copyright 2009 © All Rights Reserved

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2

Company's equity method investees, Coca-Cola Amatil Limited. Per share amounts do not add due to rounding. Percent change is calculated using full figures.

3

As used in this report, "sparkling beverages" means nonalcoholic ready-to-drink beverages with carbonation. "Still beverages" means nonalcoholic beverages without carbonation.

Coca-Cola Stock Prices through 25 months

Home Depot: (NYSE symbol HD) Mission Statement: The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight core values include the following: Excellent customer service, taking care of our people, giving back , doing the "right" thing, creating shareholder value, respect for all people, entrepreneurial spirit, building strong relationships

created because Bernard Marcus and Arthur Blank lost their jobs when the company they worked for, Handy Dan Home Improvement, was taken over by another cooperation. with another co-worker, and they decided to create a better home improvement center called The Home Depot. Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 6 of 10 Copyright 2009 © All Rights Reserved

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in 1979 they had three stores. in 1981 they went public with their stock and gained 4 million dollars. using this money, they flooded nearby states with more stores.. sales into the ten millions. mid-1980s saw them computerize their business computerized checkout systems and item lookups at that time. over 100 new stores were added. 1988 sales were over $2 billion. now the largest home improvement center retailer in the US. Recently branched out to Canada, Mexico, Central America, and South America. home owners, renovators, construction companies, electricians, plumbers, and decorators, landscape gardeners steadily buy from them. still expanding; going to provide farming, ranching supplies. lumber and building supplies account for 34% of their sales. paint and other for 11%. plumbing, heating, and electrical for 28%. tools for 13%. seasonal items for 14% The Home Depot(R), the world's largest home improvement retailer, today announced that its board of directors declared a third quarter cash dividend of 22.5 cents per share. The dividend is payable on December 13 to shareholders. (From Atlanta, November 15, 2007.) Crystal Award for minority business development from the Minority Supplier Development Council (GMSDC), May 2007 No. 5 Ranking for Most Environmentally and Socially Responsible Companies from the Natural Marketing Institute, March 2007 No. 25 on Fast Company 50 for Forest Friendly Construction, March 2007

Fiscal 2006 Compared to Fiscal 2005 We generate $7.7 billion of cash flow from operations in fiscal year 2006. We used this cash flow, along with the net proceeds of additional borrowings of $7.6 billion, to fund $8.1 billion of share repurchases and dividends, $4.3 billion in acquisitions and $3.5 billion in capital expenditures. At the end of fiscal2006, our long-term debt-to-equity ratio was 47%. Our return on invested capital (computed on beginning long-term debt and equity for the trailing four quarters) was 20.5% at the end of fiscal 2006 compared to 22.4% for fiscal 2005. Net Sales Total Net Sales for fiscal 2006 increased 11.4%, or $9.3 billion, to $90.8 billion from $81.5 billion forfiscal 2005. Of the $9.3 billion increase, $7.3 billion, net of intercompany sales, came from our HDSupply segment and $2.0 billion came from our Retail segment.Net Sales for our Retail segment were $79.0 billion for fiscal 2006, a 2.6% increase over fiscal 2005.Fiscal 2006 Retail segment Net Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 7 of 10 Copyright 2009 © All Rights Reserved

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Sales growth was primarily driven by sales from new stores. Retail comparable store sales decreased 2.8% for fiscal 2006 compared to an increase of 3.1% for fiscal 2005. The decline in retail comparable store sales was driven by a 4.6% decline in comparable store customer transactions offset in part by a 1.6% increase in average ticket. Our average ticket increased to $58.90 for fiscal 2006 and increased in 8 of 10 selling departments. The decrease in retail comparable store sales for fiscal 2006 was due to the significant slowdown in the U.S. retail home improvement market as well as difficult year-over-year comparisons due to sales arising from hurricane activity in fiscal 2005.

Both Canada and Mexico, however, experienced positive retail comparable store sales for fiscal 2006. Additionally, our retail comparable store sales results reflect in part the impact of cannibalization. In order to meet our customer service objectives, we strategically open stores near market areas served by existing stores („„cannibalize‟‟) to enhance service levels, gain incremental sales and increase market penetration. Our new stores cannibalized approximately 13.5% of our existing stores during fiscal 2006, which had a negative impact to retail comparable store sales of approximately 1.9%. Despite the difficult U.S. retail home improvement market, we continued to expand our retail services revenue, which increased 8.3% to $3.8 billion for fiscal 2006 from $3.5 billion for fiscal 2005. The growth in retail services revenue was driven by strength in a number of areas including countertops, exterior patios, solar, windows and HVAC. Our retail services programs focus primarily on providing products and services to our do-it-for-me customers. Our services revenue is expected to benefit from

Home Depot Stock price increases through 25 months

Some of the information for this activity came from www.MoneyInstructor.com. A wonderful site for economic lessons.

Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 8 of 10 Copyright 2009 © All Rights Reserved

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*Note concerning rubrics: Each performance task is accompanied by two rubrics. The first is designed to address content and understanding of the standards in terms of the enduring understandings. The second rubric focuses on the product of the performance task. This is where students are scored on items involving grammar, punctuation, spelling, creativity, presentation, etc. It is NOT intended that each rubric counts for 50% of the assessment. It is expected that the content rubric carry more emphasis when grading.

Scale Criteria

Content Rubric for Performance Task 1 2 3 Standard Not Met Needs Improvement Meets Standard

4 Exceeds Standard

Synthesizes and explains how Coca-Cola Company benefits from and fits into the location, customs, beliefs, and laws of the society in which they are producing and distributing their goods for consumption.

Shows no synthesizes of the company‟s place in the community and role in society.

Discusses in limited terms the company‟s relationship and benefits from the various communities within which it is located, and limited synthesis of how the company and its product reflects the society‟s customs and beliefs.

Discusses the company‟s relationship and benefits from the communities within which it is located, and discusses how the company and its product reflect the society‟s customs and beliefs.

Discusses the company‟s relationship and benefits from the communities within which it is located, and discusses how the company and its product reflect the society‟s customs and beliefs. Additionally, shows understanding of how the company might change the society and how the society might change the company.

Analyzes how the Home Depot Company benefits from and fits into the location, customs, beliefs, and laws of the society in which they are producing and distributing their goods for consumption.

Shows no synthesizes of the company‟s place in the community and role in society.

Discusses in limited terms the company‟s relationship and benefits from the various communities within which it is located, and limited synthesis of how the company and its product reflects the society‟s customs and beliefs.

Discusses the company‟s relationship and benefits from the communities within which it is located, and discusses how the company and its product reflect the society‟s customs and beliefs.

Discusses the company‟s relationship and benefits from the communities within which it is located, and discusses how the company and its product reflect the society‟s customs and beliefs. Additionally, shows understanding of how the company might change the society and how the society might change the company.

Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 9 of 10 Copyright 2009 © All Rights Reserved

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Product Rubric for Performance Task Scale Criteria

1 Below Expectation

2 Needs Improvement

3 Meets Expectation

4 Exceeds Expectation

Students produce a product that is attractive.

Use of font, color, graphics, effects, etc., but these often distract from the presentation of content.

Makes good use of font, color, graphics, effects etc. to enhance the presentation.

Makes excellent use of font, color, graphics, effects, etc. to enhance the presentation.

Students produce a product that is organized.

There was no clear or logical organizational structure, just lots of facts.

Makes use of font, color, graphics, effects, etc., but occasionally these detract from the presentation of content. Content is logically organized for the most part.

Uses headings or bulleted lists to organize, but the overall organization of topics appears flawed.

Content is well organized using headings or bulleted lists to group related material.

Students produce a product that exhibits proper mechanics.

More than 4 errors are spelling or grammar.

Four misspellings and/or grammatical errors.

Three or fewer misspellings and/or grammatical errors.

No misspellings or grammatical errors.

Resources for Unit www.moneyinstructor.com/ for links to the site below Coke and HD. www.gcee.org Georgia Council on Economic Education Georgia Economic Initiatives www.ja.org Junior Achievement http://moneycentral.msn.com/detail/stock_quote?Symbol=US:KO for daily information on Coca-Cola performance on the stock market. www.coca-cola.com http://search.live.com/results.aspx?q=Home+Depot&go=Search&form=QBRE&adlt_set=strict for daily information on Home Depot performance on the stock market. www.homedepot.com http://www.thecocacolacompany.com/investors/annualandotherreports/2006/financial_highlights.html This unit was created by Faye Smith and Evie Stephens. The unit was approved by the Social Studies Advisory Council and the Georgia DOE Social Studies staff. This document was last updated on 11/16/09 by Shaun Owen ([email protected]).

Georgia Department of Education Kathy Cox, State Superintendent of Schools EIGHTH GRADE FRAMEWORK UNIT 13 UPDATED 11/16/09  Page 10 of 10 Copyright 2009 © All Rights Reserved