The Inventory Game—Net Worth and Cash Flow
Students physically move into and out of a “wallet” (a specified area in the room) and note the change in the number of students in the wallet over time, as well as the inflow and outflow rates. This demonstration is then related to the stock (an amount at a point in time) concepts of assets and liabilities and the flow (an amount per unit of time) concepts of income and expenses. Students use this distinction to determine net worth, cash flow, and the relationship between them.
The Making Personal Finance Decisions curriculum teaches valuable personal finance lessons grounded in economic theory. The curriculum is divided into 10 themed units, with each unit containing two lessons. The twenty individual lessons employ a variety of teaching strategies designed to engage students in the learning process and equip them with the knowledge and skills necessary to make informed personal finance decisions. The Inventory Game—Net Worth and Cash Flow is lesson 2A of Unit Two: Planning and Tracking.
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