High School Financial Literacy Lesson Plan: Inflation vs. Pay Raises (Broward Focus)
- The Chairman
- 1 hour ago
- 3 min read
Lesson snapshot
Grade: 9–12
Time: 1 class period (55–90 minutes)
Essential Question: If prices rise 3% per year, what size raise do you need to truly “break even”?
Sunshine State Standards (Florida Financial Literacy)
Use these Florida Financial Literacy benchmarks:
(These benchmarks appear in Florida’s Social Studies/Financial Literacy strand materials.) (Florida Department of Education)
Broward teacher pay reference point (for the math)
To ground the numbers in Broward, we’ll use a public estimate for BCPS teacher pay:
Indeed estimate: “Average Broward County Public Schools Teacher yearly pay… approximately $52,440.” (Indeed)
Context: BCPS also publishes salary schedule info for teachers (district HR pages), showing how pay is structured. (Broward County Public Schools)
For this lesson’s calculations, we’ll use $52,440/year as the sample salary. (Indeed)
Part A — Inflation (3%): How purchasing power falls
Key idea (student-friendly)
If inflation is 3%, your money buys 3% less over the year unless your income rises enough to match it.
Annual inflation “cost” in dollars
Salary = $52,440
Inflation rate = 3%
Annual purchasing-power loss (in $ terms):0.03 × 52,440 = $1,573.20 per year
Monthly inflation “cost”
$1,573.20 ÷ 12 = $131.10 per month
✅ Interpretation: If your paycheck doesn’t rise, it feels like you’re short about $131.10/month in buying power compared to last year.
Part B — Pay raise (0.55%): What it adds
Annual raise in dollars
Raise rate = 0.55%
0.0055 × 52,440 = $288.42 per year
Monthly raise amount
$288.42 ÷ 12 = $24.04 per month (rounded)
Part C — Compare inflation vs. raise (the “real life” moment)
Monthly comparison
Inflation pressure: -$131.10/month
Raise benefit: +$24.04/month
Net change in purchasing power:$24.04 − $131.10 = -$107.06 per month
Annual comparison
Inflation pressure: -$1,573.20/year
Raise benefit: +$288.42/year
Net purchasing power: -$1,284.78/year
✅ Bottom line: With 3% inflation, a 0.55% raise still leaves the average-salary example about $107/month behind in purchasing power.
Learning targets (students can say “I can…”)
I can calculate the dollar impact of inflation on a yearly salary.
I can convert annual changes into monthly numbers (budget reality).
I can compare a pay raise to inflation and explain “real” vs. “nominal” change. (CPALMS)
Materials
Calculator (phone ok)
Teacher-provided salary scenario sheet (use $52,440 or let groups use different salaries)
Whiteboard or projector
Lesson flow (55–90 minutes)
1) Bell Ringer (5–8 min)
Ask:
“If everything costs 3% more this year, how much more money do you need to live the same lifestyle?”Students answer in words first.
2) Mini-lesson: Nominal vs. Real (8–12 min)
Nominal raise: your pay went up on paper
Real raise: your buying power went up after inflationTie directly to SS.912.FL.4.5. (CPALMS)
3) Guided math (10–15 min)
Do the class example together:
Inflation annual + monthly
Raise annual + monthly
Net monthly and net annual
4) Group Activity: “Break-Even Raise” (15–25 min)
In groups, students compute:
What raise % is needed to offset 3% inflation? (Answer: ~3%)Then extend:
If inflation is 3%, what happens with a 2% raise? 4% raise?
5) Exit Ticket (5 min)
Students must write:
Inflation monthly “cost” on $52,440
0.55% raise monthly gain
One sentence: Did purchasing power rise or fall? By how much per month?
Assessment (quick rubric)
4: Correct calculations + clear explanation of real vs nominal
3: Mostly correct calculations, explanation understandable
2: Some correct steps but errors in conversions/interpretation
1: Minimal attempt
