Brite Star Learn About Money "The Big Deposit"

The Big Deposit A Brite Star Learn About Money Copyright © 2023 by The Brite Star Foundation, Inc., a 501 (c)3 All rights reserved.

Published by The Brite Star Foundation, Inc. 11411 Southern Highlands Parkway Suite 338 Las Vegas, Nevada 89141 Vincent W. Goett, Publisher

ISBN Paperback

979-8-89750-286-8

Digital

979-8-89750-287-5

No part of this publication may be reproduced in whole or in part, or stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without written permission of the publisher.

It had been over twomonths since the Brite Star Kids started their businesses. Today wasthe day the class would present their business results to Ms. Betty, Banker Will and Banker Nat to see which business would win First Prize. Everyone dressed in their nicest clothes and looked very professional to make their presentations. As usual Hudson wore his bow tie. Even Miles and Leo wore dress shirts and ties today.

Banker Nat, Banker Will and Ms. Betty welcomed the students as they entered the classroom.

“Class, weare excited to hear about the results of your businesses,” said Ms. Betty.

“Before you started planning your business Banker Will taught you how a business makes money and the items needed to start a business,” said Banker Nat. “Today wewill hear the results of your business,” said Banker Will.

Everyone wasa little nervous to maketheir presentations.

“I’m going to give you a couple sheets of paper to fill out before wehear about your businesses,” said Banker Will. “The first one is a balance sheet and the second one is an incomestatement.”

Banker Will and Ms. Betty passed out the forms to the kids. Everyone wondered whatthey were supposed do with them.

“Now, listen to Banker Will. He will tell you how to fill each sheet in. Get your pencils ready,” said Ms. Betty.

“Let’stalkaboutthebalancesheet,”said Banker Will. “LeoandMiles,let’s useyour pizza business asanexample.”Hewroteon theboard: Assets= Liabilities +Equity.

“Assetsarethingsyour business owns.Things like inventory, equipment, cashandmoneyowedto you or receivables,”hesaid.‘‘Let’s addupyour assets.”

“Wehave$62.00 in cash.HotPoucheswebought for $5.00, $12.00 worthof ingredients andfriends owe$6.00 for pizza theybought,”saidLeo. “Totalassetsare$85.00,” yelled Hudson.

“Right,”said BankerWill. “Eachteamfill in your assetsandwritetheamountin theassetbox.”

“Now, Leo whatare your liabilities?” asked Banker Will. “Liabilities are money your business owes. Things like rent, money you borrowed to buy ingredients or loans you made to start your business,” he said.

“We pay $2.00 rent to Big Leo and Leo’s mom loaned us the $2.00 for that,” said Miles. “That loan is a liability.”

“Don’t forget the ingredient loan of $8.00 from Big Leo,” said Leo. “Total liabilities are $10.00,” yelled Jimmy

“Now, the rest of you figure out your liabilities and fill in the liability box,” said Banker Will.

“Finally, remember whatI said earlier that Assets equals Liabilities plus Equity,” said Banker Will.

He wrote on the board: Assets $85.00 Liabilities $10.00 “How much equity does the Leo and Miles pizzeria have?”

“Easy, $75.00,” said Hudson.

Banker Will wrote Equity and totaled the amount.

Assets $85.00 =Liabilities $10.00 + Equity $75.00 “Great job, now fill the equity box for your businesses and total the sheet,” said Banker Will.

“Now, let’s fill in the second sheet, called the income statement,” said Banker Will. “This tells us how much your business earned over the last two months. Leo, how much money did you make from pizza you sold?

Wecallthis revenue,” saidBanker Will. “$73.00 wasour revenue,” said Miles.

“Good! Now how much did it cost to makethat pizza?

Expenses are things like rent, ingredients and loan payments.”

“We spent $10.00 on ingredients and $2.00 on rent for a total of $12.00 in expenses,” said Leo. Banker Will wrote: IncomeStatement

Revenue $73.00 - Expenses $10.00 =Net Income “What is the net income?” asked Banker Will. “$63.00,” replied Landon.

“Everyone fill in your second sheet now,”said Banker Will.

All the business teams filled out their balance sheets and income statements.

Once they finished, Ms. Betty announced that each team would now present their business results and explain their balance sheet and income statement. One by one the business partners stood in front of the class and presented their businesses.

Finally all the teams had presented their businesses except one—Alex and Liz and their magic business.

“Hello, Alex and Liz. Nice to see you again,” said Banker Nat. “Alexand Liz cameinto the bank with their dad a few weeks ago and opened accounts,” explained Banker Nat. Alex and Liz showed their balance sheet and income statement. Then, rather than a presentation they performed a magic show. The class loved the show and cheered when it wasover.

Banker Nat, Banker Will and Ms. Betty gathered and quietly discussed all the businesses so they couldaward1stPrize.

The class could hardly stand the suspense of which business wouldwin.

Finally Banker Nat spoke, “First of all, we’d like to congratulate all of you on your super businesses. They were all great,” she said.

“Yes, but who won, Banker Nat?” asked Miles.

“Well Miles, no one won,” said Banker Nat. “We decided you all are winners and every business partner will get $25.00 to deposit in the Brite Star Bank,” said Banker Nat. “Yahoo!” the kids all cheered!

The nextday the whole class went to the Brite Star Bank with their parents. They were greeted by Banker Nat, Banker Will and Teller Julie. “Welcome kids, come in. We will help you get your bank accounts set up with your first deposits,” said Banker Nat.

Think About It 1. What were the two forms the kids needed to fill out?

2. What wasthe formula to find assets?

3. What does assets mean?

4. What does liabilities mean?

5.

What does equity mean?

Let’s Work Together!

Have you ever thought about howmuchplanning goes into starting a business? Do your parents owna business? If so, talk withthem about their planning. Think about small businesses in your townand howmuch it costs to keep themup and running.

Iwill . . .

• Talkto the owner of asmall business in my townto learn more about running a business.

• Encourage my parents to shop at local businesses instead of chains or online.

• Start keeping track of howmuchmoney Isave and howmuchI spend.

Local smallbusinesses often can’t compete withbig chain stores or online websites. Whenever possible make your purchases at local shops, even if it costs a bit more. Help themstay in business!