Class: Senior Secondary School 1 (SS1 / SSS1)
Term: Second Term
Week: 7
Age: 15 years
Duration: 45 minutes
Subject: Salesmanship
Curriculum Theme: Trade
Previous Lesson: Sales.
Topic: FINANCE
Subject Matter: Meaning of finance, Various forms of finance, Definition of financial institutions

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

Define finance.
Identify and explain various forms of finance.
Define financial institutions.

Affective Domain:

Appreciate the importance of finance in business operations.
Value the role of financial institutions in economic development.

Psychomotor Domain:

List examples of financial institutions.
Differentiate between short-term and long-term finance.

Discuss how finance facilitates trade and commerce.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum
State Unified Scheme of Work
A relevant Salesmanship textbook for Senior Secondary Schools

Instructional Materials

The teacher will teach this lesson with the aid of:

Bank brochures
Charts showing financial flows
Posters illustrating different financial institutions

Rationale for the Lesson

This lesson helps pupils understand how money is managed and obtained for personal and business use. Understanding finance is important for pupils to make informed decisions about saving, investing, and borrowing, which are essential skills in daily life and future careers in sales or business.

Prerequisite/Previous Knowledge

Pupils have a basic understanding of trade, money, and the concept of buying and selling.

Lesson Content/Board Summary

FINANCE

Meaning of Finance

Finance refers to the management of money, especially by governments, companies, or individuals. It involves the study of how money is raised, allocated, and managed over time. In business, it concerns the sourcing and use of funds for operations, investments, and growth.

Various Forms of Finance

Finance can be classified based on the period for which funds are needed or obtained. The main forms of finance are:

Short-term Finance: Funds required for a period of less than one year. It is used to meet immediate working capital needs, such as purchasing raw materials, paying wages, or covering daily operational expenses.
- Examples: Bank overdrafts, trade credit, commercial papers.
Medium-term Finance: Funds required for a period ranging from one to five years. It is often used for purposes like purchasing machinery, renovating premises, or expanding operations on a moderate scale.
- Examples: Term loans from banks, hire purchase, leasing.
Long-term Finance: Funds required for a period exceeding five years. It is typically used for major capital expenditures, such as acquiring land and buildings, setting up new factories, or undertaking large-scale expansion projects.
- Examples: Shares (equity), debentures (bonds), long-term bank loans, retained earnings.

Definition of Financial Institutions

Financial institutions are establishments that act as intermediaries between savers and borrowers. They facilitate the flow of funds in an economy by accepting deposits and lending money, thereby helping individuals, businesses, and governments manage their finances and invest for growth.

The following are examples of financial institutions:

Commercial Banks
Microfinance Banks
Insurance Companies
Pension Funds
Investment Banks
Stock Exchanges

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils and asks them to recall what they understand by ‘money’ and how businesses get money to operate. The teacher then introduces the topic “FINANCE” as the management and sourcing of money.
Pupils’ Activity: Pupils respond to the teacher’s questions and listen attentively.
Learning Point: Pupils are prepared for the new lesson and connect it to prior knowledge.

Step 2: Meaning of Finance

Time: 8 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher defines finance as the management of money and funds, explaining its importance for individuals, businesses, and governments. The teacher writes the definition on the board.
Pupils’ Activity: Pupils listen, take notes, and contribute to the discussion by giving simple examples of financial needs.
Learning Point: Pupils understand the basic meaning of finance.

Step 3: Various Forms of Finance

Time: 10 minutes
Teaching Skill: Elaboration/Classification
Teacher’s Activity: The teacher explains the different forms of finance based on duration: short-term, medium-term, and long-term. The teacher provides examples for each, using charts or posters to illustrate.
Pupils’ Activity: Pupils identify the different forms of finance and ask questions for clarification. They note down the examples.
Learning Point: Pupils can differentiate between various forms of finance.

Step 4: Definition of Financial Institutions

Time: 7 minutes
Teaching Skill: Definition/Illustration
Teacher’s Activity: The teacher defines financial institutions as intermediaries that handle money, linking savers and borrowers. The teacher shows bank brochures and discusses their role.
Pupils’ Activity: Pupils listen, define financial institutions in their own words, and identify common financial institutions around them.
Learning Point: Pupils understand what financial institutions are and their basic function.

Step 5: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

What is finance?
Mention two forms of finance and state the period for each.
Define a financial institution.
List two examples of financial institutions.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 5 minutes
Teaching Skill: Summarization/Consolidation
Teacher’s Activity: The teacher summarizes the key points of the lesson, reiterating the meaning of finance, its forms, and the role of financial institutions. The teacher assigns homework: “Research and write short notes on any three financial institutions in Nigeria.”
Pupils’ Activity: Pupils listen to the summary, ask any final questions, and copy down the homework.
Learning Point: Pupils consolidate their learning and prepare for further study.

Lesson Keywords

Finance – The management of money and other assets.
Short-term Finance – Funds needed for less than one year.
Medium-term Finance – Funds needed for one to five years.
Long-term Finance – Funds needed for more than five years.
Financial Institution – An organization that deals with financial transactions, such as banks or insurance companies.

Differentiation

For pupils who grasp concepts quickly, the teacher can encourage them to research specific financial products offered by banks. For pupils needing more support, the teacher will provide simplified definitions and more direct examples, possibly pairing them with faster learners for peer tutoring.

Note for teachers using this lesson plan

Ensure to use real-life examples relevant to the pupils’ environment when discussing forms of finance and financial institutions. Encourage interaction and questions to foster a deeper understanding of these concepts, which are fundamental to personal and business financial literacy.