Mapping Wealth Lesson Plan Mapping Wealth Lesson Plan
Grade 11-12
The Economic Legacy of Redlining
Learning Objective
Students will evaluate the long-term economic impact of the Home Owners' Loan Corporation (HOLC) maps on generational wealth by calculating hypothetical equity growth over three generations.
Video Resource
Status and Class - Divisions and Opportunities
Focus Segment: 10:00 – 11:15 (Economic Impact)
https://www.youtube.com/watch?v=WHd7JyLOQsI
Materials
Student Worksheet
Data Sheets (in Worksheet)
Wealth Gap Rubric
Projector/Screen
Calculators
Instructional Sequence
Min
10
Warm-up: Equity vs. Equality
Display two images: one showing people of different heights standing on boxes to see a game (Equity/Equality) and one showing a modern suburban home.
Discussion: Define home equity (the value of the home minus the debt). Why is this the "nest egg" for most American families?Quick Poll: How much of your wealth do you think comes from your house vs. your job?
Min
10
Video Viewing & Analysis
Watch the segment from 10:00 to 11:15.
Focus: How did "low-cost, government-backed loans" change the lives of people in green zones?Pause Points: At 10:45, ask students to list three things equity can be used for (college, business, home improvement).
Min
20
Project: Generational Wealth Calculator
Students work in pairs to simulate two family histories from 1940 to 2000.
Family A (Green Zone): Allowed to buy a \$5,000 home with an FHA loan.Family B (Red Zone): Denied loan; forced to rent.Task: Use the appreciation and interest charts to calculate total wealth after 60 years.
Min
05
Closure: The Mirror of Policy
Class discussion: If redlining was made illegal in 1968, why do we still see the effects today? Use the calculation results to support the argument that history isn't just "in the past"—it's in the bank account.
Differentiation
Scaffolding: Provide a pre-filled Gen 1 calculation for students struggling with percentages. Extension: Have students research the current zip code demographics of a redlined area in their own state.
Key Vocabulary
HOLC, Redlining, Equity, Generational Wealth, FHA, Social Contract, Subsumed.
Wealth Gap Worksheet The Wealth Gap Worksheet
History of Economic Inequality & Redlining
Student:
Date:
Part 1: Defining the Terms
Home Equity
Explain in your own words why equity is considered an "asset."
Equality vs. Equity
How does this apply to access to housing loans?
Part 2: Video Investigation (10:00 – 11:15)
1. According to the video, what were the "blue and green" areas allowed to do with their increasing home value over time?
2. Define "Redlining" based on the critics' perspective shown in the film.
The HOLC Legacy
In 1935, the Home Owners' Loan Corporation (HOLC) created "Residential Security" maps of 239 cities. They used four colors. Green was "Best," Blue was "Still Desirable," Yellow was "Definitely Declining," and Red was "Hazardous."
Generational Wealth Calculator
A 60-Year Financial Simulation
Scenario A: Green Zone
Buys a house in 1940 for \$5,000 using a 3% interest FHA loan. House value increases by 5% every year due to community investment.
Scenario B: Red Zone
Loan denied. Forced to rent. Monthly rent is \$30 in 1940. No equity is built. Rent increases 3% every year. Savings are spent on rent.
Time Period Family A (Green Zone) Value Family B (Red Zone) Value 1940 (Gen 1) Initial Purchase / Start Asset Value: $5,000
|
Asset Value: $0
|
| 1970 (Gen 2)
Value (x4.32 appreciation):
Hint: Multiply 1940 value by 4.32
|
Total Savings:
Rent was paid monthly; 0 equity.
|
| 2000 (Gen 3)
Value (x4.32 again):
Hint: Multiply 1970 value by 4.32
|
Net Wealth:
Comparison to Family A?
|
Critical Reflection
1. Looking at your final numbers for the year 2000, what is the dollar difference in wealth between the two families?
2. Family A decided to use their home equity in 1970 to send their child to college. Family B had to take out high-interest loans for college. How does this decision impact the Gen 3 results?
3. If a government policy from 1940 created this gap, whose responsibility is it to fix it today? Explain your reasoning.
Wealth Gap Rubric Wealth Gap Rubric
Generational Wealth Calculator Project Assessment
Total Points: 40
History & Economics
Criteria Exemplary (10) Proficient (8) Developing (6) Beginning (4) Calculation Accuracy Math applied to appreciation & rent scenarios.
| Calculations for all generations are 100% accurate; clear showing of work. | Calculations are mostly accurate with 1-2 minor arithmetic errors. | Multiple errors in calculations; struggle to apply appreciation formulas. | Calculations are incomplete or significantly inaccurate. |
| Economic Concept Mastery
Equity, Redlining, and HOLC impacts.
| Deep understanding of how policy directly links to the final wealth gap. | Clear understanding of redlining and equity; minor gaps in technical terms. | General understanding, but struggles to link policy to the specific math results. | Confusion regarding the impact of HOLC maps or equity. |
| Critical Analysis
Evaluation of long-term impact in final questions.
| Analysis provides nuanced, evidence-based arguments connecting past to present. | Analysis clearly answers prompts using data from the simulation. | Analysis is brief; makes some connections but lacks detail. | Analysis is superficial or does not use evidence from the simulation. |
| Partner Collaboration
Working in pairs to solve the scenarios.
| Partners worked seamlessly; shared tasks and double-checked math. | Effective teamwork; both partners contributed to the final worksheet. | Uneven contribution; one partner dominated the calculations. | Little to no evidence of effective collaboration. |
Grading Note
Prioritize the logic of the simulation over mathematical perfection. The goal is for students to see the scale of the difference—approximately a \$93,000 house in 2000 vs. \$0 in home equity for renters.
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