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Savings

Main Core Tie

Adult Roles and Financial Literacy
Strand 7 Standard 4

Authors

CTE LESSON PLANS

Summary

Students will understand the value of savings, identify ways and reasons to save, and how government regulations protect savers.


Materials


Instructional Procedures

Vocabulary
Use the vocabulary worksheet and key (pdf).

Primary Vocabulary

  • Savings
  • Risk
  • Return
  • Liquidity
  • FDIC- Federal Depository Insurance Corporation
  • SAIF- Savings Association Insurance Fund
  • NCUA- National Credit Union Association
  • Savings Account
  • Passbook Savings Account
  • Statement Accounts
  • Interest -- Earning Checking Account
  • Money-Market Deposit Account
  • Certificate of Deposit

Supplementary Vocabulary

  • Bathtub Analogy
  • Compounding Interest
  • Fixed Interest Rate
  • Inflation
  • Interest
  • Interest Rate
  • Investing
  • Money Market Account
  • Pay Yourself First
  • Principal
  • Rule of 72
  • Savings Account
  • Savings Bonds
  • Simple Interest
  • Time Value of Money

FCCLA Activity Option
Consult the FCCLA Financial Fitness website.

  • Banking Basics - Conquer bank accounts, credit, and investments
  • Cash Control - Track and plan personal spending
  • Making Money - Sharpen on-the-job financial fitness
  • Consumer Clout - Become a savvy spender
  • Financing Your Future - Apply financial skills to real life.

Introduction
Motivator
Read the book Alexander Who Used to Be Rich Last Sunday by Judith Viorst in order to introduce the concept of savings. While reading the book have the students answer the questions below on their worksheet:

  • What were some of the options or suggestions that Alexander was given on what to do with his dollar?
  • What did Alexander actually do with his money?
  • How did Alexander feel after all his money was gone?
  • In your opinion, what did Alexander do wrong?
  • In what ways have you been like Alexander? Give two specific examples. Be prepared to share during class discussion.

Have students answer the questions on the Alexander Who Used To Be Rich Last Sunday worksheet (pdf).

Content Outline, Activities and Teaching Strategies
(All options do not necessarily need to be taught. Select ones to cover standards and objectives and according to your district policies.)

Option 1: Lecture/Discussion on Value of Savings
Use the Value of Savings Lecture Notes (pdf) to have a class discussion.

Option 2: Savings Content
Using the Savings Transparencies (pdf) and Who Protects Savers Transparency (pdf) (or you can make them into a PowerPoint) present the information on the different types of savings accounts and have students follow along with the Value Of Savings Worksheet (pdf).

Option 3: Spend or Save Story
Follow the steps on the Spend or Save Story handout (pdf) to access the saving lesson plan with the story of Penny. Simple story and activities to illustrate the concept of savings.

Option 4: Children's Savings Book
Have the students complete the Children's Savings Book (pdf) to illustrate the concept of saving or investing that they have learned. They can then be donated to a local elementary school or library.

Option 5: Age Group Activity for Savings
Put Age Group Titles (pdf) around the room on white paper, laminate them on poster board, or write them on butcher paper. Divide students into small groups and have each group brainstorm activities and events that would require savings for their assigned age group. Discuss the results of each age group and emphasize that savings needs to be a part of our financial plan no matter what age we are.

Option 6: Bumper Sticker
Create a Bumper Sticker (pdf), billboard, or print ad in the box below or on a separate piece of paper encouraging your peers to save. Be creative!

Option 7: Hands on Banking Savings Lesson Plans

Step #1: Step #1: Go to the following website: www.handsonbanking.org
Step #2: Click on Teacher Resources, click on Teens.

Unit Three: Savings and Checking Section One: Savings
P. 41 -- Earning Interest -- Simple and Compound
P. 45 -- Savings Deposit Worksheet
P. 48 -- Saving Withdrawal Worksheet
P. 51 -- Saving Register Worksheet
P. 54 -- Saving for Long Term Goals Worksheet

(You can print off a guide or you can use the information in order to have a hard copy of one.)

Option 8: Practical Money Skills Savings Lesson Plans

Step #1: Go to the following website: http://www.practicalmoneyskills.com
Step #2: Click on At School, then click on Teens
Step #3: Click on Lesson 12 Saving and Investing

Possible Activities:
12-A Pay Yourself (A Little Can Add Up)
12-B Types of Savings Accounts
12-C Money Market Deposit Accounts
12-D Certificates of Deposits (CDs)
12-E How Simple and Compound Interest are Calculated
12-F Choosing a Savings Account
12-G Truth in Savings Act
12-H The Rule of 72

Option 9: Survey/Interview
Have students talk to several friends and relatives about the methods they use to save and invest for various financial goals. (What types of saving accounts and investments do they use?)

Option 10: Shopping for a Savings Account Field Activity
Have students compare saving rates at various financial institutions at local banks and credit unions.

Summary/Evaluation
Americans are spenders. They have a hard time saving money for emergencies and to meet future financial goals. Saving is difficult for many people because it involves decreasing current consumption and investing in a future standard of living. Individuals incorrectly view savings as what is remaining after their current wants and needs have been satisfied. The future is an unknown risk for people, which is one of many reasons why they have such difficulty saving money. Without developing a savings and investing plan, individuals will not have the financial means to meet future financial goals such as purchasing a car, putting a down payment on a home, and meeting retirement needs.


Created: 07/14/2011
Updated: 02/05/2018
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