This lesson will show students the importance of keeping track of their savings.
The picture book One Hen: How One Small Loan Made a Big Difference, written by Kate Smith Milway, takes place in Africa. Here in a Ghanan village, young Kojo cannot afford to go to school after the death of his father. His resourceful mother takes out a small loan and with a few leftover coins he buys a chicken. Soon he is selling eggs and with the profit slowly acquires a large flock. Kojo is able to complete his education and establishes a business that becomes the foundation of his entire community. Upon adulthood, Kojo loans money to aspiring entrepreneurs and the cycle of economic growth continues. Based on a real-life story, this upbeat microfinance story helps students grasp economic and personal finance concepts and admire creative problem solving.
We save money to get things we can’t afford to buy now. Saving for the future requires patience but it can be worth it when we get what we want the most. Successful savings depends on three elements which are presented to students as the ABCs of saving. A is for Aim: setting a goal. B is for Bank: creating a place to put savings. C is for Coins and currency: making saving money a habit. Students participate in an activity in which they must distinquish between short-term and long-term goals. In a second activity, they discover that when they decide to save for a future goal, they are giving up the opportunity to buy something now. What they give up is their opportunity cost—the thing they wanted second most. The well-known fable about The Grasshopper and the Ants helps illustrate this point. Big Banks, Little Banks (http://???) can be used as a follow-up lesson introducing students to the advantages and disadvantages of different savings places.
The following lessons come from the Council for Economic Education's library of publications. Clicking the publication title or image will take you to the Council for Economic Education Store for more detailed information.
This interdisciplinary curriculum guide helps teachers introduce their students to economics using popular children's stories.
23 out of 29 lessons from this publication relate to this EconEdLink lesson.
This publication contains 15 lessons that complement the 3-5 Student Workbook. Specific to grades 3-5 are a variety of activities, including a guessing game using clues to identify various occupations; the story Urban Mouse and Rural Mouse which teaches students about entrepreneurs and opportunity recognition; and a role-playing activity in which students learn which method of payment is appropriate in a variety of situations.
11 out of 17 lessons from this publication relate to this EconEdLink lesson.
Designed primarily for elementary and middle school students, each of the 15 lessons in this guide introduces an economics concept through activities with modeling clay.
10 out of 17 lessons from this publication relate to this EconEdLink lesson.