Big Banks, Piggy Banks

EDUCATOR'S VERSION

This lesson printed from:
http://www.econedlink.org/e455

Posted November 4, 2003

Standards: 2, 10, 12

Grades: K-2, 3-5

Author: Patricia Bonner

Posted: November 4, 2003

Updated: January 22, 2013

DESCRIPTION

When choosing a place to put their money, people consider how safe there money will be, how easy it is to access, and whether it will earn more money. Students explore how well different savings places achieve these objectives. Students learn that people who don’t want to carry money with them or keep it at home often choose to put their money in a savings account at a bank or credit union. These financial institutions protect money from theft and other losses. They also pay interest on money deposited. This lesson works well as a follow-up to the ABCs of Saving.

KEY CONCEPTS

Banking, Choice, Decision Making, Interest, Money Management, Savings

STUDENTS WILL

  • Identify the advantages and disadvantages of saving at home or saving in a bank.
  • Choose the appropriate savings place for having money easily available, having it earn interest, and having it be safe.
  • Recognize that saving means not spending.

INTRODUCTION

Inform your students that there are many places where people can keep their money. Tell the students that depending on what they want to do with their money, some places are better than others.


PROCESS

 NOTE: Be sure to tell students what a credit union is. At this age, students should not be excepted to know what one is, and therefore, a definition of a credit union should be provided.

ACTIVITY 1:

Follow along with this informational activity to learn all about where you can keep your money.

THINK ABOUT IT:

  • Where are some places people put money they carry with them? [Possible answers include a pocket, wallet, purse and backpack.]
  • When would keeping money in your pocket or a wallet be a good idea? [When you plan to use the money soon such as for school lunch or bus fare.]
  • What are some other places besides a piggy bank where you could keep money safe at home? [Containers may be a cookie jar, sock, glass jar, coffee can,. Locations for the container include a closet, drawer or cabinet.]
  • Why would putting your money in a bank be better than putting it in piggy bank? [When you have a lot of money that could be lost or stolen, you don't want to use the money right away, and you don't want to be tempted to spend it. Also if you want to earn interest.]

NOTE: For students with limited reading skills, you can project this activity via an LCD projector or TV monitor and read the text to the students. Click on these links: Adventure  Stories to upload the files. Use the Space Bar to advance the stories. (if the file doesn't show up right away; refresh your screen)

ACTIVITY 2:

When you go to a bank or credit union, what would you expect to see? Complete this interactive activity to see if you know what belongs in a bank and what doesn't!

More Fun! 

The Adventures of Dollar Bill talks about the meaning of the terms deposit, balance, and withdrawal.

The Adventures of Interest Ray explains what interest is, how people get it, and why the bank gives it to people. Use the Space Bar to advance the stories. (if the file doesn't show up right away; refresh your screen)

CONCLUSION

There are many different places people can put money and other things they value to protect the items from being lost or stolen. The advantage of putting money in a savings account at a bank or credit union is that money grows if it is deposited here. Banks and credit unions pay us interest for letting them use our money.

ASSESSMENT ACTIVITY

EXTENSION ACTIVITY

  1. At the end of Adventures with Dollar Bill, students are given the option of taking a second online tour. The Adventures of Interest Ray explains what interest is, how people get it, and why the bank gives it to people.
  2. Download the Piggy Bank Wrapper and print copies for students to attach to a coffee can. Source: American Savings Education Council.
  3. Write the words "deposit" and "withdrawal" on the board. Put a plus sign next to the word "deposit" and tell the students that when people put money in a savings account at a bank or credit union they are making a deposit. Next, put a negative sign beside the word "withdrawal" and explain that people make a withdrawal when they take money out of a savings account. Divide the students into teams or small groups. Provide each group with a copy of the Savings Account Activity. Use the Number Deposit/Withdrawal Cards. Have the students shuffle the cards and stack them face down on a flat surface. To play, students take turns drawing a card from a stack. The student who draws the card must identify the value of the card and note if it is a withdrawal or a deposit. The student then adds or subtracts the amount to or from his or her balance (start the activity by provided each group with a starting balance). The other members of the team should check the player's math. Have the students continue to take turns until they fill the last box on the sheet (or have a zero balance).
  4. Take a field trip to a local bank or credit union. Watch customers depositing money and take a tour of the vault. Find out how people use safety deposit boxes. Ask a manager to talk about the financial institution, telling how it works and what its workers do.