Online Lesson

Follow us

Big Banks, Piggy Banks

Key Economic Concepts:

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

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.

Lesson Objectives:

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.

Resources:

• Inside the Piggy Bank: This web page shows coins going inside a piggy bank.
  http://www.inmagine.com/izs003/izs003373-photo ^[7]
• The Adventures of Dollar Bill from Sovereign Bank’s Kids Bank: This page uses text and illustrations to explain what happens to money put into a bank savings account and how banks work. It also teaches the meaning of the terms deposit, balance, and withdrawal. It also includes a quiz.
  www.kidsbank.com/the_story/dollar_bill/index.asp ^[2]
   
• Adventures with Interest Ray from Sovereign Bank’s Kids Bank: Also using text and illustrations, this page explains what interest is, how people get it, and why the bank gives it to people. This page also teaches how to look at interest from the saver's as well as the borrower's point of view.
  www.kidsbank.com/the_story/interest_ray/index.asp ^[3]
   
• Coloring Book Page- Everyone Needs a Piggy Bank: Here is a coloring book page.
  www.learntosave.com/colorbookpages/cb_05_MoneyInBanks.htm ^[4]
   
• Coloring Book Page- Opening a Savings Account: Here is a coloring book page. www.learntosave.com/colorbookpages/cb_06_OpenAccount.htm ^[5]
   
• Coloring Book Page- Very, Very Important Vault: Here is a coloring book page.
  www.learntosave.com/colorbookpages/cb_08_Vault.htm ^[6]
   
• Puzzle Page- What Color is Siggy the Piggy Bank: Here is an activity book page.
  www.learntosave.com/puzzlepages/puz_03.htm ^[8]
   
• Puzzle Page- Miggy’s Trip to the Bank: This is an activity book page.
  www.learntosave.com/puzzlepages/puz_07.htm ^[9]
   
• The American Savings Education Council: This page offers a Piggy Bank Wrapper that can be downloaded, printed and attached to a coffee can.
  www.ebri.org/pdf/wrapper.pdf ^[10]
   
• Merriam- Webster: Check this online Dictionary and Thesaurus for definitions of the following words.
  (Withdrawal: removal from a place of deposit or investment.
  Deposit: to place especially for safekeeping or as a pledge; especially : to put in a bank.
  Balance: an amount in excess especially on the credit side of an account.)
  www.merriam-webster.com/ ^[11]
   
• Kid's Bank: KidsBank.com is a tutorial website brought to you by Sovereign Bank that explains the fundamentals of money and banking to children.
  www.kidsbank.com/parents/index.asp ^[1]
  
• Savings Account Math Activity Worksheet.
  www.econedlink.org/lessons/docs_lessons/455_savingsaccount_activity1.pdf
  
• Number Deposit/Withdraw Cards.
  www.econedlink.org/lessons/docs_lessons/455_mathgame_cards1.pdf
  

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:

Click here 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, an audio clip of the text is provided. If you prefer, you can project this activity via an LCD projector or TV monitor and read the text to the students. Sovereign Bank allows downloading of its adventure stories at www.kidsbank.com/parents/index.asp ^[1] . Pages will load more quickly when you are ready to use them.

ACTIVITY 2:

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

More Fun!

Adventures with Dollar Bill ^[2] talks about the meaning of the terms deposit, balance, and withdrawal.

Adventures with Interest Ray ^[3] explains what interest is, how people get it, and why the bank gives it to people.

Click and print out one of these pages to color:
- Everyone Needs a Piggy Bank (www.learntosave.com/colorbookpages/ cb_05_MoneyInBanks.htm ^[4] )
- Opening a Savings Account (www.learntosave.com/colorbookpages/ cb_06_OpenAccount.htm ^[5] )
- Very, Very Important Vault (www.learntosave.com/colorbookpages/cb_08_Vault.htm ^[6] )

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:

Have your students click here to answer the questions True or False.

Answers to the questions are as follows:
1. Your wallet is a good place to keep money so that you don't spend it. [false]
2. A bank is the best place to keep your money so that it doesn't get stolen or lost. [true]
3. A bank pays you interest. [true]
4. A bank is the best place to put your money if you want to spend it today. [false]
5. A piggy bank is the best place to put your money that you don't want to spend until next year. [false]

Extension Activity:

1. At the end of Adventures with Dollar Bill, students are given the option of taking a second online tour. Adventures with Interest Ray (www.kidsbank.com/the_story/interest_ray/index.asp ^[3] ) explains what interest is, how people get it, and why the bank gives it to people.
2. Download the Piggy Bank Wrapper (www.ebri.org/pdf/wrapper.pdf ^[10] ) 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. Depending on the grade level being taught you will have a choice of two sets of cards to print and cut out. If you are teaching grades K-2 use the Coin Deposit/Withdrawal Cards. If you are teaching grades 3-5 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. Students must do simple money math problems on their way to the bank (www.learntosave.com/puzzlepages/puz_07.htm ^[9] ).

Links Used:

1. ^{^ ^} "www.kidsbank.com/parents/index.asp" - (www.kidsbank.com)
2. ^{^ ^} "www.kidsbank.com/the_story/dollar_bill/index.asp" - (www.kidsbank.com)
3. ^{^ ^ ^} "www.kidsbank.com/the_story/interest_ray/index.asp" - (www.kidsbank.com)
4. ^{^ ^} "www.learntosave.com/colorbookpages/cb_05_MoneyInBanks.htm" - (www.learntosave.com)
5. ^{^ ^} "www.learntosave.com/colorbookpages/cb_06_OpenAccount.htm" - (www.learntosave.com)
6. ^{^ ^} "www.learntosave.com/colorbookpages/cb_08_Vault.htm" - (www.learntosave.com)
7. ^{^} "http://www.inmagine.com/izs003/izs003373-photo" - (www.inmagine.com)
8. ^{^} "www.learntosave.com/puzzlepages/puz_03.htm" - (www.learntosave.com)
9. ^{^ ^} "www.learntosave.com/puzzlepages/puz_07.htm" - (www.learntosave.com)
10. ^{^ ^} "www.ebri.org/pdf/wrapper.pdf" - (www.ebri.org)
11. ^{^} "www.merriam-webster.com/" - (www.merriam-webster.com)

Teacher Reviews

Insert a comment, suggestion or review of this lesson here. The comments will not appear immediately due to a time delay to allow for a review by a member of our staff.