Teacher's Version
This lesson printed from http://www.econedlink.org/lessons/index.php?lesson=455&page=teacher
November 4, 2003
Key Economic Concepts:
- Banking
- Choice
- Decision Making
- Interest
- Money Management
- Savings
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.
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.
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.
- Where You Can Keep Your Money: Students can read along with this interactive activity that teaches them about places they can keep their money.
Where You Can Keep Your Money
- 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]
- A Trip To The Bank: Students can complete this interactive activity to learn what belongs and what does not belong in a bank.
A Trip To The Bank Activity
- 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]
- Big Banks, Piggy Banks Quiz: Use this quiz to assess your students understanding of this lesson.
Big Banks, Piggy Banks Quiz
- 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 [4]
- Savings Account Activity: The worksheet goes along with the deposit/withdrawal cards and allows students to practice keeping track of their savings account balance.
Savings Account Balance Sheet
Number Deposit/ Withdrawal Cards
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, 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 [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? Complete this interactive activity 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.
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.
Have your students take the following quiz and 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]
- At the end of Adventures with Dollar Bill, students are given the option of taking a second online tour. Adventures with Interest Ray [3] explains what interest is, how people get it, and why the bank gives it to people.
- Download the Piggy Bank Wrapper [4] and print copies for students to attach to a coffee can. Source: American Savings Education Council.
- 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).
- 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.
Links Used:
1. ^ ^ "Kid's Bank" - (www.kidsbank.com) A tutorial website brought to you by Sovereign Bank that explains the fundamentals of money and banking to children.
2. ^ ^ "The Adventures of Dollar Bill" - (www.kidsbank.com) This page explains what happens to money put into a bank savings account and how banks work, through a fun and interactive story.
3. ^ ^ ^ "Adventures with Interest Ray" - (www.kidsbank.com) This page explains what interest is, how people get it, and why the bank gives it to people, in a fun and interesting story.
4. ^ ^ "Piggy Bank Wrapper" - (www.ebri.org) A Piggy Bank Wrapper that can be downloaded, printed and attached to a coffee can.
