What is money? Why do people save it? What are some things for which you have saved money?
Money is something you can use to pay for goods and services. Some things you may want are more expensive than others, so you must save your money until you have enough. A bank is a place that can keep your money secure, while putting it to good use and paying you interest in the process. When you save money in a bank, you are trusting the bank to take care of your money, and even earning a little if you are getting interest.
This lesson will help you understand why it is important to keep track of your money when you use a bank to save.
In this lesson, you will work in pairs to simulate banking transactions on a savings account. As you compare answers and practice recording savings deposits and withdrawals, you will see the advantage of keeping track of these transactions.
Do you know how to save money in a bank? Visit The Adventures of Dollar Bill page at the KidsBank site to learn about how a savings account works. Take the Banking Quiz to see if you understand some of the basics.
There are lots of interesting things you can learn about money and banking at this site. Be sure, for this lesson, that you focus on the Dollar Bill adventures. That’s the section that will teach you about savings!
Practice filling in a bank deposit slip and passbook using these samples. Be sure to record deposits and withdrawals in the correct column of your passbook. If you make a deposit, add the amount in the balance column. If you are withdrawing money, subtract.
Choose from one of the following two activities (you may work online or offline):
Work with a partner to pretend you are making deposits to and withdrawals from a savings account. Get from your teacher or print out a savings passbook, which allows you to keep track of your money. Take turns picking banking cards and record the deposits or withdrawals on your passbook pages. Each of you should record all transactions. As you are recording the amounts, compare your answers with your partner to be sure you are both adding and subtracting correctly. Imagine what would happen if you didn't keep a record and the bank made a mistake. What would happen to your money?
Online Version: Clickety Clack, Let's Keep Track
Review the activities you completed during this lesson. What were some of the challenges of working in pairs? What was helpful about it?
Brainstorm a list of things you noticed about keeping track of savings and how that can help you manage your money. Consider some of the questions below:
What happened when you or your partner made a mathematical error?
Why would it be important to have a written record of your transactions if mistakes are made at the bank?
Why would it be helpful to you to know how much money you have in your savings account?