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This lesson will show students the importance of keeping track of their savings.
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.
Do you know how to save money in a bank? Visit 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!
[The quizzes available at KidsBank are basic multiple choice exercises. Students are told how many questions they answered correctly at the end of the quiz, but they are not given opportunities to correct their answers. You may wish to do this quiz together as a group, or create your own version in order to have both a record of student learning and an opportunity to redirect when students answer incorrectly.]
Practice filling in a bank deposit slip using the sample. 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 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?
[Note to the teacher: In this version, pass out one set of printable passbook pages to each student, along with one set of banking cards to each pair of students. Have students take turns picking banking cards. Each time a card is chosen, both students should complete a passbook entry. Students should compare answers at the end. Caution the students to be patient with each other if they make mistakes. The point of the lesson is to learn what might happen if savings customers didn't keep track of their accounts. While students should take care to correct any mistakes they make along the way, differences between answers should be considered fodder for discussion about the lesson objectives.]
[In this version, students click on a train ticket to get a deposit or withdrawal scenario. One savings customer will record the transaction online, while the other will record on a savings passbook. The online version provides real-time feedback, so both students can monitor their answers. Caution the students to be patient with each other if they make mistakes. The point of the lesson is to learn about what might happen if savings customers didn't keep track of their accounts. While students should take care to correct any mistakes they make along the way, differences between answers should be considered fodder for discussion about the lesson objectives.]
Take a moment and discuss with your students the concepts they have learned about interest and how loans can generate interest using deposits.
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?
Observe students’ behavior during the pairing activity. The students should be conversing about the advantages of having their transactions recorded. Follow-up discussion and brainstorming should indicate an understanding of the use of savings documentation. The students should be able to explain their experiences during this lesson to you and to each other.