- Understand the different ways to save money and reasons for doing so
- Use addition, subtraction, multiplication, and division (with whole numbers, fractions, decimals and/or percents, mixed numbers) to solve real-world math problems that will help them to understand how a savings account works and the concept of interest
Chart paper or chalkboard, marker or chalk, Student Magazine Pages: How Money Can Grow (PDF), pencils
Assess students' understanding of and experience with the concept of savings. Ask: Have you ever saved money to buy something? What were you saving for? How much did it cost? How long did it take you to save the money? How did you save the money?
- Discuss the definition of savings with students. People have short-term goals when they save for things over a short period of time. This is usually for less expensive items. Long-term goals are usually for more expensive items that take a long time to save for, such as college or a house.
- Ask students for examples of short- and long-term goals.
- Now discuss the concept of interest as it applies to a savings account. Solicit ideas about what interest paid means when it refers to a savings account. Interest is the fee a bank pays someone for letting the bank use his or her money.
Do the Math:
Show students the math behind interest in the chart below:
What are examples of long- and short-term goals? Why is it important to have goals? How does saving money help you reach goals? What are some things that you might like to save for?
Introduce the concept of philanthropy, which means giving time and money to causes or charities. Discuss with students why they think this is an important goal to have. Assign Student Magazine Pages 10-11: Kids Helping Others (PDF) as an at-home or in-class assignment.
Language Arts Extension:
Expository: Writing Situation: By setting goals, you can help to accomplish something in the future. Directions for Writing: Think about a goal that you have. Now explain why this goal is important to you and what you can do to reach it.
Narrative: Writing Situation: There are all sorts of goals that people have. Directions for Writing: Write a story about a real or imagined goal that someone has.
Have students read Student Magazine Pages 8-9: How Money Can Grow (PDF), in class or at home, and complete the goals on page 8 and the problems on page 9.
Student Magazine Answers (PDF)