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SAVINGS & BANKING Learning Targets ? I will learn about the importance of saving money and review the basics of banking

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SAVINGS & BANKING Learning Targets ? I will learn about the importance of saving money and review the basics of banking. ? I will define the concept of “paying yourself first.” ? I will calculate the value of compound interest over defined periods of time. ? I will understand the importance of keeping track of my spending. FINANCIAL LITERACY ? You receive $100 and put it in the bank ? Your $$$ earns 5% interest every year ? Calculate how much you will earn after 1 year… 5 years… 10 years. ? Share results with a partner PAY YOURSELF FIRST! ? Brainstorm ? What should you do before you spend your money? ? Record ideas on the board. ? Why are these important? BEAUTY OF COMPOUNDING INTEREST ? Think back to the 5% Interest Activity ? Share out how much you would have after 1 year. ? Explain how you got your answer. ? Repeat for 5 years COMPOUND INTEREST COMPOUND INTEREST Revisit the $100 earning 5% interest over the next 10 years… how much will you have? BANKING ? How many of you have a checking and/or savings account? ? Are you using the accounts to save money for something? ? Open and Review the Banking Handout BANKING JEOPARDY!! ? ORGANIZE- students into teams ? TOPICS- Saving & Borrowing Money Additional Rules: ? ? ? Team can’t go below Zero Person from team stands when they know the answer Teacher will point to first person who stands ? EACH section has $10, $20, $30, $40, & $50 questions ? EARN for correct answers, lose for wrong answers BANKING JEOPARDY!! SAVING MONEY BORROWING MONEY $10 $10 $20 $20 $30 $30 $40 $40 ? Choose a category. ? Click on a dollar amount to $50 $50 see the question. SPENDING MONEY Complete the Spending Worksheet ? Enter the bank transactions from page 1 to the bank account history on page 2. ? Answer the question on page 2. Would you buy the headset? Why or why not? Saving Money $10 Back to Jeopardy Game Board What type of bank account offers the higher interest:? ? Checking account ? Savings account ? Long-term savings account Saving Money $20 Back to Jeopardy Game Board You put $500 in a bank. After 10 years, there is over $800 in that account. If you didn’t put any more money in the account, what caused you to get more money? Saving Money $30 Back to Jeopardy Game Board What type of bank account is the place you keep money you intend to spend right away? Saving Money $40 Back to Jeopardy Game Board Name three ways you can withdraw money from your bank account. Saving Money $50 Back to Jeopardy Game Board Name the five different ways you can save money with a bank. Borrowing Money $10 Back to Jeopardy Game Board What is the name of the fee you pay to borrow money? Borrowing Money $20 Back to Jeopardy Game Board If you completely repay your credit card each month, how much interest do you pay? Borrowing Money $30 Back to Jeopardy Game Board What word does a bank use to define the money you borrowed? Borrowing Money $40 Back to Jeopardy Game Board When you take out a mortgage a bank requires collateral. What is collateral? Borrowing Money $50 Back to Jeopardy Game Board If you borrow $1,000 at 6% interest per year over three years, how much interest would you pay by the end of the term? SPENDING WORKSHEET NAME: SPENDING MONEY You can spend more money than you have in your account, but you will pay a high penalty if you do so. How do you keep track of how much money you have in your account in order to make informed decisions? It’s a simple matter of addition and subtraction. You just have to stay organized. Try it: Imagine that you have a bank account and use a debit card to pay for purchases. Here are your transactions for the last half of January. Enter them into the bank account history on page 2: – – – – – – – – – – – – Your beginning balance is $150. On January 15th, you pay $10 to your school for two tickets to movie night. On January 16th, your neighbors pay you $75 for dog-sitting and you deposit it in the bank. On January 17th, you pay $80 for a new pair of shoes. On January 17th, you pay $10 for your monthly music subscription. On January 20th, you receive $20 in allowance and you deposit it in the bank. On January 25th, you $10 to your school for a ticket to the school play. On January 28th, you pay $15 for a movie ticket and popcorn. On January 29th, you receive $20 in allowance and you deposit it in the bank. On January 30th, you withdrew $75 from an ATM to pay your phone bill. On January 30th, you pay $25 for pizza with your friends. On February 5th, you are considering purchasing a new $30 headset for your phone. Rev 09/2016 Page 1 The Career Guidance Washington Lessons by OSPI are licensed under a Creative Commons Attribution 4.0 International License. SPENDING WORKSHEET cont. SAMPLE BANK ACCOUNT Complete the bank account history below. The first few entries have been made for you: Date Description of Transaction (-) Amount of Withdrawal (+) Amount of Deposit BALANCE $150.00 01/15/21 School movie night (2 tickets) $10.00 01/16/21 Payment for dog-sitting $140.00 $75.00 $215.00 What is your account balance on February 5th? In this financial situation, would you buy the headset? Why or why not? Rev 09/2016 Page 2 The Career Guidance Washington Lessons by OSPI are licensed under a Creative Commons Attribution 4.0 International License.