# Lesson 5: Savvy Savers

Size: px
Start display at page:

Transcription

1 KaChing! Lesson 5: Savvy Savers Standards and Benchmarks (see page B-56) Lesson Description Students calculate compound interest to identify benefits of saving in interest-bearing accounts. They learn the rule of 72 and that it applies to both investments and debt. They apply the rule of 72 to several savings scenario. They learn that there is a relationship between the level of risk for an investment and the potential reward or return on that investment. Grade Level 6-12 Concepts Compound interest Interest Non-interest-bearing account Principal Risk-reward relationship Rule of 72 Saving Objectives Students will explain the difference between a non-interest-bearing account and an interestbearing account, calculate interest compounded semiannually, explain and demonstrate the rule of 72, and describe the risk-reward relationship. 2014, Federal Reserve Banks of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, B-43

2 Time Required 45 minutes Materials Handouts 5.1, 5.2, and 5.3, one copy of each for each student Handout 5.1 Answer Key, one copy for the teacher to use as a visual Handout 5.2 Answer Key, one copy for the teacher to use as a visual Handout 5.3 Answer Key, one copy for the teacher to use as a visual One calculator for each student Procedure 1. Begin by asking students the following: What does it mean to be a saver? (Answers may vary but may include purposely setting aside money to spend later, not spending all of your income, having money left after paying expenses, or having income greater than expenses.) What do you suppose it means to be a savvy saver? (Answers may vary but may include being a smart saver, knowing about places to save one s money, or knowing about different types of savings accounts.) 2. Explain that saving is not spending on current consumption or taxes. Distribute a copy of Handout 5.1: Maria s Savings Decision to each student. Explain that the students will likely realize the difference between a saver and a savvy saver when they examine Maria s story. Call on a student to read aloud the Introduction on Handout Explain the following: A non-interest-bearing account, also called a zero-interest account, is one in which no interest is paid on the principal. Principal is the original amount of money deposited or invested, excluding any interest. Interest is the price of using someone else s money. When people place their money in a bank, the bank uses the money to make loans to others. In return, the bank pays the account holder interest. There are various types of interestbearing accounts that vary by the amount of interest paid and how often interest is paid. Compound interest is interest computed on the sum of the original principal and accrued (accumulated or earned) interest. For example, an account that pays 5 percent interest compounded semiannually means that every six months ½ of 5 percent interest that is, 2.5 percent interest is paid on the principal and any accrued interest. 2014, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-44 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

4 10. Share and explain the following: For example, consider a savings account with a 5 percent annual interest rate: 72 5 = The principal in this savings account will double in a little over 14 years. The rule of 72 assumes people leave their money in an account without taking away from it or adding to it. It is not an exact number, but it serves as a good estimate. 11. Distribute a copy of Handout 5.2: The Rule of 72 to each student and instruct them to complete the handout by following the directions. When students have completed Handout 5.2, display Handout 5.2: The Rule of 72 Answer Key to review the answers. 12. Discuss the following: Does the amount of interest an account pays have much of an impact on how long it will take for your money to double? (Yes. The higher the interest rate, the less time it will take for your money to double.) Interest rates vary over time, but savings accounts are considered a safe place to save your money because for most savings accounts your principal is guaranteed it cannot go down. Savings accounts generally pay interest annually in the 0.5 percent to 1.5 percent range, depending on current financial conditions in the economy. This reflects the risk-reward relationship. The risk-reward relationship is the idea that there is a direct relationship between risk of the loss of principal and the expected rate of return. The higher the risk of loss of principal for an investment, the greater the potential reward. Conversely, the lower the risk of loss of principal for an investment, the lower the potential reward. Therefore, savings accounts are considered very low risk; so their reward as compared with other investment options, is a relatively low yield, or interest rate. The rule of 72 applies not only to investments but also to debt, because it shows approximately how fast your debt will double at a given interest rate. What annual interest rate do credit cards charge? (Interest rates on credit cards vary over time and under different financial conditions in the economy, but generally credit cards charge a relatively high interest rate.) Point out that credit cards can charge high rates because credit card companies bear a risk when loaning funds to their cardholders. If a credit card charges an 18 percent annual interest rate, approximately how long would it take for your debt to double if you made no payment on the debt? (4 years; = 4) 2014, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-46 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

5 Closure 13. Review the key points of this lesson by discussing the following: What is a non-interest-bearing account? (A non-interest-bearing account is one that pays no interest on the principal.) What is interest? (Interest is the price of using someone else s money.) What is compound interest? (Compound interest is interest computed on the original principal and accrued interest.) What interest rate would a savings account or a low-risk investment likely pay would it be a low, medium, or high interest rate and why? (They would each pay a low interest rate because of the risk-reward relationship.) What does the rule of 72 estimate? (The rule of 72 estimates the number of years it will take for a financial investment or debt to double in value at a given annual interest rate.) Assessment 14. Give each student a copy of Handout 5.3: Charlie s Financial Goal and tell them to follow the instructions on the handout. Allow time for students to complete the handout and then display Handout 5.3: Charlie s Financial Goal Answer Key to review students answers. 2014, Federal Reserve Banks of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, B-47

6 Handout 5.1: Maria s Savings Decision (page 1 of 2) Introduction: One year ago, Maria received \$1,000 from her grandmother with instructions to save it for college two years from now. She deposited the money in her checking account, which pays her no interest. She had considered putting the \$1,000 in a savings account that paid 5 percent interest compounded semiannually, but she never got around to it. How much money did Maria lose by leaving her \$1,000 in a non-interest-bearing account for 12 months? Follow the steps below to find the answer. 1. Interest compounded semiannually is added to the principal in an account every six months. Follow the steps to calculate interest compounded semiannually, and write the answers in the chart below: Step 1: Convert the annual interest rate to a decimal. In this case, 5 percent becomes Step 2: Divide the annual interest rate (as a decimal) by 2 to determine the interest paid every six months. In this case, (0.05 2) = (So, for this scenario, every six months the saver would receive percent interest on the principal and on any accumulated interest.) Step 3: Multiply the principal (plus any accrued interest) by the interest rate to get the amount paid in dollars. Round to the nearest hundredth (for example, \$ = \$25.63). (Note that the principal will change each time interest accrues.) Step 4: Add principal and interest to get the new principal. Step 5: Repeat steps 2 and 3 to calculate interest and principal for each six-month time period. Months Principal (p) Interest rate (i) p + i 6 \$1, , Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-48 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

7 Handout 5.1: Maria s Savings Decision (page 2 of 2) 2. Fill in the following chart for Maria s two savings options. Type of account Original principal Interest after Total principal 12 months and interest after 12 months Zero-interest \$1, checking account Savings account \$1, with 5% interest compounded semiannually 3. Maria lost \$ by keeping her money in a non-interest-bearing account rather than putting it in an account that paid a 5 percent interest rate compounded semiannually. 4. Complete the chart by using the information from question 1 for months 6 and 12 and then calculate the interest paid at 18 months, 2 years, and 3 years for an account that pays a 5 percent interest rate compounded semiannually. Round to the nearest hundredth. Remember that the principal will change each time interest accrues. Months Principal (p) Interest rate (i) p + i 6 \$1, \$ \$ 12 \$ \$25.63 \$ 18 \$ \$ \$ 24 (2 years) \$1, \$ \$ 30 \$ \$27.60 \$ 36 (3 years) \$ \$ \$ 2014, Federal Reserve Banks of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, B-49

8 Handout 5.1: Maria s Savings Decision Answer Key (page 1 of 2) Introduction: One year ago, Maria received \$1,000 from her grandmother with instructions to save it for college two years from now. She deposited the money in her checking account, which pays her no interest. She had considered putting the \$1,000 in a savings account that paid 5 percent interest compounded semiannually, but she never got around to it. How much money did Maria lose by leaving her \$1,000 in a non-interest-bearing account for 12 months? Follow the steps below to find the answer. 1. Interest compounded semiannually is added to the principal in an account every six months. Follow the steps to calculate interest compounded semiannually, and write the answers in the chart below: Step 1: Convert the annual interest rate to a decimal. In this case, 5 percent becomes Step 2: Divide the annual interest rate (as a decimal) by 2 to determine the interest paid every six months. In this case, (0.05 2) = (So, for this scenario, every six months the saver would receive percent interest on the principal and on any accumulated interest.) Step 3: Multiply the principal (plus any accrued interest) by the interest rate to get the amount paid in dollars. Round to the nearest hundredth (for example, \$ = \$25.63). (Note that the principal will change each time interest accrues.) Step 4: Add principal and interest to get the new principal. Step 5: Repeat steps 2 and 3 to calculate interest and principal for each six-month time period. Months Principal (p) Interest rate (i) p + i 6 \$1, \$25.00 \$1, \$1, \$25.63 \$1, , Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-50 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

9 Handout 5.1: Maria s Savings Decision Answer Key (page 1 of 2) 2. Fill in the following chart for Maria s two savings options. Type of account Original principal Interest after Total principal 12 months and interest after 12 months Zero-interest \$1, \$0 \$1, checking account Savings account \$1, \$50.63 \$1, with 5% interest compounded semiannually 3. Maria lost \$ \$50.63 by keeping her money in a non-interest-bearing account rather than putting it in an account that paid a 5 percent interest rate compounded semiannually. 4. Complete the chart by using the information from question 1 for months 6 and 12 and then calculate the interest paid at 18 months, 2 years, and 3 years for an account that pays a 5 percent interest rate compounded semiannually. Round to the nearest hundredth. Remember that the principal will change each time interest accrues. Months Principal (p) Interest rate (i) p + i 6 \$1, \$25.00 \$1, \$1, \$25.63 \$1, \$1, \$26.27 \$1, (2 years) \$1, \$26.92 \$1, \$1, \$27.60 \$1, (3 years) \$1, \$28.29 \$1, , Federal Reserve Banks of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, B-51

10 Handout 5.2: The Rule of 72 Directions: The rule of 72 is a method to estimate the number of years it will take for a financial investment, including savings, to double in value at a given annual interest rate. You divide 72 by the interest rate to determine the approximate number of years it will take the investment to double in value. For each bar below, begin at 0 years and shade in the bar horizontally to indicate the number of years it would take for money to double at the noted annual interest rate. Please use a pencil. Your money will double in years years years years years years If your interest rate is 2% (72 2) 4% (72 4) 6% (72 6) 8% (72 8) 12% (72 12) 2014, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-52 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

11 Handout 5.2: The Rule of 72 Answer Key Directions: The rule of 72 is a method to estimate the number of years it will take for a financial investment, including savings, to double in value at a given annual interest rate. You divide 72 by the interest rate to determine the approximate number of years it will take the investment to double in value. For each bar below, begin at 0 years and shade in the bar horizontally to indicate the number of years it would take for money to double at the noted annual interest rate. Please use a pencil. Your money will double in years years years years years years If your interest rate is 2% (72 2) 36 years 4% (72 4) 18 years 6% (72 6) 12 years 8% (72 8) 9 years 12% (72 12) 6 years 2014, Federal Reserve Banks of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, B-53

12 Handout 5.3: Charlie s Financial Goal 1. Charlie is saving to buy a car a year and a half from today. He has \$12,000 in a savings account with a 2 percent interest rate compounded quarterly. How much will Charlie have in his savings account after 18 months? Calculate his balance in the chart below. Round to the nearest hundredth. Months Principal (p) Interest rate (i) p + i 3 \$12, How long will it take Charlie s money to double with a 2 percent interest rate compounded quarterly? 3. Charlie wants to explain the risk-reward relationship to his nephew, who is a sophomore in high school. If you were Charlie, how would you explain this relationship? 2014, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-54 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

13 Handout 5.3: Charlie s Financial Goal Answer Key 1. Charlie is saving to buy a car a year and a half from today. He has \$12,000 in a savings account with a 2 percent interest rate compounded quarterly. How much will Charlie have in his savings account after 18 months? Calculate his balance in the chart below. Round to the nearest hundredth. Months Principal (p) Interest rate (i) p + i 3 \$12, \$60.00 \$12, \$12, \$60.30 \$12, \$12, \$60.60 \$12, \$12, \$60.90 \$12, \$12, \$61.21 \$12, \$12, \$61.52 \$12, How long will it take Charlie s money to double with a 2 percent interest rate compounded quarterly? (36 years) 3. Charlie wants to explain the risk-reward relationship to his nephew, who is a sophomore in high school. If you were Charlie, how would you explain this relationship? (When you invest your money, the higher the risk of loss of principal for an investment, the higher the potential reward. So, relatively safe places to put your money in a savings account at a bank, for example yield a relatively low reward because the risk of losing your principal is very low.) 2014, Federal Reserve Banks of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, B-55

14 Standards and Benchmarks National Standards in Economics Standard 12: Interest rates, adjusted for inflation, rise and fall to balance the amount saved with the amount borrowed, which affects the allocation of scarce resources between present and future uses. Benchmark 1, Grade 8: An interest rate is a price of money that is borrowed or saved. National Standards in Personal Finance Saving and Investing Overall Competency: Implement a diversified investment strategy that is compatible with personal goals. Standard 1: Discuss how saving contributes to financial well-being. Expectation 2, 12th Grade: Identify and compare saving strategies, including paying yourself first, using payroll deduction, and comparison shopping to spend less. Standard 3: Evaluate investment alternatives. Expectation 2, 12th Grade: Compare the risks and returns of various investments. Common Core Standards: Reading Standards for Literacy in History/Social Studies, Science, and Technical Subjects, Grades 6-12 History and Social Studies Key Ideas and Details CCSS.ELA-Literacy.RH.6-8.3: Identify key steps in a text s description of a process related to history/social studies (e.g., how a bill becomes law, how interest rates are raised or lowered). Craft and Structure CCSS.ELA-Literacy.RH.6-8.4: Determine the meaning of words and phrases as they are used in a text, including vocabulary specific to domains related to history/ social studies. CCSS.ELA-Literacy.RH : Determine the meaning of words and phrases as they are used in a text, including vocabulary describing political, social, or economic aspects of history/social science. CCSS.ELA-Literacy.RH : Determine the meaning of words and phrases as they are used in a text, including analyzing how an author uses and refines the meaning of a key term over the course of a text (e.g., how Madison defines faction in Federalist No. 10). 2014, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-56 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

15 Integration of Knowledge and Ideas CCSS.ELA-Literacy.RH.6-8.7: Integrate visual information (e.g., in charts, graphs, photographs, videos, or maps) with other information in print and digital texts. CCSS.ELA-Literacy.RH : Integrate quantitative or technical analysis (e.g., charts, research data) with qualitative analysis in print or digital text. CCSS.ELA-Literacy.RH : Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., visually, quantitatively, as well as in words) in order to address a question or solve a problem. Writing Text Types and Purposes CCSS.ELA-Literacy.WHST.6-8.1: Write arguments focused on discipline-specific content. CCSS.ELA-Literacy.WHST.6-8.1B. Support claim(s) with logical reasoning and relevant, accurate data and evidence that demonstrate an understanding of the topic or text, using credible sources. CCSS.ELA-Literacy.WHST.6-8.1C. Use words, phrases, and clauses to create cohesion and clarify the relationships among claim(s), counterclaims, reasons, and evidence. CCSS.ELA-Literacy.WHST.6-8.1E. Provide a concluding statement or section that follows from and supports the argument presented. CCSS.ELA-Literacy.WHST.6-8.2: Write informative/explanatory texts, including the narration of historical events, scientific procedures/experiments, or technical processes. CCSS.ELA-Literacy.WHST.6-8.2B. Develop the topic with relevant, wellchosen facts, definitions, concrete details, quotations, or other information and examples. CCSS.ELA-Literacy.WHST.6-8.2C. Use appropriate and varied transitions to create cohesion and clarify the relationships among ideas and concepts. CCSS.ELA-Literacy.WHST.6-8.2D. Use precise language and domain-specific vocabulary to inform about or explain the topic. CCSS.ELA-Literacy.WHST.6-8.2F. Provide a concluding statement or section that follows from and supports the information or explanation presented. CCSS.ELA-Literacy.WHST : Write arguments focused on discipline-specific content. CCSS.ELA-Literacy.WHST A: Introduce precise claim(s), distinguish the claim(s) from alternate or opposing claims, and create an organization that establishes clear relationships among the claim(s), counterclaims, reasons, and evidence. 2014, Federal Reserve Banks of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, B-57

16 CCSS.ELA-Literacy.WHST C: Use words, phrases, and clauses to link the major sections of the text, create cohesion, and clarify the relationships between claim(s) and reasons, between reasons and evidence, and between claim(s) and counterclaims. CCSS.ELA-Literacy.WHST E: Provide a concluding statement or section that follows from or supports the argument presented. CCSS.ELA-Literacy.WHST : Write informative/explanatory texts, including the narration of historical events, scientific procedures/experiments, or technical processes. CCSS.ELA-Literacy.WHST B: Develop the topic with well-chosen, relevant, and sufficient facts, extended definitions, concrete details, quotations, or other information and examples appropriate to the audience s knowledge of the topic. CCSS.ELA-Literacy.WHST C: Use varied transitions and sentence structures to link the major sections of the text, create cohesion, and clarify the relationships among ideas and concepts. CCSS.ELA-Literacy.WHST D: Use precise language and domain-specific vocabulary to manage the complexity of the topic and convey a style appropriate to the discipline and context as well as to the expertise of likely readers. CCSS.ELA-Literacy.WHST F: Provide a concluding statement or section that follows from and supports the information or explanation presented (e.g., articulating implications or the significance of the topic). CCSS.ELA-Literacy.WHST : Write arguments focused on discipline-specific content. CCSS.ELA-Literacy.WHST B: Develop claim(s) and counterclaims fairly and thoroughly, supplying the most relevant data and evidence for each while pointing out the strengths and limitations of both claim(s) and counterclaims in a discipline-appropriate form that anticipates the audience s knowledge level, concerns, values, and possible biases. CCSS.ELA-Literacy.WHST C: Use words, phrases, and clauses as well as varied syntax to link the major sections of the text, create cohesion, and clarify the relationships between claim(s) and reasons, between reasons and evidence, and between claim(s) and counterclaims. CCSS.ELA-Literacy.WHST E: Provide a concluding statement or section that follows from or supports the argument presented. CCSS.ELA-Literacy.WHST : Write informative/explanatory texts, including the narration of historical events, scientific procedures/experiments, or technical processes. CCSS.ELA-Literacy.WHST B: Develop the topic thoroughly by selecting the most significant and relevant facts, extended definitions, concrete details, quotations, or other information and examples appropriate to the audience s knowledge of the topic. 2014, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-58 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

17 CCSS.ELA-Literacy.WHST C: Use varied transitions and sentence structures to link the major sections of the text, create cohesion, and clarify the relationships among complex ideas and concepts. CCSS.ELA-Literacy.WHST D: Use precise language, domain-specific vocabulary and techniques such as metaphor, simile, and analogy to manage the complexity of the topic; convey a knowledgeable stance in a style that responds to the discipline and context as well as to the expertise of likely readers. CCSS.ELA-Literacy.WHST E: Provide a concluding statement or section that follows from and supports the information or explanation provided (e.g., articulating implications or the significance of the topic). Production and Distribution of Writing CCSS.ELA-Literacy.WHST.6-8.4: Produce clear and coherent writing in which the development, organization, and style are appropriate to task, purpose, and audience. CCSS.ELA-Literacy.WHST Produce clear and coherent writing in which the development, organization, and style are appropriate to task, purpose, and audience. CCSS.ELA-Literacy.WHST : Produce clear and coherent writing in which the development, organization, and style are appropriate to task, purpose, and audience. 2014, Federal Reserve Banks of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational purposes, provided the user credits the Federal Reserve Bank of St. Louis, B-59

18 2014, Federal Reserve Bank of St. Louis. Permission is granted to reprint or photocopy this lesson in its entirety for educational B-60 purposes, provided the user credits the Federal Reserve Bank of St. Louis,

### Lesson 6: Credit Reports and You Thought Your Report Card Was Important

All About Credit Lesson 6: Credit Reports and You Thought Your Report Card Was Important Standards and Benchmarks (see page C-15) Lesson Description Students read informational text and discuss the advantages

### Lesson 8: So How Much Are You Really Paying for That Loan?

All About Credit Lesson 8: So How Much Are You Really Paying for That Loan? Standards and Benchmarks (see page C-46) Lesson Description Students learn what a payday loan is and the high cost involved in

### eday Lessons KAP Political Science

KAP Political Science Standards Topic: Basic Principles of the U.S. Constitution Principles related to representative democracy are reflected in the articles and amendments of the U.S. Constitution and

### Economics Social Studies Georgia Performance Standards. Economics

Economics The economics course provides students with a basic foundation in the field of economics. The course has five sections: fundamental concepts, microeconomics, macroeconomics, international economics,

### Lesson 9: To Rent-to-Own or Not to Rent-to-Own?

All About Credit Lesson 9: To Rent-to-Own or Not to Rent-to-Own? Standards and Benchmarks (see page C-61) Lesson Description Students review the elements of a contract. They discuss the characteristics

### Maryland Common Core State Curriculum Framework Standards for Writing Standards in Science and Technical Subjects. Grades 9-12

Cluster: Text Types and Purposes CCR Anchor Standard #1 Write arguments to support claims in an analysis of substantive topics or texts, using valid reasoning and relevant and sufficient evidence. WHST.11-12.1

### American Government/Civics

American Government/Civics The government course provides students with a background in the philosophy, functions, and structure of the United States government. Students examine the philosophical foundations

### Crosswalk of the Common Core Standards and the Standards for the 21st-Century Learner Writing Standards

Crosswalk of the Common Core Standards and the Standards for the 21st-Century Learner Writing Standards AASL Standards 1. Inquire, think critically, and gain knowledge. 1.1 Skills 1.1.1 Follow an inquiry-based

### Lesson 4: Your Budget Plan

KaChing! Lesson 4: Your Budget Plan Standards and Benchmarks (see page B-41) Lesson Description Students work in pairs to participate in a Track Star game that illustrates positive and negative spending

### PENNSYLVANIA COMMON CORE STANDARDS English Language Arts Grades 9-12

1.2 Reading Informational Text Students read, understand, and respond to informational text with emphasis on comprehension, making connections among ideas and between texts with focus on textual evidence.

### Competencies for Secondary Teachers: Computer Science, Grades 4-12

1. Computational Thinking CSTA: Comp. Thinking 1.1 The ability to use the basic steps in algorithmic problemsolving to design solutions (e.g., problem statement and exploration, examination of sample instances,

### I. Title of Lesson: Learning from Artifacts and What Artifacts Tell Us

Lesson Plan Class: Seventh Grade Subject: World History Ancient Civilizations Topic: Unit One Investigating the Past: How are social scientists like detectives? I. Title of Lesson: Learning from Artifacts

### Lesson 7: Creditors Criteria and Borrowers Rights and Responsibilities

All About Credit Lesson 7: Creditors Criteria and Borrowers Rights and Responsibilities Standards and Benchmarks (see page C-33) Lesson Description Students discuss key terms related to credit and learn

### THEME THREE: APPLY FINANCIAL PLANNING AND BUDGETING MECHANISMS. LESSON TITLE: Theme 3, Lesson 2: Money Magic

THEME THREE: APPLY FINANCIAL PLANNING AND BUDGETING MECHANISMS LESSON TITLE: Theme 3, Lesson 2: Money Magic Lesson Description: This lesson helps students compare and contrast saving and investing alternatives

### Lesson 3 Save and Invest: The Power of Interest

Lesson 3 Save and Invest: The Power of Interest Lesson Description This lesson defines the concept of interest as the fee for the use of money over time. Students differentiate between simple and compound

### CORRELATION FLORIDA DEPARTMENT OF EDUCATION INSTRUCTIONAL MATERIALS CORRELATION COURSE STANDARDS/BENCHMARKS

SUBJECT: French GRADE LEVEL: 6-8 COURSE TITLE: M/J French, Beginning COURSE CODE: 701000 SUBMISSION TITLE: Bien Dit 2013, Level 1A BID ID: 2776 PUBLISHER: Houghton Mifflin Harcourt PUBLISHER ID: 04-1456030-01

### It s Your Paycheck! Glossary of Terms

Annual percentage rate The percentage cost of credit on an annual basis and the total cost of credit to the consumer. APR combines the interest paid over the life of the loan and all fees that are paid

### E/LA Common Core Standards for Writing Grade 5

Text Type and Purposes Anchor Standards 1. Write arguments to support claims in an analysis of substantive topics or texts, using valid reasoning and relevant and sufficient evidence. 2. Write informative/explanatory

### New York State K-12 Social Studies Framework Introduction

The State Education Department The University of the State of New York New York State K-12 Social Studies Framework Introduction Revised November 2014 Contents Introduction... 2 Overview... 2 New York

### Common Core State Standards Grades 9-10 ELA/History/Social Studies

Common Core State Standards Grades 9-10 ELA/History/Social Studies ELA 9-10 1 Responsibility Requires Action. Responsibility is the active side of morality: doing what I should do, what I said I would

### UNIT AUTHOR: Elizabeth Hume, Colonial Heights High School, Colonial Heights City Schools

Money & Finance I. UNIT OVERVIEW & PURPOSE: The purpose of this unit is for students to learn how savings accounts, annuities, loans, and credit cards work. All students need a basic understanding of how

### How To Reconcile The Conflict Between Individual Rights And Collective Responsibility Toward The Commons

The Commons: Our Right and Our Responsibility? Teacher s Guide Grade: 9-12 Lesson: The Commons: Our Right and Our Responsibility? Number of Class Periods: 3 45-minute periods The Healthy Commons Lesson

### Teacher s Guide. Alignment with the Common Core State Standards for Reading... 3. Alignment with the Common Core State Standards for Writing...

My Insurance Teacher s Guide Introduction to the Unit... 2 What are the activities? What is the assessment? What are the activity descriptions? How does this unit align with the Common Core State Standards?

### Chapter F: Finance. Section F.1-F.4

Chapter F: Finance Section F.1-F.4 F.1 Simple Interest Suppose a sum of money P, called the principal or present value, is invested for t years at an annual simple interest rate of r, where r is given

TM parent ROADMAP SUPPORTING YOUR CHILD IN GRADE FIVE ENGLISH LANGUAGE ARTS 5 America s schools are working to provide higher quality instruction than ever before. The way we taught students in the past

### Bunny Money. Lesson Author. Standards and Benchmarks (see page 15) Lesson Description. Grade Level. Concepts. Objectives

FEDERAL RESERVE BANKS OF ST. LOUIS, PHILADELPHIA, AND KANSAS CITY ECONOMIC EDUCATION By Rosemary Wells / ISBN: 978-0-14-056750-2 Lesson Author Michele Wulff, Federal Reserve Bank of Kansas City Standards

### Students will know Vocabulary: claims evidence reasons relevant accurate phrases/clauses credible source (inc. oral) formal style clarify

Sixth Grade Writing : Text Types and Purposes Essential Questions: 1. How do writers select the genre of writing for a specific purpose and audience? 2. How do essential components of the writing process

### \$ # \$ + \$ \$ % \$ ¾ \$ ~ \$² Money Math Lessons for Life

\$ # \$ + \$ \$ % \$ ¾ \$ ~ \$² Money Math Lessons for Life Written by Mary C. Suiter Sarapage McCorkle Center for Entrepreneurship and Economic Education University of Missouri St. Louis Mathematics Consultant

### Saving Power = Spending Power

Saving Power = Spending Power By Greg Glandon Federal Reserve Bank of Atlanta Lesson Plan of the Year Contest, 2009 Third Place LESSON DESCRIPTION This lesson focuses on the value of saving money and on

### Integrating the Common Core Standards into the Music Curriculum

Place Photo Here, Otherwise Delete Box Integrating the Common Core Standards into the Music Curriculum Tom L. Foust January 24 th, 2013 Illinois Music Educators Conference Peoria, Illinois What is the

### Lesson Description. Concepts. Objectives. Content Standards. Time Required. KaChing! Lesson 4: Your Budget Plan

Lesson Description Students work in pairs to participate in a Track Star game that illustrates positive and negative spending behaviors. Each pair of students analyzes the Track Star results, identifies

### Standard 5: The student will analyze the costs and benefits of saving and investing.

TEACHER GUIDE 5.2 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. The Rule of 72 Priority Academic Student Skills Personal Financial Literacy

### Online LEI Lesson 2. Lesson 2 Savings Accounts and U.S. Savings Bonds LEARNING, EARNING

Online LEI Lesson 2 Lesson 2 Savings Accounts and U.S. Savings Bonds On l i n e L E I 17 2 Savings Accounts and U.S. Savings Bonds LESS 2 SAVINGS ACCOUNTS U. S. SAVINGS BDS Time Required Lesson Description

### Financial Literacy in Grade 11 Mathematics Understanding Annuities

Grade 11 Mathematics Functions (MCR3U) Connections to Financial Literacy Students are building their understanding of financial literacy by solving problems related to annuities. Students set up a hypothetical

### NEW YORK STATE TEACHER CERTIFICATION EXAMINATIONS

NEW YORK STATE TEACHER CERTIFICATION EXAMINATIONS TEST DESIGN AND FRAMEWORK DRAFT June 2012 This document is a working draft. The information in this document is subject to change, and any changes will

### Rock, Brock, and the Savings Shock by Sheila Bair (Albert Whitman & Company, Morton Grove, Illinois 2006) ISBN 978-0-8075-7094-4

Rock, Brock, and the Savings Shock by Sheila Bair (Albert Whitman & Company, Morton Grove, Illinois 2006) ISBN 978-0-8075-7094-4 Literature Annotation Gramps teaches his twin grandsons the value of saving

### Common Core State Standards Sample Student Writing Scored with 6+1 Traits Rubric

Common Core State Standards Sample Student Writing Scored with 6+1 Traits Rubric This collection of K-12 student papers and the accompanying annotations were taken from Appendix C: Samples of Student Writing

### Lesson 3: Cash the Check and Track the Dough

KaChing! Lesson 3: Cash the Check and Track the Dough Standards and Benchmarks (see page B-26) Lesson Description Students learn about checking accounts, savings accounts, and check-cashing services. They

### Lesson 4 Annuities: The Mathematics of Regular Payments

Lesson 4 Annuities: The Mathematics of Regular Payments Introduction An annuity is a sequence of equal, periodic payments where each payment receives compound interest. One example of an annuity is a Christmas

### CTE Externship Lessons: Communications and Event Management Created by teachers: Valerie Thornton and Raefani Green

CTE Externship Lessons: Communications and Event Management Created by teachers: Valerie Thornton and Raefani Green This resource was created by Tennessee teachers who participated in teacher externships

### Psychology Social Studies Georgia Performance Standards. Psychology. Standards with an asterisk (*) are recommend for a one semester course.

Psychology Psychology is the scientific study of behavior and mental processes. It is a unique science that often necessitates the use of special measurements and research methods. The course has four

### Indiana Department of Education

Indiana Department of Education Academic Course Framework PERSONAL FINANCIAL RESPONSIBILITY Personal Financial Responsibility addresses the identification and management of personal financial resources

### GDP: Does It Measure Up? May 2013. Classroom Edition. An informative and accessible economic essay with a classroom application.

PAGE ONE Economics the back story on front page economics NEWSLETTER GDP: Does It Measure Up? May 2013 Classroom Edition An informative and accessible economic essay with a classroom application. Includes

### Desertification: Cause and Effect Students learn about the causes and effects of desertification threatening the African Sahel.

Students learn about the causes and effects of desertification threatening the African Sahel. Author Grade Level Duration Barbara Stout 6-8 and 4-5 class periods National Geography Standards ELEMENT TWO:

### Percent, Sales Tax, & Discounts

Percent, Sales Tax, & Discounts Many applications involving percent are based on the following formula: Note that of implies multiplication. Suppose that the local sales tax rate is 7.5% and you purchase

### Lesson Description. Texas Essential Knowledge and Skills (Target standards) Texas Essential Knowledge and Skills (Prerequisite standards)

Lesson Description Students will learn how financial institutions are able to pay savers interest while understanding the difference between interest earned and interest paid. Students will participate

### Career Planning Basics

Media Type: DVD Duration: 70 min. Career Planning Basics Goal: To provide students with college and career-readiness skills necessary for life after secondary and post-secondary education. Description:

### Debt: The Good, The Bad, & The Ugly EPISODE # 402

Debt: The Good, The Bad, & The Ugly EPISODE # 402 LESSON LEVEL Grades 6-8 KEY TOPICS Debt management Budgets Compound interest LEARNING OBJECTIVES 1. Understand different types of debt. 2. Learn how budgets

### English 4: Florida College Prep, Grade 12 Curriculum Map

English 4: Florida College Prep, Grade 12 Curriculum Map The following curriculum map is based on the Language Arts Florida Standards (LAFS), which are listed at the beginning of the map and can be accessed,

### Students will know Vocabulary: purpose details reasons phrases conclusion point of view persuasive evaluate

Fourth Grade Writing : Text Types and Purposes Essential Questions: 1. How do writers select the genre of writing for a specific purpose and audience? 2. How do essential components of the writing process

### LANGUAGE! 4 th Edition, Levels A C, correlated to the South Carolina College and Career Readiness Standards, Grades 3 5

Page 1 of 57 Grade 3 Reading Literary Text Principles of Reading (P) Standard 1: Demonstrate understanding of the organization and basic features of print. Standard 2: Demonstrate understanding of spoken

### Financial Literacy: Personal Finance Basics

Media Type: DVD Duration: 34 minutes Goal: To organize and plan personal finances and use a budget to manage cash flow. Description: Financial Literacy: Personal Finance Basics provides the student with

### Common Core Progress English Language Arts

[ SADLIER Common Core Progress English Language Arts Aligned to the [ Florida Next Generation GRADE 6 Sunshine State (Common Core) Standards for English Language Arts Contents 2 Strand: Reading Standards

### Comparing Simple and Compound Interest

Comparing Simple and Compound Interest GRADE 11 In this lesson, students compare various savings and investment vehicles by calculating simple and compound interest. Prerequisite knowledge: Students should

### A + dvancer College Readiness Online Alignment to Florida PERT

A + dvancer College Readiness Online Alignment to Florida PERT Area Objective ID Topic Subject Activity Mathematics Math MPRC1 Equations: Solve linear in one variable College Readiness-Arithmetic Solving

Reading: Literature Writing: Narrative RL.6.1 RL.6.2 RL.6.3 RL.6.4 RL.6.5 RL.6.6 RL.6.7 W.6.3 SIXTH GRADE UNIT 1 Key Ideas and Details Cite textual evidence to support analysis of what the text says explicitly

### 21.1 Arithmetic Growth and Simple Interest

21.1 Arithmetic Growth and Simple Interest When you open a savings account, your primary concerns are the safety and growth of your savings. Suppose you deposit \$1000 in an account that pays interest at

Appendix J 1 Series EE Savings Bonds Issued May 2005 and Thereafter What interest rate does a Series EE bond earn? Series EE savings bonds issued on and after May 1, 2005, will earn a fixed rate of interest,

### Types of Savings Plans and Investments

LESSON 12 Types of Savings Plans and Investments LESSON DESCRIPTION AND BACKGROUND The students learn about various types of government-insured savings instruments, noting the advantages and disadvantages

### Strand: Reading Literature Topics Standard I can statements Vocabulary Key Ideas and Details

Strand: Reading Literature Key Ideas and Details Craft and Structure RL.3.1 Ask and answer questions to demonstrate understanding of a text, referring explicitly to the text as the basis for the answers.

### GRADE 12 LITERACY IN SOCIAL STUDIES: THE GAME OF LIFE UNIT OVERVIEW TASK DETAILS

GRADE 12 LITERACY IN SOCIAL STUDIES: UNIT OVERVIEW THE GAME OF LIFE This packet contains a curriculum- embedded Common Core aligned task and instructional supports. The task is embedded in a 3-5 week unit

### How to Make a Million Bucks! EPISODE # 406

How to Make a Million Bucks! EPISODE # 406 LESSON LEVEL Grades 6-8 KEY TOPICS Compound interest Money management Saving LEARNING OBJECTIVES 1. Learn how compound interest works. 2. Recognize the importance

### Cash or Credit? LESSON LESSON DESCRIPTION AND BACKGROUND TIME REQUIRED MATERIALS ECONOMIC AND PERSONAL FINANCE CONCEPTS ADDITIONAL RESOURCES

LESSON Cash or Credit? LESSON DESCRIPTION AND BACKGROUND Most students are aware of the variety of payment options available to consumers. Cash, checks, debit cards, and credit cards are often used by

### Photography I Week 01 1. Discussion of classroom rules and expectations a. Key word = RESPECT; respect each other, respect the teacher (as a person,

Photography I Week 01 1. Discussion of classroom rules and expectations a. Key word = RESPECT; respect each other, respect the teacher (as a person, but also for her position as the one who will teach

### Functions and Characteristics of Money

Functions and Characteristics of Money CHAPTER 3 SEGMENT 301 Lesson Description In this lesson, students view a film segment on the characteristics and functions of money from The Federal Reserve and You.

### Present Value Concepts

Present Value Concepts Present value concepts are widely used by accountants in the preparation of financial statements. In fact, under International Financial Reporting Standards (IFRS), these concepts

### Everett Public Schools Framework: Digital Photography I

Course: CIP Code: 500406 Career Cluster: Commercial Photography Everett Public Schools Framework: Digital Photography I Arts, Audio/Video Technology & Communications Total Framework Hours: 90 Hours Preparatory

### SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

Ch. 5 Mathematics of Finance 5.1 Compound Interest SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. Provide an appropriate response. 1) What is the effective

### first complete "prior knowlegde" -- to refresh knowledge of Simple and Compound Interest.

ORDINARY SIMPLE ANNUITIES first complete "prior knowlegde" -- to refresh knowledge of Simple and Compound Interest. LESSON OBJECTIVES: students will learn how to determine the Accumulated Value of Regular

### Using Your Credit - Crazy or Compelling? EPISODE # 115

Using Your Credit - Crazy or Compelling? EPISODE # 115 LESSON LEVEL Grades 4-6 KEY TOPICS Entrepreneurship Credit Interest LEARNING OBJECTIVES 1. Learn about borrowing money. 2. Understand your credit

### Prices: The Marketplace s Communication System. April 2013. Classroom Edition

PAGE ONE Economics the back story on front page economics NEWSLETTER Prices: The Marketplace s Communication System April 2013 Classroom Edition An informative and accessible economic essay with a classroom

### Saving and Investing. Grade Five. Overview. Lesson Objectives. Materials List. Content Standards

Grade Five Saving and Investing Overview Students share several chapters from the book The Young Investor: Projects and Activities for Making Your Money Grow, by Katherine R. Bateman, to learn about saving

### E INV 1 AM 11 Name: INTEREST. There are two types of Interest : and. The formula is. I is. P is. r is. t is

E INV 1 AM 11 Name: INTEREST There are two types of Interest : and. SIMPLE INTEREST The formula is I is P is r is t is NOTE: For 8% use r =, for 12% use r =, for 2.5% use r = NOTE: For 6 months use t =

### Common Core Standards for Literacy in Science and Technical Subjects

A Correlation of Miller & Levine Biology To the Common Core Standards for Literacy in Science and Technical Subjects INTRODUCTION This document demonstrates how meets the Common Core Standards for Literacy

### Journalism Curriculum Maps

Journalism Curriculum Maps Unit of Study: Sports Writing Unit of Study: Writing Feature Stories Unit of Study: Writing News Leads Unit of Study: Writing the News Story Grade: 9-12 Subject: Journalism Unit

### One Hen: How One Small Loan Made a Big Difference

FEDERAL RESERVE BANKS OF ST. LOUIS AND PHILADELPHIA ECONOMIC EDUCATION : How One Small Loan Made a Big Difference By Katie Smith Milway / ISBN: 978-1-55453-028-1 Lesson Author Todd Zartman, Federal Reserve

### Lesson Title: Argumentative Writing (Writing a Critical Review)

Lesson Title: Argumentative Writing (Writing a Critical Review) Author: Carl Myers, DeeAnne Simonson Subject Area(s): Type an X in the box to the left of the subject area(s) addressed in this lesson: Subject

### What is a Bank? Episode # 508

What is a Bank? Episode # 508 LESSON LEVEL Grades 6-8 Key topics Banking Credit & Debt Saving & Investing Entrepreneurs & Stories Ballroom dancers Polina & Nathan City Slips Katie & Susie Night Terrors

### Everett Public Schools Framework: Digital Video Production VI

Course: CIP Code: 100202 Career Cluster: Video ProductionTechnology/Technician Everett Public Schools Framework: Digital Video Production VI Arts, Audio/Video Technology & Communications Total Framework

### Whitnall School District Report Card Content Area Domains

Whitnall School District Report Card Content Area Domains In order to align curricula kindergarten through twelfth grade, Whitnall teachers have designed a system of reporting to reflect a seamless K 12

### What s Up With The Stock Market? EPISODE # 404

What s Up With The Stock Market? EPISODE # 404 LESSON LEVEL Grades 6-8 KEY TOPICS Stock market Investing Stock research LEARNING OBJECTIVES 1. Understand what stocks are. 2. Identify investment strategies.

### Time Value of Money. Critical Equation #10 for Business Leaders. (1+R) N et al. Overview

Time Value of Money Critical Equation #10 for Business Leaders (1+R) N et al. Overview The time value of money is fundamental to all aspects of business decision-making. Consider the following: Would you

### Check off these skills when you feel that you have mastered them.

Chapter Objectives Check off these skills when you feel that you have mastered them. Know the basic loan terms principal and interest. Be able to solve the simple interest formula to find the amount of

### How To Calculate A Balance On A Savings Account

319 CHAPTER 4 Personal Finance The following is an article from a Marlboro, Massachusetts newspaper. NEWSPAPER ARTICLE 4.1: LET S TEACH FINANCIAL LITERACY STEPHEN LEDUC WED JAN 16, 2008 Boston - Last week

### English Language Proficiency Standards: At A Glance February 19, 2014

English Language Proficiency Standards: At A Glance February 19, 2014 These English Language Proficiency (ELP) Standards were collaboratively developed with CCSSO, West Ed, Stanford University Understanding

### 3 More on Accumulation and Discount Functions

3 More on Accumulation and Discount Functions 3.1 Introduction In previous section, we used 1.03) # of years as the accumulation factor. This section looks at other accumulation factors, including various

Reading for Literature ELACC3RL1 Key Ideas and Details: Ask and answer questions to demonstrate understanding of a text, referring explicitly to the text as the basis for the answers. 11/5/2012 1 Reading

### Lesson 6 Save and Invest: Bonds Lending Your Money

Lesson 6 Save and Invest: Bonds Lending Your Money Lesson Description This lesson introduces bonds as an investment option. Using a series of classroom visuals, students will identify the three main parts

### After completing this chapter, you will be able to: Savings Accounts

Chapter 30 Savings Accounts Section 30.1 Savings Account Basics Discuss the three reasons people save money. Describe compound interest. After completing this chapter, you will be able to: Section 30.2

### Lesson Description. Texas Essential Knowledge and Skills (Target standards) Texas Essential Knowledge and Skills (Prerequisite standards)

Lesson Description Students will consider the advantages of saving for a college education. Using an online savings calculator, students will explore how small amounts of money invested regularly, including

### American Literature, Quarter 1, Unit 2 of 3 The Puritan Tradition and The Crucible. Overview. (1 day = 50-55 minutes)

American Literature, Quarter 1, Unit 2 of 3 The Puritan Tradition and The Crucible Overall days: 16 (1 day = 50-55 minutes) Overview Purpose This unit will focus on the beliefs of early American Puritans

### Save and Invest Put It in the Bank

Lesson 3 Save and Invest Put It in the Bank Lesson Description In this lesson, students will compare two savings plans: stuffing a mattress with money and using a bank. After identifying the disadvantages

### Grade Level: Grade 3-5. Duration: 60+ minutes. Economic Concepts: Consumption, Money Management

Managing Your Money: Planning Your Budget by Barbara Brooks Simons (Millmark Education Corporation, Bethesda, Maryland) 2009. ISBN-13: 978-1- 4334-0655-3 Literature Annotation Financial literacy is discussed

### Bills, Budgets and Bank Accounts

Bills, Budgets and Bank Accounts Teacher s Guide Introduction to the Unit... 2 What are the activities? What is the assessment? What are the activity descriptions? How does this unit align with the Common

### Lesson Description. Texas Essential Knowledge and Skills (Target standards) Skills (Prerequisite standards) National Standards (Supporting standards)

Lesson Description This lesson focuses on comparing simple interest and compound interest. Students discover the differences between simple and compound interest by creating a year chart using both methods.

### Module 5: Interest concepts of future and present value

Page 1 of 23 Module 5: Interest concepts of future and present value Overview In this module, you learn about the fundamental concepts of interest and present and future values, as well as ordinary annuities

### CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY

CHAPTER 5 INTRODUCTION TO VALUATION: THE TIME VALUE OF MONEY 1. The simple interest per year is: \$5,000.08 = \$400 So after 10 years you will have: \$400 10 = \$4,000 in interest. The total balance will be

### CHAPTER 1. Compound Interest

CHAPTER 1 Compound Interest 1. Compound Interest The simplest example of interest is a loan agreement two children might make: I will lend you a dollar, but every day you keep it, you owe me one more penny.