Introduction to Savings and Checking Accounts LESSON PREPARATION AND TEACHER INFORMATION Lesson Summary: This lesson is intended for elementary students during a forty minute time period. The lesson teaches students the difference between savings and checking accounts, deposits and withdrawals, and introduces how to open an account with a bank. Lesson Objectives Define what a bank account is Explain the differences between savings and checking accounts List what is needed to open an account at a bank Discuss the differences between a deposit and a withdrawal Materials Needed Document Samples Handout (1 per student) Pencil for each student (teacher to provide) LESSON CONTENT Lesson Objective: What is a bank account? 4 minutes Introduction for Metro Bank Metro Money Sense Instructors Hello, my name is, and I work at Metro Bank. I m happy to visit your class today to talk with you about different types of bank accounts like checking and savings and generally about how these accounts work. Does anyone know what a bank account is? o Definition - An arrangement where a bank accepts deposits of money and keeps that money available for withdrawal by the account holder(s). Why do people have bank accounts? o To keep money safe o To have the federal government insure it o To earn interest from the bank What are the different types of accounts? o Checking, savings, holiday club etc. Lesson Objective: Explain the differences between savings and checking accounts 6 minutes Let s talk about two account types: savings and checking. A savings account is usually where customers put your money aside for a later use. Metro Bank: Metro Money Sense Introduction to Savings and Checking Accounts - Elementary 1
A checking account is usually used to make payments or purchases immediately by writing a check, using a plastic card called an ATM card, or debit Card, or by other ways. Quickly, have half of the class think of two or three things they would save for. Ask the other half of the class to think of two or three things their parents or relatives could pay for from a checking account. Ask the savings group to share their answers. Mention the use of a savings account to hold that money. Ask the pay for group to share their answers. Mention the use of a checking account to pay for the purchases or services shared by the students. Briefly discuss savings accounts. Savings account is a place to SAVE money for something in the future. Person putting the money into a savings account usually can have access or get to the money easily when ready to make their purchase. Savings accounts earn interest. Leaving money in the bank for some period of time What is interest? o Interest what the bank pays you for leaving your money in the bank. How can you earn more interest in a savings account? o By depositing more money. o By selecting an account that pays a higher interest rate. Briefly discuss checking accounts. Checking account is used to hold money for short periods of time because the money goes in and out more quickly than a savings account. Usually no interest is earned There are different ways to access money when needed o By writing a check, going to the bank and getting money from a teller, through the computer online, by calling on the phone, through an ATM (automated teller machine), by using a card to debit one s account, by mobile banking through a cell phone. Lesson Objective: What is needed to open an account at a bank? 3 minutes What items do you need to show/give to the bank to open an account? o You must have proper identification proving you are who you say you are: a student ID usually with a picture, a social security card, driver s license, passport, or other types of legal identification. o Your home address, your social security number, work information, etc. this information is used to fill out a special account opening form What does the bank give you so you can deposit and withdrawal money and the bank knows which one is yours? Hint: It helps identify the account. o An account number Metro Bank: Metro Money Sense Introduction to Savings and Checking Accounts - Elementary 2
When you open a savings or checking account at a bank, your signature is required on the special account opening form. This helps the tellers know YOU are allowed to deposit and withdrawal money. You would need the signature of an adult to open a banking account. Lesson Objective: Discuss the difference between a deposit and a withdrawal 20 minutes Ask students if they know the difference between a deposit and a withdrawal. A deposit into a savings or checking account is putting money into the account. You use addition to calculate how much money is in the account. The opposite of a deposit is a withdrawal. A withdrawal from a savings or checking account is taking money out of the account. Subtraction is used to calculate how much money is in the account. Hand out Document Sample worksheet to each student Have them look at the saving account ticket sample o Let the students know this ticket is only for savings accounts and only for depositing money. Review the parts of the savings account ticket: o Date o Account Holder s Name Students can write their own name. o Account Number Remember the account number the bank gave you when you opened the account. No two accounts have the same number. Students can make up their own 10 digit account number for this activity. o Amount to be deposited Prompt students to complete the ticket in order to make a $100 cash deposit. Circulate around the classroom to assist anyone who needs help. Point out the withdrawal ticket and explain it would be used when you want to take money out of the savings account. Review the parts of the completed ticket: o Date (have students write in today s date) o Account Holder s Name o Written amount section o Account Holder s Signature o Account Number Have the students write in their new account number from the savings deposit ticket. Mention: No two accounts have the same number. o Amount to be withdrawn (in numbers). Have the students write in $20.00 Now let s talk about the deposit and withdrawal for a checking account. The deposits for a checking account are similar to the savings account deposit, but the withdrawals are different. Metro Bank: Metro Money Sense Introduction to Savings and Checking Accounts - Elementary 3
Each month, your parents or family receive bills for things like the electric, telephone, car, etc. How are these bills paid? o Prompt that parents use checks or online banking because it is safer than mailing cash; a check serves as a receipt for payment. o Besides using cash and credit/debit cards, people use a check to pay for things because it gives permission to only one company or one person to receive a specific amount of money. A check is a withdrawal from the checking account. Have the students look at the sample check. All portions of the check have to be completed in order for the check to be processed. The check is a way for the account holder to tell the bank, in writing, how much money should be subtracted from the checking account and to who the money should be given. Show students the ATM/Debit card and ask if they know what it is called. How many of you have seen a grown-up use a card like this to pay for something? Where has it been used? (Movies, shopping mall, grocery stores, etc.) The ATM/Debit card is another way for the account holder to withdrawal money from a checking or savings account. It can be used at a store when making a purchase or at an ATM (automated teller machine) too! Keep in mind that anytime a person writes a check or uses a debit or ATM card, the person has to have money in the account to use these. If a person writes a check and there isn t enough money in the account, the check will not be paid and the bank may charge the person a fee. Wrap Up 7 minutes Group students into pairs and ask each pair to exchange 2 or 3 new things learned during the day s lesson. Call on select pairs to share with the whole class what has been learned. Metro Bank: Metro Money Sense Introduction to Savings and Checking Accounts - Elementary 4
Note for Educators: National Council of Teachers of Mathematics Principles and Standards for School Mathematics, 2012 Data Analysis and Probability Collect data using observations, surveys, and experiments [3-5] Recognize the differences in representing categorical and numerical data [3-5] Metro Bank: Metro Money Sense Introduction to Savings and Checking Accounts - Elementary 5