4 SS4

LO 1

How Can Your Money Grow?

Formative Assessment:

· How can you make money?

· What is a savings account?

· How can your money grow?

Instructional Strategies or Activities:

Have students brainstorm different ways to make money and invest money, both as children at their age and as adults. Their list should include: employment, their own business, savings, investments (stock, etc.), gifts, allowance, and rent.

Tell them that today they will be learning how their money can grow in a savings account.

Explain compound interest. Compound interest is when interest is gained on interest and principal earned. Explain that principal is the original amount invested.

Principal (Amount Invested) x Rate= Interest for the current month

Have the students pretend that they found a bank that pays 5% each month. If they start with $1,000, how much money would they have at the end of the year? Do the first four months together. Have the students complete for the remaining months of the year. How much money did they make in one year?

Look up local banks on the Internet. Bookmark the sites. Look at the different types of accounts each of the banks offers and their interest rates. When is the interest gained? Quarterly? Monthly? Yearly? What are the requirements of each of the accounts? If you can’t find your bank on the Internet, have students call a local bank and get their rates on different accounts.

Summative Assessment:

Have students discuss their findings. What account and bank would they choose? Why? Do they think it is a good idea to put their money in a savings account?