Penny Saved
published on: 2/28/2003
Contributing Teacher(s): Debbie Foster
Subject Area:
Tech Prep/Business, Management and Technology Grade Range: Lower Elementary (K-3), Upper Elementary (4-5) Materials Needed: References listed below, drawing and art supplies, copies of savings deposit/withdrawal slips, copy of savings passbook page.
Objective:
Process Standards:
- Goal 3.3 develop and apply strategies based on one’s own experience in preventing or solving problems
- Goal 3.6 examine problems and proposed solutions from multiple perspectives
- Goal 4.5 develop, monitor and revise plans of action to meet deadlines and accomplish goals
Content Standards:
- Communication Arts 1. Speaking and writing standard English (including grammar, usage, punctuation, spelling, ...)
- Communication Arts 2. Reading and evaluating fiction, poetry and drama
- Communication Arts 6. Participating in formal and informal presentations and discussions of issues and ideas
Time Allowance: Initial instruction will take two to three 50 minute class periods. Long term involvement with the local bank will continue throughout the school year.
Description: Students are encouraged to save money by setting consumer goals and using a savings account at the local bank.
Comments: In participation with Mid Rivers Tech Prep Consortium
Classroom Component: Determining Prior Knowledge:
- The teacher reads Alexander, Who Used to be Rich Last Sunday and will question students about how they get or have the money they need in order to buy goods or services.
- Ask students how many of them save money. Include in discussion where they save the money, how they decide how much to save, and why they save.
Advance Preparations:- Collect copies of Alexander, Who Used to be Rich Last Sunday and other literature selections about saving money (see references).
- Drawing paper and art supplies.
- Copy of "My Savings Plan" for each student.
- Copy of savings deposit/withdrawal slips for each student.
- Copy of savings passbook page for each student.
- Transparency of savings slips and passbook.
- Sheet of teacher made savings deposit/withdrawal transactions to be recorded in passbook.
- Contact local bank to talk with students about how to open a savings account and how banks provide services to consumers. The bank representative may discuss the costs and benefits of saving, the reasons why people save, and when it is best to save rather than spend.
- Secure parent permission to allow student to open saving account with local bank (Send letter to parents about the program).
Lesson Description:- Teacher explains that people buy and use goods and services to satisfy their wants and needs. Some wants and needs can be purchased quickly. Others require saving to they can be bought in the future.
- Instruct students to make a list of all goods and services they want. Then ask if they can afford to purchase all of the things they have listed today.
- Instruct students to select one good or service from the list for which they will be willing to save. The choice should be realistic and one that isn't too expensive so they don't have to wait too long to get it.
- Pass out drawing paper and art supplies and have students draw a picture of the item for which they are willing to save.
- When pictures are complete, students should write below the picture the approximate price of the item, the date by which they wish to purchase the good or service, and a brief explanation of why they want the item or service.
- Hang completed pictures on board entitled "My Savings Goal".
- Discuss if having a goal will make savings easier, and if they will make different spending decisions because of their goal.
- Explain that having a goal is an INCENTIVE to save. An incentive is a factor that influences people's behavior. Having an incentive makes it easier to save.
- Guide the students in making a personal savings plan in order to purchase their good or service.
- Distribute a copy of "My Savings Plan" sheet to each student. Demonstrate how to complete the equation using the following example:
- Cindy wants to buy a portable CD player that has a price of $72. She would like to have the CD player in 8 months. To achieve her goal, she must save $9 each month. (Show how to divide price by months to get the amount needed to save each month).
- Cindy wants to buy a portable CD player that has a price of $72. She would like to have the CD player in 8 months. To achieve her goal, she must save $9 each month. (Show how to divide price by months to get the amount needed to save each month).
- After students complete their own personal savings plan discuss:
- Is this a realistic amount for you to save each week or month?
- What can you do if the amount if too much or too little? (Change date, change amount to save or save more often.)
- What will you give up by saving this amount each week or month? (The most valued item they would have purchased with the amount of money.)
- Open a discussion about ways to get money. List ideas on chart paper or on the board.
- Explain that the next step is to decide where to keep their savings. Ask students for some alternatives and list on the board (piggy bank, parents hold it, in drawer, under mattress, savings account, etc.). Discuss pros and cons of each alternative. Encourage children to set up a savings account.
- Invite a local banker to speak to the class about opening a savings account.
- Distribute copies of savings passbook and savings deposit slips for "Danny Savesalot". Teacher models on overhead how to fill out deposit slip and how to record transaction in the passbook. Students transfer information onto their passbook sheet.
- Distribute sheet of savings transactions for students to record on slips and in passbook.
- Teacher walks around room and checks for understanding.
- Send home teacher made letter about savings program (see sample).
- One week later, bank representative returns to open actual savings accounts for students with signed permission forms.
- Set up monthly visits with bank representative to collect savings from students. Continue activity throughout the school year. Prepare some special recognition for those students who meet their goal by the end of the school year.
References:- Viorst, Judith. Alexander, Who Used to be Rich Last Sunday. New York: Macmillan Publishing, 1978.
- Kale, Kathy S. The Kid's Complete Guide to Money. New York: Knopf, 1984.
- Ziefert, Harriet. A New Coat for Anna. New York: Knopf, 1986.
- Kehret, Peg. The Richest Kids in Town. New York: Cobblehill Books, 1994.
- Haskell, Diana & Douglas. Dollars and Sense. The Missouri Bank at School Program for Teaching Personal Finance Economics for Grades 3-5. New York: National Council on Economic Education, 1996.
My Savings Plan
I want to save for ___________________________________________________.
The Price is $______________________________________.
I have _______________ (days, weeks, months or years) to save.
TOTAL PRICE
=
NUMBER OF
DEPOSITS
(DEPOSIT DOLLARS)
X
AMOUNT OF
EACH DEPOSIT
($ AMOUNT)
( ) = ( ) X ( )
Passbook Savings Transactions for Danny Savesalot
Enter each of the savings transactions below into the passbook. Add deposits and subtract and withdrawals to maintain your passbook balance.
9-8-98 Opens account $ 5.00 For additional information contact :
Debbie Foster
Clopton Elem.
Pike Co. R-III
(573) 485-2488
EMAIL: harvey@clopton.k12.mo.us
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