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INTRODUCTION TO SAVING AND SPENDING
Key Concepts Role of banks in an economy; saving money
Summary This lesson will help students understand why saving money is important. Students will be able to list some benefits of saving and create a simple savings plan.
Overview & Lesson Objectives This lesson is intended for students in kindergarten and first grade. The lesson fosters a desire to save money among students. The lesson also encourages students to use a budget when they need to decide how much money to save and spend.
Students will be able to: Explain why it is important to save. Recognize the benefits of saving money at the bank. Create a plan to save for a designated item.
Time Allocation: 15 - 20 Minute Prep 35 - 40 Minutes Engagement
Materials: Enough coins and small items to provide two per student Labels from appealing treats to show children Copies of Coin worksheet (cutting out individual coins) Copies of Drawing activity page (one per student)
Lesson Begins: Setting the Stage
Background Builder #1: Give each student a paper coin. Allow students to decide whether they would like to spend it now by putting it in their pocket or saving it by giving it back to you. Mention that if they give their coin to the designated banker until the end of the lesson they may receive something additional. Point out why it is a good idea to save; you earn extra money, and you can afford things that cost more money.
Background Builder #2: Select four students and hand each a coin page. Have those four students stand in front of the room showing the class each coin. Have the coins placed in order according to value. Children will need guidance because at this age they may order them by size as all coin values are not necessarily introduced or mastered just yet. Emphasize that some coins are worth more and some are worth less, so some will buy more while some will buy less. Remember to tell students where to place the least and most valuable coins because the concept of left and right isn’t usually mastered yet either. Students may also practice this activity in small groups.
State the Objective: tell the students what they will be able to do upon conclusion of the lesson.
“At the end of this lesson, you will be able to explain why saving is important. You should also decide that it’s a good idea to save a certain amount every time you receive money.”
Lesson Continues
Ask/discuss the following questions: What does it mean to save something? What are some things you save? Why do you think it is important to save?
Check for Understanding: Why is it important to save? Why shouldn’t you save all of your money? (You might have to buy lunch) Why should you save your money in a bank? (Safety and Interest)
Lesson Closes
At the end of the lesson, give a second coin to those students who saved the first coin in giving it back to you, this second coin is interest they earned for saving the first coin. Tell students you’d like them to make a decision today on why to save money. They should think of an item for which they have a desire to buy. Then have students draw a picture of that item, look at it, and decide how to save in order to afford it. Given that all students aren’t able to write the plan at this age, they can simply share the plan with a fellow student, try to write it on their own, draw a picture to represent their plan, or they can relay it to the teacher who will assist in writing the ideas.
