Savings Accounts

45-minute agenda

1. 0–5 min

   Warm-up

   Post: “If a bank offered to pay you for keeping your money there, how would you decide which bank to choose?”

2. 5–12 min

   Direct instruction

   Present the lesson slides. Make sure students leave with these points:

   • Savings is for money with a job later — goals and emergencies.
   • APY tells you what you'll earn in a year, including compounding.
   • Rates vary a lot between accounts. Compare, and check for fees and minimums.
   • Automate it: pay yourself first on payday.

   Use the “See it” slide (Checking vs. savings) to make the idea visual.

3. 12–17 min

   Worked example

   Walk through “Same $1,000, very different results” on the slides. Pause before the result and ask students to predict it.

4. 17–22 min

   Live demo

   Project compare two savings accounts from the slides. Change one input at a time and have students call out what they think will happen.

5. 22–32 min

   Rate Shopping

   Format: pairs · 10 minutes

   1. Post three accounts: A pays 0.01% APY with no fees. B pays 4.00% APY but charges $5 a month if the balance is under $500. C pays 3.50% APY with no fees.
   2. Pairs estimate one year of interest minus fees for a steady $1,000 balance in each account.
   3. Repeat for a steady $300 balance.
   4. Pairs choose the best account for each saver and write one sentence explaining why the answer changed.

   What to look for: $1,000: A ≈ $0.10, B ≈ $40, C ≈ $35 → B is best. $300: A ≈ $0.03, B ≈ $12 − $60 fees = −$48, C ≈ $10.50 → C is best. Fees and minimums can outweigh a higher rate.

6. 32–37 min

   Check for understanding

   Use the question slides — or run them as a Four Corners game. Answers:

   1. Where does this money most sensibly belong? — C. In a savings account, separate from spending money
   2. At a 4.00% APY, $1,000 earns about 8 times as much in a year as it would at a 0.50% APY. — True
   3. Why does this strategy work so well? — A. Saving happens before spending decisions, so it doesn't rely on willpower.
7. 37–42 min

   Discussion

   • Why do you think some banks pay much higher savings rates than others?
   • What's one savings goal you could automate this year?
8. 42–45 min

   Exit ticket

   Prompt: What does “pay yourself first” mean?

   Answer: Move money into savings automatically on payday, before spending on anything else.