FL. Saving Strategies. SY 22/23

Lesson Objective(s)

​SWBAT

• Identify various rules of thumb and strategies to save money

• Determine whether a direct deposit or manually saving is the better strategy for them

• Understand how compound interest works to increase savings.

​Prior lessons and concepts review!

Multiple Choice

An emergency fund is a type of savings account that you can use to cover unexpected expenses

• True

• False

Multiple Choice

It is recommended to keep at least three months' worth of living expenses in your emergency fund

• True

• False

Multiple Choice

It is better to use credit cards to pay for unexpected expenses instead of using your emergency fund.

• True

• False

Multiple Select

How much money should you aim to have in your emergency fund?

• Enough to cover one month's worth of living expenses

• Enough to cover three months' worth of living expenses

• Enough to cover six months' worth of living expenses

• It doesn't matter, as long as you have some money set aside for emergencies

Multiple Choice

Where should you keep your emergency fund?

• In a high-yield savings account

• In a checking account

• In a money market account

• In a CD account

Your Savings Goals Worsheet

Go back to google classroom and work on Part I of the worksheet.

• I suggest you work with a partner or in groups of three.

• The estimated time to complete this activity is 10 minutes.

​Learning Resource 2

The 50-20-30 budgeting rule is a well known rule of thumb and is considered easy to follow. Read the article on the next slide and then answer two questions.

50/30/20 Budget Calculator - NerdWalletNerdWallet Home PageNerdWallet Home Page

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Open Ended

List at least three reasons why the 50-20-30 rule is easy for people to follow, especially those who are new to budgeting and saving.

Open Ended

This article recommends that 20% of your income is meant for your savings, investments, and payments to reduce debt. What are the potential risks of having all three of these buckets belong in the same category?

Drag and Drop

​

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apps are tools that can help you budget, track your expenses, and save money on a variety of expenses. These apps often come with features such as bill pay reminders, and personalized ​

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for ways to save money. Some apps may also offer ​

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or rewards for making certain purchases, or for reaching savings goals. It is important to ​

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different money-saving apps and choose one that meets your needs and fits your ​

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.

Drag these tiles and drop them in the correct blank above

Money-saving

recommendations

cashback

compare

financial goals

​Compound Interest Explained

When you save in an interest-bearing account, accumulating savings becomes even easier. How can you use compounding to increase your savings? Watch the following video from Investopedia and then be ready to answer questions.

Multiple Choice

What is compound interest?

• Interest that is earned on an investment or savings account only on the original principal

• Interest that is earned on an investment or savings account on both the original principal and the accumulated interest from previous periods

• Interest that is earned on an investment or savings account only if the account is held for a certain number of years

• Interest that is earned on an investment or savings account only if the account has a certain minimum balance

Dropdown

Which of the following best describes how compound interest can help you to accumulate savings faster? ​ By earning interest...​

Select answer

Multiple Choice

If you deposit $100 into a savings account that earns compound interest at a rate of 5% per year, how much interest will you have earned after one year?

• $5

• $100

• $105

• 0

Your Savings Goals Worksheet

Go back to google classroom and work on Part II of the worksheet.

• I suggest you work with a partner or in groups of three.

• The estimated time to complete this activity is 10 minutes.

Open Ended

Complete the sentence. Today I learned...