1. Reasons for Saving Money SS.4.FL.3.1 Identify ways that income is saved, spent on goods and services, or used to pay taxes. SS.4.FL.3.3 Identify ways that people can choose to save money in many places – at home, in a piggy bank or at a commercial bank, credit union, or savings and loan. SS.4.FL.3.4 Identify savings goals people set as incentives to save. Gr. 2 Financial Literacy

2. Lesson Opener Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 Image Source: http://www.coffee-webstore.com/blog/wp-content/uploads/2015/04/mms_tribu.jpeg Your teacher has given you an M&M. You can either eat it now or wait 30 minutes and get 2 more M&M’s. Which do you choose?

3. Essential Questions Why is saving money important? Why should you keep your money in a bank? Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 Image Source: http://www.reddirtreport.com/sites/default/files/articles/ 2015/10/images/piggybank.png

4. You have been given $20 for your birthday. Would you spend it or save it? Image Source: http://classroomclipart.com/clipart/Clipart/Birthday.htm Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 If I wait and save my money, I can buy that new bicycle I want. I really want to buy something now, what can I buy with $20?

5. If you decide to save your money. Where would you save it? Read the options below and match with the corresponding outcome. Image Source: http://classroomclipart.com/clipart/Clipart/Birthday.htm Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 Carry the money in your pocket. Put your money in a bank. Put your money in a piggy bank. Bury your money in the ground. You might forget where you hid it. You’ll save the money, but not earn interest. You might lose it or be tempted to spend it. You’ll save it and earn interest on it. OptionOutcome

6. Banks are institutions where people put their money to keep it safe. Banks also lend money for people to buy cars, houses, pay for college, and open businesses. Image Source: https://upload.wikimedia.org/wikipedia/commons/e/ee/UsuryDurer.jpg Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4

7. Banks began a very long time ago – about the time when Columbus was sailing to America. The word “bank” comes from the Italian word “banco” which means bench. Moneylenders sat on benches in the marketplace and waited there to do business with other people. Image Source: https://upload.wikimedia.org/wikipedia/commons/e/ee/UsuryDurer.jpg Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4

8. Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 How do banks work? Think of your M&M and how if you save it for 30 minutes, you get two more. Those extra M&M’s are like the bank paying you interest. Banks lend money. Interest is a fee paid for borrowing money. When you save your money in the bank, the bank pays you interest.

9. Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 Interest makes your money grow over time. Think back at your M&M. If every thirty minutes you get paid interest in the form of 2 more M&M’s, what will happen? Think of your M&M. What happens if you save it for 30 minutes, you get two more. It’s like the bank paying you interest. StartAfter 30 min30 min later

10. Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 Banks pay interest in the form of a percent. Percent means “per hundred”. The symbol for percent is “%”. Use the hundreds chart to illustrate percent. 1% means 1 per hundred. 2% means 2 per hundred. 3% means 3 per hundred. 4% means 4 per hundred. 5% means 5 per hundred. 6% means 6 per hundred. 7% means 7 per hundred. 8% means 8 per hundred.

11. Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 Imagine you open a savings account with $100. The bank pays you 5% interest for keeping your money in the bank for a year. How much money would you have after a year? $100 was deposited into a savings account You earn $5 in interest

12. Closing Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4 Image Source: http://www.coffee-webstore.com/blog/wp-content/uploads/2015/04/mms_tribu.jpeg Your teacher has given you an M&M. You can either eat it now or wait 30 minutes and get 2 more M&M’s. How many M&M’s do you have now?

13. Sources Hands on Banking: Instructor’s Guide http://www.handsonbanking.org/en/resources/Kids_T_Guide.pdf Lesson Adapted from: The History of Banking and Saving https://www.mymetrobank.com/filestore/Grade2- 3HistoryofBankingandSavings.pdf Lesson Plan: Why We Save http://ecedweb.unomaha.edu/lessons/saveK-2.pdf Grade 2 Financial Literacy SS.4.FL.6.1, SS.4.FL.6.2, SS.4.FL.6.3, SS.4.FL.6.4