1. Savings: Needs, and Wants S.S.4.FL.1.4 People can earn interest income from letting other people borrow their money. Explain why banks and financial institutions pay people interest when they deposit their money at these institutions. S.S.4.FL.2.2 Explain that people make choices about what goods and services they buy because they can’t have everything they want. This requires individuals to prioritize their wants. Gr. 4 Financial Literacy

2. Vocabulary  Balance: amount of money in your account  Budget: a plan for spending money  Interest: a fee paid for borrowing/saving money  Fixed Income: income that does not vary  Flexible Income: income that varies  Investment: the act of finding ways generate profit  Leisure: time for recreation (fun)  Percentage: a part of a whole  Prioritize: treat something as more important than something else  Saving: money set aside for future use  Savings Account: a type of bank account that pays interest Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

3. Essential Questions What are the advantages of saving money at a bank? How can you make better decisions about spending? Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

4. What message does the proverb reveal about money? (LAFS.4.L3.5) What information can be gained by analyzing the image? (LAFS.4.RI.3.7) Image Source: http://cdn.patch.com/users/22779541/2014/0 9/T800x600/54136baaa8fd2.jpg Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

5. How Banks Work Banks lend money. Interest is a fee paid for borrowing money. When you save your money in the bank, the bank pays you interest. What do you think the bank does with the money you save? Why? Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

6. What does borrowing money and saving money have in common? Where do banks get their money? 1.People who keep their money in the bank. 3. Other Banks who loan them money (such as the Federal Reserve) Interest (a fee paid for borrowing money) 2. People who pay interest for borrowing money from the bank. Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

7. Savings Accounts Describe the reasons provided that support the idea that a savings account is a good idea. Use at least two details from the video. (LAFS.4.RI.3.8) Click to learn more. Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2 Click to play video outside of PPT.

8. Interest Scenario 1 Click here to return to previous slide. John puts $100 in the bank for a year. During the year, the bank lends John’s $100 to Mary. At the end of the year, Mary gives the bank $100 plus the interest she must pay, so she gives the bank $108. At the end of the year, John takes out the $100 he put in earlier plus the interest it earned, so he gets $105. JohnMaryBank Saves $100 in the bank Borrows $100 from the bank Lends John’s $100 to Mary Earns $5 interest (5% or 5 cents per dollar) Pays $8 interest (8% or 8 cents per dollar) Makes a 3$ profit (3% or 3 cents per dollar) Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

9. Percent (%) Click here to return to previous slide. Percent means: Part of a whole Means per hundred Compares a number to 100 A number followed by a percent symbol (%) has denominator of 100. PERCENTFRACTIONDECIMAL 50%50/100.50 10% 10/100.10 90%90/100.90 Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

10. Needs vs. Wants According to the video segment, what is the difference between a need and a want? Click to learn more. Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2 Click to play video outside of PPT.

11. Need or Want? Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

12. Prioritizing Needs Rent/Mortgage Groceries Video Game System Electricity/Water Internet/Cell Phone Cable TV Shoes/Clothing Going to a Restaurant Leisure/Entertainment Designer Shoes/Clothing Vacation/Travel Healthcare/Insurance Vehicle/Transportation Luxury Vehicle Food/Water Safety & Security Shelter NeedsWants Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

13. Review Questions 1.List two advantages of saving money. 2. How do banks make their money? 3. Give an example of a need and a want. 4. How can we make sure we are able to afford our basic needs? Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

14. Answers 1.List two advantages of saving money at a bank. 2. How do banks make their money? 3. Give an example of a need and a want. 4. How can we make sure we are able to afford our basic needs? It’s a safe place to keep your money Banks pay interest They charge interest for borrowing money Need: food, clothing, shelter Want: toys, electronics Prioritize needs and limit spending on wants Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

15. What message does the proverb reveal about money? (LAFS.4.L3.5) What information can be gained by analyzing the image? (LAFS.4.RI.3.7) Image Source: http://cdn.patch.com/users/22779541/2014/0 9/T800x600/54136baaa8fd2.jpg Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2

16. Sources Lesson adapted from Discovery Education’s Money: Kids and Cash Lesson Plan http://www.discoveryeducation.com/teachers/free-lesson-plans/money-kids-and- cash.cfm Discovery Education, (2010). Saving for a Goal. [Video Segment]. Available from http://www.discoveryeducation.com Discovery Education, (2010). Needs versus Wants. [Video Segment]. Available from http://www.discoveryeducation.com Grade 4 Financial Literacy SS.4.FL.1.4, SS.4.FL.2.2, SS.4.FL.3.2