Saving
"The Saving standards focus on how people save money, where they save money, and why they save money."
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Grade 4
Saving 4-1
When people save money, they are choosing not to spend money today to be able to buy something in the future.
4-1a. Explain why it is often harder to save than to spend money.
4-1b. Give an example of buying something now versus saving money for the future and explain how they would make that decision.
4-1c. Find an example of an advertisement (in a newspaper, magazine, on TV, social media, or online) that is designed to influence people to spend money right away instead of saving their money.
Saving 4-2
A savings plan is a plan for setting aside money to pay for a future need, goal, or emergency.
4-2a. Map out a savings plan designed to achieve a future purchase objective.
4-2b. Give an example to illustrate the importance of having some money set aside for emergencies.
4-2c. Describe ways that people can decrease expenses to save more of their money.
Saving 4-3
People differ in their values and attitudes about saving.
4-3a. Discuss how life circumstances and experiences can cause people to differ in their values and attitudes about saving and their ability to save.
4-3b. Explain how a person’s friends and family can influence their values and attitudes about saving.
Saving 4-4
Safety and ease of access are factors to consider when deciding where to keep savings.
4-4a. Describe the advantages of saving money in an account at a financial institution rather than keeping the money at home.
4.4b. Identify safe places for people to keep their money.
Saving 4-5
Financial institutions often pay interest on deposit accounts to attract customers to deposit money in their institution.
4.5a. Explain why financial institutions, such as banks and credit unions, pay interest to depositors.
4-5b. Compare the interest rates on savings accounts at two financial institutions.
Grade 8
Saving 8-1
People save money for many different purposes, including large purchases such as cars and homes, education costs, retirement, and emergencies.
8-1a. Identify the most common reasons that people save money for the future.
8-1b. Create a savings plan that will allow someone to make a large purchase in one year, 5 years, and 10 years.
Saving 8-2
Savings decisions depend on individual preferences and circumstances, and can impact personal satisfaction and financial well-being.
8-2a. Compare personal attitudes toward saving to those of a friend or relative.
8-2b. Explain how a person’s personality type might affect their willingness to save or to stick to a savings plan.
8-2c. Identify life situations that can make it difficult for a person to save or to stick to a savings plan.
8-2d. Discuss how savings decisions can affect financial wellbeing.
Saving 8-3
Financial institutions pay interest to depositors and loan out the money to borrowers who pay interest on their loans.
8-3a. Compare and contrast different types of financial institutions and their products and services.
8-3b. Compare the interest rate paid by a financial institution on savings accounts to the interest charged by the same institution on loans.
8-3c. Explain how financial institutions get the money to pay interest to their customers who deposit money in savings accounts.
Saving 8-4
Interest earned on savings is the interest rate multiplied by the balance in the account, which includes the original amount saved (principal) and previously earned interest.
8-4a. Differentiate between principal and interest.
8-4b. Demonstrate how earning a higher interest rate on money in a savings account will help a person to reach their savings goal sooner.
8-4c. Use the Rule of 72 to approximate how many years it will take for savings to double in value at different rates of interest.
Saving 8-5
Compound interest is interest on both the original principal and previously earned interest, as compared to simple interest which is only interest on the original principal.
8-5a. Explain the benefit of compound interest as compared with simple interest.
8-5b. Demonstrate how annual interest earned increases over time when both the original principal and earned interest are left in a savings account.
Saving 8-6
Checking and saving deposit accounts in many financial institutions are insured up to certain limits by the federal government
8-6a. Explain the importance of federal deposit insurance.
8-6b. Compare Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) insurance coverage limits for checking and savings accounts offered at financial institutions.
8-6c. Identify types of accounts that do not offer deposit insurance.
Grade 12 (Coming in the future)
Saving 12-x
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