Money and Banking: Interest, Loans and Saving

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Social Studies · Economics
SP-ECON-003 · Free to print and use in your classroom · substituteplans.com
Page 2
Money and Banking: Interest, Loans and Saving
Social Studies · Economics · Grades 9-12 · 50 minutes
Time needed
50 minutes (one class period)
Prep
Copy the 2-page worksheet (one per student). Write the interest formulas on the board.
Technology
None.
Student
independence
High. Students calculate individually with optional calculators.
Copies to make
One 2-page worksheet per student
Materials
Pencils, Worksheet, Calculator (recommended), Whiteboard or chalkboard
Goal for today: Students will identify the three functions of money and calculate simple interest, compound interest
and the total cost of a loan.
Before the bell
☐ Copy the worksheet, one per student (2 pages).
☐ Write on the board: SIMPLE INTEREST = principal × rate × years. COMPOUND INTEREST: each year’s interest
is added to the balance, so next year’s interest is figured on the bigger amount.
☐ Also write: Rule of 72: years to double ≈ 72 ÷ interest rate (in percent).
☐ Write the three functions: medium of exchange, store of value, unit of account.
☐ Keep the answer key on your desk. Calculators help but are optional.
Say this to start
Good morning! Today is an economics lesson about money and banks. You will see why money works better than
trading goods, and then do practice calculations on interest, which is the price of using someone else’s money. The
formulas are on the board and the worksheet walks through each step.
Run of show
Minutes
What you do
What students do
0–5
Take attendance. Hand out the worksheet face down.
Wait for directions.
5–13
Read the board aloud. Work the example: $100 at 10%
simple interest for 2 years = 100 × 0.10 × 2 = $20.
Listen and copy the formulas.
13–22
Tell students to complete questions 1–5 (functions of
money and barter).
Match, then answer multiple choice.
22–40
Tell students to complete the growth table and questions
6–11, the interest and loan calculations.
Calculate carefully. Calculators are fine.
40–47
Tell students to answer questions 12–14.
Use the Rule of 72 and explain a banking
idea.
47–50
Collect worksheets.
Hand in work.

SubstitutePlans.com
Social Studies · Economics
SP-ECON-003 · Free to print and use in your classroom · substituteplans.com
Page 3
If things go wrong
• If students get slightly different cents, tell them to round to two decimals at the end; answers within a cent
are fine.
• If a student mixes up simple and compound interest, say: “Simple always uses the original amount.
Compound uses the growing balance.”
• If students ask about real banks, tell them the numbers are practice examples only.
• If students finish early, check the table and use the early finisher list.
Early finishers
• Explain in two sentences why someone might choose to keep money in a savings account instead of under a
mattress.
• Use the Rule of 72 to estimate how long it takes money to double at 4% and at 12%.
Support and challenge
• Support: Allow calculators and have students do the match, the table and questions 6, 7 and 9 only.
• Challenge: Ask students to build the year-by-year table for $1,000 at 5% for 5 years.
Notes for the teacher (you fill this in)
Jot a few lines before you leave. A full Daily Sub Report is in the free Sub Survival Kit at SubstitutePlans.com.
How far the class got / what to pick up next:
Students who were especially helpful:
Anything the teacher should know: