Activity One: Review of Lesson Five Homework Task
1. Ask for volunteers to read out loud their paragraph on the benefits of saving (Lesson Five: Homework Task). As they read, you can write the main points they make on the white/blackboard.
2. Facilitate a short whole class discussion using the following questions as prompts:
- Do you think it is possible for everyone to save?
- Do you think it is easy to save money?
- Where do people generally keep their savings? What are the advantages/disadvantages of keeping savings in these places?
Activity Two: Crossword puzzle
1. Divide the class into pairs.
2. Invite each pair to complete the Crossword puzzle which will expose students to terminology like ‘lump sum’ and ‘deposit’ in a supported way, and provides student-friendly explanations for each.
3. Tell pairs of students to swap and correct completed crosswords.
Activity Three: Compound interest
1. Remind students of the range of places that people put their savings (Lesson Six: Activity One).
2. Divide the class into small groups.
3. Invite each group to come up with a list of questions they might have if they were opening a savings account.
4. Invite feedback from a sample of groups, recording student responses on the white/blackboard.
5. Explain that a savings account not only earns interest on the original amount deposited, but it also earns interest on the interest – this is called compound interest, and over time it can really add up.
6. Ask each student to write down which they would pick – €1 million now or a cent doubled every day for 30 days?
7. Display Teacher Resource Sheet: Compound interest on the whiteboard or overhead projector.
8. Ask students if anyone knows what % compound interest rate is shown on Teacher Resource Sheet: Compound interest? (Answer = 200%)
9. Explain that the students who choose the immediate €1 million (Step 6) would lose out on over €4 million in the long run!
10. Conclude by explaining that although compound interest rates are never as high as this example, money in a savings account can grow, as compound interest is paid both on money deposited and on the interest accumulated to date!