2.3 How We Save (Due 9/21/22 SoC)

Last updated about 1 year ago

22 questions

Note from the author:

In this lesson, you will learn to:
Identify various rules of thumb and strategies to save money
Determine whether a direct deposit or manually saving is the best strategy for them
Understand how compound interest works to increase savings
Explain how to use the Rule of 72
Recommend different mobile apps that can help them manage and increase their savings

Instructions

In this lesson, you will learn to:
Identify various rules of thumb and strategies to save money
Determine whether a direct deposit or manually saving is the best strategy for them
Understand how compound interest works to increase savings
Explain how to use the Rule of 72
Recommend different mobile apps that can help them manage and increase their savings

2.3 How We Save (Due 9/21/22 SoC)

Last updated about 1 year ago

22 questions

Note from the author:

In this lesson, you will learn to:
Identify various rules of thumb and strategies to save money
Determine whether a direct deposit or manually saving is the best strategy for them
Understand how compound interest works to increase savings
Explain how to use the Rule of 72
Recommend different mobile apps that can help them manage and increase their savings

Instructions

In this lesson, you will learn to:
Identify various rules of thumb and strategies to save money
Determine whether a direct deposit or manually saving is the best strategy for them
Understand how compound interest works to increase savings
Explain how to use the Rule of 72
Recommend different mobile apps that can help them manage and increase their savings

Discussion Prompts
Discuss these questions with your classmates or with a partner.

Required

What are some things your family does on a regular basis to save money? How often does your family do these things? If your family does not save. What are some methods you could use to start saving? UCS

New to Budgeting? Why You Should Try the 50-20-30 Rule
The 50-20-30 budgeting rule is a well known rule of thumb among financial experts. Read the article to learn more about it, and then answer the questions to the right.

Required

Why is the 50-20-30 rule easy for people to follow, especially those who are new to budgeting and saving? UCS

Required

This article recommends that 20% of your income is meant for your savings, investments, and payments to reduce debt. What are 2 potential risks of having all three of these buckets belong in the same category? UCS

1._______ 

2._______ 

Pay Yourself First
Automating your saving can make it even easier for you to save! Watch this video to learn more about the benefits of making your savings automatic. Then, answer the questions.

Required

Why might some people still prefer manually saving their money (e.g. manually transfer or deposit money into their savings account)? UCS

How to Save for Multiple Goals at the Same Time
Another strategy you can use to meet your savings goals is to open a savings account for each goal. Find out if this is a method you want to use by reading this article. Then, answer the questions on the right

Required

The article states, “Shannon certainly knows what her dollar amounts are, but she’s mostly unclear as to the timeframe.” Why is it important to know the timeframe when working towards your savings goals? UCS

Required

Your friend, Alicia, is a graduating senior about to head to college in the fall. Alicia has a single checking account and is eager to open a savings account. After reading this article, she is inspired to open up multiple savings accounts to work towards her goals. Do you think it’s a good idea for Alicia to do so? Why or why not? UCS

How to Save Money Every Day
After watching this video, can you think of some additional methods to save money based on your own experiences?

Required

After watching this video, can you think of 4 additional methods to save money based on your own experiences? UCS

_______ 

_______ 

_______ 

_______

Day 2 9/20/22

The Power of Compound interest
Use the compound interest calculator to answer the following questions.

Required

If you started with a $1000 investment and left it alone for 45 years at a constant rate of 4% interest rate compounded quarterly, how much would money would have at the end?

Required

Compound Interest Explained
What is compound interest? How can you use it to increase your savings? Watch this video and then answer the questions to the right.

Required

How does the age a person starts saving at impact the amount they can earn in compound interest?

The Rule of 72
The Rule of 72 is a well known trick that you can use when determining your financial goals. Watch this video to learn more about it and then answer the questions on the right.

Required

Finish this sentence: The Rule of 72 tells me…

Required

It took Samantha 6 years to double the money in her account. What interest rate was Samantha receiving on her account?

Required

You are trying to pick an account to put your money in. Why is the Rule of 72 useful during this process?

Exit Ticket

Required

2.3 How We Save (Due 9/21/22 SoC)

In this lesson, you will learn to:

In this lesson, you will learn to:

2.3 How We Save (Due 9/21/22 SoC)

In this lesson, you will learn to:

In this lesson, you will learn to:

Discussion Prompts

What are some things your family does on a regular basis to save money? How often does your family do these things? If your family does not save. What are some methods you could use to start saving? UCS

New to Budgeting? Why You Should Try the 50-20-30 Rule

Why is the 50-20-30 rule easy for people to follow, especially those who are new to budgeting and saving? UCS

Pay Yourself First

Why might some people still prefer manually saving their money (e.g. manually transfer or deposit money into their savings account)? UCS

How to Save for Multiple Goals at the Same Time

The article states, “Shannon certainly knows what her dollar amounts are, but she’s mostly unclear as to the timeframe.” Why is it important to know the timeframe when working towards your savings goals? UCS

How to Save Money Every Day

Day 2 9/20/22

The Power of Compound interest

If you started with a $1000 investment and left it alone for 45 years at a constant rate of 4% interest rate compounded quarterly, how much would money would have at the end?

Compound Interest Explained

How does the age a person starts saving at impact the amount they can earn in compound interest?

The Rule of 72

Finish this sentence: The Rule of 72 tells me…

It took Samantha 6 years to double the money in her account. What interest rate was Samantha receiving on her account?

You are trying to pick an account to put your money in. Why is the Rule of 72 useful during this process?

Exit Ticket

Discussion Prompts

What are some things your family does on a regular basis to save money? How often does your family do these things? If your family does not save. What are some methods you could use to start saving? UCS

New to Budgeting? Why You Should Try the 50-20-30 Rule

Why is the 50-20-30 rule easy for people to follow, especially those who are new to budgeting and saving? UCS

Pay Yourself First

Which strategy will help you save the most money?

What is the benefit of automating your savings account contributions?

What does it mean to "pay yourself first"?

Why might some people still prefer manually saving their money (e.g. manually transfer or deposit money into their savings account)? UCS

How to Save for Multiple Goals at the Same Time

The article states, “Shannon certainly knows what her dollar amounts are, but she’s mostly unclear as to the timeframe.” Why is it important to know the timeframe when working towards your savings goals? UCS

How to Save Money Every Day

Day 2 9/20/22

The Power of Compound interest

If you started with a $1000 investment and left it alone for 45 years at a constant rate of 4% interest rate compounded quarterly, how much would money would have at the end?

If you started with a $1000 investment for 45 years and added $100 at a constant rate of 4% interest rate compounded quarterly, how much would money would have at the end?

Starting with 1000 dollars initial investment, use the calculator to find out a way to save a million dollars at a constant rate of 4% interest compounded quarterly for 45 years by adjusting the monthly contribution. Take a screen shot of your results.

What factors besides a constant monthly contribution can affect the amount of money you can make investing money?

Compound Interest Explained

How does the age a person starts saving at impact the amount they can earn in compound interest?

The Rule of 72

Finish this sentence: The Rule of 72 tells me…

It took Samantha 6 years to double the money in her account. What interest rate was Samantha receiving on her account?

You are trying to pick an account to put your money in. Why is the Rule of 72 useful during this process?

Exit Ticket

What is the 50-20-30 savings rule of thumb?

Choose the option that best completes this sentence: Compound interest is interest earned on …

Elizabeth is investing her money into an account that gives her an interest rate of 4%. How many years will it take her money to double?

Which strategy will help you save the most money?

What is the benefit of automating your savings account contributions?

What does it mean to "pay yourself first"?

If you started with a $1000 investment for 45 years and added $100 at a constant rate of 4% interest rate compounded quarterly, how much would money would have at the end?

Starting with 1000 dollars initial investment, use the calculator to find out a way to save a million dollars at a constant rate of 4% interest compounded quarterly for 45 years by adjusting the monthly contribution. Take a screen shot of your results.

What factors besides a constant monthly contribution can affect the amount of money you can make investing money?

What is the 50-20-30 savings rule of thumb?

Choose the option that best completes this sentence: Compound interest is interest earned on …

Elizabeth is investing her money into an account that gives her an interest rate of 4%. How many years will it take her money to double?