Lesson 58: Overdraft Protection & Various Savings Options
About This Lesson: In this lesson, students will learn the basic features of different savings plans and how they can be used to help meet future financial goals. Students will explore key banking terms such as deposits, withdrawals, balances, interest, and fees, while also comparing options like savings accounts, certificates of deposit, money market accounts, and savings bonds. The lesson also introduces overdraft protection, explaining how it can help prevent missed payments and protect credit, but may also lead to costly bank fees. By the end of the lesson, students should understand that saving and investing money involves choices, trade-offs, and careful attention to interest rates, access to funds, fees, and financial risk.
Lesson Plan & Other Important Documents
Do Now: Think about a time when you wanted to buy something but did not have enough money right away. What could you do to save for it? In 3–4 sentences, explain one way you could put money aside, where you might keep that money, and why it is important to understand fees or interest before choosing a bank account.
Directions:
Directions: Work your way down this webpage and be sure to watch all of the videos. Start with the video for the Do Now.
Do Now
Directions (Continued)
Directions (Continued): By now you should have your worksheet in front of you; please take a look at it now. Notice that questions 1,2 and 3 can be answered by watching VIDEO 1. Questions 4,5,6 and 7 can be answered by watching VIDEO 2. Questions 8,9 and 10 can be answered by watching VIDEO 3. Questions, 11, 12 and 13 can be answered by using the READING PACKET. Please note that questions from VIDEO 2 and VIDEO 3 can also be answered by completing the reading in the READING PACKET.
VIDEO 1 (Questions 1,2,3)
1.) When does an overdraft occur in a checking account? THIS ARTICLE is referenced in the video and can help you answer this question.
2.) At many banks, the overdraft fee can run upwards of ______________.
3.) What are the PROS and CONS of having overdraft protection in a checking account?
2.) At many banks, the overdraft fee can run upwards of ______________.
3.) What are the PROS and CONS of having overdraft protection in a checking account?
VIDEO 2 (Questions 4,5,6,7)
4.) Give examples of fees in a bank account.
5.) Define deposit
6.) Define withdrawal
7.) Challenge Question: How does the interest rate set by the Federal Reserve influence the yields (yields = interest given by banks) that a bank can offer a customer?
Note: Be sure to watch the (above) video in its entirety, but the READING PACKET can also help you get the answers for questions 5, 6, 7.
5.) Define deposit
6.) Define withdrawal
7.) Challenge Question: How does the interest rate set by the Federal Reserve influence the yields (yields = interest given by banks) that a bank can offer a customer?
Note: Be sure to watch the (above) video in its entirety, but the READING PACKET can also help you get the answers for questions 5, 6, 7.
VIDEO 3 (Questions 8,9,10)
8.) Define Certificates Of Deposit.
Note: If you didn't understand from the video above or reading, watch this: CLICK HERE
9.) Define Money Market Accounts.
Note: If you didn't understand from the video above or reading, watch this: CLICK HERE
10.) Define US Savings Bonds.
Note: If you didn't understand from the video above or reading, watch this: CLICK HERE
Note: If you didn't understand from the video above or reading, watch this: CLICK HERE
9.) Define Money Market Accounts.
Note: If you didn't understand from the video above or reading, watch this: CLICK HERE
10.) Define US Savings Bonds.
Note: If you didn't understand from the video above or reading, watch this: CLICK HERE
READING PACKET
11.) Explain the differences between using a credit card and a debit card.
12.) Compare the characteristics of a Pension Plan versus a 401K plan.
12.) Compare the characteristics of a Pension Plan versus a 401K plan.
HIGHER LEVEL QUESTIONS & EXIT TICKET
Note: Higher level questions are NOT found as definitions in the text. You have to put all of your knowledge together to answer them (what you learned from the video, what you learned from the reading, all of your previous knowledge).
13.) If you had $10,000 dollars to save or invest, what kinds or kind of accounts would you choose for your money? Why?
13.) If you had $10,000 dollars to save or invest, what kinds or kind of accounts would you choose for your money? Why?
Investment |
Interest Earned (As Of Today) |
Is This Rate Guaranteed? |
5.87% |
No, the interest rate can go up or down. These rates are set by the federal reserve. For the last 20 years, almost nobody invested in CD's because interest rates were so low. (We are talking less than 1%) |
|
4.9% |
Yes, when you buy a bond it is a contract. The interest rate is locked in for the term of the bond. |
|
5.3% |
No, the interest rate can go up or down. These rates are set by the federal reserve. For the last 20 years, almost nobody invested in Money Market Accounts because interest rates were so low. (We are talking less than 1%) |
|
0% |
Yep! |
