Bunny Money
Standard
Standard: 4
- Students will understand that: People usually respond predictably to positive and negative incentives.
- Students will be able to use this knowledge to: Identify incentives that affect people's behavior and explain how incentives affect their own behavior.
Standard: 3
- Students will understand that: People who have sufficient income can choose to save some of it for future uses such as emergencies or later purchases. Savings decisions depend on individual preferences and circumstances. Funds needed for transactions, bill-paying, or purchases, are commonly held in federally insured checking or savings accounts at financial institutions because these accounts offer easy access to their money and low risk. Interest rates, fees, and other account features vary by type of account and between financial institutions, with higher rates resulting in greater compound interest earned by savers.
Concepts
In this lesson, students listen to the story of Ruby and Max, two bunnies that go
shopping and make many spending decisions. Students are introduced to short-term
and long-term savings goals to help them save for goods they want in the future.
After a goal-sorting activity, students choose and illustrate their own savings goals.
Learning Objectives
Student will be able to:
- Define goods, spending, saving, and interest;
- Name two types of savings goals;
- Give examples of short-term and long-term savings goals; and
- Explain why a bank is a good place to save money.
Description
In this lesson, students listen to the story of Ruby and Max, two bunnies that go shopping and make many spending decisions. Students are introduced to short-term and long-term savings goals to help them save for goods they want in the future. After a goal-sorting activity, students choose and illustrate their own savings goals.
We would like to thank the Federal Reserve Bank of St. Louis for allowing us to reprint this lesson. Visit Econ Lowdown TM , the Federal Reserve Bank of St. Louis’ website of award-winning free classroom resources for use by pre-K through college educators who teach economics, personal finance, money, banking and the Federal Reserve.
For the lesson, including a format for Google Classroom and an interactive whiteboard (SMART/Notebook or ActivInspire/flipchart) version please visit: https://www.stlouisfed.org/education/bunny-money.