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Publication
Financial Institutions and Services
Objective
Students will be able to:
- Determine the appropriate financial institution to use for various types of financial services.
- Determine the appropriate financial service for different situations.
- Explain the steps taken to set up and manage a checking account.
Standard
Standard: 4
- Students will understand that: People can choose to invest some of their money in financial assets to achieve long-term financial goals, such as buying a house, funding future education, or securing retirement income. Investors receive a return on their investment in the form of income and/or growth in value of their investment over time. People can more easily achieve their financial goals by investing steadily over many years, reinvesting dividends, and capital gains to compound their returns. Investors have many choices of investments that differ in expected rates of return and risk. Riskier investments tend to earn higher long-run rates of return than lower-risk investments. Investors select investments that are consistent with their risk tolerance, and they diversify across a number of different investment choices to reduce investment risk.
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.
Standard: 2
- Students will understand that: A budget is a plan for allocating a person’s spendable income to necessary and desired goods and services. When there is sufficient money in their budget, people may decide to give money to others, save, or invest to achieve future goals. People can often improve their financial wellbeing by making well-informed spending decisions, which includes critical evaluation of price, quality, product information, and method of payment. Individual spending decisions may be influenced by financial constraints, personal preferences, unique needs, peers, and advertising.
Concepts
![](https://preview2.econedlink.org/wp-content/uploads/2019/06/Financial-Institutions-and-Services-1024x683.jpg 1024w, https://preview2.econedlink.org/wp-content/uploads/2019/06/Financial-Institutions-and-Services-300x200.jpg 300w, https://preview2.econedlink.org/wp-content/uploads/2019/06/Financial-Institutions-and-Services-768x512.jpg 768w, https://preview2.econedlink.org/wp-content/uploads/2019/06/Financial-Institutions-and-Services-100x67.jpg 100w)
Description
This lesson has two parts – one on financial institutions and one on checking accounts. Part I of the lesson provides an overview of several common types of financial institutions and their advantages and disadvantages. Students examine the types of services available from financial institutions. Part II of the lesson stresses the main features and the mechanics of using checking accounts, while also highlighting some more recent payment options.
Resources
In this personal finance lesson, students will look into financial institutions to learn about personal investing.
Book Info
This lesson is part of Financial Fitness for Life 9-12, 3rd Edition and provides the slides and activities with educational technology tools. For full access to the book, shop the teacher guide and student workbook below.
Teacher Guide |
Student Workbook |
Available in eBook and hard copy |
Available in eBook and hard copy |