Why Should You Save & Invest?
Learn about the value of saving, investing, and the Rule of 72.
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Lessons & Activities
31-45 min
Simple and Compound Interest—Why It Is Great To Save (Lesson 6B)
OVERVIEW
In this lesson, students learn formulas for simple and compound interest, as well as the Rule of 72, and realize the benefit of saving in general and the benefit of saving early in particular.
Related Resources
INFOGRAPHICS & COMICS
VIDEO Q&A
0-15 MIN
Getting Real About Interest Rates Video
This video explores the effect of inflation on purchasing power and the distinction between real and nominal interest rates.
MODULES
16-30 MIN
Savvy Savers | It's Your Paycheck Lesson 5
Describe the "rule of 72" when calculating compound interest.
READING Q&A
16-30 MIN
When the Unexpected Happens, Be Ready with an Emergency Fund
Learn how to start building an emergency fund and how much to save, in this Page One Economics article.
LESSONS & ACTIVITIES
31-45 MIN
Savvy Savers
Calculate compound interest to identify the benefits of saving in interest-bearing accounts.
LESSONS & ACTIVITIES
46-60 MIN
Postsecondary Education Expenses
Analyze spending habits to help save for education expenses.
More in This Series
CURRICULUM UNITS
1 HOUR+
Making Personal Finance Decisions Curriculum
Teach valuable personal finance lessons grounded in economic theory.
LESSONS & ACTIVITIES
31-45 MIN
The Wealth Game—Factors for Success (Lesson 1A)
After playing a game simulating wealth creation, students reflect on determinants of wealth: natural abilities, effort, motivation, and luck.
LESSONS & ACTIVITIES
31-45 MIN
Making Choices and Identifying Costs (Lesson 1B)
Introduce the PACED decisionmaking model.
LESSONS & ACTIVITIES
31-45 MIN
The Inventory Game—Net Worth and Cash Flow (Lesson 2A)
Learn about net worth, cash flow, and the relationship between them.
LESSONS & ACTIVITIES
31-45 MIN
Meeting Financial Goals—Rate of Return (Lesson 2B)
Show the two ways that investments can earn a return.
LESSONS & ACTIVITIES
31-45 MIN
Investing in Yourself (Lesson 3A)
Demonstrate the importance of human capital.
LESSONS & ACTIVITIES
31-45 MIN
Entrepreneurship—Working for Yourself (Lesson 3B)
Learn about common traits of entrepreneurs.
LESSONS & ACTIVITIES
31-45 MIN
What Are Taxes For? (Lesson 4A)
Explain why the government provides some goods and services.
LESSONS & ACTIVITIES
31-45 MIN
Understanding Taxes (Lesson 4B)
Learn about factors that make various taxes different.
LESSONS & ACTIVITIES
31-45 MIN
Making a Budget—It Is All Spending! (Lesson 5A)
Discover that all elements of a budget are essentially spending on goods and services.
