Saving: lesson plans

1. 1

   How to save your first $1,000

   Get a one-time boost, then automate a payday transfer. $125 a month plus a $150 head start reaches $1,000 in 7 months.

   Students will be able to

   • Get a head start with one-time money.
   • Automate a transfer the day after payday.
   • Divide what's left by your monthly amount.

   45-minute plan

   1. Warm-up (5 min): is this true? "I don't earn enough to save anything, so $1,000 is out of reach."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): Open a savings account at a separate bank or credit union and name it "First $1,000". Schedule a recurring transfer for the day after your next payday, even $25, and list three things you could sell this week.

   Worksheet and answer keyOpen the lessonSavings goal calculator

2. 2

   How big should your emergency fund be?

   Save 3 to 6 months of essential bills, not income, in an insured savings account at a separate bank.

   Students will be able to

   • Size it from essentials, not income.
   • Three to six months is the usual range.
   • A $1,000 starter fund comes first.

   45-minute plan

   1. Warm-up (5 min): is this true? "I need six months of my salary saved before it even counts."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): List your monthly essentials and multiply by three. Then open a savings account at a separate bank and schedule an automatic transfer for the day after your next payday, even if it is only $25.

   Worksheet and answer keyOpen the lessonEmergency fund calculator

3. 3

   How much of your paycheck should you save?

   Aim for 20% of take-home pay, but start with what you can and follow the order: fund, match, debt, retirement.

   Students will be able to

   • Twenty percent of take-home is a common target.
   • Take the full employer match first.
   • Raise your rate with every raise.

   45-minute plan

   1. Warm-up (5 min): is this true? "If I can't save 20%, there's no point saving at all."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): Check your 401(k) contribution and confirm it gets the full employer match. Then schedule one automatic transfer from checking to savings for the day after your next payday, at an amount you won't miss.

   Worksheet and answer keyOpen the lesson50/30/20 budget calculator

4. 4

   What is a high-yield savings account?

   A high-yield savings account is an insured savings account that pays a higher rate, and you compare accounts by APY.

   Students will be able to

   • Compare accounts by APY, not APR.
   • Rates are variable and can drop.
   • Check the insurance before you deposit.

   45-minute plan

   1. Warm-up (5 min): is this true? "Online banks aren't as safe as the bank down the street."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): Look up the APY on your current savings account in your banking app. Then compare it with two insured online banks or credit unions, checking fees and minimums, and write down which account you would open.

   Worksheet and answer keyOpen the lessonSavings goal calculator

5. 5

   What is a sinking fund and how do you set one up?

   A sinking fund is money saved monthly for a known cost, found by dividing the cost by months until it is due.

   Students will be able to

   • Monthly amount equals cost divided by months.
   • Known costs go here, surprises do not.
   • A late start means bigger payments.

   45-minute plan

   1. Warm-up (5 min): is this true? "Big yearly bills always wreck my month. There's no way around it."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): Scroll back through 12 months of bank and card statements and list every bill that did not come monthly. Pick the next one due, divide it by the months left and schedule that transfer to savings.

   Worksheet and answer keyOpen the lessonSavings goal calculator

6. 6

   How to save for a car (and how much you need)

   Save the down payment plus taxes and fees, divide by the months until you buy, and automate it.

   Students will be able to

   • Your goal includes taxes and fees.
   • Divide the gap by the months left.
   • Every dollar down cuts the loan.

   45-minute plan

   1. Warm-up (5 min): is this true? "I just need enough for the monthly payment. Down payments are optional."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): Write down the most you'd pay for your next car, add your state's sales tax and fees, and subtract what you have. Divide by the months until you want to buy, and set up that transfer to a separate savings account.

   Worksheet and answer keyOpen the lessonSavings goal calculator

7. 7

   Where should you keep your cash savings?

   Use insured savings for money you may need soon, and CDs or Treasury bills only for money with a fixed date.

   Students will be able to

   • Pick the account by when you need it.
   • Insured deposits are covered up to a limit.
   • Breaking a locked rate early costs money.

   45-minute plan

   1. Warm-up (5 min): is this true? "My money is safest sitting in my regular checking account."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): Log in to your savings account and find its current rate. Then write down each pot of savings and the date you will need it. Anything without a firm date stays in savings.

   Worksheet and answer keyOpen the lessonSavings goal calculator

8. 8

   How do CDs work, and are they worth it?

   A CD locks a fixed rate for a set term. Use it only for money you won't need before that date.

   Students will be able to

   • A CD trades access for a locked rate.
   • The penalty can be bigger than your interest.
   • Match the term to the date you need it.

   45-minute plan

   1. Warm-up (5 min): is this true? "A CD is a safe place for my emergency fund because it pays more."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): Write down any savings goal with a firm date in the next 6 to 24 months. Then look up the APY and early withdrawal penalty for a CD at your bank and one online bank that matures just before that date.

   Worksheet and answer keyOpen the lessonCompound growth calculator

9. 9

   What is a money market account, and how does it work?

   A money market account is insured savings with check or card access. Compare rate, minimum balance and fees.

   Students will be able to

   • It is a bank deposit, not an investment.
   • The rate is variable and can change anytime.
   • Fees can wipe out the interest.

   45-minute plan

   1. Warm-up (5 min): is this true? "A money market account is an investment, so I could lose money in it."
   2. Read the lesson together (10 min)
   3. Work the example on the worksheet (10 min)
   4. Practice questions (10 min)
   5. Exit task (10 min): Open your savings statement and write down your rate, balance and any monthly fee. Then compare it with one money market account and one high-yield savings account at insured banks, using the APY for your balance.

   Worksheet and answer keyOpen the lessonSavings goal calculator

10. 10

    How do Treasury bills work, and how do you buy them?

    A T-bill is a 4 to 52 week government loan you buy at a discount and get back at full face value.

    Students will be able to

    • You pay less now and get face value later.
    • Terms run from 4 to 52 weeks.
    • Interest skips state and local income tax.

    45-minute plan

    1. Warm-up (5 min): is this true? "Treasury bills are for big investors with lots of money."
    2. Read the lesson together (10 min)
    3. Work the example on the worksheet (10 min)
    4. Practice questions (10 min)
    5. Exit task (10 min): Pick one savings goal with a firm date in the next year. Look up the latest auction result on TreasuryDirect for the term that ends just before that date, and compare its rate, after your state tax, with your savings APY.

    Worksheet and answer keyOpen the lessonSavings goal calculator

11. 11

    How do I bonds work, and are they a good idea?

    I bonds pay a fixed rate plus inflation, lock your money for a year, and cap purchases at $10,000 a year.

    Students will be able to

    • The rate is fixed rate plus inflation.
    • Hold at least 12 months, ideally 5 years.
    • Limit of $10,000 per person each year.

    45-minute plan

    1. Warm-up (5 min): is this true? "I bonds always pay a big rate, so they beat savings every time."
    2. Read the lesson together (10 min)
    3. Work the example on the worksheet (10 min)
    4. Practice questions (10 min)
    5. Exit task (10 min): Look up today's I bond rate on TreasuryDirect and write it next to your savings rate. If you already have at least 3 months of bills in savings, decide how much money you won't need for at least a year.

    Worksheet and answer keyOpen the lessonCompound growth calculator

Free to print, copy and share for non-commercial classroom use. General education, not personalized financial, tax or legal advice. Figures are examples. Check current rates and limits before you act.