Saving Standards for Middle School
SS.8.FL.3.1 Explain that banks and other financial institutions loan funds received from depositors to borrowers and that part of the interest received from these loans is used to pay interest to depositors for the use of their money.
SS.8.FL.3.2 Explain that, for the saver, an interest rate is the price a financial institution pays for using a saver’s money and is normally expressed as an annual percentage of the amount saved.
SS.8.FL.3.3 Discuss that interest rates paid on savings and charged on loans, like all prices, are determined in a market.
SS.8.FL.3.4 Explain that, when interest rates increase, people earn more on their savings and their savings grow more quickly.
SS.8.FL.3.5 Identify principal as the initial amount of money upon which interest is paid.
SS.8.FL.3.6 Identify the value of a person’s savings in the future as determined by the amount saved and the interest rate. Explain why the earlier people begin to save, the more savings they will be able to accumulate, all other things equal, as a result of the power of compound interest.
SS.8.FL.3.7 Discuss the different reasons that people save money, including large purchases (such as higher education, autos, and homes), retirement, and unexpected events. Discuss how people’s tastes and preferences influence their choice of how much to save and for what to save.
SS.8.FL.3.8 Explain that, to assure savers that their deposits are safe from bank failures, federal agencies guarantee depositors’ savings in most commercial banks, savings banks, and savings associations up to a set limit.
Saving Standards for High School
SS.912.FL.3.1:Discuss the reasons why some people have a tendency to be impatient and choose immediate spending over saving for the future.
SS.912.FL.3.2:Examine the ideas that inflation reduces the value of money, including savings, that the real interest rate expresses the rate of return on savings, taking into account the effect of inflation and that the real interest rate is calculated as the nominal interest rate minus the rate of inflation.
SS.912.FL.3.3:Compare the difference between the nominal interest rate which tells savers how the dollar value of their savings or investments will grow, and the real interest rate which tells savers how the purchasing power of their savings or investments will grow.
SS.912.FL.3.4:Describe ways that money received (or paid) in the future can be compared to money held today by discounting the future value based on the rate of interest.
SS.912.FL.3.5:Explain ways that government agencies supervise and regulate financial institutions to help protect the safety, soundness, and legal compliance of the nation’s banking and financial system.
SS.912.FL.3.6:Describe government policies that create incentives and disincentives for people to save.
SS.912.FL.3.7:Explain how employer benefit programs create incentives and disincentives to save and how an employee’s decision to save can depend on how the alternatives are presented by the employer.
SS.8.FL.3.1 Explain that banks and other financial institutions loan funds received from depositors to borrowers and that part of the interest received from these loans is used to pay interest to depositors for the use of their money.
SS.8.FL.3.2 Explain that, for the saver, an interest rate is the price a financial institution pays for using a saver’s money and is normally expressed as an annual percentage of the amount saved.
SS.8.FL.3.3 Discuss that interest rates paid on savings and charged on loans, like all prices, are determined in a market.
SS.8.FL.3.4 Explain that, when interest rates increase, people earn more on their savings and their savings grow more quickly.
SS.8.FL.3.5 Identify principal as the initial amount of money upon which interest is paid.
SS.8.FL.3.6 Identify the value of a person’s savings in the future as determined by the amount saved and the interest rate. Explain why the earlier people begin to save, the more savings they will be able to accumulate, all other things equal, as a result of the power of compound interest.
SS.8.FL.3.7 Discuss the different reasons that people save money, including large purchases (such as higher education, autos, and homes), retirement, and unexpected events. Discuss how people’s tastes and preferences influence their choice of how much to save and for what to save.
SS.8.FL.3.8 Explain that, to assure savers that their deposits are safe from bank failures, federal agencies guarantee depositors’ savings in most commercial banks, savings banks, and savings associations up to a set limit.
Saving Standards for High School
SS.912.FL.3.1:Discuss the reasons why some people have a tendency to be impatient and choose immediate spending over saving for the future.
SS.912.FL.3.2:Examine the ideas that inflation reduces the value of money, including savings, that the real interest rate expresses the rate of return on savings, taking into account the effect of inflation and that the real interest rate is calculated as the nominal interest rate minus the rate of inflation.
SS.912.FL.3.3:Compare the difference between the nominal interest rate which tells savers how the dollar value of their savings or investments will grow, and the real interest rate which tells savers how the purchasing power of their savings or investments will grow.
SS.912.FL.3.4:Describe ways that money received (or paid) in the future can be compared to money held today by discounting the future value based on the rate of interest.
SS.912.FL.3.5:Explain ways that government agencies supervise and regulate financial institutions to help protect the safety, soundness, and legal compliance of the nation’s banking and financial system.
SS.912.FL.3.6:Describe government policies that create incentives and disincentives for people to save.
SS.912.FL.3.7:Explain how employer benefit programs create incentives and disincentives to save and how an employee’s decision to save can depend on how the alternatives are presented by the employer.