Florida SS.8.FL.3.2
The Standard
- SS.8.FL.3
- Identify and compare the different means and risks of saving and investing money, including the impact of inflation and interest rates.
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.
Florida Next Generation Sunshine State Standards for Social Studies
Teacher's field guide
What This Standard Means
What Students Need to Do
- Students explain why a financial institution pays interest to someone who keeps money in a savings account. They interpret the rate as a yearly percent connected to the account balance.
What Mastery Looks Like
- Given a $500 balance and a 4% annual rate, a student identifies the saver as the person receiving interest and explains why. In a simplified one-year example, the student calculates $20 in interest.
Common Misconceptions
- Students may think the saver pays interest, as with a loan. They may read 4% as $4 or assume it is a monthly rate. They may also think every balance earns the same dollar amount.
How to Assess It
- Exit ticket: Mia leaves $600 in an account paying 3% annual interest. Who pays whom, why is the payment made, and how much interest is earned in one year?
Lesson moves
Ways to Teach It
Use play money to model a bank borrowing $500 from a saver, then have students pay one year of 4% interest.
Ask students to write: Why would a bank pay you for leaving money in a savings account?
Run a card match with savings balances, annual rates, interest amounts, and statements naming who pays whom.
Compare two current savings account ads, then have students identify the annual rate and estimate one year of earnings on $1,000.
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Related Standards
- SS.8.FL.4.1
Explain that people who apply for loans are told what the interest rate on the loan will be. An interest rate is the price of using someone else's money express...
- SS.8.FL.3.4
Explain that, when interest rates increase, people earn more from their savings and their savings grow more quickly.
- 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.4.FL.3.5
Explain that when people deposit money into a bank (or other financial institution), the bank may pay them interest. Banks attract savings by paying interest. P...
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