Indiana Social Studies GE.6.5

Social StudiesGrades 9–12Money and the Role of Financial Institutions

The Standard

Explain how interest rates act as an incentive for savers and borrowers.

2026 Indiana Academic Standards: K-12 Social Studies

Teacher's field guide

What Students Need to Do: Students compare what savers earn and borrowers pay at different interest rates. They explain why a higher rate can make saving more appealing and borrowing less appealing.
What Mastery Looks Like: Given $100 for one year, a student calculates $2 interest at 2% and $8 at 8%. They choose the higher rate for saving and the lower rate for borrowing, and explain why.
Common Misconceptions: Students may think a high interest rate benefits savers and borrowers alike. Some think borrowers pay back only the amount they borrowed. Others compare interest amounts without keeping the loan or deposit amount and time the same.
How to Assess It: A bank offers 2% or 8% interest for one year. For a $100 deposit and a $100 loan, ask students which rate each person would prefer and how much interest each would earn or pay.

Lesson moves

Give pairs $100 deposit and loan cards plus 2% and 8% rate cards; have them calculate one-year interest.
Ask students to write what happens to a saver and a borrower when a bank raises its interest rate.
Play rate switch: show a 2% or 8% card, then have students choose which rate they want for saving or borrowing.
Print two savings offers and two equal-term, fee-free loan offers; students circle the better rate for a saver and a borrower.

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